The Development of Populism in Argentina and Peru during the 20th Century

The paper will study populism as political movement widely used in the countries of Latin America throughout the twentieth century. The methods applied and the progress of populism will be investigated on the basis of political history of two countries: Argentina and Peru. In order to fulfil thorough examination, the paper will narrate the main narrate the main aspects of populism and then compare and contrast its Argentinean and Peruvian versions. Finally, all the findings of the paper will be summarized and analyzed in the conclusion.The term â€Å"populism† was used to describe the politicians who claimed that they represent the interests of â€Å"common people† as different from those of the powerful or rich.[1] Populist movements were not class-based. Though ideologically they were incoherent, they tried to be inclusive. The leaders were mainly charismatic and personalistic. The style of the leadership was demonstratively nationalistic, which meant that it was base d either on native traditions or pseudo traditions of the country.As a rule, populists evinced their deep concern for social justice, reform, betterment of the working class, and removing marginalization by integration of impoverished people into society. The class conflict was portrayed as alien. The core of populists’ promises was making necessary changes without altering the basic nature of society. Populist parties claimed that they knew all the answers for national problems and those who opposed them were not true patriots of their nation. Populists usually sought alliance with unions and tended to build a centralized state where power was concentrated in the hands of the president.According to Joel Horowitz, populism dominated in political history of Argentina.[2] Due to populism modern Argentina has unbridgeable schisms in its today's society, rhetoric and style of its politics. While the process of development, involved major sectors of society and attracted the suppo rt of masses of Argentineans. Populists called themselves the savours of the nation and the opponents of populism were defined as enemies of the people. In this way, â€Å"politics revolved around movements that won strong allegiances but excluded their enemies.†[3] It caused a range of military takeovers, with the subsequent massive violence, where both military and civilians were involved.The early stages of modern political system of Argentina and the first attempts to implement populist policy can be traced from 1980, when the Radical Party made and attempt to overthrow the government. Though this attempt failed, the radicals (Unià ³n Cà ­vica Radical) demonstrated their opposition to the existing political system and called for fair elections. It constituted a serious threat of revolution in Argentina because the party was supported by the middle class of society.   However, many of the leaders of the radicals were from elite. The Radical leaders appealed directly to the working class of Argentina.Hipà ³lito Yrigoyen ( 1852-1933), a son of a woman from the elite and a Basque blacksmith, became the first prominent politician who started his career as a leader of the radicals and obtained popularity by using the methods of populism. He created the mechanism of a modern political party and easily outmaneuvered his rivals. He made himself a symbol of the radical party, represented its hopes and developed his leadership into a whole cult of his personality.However, Yrigoyen did not use the methods that characterize a conduct of a modern populist. He infrequently gave speech and rarely appeared in public. Hipà ³lito Yrigoyen wrote very little ‘for popular consumption’ and his written works were difficult to understand. Yrigoyen’s utterances contained insufficient political philosophy. Also, after becoming a president, Yrigoyen did not show a particular interest in any political program, instead, he seemed to be interested in pow er itself and its expansion. In addition, Hipà ³lito Yrigoyen did not campaign using oratory of most populists or the flamboyant gestures. The strong points of his authorship were based on creating jobs and dispensing patronage.Even from its early stages of development populism in Argentina relied on police and police chefs in particular. Under the presidency of Hipà ³lito Yrigoyen, Buenos Aires chiefs of police functioned as key operatives and settled labor conflicts. The importance of police can be brightly illustrated using the example of Elpidio Gonzà ¡lez’s career path. Gonzà ¡lez attempted to achieve the position of vice president, and minister of interior by gradually moving from minister of war, to the level of candidate for governor of Cà ³rdoba, one of the most importance provinces, and then to police chief in Buenos Aires. Thus, under the policy of populism, â€Å"A good police chief was a man for all seasons.†[4]The early populist Hipà ³lito Yrigoyen appealed to new groups of society and promised changes without altering social underlying nature. Yrigoyen was a marginal member of oligarchy and rural elite. As a result, while speaking on class conflict, he continuously attacked the ill-defined rural-based elite and the oligarchy, which attracted support middle and working classes of the country. Also, Hipà ³lito Yrigoyen popularity among common people was strengthened when he started to treat people with low income as the true members of society. Later, in the 1940s, this approach was used by another charismatic populist leader- Juan Perà ³n.Some populist gestures of Hipà ³lito Yrigoyen were too obvious. Thus, in 1917 when workers went on strike at a meatpacking plant, he refused to give an interview to the leaders of the cattlemen's association Sociedad Rural, which was considered to be most important social and economic group in Argentina. Such an attitude was noticed by the newspapers, and soon one of the chief national new spapers publicized an article were it emphasized that the leaders of the cattlemen's association were received not with the same attention as the striking workers of the plant.[5]While his presidential campaign, Hipà ³lito Yrigoyen turned to the native-born working class which was rapidly growing at that time. Yrigoyen understood that the working class of Argentina could be a huge potential source of voters. This became possible due to influential ideology of Syndicalism. In 1910 Syndicalism turned into a vigorous labor movement that disdained bourgeois and proclaimed revolution through a general strike. Hipà ³lito Yrigoyen was willing to ally with Syndicalists because they did not have other political ties and would block the growth of Yrigoyen’s serious rival – the Socialist party.The government of Hipà ³lito Yrigoyen did not interfere with the activity of Argentinean Syndicalism and, moreover, made steps to satisfy demands of strikers, for example, to improve the ir conditions, to employers to accept the role the unions in hiring workers. Of course, later the role of Yrigoyen in settling early strikes was stressed by his publicity during the 1927-28 presidential campaign.In 1930 the most celebrated wave of populism flooded Argentina. Argentinean government that ruled from the period of 1932-1943 mainly belonged to neoconservatives, who included the members of traditional landed elite and tried to keep up a pretense of democracy. The exigencies of the Great Depression forced the implementation of the policy of import substitution industrialization that prompted rapid expansion of Argentinean urban working class. From 1932 to 1943 quick urbanization and industrialization in Argentina alienated the expanded already working class from the rest of society, and this process prepared the ground for the social crisis. The military takeover changed the situation radically by giving the power to the military group and their leader Col. Juan Domingo Pe rà ³n ( 1891-1974).Col. Juan Domingo Perà ³n became the next major populist leader in Argentina. According to the article Populism and Its Legacies in Argentina authored by Joel Horowitz, Peron can be described as â€Å"a tall, commanding figure and a powerful speaker, had the ability to charm people and win them to his side. He was one of those rare politicians imbued with genuine charisma.†[6] He, like his predecessor Hipà ³lito Yrigoyen, also turned to working class, though strengthened his power with the help of the army. In late 1943 Perà ³n was appointed to occupy the position of vice president and minister of war. In October Perà ³n already became head of the National Department of Labor, which served as a platform the implementation of his approaches to labor, setting contacts with unions and winning over the hearts and minds the working class of Argentina.The policy of Col. Juan Domingo Perà ³n had two directions: first, Perà ³n favored and assisted many units to accomplish the major part of their long-sought goals; second, he started repression against uncooperative organizations. As a result of a pro-labor direction, the government enforced labor laws, such important ones as making contracts with workers, for the first time in the history of Argentina. It balanced the powers of capital and labor in the country, increased wages and improved the organization of unions.On the other hand, Peron fought his rivals by using repression, which made his regime completely authoritarian. The leaders of Socialists and Communists had to live under the constant threat of being arrested. In order to survive, other political forces, for example, the Communist Party, had to go underground. The rivalry with Communist unions was supported by the government, which also prohibited cooperation with them. As a result, such important unions as textiles, meatpacking, and the metal trades were destroyed.Peron personally appealed to unions. His charisma always he lped his to achieve a desired effect. Peron stressed the importance of the unions while speaking to them: â€Å"I come to the house of the railroaders as if it were my own. I profess a profound gratitude to them, because I am convinced that many of the successes of the Secretariat . . . are due precisely to the railroad workers.†[7] In his speech, Peron presented himself as one of the workers, as their equal, and frequently emphasized how he cared about them. This approach was successful, since workers had been socially and politically isolated by the previous regime.Still, according to Horowitz, Peron ca not be viewed as a dictator. He was truly a populist, and the methods of repression can be explained by his desire to expand his bases of support.[8] An important reason of why Peron achieved enormous popularity in his country, as Horowitz states, was the fast economic growth. It was estimated that during the first years of Peron’s presidency, hourly wages grew 25 per cent more, and in 1947 increased almost at the same rate. The percentage of national income that was going to workers also went up 25 percent. However, some sectors, for example, agriculture, did not benefit from the populism of Peron. Agriculture was squeezed for the sake of the urban sectors, the economy of which showed the highest rates of growth in 1946 and 1947. Nevertheless, in 1948 the economy of Argentina started to deteriorate.Peron’s populism improved political and social status of women in the country. In 1947 women of Argentina received the right to vote due to the activity of Peron’s wife – Evita. Evita initiated the campaign for women's suffrage. She also created a separate Peronist woman's party in Argentina, the leader of which she soon became. Women’s branches stretched across and soon captured the whole country. This was one more factor that encouraged popularization of Peron in Argentina, for â€Å"When Perà ³n ran for reelection in 1 951, he received a much higher percentage of votes from women than from men.†[9]Among other things, populism in Argentina was established on media. Peron managed to set a cultural hegemony that revised Argentina's vision of itself. Bearing in mind political influence of media, cultural hegemony was highly important although very difficult, since the movement of populism did not have any consistent ideology. Rituals were reformed and gained a â€Å"Peronized† meaning, for example, the celebration of May Day became an important national holiday to emphasize the benefits of hard labor and the role of the working class. Generally, all the holidays were invented to provide the idea of harmony and prosperity that existed under Perà ³n. School curricula focused on Catholic values. Many provinces and cities in Argentina were named after Perà ³n. Monuments to the charismatic leader were erected all over the country.Like in Argentina in 1930, the need to install a new regime in Peru was evoked by the situation brightly characterized by Steve Stein in The Paths to populism in Peru: â€Å"The old regime could no longer respond to the powerful social and economic changes brought on by urbanization after World War I. This was especially true in and around the capital of Lima. The old political elite was morally and politically bankrupt.†[10] But unlike the movement in Argentina, populism of the thirties in Peru consisted of two competing with each other populist movements: the party of Luis M. Sà ¡nchez Cerro and Và ­ctor Raà ºl Haya de la Torre who was the leader of the APRA party.The period of the thirties was marked in Peru with significant growth of the working classes political activity. This situation differs from that of Argentina. Though the working class of Argentina also increased in number in the same period, it suffered greatly from political and social isolation. The working classes of Peru were more active: â€Å"working-class mobs st aged demonstrations and rioting that destroyed his residence and those of some prominent supporters. During subsequent months the working classes dominated the urban political scene.†[11] Also, unlike the experience of populism in Argentina, Peru’s first notable steps in this policy and the first prominent populist leaders appeared only in 1930, which was much later than in Argentina.Like the political situation of Argentina in 1930, populism of Peru came to power due to political crisis. However, the crisis of Peru was much deeper, that even the further existence of the nation was doubted. One of Peruvian generals described the climate of despair and fear that intensified with the fall of Repà ºblica Aristocrà ¡tica: â€Å"Although it is painful for us to confirm it, unfortunately it appears as if a streak of ignorance, of madness, has invaded us, wresting from us our most innermost feelings of nationality.†[12] Conservative politician Và ­ctor Andrà ©s Bela à ºnde deplored that â€Å"the very bases of civilized life threaten to disappear.†[13] All these words referred to crisis, collapse and the following political vacuum, which occurred due to the fall of the elite-controlled political system of Repà ºblica Aristocrà ¡tica that had been in power since 1895.The two populist movements Sà ¡nchezcerrismo and Aprismo (APRA) were headed by Sà ¡nchez Cerro and Haya de la Torre and came to Peruvian government through elections in 1931, which was a more civilized way in comparison with that of Peron’s. Mainly, the movements did not differ from each other. They both were vertical, patrimonial, with the relationships which were built on loyalty between leaders and their followers. The members of the parties were accepted from all the levels of society, which also contrasts with an anti-bourgeoisie, anti-elite and anti-oligarchic character of Argentinean populism.However, unlike that of Sà ¡nchezcerrismo, the vertical structur e of ARPA was based on strong ties between some social groups: the head of the party and unions, professional or employee associations. The leader of Sà ¡nchezcerrismo, Sà ¡nchez Cerro, on the other hand, tried to avoid any references to recognized social l or occupation categories, stressing on principle of one-to-one commitment to each member of the party.Sà ¡nchez Cerro, like Peron, also understood the importance of the working class and tried to take a pretense of friendship with common people. Luis M. Sà ¡nchez Cerro used his ethnic identity of a dark-skinned mestizo to show that he had common origins with masses. Since historically racism had a strong impact on political, social, and economic relations in Peru, Cerro’s image of the racial outsider became a powerful tool for gaining more support of the working-class. One of Cerro’s working-class followers once said: â€Å"He was of our race, and because of that all us working people supported him.†[14]T he image of the cholo candidate brought another advantage to Sà ¡nchez Cerro. The masses’ identification with the friend of common people became persuasive for the theme of his campaign: everyone could approach Cerro and personally ask to help or to do an individual favor. As a result, poor voters and supporters flooded Sà ¡nchez Cerro’s campaign headquarters. The availability of Sà ¡nchez created the notion that he was generous and willing to help everybody. Cerro patted his poor supplicants on the back, sometimes gave them money from the pocket or an article of clothing. Cerro spoke to his followers in simple language and used familiar forms ‘tu†, saying: Toma hijo, toma hija. Hijito, hijita, sà ­, ya vamos a ver † (Take this son, take that daughter. My little son, my little daughter, yes, we'll look into that).[15]At the same time, Haya de la Torre adopted the role of â€Å"the father of the workers.† When the campaign for the 1931 elect ion started, la Torre became known as the father of APRA. As a result, his children were growing in numbers, as Stain put it, â€Å"far beyond a small group of union leaders, and high stakes were to be won in the election.†[16] The image of father taken by la Torre matched his contagious smile, personal warmth, and generally pleasing disposition. During his person-to-person conversations Haya revolved around daily problems of his voters, and always showed his sympathetic understanding and his readiness to help with pertinent advice.Even the enemies of Haya de la Torre could not help but envy Haya’s skills of physical expression. Eudocio Ravines, leader of communists once remarked: â€Å"He possessed an ingenious and friendly loquacity that gave people the physical sensation of being loved, set apart individually from among the rest. He was acute at discovering and focusing on the immediate and small problems of the people and treating them with a captivating friendlin ess, verbally showing interest in them.†[17]In 1930-1931 real or imagined access to the populist leaders in Peru attracted poor people to them who sought protection of the politicians from adversary and crisis. The Great Depression became such a crisis that worsened the condition of the poor. On the background of the deepening impoverishment of the workers, populist leaders Sà ¡nchez Cerro and Haya de la Torre were seen as generous figures who could help and protect them. So, as historians concluded, â€Å"far from radicalizing the Peruvian working classes, the depression drew them toward populist alternatives as the most faithful political embodiment of patrimonial social relations.†[18]After the military had cut short the populism of Haya de la Torre and Sà ¡nchez Cerro by suppressing their movements, the overtones of populism were present in later campaigns and political movements. The next eight years were governed by Odrà ­a, whose political style strongly resem bled that of Sà ¡nchez Cerro. Odria concentrated his attention on the rural poor that streamed into the capital in order to find jobs and charity. The president decided to develop a chain of ‘political charities’ to become popular among the impoverished people of the city. President’s wife Marà ­a Delgado de Odrà ­a frequently but very effectively paid visits to the slums, gifting poor with money and food, which soon was highly publicized. However, Marà ­a’s actions were disdained by the elite who claimed that they were just blatant imitations of Eva Perà ³n.Odria showed paternalistic approach in his policy when he ordered legalization and formation of squatter settlements of the growing lower-class population in Lima. Consequently, an impressive number of popular masses paid homage to president and his wife. The largest plazas of Lima became the places of pro-government demonstrations. In this case the respect the poor can be regarded as their paybac k the man who understood and treated benevolently their needs. This positively characterizes populism both in Argentina and Peru, because, in spite of the fact that the initial reasons of the politicians were quite pragmatic, the disadvantaged and the most impoverished of the country received warmth and saw the kindness which, probably, gave them hope for better life.The next populist in Peru Belaà ºnde evidenced his friendship with nation through the foundation of the National Front of Democratic Youth (FNJD). The supporters of Belaà ºnde, unlike the campaigns of the previous politicians who turned to lower circles of society, were among professionals students, and intellectuals. In addition, the hallmark of Belaà ºnde was dramatic symbolism, used in word and in action. Once, when the demonstration in his support was met by the police, ready to disperse the participants, he bravely tried to withstand the armed forces. Later it matched the symbolism of Belaà ºnde’s first message during the campaign in 1956: â€Å"Youth! That is the battle cry of the political campaign I have been invited to embark upon. . . . If I am needed in the moment of conflict, they will find me at their side, sharing their fervor and living their hopes with them.†[19]Nevertheless, when Belaà ºnde won the elections, his government showed reluctance to fulfill rhetoric and high-flown promises. For example, Belaà ºnde declared that all the lands would be affected by the new agrarian reform project. Instead, he exempted properties needed to make ‘industrial transformation of agricultural products.’ It resulted into the situation when all the valuable and significant land such as coastal sugar or cotton plantations was not available for the purposes of the redistribution program. Ultimately, the gap between words and actions disillusioned the masses and led to the failure of his populist policy. In 1969 Belaà ºnde was overthrown by military forces and the ne w Revolutionary government was installed in Peru.In general, paternalism and comforting of populist political leaders have always worked like societal narcotic in Argentina and Peru. Quite a paradoxical situation could be observed when the poor and desperate continue to vote for populist leaders whose democratic credentials are suspect. Later the populist policies of these leaders will hurt the very groups that vaulted them into office.   In Peru Alan Garcà ­a who wonderfully articulated his nationalist and anti-imperialist views caused the crisis of Peru’s economy. During Garcia’s five years of presidency from 1985-1990, Peru’s economy achieved the highest inflation levels of the history of the country. Due to the policy of Garcia, millions of Peruvians were impoverished; millions moved from poverty into extreme level of poverty. Thus, populism of Alan Garcà ­a promised Peru greatness but in reality ran the country into poverty, high inflation and even more misery.A key legacy of populism was in leadership style. The leader, irrespective whether he was in power or stayed abroad in exile, dominated his party. There could be internal struggles or conflicts within the party, but once they were settled by the leader, this became an unchangeable rule for the rest of the members. For example, in Peronist Party the role of caudillo was played by two men: Juan Perà ³n and Carlos Menem. Within the Radical Party, on the other hand, every leader retained his style and continued to dominate even when his popularity faded. Thus, the authority and strong positions were preserved by the following members of the Radical party: Hipà ³lito Yrigoyen, Marcelo T. de Alvear, Ricardo Balbà ­n and Raà ºl Alfonsà ­n. Even when the parties modernized their politics and adopted such attributes as conventions, the domination of their strong-willed leaders continued.The common tendency that populist leaders relied on support of army inevitably led to the exp ansion of the political role of the military in Peru to a higher rate than in Argentina. As it has been already shown in the paper, Peruvian armed forces were involved in most of political conflicts, which evidenced the removal of the army from its normal professional responsibilities. This tendency was not abandoned by neo populists, for instance, Fujimori used military support in his presidential coup to ensure success of it. In addition, Fujimori’s shadowy intelligence advisor implemented his considerable behind-the-scenes power while the presidential campaign. Thus, populism prompted the process of politicization of army. Dr. Kenneth Roberts in his work Populism and Democracy in Latin America pointed out that â€Å"A politicized military is necessarily a political actor that will be sought out by potential civilian allies and tempted to intervene on behalf of its own institutional or political interests.†[20]Thus, the main points of development of populism in Argen tina and Peru can be summed up, compared and contrasted in the following way:1.  Ã‚  Ã‚  Ã‚  Ã‚   Populism was first used as a policy to gain support in Argentina.2.  Ã‚  Ã‚  Ã‚  Ã‚   Populism has been bipartisan.3.  Ã‚  Ã‚  Ã‚  Ã‚   Populism has existed in both democratic and undemocratic regimes. In the case of Argentina the ruling of Juan Peron in the mid of twentieth century was undemocratic, while Peru’s leader Alan Garcia in the 1980s attempted to carry out populist policy together with the democracy4.  Ã‚  Ã‚  Ã‚  Ã‚   Commonly, populism was implemented by ambitious leaders to succeed in their political careers.5.  Ã‚  Ã‚  Ã‚  Ã‚   In both Argentina and Peru populism was successfully carried out by charismatic individuals who managed to appeal directly to the mass groups, for example, labor unions, the poor, and mobilize their political participation.6.  Ã‚  Ã‚  Ã‚  Ã‚   In both the countries the leaders who started the policy of populism promised to defend the interests of the â€Å"common people† by giving them jobs. In return, the masses support the leaders with their votes and social mobilization. In other words, promises, rhetoric comfort and pompous words are the tools of populists for capturing trust and votes of the masses. As Josà © Marà ­a Velasco Ibarra, the Ecuadorian populist put it: â€Å"Give me a balcony and the people are mine.†[21] As a rule, lofty promises of populism rarely come true, hurting by this most of the people that it claimed to represent.7.  Ã‚  Ã‚  Ã‚  Ã‚   Political careers of individual leaders built on populism always progress at the expense of economic growth of the country. Political leaders while fulfilling their lofty promised services roughly intrude into economic processes by implementing for example, expansionary monetary or fiscal policies, to produce an â€Å"economic miracle† for a short period of time. Ultimately, artificially created fast progress and breaking basi c economic principles and laws lead to economic collapse. Thus, the ambitions of populists always rebuff the well known truth that â€Å"there is no free lunch.†8.  Ã‚  Ã‚  Ã‚  Ã‚   On the other hand, it would be wrong to conclude that populist governments always failed to manage economics. In the 1990s Argentine president Carlos Menem’s attempted to create a free market â€Å"miracle† that totally eliminated the hyperinflation in the country’s for a short period of time. But Carlos Menem’s â€Å"miracle† was grounded on the unsustainable accumulation of public debt, which in 2001 sent Argentina’s economy into a new depression.9.  Ã‚  Ã‚  Ã‚  Ã‚   In both Argentina and Peru military forces were involved into political conflicts, but Peruvian populism caused politicization of army.10.   Peron in Argentina was the first to use media as one more force of propaganda of populist ideology.11.   Methods and political styles of leader ship varied in Argentina and Peru and improved with the progress of the movement. However, Argentinean Hipà ³lito Yrigoyen built the mechanism of populism at the beginning of the century. Also, some gestures and approaches used in one country were repeated or imitated in the other, for example, the charity of Evita and Marà ­a Delgado de Odrà ­a, ect.Bibliography:1.  Ã‚  Ã‚  Ã‚  Ã‚   Auguero, Felipe and Jeffrey Stark, eds. 1998. Fault Lines of Democracy in Post-Transition Latin America (Miami:University of Miami North-South Center Press).2.  Ã‚  Ã‚  Ã‚  Ã‚   Bamrud J. Contesting the ‘Washington Consensus’. The Latin Business Chronicle. Worldpress.org. February 25, 2002   http://www.worldpress.org/Americas/379.cfm (26 Nov 2005)3.  Ã‚  Ã‚  Ã‚  Ã‚   Cardoso, Fernando Henrique and Enzo Faletto. 1979. Dependency and Development in Latin America (Berkeley:University of California Press.4.  Ã‚  Ã‚  Ã‚  Ã‚   Carol Wise, Reinventing the State: Economic Strategy and Institutional Change in Peru, forthcoming. Chap.6   NEOLIBERALISM AND STATE RECONSTRUCTION 2001 (26 Nov 2005)5.  Ã‚  Ã‚  Ã‚  Ã‚   Chalmers, Douglas A., Scott B. Martin, and Kerianne Piester. 1997. â€Å"Associative Networks: New Structures ofRepresentation for the Popular Sectors?†, in Douglas A. Chalmers, Carlos M. Vilas, Katherine Hite, Scott B.Martin, Kerianne Piester, and Monique Segarra, eds. The New Politics of Inequality in Latin America:Rethinking Participation and Representation (Oxford: Oxford University Press).6.  Ã‚  Ã‚  Ã‚  Ã‚   Collier and Collier. 1991. Shaping the Political Arena: Critical Junctures, the LaborMovement, and Regime Dynamicsin Latin America (Princeton: Princeton University Press).7.  Ã‚  Ã‚  Ã‚  Ã‚   Conniff Michael L., Populism in Latin America, University of Alabama Press. Tuscaloosa, AL.: 1999.,8.  Ã‚  Ã‚  Ã‚  Ã‚   Conniff, Michael L., ed. 1982. Latin American Populism in Comparative Perspective (Albuquerque, NM: Universityof New Mex ico Press).9.  Ã‚  Ã‚  Ã‚  Ã‚   Crandall R. Latin America's Populist Temptation. In the national interest. The National Interest, The Nixon Center. (26 Nov 2005)10.   De la Torre, Carlos. 2000. Populist Seduction in Latin America: The Ecuadorian Experience (Athens, OH: OhioUniversity Center for International Studies).11.   Dornbush, Rudiger and Sebastian Edwards, eds. 1991. The Macroeconomics of Populism in Latin America (Chicago:University of Chicago Press).12.   Drake, Paul. 1982. â€Å"Conclusion: Requiem for Populism?†, in Michael L. Conniff, ed. Latin American Populism inComparative Perspective (Albuquerque, NM: University of New Mexico Press).. 1991.13.   Drake, Paul. 1982. â€Å"Comment,† in Rudiger Dornbusch and Sebastian Edwards, eds. The Macroeconomics of Populism inLatin America (Chicago: University of Chicago Press).14.   Geddes, Barbara. 1994. Politician’s Dilemma: Building State Capacity in Latin America (Berkeley: University ofCaliforn ia Press).15.   Hagopian, Frances. 1998 â€Å"Democracy and Political Representation in Latin America in the 1990s: Pause,Reorganization, or Decline?†, in Felipe Aguero and Jeffrey Stark, eds. Fault Lines of Democracy in Post-Transition Latin America (Miami: University of Miami North-South Center Press).16.   Hochstetler, Kathryn. 1997. â€Å"The Evolution of the Brazilian Environmental Movement and Its Political Roles,† inDouglas A. Chalmers, Carlos M. Vilas, Katherine Hite, Scott B. Martin, Kerianne Piester, and MoniqueSegarra, eds. The New Politics of Inequality in Latin America: Rethinking Participation and Representation(Oxford: Oxford University Press).17.   Kay, Bruce H. (1996). â€Å"`Fujipopulism’ and the Liberal State in Peru, 1990-1995,† Journal of Interamerican Studies and World Affairs 38, 4: 55-98.18.   Keck, Margaret E. and Kathryn Sikkink. 1998. Activists beyond Borders: Advocacy Networks in InternationalPolitics (Ithaca, NY: Corne ll University Pres).19.   Knight, Alan. 1998. â€Å"Populism and Neopopulism in Latin America, Especially Mexico.† Journal of Latin AmericanStudies 30, 2 (May): 223-248.20.   Levitsky, Steven. 1998. â€Å"Crisis, Party Adaptation and Regime Stability in Argentina: The Case of Peronism, 1989-1995.† Party Politics 4, 4: 445-470.21.   Lynch, Nicolà ¡s. 1999. â€Å"Neopopulismo, Un Concepto Vacà ­o.† Socialismo y Participacià ³n 86 (December): 63-80.22.   Mackinnon, Marà ­a Moira and Mario Alberto Petrone, eds. 1998. Populismo y Neopopulismo en Amà ©rica Latina: elProblema de la Cenicienta (Buenos Aires: Editorial Universitaria de Buenos Aires).23.   Mair, Peter. 1997. Party System Change: Approaches and Interpretations (Oxford: Clarendon Press).24.  Ã‚  Ã‚   McGuire, James W. 1997. Peronism without Perà ³n: Unions, Parties, and Democracy in Argentina (Stanford, Cal.:Stanford University Press).25.   Roberts K. Populism and Democracy in Latin Amer ica,World Politics 48, 1 (October): 82-116. p.16[1] Bamrud J. Contesting the ‘Washington Consensus’. The Latin Business Chronicle. Worldpress.org. February 25, 2002 < http://www.worldpress.org/Americas/379.cfm (26 Nov 2005) [2] Conniff Michael L., Populism in Latin America: Joel Horowitz, Populism and Its Legacies in Argentina, University of Alabama Press. Tuscaloosa, AL.: 1999., p. 22 [3] Conniff   Michael L., Populism in Latin America, p. 22 [4] Conniff   Michael L., Populism in Latin America, p. 25 [5] Conniff   Michael L., Populism in Latin America, p. 25 [6] Conniff   Michael L., Populism in Latin America, p. 29 [7] Conniff   Michael L., Populism in Latin America, p. 31 [8] Conniff   Michael L., Populism in Latin America, p. 34 [9] Conniff   Michael L., Populism in Latin America, p. 36 [10] Conniff Michael L., Populism in Latin America: Stein S. The Paths to Populism in Peru, University of Alabama Press. Tuscaloosa, AL.: 1999., p. 97 [11] Conniff    Michael L., Populism in Latin America, p.98 [12] Conniff   Michael L., Populism in Latin America, p.98 [13] Conniff   Michael L., Populism in Latin America, p.98 [14] Conniff   Michael L., Populism in Latin America, p.100 [15] Conniff   Michael L., Populism in Latin America, p.100 [16] Conniff   Michael L., Populism in Latin America, p.101 [17] Conniff   Michael L., Populism in Latin America, p.102 [18] Conniff   Michael L., Populism in Latin America, p.106 [19] Conniff   Michael L., Populism in Latin America, p.107 [20] Roberts K. Populism and Democracy in Latin America, p.16 [21] Crandall R. Latin America's Populist Temptation. In the national interest. The National Interest, The Nixon Center. (26 Nov 2005)

19th Century industrial leaders Essay

Many have debated that the industrial leaders following the 19th Century were â€Å"Robber Barron’s†. However, in this very competitive time period, many new businesses were being formed. It took talented businessmen such as Vanderbilt, Carnegie, and Rockefeller to get ahead and keep the companies running, building America into what it is today, the most powerful nation in the world. Cornelius Vanderbilt (1794-1877) was a classic Market Entrepreneur, succeeding by creating and marketing a superior product at a low cost. He was a key figure in breaking the steamboat monopoly in the waters around New York City; in the transatlantic steamship business; in the east coast to west coast steamship business; and the builder of the New York Central system, which, in effect, replaced the Erie Canal. Vanderbilt set the example for future â€Å"Industrial Statesman† by hard work and dedication; being fiercely competitive, willing to cut prices to get business; reliability, meaning repeat customers; the ability to master the details of a new business and to act boldly when necessary. When he died he was the richest man in America ($105m) and he left a high quality quadrupled track railroad that played a key role in the development of the Midwestern United States. See more: Satirical essay about drugs In 1873, Andrew Carnegie (1835-1919) became convinced that the future of industry was in the manufacture and use of steel. Concentrating on steel production, he began his acquisition of firms, which were later consolidated into the Carnegie Steel Company. His success was due in part to efficient business methods, to his able lieutenants, and to close alliances with railroads. By 1900, the Carnegie Steel Company controlled iron mines, coke ovens, ore ships, and railroads. It was these circumstances that the U.S. Steel Corp. was formed to buy Carnegie out. In 1901 he transferred possession for $500 million, the largest personal transaction ever made, and retired from business. Carnegie believed that the wealthy had an obligation to give back to society, so he donated much of his fortune to causes like education and peace. John D. Rockefeller (1839-1937) was the guiding force behind the creation and development of the Standard Oil Company, which grew to dominate the oil  industry and became one of the first big trusts in the United States. Rockefeller was naturally cautious and only undertook a business venture when he calculated that it would be successful. After he carefully weighed a course of action he would then act quickly and boldly to see it through. He had iron nerves and would carry through very complicated deals without hesitation. This combination of caution, precision, and resolve soon brought him attention and respect in the industrial community. Rockefeller also was one of the first major philanthropists in the U.S., establishing several important foundations and donating a total of $540 million to charitable purposes. â€Å"Robber Barron’s† to those who didn’t reap the benefits of these industrial empires but these â€Å"Industrial Statesmen† knew what it took to succeed in business. Each had their own characteristics that enabled them to make tough decisions and beat the competition. That Competition has inspired the businessmen of today, and fueling today’s industry and technology.

Hyundai case study Example | Topics and Well Written Essays - 250 words

Hyundai - Case Study Example Hyundai Motor Company is considered one of the best performing motor companies even in the face of the effects that followed recession. Factors of success within the firm which has beaten fort to take the fourth place in the motor industry applies strategies like the implementation of strong leadership and the continuous introduction of new models in the market to suit the preference of consumers within the different markets (Schmitt). Even with the likes of competitors like Tata and General Motors, among other, Hyundai has managed to do well in markets like Korea and other international markets in spite of having greater production capacity than their sales capabilities. Hyundai’s success is also attributed to their sensitivity to opportunities, say to the diversity that exists within the Middle East and their efforts in partnering with other firms. Their affiliation with Guangzhou Motor Group, in the year 2002, for instance, helped boosts the level of sales within the firm a nd therefore its overall performance (Yeats 54). The firms focus on producing the right products for the markets has also been of essence in helping Hyundai succeed like it has at the global levels. Basically, the demands of the consumers govern the ways by which the firms produce their automobiles. For example, the extremely high quality demand by the Korean populace has all through the time, made the company centre on always producing the best quality products for the markets (Davidson and Goldsmith 34). The stringent competition that exists from other car makers has also forced the firm to continually improve on all the aspects of production (Hyundai Motor America). The firm has even been ranked as the best in terms of customer satisfaction. Hyundai Motor America. Hyundai Motor America Reports Record January Sales. N.d. Web. February 27, 2012. Schmitt,

A REFLECTIVE ACCOUNT RELATING TO A 15 YEAR OLD FEMALE PATIENT Essay

A REFLECTIVE ACCOUNT RELATING TO A 15 YEAR OLD FEMALE PATIENT PRESENTATION FOCUSSING ON PHYSICAL EXAMINATION AND MANAGEMENT OF A SELF-LIMITING CONDITION - Essay Example Accurate and thorough assessment, from health history to performing a physical exam, can help uncover facts that help clinicians develop the right care plan (Rushforth, 2009). The patient’s appearance was examined. There were some signs of worry on her face but she did not seem to be in immediate pain. The nurse asked general questions about urination such as ‘how often do you go?’ or ‘do you wet yourself involuntarily?’ (Bickley & Szilagyi, 2012, p. 445). When the author questioned her about the details she replied that it only hurt while urinating. Pain while urinating can be from the kidney (loin pain), ureteric colic or coming from the bladder (Douglas et al. 2009). In children over 2 years of age dysuria and suprapubic, and abdominal pain are the most common presentation of a UTI (patient.co.uk). Questioning her revealed that it was abdominal pain. A urinary complaint of this sort in children indicates dysuria, dysfunctional voiding, foul smelling urine, cloudy urine, enuresis or haematuria (Chiocca, 2010). Children with signs of and symptoms suggestive of UTI should have their urine tested (NICE, 2007). Initial management must include an accurate diagnosis of UTI from an appropriately obtained urine sample (Potts, 2012). The nurse explained to the patient that he will have to conduct an inspection and physical examination to diagnose the cause of urinary pain. Preparing for a physical examination includes a cosy and comfortable environment (Chiocca, 2010). Inspection consists of visual examination of the abdomen (Walker et al., 1990). The nurse explained that it is performed to look for skin abnormalities, abdominal masses and abdominal wall movement due to respiration (Walker et al., 1990). The child is undressed to examine the complete abdomen (Chiocca, 2010). Auscultatio n, percussion and palpation are the regular tests for abdominal assessment (Chiocca, 2010). The nurse explained to the patient that auscultation of abdomen is

Energy sources and the interchangeability of energy, propose a Essay

Energy sources and the interchangeability of energy, propose a replacement for fossil fuels (petroleum, coal, natural gas), as - Essay Example Each source has its own characteristic significance and one needs to identify its suitability based on local possibilities and circumstances (Renewable energy sources in the United States 2011). Hydropower Hydropower means using water to produce electricity. This is a clean way of producing electricity. Small and big dams both can be used to turn turbines. Hydropower is suitable where ever flowing waters from rivers are available. Currently, around 7% of the electricity in the US is produced by hydropower sources. Major hydropower projects in the US are located on the Colorado River, the Tennessee Valley. Solar Energy Sun is the most potent source of renewable energy. Efficient solar technologies can give the most viable solution to the world energy needs. Technologies to harness this particular source are advancing rapidly. In the US, summer is the most appropriate season to harness solar energy due to longer daylight hours and a high angle. California State in the US boasts several solar installations and solar energy so harnessed is clean and nonpolluting. Wind Power Wind is yet another renewable source of energy that is clean and available most part of the year. Coastal regions where wind velocity is greater than normal are most suitable for Wind turbine installations. The western part of the US is the most potential region where winds velocity is high. Wind turbines are usually installed at higher altitudes to harness continuous but less turbulent stream of winds. Currently, wind energy meets only 1 percent of the total energy needs of the country but its use has been rising rapidly. Geothermal Power Geothermal source of energy uses Earth's heat to produce electricity. Geothermal source of energy is available continually in certain regions of the US and it is based on the premise that temperature inside our earth is fairly constant throughout the year. The various technologies are in use and those can be described as geothermal heat pumps, deep reservoirs and direct-use systems. Geothermal power plants recover heat from water or steam to convert it into electricity. Heat pumps are used for heating purposes at residential and commercial buildings. Binary-cycle geothermal power plants can use water with even moderate temperatures – in the range of 38 to 149 degree centigrade; thus, it has been economical to harness this clean source of energy. Nevada, Hawaii, Utah and California in the US are known to have geothermal power plants in operations. Biomass Power Biomass or Biopower is the second largest source of energy among renewable in the US. Available biomass such as grassy or woody plants, food crops, residues from farms, organic wastes obtained from municipalities and industries are used as direct heating or to produce electricity. Since Biopower is available from plant sources, it can be produced in any part of the country. Biomass self-balances carbon release in the environment hence is nonpolluting. A Clear Case of Respons ible Stewardship and Integrity While buying fossil fuels, one is paying only for a commodity and does not compensate for environmental degradation and health damages caused to fellow citizens. Using any of the renewable sources of energy and discarding the use of fossil fuels firmly establishes that we not only respect our environment but are deeply concerned with preserving the same for our future

An Interpretation of Chris Ofili's Afrodizzia Essay

An Interpretation of Chris Ofili's Afrodizzia - Essay Example To comprehend Chris Ofili’s work and interpret it in a fair manner, we have to identify styles that are consistent with his work. Ofili’s work is recognizable by the layered surfaces of different materials. He borrows from the works of other artists and incorporates them into his work. An example is the way he uses the cut out of photographs from magazines. Another feature common among Ofili’s work is the size of his paintings. He does most of his work on six by eight feet canvases. Not that size means anything significant but I choose not to ignore it as a factor in the interpretation of his work. In my opinion, he desires to â€Å"magnify† the message in his works. I will give the example of his controversial painting the â€Å"Holy Virgin Mary† which has had its admirers and condemners. The work was a brazen play on religion and it could not be ignored largely because of its depiction of the Black Madonna. I argue that the size of that painting w as an intention to magnify that depiction as with all other Ofili’s paintings. Lastly, Ofili uses cow dung in most of his exertion. He said that the elephant dung was inspired by his visit to Zimbabwe during his masters at the Royal College of Art. He saw cave paintings which inspires his styles including his use of dung. He has often contended that the dung is meant to bring out the â€Å"ugliness† of the beauty of his paintings. It is important to note that Mr. Ofili derives his inspiration to make art from the social and political events affecting him or the community in general. Most of his paintings document the issues affecting black people between the 70s and 90s. An example is â€Å"No Woman No Cry† which was inspired by racism against black in Britain. In his paintings also, Ofili asserts his thoughts on religion, popular culture and music (hip hop). The â€Å"Holy Virgin Mary† is a good example of where Ofili makes a bold but humorous statement on the Roman Catholic faith (Kleiner, 2008, p. 55). â€Å"Afrodizzia† looks like a jewel. The medium used in the base composition of the painting is acrylic paint with oil resin, glitter, paper collage; map pins and elephant compost. The collage, the paint and the lines drawings in the piece make it quite a sight. Ofili has used red, yellow and orange colors in the painting to signify energy, excitement and radiance. These are the same words that could be used to describe the color scheme. The white background of the painting is a probable allusion to a clean sheet that will be â€Å"stained† by elephant dung. The introduction of green and blue colors creates a clash that can be directly interpreted to signify Ofili’s search for identity. Color in art speaks of the mood of the piece in study. Ofili’s decision to use many colors in an unspecified pattern shows a clash of emotions, identity and character. â€Å"Afrodizzia â€Å"was painted during a period fraught with the outcomes of racial tension in Great Britain. It was completed in 1996, three years after the racist murder of Stephen Lawrence by six white youths (Campbell 1993) and during the Macpherson enquiry into his death. This tension had/has been ongoing since the Brixton riots in 1981 with Macpherson finding that certain institutions in Britain were racist and incompetent. Perhaps, Chris Ofili represented

Paraphrasing report Essay Example | Topics and Well Written Essays - 750 words

Paraphrasing report - Essay Example Designing and assessing PD controller output response features of compensated system requires the estimation of initial features of uncompensated mechanism. The characteristics of a DC motor mechanism can be presented as Obtaining response characteristics involved calculation of the second order approximations and reading the real step response from the MATLAB graph. The resultant equations were fixed to the MATLAB code on the basis of users’ damping ration, dominant pole, p (f), z as well as gain, K. Steady state error was obtained as In the experiment, there is need to determine the point that corresponds to a response outcome bearing 0.5s settling duration. The MATLAB code below can be applied to determine the point ‘zc†, which adds a zero, yielding a new function for transformer Gc(s). The operating point of the compensated system bears a similar damping ration as the uncompensated system. Compensated system portrays more negative real parts compared with uncompensated, thus the settling time for compensated system is shorter. Use G(s) as a function of the uncompensated system to graph root locus and assess where it crosses the ratio line (0.8) from which the gain and selection point, Ps, can be determined. Identify the gain selection point, Po and graph step response using MATLAB then obtain percentage OS, Ts, Tp, ÃŽ ¾, ωn and Kpos. The uncompensated system gain is lower than lead compensated systems while the operating points are similar. The peak times, damping ratio as well as the settling times of compensated system is lower than that of the uncompensated system. The % overshoot is lowered to 0 percent to lead compensated systems from uncompensated. As such, Zc=1.8 increases after the initial lead compensation. The steady-state error is lowered from uncompensated to compensated systems, Zc=-2.5 and increases at Zc= -2.8. Storage tanks are often used for numerous

Ultrasound risk Essay Example | Topics and Well Written Essays - 1250 words

Ultrasound risk - Essay Example These bounce off the baby and the returning echoes are translated by a computer into an image on a screen that reveals the baby's position and movements. Hard tissues such as bone reflect the biggest echoes and are white in the image, and soft tissues appear grey and speckled. Fluids (such as the amniotic fluid that the baby lies in) do not reflect any echoes so appear black. It is the contrast between these different shades of white, grey and black that allows your sonographer to interpret the images.Most parents look forward to their scan because it gives them the first glimpse of their baby. The sonographer will give you an ultrasound report with a printout of your baby's images. Some hospitals may even give a photograph of your baby's images as a keepsake at an additional cost. However, it is important to remember that the main purpose of the scan is not to provide the first photo for your baby album, or to find out your baby's sex, either. It is to check that your baby is growin g and developing normally." (What is an Ultrasound Scan) The risks involved in Diagnostic are believed to be very controversial and the risks involved aren't known completely. This uncertainly makes this whole process a very daunting one for some women. Several authors have written on this controversial subject and concluded that ultrasound has no ill effects; on the contrary some authors have succeeded in proving that this process involves more risks than perceived by the human beings. "Although the effects of ultrasound are still being studied, no harmful effects to either the mother or the baby have been found in over 20 years of use. The long-term risks of ultrasound, if any, are unknown, but there are many benefits." Others warn that it is insufficiently tested, and make comparisons with X-rays and DES, which were once considered safe. The main area of debate is whether ultrasound is being used too frequently in a routine fashion in healthy pregnancies, without thorough enough testing. There may be some association between ultrasound and low birth weight (Blatt). (Altho' this is difficult to prove because the opposite assertion is known to be true: i.e. if there is IUGR (intra-uterine growth retardation) US will be performed more regularly to assess the progress of the baby.) Some people express concern about the heat and cavitation (bubbling in the cells). Others wonder whether routine ultrasound is cost effective, or whether the money involved would be more effectively spent elsewhere." (What are the Risks of Ultrasound) Effects and Mechanisms The study of transducer is pivotal as far as diagnostic ultrasound is concerned, this process is also known as probe or scan-head. The overall clinical quality depends on this scan-head, it is heavily dependent to determine more important things than one. "Modernultrasoundtransducers often contain 128 and in some cases 288 or more elements. It is well known that with time and normal wear and tear, individual elements within the transducerarray can cease working altogether (i.e., dead elements) or demonstrate significantly reduced sensitivity compared to their original specification. Further, these compromised elements (either "dead" or degraded) fundamentally affect the operation of the entiretransducer, and therefore can have a negative impact on clinical results, and potentially, the efficacy of the entireultrasoundstudy.

England and the Crusade Essay Example | Topics and Well Written Essays - 1500 words

England and the Crusade - Essay Example The struggle was between the Muslims and Christians. Each one of them wanted to take full control of Jerusalem, also referred to as the Holy Land. However, in the year 1291, this consistent battle came to an end when the Muslims finally took over Jerusalem. The Roman Catholic Pope was shocked by this defeat and had heart attack that led to his death. From that time, no more war of crusade was seen in Jerusalem (Smith, 1995, p. 66). Pope Urban was depressed to death because he had spent all his time and resources in the crusade. He succeeded in convincing the Roman Christians to join the war. Those who decided to join him were promised a lot of good things. One of such goodies was the forgiveness. Pope Urban had said it in public that anyone who would join the crusade would have all his sins forgiven. On hearing this, many catholic faithful rushed and vowed in public to give their all in the fight. It was during this time that the very Pope also managed to convince and gain the support of other state leaders. Kings from various nations who were members of Roman Catholic and had the same objective agreed to join Pope Urban. These kings provided the Pope with military army and some other forms of support such finance. This is when the big countries like France, England and Germany joined the crusade war (Teall, 1959, pp. 84-95). However, the crusade army did not only cause trouble to the Muslim nations but also to the various countries that they passed through. For example, the crusade carried out by England caused many damages in Sicily and Cyprus. It is thought that some nations joined this movement for their individual gains. They were just hiding in this holy war. The main objective of Pope Urban is also not clearly known. Some scholars tend to argue that his motives were not godly as people may think. They say that he only had personal interests and therefore decided to use the armies of nations such as

Creating Apps - Ethics Essay Example | Topics and Well Written Essays - 750 words

Creating Apps - Ethics - Essay Example Software fall in two categories: system software that include operating systems and all utilities that that enable the computer/electronic device to function ;application system that do the real work for us i.e. word processors.BCS is a regulatory body that sets out the professional standards required and governs the conduct of individuals in the field of I.T in Britain. This paper examines the ethical and privacy issues based on the BSC ethical framework involved in the development of apps (an application system); a project that I am going to undertake. The project that I’m going to undertake will involve designing and developing an app for domestic remote control. In this case I will be involved in the design and development of an app to be stored in a digital device/remote controller that will be used to control the actions of refrigerators/freezers while in the house or even miles away. In the current technological era most refrigerators are controlled manually. Technological inventions in the current generation have improved the quality of life and made life easier and enjoyable. Research is still on to enhance the quality of life even more and each day scientists are coming up with inventions that continue to add quality to life. This project is not an exceptional as I’m going to design an app to be used in form of a remote control device that will enhance the operation of refrigerators. Currently most refrigerators in our houses are operated manually thus inconveniencing persons using them and at times posing ri sks of electric shock. The remote controller that I’m going to develop is going to make it easier and convenient for individuals to use refrigerators and get the most out of them. The app will be used to regulate temperature in the fridge digitally. Temperature is an important parameter that in part determines the performance of refrigerators. Since the main purpose of the fridge is to preserve foodstuff, this remote control will be used

Statement of Purpose Essay Example for Free

Statement of Purpose Essay â€Å"I believe that imagination is stronger than knowledge myth is more potent than history dreams are more powerful than facts hope always triumphs over experience laughter is the cure for grief life is stronger than death. † If you ask me to describe myself I would say that I am pleasant, diverse, and active man. I think one of my most distinguishing characteristics is the diversity of experiences I possess. I am an engineering graduate with a flair for management. I also have a passion for traveling and exploring different cultures of the world. All these elements have helped me develop a very broad outlook, with varying degrees of knowledge in a range of topics. As a freshman at the undergraduate level, I chose my major in Electrical Electronics Engineering to ensure a sound technological base. It was in my third year of graduation in Engineering that I was able to touch upon subject like Industrial and Organizational Management, which stimulated my interest towards management. Professional experience has helped me fortify my conclusion that Management science is a major part of the industry and it plays a polar role. After completing my Engineering from Cochin University of Science Technology, Kochi; which is amongst the best institutes of technical education in India, I joined in as a Project Engineer in Wipro Technologies Ltd. To get a feel of corporate management and to know what it takes to become a successful manager before opting for a career in the field. My desire to know more of the big world of managers saw me carefully observing what makes the decisions of the managers, who manage the companies, more successful pragmatic. I realized that experience did play a major role in their success, but what was more important was that they came from recognized schools of business. Their decisions were based on simulated conditions in classroom discussions and on the basis of their peer’s experiences that were also shared in the class. This made my determination towards doing management stronger very soon, it became a passion and to this end, I have decided to apply to your University. At Wipro, I joined as a Software Testing Engineer and worked for Clients like Yell Group, The Convergys and my current assignment is with the British Telecom. While the first two projects dealt with SAP SD and HR module testing, my current project is a Telecom Domain Project. Apart from all the Technical stuff, I had the passion for learning the management skills from my Leads and Manager. I would note down the positive points of my senior leads and managers and even the ones where things could have been done better while they were handling the projects and the people involved. I had the passion for learning people skills from them. I had the opportunity to lead a small project with a group of five and with all my leanings I was able to make that project a successful one with appreciation mails pouring in from my clients and senior management of my company. I learnt a lot in my project while leading the group of 5. Although it was not so easy; I did my best to shoulder my responsibilities well. I had a passion for People Management, Human Resource Management and Keenly observing People behavior right from my early school days. I would get involved in organizing and volunteering various cultural activities in school, college and even in my society where I resided. I would love to meet people from different parts of the world and befriend them in no time and they would love to be in my company. At the back of my mind I always wanted to do something bigger, some thing with which I would have an impact on the whole world. I want to make a difference in the quality of Lives in the people across the globe and a positive difference to the organization I work with. I used to see people dissatisfied with their job, some had issues with their salary structure, a few had issues with the management then some one was dissatisfied with their work timings. This behavior of working people propelled me to have some experience at work and then only I would understand their problems in a much better way. For reaching to my dreams I needed to start with a globally with a well established organization and luckily I got selected in the campus interview at my college during my engineering. Working with Wipro Technologies for over 2 and a half years gave me a little insight into the corporate world ethics which went through various phases including the Recession Period when the market was on a low and it was tough to sustain your job. I keenly observed the behavior of employees and the management during recession. The results were not encouraging as the employee management relation was deteriorating day by day during this economically hit period. I want to make a difference to the organization I work with in y future even during the economic slowdown. I am passionate about all my dreams in making it true. However I do need help to shape myself to the best ever manager with which I could make differences to the quality of lives of the people and companies across the globe. Pursing a MSC in Human Resource Management and Business degree became inevitable for me as it was my path to future career so decided to do my Masters from Aston University which provides a quality education. The UK higher Education system combines the best elements of tradition and modernity. The quality of UK degree is one reason why I plan to come to The UK and study. Another is the value for money. Also the universities in UK provide internationally recognized qualifications of highest standard. The Business School at the Aston University is amongst the elite management schools. The quality of Post graduate taught programs is well recognized. The School provides MSc in Human Resource Management and Business program is designed to equip its graduates for careers in the global market. Apart from all these I am very passionate about sports and cultural activities. I am the core member of the sports committee of Wipro Technologies at Pune. Before this I had organized the Annual People Fiesta event at Wipro Tech, Hyderabad and won the People’s Champion award for the same. The activities included games like Basketball, Football, and cricket, Indoor games like Carom, Chess, Badminton, and Fun Games like Quizzing, Treasure Hunt, and Paper Game etc. I had actively participated in all of them; apart from this I was involved in Blood Donation Camp conducted by the Red Cross Society where I actively donated Blood as well. I had organized many Events at College level and won accolades for the same. My ardor for interacting with different people, learning them, their culture and making them friends, My deep urge to learn people skills and manage people at a large scale, to know them from their perspective and to run an organization where people love their company and to hear from them that they are jubilant to be part of my organization makes me a fitting candidate for your deemed program. I am confident that MSc in Human Resource Management and Business offered by Aston University would significantly impact my professional life and would fully equip me with comprehensive specialized rigorous professional training in all aspects of Human Resource management.

The Importance of independence for external auditors

The Importance of independence for external auditors The word of INDEPENDENCE is defined as freedom from situations and relationships which make it probable that a reasonable and informed third party would conclude that objectivity either is impaired or could be impaired. (Anon, www.europeanlawyer.co.uk) [Online] There are 2 types of independence, that are independence of mind and independence in appearance: Independence of mind The state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgment, thereby, allowing an individual to act with integrity, and exercise objectivity and professional scepticism. (ACCA, www.accaglobal.com) [Online] Independence in appearance The avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having knowledge of all relevant information, including safeguards applied, would reasonably conclude a firms, or a member of the assurance teams, integrity, objectivity or professional scepticism had been compromised. (CIMA, www2.cimaglobal.com) [Online] QUESTION 1(b): It is important for external auditors to be independent because external auditors act on behalf of the owners of the business, normally the shareholder, and report on the financial statements prepared by management for the benefit of shareholders. If the external auditors are not independent of their shareholder, for example, if they hold shares in the companies that they audit, their ability to form an objective opinion on the financial statements will be impaired. In addition, external auditors must be also be seen to be independent because if they are not, the owners of the business will not have confidence in the audit reports that the audits issue. This is why it is auditors independent is so important because to prevent further scandals such as those of Enrons and Parmalats case, and etc. For example in the case of Phar-Mor, Inc one of the top 10 deep discount drug store chains in the United States and declared bankrupt in the year 1995. Phar-Mor, Inc declared bankrupt because the company contributing to the frauds and ability to cover it up for so long. Listed below the summarized of the factors contributing to the fraud: Familiarity threat Phar-Mor, Inc knowledge of audit procedure an objectives. Phar-Mors fraud team was made up a several former auditors, including at least one former auditor who had worked for Coopers on the Phar-Mor audit. The fraud team indicated that one reason they were successful in hiding the fraud from the auditors was because they knew what the auditors were looking for. Self-interest threat The Phar-Mor had financial interest in financial reporting, potential self-interest threat may occur. Such the fraud in the Phar-Mor case included: Overstating inventory and recording consigned inventory as owned inventory Recording revenue from receipts from vendors under certain promotion and exclusivity agreements when received rather than over the life of the agreements Understating the amount of accounts payable by holding disbursement checks Recording revenues and receivables from vendors at budgeted rather than actual amounts (Severson and Julie, V., http://www.allbusiness.com) [Online] Integrity The principle imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. In the case of Phar-Mor, the Phor-Mor did not perform honest in professional and business relationships. The Phar-Mor provide misstatement of margins, inventories, and earnings in reports to management and in general ledger and financial statements (to cover up other misstatements), and diversion of assets to affiliated companies via manually written checks (nature of disbursements falsified when recorded in books and records). (Severson and Julie, V., http://www.allbusiness.com) [Online] QUESTION 1(c) (i): From the case above, a member of the audit team has possible financial interest in the client, potential self interest threat may occur and the gift rise to Roslan possible self-interest. Form my point of view, it seems less significant in terms of threats because the trust fund is indirect investment in the client. However, if the ownership in the client increases resulting in a significant proportion of Roslans fund to be invested in the client, then the threat may be significant. Moreover Roslan is an audit partner who audit in the investment company. Safeguard or action to be taken is since the threat may not be so significant, it may not be necessary to get Roslan to dispose off the financial interest. However, it would be better to remove or re-assign Roslan from the audit assurance engagement. QUESTION 1 (c) (ii) : For the case above, Sofia Ali has been given extended gift and hospitality by client that is in the form of a discount to purchase on new car by a sales manager. This may give arise to possible self interest and familiarity threats. The threats may be significant because of the extent of gift and hospitality that is audit staff is offered discount. However, the threats may not be significant if the gift and hospitality is within clients normal commercial terms, that is client offer to other customers. Safeguard or actions to be taken is the audit staff, Sofia Ali should refer to policies of audit firm prohibiting or getting permission before accepting the gifts and hospitality from senior personnel. QUESTION 2 (a): ISA 500 Audit Evidence requires auditors to obtain sufficient, appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Sufficiency and appropriateness are interrelated and apply to audit evidence obtained from both tests of control and substantive procedures. (ACCA, 2008, pp.119) Sufficiency is the measure of the quantity of audit evidence. The quantity of audit evidence required is affected by the level of risk in the area being audited. Firstly, it is the level of inherent risk faced by auditors is high. For example, high technology developments in a market which is very competitive can lead to going concern problems and more possibility that the clients Financial Statements will be misstated. This will lead to an increase in the inherent risk and will cause the difficulties for auditors to analyze Financial Statements in a volatile industry due to no consistency in Financial Statements and more evidence is needed during the planning stage. Besides, lack of IT control in a computerized environment may cause the level of control risk faced by auditors is high. This is because more evidence is needed for auditor when auditing the company. (ACCA, 2008) Appropriateness is the measure of the quality or reliable of audit evidence and its relevance to the audit subject matter. If quality is high, then the auditor may need less evidence. The quality or reliability of evidence is affected by several factors, such as external sources, evidence directly by auditor, entity, written documentation, and original documents. Original documents are more reliable than photocopies or facsimiles, which can easily be altered by the client. (ACCA, 2008) Testing control is a test for the auditor to determine whether the control is operating effectively throughout the period under review stage. The auditor must consider the sufficient appropriates audit evidence (such as design and operation) is to support the assessed level of control risk is audit evidence is obtained from tests of control. For example design and operation (ACCA, 2008) The auditor must always carry out substantive procedures on material items. The ISA says irrespective of the assessed rick of material misstatements, the auditor should design and perform substantive procedures for each material class of transactions, account balance and disclose. When obtaining audit evidence from substantive procedures, the auditor must consider the sufficient appropriate audit evidence from such procedures together with any evidence from tests of control to support the audit opinion. (ACCA, 2008, pp.99) In an audit of a financial report, the audit opinion is given on the assertions by management, explicit or otherwise, that are embodied in the financial report. They can be categorized as follows: Assertions about classes of transaction and events for the period under audit One of the examples is occurrence, where a transaction or event took place which pertains to the entity during the period. Assertions about account balances at the period end For example existence is an asset or a liability exists at a given date, rights and obligations is an asset or a liability pertains to the entity at a given date, and etc. Assertions about presentation and disclosure An item is disclosed, classified, and described in accordance with the applicable financial reporting framework. (Shakoor, www.accountancy.com.pk) [Online] The auditor has a statutory duty to make a report to the entitys members on the truth and fairness of the entitys annual accounts. This report must state the auditors opinion on whether the statements have been prepared in accordance with the relevant legislation and whether they give a true and fair view of the profit or loss for the year and state of affairs at the year end. The duty to report on the truth and fairness of the financial statements is the primary duty associated with the external audit. The assurance given by auditors is governed by the fact that auditors use judgment in deciding what audit procedures to use and what conclusions to draw, and also by the limitations of every audit. The auditors task is to decide whether the accounts show a true and fair view. The auditors are not responsible for establishing whether the accounts are correct in every particular. This is because it can take a great deal of time and trouble to check the accuracy of even a very small transaction and the estimation which means that financial statements can never be completely precise. It is not easy and impossible to examine every single item in the financial reports. Here, as we shall see, auditor provides opinion about the financial statements, but not certificate that the financial statements are correct. Besides, audit procedures are designed to reduce the risk of the misstatements in the financial statements, but not eliminate the error in the financial statements. This is because by providing sufficiently reliable conclusion arriving by way of using the sampling procedures. The sampling risk arises from the possibility that the auditors conclusion, based on a sample, may be different from the conclusion reached if the entire population were subjected to same audit procedure. A sampling risk can be reduced by increasing the sample size for both test of control and substantive procedures. (ACCA, 2008, PP.189) QUESTION 2 (b): Confirmation This involves seeking confirmation from another source of details in clients accounting records. Example: Confirmation from bank balances by referring to the bank statement. (ACCA, 2008, pp.121) Analytical procedures Analytical procedures mean the study of trends and ratios in financial and non-financial information. It is used within audit planning to identify risk areas and also as a means of gathering substantive evidence, for example by calculating as estimate of a particular figure based on knowledge of the business and comparing this to the actual figure. Example: A comparison of gross profit percentages month by month for a company could be performed and any unusual fluctuations investigated as these could indicate errors such as omission of sales, loss of inventory or other errors. (ACCA, 2008, pp.121) Observation Observation means watching a procedure being carried out. It is usually used as a means of gathering evidence about the internal controls in a company. Example: A appropriate to observe the procedures that are carried out when the post is opened to assess whether controls exist to prevent the misappropriation of cash. (ACCA, 2008, pp.121) Inspection Inspection means looking at documentation, books and records or assets. This could be done to confirm existence of an asset, to verify values or to provide evidence that a control has taken place. Example: The inventory of a company at the year-end could be inspected as part of the evidence relating to its value. The inspection would give evidence as to whether the inventory was in good saleable condition. (ACCA, 2008, pp.121) Inquires Inquires mean requesting information. This could be from individuals within the company, either orally or in written representations, or in formal written requests to third parties. Example: A relevant example would be to send a standard confirmation letter to the companys bank (ACCA, 2008, pp.121) QUESTION 3 (a): Audit Risk is the risk of giving an inappropriate opinion on the financial statements. For example, failing to qualify when the financial statements contain a material error. Audit Risk has three individual components in the formula: Audit Risk = Inherent Risk X Control Risk X Detection Risk (ACCA, 2008) Inherent Risk is the susceptibility of an assertion to a misstatement that could be material individually or when aggregated with misstatements, assuming there were no related internal controls. Inherent risk is also a risk that it is impossible for auditors to manage and transfer away due to the nature of the company and its transaction. (ACCA, 2008) Control Risk is the risk that material misstatement that could occur in an assertion and that could be material, individually or when aggregated with other misstatements, will not be prevented or detected and corrected on a timely basis by the entitys internal control. (MIA, www.mia.org.my) [Online] Detection Risk is the risk that the auditor will not detect a misstatement that exists in an assertion that could be material, individually or when aggregated with other misstatements. For a given level of audit risk, the acceptable level of detection risk bears an inverse relationship to the assessment of the risk of material misstatement at the assertion level. QUESTION 3 (b): Auditors should obtain an understanding of the entity and its environment, including internal control, sufficient to identity and assess the risks of material misstatement in the financial statements whether due to fraud or error. Then, the auditors able to design and perform further audit procedures. It is essential for auditors to understand the clients environment, including its internal controls because the knowledge of understanding of the clients environment will guide auditors to build up or maintain a good professional relationship with the client. Listed below are the reasons why auditors need an understanding of the clients environment, including its internal controls. A client may involve in a volatile sector of economy, which means that the industry has rapidly and is planning further expansion which will require additional resources. This will cause the stock obsolete and the obsolete stock may be overstated in the Financial Statements. In such circumstances, there is a risk that creditors will go unpaid and the business will go into liquidation. It is very risky for directors of the company and the auditors if they auditing the company. Todays world is rapidly changing such as technology. It is very competitive with new technology developments in a market because competitive can lead to going concern problems and more possibility that the clients Financial Statements will be misstated. This eventually will increase the inherent risk for the auditors especially in the aspect when the auditors auditing the financial statements. It is also will lead to an increase in the inherent risk and will cause the difficulties for auditors to analyze Financial Statements in a volatile industry due to no consistency in Financial Statements. Besides, the managements attitude, whether are they reliable and trustworthy in the business is suspected. This will indicate that the managements integrity is doubtful and mismanagement may be occurred. This in-turn will cause the Financial Statements may be subject to manipulation by existing auditors when they auditing the company as management is bias. Nevertheless, financial aspect will be taking into consideration if the company is facing financial problems. The company would needs a bank loan to finance the director ambitious plans. However, the loan facilities are scare. The risk for auditors to audit the Financial Statements will increase when the management of the company would use an aggressive accounting tactics to manipulate the Financial Statements. Last but not least, there is a misappropriation to a specific ascertain for a cash transactions or account balances in the. The cash balances may influence the Financial Statements and will cause an increasing risk for auditors to audit Financial Statements and there is a limitation for the auditors to identified completeness of sales and internal controls are insufficient. The aspects of clients environment and internal controls are as follow: Industry, regulatory and other external factors, including the reporting framework Nature of the entity, including selection and application of accounting policies Objectives and strategies and related business risks that might cause material misstatement in the financial statements Measurement and review of the entitys financial performance The control environment Control activities Monitoring of controls (ACCA, 2008) QUESTION 4 (a): It is important for auditors to observe clients inventory stock count. This is to verify assertions of existence of inventory items that makes up the balance, means that the stock count done by the client staffs are as per the Stock Taking Instruction (STI). All the stocks are properly allocated, ensure that the stock stated in the stock list are actually exist. If do not have such stock exist as per the stock list, inquire the management or superior for the explanation. Besides, the auditors should ensure that the condition of the stock are clearly stated during the stock count, such as identify evidence of damaged or slow moving inventory because it is useful for the further evaluation of the inventory. This also wanted to prove that the actual stock record data are as per the stock count. Not only that, observation of stock count is to ensure that all the stocks held in the warehouse are particularly owned by client, that is right and obligations assertion. Any stock held for 3rd party, ensure it is properly separated from the clients stock and inspect the agreement between the 3rd party and client regarding about the stock held. Lastly, the auditors should verify by assertions of completeness. That is the audit should ensure all sales and purchases are well recorded and all the inventory at year end is included on the statement of financial position. QUESTION 4 (b) (i): As an external auditor, the audit procedures I would take is to find out or enquire whether this box of liquid is still part of the inventory balance, that is inventory record. Besides, I will ensure that the box of liquid in this inventory is written off and not saleable anymore. Lastly, I will also determine whether the sales of the liquid shoe polish are valued at the lower of cost or net realization value, if it is saleable. If the liquid shoe polish still cannot sell, then dispose the liquid shoe polish. QUESTION 4 (b) (ii): As an external auditor, the audit procedures that I would take is I will ensure that clients staff are following instructions during the inventory count. Besides, no pencil is allowed during the inventory count. This is because by using pencil to record down inventory counted is showing not a good count instruction. Therefore, I will inform the person in charge of count that some staff are using pencils to record down inventory counted to prevent any adjustment easily to be made. Lastly, I will follow up to observe whether the staff are using pen subsequently during the inventory count and observe the condition of the stock properly to ensure it is clearly stated as per during the stock count, as it is useful for the evaluation of the inventory. QUESTION 4 (c): The management of the company is responsible for the identification and reporting of stocks that are worth less than cost to the auditor in a form of a schedule listing all the identified items. The types of inventory that may be worth less than costs include slow-moving, obsolete and damage stocks. Audit procedures for stocks worth less than costs are as follows: Enquire from management as to how they account for and identify such inventories, including the assumptions they made about the age, conditions and value of the inventories. Inspect sales, marketing and other reports, and review the extent to which inventories which are worth less than costs have been reduced to net realizable value (NRV) in prior years. Analytical procedures may be performed to evaluate the appropriateness of the write down in the current year. Analyse the clients computerized records, if available, to identify goods that are old or slow-moving. The records may also show seconds and damaged goods. Any information produced by the computer system for management relating to inventories need to be checked. Computer Assisted Auditing Techniques (CAAT) may be used for these purposes. Auditors need to checked the appropriateness of the definition of old and slow-moving given by the management, by making references to competitors products, technology changes and legislation. For high value items the auditors will need to refer to the experts valuation report to note if any material differences exist. At the inventory count, a note should have been made of any items that appeared to be old, slow-moving or damages and the count records should be inspected to see if they do show such goods. QUESTION 5: The auditors responsibility is to consider the appropriateness of the going concern assumption made by management and whether are there any material uncertainties about the entitys ability to continue as a going concern that need to be disclosed in the financial statements. In obtaining an understanding of the entity, the auditor should consider and stay alert to obtain evidence as to whether any events or conditions and related business risks which may occur and cast significant doubt on the entitys ability to continue as a going concern during the auditing. If such event or conditions were identified, the auditor should perform addition audit procedures to consider their impact to the audit assessments. The auditors should: Review managements plan for future actions based on its going concern assessment Gather sufficient appropriate audit evidence to confirm whether or not a material uncertainty exists. Considering the affects of any plans of management and other mitigating factors Seek written representations from management regarding its plan for future action (ACCA, 2008) The auditor should also inquire management as to its knowledge of events or conditions beyond the period of assessment used by management that may cast significant doubt on the entitys ability to continue as a going concern. The audit procedure that auditor should undertake to realize that may have affected on company going concern issues are as follow: Analyse and discuss cash flow, profit and other relevant forecasts with management. Analyse and discuss the entitys latest available interim financial statement Review the term of debentures and loan agreements and determine whether they have been breached Read minutes of meetings for the reference to financial difficulties Enquire of entitys lawyer regarding the litigation and claims Consider the entitys position if unfulfilled customers order Assess financial ability to provide additional funds Review events after period end for item affecting the entitys ability to continue as going concern. (ACCA, 2008)

Pharmaceutical Industry In India Economics Essay

Pharmaceutical Industry In India Economics Essay India pharmaceutical industry is one of the worlds largest and it has been ranked 4th in the world in terms of production volume and 13th in domestic consumption value. The worth of Indias pharmacetical industry is $4.5 billion and it has been growing at the rate of 8% to 9% annually. Over the last 30 years india pharmacetical industry has evolved from almost nonexistent to a world leader in the production of high quality generic drugs. There are 20,000 registered units so, this show that indian pharmaceutical industry is highly fragmented. 70% of the pharmacetical market has been controlled by the leading 250 companies. The government has control over the price and there is severe price competition. 70% of the countrys demand has been met by the pharmaceutical industry. 1.PORTERS 5 FORCE MODEL Indian pharmaceutical business environment is extremely competitive and where perfect competition exits, the profits of the firms operating in that industry will become zero, but however this is not possible because, firstly no company is a price taker this means that no company will operate where the profit is zero every company needs some profit to sustain themselves in the market. Secondly they strive to create a competitive advantage to thrive in the competitive scenario. Here, we apply this model for the Indian pharmaceutical industry. Industry competition Indian pharmaceutical industry is highly competitive with as many as 10,000 different players fights within themselves. The rivalry in the industry can be judged from the fact that the top players in the industry has roughly around 6% market share and the top players in the market has roughly around 18% market share this shows that the market is highly competitive. The industry is very attractive for new players to enter, so the growth prospects is quit high. Another factor that adds to the industry rivalry is the fact that the entry barriers to the industry are very low this factor also attracts new players in the market. Product differentiation also differentiate the companys product and gives a competitive advantage to the firm in the industry. Companies like Pfizer and glaxo have emerged as a big company over the years, which act as a product differentiation tools. So as product patents have come into play from 2005, product differentiation will enhance over the long time. Bargaining power of buyers The end user of the product is different from the influencer in pharmaceutical industry and thats the doctor. What ever the doctor say the consumer has to buy that only the consumer has no option but to buy what the doctor says. But when we look at the buyers power, we look at the influence they have on the products price. The buyer in this situation does not have much power in the pricing of the products price. But the government through its policies plays an important role in regulating the price through NPPA (National Pharmaceutical Pricing Authority). Bargaining Power Of Suppliers The pharmaceutical industry depends upon many organic factors. Then again the chemical industry is very competitive and fragmented. The chemicals that are used in pharmaceutical industry are mainly a commodity. The bargaining power of the suppliers is very low and a company can switch suppliers without incurring a very high cost. But however, suppliers can go forward integration to become a pharmaceutical company. Companys like orchid chemicals and sashun chemicals were basically a chemical companies which later become into pharmaceutical companys. Barriers To Entry Indian pharmaceutical industry is one of the most easily accessible industry in the country. It requires very low capital and the point of sale is restricted, as regional distribution network can be created easily. However the key for long term survival is the company has crate brand awareness and franchisee amongst doctor. In establishing new manufacturing operations, there might be some problem due to quality regulations by the government. Going forward the impending new patents regime will raise the barriers to entry. But market for generics is huge, so it wont discourage new entrance. Threat Of Substitutes Pharmaceutical industry has an infinite future. This is one of the greatest advantage of pharmaceutical industry. This is also one of the reason for high competition in the industry. The biggest advantage is that whatever happens the demand for pharmaceutical products would always be there. PESTEL ANALYSIS Political Factors The Government is controlling the price of the pharmaceutical goods through NPPA , that too on the basis of approved costs. From January 2005, there was Patent Act imposed in India. The patented drug is now manufactured using the same chemical route and is manufactured by the inventor or licentiates by using the chemicals in same specifications. So there is no difference in purity or impurities among all the brands having same active ingredient. The competition among different brands is now based on input-related innovations like packaging, colour etc. This is the biggest change that environment has imposed on the industry. The marketing effort is now more focused on innovation, operations, logistics and communications. After January 2005, the finished pharmaceutical goods became more expensive as the government started charging Excise Duty on the MRP instead of the cost of manufacturing. Due to which many a life savings drugs have become unaffordable to the poor. The minister in charge of the pharmaceutical industry in India is threatening to impose strict price control. Due to which many investment plans are going stagnant Economic Factors A very small portion of the GDP is spent on healthcare. This has stunted the demand. The expenditure on healthcare is a very low priority because per capita income of an average Indian is very low. When there is an emergency then only an Indian would visit a doctor. Due to which many unqualified doctors have started to come up and non-standardized medication have started to spread. In India there are lot of taxes. There is excise duty (State and Central), Custom Duty, Profession Tax, Service Tax, Income Tax, Royalty, License Fees, Hazardous Substance handling and other charges to be paid. This amounts to not less than 40-45% of the costs. The availability of pharmaceuticals is affected as there are few registered medical practitioners. The distribution of medicines is also affected as there are few medical shops. As a result the distribution costs also increases. The interest rate is high in India. As a result the cost of funds is double than that in America. This adds to the cost of goods. There is lack of storage and transportation facilities for special drugs. The quality of the drugs administered is affected and this adds to the costs. The network of transport (road and rail) is poor. So it takes longer time to transport. As a result the inventory carrying costs are higher and the delivery time is also very long. But now good quality highways have been constructed. Social Factors The eradicated and preventable diseases like Malaria, chicken pox and TB still prevail in India due to poverty and malnutrition. Around 1 million children under the age of 5 die each year in India due to poor sanitation n health care. People prefer using household treatments for common ailments. This tradition has been handed down for generations. The increase in pollution is also causing lot of health problems in India. Due to early child bearing the health standards of women and children are affected. Technological Factors There are being discovery for newer medications, molecules and active ingredients. Lot of advancement have been made in Stem-cell research and Bio-technology. As a result, India has moved ahead. Efficiency has also increased with computerization and advanced automated machines, increasing the output and reducing the cost factor. Ayurveda has become a well recognized science and it is providing the industry an extra competitive advantage. AIDS drugs, Insulin and Hepatitis vaccines have given the industry a pioneer status. Development of Over the Counter Drugs and Outsourcing(Pharmaceutical Industry). Â  Environmental Factors India is still ill equipped to deal with spread of Air-Borne and Water-Borne Diseases like Swine Flu, chicken gonia due to which many people is infected and many people have died. Proper treatment and disposal of bio-wastes like syringes. Proper treatment and disposal of chemical wastes produced during the manufacturing of drugs and pharmaceuticals. Pollution and hygienic conditions like poor sanitation causes diseases. Legal Factors In March 2005, a new Patent Law was passed. According to that Indias pharmaceutical sector is no longer protected by the patent law. Hence the companies have started focusing on innovation rather than imitation. The government controls the pricing of the drugs through NPPA. Key Drivers For Change 1.Growing Population And Improving Income-: the earning capacity of people have increased in the past couple of years and the proportion of middleclass in india population has also increased. As the earning capacity of people has increased there is a greater demand for medical facilities and pharmaceutical products. 2. Changing Life Style-: Rise in income and as more and more people are getting educated this has resulted in change in life style. Changing life style however is leading to a change in disease profile especially in urban areas. 3. Research And Development-: Indian companies are largely focused on chemical synthesis of molecules and their cost effective production thereof. As medical science has improve with the help of new technology Indian scientists have develop a high degree of chemical synthesis skills. This skills has help Indian company to provide quality products not only to domestic market but also has helped them to go abroad. 4. Insurance Sector Giving A Lift-: Indian insurance sector has also been one of the reason in the change in the attitude of the people towards health care. As large section of Indian population are covered by health insurance schemes people are more willing to spend on their health. Industry Life Cycle The various stages of industry life cycle are : The Indian pharmaceutical industry is in the growing stage with lot of promising increase due to the increased economic presence of Indian economy. The Indian economy is expected to grow at the rate of 7-8% per annum and the pharmaceutical industry is also expected to grow at the 14-15% per annum. Foreign companies are also now finding Indian pharmaceutical industry as a very good and profitable investment. The government of india has also been promoting and helping the pharmaceutical industry to grow in many ways. Future Scenarios One of the scenario can be as india is one of the most populated country in the world the demand for health care products and pharmaceutical products will never come down. India is the second largest populated country in the world with a large number of patients and the fourth largest pool of medical professionals in the world. As Indian economic is also improving the earning capacity of a person has also increased in couple of years this has also increased the demand for quality health care products and pharmaceutical products. With the help of rapidly improving technology and support industries such as labs and hospitals and with the help of IT industries with is supporting the RD process and clinical trials are further advantage. Big pharma companies are also been attracted because of the population of the country and the fact that the country offers 700,000 specialty hospitals,221 medical college and skilled English speaking medical personnel Another scenario can be that india can produce better quality health care products and pharmaceutical products at lesser price as compare to other country. A number of foreign companies are trying to set up there RD centers in india. From the last couple of years around 25 contract research organization and almost all the multinational companies have started there research full fledged this shows that india can become one of the largest producer of health care products and pharmaceutical products in the coming years. Reputed institutions has also been established over the last decade to train physicians in ICH-GCP guidelines. In india, big companies are spend more in india as compare to other country in the FY year 2003-04 companies have spend round about USD 59.4 where as in the previous year companies have spend only USD 29.16 million a growth of 104% when we compare it with the previous year and it is projected to grow 8-10 times every year at this rate india can become one of the largest producer of health care products and pharmaceutical products. Another scenario can be as india is a developing country there is more opportunity for the pharmaceutical industry to grow this is also one of the factor that is attracting new investors to invest in pharmaceutical industry. As India is a developing country there are less competitors in the market and the demand for the product is very high as compared to developed nations and as compared to other develop nations the margin level is also very high because the cost of production in india is very low. Company can create a good brand image about their product in the minds of the customer as there are only some competitors in the market.