Saturday, August 10, 2019
Observation Essay Example | Topics and Well Written Essays - 1000 words - 2
Observation - Essay Example From the past, working together as a community has been made to go through some definite orientation bestowed by a struggle, tension with a definite concern to all the necessary aspects, which depends on socio-economical and political impacts of working together as a community. That is why it was considered by Greetz that anybody who has ever been to Bali, the length of time used is while doing little job together as a community is much significant in enabling identification of a person as relevant to the community as compared go instances where there is no sense of coordination and togetherness (Dundes 94). Communal work practice is basically concerned with how to improve satisfaction of the societal members based on economics Cultural and social contexts, which make the community, feel as a single society. The possibility for this to be moderated is of high existence because it is based on working together as members of one community in order to satisfy the desire for each other and to ensure that each and every person is committed for the well being of another person (Dundes 94). Greetz stated that, men who are considered to be working towards each other are probably considered to more pompous than a tailless cork. more or less this much similar to a spectacular desperate man who only makes last irrational effort or extricate himself away from hard situations and even similar to a dying cork who makes last movement when subjected to a common situation. Group of persons who share common ideas of professionalism has the capability of evolving under natural situations as basically because they peruse some common goal and are bounded by some specific norms. Such groups or members of the society would stop at nothing but simply work very hard to achieving facts which are only important to the development of all members of the society. Through sharing of knowledge and norms, which govern such
Friday, August 9, 2019
Practice Analysis with Whistlers Mother Essay Example | Topics and Well Written Essays - 250 words
Practice Analysis with Whistlers Mother - Essay Example The painter used different colors in order to differentiate between the background and the image of a woman. The background also includes things which show the viewer that the woman was in the house like the curtain and a piece of picture at the wall. The painter has used good colors which can make and an individual to think that the painting is real. The color of the face is that of a white woman. He has used different colors in order to differentiate different parts of the body and cloths. For example, the head cover is white in color while the dress is black ((Margaret ââ¬Å½and James 77). The image is well designed and of high quality. The painter used color to make the image more attractive to the viewers. Black and white colors are hot and attract individuals from fare. The painter also painted the women sited in order to bring up the aspect of relaxing (Margaret ââ¬Å½and James
Thursday, August 8, 2019
What's Wrong With the WikipediaJews in the Middle Ages Entry Essay
What's Wrong With the WikipediaJews in the Middle Ages Entry - Essay Example A number of article entries have made fantastic claims about certain events, people, or facts without providing any authentic or credible sources to back them. Wikipedia is an open and free encyclopedia which is not considered to be a valid and trustworthy source by universities. Students are not allowed to cite information taken from Wikipedia while other schools have banned its usage. This research paper assesses the encyclopedic entry ââ¬Å"Jews in the Middle Agesâ⬠by pointing out the untrustworthiness and unreliability of its content. It considers how the article is limited with reference to the history of the Jews by excluding several communities. It also studies how certain elements and aspects of Jewish history have not been added into the entry. The paper investigates and critically assesses how the article makes conclusions regarding the relations between the Jews and majority culture. The article extensively writes about the social conditions of the Jews living in West Europe. It fails to mention the history of the Jews who lived in the Middle East and Russia1. The Islamic caliphates were at the height of their intellectual, scientific, and philosophical achievements. Unlike the Christian West, Jews were actually tolerated and protected under Arab areas. The Jews had to pay a special tax called ââ¬Å"Jizyaâ⬠which was levied on minorities. Wikipediaââ¬â¢s article fails to write about the social conditions of the Jews in the Islamic caliphates. Jews rose to important positions inside the Islamic Caliphates like Solomon Ibn Gabirol and Yehuda HaLevi2. These Jews made extensive contributions towards the study of Judaism by writing interpretations of the Torah, philosophical beliefs, and prayers. An investigation of the article also reveals little information regarding the position of Jews in the Slavic nations. The Khazar kingdom in the middle ages was a Je wish state in the
Wednesday, August 7, 2019
How to enhance expatriate motivation and effectiveness within a Term Paper
How to enhance expatriate motivation and effectiveness within a cross-cultural organization - Term Paper Example ................. 4 1.4 Structure ...................................................................................................................5 2. Theory Review.......................................................................................................... 5 2.1 Work motivation ...................................................................................................... 5 2.1.1 Definition of motivation ........................................................................................ 6 2.1.2 Motivation theories............................................................................................... 6 2.3.1 Herzbergââ¬â¢s Two Factor Theoryâ⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦..6 2.3.1 Herzbergââ¬â¢s Two Factor Theoryâ⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦ ..8 2.3.3 Hofstedeââ¬â¢s Cultural Dimension Modelâ⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦..10 2.1.4 Limitation of motivation theory ........................................................................... 12 3. Case Analysis: Nokia in China â⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦.. 13 4. Discussion and Recommendation.......................................................................... 13 5. Conclusion ............................................................................................................... 14 References........................................ ... In the modern world, it is common to find people from different countries and cultures working in the same environment. It is important for these organisations to improve effectiveness so as to better their competitive advantage so as to cope with the mounting competition in the global market. Employees are always willing to realise their goals in the work place. Thereby motivation factors are a concern of the employees and the human resource management. This boils down to the questions on whether employees from different cultural organisations are motivated in different ways and how management can improve overall effectiveness in cross- cultural organisations (Becker, 2000:33). In point of fact, there could be many problems arising in these organisations such as communication difficulties and cultural differences which might negatively impact on the efficiency and cause major problems for the HR department. It is therefore important for the HR department to maintain a motivated work force. Even though, firms face related HRM problems, the duty for culturally diverse organisations is far more intricate than that of their single- culture equals. In order cross- cultural companies to develop a motivate work force it is important for organisations to have a developed understanding of motivation factors (Becker, 2000:35). It is of great importance for companies to find out how employees from different cultural settings react to similar motivating factors, as culture has been found to have a an intense impact on human behaviour (Matic, 2008:94). Recent studies have revealed that people want more than money from work. There are five important issues including the link between work and life, relationship between
Tuesday, August 6, 2019
Pan Europa Essay Example for Free
Pan Europa Essay Answer 1: In order to avoid takeover Pan-Europa should develop and maintain faith and loyalty of their customers towards products. Company should also satisfy its stakeholders by expansion and improvement in their market and product. At given time EPS and Shareholdersââ¬â¢ Equity plays a vital role. Company should increase its market share by same ââ¬Å"low price and high volumeâ⬠and expand its production for more efficiency. Maarten Leyden from Production should be leading the way for Pan-Europa. Answer 3: Part 1 of the question relates to Question 2 Various study techniques can be used for correction of different factors that affect project. The investmentââ¬â¢s time value of money and unequal lifetime can be corrected by using net present value method (NPV). Risk can be reduced by ââ¬Å"Optimizationâ⬠that is finding good balance between advantages and negative risk. Answer 4: â⬠¢Ã¢â¬Å"Must Doâ⬠project according to me are Project 3 Expansion of a plant Project 6 Effluent water treatment at four plants. Company southeastern region plant in Germany had reached full its full capacity. With the expansion capacity was expected to result in additional production of up to â⠬1.5 million per year, yielding an IRR of 11.2%. Water treatment is regulatory requirement and itââ¬â¢s just matter of time before it has to be done. It might cost company 2.5 times more in coming 4 years than today. â⬠¢Higher risk projects include Development and introduction of new artificially sweetened yogurt and ice cream and Development and roll-out of snack foods. Customers has tendency like monkey and can easily jump from one branch to another and customer just easily switch to another product. Lower risk project is Replacement and expansion of the truck fleet. â⬠¢Combined effort between new plant and expansion of plant alongside with market expansion would be beneficial to the company . â⬠¢Effluent water treatment has nonquantitative benefit because it is environmental compliance. Answer 5: The most desirable projects according to me are new plant and expansion of plant (project 2 3). â⬠¢Is the project a ââ¬Å"must doâ⬠for reasons outside the companyââ¬â¢s control? No â⬠¢Does the project meet the company policy for minimum IRR? Yes â⬠¢Does the project meet the company policy minimum payback period? No â⬠¢Does the project incur excessive risk? No â⬠¢Does the project meet the current corporate strategy? Yes Answer 7: Management committeeââ¬â¢s recommendation to the Board of Directors should be a new and expansion of plant, effluent water treatment and market expansions as per table:
Royal Dutch Shell
Royal Dutch Shell Royal Dutch Shell is a global, publically traded Public Limited Company, whose main focus is on the energy and petrochemicals business. Royal Dutch/Shell officially formed in 1907, with the merger of a London based Transportation Company called Samuel Shell transport and trading company ltd., and a recently formed oil company from the Netherlands, the Royal Dutch Petroleum Company. This merger facilitated the transportation of oil throughout the world, giving Royal Dutch Shell a global presence in the then emerging market of oil. Until 2005, Royal Dutch and Shell were two entities, with a 60/40 profit sharing mix, Royal Dutch and Shell respectively. The two companies officially merged into one entity, eliminating the slash after Royal Dutch. They have a principal listing in the London Stock exchange and their official headquarters are located in The Hague in The Netherlands. Shell as it is notably abbreviated as, began with the vision of its first operating manager Henry Deterding. H enry Deterding, provided the growing company with a strong backbone, taking Shell from a small player in the oil exporting business to a major competitor. Royal Dutch Shell, took control of Mexican Eagle Petroleum Company in 1919, and in 1932 formed an alliance with British Petroleum, and was Shell-Mex and B.P. Ltd until 1975. Its last major acquisition was in 2007 of the Ukrainian oil company Regal Petroleum. Today, Shell is based in over 140 countries, and is engaged in oil and gas exploration and production, transportation and marketing of natural gas and electricity, and marketing and shipping of oil products and chemicals. They also have interests in renewable energy, like wind, solar and hydrogen based energy. Royal Dutch Shell has come a long way since its inception and has become a world leader in the oil and gas market. This is in large part due to the companys leadership, since the formation of the company strong leadership has brought Shell into a well-built company. Roya l Dutch Shell through their strong leadership, ethics and corporate social responsibility; and their business environment have become according to fortune 500, the largest Corporation in the world. Leadership and Managemen The Management of Royal Dutch Shell, like other major oil companies BP, Amoco, Exxon and Mobil is highly complex. Controlling and efficiently profitably running an organization that is active in over 140 countries is not an easy job. Each country and region has its own difficulties and limitations that put the managements strategy in challenge and force it to change regarding the political, economical and social situations. This is the challenge that Shell accepts and moulds itself according to the situation. Strengths Shell is one of the largest oil companies in the world and has a strong market position. Its operations include upstream and downstream operations in over 100 countries. The company has interests in oil production operations in 37 countries and majority interest in 40 refineries worldwide. Shell operates the worlds largest single-brand retail network, with more than 45,000 service stations. The cornerstone of the company is its leadership position in various fields such as oil products, deep-water production, Natural gas, and polyolefin. The company has established a strong brand image operating for over 100 years worldwide. Shell is ranked second in 2009 Forbes Global 2000, up from sixth in 2008. It was ranked eighth in 2007. The company is ranked First in 2009 Fortune Global 500 ranking. The companys strong market position gives it significant bargaining power in the global oil industry. Shells business operations are vertically integrated with presence in both upstream and downstream businesses. In upstream, the company is engaged in the exploration and production of oil and gas. In 2008, the companys total hydrocarbon production totaled 3,170 thousand barrels of oil per day. During 2008, the company participated in 224 successful exploratory wells. The company is also involved in the natural gas supply, storage, transport, distribution activities, and marketing of natural gas and electri>city. The companys gas and power business operates in 35 countries around the world. In downstream, the company produces and markets refined petroleum products. Its refining and marketing division operates 40 refineries with an installed capacity of 4 million barrels per day. The company conducts its operations through an extensive distribution network comprising 9,000 miles of pipeline in about 70 countries, over 300 distribution facilities, and 3,000 storage tanks. Shell is one of the largest single branded retailers with more than 45,000 service stations spanning 90 countries. The companys vertically integrated operations give it significant competitive advantage in the global market in terms of economies of scale, synergies, and cross-marketing opportunities. Weaknesses The company has been witnessing a consistent decline in its hydrocarbon production in the recent past. The hydrocarbon production totaled 3,170 thousand barrels per day in 2008. This was 2% lower than the production in 2007 and 7% lower than in 2006. The decline in production is attributed to field declines, lower volumes, price impacts of production-sharing contracts, the effects of the hurricanes in the US Gulf of Mexico, and the planned maintenance turnarounds in the UK related to the shutdown gas processing facilities. The field declines affected oil production in the Australia, Brunei, Denmark, Nigeria, Norway, the UK, and the US during 2008. In addition, natural gas production was affected by declining fields in Brunei, Germany, Malaysia, the US, and the UK. Declining production would adversely affect the companys revenue growth. Shell faced an administrative action in 2008. Shell was fined $109,600 by Washingtons Department of Labor and Industries, in June 2008. The company was fined for multiple safety violations in its Anacortes refinery. The refinery is the second largest of the four major facilities supplying gasoline and other petroleum products to the Puget Sound region. The department cited 23 violations ranging from inadequately instructing operators on how to deal with emergencies to faulty inspections. Shell paid $120 million in June 2008, to settle a class action lawsuit led by the Pennsylvania State Employees Retirement Board and the Public School Employees Retirement Board. There was an allegation against Shell of overstating oil and natural gas reserves and artificially inflating stock prices over a five-year period from April 1999 to March 2004. In 2004, Shell admitted to have overstated its oil reserves by about 20%, 3.9 billion barrels. Many of the companys executives lost their jobs, including chief financial officer Judy Boynton. In April 2007, Shell agreed to pay $352.6 million, plus administrative costs, to settle a lawsuit with investors outside the US who purchased the companys shares. In May of 2009 Shell settled a $15 million dollar civil rights lawsuit in Nigeria. They were accused of paying soldiers to abuse locals in predominantly oil rich regions in Nigeria. Such huge penalties can have negative effects on the companys profitability as well as Shells overall rep utation. Opportunities Shell announced a proposal by Shell Canada for the acquisition of all of the outstanding shares of Duvernay Oil Corp, in July 2008. The acquisition was completed in August 2008. Duvernay, based in Alberta, is engaged in the exploration and development of natural gas and crude oil in the deeper, western portion of the Western Canadian Sedimentary Basin in Alberta and Northeastern British Columbia. The company owns about 450,000 acres in two large gas project areas. Duvernay owns and controls the natural gas processing and delivery infrastructure in both the project areas. The company produces over 25,000 barrels oil equivalent per day predominantly in natural gas. The company plans to increase production to about 70,000 barrels per day by 2012. Shell has a strong presence in North America tight gas activities. With the acquisition of Duvernay, Shell could strengthen its portfolio through enhanced technology and scale. Duvernays acreage together with Shells operating expertise and fina ncing capabilities provide a strong platform for future growth. Increasing demand for liquefied natural gas, the demand for liquid fuels is expected to increase to 108 million barrels per day by 2030, an increase of 30% from 2005. The demand for global liquefied natural gas is expected to more than triple in volume from 2005 to 2030, driven by the demand in North America, Europe, and Asia Pacific markets. Currently, Shell is participating in the Liquefied Natural Gas projects in major projects, Pearl GTL and Qatar gas 4 LNG in Qatar. The company is also participating in LNG projects in Australia. The companys focus on LNG projects implies it is well positioned to venture into opportunities in the growing market worldwide. Threats Shells business is subject to numerous laws and regulations relating to the protection of the environment. With rising awareness of the damage to the environment caused by industry, especially regarding global warming, regulatory standards have been continuously tightened in recent years. One of the most important developments in this area has been the introduction of the Kyoto Protocol for the reduction of greenhouse gases. The protocol calls on industrialized countries to reduce their greenhouse gas emissions level by 5.2% on an average annual basis during the 2008-2012 periods. The company has a significant presence across the US and the European markets. A weak economic outlook for these regions could depress industrial development and impact the demand for the companys products. Related threats to Shell include its major competitors, domestically and worldwide. These major competitors include and are not limited to: Exxon Mobil, British Petroleum, Conoco Phillips, PETRONAS, Total, Chevron and CITGO. These companies are vital threats to Royal Dutch Shells bottom line because they, for the most part, offer the same types of products and services sometimes at a substantial price discount. There are some main problems and issues inside Royal Dutch Shell that are evidently highlighted and should be resolved so the company can keep their competitive advantage when analyzed and compared to other corporations. The predominant problem is the higher than normal employee turnover rate which can be contributed by the employees to the company. In recent years namely there was a large increase of employees that were leaving Shell, in exchange for other employment positions in oil and petroleum companies that are direct competitors of Shell. Although this phenomenon did and does not impact all global operations, there is still a negative impact on the performance of this business organization since these events happens in customer rich areas such as Asia, India and the Middle East. Another major problem that is being faced by the company is its eroding supply base in the Middle East and other oil producing regions due to the ongoing friction between the United Kingdom and oil producing countries in the Middle East such as Iran with regards to topics such as the war on terror, the occupation of Iraq and the ongoing negotiations on the nuclear ambitions of Iran. Since Shell Company is partly British owned, these contemporary issues and news can directly affect the supply and logistical train of the company. Due to the support given by the British government to the United States with regards to the occupation of Iraq and the war on terror, the company has been losing the influence and prestige when it is viewed by Arabian and Middle East producing companies. This animosity against the corporation stem from the fact that it is a British company in the Middle East. This company has also supplied fuel, oil and other petroleum based products to the occupying forces in Iraq and Afghanistan which are wholly composed of the British and American Armed forces. To remedy these pressing problems, certain issues and concerns must be addressed. To combat the negative publicity that is being shed against Shell in the Middle East countries and the loss of the preferential treatment previously offered by Middle East countries to the company, an appropriate campaign must be launched to erase this negative perception about the company. This publicity campaign will not only be geared towards oil producing countries but will also focus on other Middle East countries. Reconciliatory talks and discussions must be established with the members of the OPEC in relation to the current prices of oil and petroleum based products. To further reinforce these steps, the company must assign area/regional managers in these countries who have a significant understanding and immersion in the local culture and thinking to reduce the probability of misunderstanding and miscommun ication that would add another injury to the present situation. The CEO must also have leadership qualities and characteristics to inspire his/her subordinates to respect Arabic customs and traditions. He must exude motivation, self confidence and necessary skills that are suitable for the job at hand. Lastly, the company must set up two programs so that it can remedy the last problem mentioned in this paper. First, to capture the new market, it must redefine its products to comply with strict government and environmental standards. The process of using, mining and manufacturing its products must be free from any pollution and contamination. These vital steps will not only please a government and a lobby group but would also earn the sympathy and recognition by the public. The company must also take steps in reengineering its internal structure to accommodate renewable sources of energy. It must train personnel and employees so that they would be ready to research, experiment and to test various sources of energy that is being developed by the oil industry. Similar to most global companies, Royal Dutch Shell has many strengths and weaknesses that affect the overall performance of the company. However, Royal Dutch Shell, through the companys commitment to strive for excellence combined with their upstream and downstream revenue streams, their leadership structure and corporate and social values have become the largest corporation in terms of revenue in 2009.
Monday, August 5, 2019
Changing Commodity Prices Impact On Common Agricultural Policy Economics Essay
Changing Commodity Prices Impact On Common Agricultural Policy Economics Essay In the wake of an increasingly globalized economy, one that has seen the emergence of large trade blocs and common markets, the nations of the world have been competitively forced into becoming more economically integrated year after year. In light of hundreds of years of consumer theory, this would almost certainly lead one to a conclusion of necessarily lower prices and more efficient production on almost all products. However, as is the case in many nations, the European Union (EU) has succeeded in creating an artificial market for agricultural products through the use of a Common Agricultural Policy (C.A.P). The Common Agricultural Policy is a policy, set forth by the European Union (EU), which is comprised of a set of rules that regulate the production, trade, and processing of agricultural products. The C.A.P currently accounts for almost fifty percent of the EU budget, however, this number continues to decrease over the years. The C.A.P is significant in that it symbolizes Europes switch from sovereignty on a national level to a European level. (McDonald and Dearden, (2005), European Economic Integration, Prentice Hall, 4th edition.) Common Agricultural Policy (C.A.P). The EUs agricultural policy dates back to 1957, when the creators of the Treaty of Rome defined the general objectives of a common agricultural policy, post-war food shortages still fresh in minds. The principles and mechanisms of the Common Agricultural Policy (C.A.P) were adopted by the six founding members of the European Economic Community, and in 1962 C.A.P came into force. C.A.P was designed to secure Europes self-sufficiency in food production. The basic principles of C.A.P remained the same for decades: guaranteed prices for agricultural products, often above world price levels, and subsidies based on the quantity of production, with little concern for the problem of surplus production. C.A.P has been the most fully integrated of EU policies. In the 1970s, nearly 70% of the EU budget went into agriculture. After a series of reforms, agriculture expenditures in the budget have dropped to 35 % for the 2007-2013 financial period. Over the same period, more money (9.7%) has been allocated for rural development and the expansion of EUs other responsibilities. (Common Agricultural Policy (C.A.P).European Journalism Centre (EJC) 2009). Common Agricultural Policys reforms. The C.A.P has had a long history of reform, and is nowhere near perfect. The first attempt at reform came just ten years after its implementation. In 1968, the Mansholt Plan was put into effect in an attempt to reduce the number of people in the agriculture business and to promote more efficient means of agricultural production. In 1972, the extensive food surpluses were targeted through the creation of structural measures designed to modernize European agriculture. This attempt at reform is generally regarded as a failure because many of the problems it tried to fix were still left unchecked. In 1983, a publication was released entitled, The Green Paper, which sought to balance the ongoing disparities between supply and demand through improvements in production. In 1988, the European Council agreed on various reform measures. The most important was the agricultural expenditure guideline, which limited the percentage of C.A.P expenditure in the overall budget. In 1991-92, the future of the C.A.P was addressed through what has been called, the MacSharry Reforms. The key aspects of the reforms included the cutback of agricultural prices to make the products more competitive, compensation for farmers that incurred a loss in income, and environmental protection. The reform of 1992 was generally regarded as successful, with positive effects on European agriculture. However, international trends, the enlargement towards Central and Eastern Europe, the preparation of the single currency causing budget constraints, the increasing competitiveness of products from non-member countries, and a new round of World Trade Organization negotiations forced further adaptation of the C.A.P (europa.eu.int). In July 1997, Agenda 2000 was created to address many of the important issues facing the EU and the C.A.P. The key focuses of this new agenda are the reinforcement of the competitiveness of agricultural commodities in domestic and world markets, the promotion of a fair standard of living, the creation of extra sources of income for farmers, a new rural development policy, revamped environmental considerations, better food quality and safety, and the simplification of C.A.P legislation. The first wave of C.A.P reforms had decreased over-production, brought down butter mountains and emptied the milk lakes. But by 2002, several factors made it a necessity to undertake major review of the EUs farm policy, including several food crises, the EUs planned eastward expansion, World Trade Organizations objections to the C.A.P and the sustainable development strategy defined during the Gothenburg Summit. In 2003, Franz Fischler, then the Commissioner for Agriculture, Fisheries and Rural Development, presented a C.A.P reform package he described as the most radical improvement to the EUs agricultural policy ever. His main proposals included: decoupling of subsidies and production high requirements of environmental, food safety and animal welfare standards as prerequisite for getting subsidies more money to rural development as opposed to direct and market subsidies cuts in intervention prices in many sectors After heated debate, farm ministers agreed to go through with the C.A.P reform. Although, the link between farm subsidies and the amount of production was not totally abolished, as originally proposed, a major shift did take place, with the bulk of farmers income now coming from direct aid, based on the size of their holdings and not production. (Common Agricultural Policy (C.A.P).European Journalism Centre (EJC) 2009). The reform also prepared the EU for the WTO Doha round of international trade liberalization talks, where the EU offered to eliminate export subsidies altogether by 2013. The talks were put on hold in 2006. Whatever the result of the trade talks, the EU remains the worlds largest importer of food, especially from developing countries. A number of sensitive sectors were left out of the 2003 C.A.P reform, including sugar, wine, bananas and other fruits and vegetables. Since then, a profound reform of the sugar sector was agreed on in 2005. In 2006 and early 2007 the Commission also proposed reforms for the wine, banana and fruit and vegetables sectors. (Common Agricultural Policy (C.A.P).European Journalism Centre (EJC) 2009). Under the Barroso Commission, Mariann Fischer Boel took over stewardship of the renamed Agriculture and Rural Development DG. She continues to strive for higher food quality and safety, efficient application of the Rural Development Policy 2007-2013, energy crop schemes and simplification of the C.A.P and cutting of red tape. The enlargement of the EU from 15 to 27 members has brought new challenges to C.A.P the number of farmers in the EU increased by over 70%. Meanwhile, farming organisations have welcomed the EUs decision to set a minimum 10% target for the use of biofuels for transport by 2020. The EU has also created the possibility for agriculture to play a bigger role in the fight against climate change, according to the COPA organisation. A key aim of the 2008 French EU Presidency was to bring the C.A.P up to speed with new global challenges. To this end, with the backing of the Commission and a vast majority of member states, four texts were adopted in November 2008, focusing on rural development, direct aid to farmers, and regulation mechanisms for the single market (dairy quotas, interventions, etc.). (A health check'(CAP)by Europa (European Commission) (2009)). These agreements officially launched the EU debate on the future of the C.A.P post-2013, also taking stock of global food balances, competitiveness, sustainable development, and the economic dynamism of rural areas. The Czech Presidency of the EU, in the first semester 2009, failed to secure an agreement on the future of the C.A.P post-2013. However, the Agriculture Council did agree unanimous conclusions on agricultural product quality and the retargeting of aid in Less Favoured Areas (LFA). (Common Agricultural Policy (C.A.P).European Journalism Centre (EJC) 2009). The quality policy paves the way to clearer labelling and, it is hoped, better communication and understanding among farmers, wholesalers and consumers. The Council also said it would consider national and private food certificates that follow Commission good practice guidelines and pledged to cut red tape for farmers and producers who want to apply for EU schemes like the organic label and geographical indications. The LFA programme is designed to improve the targeting of aid to farmers in areas with natural handiC.A.Ps. Member states have been asked to produce maps by 31 January 2010, including specific details on climate, soil, and terrain. (Common Agricultural Policy (C.A.P).European Journalism Centre (EJC) 2009). Global food prices and C.A.P reform. The European Unions common agricultural policy protects and subsidizes agriculture so heavily as to bring serious social losses to the Economic Union. The policy creates inefficiencies in the agriculture sector as well as other sectors of society such as manufacturing, textiles, and service industries. Furthermore, there have been many economic consequences of the C.A.P, including the high level of protection, the burdens on consumers, taxpayers, and the EU budget, environmental damage, the harm to international trading relations, and the failure to raise farmers incomes (The Common Agricultural Policy:Past, Present and Future. Brain E.Hill. `Metheuen Co. Ltd, London. (page 117). There are a lot factors responsible of the food price rise: speculation in commodity markets, low global food stocks, subsidies, high cost of energy, concentration of important agricultural markets in the hands of a few firms, trade restrictions by important exporters to protect domestic consumers, deprecia tion of the US dollar and lower productivity growth due to low investment in agricultural researchà ¢Ã¢â ¬Ã ¦ As global pricesà hit new highs,à the European Commission had to intervene. First they sold its intervention stocks, removed the obligation to set aside 10% of arable land for the 2008 harvest, increased milk quotas by 2% and suspended import duties on cereals. (Global food prices and CAP reform by Euractiv. (2009). Then, theà Commissionà proposedà policyà measures aimed at improving market transparency. It decided to enhance monitoring ofà developments in agricultural markets andà analyze the impact of price speculation.à The EU executive also announced plans toà investigate the functioning of the food supply chain for potential unfair commercial practices, which may be holding back competitionà andà driving up prices.à Overall, the Commissionsà policy to address rising global food prices comprises threeà strands of action: Mitigating short and medium-term effects of the food price shockà by monitoring price developments and speculative investments, changing the CAP Increasing agricultural supply and ensuring food security in the longer termà by strengthening the sustainabilityà of EU and global policies on biofuels, boosting agricultural researchà to increase productivity and maintaining an open but vigilant GMO policy,à and;à Contributing to the global effort to help the poorà by promoting an open trade policy and concluding the Doha round of World Trade Organisation (WTO) talks,à offering humanitarianà aid and supportingà agricultural and rural development policy changes in developing countries. (Global food prices and CAP reform by Euractiv. (2009). C.A.P effects upon the environment. The C.A.P has also caused concern for the environment as well as concerns for the economy. Because of the subsidies provided to farmers, they have the incentive to produce more agricultural products because they will receive more money. The C.A.P price policies have encouraged intensive farming and the overuse of antibiotics, pesticides, and nitrates. This has put a strain on the environment and has concerned the people of the European Union. The policy did not foresee farmers overproducing and over using chemicals, but this has become an indirect cost created by the policy. Europeans are also concerned with food safety because of farmers using so many chemicals in production. Farmers have been getting away with using the chemicals and unsafe practices because of the limited food safety regulations. Policymakers believed that high price supports would lead to higher food safety and quality. High support prices do not increase either food safety or quality: indeed, minimum prices and intervention guarantees encourage low quality and standardized produce (The European Community: Economic and Political Aspects. (V.Lintner and S.Mazey. `Mcgraw-Hill, Maidenhead. (page 107) (1991). CCL: C.A.P has been seen as a monument to the determination of politicians, especially in the early years of integration, to work together for a united Community. It has become a symbol of co-operation. C.A.P has economic and social dimensions. There are many reasons put forward to explainà risingà food prices. These range from changing eating habits to trade restrictions and climate change. Theà European Commissionà insists that there is no connection between EU agricultural subsidies and rising food prices, andà stresses that the C.A.P isà much less trade-distorting than the American policy.à (Global food prices and CAP reform by Euractiv. (2009). ANNEXES: Figure 2: EU agricultural payments, 1963-2013. Sourceà : Agriculture 2009 revised.ppt Figure 3: EU expenditure: 1988-2006. Sourceà : Agriculture 2009 revised.ppt Figure 4: Sourceà : Agriculture 2009 revised.ppt Figure 5 and 6: Sourceà : Europa. REFERENCES: WEB SITES: Global food prices and CAP reform by Euractiv. (2009) http://www.euractiv.com/en/cap/global-food-prices-cap-reform/article-184329 Accessed 15th February 2010. Common Agricultural Policy (CAP) by European Journalism Centre (EJC). (2009) http://www.eu4journalists.eu/index.php/dossiers/english/C8 Accessed 16th February 2010. Agriculture CAP by Europa (European Commission) (2009) http://europa.eu/pol/agr/index_en.htm accessed 16th February 2010. The Doha Development Round of trade negotiations: understanding the issues by OCDE. (2008). http://www.oecd.org/document/45/0,3343,en_2649_201185_35738477_1_1_1_1,00HYPERLINK http://www.oecd.org/document/45/0,3343,en_2649_201185_35738477_1_1_1_1,00en-USS_01DBC.htmlHYPERLINK http://www.oecd.org/document/45/0,3343,en_2649_201185_35738477_1_1_1_1,00en-USS_01DBC.htmlHYPERLINK http://www.oecd.org/document/45/0,3343,en_2649_201185_35738477_1_1_1_1,00en-USS_01DBC.htmlen-USS_01DBC.html Accessed 17th February 2010. Fortress EuropeOne vision, one market: Europe as a success story? (2008) http://www.groupedebruges.eu/Word docs/manifest_chapter_4_(draft_version_1).doc Accessed 20th February 2010. LECTURE: Lecture 11: Agriculture. SEMINAR: Seminar 11: Agriculture. Agriculture 2009 revised.ppt REPORTS: CAP reform documentà : 970 Future CAP.pdfà ; 981 Future CAP.pdf CAP report: Open Europe CAP report.pdf
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