Google Earth Essay Example | Topics and Well Written Essays - 1000 words

Google Earth - Essay Example ese stars were created as a result of collisions of Andromeda with other galaxies or collisions within itself or even destroyed another galaxy during collision whose stars are now strewn in the Halo. (Savage, Villard and Brown). The Owl nebula is a planetary nebula formed by a dying sun-like star. It is located about 2600 light years away in the Ursa Major constellation. Planetary nebulae like the Owl nebula now bear no relation to creation of planetary systems as previously believed. These dying stars, unlike bigger stars, are unable to generate energy through fusion of helium into carbon once their hydrogen fuel has burnt out. As a result their core turns into a â€Å"white dwarf† and only radiates the energy resulting from its collapse. The outer layer is pushed outwards and is energized by ionization by the core. However, such nebulae are short lived and cool down after approximately 10,000 years. The picture of Owl nebula in this version of Google Earth looks like a blue spherical shape with green clouds at its periphery. However, upon searching elsewhere, other pictures were found which, when used with certain filters, show two large eyes similar to an owl’s inside the nebula. A sample is given below. The first Messier Object recorded in Charles Messier’s catalog, M1 or the Crab Nebula, is a supernova remnant that is said to be expanding at 1500 kilometers per second. At its centre, spinning thirty times per second, there is a â€Å"pulsar† which sends out strong gamma and radio waves. The orange outer filaments are composed of hydrogen and are the remains of the star. The inner blue glow is created by electron clouds rotating in the magnetic fields created by the pulsar. (Hester et al). The Whirlpool Galaxy is one of the brightest galaxies visible using amateur telescopes or binoculars. It is a spiral galaxy conspicuous by its two large spiral arms. Scientists believe the formation of these spirals and the birth of stars within them are related to

Globalisation and Religion Essay Example for Free

Globalisation and Religion Essay Secularisation theory has argued that modernisation has undermined religion. The importance of science and technology on economic development and rational worldview on which they depend on are seen as destroying the belief in supernatural. However religion can contribute to development, but most recently sociologists have examined what role religion may play in development in today’s globalising world. This can be seen in India. Globalisation has brought rapid economic growth and has seen India become a more important player in the world political stage. It has brought prosperity to some, notably the Indian middle class. Nanda shows that 85% of India is Hindu and this is where globalisation has taken place. Globalisation has created a huge and prosperous, scientifically educated middle class working in IT, pharmaceuticals, etc. These are who secularisation theorists say will be the first to abandon religion. However Nanda sees a vast majority of this class continue to believe in the supernatural. A study of developing societies in 2007 shows that Indians are more religious and only 5% claim their religion has declined in the past five years. It also found that urban areas are more religious that rural areas. Nanda goes as far to say that it is becoming fashionable to be seen as religious. She examines what motivates this. Nanda rejects poverty and existential insecurity as a reason for their belief because they are not poor. She also rejects the idea that their religiosity is a defence mechanism to modernisation and westernisation. She argues that their religiosity is to do with their ambivalence to their new found wealth. This has helped to see the relationship between globalisation and religion, as Nanda points out that globalisation has increased the religiosity in India. She also examines the role of Hinduism in legitimating a triumphalist version of Indian nationalism. From a survey it found that 93% of Indians believe they have a superior culture to others. Nanda notes that the Indians’ success in the global market have attributed to Hindu values. These are constantly promoted by media and politicians. Ultra nationalism, worshiping Hindu gods and India itself has become a civil religion. In recent years the East Asia tiger economies such as Korea and Singapore are now becoming industrialised. Also China has become a major global power. Sociologists argue that this success is because of religion acting similar to Calvinism. Redding sees their post Confucian values as encouraging, similar to the protestant work ethic. Similarly Berger argues that Pentecostalism in Latin America acts as a functional equivalent to Weber’s protestant ethic. He says that they embrace the work ethic and lifestyle of Calvinists aspect of life which in result its members continue to prosper. However Berger underlines Weber’s point that religious ideas alone are not enough to produce economic development. He says that natural resources are also needed. For example while Protestantism has grown in northern Brazil, the religion lacks resources and remains backwards. By contrast, the south, which is developing rapidly, has both a work ethic derived from Pentecostalism and the necessary resources. Christianity has also become globalised. Lehmann says that it has done this by accompanying globalisations, imposed my indigenous population and in the past 100 years it has spread because of its popular following. The symbols and imagery from local cultures attributes to their success. They attack cults and perform exorcism, and accept and validate beliefs. This has contributed to the relationship between globalisation and religion as it shows that religion has helped countries to develop and using the idea of protestant ethic in Latin America gives a valid explanation as to why they have grown. A further link between globalisation and religion is explained through fundamentalism. Fundamentalism has a response to globalisation and related trends. Giddens’ describes fundamentalists as traditionalists. He sees that this is a relatively new term and sees its growth, as a production of and reaction to globalisation. He claims that it has undermined traditional norms and values. They say that religion offers certainty to a now uncertain world due to the choice which people have. A contrasting view to this however is Beckford. He criticises fundamentalists for ignoring other important developments, including how globalisations also affects non fundamentalist religions such as Catholicism. Giddens’ groups all types of fundamentalism together, ignoring any differences between them. Jeff Haynes argues that we should not focus narrowly on the idea that Islamic fundamentalism is a reaction against globalisation. For example in the Middle East, conflicts caused by the failure of local elites to deliver on their promises to improve the standard of living are often the fuel that drives fundamentalism. This evidence argues that globalisation has undermined traditional religious beliefs. Religion has also created a cultural defence whereby religion serves to unite communities against external threat. In this situation religion has a special significance for its followers because it symbolises the group or societies collective identity. There are two examples of this from the late 20th century and those are Poland and Iran. It has created war and terror such as the war in Iraq. Therefore the effect of globalisation on religion is a ‘clash of civilisations.’ Huntingtons’ view is that religious defences are creating a new set of hostile ‘us and them’ situation as there is an increase in competition against cavitations for economic and military power. An example of this is the 9/11. Although there are some critics such as Jackson who believe it is a western ideology that stereotypes nations. Also Armstrong argues hostility towards the west does not stem from fundamentalist Islam but to western foreign policy in the Middle East. This shows that’s due to globalisation is has increased religiosity but has created friction between countries. This has had a negative effect in the world. Overall globalisation has brought rapid economic growth and has seen India become a more important player on the world political stage. It has also increased Indians religiosity which is shown in Nandas’ argument which she also says this relationship is because of the optimism about the opportunities globalisations will bring and the result of the ambivalence to their new found wealth. But also like Huntington says, both religion and globalisation has created a ‘clash of civilisations’ and created both war and terror. In conclusion this relationship between globalisations in religion is good as it has helped countries such as India in the economy and has increased their religiosity. However it could also be argued that it has created friction between religions and in result has had a negative impact on the world.

Marketing Analysis Of Virgin Media Marketing Essay

Marketing Analysis Of Virgin Media Marketing Essay Services marketing are a form of marketing which focuses on selling services. Services can be tricky to sell and the marketing approach for them is much different than the approach for products. Some companies offer both products and services and must use a mixture of styles; for example, a store which sells phone also tends to offer services such as helping people select phone as contract and providing broadband service and phone repair. Such a store must market both its products and the supporting services it offers to appeal to customers. Virgin Media is an innovative new media company that was formed as a result of a merger between NTL and Telewest and then a re-branding as Virgin Media. Its main strength lies in the branding and the innovation that the name Virgin offers. Internally, Virgin Media is the only company in the United Kingdom that offers all four of the main media services, i.e. digital television, broadband, fixed line telephone and mobile phone packages. The ability to offer these products all together in one bundle is the unique selling point of Virgin Media and clearly sets the company apart from its competitors. Swot analysis is the most important and first stage of planning. It is a feedback mechanism to make new strategies for any organisation. Strengths, Weaknesses, Opportunities and Threats are the four components of a swot analysis. Weaknesses and Strengths are correlated and examine the internal part of the business analysis whereas Opportunities and Threats deal with the external environment of business operation. Weaknesses and strengths refer to aspect of marketing, finance, manufacturing or organisational structure. Swot analysis helps clarifies the objectives of the organisation Strengths In offering these combined services, the company has substantial economies of scale as it is able to combine many of its generic roles such as administration and finance, thus allowing the company to price more competitively for the benefit of its customers. Due to its perceived leading brand name in the media, Virgin Media has managed to secure an ongoing contract with Sky, extending further still its inclusive offering to its customers. Technical ability and infrastructure are also two of the key internal strengths of the company, which have been exploited to produce a market leading position. Weaknesses Despite this, the company does have some internal weaknesses that need to be managed. The merger between NTL and Telewest is still relatively new and there are cultural clashes between the two styles and the emerging Virgin style. In recent years, there have been several redundancies and outsourcing of customer services, in an attempt to bring down costs. This has resulted in a degree of unsettled behaviour and lack of loyalty from staff. Due to the size and complexity of the growing organisation, there are likely to be ongoing conflicts which will need to be managed if this cultural shift is not to impact on the customer experience. Opportunities and Threats Externally, the opportunities and threats facing Virgin Media are ever changing. The media sector is developing an exceptionally fast pace, resulting in both opportunities and threats for companies such as Virgin Media. Opportunities are widely available for Virgin Media, predominantly in offering value added services such as online gaming or more reliable broadband connections. Bundling these media services together, as Virgin Media has already done offers yet further opportunities within the media sector, in terms of grasping greater market share. Consumers like simple, one-stop shopping when it comes to the media options available; this is something that Virgin Media can continue to exploit, particularly now that it has signed an agreement with Sky. Threats to Virgin Media come from other similar media companies such as Orange or BT who remain as large players in the market. In particular, Virgin Media is rumoured to have difficulties with its infrastructure reliability, which could potentially allow competitors such as BT to increase market share. The media sector as a whole is extremely fast moving; therefore, the main threat is that Virgin Media may fail to keep pace, thus losing its customer base to another more innovative company. The flower of service Facilitating elements(services) Information: Customers often require information about how to obtain and use a product and services. They may also need remainders and documentation. Example, Of virgin broadband information services are: Direction to service site and using instruction, warning and insurance, terms and condition of services. Order taking: Many goods and services must be ordered or reserved in advance. Customer needs to know what available and may want to secure commitment to delivery Billing:How much do I owe you? .Customers deserve clear, accurate and intelligible bills and statements. Payment: Customer may pay faster and more cheerfully if Virgin makes transactions simple and convenient for them. 2) Enhancing services: Consultation: Value can be added to goods and services by offering advice and consultation. Safe keeping: Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site. Exceptions: Customers appreciate some flexibility in a business when they make special request. They expect it when not everything goes according to plan. Hospitality: Customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests. User Preparation When implementing new system, it is important that personnel, employees, managers and others in the organization are prepared for it. This process is also called process of readying the decision makers, managers, employees, and stakeholders for a new system. In this regard, user training becomes very essential, because without it the success of the system cannot be guaranteed. This process of user preparation is planned and executed properly and involved a lot of arrangement, and consideration (Stair Reynolds, 2008). Virgin Media, the UKs leading fibre-optic broadband provider currently has almost 60,000 SME and public sector broadband clients, but has announced that it is looking to grow this significantly. Virgin Media has unveiled plans to target the small and medium business customers of its rival broadband giant BT. The move comes soon after BTs commitment to undercut Virgin Medias residential super-fast broadband prices, with its new fibre-optic broadband service which BT is rolling out this year. There is a very big market up for grabs, as small and medium-sized enterprises (SMEs) spend about  £18bn a year on IT and telecoms. Virgin Media currently have revenues of about  £600m pa from business broadband customers and this is forecast to rise to about  £1bn pa in three to five years. Virgin Media chief operating officer Andrew Barron said: This is another step forwards. Weve been working in the business division for 18 months on getting the business processes to the right level. Weve improved it dramatically. We can use the fibre-optic network to differentiate ourselves. Marketing communication Mix: The marketing mix is the set of controllable tacticle marketing tools that the firm blends to produce the Response it wants in the target market (Melewar. T.C., Saunders.J, 2000) Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers directly or indirectly about the products and brands that they sell. A company s total marketing communication mix also called promotion mix (Kotler, 2005) consists of specific blending of advertising, personal selling, sales promotion, public relations, and direct marketing tools that are used by company to pursue its advertising and marketing objectives. The marketing communication activities which contribute to the marketing of any new or existing product: by creating awareness of the brand; linking the right associations to the products image in the consumers memory, facilitating stronger consumer-product connection etc. Current extended marketing mix marketing mix. People People is one of the elements of service marketing mix. People define a service.. In case of service marketing, people can make or break an organization. Thus virgin media nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staffs are better than the rest. Definitely a USP in case of services. Process Service process is the way in which a service is delivered to the end customer. The process of a service company such as virgin media in delivering its product is of utmost importance. It is also a critical component in the service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer. Physical Evidence The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Physical evidence is used as a differentiator in service marketing. This is the service marketing mix (7p) which is also known as the extended marketing mix Position Positioning in different areas is not always easy (I can say it is too difficult). Virgin Group was aware of the difficulties so they had to think about the Virgin brand name. They have never entered in a business before doing solid researches and analysis. They have reviewed the industry and tried to look from customers eyes. They were aware of the trade-offs they had to think before entering a new business venture and they have never underestimated the risks behind new entrance. Advertising Virgin Media launched to much fanfare in February 2007, with a public relations event and an expensive advertising campaign which covered major UK television channels, newspapers and billboards. In an effort to increase awareness of the group and its services, Virgin Medias campaign used bright red colours to portray its brand image. Recent[update] television advertising featured actress Uma Thurman and comedienne Ruby Wax, and currently[update] features actor Samuel L Jackson, whilst the print advertising features bold typography. Virgin Media also sponsored the Channel 4 reality TV show Big Brother until the end of the ninth series. Virgin Media Business/ On Thursday 11 February 2010, Virgin Media announced that its business division would be rebranded as Virgin Media Business with immediate effect. The company, which had been operating as ntl:Telewest Business, is now the largest B2B brand in the Virgin Group. This marked the end of the NTL and Telewest being used by the company. Virgin Media Business is the UKs only telco with a national fibre optic Next Generation Network. Organisations working with Virgin Media Business include London City Airport, Arqiva, Hampshire and Isle of Wight Partnership and South West Water. Consumer behaviours Understanding how consumer behaviour is changing will be an important requirement of Virgin Medias upcoming music offering and, should they become law, the Governments legislative proposals will also require measurement of the level of copyright infringement on ISPs networks. Deticas CViewà ¢Ã¢â‚¬Å¾Ã‚ ¢ technology potentially offers a non-intrusive solution which enhances our understanding of aggregate customer behaviour without identifying or storing individual customers data. Consumer Segment We face intense competition from a variety of entertainment and communications service providers, which offer comparable broadband internet, television, fixed line telephony and mobile telephony services. In addition, technological advances and product innovations have increased, and will likely continue to increase, the number of alternatives available to our customers from other providers and intensify the competitive environment. See Risk Factors-We operate in highly competitive markets. However, we believe that we have a competitive advantage in the U.K. residential market due to the superior technical capabilities of our cable network over the network of the incumbent BT, which many of our competitors rely on to provide their services. We also face intense competition in the mobile telephony market, primarily driven by increased pricing pressure from both established and new service providers, evolving customer needs and technological developments. We offer most of our products on a stand-alone basis or as part of bundled packages designed to encourage customers to subscribe to multiple services. We offer broadband internet, fixed line telephony and mobile telephony and data services throughout the U.K., and currently offer television services exclusively in areas served by our cable network Segmentation, Targeting, Positioning (STP) Before start think about marketing (4P), you must understand what is STP. Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics Segmentation Segmentation : Identifying all segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be: Measurable Accessible (can you reach them) Profitable Distinct from one another the objective of segmentation is to find attractive markets. Strategies include Break market into components Regroup into market segments Select which segment to target Targeting Virgin Media is currently number two in the home broadband market in the UK, but it obviously doesnt want to be left behind when it comes to broadband on the move. The company has its own-brand mobile phone service, so its wasnt that much of a leap for it to add mobile broadband into the mix. Virgin is offering mobile broadband via a number of different deals. For example, if youre already a Virgin customer using its XL (20Mb) or L (10Mb) cable broadband packages or its ADSL Bundle 1 offering, you can get mobile broadband with a 1GB usage allowance for an additional fiver a month. If youre on one of the lower-end home broadband deals you can get the same package for a tenner a month. However, for this review were looking at the standard retail pack which targets people who dont already have a Virgin service. This deal costs  £15 a month on an 18-month contract for a 3GB monthly download allowance and a free USB modem Positioning. Positioning is an essential component and skill in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*. It is important to understand the levels of competition because positioning applies at all levels of competition. For example: Product Level Corporate Level Industry Level The STP Process The growing use of the STP process has occurred as a direct result of the prevalence of mature markets, the greater diversity in customer needs, and the ability to reach specialized or niche segments. As such marketers are increasingly segmenting markets and identifying attractive segments (i.e. who to focus on and why?), in order to identify new product opportunities, develop suitable positioning and communications strategies (i.e. what message to communicate), and effectively allocate resources to key marketing activities (i.e. how much should we spend and where?). Organizations will often commission segmentation research when they want to re-scope their marketing strategy, investigate a declining brand, launch a new product, or restructure their pricing policy. Organizations operating in highly dynamic environments seek to conduct segmentation research at regular intervals, to keep in touch with changes in the marketplace. STP refers to the three activities segmentation, targeting, and positioning SOURCES 1. Virgin Media, fourth quarter 2007 results presentation, February 2008. 2. Carphone Warehouse Plc fourth quarter trading update, April 2008. 3. Domestic Competitive Market Review, 2004, Ofgem.

Pride and Predjudice - Money and Marriage :: English Literature

The novel Pride and Predjudice is based on money and marriage. Discuss. The novel reflects society at the time in which it was written, womens powerlessness in a patriarichal society. Men dominated all walks of life and expected women to attend their every need. In order to secure a "safe future" for themselves women expended a lot of time and energy learning skills with which to attract a man of substance. Indeed Darcys view was 'A woman must have a thourough knowledge of music, singing, drawing, dancing and the modern languages' an extremely tall order for any one. The major themes of money and marriage are indeed married together in the opening lines of this novel 'It is a truth universally acknowledged that a single man, in possession of a large fortune must be in want of a wife'. During this period of time moral themes such as love and respect did not play a pivotal role in marriage. Charlotte Lucas remarks, 'if the dispositions of the parties are ever so well known to eachother it does not advance their felicity in the least and it is better to know as little as possible about the defects of the person with whom you are to pass your life'. In this day a nd age a very strange notion indeed. Charlotte Lucas did not believe that she deserved to be happy in a marriage. When she married Mr. Collins they were strangers and remained so. Marriage in the early nineteenth century was an economic contract and in the case of the Bennet girls a means of financial security and social acceptability. Therefore Mrs. Bennets life revolved around her daughters security, 'The business of her life was to get her daughters married' and, 'A single man of large fortune what a fine thing for our girls'. Mrs. Bennets own marriage was not a happy one. Mr Bennet found retreat in his library. When he first married he was 'captivated by youth and beauty and that appearance of good humour had married a woman whose weak understanding and illiberal mind, had very early in their marriage put an end to real affection.. all his views of domestic happiness were overthrown..' A womans entire social,emotional and economic future depended entirely on how wealthy her husband would be. So time spent in pursuit of a wealthy mate was a matter of survival in the upper class. If you happened to like or love that mate it was a highly beneficial bonus. 'Happiness in a marriage is entirely a matter of chance'. It is sad that three of the marriages in the novel ended up as unhappy unions. The Bennets marriage was based on physical attraction.

An Ode to My Sunglasses

An ode to my sunglasses There is something about my golden aviator sunglasses that is more than sun protection, more than anybody else can ever imagine. Every time I put them on I instantly become happier. A lot of women around the world have the same pair, as they were mass-produced by the brand Guess, and so mine isn’t unique at all in that sense. Neither is my happiness triggered by a materialistic satisfaction by wearing a â€Å"brand†.I received them from a special person, when I was ready to draw mental punctuation mark in my life. Those punctuation marks in life, often called phases, more often misused – the reason I call them punctuation marks. You drew them on the day you lost something or someone special, the day you realized that your parents were human, the day you got your first paycheck, and so on. You will draw your full stop when you have reached your end.When I put on my sunglasses, my eyes are immediately drenched in a creamy vision, the world a s I know it becomes beige. Everyone feels a sense of detachment when they wear their sunglasses, you feel like you could spy on people without them noticing, or you could camouflage a burse, your red shoot eyes, or to simply help you from yielding to your terrible hangover. But my sunglasses are special to me, because when I put them on, I feel detached from all the sadness of the world.When the world is dipped in that smooth beige, time is no longer a burden that drags me down. A year ago I found myself on a beach in Istanbul, a city I am used to going when I need to escape from something or someone – people were chatting, laughing, with the energy and the heat I felt like I could hardly breath. When I was sitting by the beach thinking about all that I have left behind in Vienna, that five excruciatingly long years of marriage, I was suddenly awakened by a woman’s voice.This tanned woman about the same age as me offered me a beer, when I took the beer I noticed her ha nds were almost pruned, way too old for her age, she comfortably sat down next to with a big smile that immediately warmed my heart. We began chatting randomly; she spoke with such passion about Istanbul, the street where she grew up, the places she’s been. She made me feel so comfortable that I couldn’t help but pour my heart out to her. We sat there chatted for three five hours straight. All that is very well,† suddenly she stopped me, â€Å"but all you are telling me is what other people needed,† she had the accent of a bird, â€Å"the help they needed from you. † she looked at me straight in the eye, no longer focused on the spectacular sea view, or fiddling with the sand with her pruned hands, the only hands that she depended on since the age of fourteen. The deep and penetrating look stunned me, those eyes looked like as if they were made of dark glassy stones, and she had the face that gives away the years of hardship she has been through. â €Å"What do you want?You need to think more for yourself, you need to take long naps, relax, be selfish! † she could see that I was nervous, so she began laughing, and I was suddenly tranquilized again in her warmth. â€Å"You need something to handle the sunset in Istanbul, it is the strongest and the most passionate sunset in the world! So, here you go / take mine and Make the world golden for you! † I took the Guess sunglasses from her hand, and as I put them on, the sky began to be ripped in half by the sunlight, with splashes of purple and red. That day a journey started and the end is written in the sky†¦

Challenges Facing Developing Countries

Information document B Interoperability problems in the developing countries 1. Introduction1 2. Developing countries2 3. CIS and Europe4 4. Asia-Pacific5 5. Americas8 6. Africa10 Introduction The ITU has made significant commitments to developing countries in a series of instruments: †¢ Article 17 of the ITU Constitution that the functions of ITU-T are to be performed â€Å"bearing in mind the particular concerns of the developing countries†; †¢ Resolution 123 (Rev. Antalya, 2006) on bridging the standardization gap; and Resolution 139 (Antalya, 2006) which invites Member States to implement rapidly Resolution 37 (Rev. Doha, 2006) of the World Telecommunication Development Conference on bridging the digital divide. Between the developing and developed countries there is a general digital divide of which one part is the standardization gap. This is recognised in Resolution 44 (Johannesburg, 2008) as having three dimensions: †¢ The disparity of voluntary standard ization; †¢ The disparity of mandatory technical regulations; and †¢ The disparity of conformity assessment.Resolution 76 (Johannesburg, 2008) on conformance and interoperability testing considered: †¢ that some countries, especially the developing countries, have not yet acquired the capacity to test equipment and provide assurance to consumers in their countries; and †¢ that increased confidence in the conformance of information and communication technologies (ICT) equipment with ITU-T Recommendations would increase the chances of end-to-end interoperability of equipment from different manufacturers, and would assist developing countries in the choice of solutions. Noted: the need to assist developing countries in facilitating solutions which will exhibit interoperability and reduce the cost of systems and equipment procurement by operators, particularly in the developing countries, whilst improving product quality; Resolved: †¢ assist developing countries in identifying human and institutional capacity-building and training opportunities in conformity and interoperability testing; †¢ assist developing countries in establishing regional or subregional conformity and interoperability centres suitable to perform conformity and interoperability testing as appropriate;Instructed the Director of TSB: †¢ to conduct exploratory activities in each region in order to identify and prioritize the problems faced by developing countries related to achieving interoperability of ICT equipment and services; The following sections review the issues of developing countries then the interoperability problems identified by developing countries in the different regions: CIS & Europe, Asia-Pacific, the Americas, Africa and the Arab states. Developing countries The ITU holds developing countries to include three specific categories: Least Developed Countries (LDCs); †¢ Small Island Developing States (SIDS); and †¢ Countries with Economi es in Transition (EIT). It does not define these terms, but uses the definitions provided by the General Assembly of the United Nations and by its Economic and Social Council (ECOSOC). [1] Least Developed Countries (LDCs) can be identified by the following three criteria: †¢ Low-income, a three-year average of Gross National Income (GNI) per capita (under US$ 745 for inclusion, above US$ 900 for graduation); A composite Human Assets Index (HAI) based on: percentage of population undernourished, mortality rate for children aged five years or under, the secondary school enrolment ratio and adult literacy rate; and †¢ A composite Economic Vulnerability Index (EVI) based on: population size, remoteness, merchandise export concentration, share of agriculture, forestry and fisheries in GDP, homelessness owing to natural disasters, instability of agricultural production, and instability of exports of goods and services.While there is considerable overlap between LDCs and SIDS, th e latter face significant additional problems to achieve sustainable development, because of their small populations, limited resources, remoteness, susceptibility to natural disasters and excessive dependence on international trade. The growth and development of SIDS have been disadvantaged by high transportation and communication costs (e. g. , use of satellites in the absence of undersea cables), disproportionately expensive public administration and infrastructure (due to their small size) and the absence of opportunities to create economies of scale. 2] Countries with Economies In Transition (EIT) are those moving from a centrally planned economy to a free market. This requires economic liberalization, the removal of price controls, the lowering of trade barriers, the restructuring and privatization of financial and industrial sectors. It is usually characterised by the creation of new institutions, including private enterprises taking on activities previously performed by the state and new instruments for state governance, such as a national regulatory authority for telecommunications.In the 1990s, these comprised the countries formerly members of the CMEA, some of which are now members of the WTO and the EU. The problems faced in EITs have included the absence of a constructive policy framework, the slowness of the establishment of the network infrastructure, the training of people to use it and to exploit commercially the information and knowledge that it makes available. The issue of interoperability has become more important as countries deploy e-government systems. In order to provide high-quality services to citizens it is important that services can be accessed from the widest possible range of equipment.UNDP has published an e-primer on e-government, setting out the vision and value of interoperability and the steps required to achieve this. It explains the value of e-government interoperability frameworks, the parties that need to be involved an d are the critical success factors. InfoDev has an eGovernment Handbook for developing countries. Despite the enormous progress made in bridging the digital divide and, in particular, the standardization gap, there remain significant problems in terms of conformance and interoperability due to: Lack of human capacity and of training opportunities; and †¢ Weak institutional systems for: o Standardization, o Testing, o Certification, and o Market surveillance. However, the challenges are far from uniform, requiring careful assessment of regional and national circumstances and experiences. CIS and Europe The European Union has legal provisions that directly address interoperability and empower regulatory authorities to ensure the interoperability of systems (see information document C).For example, the EC adopted DVB-H as a common standard for mobile television to achieve interoperability throughout Europe. In 2005, the ITU published a study entitled Towards Interoperable eHealth for Europe with the Telemedicine Alliance. A previous study had identified interoperability as a major obstacle to the implementation of eHealth, which the second report addressed in the form of a strategic plan for trans-national eHealth interoperability. Its aim is to assist stakeholders at all levels in taking action to achieve real and sustainable interoperability. 3] As part of its eHealth Action Plan, the European Commission has adopted a Recommendation on cross-border interoperability of electronic health record systems (2008/594/EC). This will ensure that electronic health record systems interoperate, allowing health professionals from another country to access vital patient information from a home doctor and hospital, improving the quality and safety of medical care. The International Virtual Laboratory for Enterprise Interoperability (INTEROP-VLab) emerged from research projects funded by the European Commission.Its mission is to consolidate, develop and maintain the Europ ean research community in the domain of Enterprise Interoperability. In the United Kingdom, a survey of IEEE 802. 11b/g Wi-Fi usage for the Office of Communications (OFCOM) found a wide variety of problems, many due to causes other than spectrum (e. g. , wired Internet and device configuration errors). Spectrum issues tended to be interference between devices in the 2. 4 GHz ISM band, rather than congestion.However, in the centre of London demands on the band were higher than elsewhere and users experienced both interference and congestion. Interference between different types of radio device lead to a proposal for a certification scheme with a broad ‘2. 4 GHz friendly’ logo rather than the conventional ‘Wi-Fi-friendly’ mark, to help drive acceptance of innovative technologies in that band. Asia-Pacific One of the poorer of the Asian countries was the beneficiary of a sequence of initiatives by national and international aid programmes to assist the evelopm ent of its telecommunications infrastructure. [4] A side effect of this was that the equipment provided or purchased in the different projects were from different manufacturers, often selected by or linked to the donor agency. However, the variety of equipment could not easily be made to interoperate. The effects on the country were to increase the costs of training for its limited pool of technicians and experts (often with international travel), while it reduced the flexibility of use of the equipment.The already limited economies of scale in this country were made worse by fragmentation across different networks and systems, raising the costs for operators and thus for citizens. Within the Asia-Pacific Telecommunity Standardization Programme (ASTAP), the Industry Relations Group (IRG) addresses the needs and concerns of operators and manufacturers. At the 11th Meeting of ASTAP in June 2006 there was a Workshop on Conformity Assessment in the APECTEL Mutual Recognition Arrangement s (MRA).It was recognized that input from industry input into ASTAP and APECTEL could help to improve their operation. The IRG subsequently developed a questionnaire on type-approval and conformity assessment. Between June 2006 and February 2007, responses were obtained from 21 companies and 4 regulators, in Afghanistan, Australia, Iran, Japan, Macau SAR, Papua New Guinea, Singapore and Thailand. This identified issues in terms of: †¢ Costs: o Mandatory in-country testing, rather than accepting certified test results from other countries, Preparation of documentation for submission to the regulator, o Testing to meet specific national standards not aligned with international standards; †¢ Delays: o Time taken to approve a product after documents are submitted, o Testing to national standards not aligned with international standards. The survey identified actions to improve type approval process, including the recognition of certified test reports from other countries by Au stralia and Singapore, and limiting standards in technical regulations to international standards, avoiding national variations.An Asia-Pacific regional compliance mark was proposed, one that would be accepted by all national authorities, without further testing or documentation. The IRG called for national authorities to accept accredited test reports from other countries in order to reduce costs and time delays in type approval. The expansion of telecommunication networks, both in geographic coverage and the range of services, in response to market demand is a continuous process for operators, especially in very rapidly growing Asian markets. Operators have two options: a) Procurement of equipment from the original vendor; or ) Procurement of the best value equipment available at the time, not necessarily from the original vendor. However, the second option is not always possible as equipment from different vendors may not be fully interoperable. The procurement of additional equi pment is, therefore, constrained to be from the original vendor. The practical difficulties faced by this lack of interoperability in two types of networks are explained below. There are many proprietary implementations of Mobile Switching Centres (MSCs), Base Station Controllers (BSCs) and Base Station Transceivers (BTSs).Although the interface between the MSC and the BSC is now considered stable, the Abis interface between BSCs and BTSs is not yet interoperable (see Figure 1). Where additional BTSs are required, in order to meet growing demand, the network operator is constrained to purchase these from the vendor whose BSCs are already deployed. Figure 1Issues related to mobile networks [pic] An operator in India has experienced interoperability issues in the expansion of its GSM network. Its planners assumed that BSCs and BTSs required to be supplied by the same vendor, due to the proprietary interface between the two.However, the interface between the BSC and the MSC, which is a n open standard, required considerable time and effort before interworking could be achieved between equipment from different vendors. Two of the essential components for Intelligent Network (IN) services are the Service Control Point (SCP) and the Service Switching Point (SSP), the latter is normally part of the switch or local exchange (see Figure 2). Consequently, whenever the operator needs to deploy a new switch it has to be purchased from a single supplier, to ensure interoperability with existing infrastructure.Figure 2Issues related to fixed Intelligent Network (IN) [pic] An Indian operator found that SCPs failed to interwork with SSPs from different manufacturers. This issue is considered critical in view of the regulatory requirement to interconnect INs of different service providers. In April 2009, at the CTO/ITU-T Forum on NGN Standardization in Sri Lanka, the issue of non-interoperability was raised. Rajeshwar Dayal from the Indian Department of Telecommunications (DoT) , identified the need for interoperability between and within NGNs (see slides).The following month at the ITU Regional Preparatory Meeting for the Asia and Pacific Region, India proposed that ITU prepare a reference document containing interoperability requirements at the equipment level to help smooth the implementation of NGNs. An NGN Pilot Project by the Iran Telecom Research Center (IRTC) identified a number of problems associated with NGNs supplied by: Alcatel, Huawei, Siemens and ZTE (presented at ITU Kaleidoscope). [5] This acknowledged that NGN was not yet a mature technology and therefore subject to interim problems, that should eventually be eliminated.Tests were conducted initially between equipment of a single vendor, then between different vendors. Problems were identified with the implementations of the ITU-T G. 729 codec and ITU-T H. 248, plus difficulties with the call servers from one manufacturer not being able to control the access, media or signaling gateways of other vendors. The problems had been caused by some vendors not implementing standards completely or having done so imprecisely, while some standards were found to contain ambiguities. AmericasIn the USA, Section 256 of the Communications Act of 1996 requires the FCC to establish procedures to oversee coordinated network planning by providers of telecommunications services. The Act also authorizes the FCC to participate in standards organizations working on network interconnectivity. It is advised by the Network Reliability and Interoperability Council (NRIC), which makes recommendations to ensure, under â€Å"all reasonably foreseeable circumstances†, interoperability of networks, including reliability, robustness, security and interoperability of communications networks.One of the major issues addressed by NRIC in recent years has been to ensure the interoperability of enhanced services for emergency calls (i. e. , to 911). Interoperability for e-government has been addres sed by the Chief Information Officers Council (CIO). Concerns over problems of the non-interoperability of emergency services communication systems became a matter of public concern, following possibly avoidable deaths of firemen in the collapse of the New York World Trade Center on 9th September 2001 and again after Hurricane Katrina. 6] The US Congress called for work to resolve interoperability problems in emergency response communications. [7] To achieve the political objectives, Project 25 (P25) was established as a development process for the design, manufacture and evaluation of interoperable digital two-way wireless communications products for public safety services. The suite of P25 standards is administered by the Telecommunications Industry Association (TIA) and consists of the following interfaces: †¢ Common Air Interface (CAI); †¢ Inter-RF Subsystem Interface (ISSI); †¢ Fixed/Base Station Subsystem Interface (FSSI); †¢ Console Subsystem Interface (CS SI); Network Management Interface; †¢ Data Network Interface; †¢ Subscriber Data Peripheral Interface; and †¢ Telephone Interconnect Interface. The P25 Compliance Assessment Program (CAP) is a partnership between the Department of Homeland Security’s Command, Control and Interoperability Division (CID), the National Institute of Standards and Technology (NIST), suppliers and the emergency services. It seeks to: †¢ Ensure that emergency response technologies meet the needs of practitioners; †¢ Assist officials in making informed purchasing decisions; †¢ Provide vendors with a method of testing equipment for P25 compliance; and Support the migration to standards-based communications systems. As of May 2008, eight private laboratories had been accredited, using ISO 17025, for P25 conformance testing. These can test equipment against standards that ensure radios and other equipment interoperate – regardless of manufacturer – enabling em ergency responders to exchange critical communications. Additionally, there two non-governmental bodies as: †¢ Emergency Interoperability Consortium (EIC); and †¢ OASIS Emergency Interoperability. These work on the development of appropriate standards. Anatel has identified problems with fixed network equipment in: Incompatibilities with: o xDSL: between chipsets in Central Office (CO) and Customer Premises Equipment (CPE), and o GPON: between Optical Line Terminals (OLT) and Optical Network Units (ONU); †¢ Interoperability problems between: o softswitches using SIP and SIP-I standards, o PABX-IP equipment and NGN, and o Call Agent (CA) and Media Gateway (MG), when using the T. 38 fax with MEGACO protocol. Similarly with mobile networks, it has found problems with Inter-RAT (Radio Access Technology): †¢ Voice and data failures going from 2G on 1,800 MHz to 3G on 850 MHz and vice versa; On registration, instead of performing a type 02 a type 00 location update was performed; †¢ With 2G, on moving from 900 MHz to 1800 MHz and vice versa there were voice call interruptions; †¢ Despite automatic network search for 3G on 850MHz band, first tried a type 00 location update with 2G on 1800 MHz; †¢ A loss of network signal with 2 or 3G on any frequency band, terminals failed to repeat network registration when in an area with network signal; and †¢ Where there was no roaming enabled, but a secondary IMSI was available the SIM card terminal did not automatically restart the application for the second IMSI.Africa Much of the ICT equipment in developing countries is old, but has yet to be withdrawn from use, because of limited capital to purchase replacements. The interfaces and protocols of such systems are not able to communicate with any modern systems that are more complex and sophisticated. It required the use of gateways which reduces functionality and increases costs. For example, one international operator wishing to provide lower cost international connectivity into a NE African country had to provide a special gateway to what it considered obsolete technology.Unlike in the developed world, most African countries do not have laboratories to test whether or not communications equipment and systems conform to the required international, regional and national standards, making interoperability testing a challenge. Exceptions include Egypt, Morocco, South Africa and Tunisia (see information document I). Rwanda has seen a profusion of very low-cost GSM handsets. Like India, many of these have proved to be counterfeit, with no proof that they comply with international safety standards or that they conform to network standards and interoperate without causing problems.Tanzania has identified a number of issues shown in Table 1. Table 1Interoperability issues in Tanzania |SN |Item |Positive |Concern | |1 |Antennae have different standards |Incentive to roll out in |Joined networks instead of single network th at | | |for different vendor and types |underserved areas |result in duplication of investment and operational | | |e. . space diversity, combining, |Increased employment |expenditure e. g. spare stock, training | | |polar | | | |2 |New technology (upgrade) |Increased competition |Delays or not possible to access some application or| | |compatibility with old versions |Service differentiation |documents e. g Windows 2003 to 2007 or VISTA. | |but not vice versa | |Forced to change from R2 signalling for circuit | | | | |(packet) switching and later likely to IP else miss | | | | |VAS applications | | | | |Environment issue e. g.Exposure or Recycle of | | | | |absolute equipment such as antennae | |3 |Pre-paid and online payment |Easy customer entry and |Revenue stream authenticity | | |(credit card) |consumer choice of services |National Security issues | | | | |e. g. satellite phones | |4 |Liberalization of International |Competitive tariffs |Cyber security. | |gateways. |Improved q uality of services |With multiple gateways how ccTLD and Internet | | |VSAT, Earth stations, submarine | |exchanges are to be on optimal use. | | |cables and optic fibre | |Incoming international traffic revenue loss? | |5 |Transmission systems. PDH and SDH |Incentive to roll out broadband|Different control and operational procedure (Central| | |and mono mode and DWDM optic fibre|data |operation management systems).Complex and costly | | |Core switch (TeS, NGN) not able to|Possible sharing of capacity |integration for various vendors | | |parent various media gateways, RSU|(infrastructure) |Need to share customer information e. g. from EIR or | | |(xDSL) |Increased employment |blacklist and fraudsters. | | |Access interface V5. 1 and V5. 2 | |Difficult or too costly to integrate various vendor | | | | |equipment in the network.While specializing to a | | | | |single vendor also ties to limited QS, services and| | | | |costly upgrades. | |6 |Revenue assurance systems |Increase Custom er satisfaction |Integration of modules for fixed, GSM and CDMA are | | | |Quality of service monitoring |likely to be too costly | | | | |Integration of data and voice |Few countries in Africa have in place the necessary accreditation systems and technical regulations need to provide a framework for the granting of certificates and licenses for the provision of communications services or the supply of telecommunications equipment. There is a general lack of expertise and human capacity in standardization. African countries have been less able than developed countries to participate in and to influence standards making processes.One consequence of this is that they have been much less involved in the work of devising conformity and interoperability tests and then of conducting the tests of equipment and services. Training in standardization and testing has been insufficient and when available been expensive or involved travel. This has resulted in a lack of understanding of test res ults when they are submitted from accredited laboratories. In particular, there is a lack of understanding of international standards concerning the implementation of interoperability of ICT systems and devices.The large and growing number of producers of standards is seen as confusing, especially since the standards and the resulting equipment and interfaces are mostly not interoperable. As with the Indian example, African operators have encountered problems interoperating BSCs and BTSs from different manufacturers. Some types of equipment conforming to international standards are intended to operate in specific radio frequency bands, but this spectrum may not be available in Africa.This has made the efficient use of radio spectrum one of the key challenges African countries confront and which has brought about interoperability problems. The Southern Africa Telecommunications Association (SATA), a group of fixed incumbent operators, has identified specific interoperability challeng es (see Table 1), relating to NGN equipment. Table 2Southern African interoperability challenges (Source: SATA) Equipment supplier and type |Interoperability problems with | | |Equipment Supplier |Equipment Type | |Huawei Technologies SoftSwitch |Nokia Siemens Networks |Trunk Gateway | |Huawei Technologies SoftSwitch |ZTE |CDMA Equipment (Fax problems) | |Huawei Technologies SoftSwitch |Alcatel-Lucent |WiMAX WAC | |There are several interoperability issues between the BOSS and the Element Managers from different suppliers. | |The standard Northbound interfaces between EM and the OSS are not always open, or the supplier is not willing to open | |those interfaces. | In summary, Africa faces the following problems: †¢ Increased supply of poor quality equipment; †¢ Difficulties in the selection of interoperable equipment from a wide range of vendors; †¢ Lack of testing centres, facilities and trained professionals; †¢ Lack of national or regional laws and regulations ; and †¢ Lack of understanding of ITU-T Recommendations, the conformance tests and their results. ———————– 1] Specific tasks have been assigned by the United Nations to the Office of the High Representative for the LDCs, Landlocked Developing Countries (LLDCs) and SIDS (OHRLLS). [2] The telecommunications needs of SIDS are being studied by ITU-D under Question 23/2. [3] See, for example, European Connected Health Leadership Summit ‘A Manifesto for Connected Health’ [4] Permission has not yet been granted by the country to disclose its name. [5] http://ieeexplore. ieee. org/ielx5/4534704/4542234/04542262. pdf? arnumber=4542262 and http://ieeexplore. ieee. org/ielx5/4115171/4115172/04115219. pdf? isnumber=4115172 [6] Jerry Brito (2007) Sending out an S. O. S. public safety communications interoperability as a collective action problem. Federal Communications Law Journal 59 (3) 457-92. [7] Senate Report 109-088. Departments of Commerce and Justice, Science, and Related Agencies Appropriations Bill, 2006. House Report 109-241. Making Appropriations for the Department of Homeland Security for the Fiscal Year Ending September 30, 2006, and for Other Purposes. ———————– BTS of Vendor A BSC of Vendor A MSC of Vendor A BTS of Vendor B Proprietary/Non-interoperable interface SSP of Vendor B Switch /LE Calling Card User Switch /LE SCP SSP SSP SCP of Vendor A SSP of Vendor A Called Subscriber Proprietary/Non-interoperable interface Challenges Facing Developing Countries Challenges Facing Developing Countries Janita Aalto Principles of Microeconomics ECO 204 Instructor Kathryn Armstrong March 28, 2011 Challenges Facing Developing Countries Developing countries, also known as third and fourth world countries; face economic challenges that first world countries do not face, on a large scale. Poverty, low literacy rates, poor investments in both human capital and domestic capital, poor nutrition and devastation to populations due to the HIVAIDS pandemic contribute to developing countries moving towards development. The primary focus of this paper is to explore the impact the HIV/AIDS pandemic has had on Sub-Sahara African economies and to explore the challenges facing developing countries to stimulate domestic savings. The impact on the economies of some of the African countries is still not completely known. If we look at economic impacts, first we must look at the human cost HIV/AIDS is having on Africa’s economic development and ability to cope with the pandemic. According to an online journal, there are four variables that outline the effects on Africa’s future development: â€Å"Economic research helps to estimate the effects of HIV/AIDS on the African economy and the cost effectiveness of prevention and treatment programmes; Economic theory predicts that HIV/AIDS reduces labour supply and productivity, reduces exports, and increase imports; The pandemic has already reduced average national economic growth rates by 2-4% a year across Africa; Prevention and treatment programmes and economic measures such as targeted training in skills needed in key industries will limit the economic effects of HIV/AIDS†, (BMJ. 2002, p. 232). In examining the economic effects of HIV/AIDS, it is hard to look past the fact that over 17 million African people have lost their lives to HIV/AIDS and has 70% of all HIV/AIDS related cases in the world. These are staggering statistics. As outlined in the above journal article, the mortality rates have ca used a reduced labor supply, reduced labor productivity and reduced exports and increased exports. The population of people hardest hit by the HIV/AIDS pandemic are the prime-aged adults. HIV/AIDS robs industries of both skilled workers and a generation of workers in their prime working years. The associated illnesses and sickness as a result of HIV/AIDS can lead to high absenteeism which impacts labor productivity. The effects of a reduced labor supply and reduced labor productivity, â€Å"reduces exports, while imports of expensive healthcare goods may increase. The decline in export earnings will be severe if strategic sectors of the economy are affected. The balance of payments (between export earnings and import expenditure) will come under pressure at the same time that government budgets come under pressure. This could cause defaults on debt repayments and require economic assistance from the international community†, (BMJ. 2002, p. 233). In a 1992 macroeconomics a study on the impact of HIV/AIDS in Africa, it was concluded that â€Å"reduced availability of skilled labour would reduce growth rates by about 50% and investment by 75%, that imports of food and other basic products would increase, and that exports of manufactured and other products would decline†. It was also estimated that by 2010, â€Å"South African’s GDP per capita would be some 8% low and consumption per capita would be about 12% lower than would have been the case without the HIV/AIDS pandemic†, (BMJ. 2002, p. 234). The pandemic will have lasting effects on the economic development on the Sub-Sahara African countries without international assistance. â€Å"An important step in limiting the economic effects of the pandemic is to develop comprehensive policies tailored to the needs of the economies of individual countries. These policies will inevitably include the introduction of treatment and prevention programmes but may also include economic measures, such as targeted training of skills needed in key industries†, (BMJ. 2002, p. 234). One way to help stabilize the economy may be to push expensive antiretroviral drugs at â€Å"highly productive groups of socioeconomic groups in specific industries on the basis of their contribution to economic output rather than their healthcare needs†, (BMJ. 2002, p. 235). This would most likely be a controversial plan, but the strategy would help the people in those groups and buy time for skills training and development of a new work force to replace those that will either lose their health or their lives. It would also boost the economy if industry production levels can be maintained and exports of goods can remain at a profitable pace. The pandemic is having a major effect on life expectancy, which has been dropping. â€Å" In Zimbabwe, for example, life expectancy is 40 instead of 69. In seven countries in Sub-Saharan Africa, life expectancies are below 40 years of age†, (CHG, 2009, p. 3). Not only does this impact the work force, but impacts the children, many of whom lose not only one, but both parents, and other family members that might be able to take them in. Instead these children now become a government responsibility, as they are put into orphanages, group homes, etc. It is estimated that there are 15 million orphaned children across Africa. Standards of living are decreasing, and countries that were once starting to make progress both socioeconomically and economically are headed backwards instead of forward. Poverty is increasing as the family breadwinners are dying or becoming incapacitated by their illnesses. If there are savings, those savings are dwindling as people use their savings just to survive. With mainly young adults dying off, the tax base is shrinking which reduces a countries ability to invest in human capital, such as education and health services, which puts pressure on government finances and reduces economic growth. Investment in education is not a priority with the belief that children will contract HIV/AIDS in adulthood. The poor education of children translates into low adult productivity a generation later. This raises important social and fiscal implications for economic policy. The first is the threat of worsening inequality. If the children left orphaned are not given the care and education en joyed by those whose parents remain uninfected there will be increasing inequality amount the next generation of adults and the families they form†, (CHG, 2009, p. 6). Investing in human capital is one of the keys to bringing economic growth to developing countries. According to an online website, human capital is defined as â€Å"the set of skills which an employee acquires on the job, through training and experiences†, (InvestorWords. com). An investment in human capital also includes; development of and access to, health and nutrition programs. â€Å"Recent studies suggest that 40 percent of the population of the developing nations has an annual income insufficient to provide adequate nutrition†, (Case, Fair & Oster, 2009, p. 427). Low nutrition affects health and poor health affects productivity. Low productivity levels then affect the ability to provide for one’s family, let alone provide any surplus that can be sold and the money put into savings. There are two explanations as to why capital is in such short supply in developing countries. The first is the vicious-cycle-of-poverty hypothesis. According to our text, â€Å"the vicious-cycle-of-poverty hypothesis suggests that a poor nation must consume most of its income just to maintain its already low standard of living. Consuming most of national income implies limited savings, and this implies low levels of investment†, (Case, Fair & Oster, 2009, p. 428). Investment is needed for capital stock to grow and for income levels to rise. Without it, â€Å"poverty becomes self-perpetuating†, (Case, Fair & Oster, 2009, p. 428), and the cycle is complete. The second explanation is that there is a lack of financial incentives for citizens to save and invest, as well as a lack of financial institutions. It is common for the wealthier citizens to invest their monies in Europe or the United States instead of in their own countries. The term for this is capital flight, which â€Å"refers to the fact that both human capital and financial capital leave developing countries in search of higher expected rates of return elsewhere or returns with less risk†, (Case, Fair & Oster, 2009, p. 428). According to an online article, â€Å"Africa is estimated to lose hundreds of billions of dollars in domestic revenues annually through capital flight†, (Africa Renewal, 2008, p. 12). In order to reverse this trend, it is imperative that the government remove the barriers that turn away wealthy citizens from investing in their own countries. Without domestic savings, investment isn’t possible. Without investment, growth isn’t possible and this cycle continues much like the vicious-cycle-of-poverty hypothesis. What decisions do leaders of a developing country make in order to stimulate domestic savings and in turn, capital? If I were the President of a developing country, I would invest in human capital and banking reform. In investing in human capital, I would target health and nutrition programs for kids and young adults, the next generation of workers. With life expectancy rates falling, efforts must be made to reverse that trend. A much larger investment in education would be made; incentives for college kids that go to school abroad to return to their home country and work in their field for a required number of years. I would emphasize training and skill development for replacement workers in the industries hit hardest by HIV/AIDS. In investing in banking reform, I would offer incentives to people who put their money in banks and other financial institutions. Some of the reasons African people in particular do not put money in savings accounts are; â€Å"physical distance from banking institutions, high minimum deposit and balance requirements†¦and the considerable documentation needed to open an account†, (Africa Renewal, 2008, p. 7). There are also a limited number of banks available and with over 60 percent of African people living in rural areas, they just don’t have physical access to banks, unless they travel a long distance. In order to convince people to put their savings in banks, interest paid on savings would need to be high and interest rates on loans low. Somehow, people must be encouraged to place their money into savings so money will be available for future investments. â€Å"The UNCDF noted in its 2004 report that in Rwanda about half a million savings passbook accounts, with an average account size of $57, pulled almost $40 mn into circulation in 2001. â€Å" Although this may not appear significant†, argued the UNCDF, â€Å"proper circulation of these funds into credit products could have a significant multiplier effect in the Rwandan economy†, (Africa Renewal, 2008, p. 7). Poverty, low literacy rates, poor investments in both human capital and domestic capital, poor nutrition and devastation to populations due to the HIVAIDS pandemic contribute to developing countries moving towards development. For these countries to become economically viable, the governments must encourage citizens to invest in their own countries and not rely on international assistance. It’s time for both the citizens and the governments to step up and help themselves. References: Case, K. E. , Fair, R. C. and Oster, S. E. (2009) Principles of Microeconomics (9th ed. ) Upper Saddle River, New Jersey:   Pearson Prentice Hall. Dovi, E. (2008) Boosting domestic savings in Africa: From Africa Renewal, Vol. 22#3 (October 2008), page 12, Retrieved on March, 26, 2011, from http://www. un. org/ecosocdev/geninfo/afrec/vol22no3/223-boosting-domestic-savi ngs. tml Economic Commission for Africa, CHG: Commission on HIV/AIDS and Governance in Africa: Africa: The Socio-Economic Impact of HIV/AIDS, Index No. CHGA-B-11-003, Retrieved on March 27, 2011, from http://www. uneca. org/chga/doc/SOCIO_ECO_IMPACT. pdf InvestorWords, Retrieved on March, 20, 2011, from http://www. investorwords. com Copyright ©2011 by WebFinance, Inc. ALL RIGHTS RESERVED. PubMed Central: The impact of HIV and AIDS on Africa’s economic development Simon Dixon, Scott McDonald, and Jennifer Roberts BMJ, 2002 January 26; 324(7331):232-235 PMCID:PMC1122139 ; Retrieved on March 25, 2011, from http://www. ncbi. nlm. nih. gov/pmc/articles/PMC1122139