South Africa’s Comparative Advantage: EU and SADC

South Africa’s Comparative Advantage: EU and SADC SOUTH AFRICAS POSITION IN WORLD TRADE: A COMPARATIVE STUDY OF SOUTH AFRICAS COMPARATIVE ADVANTAGE WITHIN THE EU AND SADC INTRODUCTION The South African economy has undergone a gradual process of trade reform in the last three decades, the ultimate aim being to improve resource allocation by shifting policy towards a more competitive, export-oriented focus, and more specifically to diversify exports into non-gold items (PETERSSON, 2005). Over the last two decades the world has seen the creation of many preferential trade areas both within and across continents. Today South Africa has signed trade agreements with many countries including China, India, USA (through AGOA) and notably free trade agreements (FTAs) with the South African Development Community (SADC) and the Trade, Development and Co-operation Agreement (TDCA) with the EU. The main goal of this study is to analyze and draw a comparison between South Africas comparative advantage within the European Union and within the SADC FTAs and investigate the effects of these trade agreements on trade flows among the participating/ economically allied countries. This study will also analyze the credibility and relationship between South Africas policy of free trade and its own economic performance. Background to the Study South Africa signed the Trade, Development and Co-operation Agreement (TDCA) with the European Union (EU) in 1999 and with the SADC in (2000) which were intended to remove most of the trade barriers over the next decade. The European Union has been South Africas biggest trading partner both before and after Apartheid. From 1999, the European Union was a destination of more than 40% of South Africas exports while at the same time accounting for over 70% of South Africas Foreign Direct Investment (FDI). The TDCA was mainly intended to create a free-trade area between South Africa and the EU, in order to ensure that South Africa enjoyed free access to the EU market and vice versa. The Agreement provided for liberalization of 95% of the imports by the EU from South Africa within the period of ten years, and 86% of imports by South Africa from the European Union in twelve years. However vulnerable sectors both within the EU and South Africa are allowed to be protected from competition. For example, the EU is allowed to continue protecting its agricultural products against similar imports from South Africa and the agreement permits South Africa to shelter some industrial products. Thus some motor vehicle p roducts, petroleum and petroleum products, beef, sugar, chocolate, Ice cream, dairy, chemical products, certain textile and clothing products etc, are protected against similar imports from the European Union products. In 1994 Economic sanctions against South Africa had rendered the economy inefficient due to years of isolation from the global economy. The post-apartheid democratic government inherited many social and economic problems among which included: high unemployment especially amongst the black population most of whom lacked education, differing levels of poverty and income disparities and lack of competitiveness in the industrial sector. All these issues required urgent attention and an almost complete restructuring of the economy, the way it was run and the adoption of policies that would help the nation emerge from decades of apartheid and international isolation. Being a complex economy that exhibited features of developing and developed nations, South Africa met strong opposition notably from some EU member countries. Later South Africa was denied trade concessions ratified in the Lomà ©Ã‚  [i]  Convention that were intended for under developed countries. , However South Africa itself did not see relying on aid as an important strategy for its long term drive towards development (Perry, 2000). As a result South Africas government embarked on improving its competitiveness in the world economy through promoting trade by negotiating trade treaties with several countries as a tool towards sustainable growth, eradication of poverty and income inequality. South Africa and the European Union finally signed a Free Tra de Area agreement in 1999 after a long period of negotiations that were characterized by all sides trying to negotiate the best deal possible for themselves. In the end, both managed to secure barriers in areas where they feared fiercest competition. For example France and Portugal already had concerns about South Africas wine and agricultural exports that were in direct competition in the EU market even before the TDCA was in effect and were reluctant to open their markets any further. Likewise, South Africa wanted to protect some of its infant industry especially in manufacturing. Perry (2000) notes that south Africa will had to fight for each favorable term of trade in which it has a strong comparative advantage as some countries within the European Union would have preferred to shield their individual sectors from any threatening outside competitive forces. They are only likely to engage in free trade with nations from which they expect more benefits rather than helping developi ng countries integrate into the world economy. Although there is no evidence yet to support Perrys argument, such should not be swept aside without consideration. Some of the main objectives of the TDCA include supporting South Africa in its economic and social transition, as well as promoting the countrys economic integration in the world economy (ROBLES, 2008). This being the case, the EUs decision to impose barriers on South Africas wine and Agricultural exports can be seen as a sign of double standards. The South African government could have expected to receive more concessions in such sectors. . Asante 1997 noted that the European Union is even more likely to benefit than South Africa because of adjustment costs originating from a general reduction of tariffs and from protectionism in Agriculture by the EU. He further stresses that South Africa tariffs are about five to six times higher than those of the EU. By removing tariffs on imports, South Africa looses five to six times worth of revenue than the EU. Losing so much tax revenue and still be able to run the economy and compete effectively, will require South Africa to have a significant comparative advantage over the EU in the production of various commodities so that the losses in revenue are covered by gains from exports. This paper is therefore directed at identifying sectors in which South Africa experiences a higher comparative advantage over any other member of the European Union. We would therefore expect these sectors to have free access to the European markets without import duties being levied on them. Literally, attaining such trade terms would mean that South Africa has strong bargaining power in the EU because it can manipulate policies that favor its competitive exports in the free trade zone. It is argued that when countries form a Free Trade Area by removing protectionist barriers (e.g. tariffs on imports, import quotas, and subsidies on local industries), they strengthen greater trading relations among themselves. This sometimes results in increased production of goods and services as firms no longer target domestic demand but also reach the foreign market. Access to the EU and SADC markets in this case will always be determined by how diversified S. Africas and its trading partners economies are, because it makes no point for countries to engage in trade of products that they can effectively produce for themselves. Diversification ensures that a country is more likely to produce what other countries do not. If member countries trade in similar products, then there should be a higher degree of intra-industry trade for the exchange of goods and services to be successful. This calls for more research and the adoption of efficient technologies that make it possible for cou ntries to successfully differentiate those products that are more or less identical. Product differentiation means that countries can produce an identical product but with noticeable differences in terms of branding, durability and value added. One of the major reasons behind forming Free Trade Area with SADC and the EU is to enable South Africa to successfully integrate into the world economy (ROBLES, 2008). For South Africas major trading partners in the EU for example, forming a free trade area involves removing barriers to trade and making few adjustments in order to allow free movement of goods and services because they already possess the prerequisites for surviving trade competition under an open economy. However, for a developing economy like South Africa, successful integration into the EU and World market involves a very wide range of policies. For example increasing production and diversification, adopting new production technologies in order to increase value added to intermediate inputs, facilitating local agricultural production to successfully compete with subsidized European Agriculture, fighting crime and boosting local demand in order to increase investor confidence, and developing the local transport syst em. Implementation of all these policies is a gradual process that requires not only money and time but also a population that is equally skilled and well off enough to participate in production and again absorb the increased proceeds from higher production and trade. According to Mthembu (2008), countries in Sub-Saharan Africa depend on taxes on trade to generate between a quarter and a third of their national revenue. By Forming Free Trade Areas South Africa hopes to increase its share of world exports by importing low cost technology and transforming it into goods and services that can be exported at a higher value and price and through producing at a higher volume and enjoying higher economies of scale, thereby gaining more foreign exchange and employment that will accelerate the growth of the economy. However this comes at a cost of lost tax revenues. Although it is true that when a country trades more, it can increase its share of world exports and demand and gain more power on the final world prices and supply, this is not always the case. Opening up to trade does not automatically guarantee economic success (Krugman, 1996, Rodrik. 2005, Rodrik, 2008). Thirlwall (2000) points out that trade between developing and developed countries has oft en resulted into trade diversion rather than creation. Rodrik (2005), amongst others, has suggested that countries should only open up to free trade when they have a very strong local industry that can compete on the world market. It is only when nations have a strong economic base that they can start benefiting from international trade. Conversely, many other studies have concluded that international trade has been a vital force behind the economic breakthrough of different countries (Hachicha 2003, Dhawan and Biswal 1999, Ahmed et al. 2007, Tang 2010) by not only increasing local production but also by provoking growth between regions. In South Africas case, we need to examine the relationship between its external trade and growth by analyzing the causal relationship between international trade and economic performance. If it is found that it is growth that causes exports, then the South African policy should be redirected altogether from focusing on international trade to other strategies for increasing domestic economic growth Conclusion At this stage, the most important issue for South Africa is not whether to trade or not but rather it is about how to trade and with which products. The over all gains from trade could be huge if the trade pattern with the EU and SADC provides products in which South Africa has a strong competitive advantage and free access to the respective markets. With a favorable trade environment, South Africa would with no doubt achieve sustainable growth and integration into the world economy. This study therefore will examine whether the two free trade agreements cited have had either positive or negative impact on the trading patterns for South Africa by studying the growth characteristics of trade flows between South Africa and each individual free trade area shortly before and after their inception. If we find that South Africas exports have been decreasing while imports continue to grow, then South Africa should push for more favorable trade conditions. These conditions would be slightly different if the imports are mainly composed of capital goods. Statement of the problem Trade with the European Union provides South Africa with diverse trading opportunities by allowing it free access to a very wide market composed of 25 different economies. On the other hand, given the fact that South Africa is a developing economy, gains from trade are limited by lack of competitive advantage in manufacturing, transport costs and the European Unions protection of Agriculture and intellectual property rights. From another perspective however, South Africa is in a better position to trade with SADC than it is with the European Union. This is because South Africas economy is more advanced than most SADC countries in terms of technology, capital, financial institutions and skilled labor, which ought to give South Africa more competitive advantage. So, following the classical theory of trade, should South Africa work on increasing its trade with SADC rather than with the EU because it is more likely to always import more than it exports to the European Union but export more than it imports from the SADC? 1.4. Objectives of the study To understand and determine South Africas comparative advantage in the European Union and SADC. To determine whether FTAs have indeed created trade for South Africa or led to trade diversion. To analyze the validity of South Africas liberalization of trade as the Major drive towards sustainable economic growth by analyzing the causal relationship between exports and GDP. 1.5. Research hypotheses South Africas comparative advantage in the EU is limited to Mining and Agriculture. South Africa enjoys more comparative advantage in the SADC than in the EU Exports cause economic growth for South Africa. There has been more trade creation between South Africas trade with the EU than with SADC. Research methodology This chapter presents the master plan of the study entailing procedures that will be followed so as to obtain the goals of the research. Study population, Sample size and source of data The study will be conducted on a population of two Free Trade Areas (FTAs) namely Southern Africa Development and Cooperation (SADC) and the European Union. In order to determine the comparative advantage of South Africa in the above mentioned FTAs, we shall consider a sample size of fifteen countries from the EU countries that trade with South Africa more than the others. The data from the other remaining countries will be used in calculations of aggregates where necessary. The EU has 27 member countries and representing and analyzing trade data for each member would be very tiresome and time consuming. All of SADC countries on the other hand will be included in the study. Data collection methods and Analysis The study will involve both qualitative and quantitative methods of data collection. Documents will be reviewed in order to gather views by different researchers on a given topic and then analyze their views from our perspective. We shall also gather trade data specifically from web-based databases (for example United Nations and SADCs international trade databases) of all countries involved in this study. The obtained data will then be arranged in related patterns and logical order that would allow for regression analysis and hypothesis testing. According to Linda (2008) Data processing involves summarizing, aggregation, validation, tabulation and analysis of data in order to extract useful information. The obtained data will be processed and analyzed using Microsoft Excel and SPSS 18 data processing software packages. Objectives, Indicators, Data source, Data collection techniques and methods of data analysis (summary) Objective Indicator Data Sources Collection technique Method of analysis To understand and determine South Africas comparative advantage in the European Union and SADC. The share of South Africas exports in the trade area as opposed to the share of exports of other partners within the reference area. W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) Balassa index of comparative advantage To determine whether FTAs have indeed created trade for South Africa or led to trade diversion Changes in Trade flows and trade volumes between South Africa and the reference area since 1994 to 2009 W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) The Gravity model To analyze the validity of South Africas trade policy by analyzing the causal relationship between exports and GDP Relationship between changes in exports and changes in GDP W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) Granger causality test Balassa index of revealed comparative advantage (RCA) In order to determine the comparative advantage of South Africa in the EU and SADC we shall use the comparative export performance index commonly known as balassa index. The Revealed comparative advantage (RCA) index is used to determine whether a countrys trade flows have been increasing or decreasing within a specified period of time. The index can also be used to identify products that a country is producing more effectively than the other trading partners. More still, the index identifies industries in which a country is performing poorly. This can be helpful especially when a country wants to make policies that would promote the competitiveness of those industries. Therefore, the RCA index provides very important information about a countrys general trade with the rest of the world. The index of revealed comparative advantage is stated as shown below: xij: exports of product j from country i Xi: total exports from country i xaj total exports of product j from the reference area (e.g. the world) Xa: total exports from reference area The values of the index range zero to Infinity. If the index takes on a value that is less than one implies that the country has a revealed comparative disadvantage in the product. Similarly if the index takes on a value that exceeds one, the country is said to have a revealed comparative advantage in that product. It is possible for more than one country to have comparative in the same product. In this case, a country with a higher value of the index has the strongest advantage because it can produce the product in question more effectively than the other countries. Causality test The variable of investment will be added to the equation of the growth model because of its significance in enhancing economic growth. The function of the model will be expressed as GDP = f(X,Inv) where GDP represents economic growth, X and Inv represent export and investment respectively. GDP=bo + b1X + b2Inv + E According to Studenmunds (1987) the granger causality test should not be applied to non stationary data because sometimes it may produce misleading results. Therefore before testing for causal relationship between exports and Growth, we shall test for stationarity of the underlying data series by testing for the unit root by applying the ADF test. The ADF test determines whether or not the variables follow a stationary trend. If the time series is non stationary, then we shall carry out a cointegration test to determine whether there is a long term relationship between the variables. The gravity model In order to determine whether FTAs have created or diverted trade, two models are usually applied; the Computable General Equilibrium (CGE) and the Gravity model of bilateral trade. The CGE is suitable for the analysis of trade among countries before the removal of trade barriers. The Gravity model on the other hand is used to analyze trade after the removal of trade barriers among countries (Cenart 2003) The gravity model originated from Newtons law of Universal Gravitation 1687 which states that the ability of one object to attract other particles is positively related to its mass and the mass of the other objects and negatively related with the distance between them. More than 270 years later, in 1962 Jan Tinbergen suggested the application of the same model to the analysis of trade flows among countries by stating that bilateral trade is positively related to GDP and negatively related to distance. The model takes the form below: Fij = ÃŽÂ ²0 MiMj/Dij Where i,j = trading partners F = Trade flows M = Economic Mass (measured in GDP and population) of a country ÃŽÂ ²0 = Constant Rewriting the above formula in a linear equation we introduce logs and the error term in order to allow for the estimation using OLS. Fij = ÃŽÂ ²0 + ÃŽÂ ²1(Mi + Mj) + ÃŽÂ ²2(Pi + Pj) ÃŽÂ ²3Dij + E LogFij = ÃŽÂ ²0 + ÃŽÂ ²1(LogMiMj) + ÃŽÂ ²2(LogPiPj) ÃŽÂ ²3LogDij + E Where D represents the distance between South African Port to the trading partners port of entry; P represents population of a given country. By introducing dummies for FTAs, the model can capture whether the trade area enhances or restricts bilateral tradeà ¢Ã¢â€š ¬Ã‚ ¦.. We shall analyze the change in the importance of the coefficients after every two years since 1997 up to 2009. The subscript j will be used to represent South Africas data while subscript i will represent data for other trading partners. Trade creation and trade diversion (specification of the gravity model) Different studies have used the gravity model to explain creation and diversion of trade by Free Trade Areas (citation) Scope of the study The study will be focused on South Africas trade with the European Union and SADC countries before and after their formation; that is between the periods 1995 to 2009 Significance of the study The establishment of those sectors in which South Africa has a strong advantage will help stakeholders to motivate further liberalization where they have been denied especially in the European Union and also design policies to improve efficiency in the production of those commodities in which South Africa is currently doing poorly but still has the potential to improve. Further more, the establishment of the relationship between free trade and South Africas economic performance will help to add an insight into South Africas trade policy. The findings of the study can be based upon to design policies that can do better to achieve a good economic performance. The study is also expected to provide useful inputs to researchers and others who have a keen interest in South Africas trade with the rest of the world. Organization of the study The research work will consist of five chapters and they will be arranged as follows: Chapter one will consist of the introduction, background to the study, statement of the problem, objectives of the study, the research hypotheses, the significance of the study, scope of the study and finally the organization of the study. The second chapter will comprise of literature review of various studies by other researchers on this subject. The third Chapter will explore methodological aspects of how data was obtained and analyzed. The fourth chapter will present research findings, provide data analysis and interpretation. The fifth chapter will give summary of the findings, a conclusion and recommendations as well as suggestions for further research in relation to the topic.

Succubus Heat CHAPTER 8

Grace called me that night while I was on my way to talk to Isabelle. â€Å"Hello, Georgina. This is Grace.† I waited patiently for Mei's complementary greeting. When it didn't come, I asked in surprise, â€Å"It's just you? Not Mei?† Grace's voice, while as flat as usual, held the tiniest puzzled note in it. â€Å"Why would Mei be here?† It apparently hadn't occurred to her that I had never received a call or a visit from either of them alone. They always functioned as a unit, kind of giving the impression that the fabric of the universe might rip open if they were ever apart. This was as weird as them nearly accepting coffee the other day. â€Å"Never mind. What's up?† â€Å"Jerome wanted me to tell you that he is†¦pleased.† â€Å"Over what?† â€Å"Over you successfully embarrassing Cedric.† â€Å"But I didn't-† I bit my lip, suddenly wondering if I should be so quick to deny my involvement. Jerome hadn't been happy with me recently. While the stupid spectacle at Queen Elizabeth Park had put me on Cedric's shit list, it might very well take me off Jerome's and hasten my permanent return to Seattle. I stayed silent. â€Å"He's glad you took his talk to heart,† Grace continued. â€Å"Although, he does wish to remind you that you being sent to Cedric is supposed to be a gesture of good will. So try not to be too efficient. Jerome encourages you to keep up with these small jabs but to remember that you do ultimately want this group undone.† I sighed. â€Å"Noted.† Grace disconnected. Great. This was all I needed. Jerome thought I was guilty too-of trying to score extra credit with him. Cedric had told me I could find Isabelle at a jazz club a few miles from my hotel. It was over on a street lined with clubs and bars, and the excitement and energy in the air as I walked toward Isabelle's hangout was palpable. It was Saturday night, after all, and the streets teemed with humans eager and excited for life and love. I couldn't see their souls or energy the way an imp like Hugh could, but I didn't need to. It was apparent in the way they moved and talked and eyed each other for potential hook-ups. Even after my recent tryst, being in this electric atmosphere made me itch for another conquest. I'd have to cruise these clubs once I'd concluded business with Isabelle. The jazz club was small and dark, exactly the way you expected such places to be. All the tables were filled, and lots of people stood by the bar or along the wall. I didn't have any trouble finding Isabelle, though. The signature of a greater immortal filled up a place like this. Hers made me think of sunlight shining through crystals, fracturing into sparkles of color. She sat alone at a corner table. Most obviously single women in there were being hit on-in fact, I got a number of appraising looks as I walked through-but no one other than the wait staff seemed to notice Isabelle. It reminded me of how no one ever noticed Jerome's resemblance to John Cusack. Isabelle wore a long blue dress with spaghetti straps, surprisingly risqu? ¦ for an angel. Her hair was sunny blond and worn loose to her lower back-not unlike a golden cloak, I thought wryly. She sensed me, of course, and didn't seem surprised at all when I sat down across from her. With a smile, she glanced up and crooked a finger toward the nearest waiter. He hurried over and took my gimlet order. Once he was gone, Isabelle turned her attention on me. â€Å"So. Jerome's succubus.† Cedric had called me the same thing when we first met. I kind of resented my identity being based on my association with-or rather, possession by-someone else. â€Å"Yeah,† I said. She watched me pleasantly, neither cold nor friendly. With angels, you never knew which extreme you might get. Mostly, she looked curious, so I figured I could get right down to business. â€Å"So I-â€Å" â€Å"Shh.† â€Å"Wh-â€Å" She held up her hand, dark eyes focusing on something beyond me. The band was in the middle of a song, and the trumpet player had just put the instrument to his lips. A long, high note came out, kicking off what turned into a mournful solo. When he finished a minute or so later, I turned back to Isabelle and saw the waiter had brought my gimlet. The angel's face was alight with wonder-and wistfulness. â€Å"Did you hear that?† she asked me. â€Å"Those notes weren't complicated, yet he managed to put so much into them. His heart, his emotions, his soul. A world of sorrow, exquisite agony†¦all in those few notes.† She took a sip of her wine. â€Å"You can't do that. Not even I can do that-not the way he did.† Her words surprised me, but I knew exactly what she meant. Part of the reason I was always a little in awe of Seth's books was because he, as a mortal, had a talent that an immortal like me never could possess. â€Å"Only humans have the gift of creation,† I murmured. Her eyebrows rose slightly, and she smiled. â€Å"Yes, exactly. So tell me, what can I do for you, Jerome's succubus?† I felt a little weird interrogating her now. There was something a little sad and vulnerable about her that made her appealing. Nonetheless, I pushed forward. Angels and demons came from the same stock. Both were good at making you believe what they wanted. â€Å"You†¦you know about those so-called Satanists, right? The Army of Darkness?† Isabelle's smile twitched. â€Å"Great movie, silly cult. Did you have anything to do with their display today? I really liked the goat mask.† I shook my head. â€Å"Actually, I was wondering if you had anything to do with it.† â€Å"Me?† She laughed. â€Å"I only wish I could think up things that good-but there we are again: humans and creation. Why do you ask?† â€Å"Because they say they're being directed by an angel.† I gave her an abridged version of what the group had told me. â€Å"And you assume they literally meant an angel?† â€Å"I'm trying not to assume anything. But I think someone or something is directing them, and your side has as good a reason as any to stir up trouble for Cedric and make the authorities on all sides come down on him.† â€Å"And your side has just as good a reason. Demons try to oust each other all the time.† I tapped my nails along my glass's edge and eyed her warily. â€Å"And you haven't actually answered my question,† I pointed out. â€Å"You haven't directly denied being involved.† Angels couldn't technically lie, but oh, they were masters at not always telling the truth. Isabelle finished off her wine and smiled at me again. â€Å"Oh, you are delightful. This is just like being on a TV cop show. No wonder Carter likes you so much.† I sighed in exasperation, realizing I was going to get nowhere. Fucking angels. Her grin dimmed a little, but she was still clearly amused. â€Å"Look, Georgina,† she said. She knew my name; no real surprise. â€Å"I like you. You're clever and endearing, but here's how it is: I don't want to see Cedric leave Vancouver. I like him. And anyway, that saying about keeping your enemies close is true. I know him, I understand him. And when you're playing a game like ours, the better you know the pieces on the board, the better you'll do. I don't want to have to live with an archdemon I don't know, one who's a lot more unpleasant than he is.† A new glass of wine had been delivered, and she paused to take a sip. â€Å"And that's the truth.† I didn't know what to say. I wanted to believe her but had no idea if I could. I simply sighed again. â€Å"What are you thinking?† she asked. â€Å"I wish I could believe you when you say you aren't involved. Even with the whole not-lying thing, I don't know that I can. I don't think that I can trust anyone.† â€Å"That,† she said firmly, â€Å"is absolutely something I agree with: you can't trust anyone. On any side. Everyone's got their own agenda, and there's something in the air right now-it's like a building storm, to use a clich? ¦. Be careful.† Her face looked momentarily troubled, and then she relaxed again as her attention returned to the stage. â€Å"Ah, the soloist is back.† I slid my empty glass to the center of the table. I started to take out some cash too, but she waved it away. â€Å"Thanks for talking,† I told her, rising from my chair. Suddenly, I hesitated. â€Å"You mentioned Carter. I don't suppose†¦I don't suppose you know where he's been lately?† I'd never thought I would utter those words. Carter had tormented me for years with his unsolicited, cryptic advice. He'd particularly loved to comment about Seth and me, as though he had some special interest in our relationship. Since it had ended, I'd hardly seen Carter at all. He used to come hang out with my friends and me but had only surfaced a couple of times in the last few months. Isabelle smiled. â€Å"He's closer than you think.† â€Å"Typical angel answer,† I groaned. I turned around to leave and then yelped. Carter stood by the club's entrance. Abandoning Isabelle, I hurried across the crowded room. Oblivious to the dress code, Carter wore his typical grungy clothing, ratty jeans and a plain gray T-shirt. A flannel shirt was tied around his waist, and his blond hair could have handled a good washing and brushing. He smiled expectantly at my approach and stepped outside to the crowded street. I followed. â€Å"What are you doing here?† I asked, taking out my cigarettes. I grabbed one for myself and then offered him the pack. He took one too. â€Å"What are you doing here?† he returned pleasantly. â€Å"You know what I'm doing here. Everyone knows what I'm doing here.† I fumbled in my purse for my new lighter and found a matchbook instead. I pulled it out. Mark's Mad Martini Bar. I'd forgotten them. â€Å"What's wrong?† asked Carter, noting my frown. I shook my head. â€Å"Nothing.† I traded the matches for my lighter, and we lit up. â€Å"You were lurking with your signature hidden,† I continued. â€Å"Why?† â€Å"Element of surprise,† he said. â€Å"It was worth it to see your face.† We walked past the club lines and drunken groups, no clear destination in mind-at least none that I knew of. â€Å"You haven't been around in a while,† I accused. â€Å"Why, Daughter of Lilith, have you missed me?† â€Å"No! But I was starting to feel like you were only interested in me while I was dating Seth.† â€Å"Of course not.† There was a long, overly nonchalant pause. â€Å"So†¦have you talked to him lately?† I rolled my eyes. â€Å"You are only interested in Seth! You're going to have to let it go, Carter. Seth and I are finished. Why can't you obsess on me and my new boyfriend instead?† â€Å"Because you can do better.† â€Å"Everyone keeps saying that. But I'm a succubus. How much better can I do?† â€Å"The fact that people keep telling you that should be answer enough.† â€Å"Seth broke up with me ,† I said through gritted teeth. â€Å"He doesn't want me anymore, end of story.† â€Å"Oh, come now. Do you really believe that?† â€Å"Seeing as I was there at the break-up? Yes.† Carter tsked. â€Å"Georgina, Georgina. You're letting your anger and other emotions cloud your reason, which is unfortunate since you're a lot smarter than people give you credit for. Go back and think. Why did Seth break up with you?† I stared off at the far side of the street, refusing to look at him. â€Å"Because he thought if we stayed together, we'd both get hurt. That it would be better if we split, no matter how painful at the time.† â€Å"And you think that makes him a bad person?† â€Å"Yes.† I turned back toward Carter. â€Å"Because I didn't agree. I was willing to take the risk. He gave up.† â€Å"Sometimes it takes more courage to know when to retreat than to keep fighting.† â€Å"I don't think it could have taken that much courage. He ended up with Maddie pretty quickly.† No matter how hard I tried, I couldn't keep the bitterness from my voice. â€Å"That takes courage too, forcing yourself to start over with someone new, to keep moving on with your life.† â€Å"Seems more like a rebound to me.† Carter took a long drag on his cigarette. â€Å"Seth didn't leave and go to Maddie because he stopped loving you. If there were no complications in the world, you would be the one he chose. You are his ideal, his first choice.† â€Å"That's not flattering to Maddie.† â€Å"It doesn't make her less. It just means he loves her differently. And when you decide you have to move on, that's how it is. Just because things don't work out, it doesn't mean there aren't other people you can't love. Love is too big a thing for you to go without it in life.† â€Å"Oh yes,† I said. â€Å"I have so missed these cryptic conversations.† Carter crooked me a grin. â€Å"I'm glad to see you're back to your old self.† â€Å"I've missed the sarcasm too.† â€Å"No, I'm serious. You weren't a lot of fun these last few months. You were kind of†¦Ã¢â‚¬  â€Å"†¦bitchy?† He shrugged. â€Å"I don't know. You were angry and depressed and frustrated. You stopped caring about the people around you. You weren't†¦well, you.† â€Å"You don't know me or what I am.† â€Å"I know you better than you think. I know you're still hurting and think the universe has given up on you. It hasn't. I also know that as far as all this demon business is concerned, your curiosity is going to tangle you up further in something you shouldn't be involved with in the first place. Jerome,† he declared, â€Å"is a fool.† â€Å"Do you know what's going on?† I asked eagerly, coming to a stop. â€Å"Who's leading that cult? Who's supposedly running this huge game that's going on that I can't see?† â€Å"No,† said Carter, expression dark. â€Å"I don't know any of that. But if I were you, I'd get back to Seattle soon. Stay close to Jerome.† â€Å"He hates me right now.† â€Å"No, he doesn't. Stay close to him. He'll protect you. If he can't†¦well, I will. If I can.† There was nothing romantic in his offer of protection. It wasn't spoken with chivalrous fierceness. His manner was uneasy, like he was dealing with a last resort. I also couldn't help but replay his last words: if I can . Angels-or demons-didn't use the word â€Å"if† very often. â€Å"What do you mean if-â€Å" â€Å"Go back home, Daughter of Lilith.† He tipped his head back to stare at the night sky, blew smoke into the air, and then looked down at me with his silvery gray eyes. â€Å"We'll talk soon.† He dropped the cigarette to the sidewalk and vanished. I glanced around, worried someone had seen us, but we'd walked far from the partiers. I stamped out the cigarette, turned, and headed back in the direction of all the nightlife to go find some guys I'd noticed checking me out. A night with drunken men might still leave me feeling hollow, but at least their motives were easier to understand than angels'.

Management Philosophy

â€Å"Management aims to accomplish group purposes with the least expenditure of material or human resources† (Koontz, 1969, p. 415). The term management philosophy seems almost oxymoronic in that they appear to work toward different results. The goal of management should be to improve the organization. (Kirkeby, 2000) suggest that the objective of management has always been the goal of making the group, institution, organization, or nation, into the strongest organism possible. Triumph, subjugation, gaining strength, and survival are all priorities of management. These along with personal prestige, acquiring real estate (enlarging your territory), making lots of money, and transferring thought to action paint the perfect picture of today’s successful manager. (Kirkeby, 2000) believes that philosophy is just the opposite, suggesting that philosophy deals with power but in a different way, its focus is the power of thought instead of position or bottom line performance. The pursuit of philosophy is not one of financial gain for the individual but one of freedom and liberation of thought. Similar article: Scientific Management Theory in Health Care Philosophy lends itself to a relationship with reality as opposed to management where goals exist to create, shape, and determine the best reality conducive to productivity. Philosophy does not insist on leading the individual to think, but rather presenting ideas and thought for evaluation and consideration of the individual, allowing them to pick, choose, and add to the original thought, and even completely dismiss. Dr. W. Edwards Deming – The system of profound knowledge/System Theory Dr.  Deming was a known for his work in the many fields to include management philosophy. The management philosophy of Dr. Deming is centered on the system of profound knowledge. The System of Profound Knowledge was presented in his book titled â€Å"The New Economics†, (Deming, 1994). The system of profound knowledge provides a map of theory with assist us in understanding the organizations that we work in. It is comprised of four major tenets (Deming); â€Å"Appreciation of a System, Theory of Knowledge, Theory of Variation, and Psychology†. Deming goes on to suggest that â€Å"many themes show up in various parts of the System of Profound Knowledge, particularly those relating to organizational purpose, driving out fear in an organization, and understanding the implications of variation† (Deming, p. 11). Systems theory lays out management methods that can create systems out of organizations, and the advantages of these systems. There are many road blocks to the establishing an organizational system, (Deming, 1994) describes some of the road blocks as; focus on the benefit of performance from one aspect of the system. This feeds self interest and promotion. Internal competition; this leads to business units with holding information and not willing to share resources and the use of the performance appraisal; this creates a mind-set geared toward individual performance. (Deming) breaks down the four tenets that make up the system of profound knowledge; the Theory of Knowledge or epistemology as it is often referred provides a description for a system that focuses on learning and the use of theory. The Theory of Variation; its purpose is to assist managers in understanding what variation is and how this understanding will improve process within the system. Deming describes management as the ability to predict and for this reason an in-depth understanding of variation is all the more critical. Psychology; is seen and utilized in all aspects of Deming’s system. Deming’s suggest that manages must be able to identify psychological influences on and in their respective units if they are to become a true system. Scientific Management  There are examples all a round us concerning the benefit of Scientific Management; planes, trains, and automobiles, processes, and work environments that we engage each day. All of these examples and many others function and are produced at a higher rate of efficiently due to Scientific Management. Frederick W. Taylor born on March 20, 1865 considered â€Å"the father of Scientific Management†. He strongly campaigned for less human interaction and more machine driven production, even going on to say â€Å"In the past the man has been first; in the future the system must be first† (Worthy, 1959, p. 3). One of the driving factors for Taylor’s scientific management was that he believed the industrial management of his day was run by individuals that had no professional amplitude Deming suggested that â€Å"management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce† (Weisbord, 1987, p. 9). â€Å"Taylorism† became the first big management fad. Taylor's scientific management consisted of four principles (Weisbord, 1987): 1. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. 2. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. 3. Provide detailed instruction and supervision of each worker in the performance of that worker's discrete task. 4. Divide work equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. Taylor was the first to present a systematic study of interactions among job requirements such as tools, methods, and human skill. To fit people to jobs both psychologically and physically, and to let data and facts do the talking rather than prejudice, opinions, or egos† (Weisbord, 1987, p. 10). As scientific management increased in popularity Taylor became more outspoken concerning his position on human relations in the work place, assuming that workers were â€Å"lazy, won't take responsibility, lack desire to achieve significant results, demonstrate inability to direct their own behavior, show indifference to organizational needs, prefer to be led by others, and avoid making decisions whenever possible. † (Montgomery, 1989, p. 6). Compare and Contrast Scientific Management – although scientific management has played and will continue to be an important aspect of our universal business model for production, it is necessary to note the weaknesses that this method contains. Such as its negative influence in current work environments concerning the human contribution. The tenants of Scientific Management are not applicable to all modern organizations. Nelson notes that â€Å"Scientific Management is perhaps best seen as an evolutionary stage in management’s ever developing history. † (Nelson, 1980, p. 14). Today’s the average employee has increased in their understanding of self-worth and their ontribution to the organization. Employees are no longer content with just the financial reward for their work; they also receive satisfaction when allowed to participate in the benefit of the organizations success. The Scientific Management system viewed workers as interested only in the economic reward and working toward that end only. (Worthy, 1959, p. 42) states that â€Å"in current organizations it has been recognized that productivity and success is not just obtained by controlling all factors in the work place, but by contributing to the social well-being and development of the individual employee. Scientific management’s negative aspects are apparent when evaluating the value of employees in the context of organizational contribution and success. (Nelson, 1980) uncovers that at the Taylor’s methods for managing the workers were not fully accepted by thousands of manufacturing plants due to fear of alienating the employees. Nelson states that â€Å"the principals of scientific management are unquestionably authoritarian in that they assume decision-making is best kept at the top of the organization because there exist a lack of trust in the competence of the employees. † (Nelson, p. 27). System of profound knowledge – Dr. Deming’s system of profound knowledge is quite different form that of Taylor’s scientific management in several ways that will be discussed here. The first is in my opinion the most significance, Dr. Deming’s system of profound knowledge unlike scientific management starts with the individual. Transformation of the individual is a key aspect of this system. This transformation is the result of understanding of the system of profound knowledge. (Deming, 1994) suggest that the once a person is transformed, they will understand that their life has value and real meaning. These principles will then be applied to all relationships, personal, professional, and social. The individual upon understanding the system of profound knowledge now has a point of reference for decisions and for organizations that they are a part of. The one challenge that I can see with the system of profound knowledge is this constant pursuit to improve. How do you start? How do you set down all of the baggage in order for transformation to actually begin? The last challenge that I see with this system is that all four tenants have to be put into play, if one of the four is not operative then the other three become null and void. Conclusion While both of these management philosophies/systems proved to be of benefit in different times when injected into different organizations, they are not without challenge and negative aspects. People, while they operate within systems, sub-systems, or processes, they are not comprised of them, however complex they are. When individuals are introduced into a system there has to be processes that will gage the individual performance outside of the system as well as within the system. If not the employee will always be subject to the system and not allowed to explore and identify their potential for success within other systems.

Segregation and Civil Rights Essay - 1685 Words

The definition of the term â€Å"American character†, in general, was in fact plagued during the 1950s. Instead of the believable â€Å"picture perfect† definition that American character was portrayed to be, it was really constructed of major struggles between different races. In particular, the significant struggles between blacks and whites. The 1950s was a crucial decade of change for African Americans. The results of the battle for nine African American children to attend Central High School (Little Rock, Arkansas) in 1957 promoted social advance for the permanent desegregation of public school systems. However, even with this nationally recognized social advance, the concept of â€Å"American character† varied between blacks and whites due to†¦show more content†¦A year later, the courts made a decision in Brown II that â€Å"school officials proceed with all deliberate speed as they forged school systems not based on color distinction† (And erson 4). Once these changes for African Americans began, supporters of segregation became more determined to remain the majority in power. Whites were upset that federal authorities overrode their desires and â€Å"sponsored a dangerous inversion of the South’s cherished traditions and the nation’s racial heritage† (Anderson 4). In their minds, blacks did not have a right to become educated, to have money, or to even be in the same category as them. White considered themselves racially superior and wanted it to remain that way. Karen Dubinsky observes that â€Å"Nation building required more than the formation of political and economic infrastructures. In the ‘human nation,’ the proper sort of citizens, subjects with ‘character,’ was necessary† (Reumann 7). The most influential factor in the definition of â€Å"American character† for whites was their higher economic status compared to blacks. However, economic status should not be the only factor used to determine whether you should be treated as equally as another race or not. All Americans should be given the same unalienable rights, in an effort to build a highly respected and unbiased nation. However in the 1950s, whites were not trying to build an improved nation, butShow MoreRelatedThe Civil Rights Movement And Segregation1759 Words   |  8 PagesThis world would not be what it is today without the amazing people who fought for what it has become.We used to live in a world of segregation and discrimination. If it wasn t for the   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Read MoreRacial Segregation And The Civil Rights Movement837 Words   |  4 Pagesâ€Å"The civil rights movement was based on faith. Many of us who were participants in this movement saw our involvement as an extension of our faith. We saw ourselves doing the work of the Almighty. Segregation and racial discrimination were not in keeping with our faith, so we had to do something.† Although today we may not see it as of ten, segregation was a very big problem throughout our country in the late 1800s and the early 1900s. Over time it didn’t get better, it got worse. Around the year ofRead MoreRacial Segregation And The Civil Rights Movement1550 Words   |  7 PagesGrowing up in rural Mississippi during a time of racial segregation Anne Moody had experiences that were extremely different then other children at the time. The gender-based and economic hardships she faced were factors that played a role in her experiences as a child. Her childhood experiences shaped her views and actions as she was fighting against the racial inequality in her home state and her views on racism as a whole in America. Her childhood and high school years were a series of eventsRead More Segregation and the Civil Rights Movement Essay1651 Words   |  7 Pagesthe African American experience. The origins of the civil rights movement date much further back than the 1954 Supreme Court ruling on Brown v. Board of Ed ucation of Topeka which said, separate but equal schools violated the Constitution. From the earliest slave revolts in this country over 400 years ago, African Americans strove to gain full participation in every aspect of political, economic and social life in the United States. Segregation was an attempt by white Southerners to separate theRead MoreCivil Rights in the US: Blacks and Segregation2330 Words   |  9 Pagesï » ¿Introduction By far the most important piece of civil rights legislation ever passed in the history of the United States was the 1964 Civil Rights Act, which finally ended the system of dual public schools in the Southern states and abolished Jim Crow segregation is hospitals, transportation and public facilities. Only the 1965 Voting Rights Act was of equal importance, and no legislation since that time has had as much of an effect on politics, economics and society in America. It benefittedRead MoreAfrican Americans and Segregation: The Civil Rights Movement1307 Words   |  6 Pagesconstantly reminded of how unworthy you were. How far would you go to be looked upon as an equal? Throughout the 1950s, African Americans experienced things that made them who they were – angry Americans. They encountered racial discrimination, segregation, and unequal opportunities. Within the play Fences, by August Wilson, we can see just how the play exemplifies what is happening in the world around the m. African Americans experienced the hatred of the whites everywhere they went and soon it wasRead MoreRacial Segregation And The Civil Rights Movement1407 Words   |  6 Pagesin the United States could not understand how it was possible that, even in light of the concessions made during the Civil Rights Movement, members of black communities were listening to funk and embracing their own racial identity rather than considering themselves American. In the eyes of many, the times of racial division had ended with the laws passed during the Civil Rights Movement. From this followed the belief that since everyone was allegedly equal, any effort to differentiate on the basisRead MoreRacial Segregation And The Civil Rights Era Essay1982 Words   |  8 Pagesand social understanding and it has its own unique history of racial inequity, discrimination and other heinous atrocities. While the civil rights era helped defeat a lot of the most visible forms of racial impediments. The seemingly invisible forms of racial discrimination, like institutional racism is still a major problem in society. â€Å"Unlike in the pre–civil rights era, when racial prejudice and discrimination were overt and widespread, today discrimination is less readily identifiable, posing problemsRead MoreRacial Segregation During The 1960 s Civil Rights Movement Essay2048 Words   |  9 PagesA primary technique used to overcome racial segregation during the 1960’s Civil Rights Movement in the United States was direct action. One of the most influential leaders of the Civil Rights Movement was Martin Luther King Junior who is known for his use of nonviolent direct action, which often entailed the violation of laws as an act of civil disobedience. On April 16, 1963, King composed his â€Å"Letter from Birmingham Jail,† where he accepted the consequences for his disobedience against the BirminghamRead MoreHidden Figures By Margot Lee Shetterly Segregation / Civil Rights Moveme nt1402 Words   |  6 Pagesexample: segregation. Segregation was the discrimination of colored people and being separated from the white community. It occurred from 1619-1954. During this time, all facilities were segregated and colored (Black, latina, Indian, etc.) people were given poorer treatment than white people, and everything was segregated, from buses to schools to water fountains/bathrooms. Segregation was portrayed in two books. The book Hidden Figures by Margot Lee Shetterly represents segregation/Civil Rights Movement