Conference Proceedings

Conference Proceedings January, 2013 Bangkok, Thailand

2013 BICSS Bangkok International Conference on Social Science

2013 ISSTEP International Conference on Society, Tourism, Education and Politics

The Proceedings of International Symposium on Society, Tourism, Education and Politics ISBN 978-986-88450-1-5 The Proceedings of Bangkok International Conference on Social Science ISBN 978-986-87417-2-0

Contents Program - Oral Sessions ............................................................................... 11 Program - Poster Sessions .......................................................................... 834 Oral Sessions Communication I .......................................................................................... 12 Communication II ......................................................................................... 26 Culture I ........................................................................................................ 49 Culture II....................................................................................................... 70 Economics .................................................................................................. 100 Education I.................................................................................................. 141 Education II ................................................................................................ 148 Education III ............................................................................................... 179 Education IV ............................................................................................... 217 Education V ................................................................................................ 239 Finance I ..................................................................................................... 284 Finance II .................................................................................................... 316 Law I ........................................................................................................... 355 Law II .......................................................................................................... 364 Management I ............................................................................................ 411 Management II ........................................................................................... 449 Management III .......................................................................................... 499 Politics I ...................................................................................................... 534 Politics II .................................................................................................... 570 Politics III .................................................................................................... 605 Psychology I ................................................................................................ 644 Psychology II ............................................................................................... 663 Psychology III .............................................................................................. 673 Society I ......................................................................................................710 Society II ..................................................................................................... 723 Society III .................................................................................................... 743 Society IV .................................................................................................. 752 Tourism....................................................................................................... 796 Poster Session Communication .......................................................................................... 834 Culture........................................................................................................ 834 Economics .................................................................................................. 838 Finance ....................................................................................................... 838 Education I.................................................................................................. 848 Education II ................................................................................................ 882 Law 915 Management .............................................................................................. 915 Psychology .................................................................................................. 915

1

Welcome Remarks from the Committee Dear all, On behalf of the Higher Education Forum and Asia-Pacific Education and Research Association, it is our pleasure the welcome you to the joint conferences of 2013 Bangkok International Conference on Social Science (BICSS) and 2013 International Conference on Society, Tourism, Education and Politics (ISSTEP). Since this is the first time we held the joint conferences in Bangkok, we have received a lot of positive feedback from the participants and it has been expanding gradually.

This year we have received many papers from different countries all over the world, including Australia, Canada, Hong Kong, India, Indonesia, Iran, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, Turkey, and United States of America. It relies on the solid cooperation of numerous people to organize a conference of this size. Hence, we appreciate everyone who support as well as participate in the joint conference. Last but not least, we would like to express our gratitude to all the authors, session chairs, reviewers and participants for their contribution to us. Thank you again for participating in this year’s conference. We hope you enjoy it and find this experience inspiring and helpful in your professional field. Also, we do look forward to seeing you at our upcoming conference next year.

The 2013 Program Committee

2

General Information for Conference Participants Information and Registration The Registration and Information Desk will be situated in the Pullman Bangkok King Power on the second floor, and will be open at the following times: Saturday, January 26 (08:15-16:00) Sunday, January 27 (08:15-16:00) Parallel Sessions Parallel Sessions will run on January 26th and 27th . Sessions are usually 90 minutes in length. Presentations and Equipment All presentation rooms are equipped with a screen, an LCD projector, and a laptop computer installed with PowerPoint software. You will be able to insert your USB flash drive into the computer and double click on your presentation to open it in PowerPoint. We recommend that you bring two copies of your presentation in case of one fails. You may also link your own laptop computer to the projector cable, however if you use your own Mac please ensure you have the requisite connector. A Polite Request to All Participants Participants are requested to arrive in a timely fashion for all addresses, whether to their own, or to those of other presenters. Presenters are reminded that the time slots should be divided fairly and equally between the number of presentations, and that they should not overrun. The session chair is asked to assume this timekeeping role.

Poster Sessions & Poster Requirements Materials Provided by the Conference Organizer: 1. X-frame display & Base Fabric Canvases (60cm×160cm) 2. Adhesive Tapes or Clamps Materials Prepared by the Presenters: 1. Home-made Poster(s)

3

Requirement for the Posters: 1. Material: not limited, can be posted on the canvases 2. Size: smaller than 60cm*160cm

4

Conference Organization BICSS Committee Board Professor Gad Barzilai Professor Debra Friedman Professor Christian C.P. Wolff Professor Jolanta Babiuch-luxmoore

University of Washington (United States) Arizona State University (United States) University of Luxembourg (Luxembourg) Oxford Brookes University (United Kingdom) Rutgers, The State University of New Jersey (United States) Columbia University (United States) University of the Sunshine Coast (Australia) University Technology Malaysia (Malaysia) London Metropolitan University (United Kingdom) University Malaysia Sabah (Malaysia) Kyungpook National University (Korea) Tulane University Law School (United States) Chungnam National University (Korea) University of Strathclyde (United Kingdom) The Open University (United Kingdom) University of Miami (United States) Victoria University of Wellington (New Zealand) Khulna University(Bangladesh) Queensland University of Technology (Australia) Syracuse University (United States) Kyungpook National University (Korea) University Technology Malaysia (Malaysia) University of Miami (United States) National University of Singapore(Singapore) University Malaysia Sabah (Malaysia) San Francisco State University (United States) SUES University Payame Noor University University of Konstanz Ferdowsi University of Mashhad IBA University University of Colombo University of Mysore Manasagangothri Mysore St. Dominic College of Asia Institute of Business Administration

Professor Marc Holzer Professor Hassan Abbas Professor Sajid Anwar Professor Wan Khairuzzaman Wan Ismail Professor Elesa Argent Professor Jennifer Chan Kim Lian Professor Jeong, Kiho Professor Vernon Valentine Palmer Professor Keunyeob Oh Professor Tom Baum Professor Allen, John Professor Otávio Bueno Professor A.J.W. Taylor Prof. Dr. Md. Ghulam Murtaza Professor Christina Hong-Joe Professor Horace Campbell Coordinator Committees Professor Durrishah Idrus Professor Edward Erwin Professor Hui Tak-Kee Professor Noorhayati Mansor Professor Sam S. Gill Professor Xu Jing Professor Ali Zamani Alavijeh Professor Angelos Giannakopoulos Professor Rajabali Askarzadeh Torghabeh Professor Talat Ayesha Wizarat Professor Wijitapure Wimalaratana Professor K .V. Aiahanna Professor Dino Talento Ubalde Professor Huma Naz Siddiqui Baqai 5

Professor Xiwu Feng Professor Mohamed Elkhouli Professor Avadhanula Vijayakumar Babu Professor Inta Brikse Professor Md. Abdul Jalil Professor Carolina Gonçalves Professor Akbar Salehi

City University of New York-LaGairdia Sadat Academy For Management Science Osmania University University of Latvia Shahjalal University of Science and Technology Instituto Politécnico de Lisboa Tarbiat Moallem University (Thran, Iran)

6

ISSTEP Committee Board Professor Abbas Madandar Arani Professor Aijaz Ali Wassan Professor Asadullah Naghdi Professor Cesar Correa Arias Professor Dharam Vir Mahajan Professor Eduardo Erazo Acosta Professor FU Wai Chee Ada Professor Habibollah Abolhassan Shirazi Professor Ilango Ponnuswami Professor Jagpreet Kaur

Lorestan University University of Sindh Bu-ali sina university University of Guadalajara N. A. S. Post-graduate College University of Nariño The Chinese University of Hong Kong Tehran Azad University Bharathidasan University Punjabi University Ismail National Girls Post-graduate College SRTMU Nanded UGC Islamic Azad University Autonomous College University of Swaziland University of Swaziland Nagpur University Nirma University Konkuk University Silpakorn University

Professor Kamlesh Mahajan Professor Mahadev Haridas Gavhane Professor Maryam Jalalifarahani Professor Mukti Kanta Mohanty Professor Raj Kumar Yadav Professor Rajan Mathew Professor Raju Pandurangji Lipte Professor Ravi Saxena Professor Sunyang Chung Professor Theeraphong Bualar

7

Special Thanks Session Chairs Canan Mesude Ozturk Inta Brikse Cheryl Dangatan Taclawan Ahmet Bulent Alaner Yihong Yu Anson Yang Bob G Barrett Yarong Jiang Ashley Farhad Shafiepour Motlagh Lucille D. Evangelista Namryoung Lee Farooq Salman ALani Roni Rosenberg Henry N Pontell Jagdeep Jassel Anna Maria Vasquez Rivera Mozart B.C. Menezes Ephraim Kahana Azi Lev-On Shivali Agarwal Hasida Ben-Zur Cezar Giosan Basem Essa Al Atom Charles John Emond Elizabeth Monk-Turner Lai-ching Leung Kai-Chieh Hu

Anadolu University University of Latvia Saint Louis University Anadolu University School of Music And Drama Fudan University King Ling College American Public University University of Wyoming Islamic Azad University Batangas State University Korea Aerospace University University of Brunei Darussalam Carmel Academic Center, Law School University of California INTI International University Batangas State University University of Calgary Western Galilee College Ariel University Center Ismail National PG College University of Haifa Berkeley College Jordan University of Science and Technology Webster University Old Dominion University City University of Hong Kong Soochow University

8

Conference Schedule

Friday, January 25, 2013 Committee Meeting (Committee Only)

Saturday, January 26, 2013 Time 08:15-16:00 08:45-10:15

10:15-10:30 10:30-12:00

12:00-13:00 13:00-14:30

14:30-14:45 14:45-16:15

Information Registration (2F) Oral Session Beta II, Communication I Oral Session Delta, Finance I Oral Session Epsilon, Psychology I Tea Break / Poster Session Oral Session Beta II, Society I Oral Session Delta, Economics Oral Session Epsilon, Education I Lunch Time Oral Session Beta II, Law I Oral Session Delta, Management I Oral Session Epsilon, Education II Tea Break / Poster Session Oral Session Beta II, Culture I Oral Session Delta, Education III Oral Session Epsilon, Politics I Oral Session Gamma, Politics II

9

Sunday, January 27, 2013 Time 08:15-16:00 08:45-10:15

10:15-10:30 10:30-12:00

12:00-13:00 13:00-14:30

14:30-14:45 14:45-16:15

Information Registration (2F) Oral Session Beta II, Psychology II Oral Session Delta, Education IV Oral Session Epsilon, Law II Oral Session Gamma, Psychology III Tea Break / Poster Session Oral Session Beta II, Communication II Oral Session Delta, Politics III Oral Session Epsilon, Management II Lunch Time Oral Session Beta II, Culture II Oral Session Delta, Finance II Oral Session Epsilon, Society II Oral Session Gamma, Society IV Tea Break / Poster Session Oral Session Beta I, Management III Oral Session Beta II, Society III Oral Session Delta, Education V Oral Session Epsilon, Tourism Management

Monday, January 28, 2013 Bangkok City Tour

10

Pullman Bangkok King Power Floor Plan

2F

BETA II

BETA I

11

Program - Oral Sessions Communication I Pullman Bangkok King Power, BETA II 2013/1/26 Saturday 08:45-10:15 Session Chair: Prof. Canan Mesude Ozturk B108 The Effects of Political Ads on Electors: Which ad for which elector? Omer Kutlu︱Anadolu university B109 Turkish Journalists’ View of New Communication Technologies Tezcan Ozkan Kutlu︱Anadolu University B290 How Can We Measure the Brand Value of Special Events and Set Its Measurement Constructs? Levent Ozkocak︱Anadolu University B348 How Much Effective CSR Reporting for Corporate Reputation Canan Mesude Ozturk︱Anadolu University B218 The Role of Electronic Words of Mouth (eWOM) in Shaping the Future of Malay Film Industry Abdul Aziz Azizam︱Universiti Teknologi Mara Azizul Halim Yahya︱Universiti Teknologi Mara B592 The Ethics of Digital and Visual Manipulation - What Must the Academic and Professional Communities Do to Address the Problem? Gary Swanson︱University of Northern Colorado

12

B108 The Effects of Political Ads on Electors: Which ad for which elector? Omer Kutlu Anadolu university

The area where the level of control exercised by political candidates or parties in presentation of messages hits its climax is the political ads, in political communication. Political advertising is considered as one of the most vital tools of political campaigns. In fact, political advertising has become the most essential mode of communication between politicians and their target communities. While political advertising is used by political candidates and/or parties to influence the resultant outcomes of elections, it can be used for raising awareness among elections on political concerns and presentation of candidates and parties properly in the intended way, as well. Ads, being one of the key tools of marketing, are also used intensively in political communications, especially during electoral campaign periods. In such a process that weighs this much importance on political ads, this particular means of communication need to be exploited in the most effective way, by political candidates or parties. In the process of political persuasion, proper selection and implementation of the way of addressing the voters through the political ads is essential for obtaining the sought effect. At this point, the concept of appeal comes to the forefront, as used in design and implementation of ads. The type of appeal to be chosen for conveying whatever message is to be delivered to the electing public should be selected in a wise and mindful manner, during the creative process. The processors need to know which type of appeal yields which effect and to what extent, on each particular group of electors. This study lays focus on varying effects of each type of appeal employed in political ads. The study adopted the use of content analysis and elector focus group techniques as its working methodology. Keywords: Political communication, Political advertising, Advertising appeals

13

B109 Turkish Journalists’ View of New Communication Technologies Tezcan Ozkan Kutlu Anadolu university

With new media and emerging communication technologies, significant changes are being experienced worldwide, in the nature of journalism for the last twenty years. Accordingly, the number of studies aimed at exploring the new media environment equipped with the emerging communication technologies increases daily. The reason underlying this interest is that the digital based new communication technologies, which has turned traditional rules of journalism upside-down, altered the ways of doing business. As of today, the level achieved by Internet and digital technologies has caused fractures in traditional journalism and led to a bran-new understanding of journalism, which has its own dynamics. The convergence of communication technologies in an highly integrated manner is what paved the way for this new type of journalism. However, the present-day concerns or problems brought by the change experienced for media professionals present a multi-dimensional and important research topic. The cultural dynamics in which media finds itself, as a social institution, vary from one country to another. The attitudes and opinions of journalists working in the national media organizations, which can hardly stay unaffected by the changes happening in media at a global scale can be determinant at this point. This study intends to learn the attitudes and thoughts of journalists employed by the Turkish national media about new communication technologies. It employs the survey method to investigate journalists' attitudes and thoughts about new communication technologies and their digital media usage patterns. Keywords: New media, new communication technologies, journalism, survey, attitude scale

14

B290 HOW CAN WE MEASURE THE BRAND VALUE OF SPECIAL EVENTS AND SET ITS MEASUREMENT CONSTRUCTS? Levent Özkoçak Lecturer, Department of Public Relations and Advertising, Eskisehir, Turkey E-mail: leozkocak@anadolu.edu.tr

Abstract Keller1 (1993) defined the concept of Consumer-based brand equity as the differential effect of brand knowledge on consumer response to marketing of the brand. Author found two general motivations for studying brand equity. One was financial based for estimate the value of brand and the other was the value of consumer-based brand equity. The concept of consumer-based brand equity which will considered in this study, had discussed four basic dimensions: Brand awareness, perceived brand quality, brand loyality and brand associations. Too many brand’s consumer-based brand equity had measured by these constructs. After setting the basic constructs, it could be possible to measure of places’and people’s consumer-based brand equity. But past two decades, brand equity has been a priority topic for both practitioners and academics. A new framework for conceptualising brand equity that distinguishes between brand equity, conceived of as an intrapersonal construct that moderates the impact of marketing activities. Such a distinction is important because, from a managerial perspective, the ultimate goal of brand management and brand equity research should be to understand how to leverage equity to create value. In this study, author will discuss the consumer-based brand equity of special events in brand equity measurement tools and try to set the basic measurement constructs.

[1] - 22

Keller, K. L., Conceptualizing, measuring, and managing customer-based brand equity, Journal of Marketing, 1993, pp. 1

15

B348 How Much Effective CSR Reporting for Corporate Reputation Canan Mesude Ozturk Associate Prof. Dr. Mesude Canan Ozturk Anadolu University Communication Science Faculty Department of Public Relation and Adverting Tel: 0 222 335 05 80/ 5236 Cell: 0 532 557 29 02 Fax: 0 222 320 45 20 mozturk@anadolu.edu.tr

Corporate social responsibility practices are the subject which all compaies are interesed in Turkey. Companies would like to get the reputation, to admire form the society, to provide the continuity of companies in the long term. The using of corporate social responsibility (CSR) reports is increasing in last years. The CSR reporting is captured and institutionalised, limiting its empowering. CSR reporting is could be conceived part of reputation management processes. The companies attempt to manage their reputation
 by their CSR reports. The purpose of the study is to evaluate the characteristics of corporate social responsibility reports which are in the content of corporate social responsibility in Turkey. In this context, the reports are handled which are managed by “The Biggest 100 Companies in Turkey”. For this purpose, web sites of these companies are analyzed for the reports as online reports or downloadable The study is realized by the content analysis that is one of the qualitative research method by investigating the web sites of the given 100 companies.

16

B218 The Role of Electronic Words of Mouth (eWOM) in Shaping the Future of Malay Film Industry Abdul Aziz Azizam Postgraduate student, Faculty of Communication & Media Studies, UiTM, Malaysia Email: abdulazizazizam@yahoo.com Azizul Halim Yahya, PhD, Professor Faculty of Communication & Media Studies UiTM, Malaysia Email: azizul928@salam.uitm.edu.my

Abstract The growth of the Malay film industry in Malaysia nowadays has rapidly increased, compared to a few years back. This phenomenon occurred due to the popular demand by the Malaysian audience. EWOM also can be seen as an effective tool that can help to create the demand. Recently, many Malay films are able to compete with the Hollywood movies in terms of box office collection. One of the reasons is that, Malay industry has discovered the sequences of innovative technologies such as CGI (Computer Generated Imagery), Green Screen, and also eWOM. The electronic words of mouth or (eWOM) has become one of the most popular topics recently. In Malaysia, the evolvement of the Malay films can be seen as a considerable effect of eWOM. However, there are still minimal studies done in Malaysia regarding the role of eWOM towards film, especially the Malay film production. Hence, the focus of the study is to understand and determine the role of eWOM towards the Malay film industry. The aim of this study is to understand the role of eWOM that underwrites the evolvement of the Malay film industry. This study is an exploratory thus; referrals sampling technique is being chosen to accumulate the data through several in-depth interview sessions and focus group. Keywords: Electronic words of mouth (eWOM), Malay Film

Introduction The emergence of the new social media does not only help to increase the development of Malay film industry, but it is also a creation of a new concept of communication. Today, internet has become one of the most important communication tools and to be able to gain access and utilize internet is a must. The existence of web 2.0 extends the ability of communicating to a stage that we could never have imagined before and it will keep on changing over time to improve the communication ability. In social media, people are able to express their feelings, thoughts, experiences, and etc. These statements are called the electronic word of mouth (eWOM). There were many studies conducted in other countries regarding the eWOM and the effects toward the product or services. Therefore, in this study the researcher would like to understand and determine the role of eWOM in the Malay movie viewers.

Problem Statement From the study done by Peter & Olsen (2002), it is stated that the power in influencing consumer-decision making is determine by WOM (word of mouth) which is, non-commercial medium of marketing. The audience/consumer will seek not only information given by the marketers and producers but they will also refer to their friends, acquaintances or even other consumers as a source of information (Herr; 1991). This is one of the reasons why the film producers should consider eWOM as one of the most important sources of information to gain audiences to watch the movies that they have produced. The Malay Film audiences nowadays are actively seeking for additional information rather than just relying only on information provided by the film producer ordinary marketing, such as poster, thriller, TMO, advance screening and etc. Juo-Ping Lo (2010), in his study, has found out that a person who uses Facebook as an instrument for

17

eWOM, as well as searching, sharing and receiving movie information is significantly correlated to their likelihood of going to see the movie. This study had shown a positive response between eWOM via Facebook and the probability of having the tendency to go and watch the movie. Consequently, even the evolvement of the new technologies seems to be a firm factor in developing the Malay film industry. Nevertheless, there were just a few investigations done to measure and determine the effectiveness of the Malay film through the eWOM. Past studies have shown that eWOM is very important in our lives and it is becoming one of the most important elements to be considered in the recent decision making process (Shankar & Batra 2009). However, there was no research recorded to study the effects of eWOM towards the Malay film. What is the function of eWOM in affecting the Malay film industry? How could eWOM shape the new landscape of the Malay film development? These are the dominant issues that will be leading the study. The researcher would like to explore the function of the eWOM and determine whether it is able to extend the understanding about the new power of communication tools nowadays, which is affecting the Malay film industry. This study aims to contribute to the extensions of literature by examining the effects of eWOM towards the Malay movie viewers. Thus, the researcher would like to propose the following research question:

Research Questions RQ 1: What is the function of eWOM towards the Malay Film Industry? RQ 2: How significant is eWOM towards influencing the audiences?

Rationale of the research This study is relevant in the communication field and Malay film industry because it is based on the major fundamental of interpersonal communication which is the core of communication itself. The eWOM is a form of communication that involves three basic communication models which are the sender, the message, and the receiver (Yolanda et. al. 2010). From the study, we can gain a better understanding of the eWOM in order to emphasize the volume of movie-goer.

Literature Review Electronic words of mouth (eWOM) The advancement of the new technologies creates a new unique platform of communication. The definition of electronic words of mouth (eWOM) communication is referred to the statement made by potential buyer, actual, and former buyer. The statement can be positive or negative regarding the product or services or company via the internet (Hennig-Thurau; 2004). This occurs due to the enhancement of new technologies which is the replacement from web 1.0 to web 2.0 at the end of 2004. Web 2.0 gear (e.g.: social network, forum, weblog, etc) allow people not only to read and but can also inscribe. Web 2.0 helps the user to easily utilize (read, listen, watch, download, search, and buy), create (personalize, aggregate, and contribute), share (publish, upload), facilitate (tag, recommend) and communicate (send messages, post comments, rate, and chat) online (Siti Ezaleila Mustafa and Azizah Hamzah; 2011).Thus, these activities allow audience without boundaries to share their thought and provide the platform to the audience to actually exchange the information regarding to the product (Lee, Park, and Han, 2008). Over the years, studies in many fields have shown that the most influential agent in communication is by word of mouth. In a study conducted in the year 1898, Gabriel Tarde defined that the strongest agent of imitation, propaganda of sentiments, idea and mode of action are conversations (Graham and Havlena; 2007). These reports tell us that the most powerful mechanism to persuade is word of mouth. The study done by Katz and Lazarsfeld 1955 also mentioned that the most influential source of information is word of mouth. This influenced power is limitless. It can influence people in many ways. Words of mouth influence for the purchase of many household and food product and many more. Some scholars also believe that word of mouth is more effective than any ordinary promotion tools like personal selling, newspaper, radio and magazine (Herr, Kardes, and Kim; 1991, Kart, Lazarsfeld; 1955), thus making WOM as a powerful communication mechanism. As the world evolves, the new media technologies create the improve version of electronic words of mouth –eWOM. It is a new platform of communicating and it is more powerful because it is allocated 18

in the web. The whole world can share and gain information from regardless of their segmented locations. Today eWOM becomes a buzz agent in marketing and able to reduce company advertising expenditure (Trusov, Bucklin, and Pauwels 2009). The existence of eWOM becomes the source of reference to the audience as reliable information toward certain product or services. There are several studies stated that there are strong connections between online word of mouth and marketing sale (Dellaracos, 2003; Duan, Gu, and Whinston,2008; Elberse and Eliashberg, 2003; Liu, 2006; Moon, Bergey & Lacobucci, 2010). The positive response on eWOM regarding certain product will be reflected in the increase sales of the product involved. The eWOM is becoming one of the most important influences towards the customer purchasing decision (Shankar and Batra 2009). From the literature, we can see that the new platform of gathering idea is on the web. Audiences like to share something about their interest, their thought regarding a film, and the most effective way to express the idea is on the web. In result, the researcher would like to study the effects of the eWOM towards the development of the Malays Film. The study regarding word of mouth affecting film is not a new field. Anindita, Yong Liu, and Tridib Mazumdar studied the Differential Effect of Online Word of Mouth and Critics’ Review on Pre-release Movie Evaluation. In this study, they focus on two main subjects which are 1) Moviegoer are considered to be heterogeneous in their movie going frequency and word of mouth and critical review currently available and views expressed in the two messages are conflict. They are using three experiments with natural stimulation and they found that the persuasive effect of online word of mouth is stronger on infrequent than on frequent moviegoers, especially when it is negative. The other study was done by Wenjing Duan, Bin Gu, and Andrew B. Whinston (2008) they examine the Persuasive Effect and Awareness Affect of Online User Reviews on Movie’s Daily Box Office Performance. They found out that the rating of the online user review has no significant impact on movie box office revenues after accounting for the endogeneity, indicating that online user reviews have little persuasive effect on customer purchasing decisions. In their research, they also found that the box office sale was significantly influence by the volume of online posting will suggest the importance of the awareness effect. The other research focus on the other perspective of the online word of mouth which is also affecting the moviegoer, like The Role of Prerelease Media Publicity and Online Word Of Mouth in Driving Moviegoing (FengWeng, Yin Zhang, Xiaoling Li, and Huawei Zhu; 2010). This is because they are focusing on the pre-release publicity. Young Liu by his research Word of Mouth for Movie: Its Dynamic and Impact on Box Office Revenue came out with the two measurements of valence and volume. The valence referred to the content of the eWOM which reflects to the audience thought and also attitude and the volume is referring to the frequency number of posting. From the previous literature, experts are looking at the power of the eWOM as the new power that can bring a big impact towards the products or services. From the view of the business or industry field, this seems to be a hot spot exploration. This is because when we get the key, we will comprehend the market and also boost the productivity. Otherwise from the view of the social science specifically interpersonal communication, this area is the new wave of communication that keeps thousands of answer that can help to understand human better. In the study of the effect of eWOM towards the Malay film, researcher would like to discover the effects of eWOM from any sources in the web especially the social network. The researcher has strong beliefs that the audience’s intention to the movie is not only influenced by the positive eWOM, but also could be aroused because of the negative eWOM comments regarding the film as well. Furthermore, the study focuses on the Malaysia landscape and the result could help to improve the Malay film industry by bringing to another level. Malay Film The first film was said to arrive in the Malay States in 1898. A documentary about Queen Victoria’s Silver Jubilee was the very first film arrived in Malaya (Lent 1978). 40 years later, the first local Malay films were produced in 1938, which were entitled Laila Majnun and Nelayan (Hamzah Hussin 2004). Laila Majnun film was a very popular film among the society during that time. Uniquely, the producer was an Indian, but the film was totally produced in Malay dialogue. A film made in the Malay language, telling Malay stories, is currently termed as a Malay and Malaysian film (Mahadi J. Murad: 2012). The landscape of the Malay film industry is very unique. The contribution from various race and people created a wonderful pattern shaping their very own style of film industry. Film is a medium of communication, and it transfers a message to the audience just like the other form of mass media platform. Most of the films were produced were not only intended to gain profit, but at 19

the same time a film is a medium to structure the meaning toward society. Juliana Abdul Wahab dan Mahyuddin Ahmad (2009) added that the film itself is an agent to maintain the social order. This statement has shown that the film Industry is important towards the national building especially for a developing country like Malaysia. The government of Malaysia response concerning the development of the film industry in Malaysia is very important thus, “To further promote and develop the local film industry, Perbadanan Kemajuan Filem Nasional Malaysia (FINAS) will focus on capacity building activities to develop highly skilled human capital in film-related fields”. This statement was stated in the Ninth Malaysia’s Plan in Chapter 23, Enriching Culture Art and Heritage. FINAS was established in response to the film community’s call for Government assistance to improve and to speed up the development of the local film industry. Since its inception, FINAS has provided training programs relating to the film industry; by making available services, facilities and filming equipment to film producers, distributors and exhibitors; and participated in international film festivals, exhibitions and seminars or any activity of a similar nature both inside and outside the country. In its effort to upgrade the quantity and quality of films produced locally, FINAS has implemented several schemes such as the Incentive Scheme, the Production Facility Scheme and Equipment Rental. The role of FINAS is very important in the Malay Film industry. FINAS helps the growth of the current film Industry to be one of the top film productions in East Asia.

Year/Film 2005 2006 2007 2008 2009 2010 2011

Table: 1 Malay Film Industry Number (mil) of Malay Film Viewer Total Gross Collection (mil) by Malay from 2005-2011 Film Language from 2005-2011 3.74 26.71 4.00 29.62 3.73 30.00 5.29 43.93 6.03 50.84 9.44 81.57 13.14 124.92 Note: The statistic data retrieved from Finas.gov.my

From the table above, we can see clearly the number of viewers of the Malay film from the year 2005 until 2011 and also the gross collection ticket sale for Malay film. Overall, the number of Malay film’s viewer is getting bigger each year. This makes the Malay film industry as one of the most consistent markets to the investor or producers. Comparatively, the table above seems to have never experience any reduction. Each year from 2005 until 2011, the number is increasing and the higher margin can be seen between the year of 2010 and 2011. The Malay film industry in Malaysia is evolving from a year to another. This evolvement efficiently shows that the current industry is very firm and successful. The Malay film is already heading towards the right direction. From the literature, we know that the evolutionary of the Malay film cannot happen by itself. The supports from the government become the core of the current success in film productions. Thus, in order to disseminate effective message in order to keep to momentum of the Malays film, this study will explore the new perspective of understanding of how the eWOM play a vital role that contributes in shaping the future the Malay film Industry.

Methodology In this study, the researcher has explored the whole concept of understanding audiences and people from the industry perspective towards the eWOM. Thus, this has embarked the understanding of the function of eWOM towards the development of the Malay films. For this research, the researcher uses qualitative method which is focus group study and in-depth interview. The main advantage of focus group is the purposeful use of interaction and communication between the respondents to generate the data. (Merton et al. 1990, Kitzinger 1996, Morgan 1996). The purpose of a focus group is to collect in-depth information from a group of people which represent the population of interest. Both data collection techniques carried out the bottomless data of information. From the data, researcher has pulled out the theme which supported the objectives of the study. Participant For the focus group, eight (8) informants (4 = Male, 4=female, 4=Working, 4 =Students) were selected 20

by referral sampling technique. From the literature, the main movie goers are coming from the youth, within the age of 16 to 21 years old. For the in-depth interview, numerous people from the industry of Malay filmmaking have been selected. The reason is to have two different perspectives to maximize the understanding about the eWOM in the Malay film industry. Materials and Procedure In order to ensure the validity of the study, the understanding of audience regarding to the subject that needs to be discussed in focus group and the in depth interview is important. To ensure that the informants understand the subject which is eWOM, the researcher demonstrated and explained the definition of electronic words of mouth (eWOM) to the audience clearly. In this study the researcher decided to apply the four basic steps of collecting qualitative data which was suggested by David L. Morgan (1998). These four basic steps are planning, recruiting, moderating, and analyzing and reporting. These procedures were used both in the process of data collection from the focus group and also in-depth interview. Step 1 – planning: Clarify the research question and interview questions that need to be asked during the focus group and in-depth interview. All interview questions will cover and answer the thorough research question. Two set of interview question was prepared for audience focus group and industry in-depth interview. Both sets of question were set to answer the research questions. During this phase, the researcher also prepared the location/venue, all supporting material and electronic device that need to be used during the conference session. Step 2 – recruiting: Selecting and managing respondents will ensure the good return from them (Morgan:1998). The source of the participant for this study will be collected using referrals technique. This technique allows the researcher to reach one person who produces another several names (Morgan:1998). For this study, researcher will set up one focus group consists of eight people and two industry people. These selected informants provided different angle of information.

No 1 2 3 4 5 6 7 8

Informants Zhafran Ruhil Aishah Geraldine Nuha Farid Danial Ridwan

No

Informants

Table 2: Focus group Age Gender 21 20 20 19 18 21 21 19

Male Female Female Female Female Male Male Male

Occupation Barista Student Student Model/Freelancer Not working Cashier Student Student

Table 3: In-depth Interview Age Gender Occupation

1

Hashim

38

Male

2

Rizal

41

Male

Film director/ commercial filmmaker Film director/ indie filmmaker

Period of using Social network 4 years 5 years above 5 years above 5 years above 5 years above 4 years 5 years above 5 years above

Period of using Social network 5 years above

5 years above

Step 3 – moderating : For focus group, moderator will take charge of guiding the discussion and listen to what the group members have to say but cannot participate, share views, engage discussion, or shape the outcome of the group interview (Krueger: 1998). According to Basch (1987), he mentioned that the role of a moderator is to generate the non-threatening supportive climate that encourages the entire respondent to share views, interjecting probing comment, transitional question, and cover the entire key question. For this study, the moderator will devote some time to clarify the definition of the topic that will be deliberated and refine the terms. The understanding of the informant towards the subject is important to ensure the data is stand corrected. Step 4-analyzing and reporting: The data collected will be transcribed later and will be analyzed using the thematic analysis. The thematic analysis allows the researcher to explore the pattern, and the main idea of the collected data and it is also a method used for ‘identifying, analyzing and reporting 21

patterns (themes) within data’ (Braun & Clarke, 2006)

Findings and Discussion In this study the researcher combined the focus group data and correspondingly, the in-depth interview data under thematic analysis. This activity provided the data from two dimensions which was from the audience and as well as the industry players. These data was combined under a few relevant themes. During the data collection session, all the informants described their experiences regarding eWOM, the current Malay film industry and the most-talked about issues that happened recently. The informants discussed their understanding, awareness and emotional reaction towards the role of eWOM and the Malay film industry. The following paragraphs outline the several main themes that appeared from the analysis of the interview sessions. RQ 1: What is the function of eWOM towards Malay Film Industry? For the first research question, the researcher pulls out a number of main themes: Theme 1 : Source of information Many informants mentioned that, indicating the information from the other person’s experience is essential. Naturally, there are various ranges of ages that watch Malay film. However, the youth are the one who spent their money and most of their time going to the cinema. Nevertheless, before they decide to spend some money into it, they did some reading about the reviews of the movies. Thus the information prior is very important to them so that they can make a precise choice. “.. they won’t be spending into something that is not good. What is the point of investing onto some kind of bad product? They would obviously look at the comments. If the comments are bad, they would definitely not go.../Zhafran “ By referring to the eWOM, they get many form of information from various people. The audiences do not have the needs to find the information as other people will be sharing it from their experience. On behalf of the industry people, the usage of eWOM is very important to get instant respond from the audience because this information is very beneficial to improve their product. “..the point of us showing our product is to get feedback. From there, we will be able to improve in the future../Rizal” From eWOM itself, it allows the industry people or producer to accumulate the product performance. Hence, the interview will lead the platform of eWOM to provide not only respond from the audience, but also from their competitors. Theme 2 : Seeking Attention The data states that the purpose of eWOM is not only to provide information, but audience and filmmakers will use this platform to gain attention. Audiences will use eWOM as a communication to their favourite artist directly and to show their support towards the related film. Additionally, they also want other people to respond to what they have said especially regarding their favourite artist. “..it depends on the celebrity for me to read and comment, if the post is from my preference celebrity, I’ll respond../Geral..” Most of the audience would want a feedback from the artist. Some of them post good things and too much about that particular film because they seek respond from the artist, but there are some who will give negative feedback pointlessly just so they will get attention from others. “..most of the fans are actually looking for the support of others while the critics are just seeking for a cheap publicity../Hashim” Overall, the attention attainment is based on what kind of a message that was posted. Some of the eWOM will be very beneficial to other readers and some of it is just insignificant.

Theme 3: Viral Marketing From the transcription, the usage of the eWOM is very significant to viral marketing. What the audiences worship or dislike, they will allocate it with other people. 22

“..if I like the content and if it is interesting, I’ll share it with my../Aishah” This activity will spontaneously spread the eWOM and expand the coverage of the message. When it comes to the industry, they see eWOM as a medium to spreading the information without having to pay. On behalf of the industry, they are encouraging retweets, link shares, print screen and they believe it influence the mind of others “..Normally, we would re-post the positive comments. The good feedback will be revealed …/Hashim” This will subtly become some kind of testimonials to the audiences and they will believe more on this kind of bulletin. This method will give a big impact and fasten the spreading of the eWOM, which will make the audiences feel valued. RQ 2: How significant is eWOM towards influencing the audiences? For the second research question, the researcher found out a number of main themes:

Theme 4: Message Value The source of the message is the major factor to evaluate the significance of the message. For instant, the audience will believe and respond to well known people such as their favourite artist. “..i’ll read on the post of my favorite celebrity, that will be it.../Nuha” As for the filmmaker, the message value will help to define their audience and some of the audience will be very positive, some will be very negative and there are some who will be sincere. Understanding of these messages is very important for both parties but for different purposes. Theme 5: Message Credit Audience cannot avoid the eWOM. Each person who is exposed to the eWOM activities will definitely judge and evaluate the eWOM. According to the data, the way of understanding eWOM is different and it is depending on an individual but the phenomena becomes very unique when the message is able to reach extensively to the audience. “…there are some negative messages like “the movie is bad”, and the next person would respond “Really? It would be a waste of money if I watch it too”. An individual might respond to it that way, but the choice of them to go or not is indecisive../Hashim” “…there are times when the controversial is made purposely just to see the reaction of people../Rizal” Regardless of what the eWOM might give, regardless of positive or negative, the main point is that people will be alerted with the message brought by the eWOM.

Conclusion EWOM is a medium to transmit an extensive message regarding to the Malay film. This study shows that eWOM offers a possibility to reach wide audience faster. Foremost, in this study the trustworthiness of the eWOM mostly affect to the action of the audience but it is too subjective to generalize how people make decision based on eWOM. The uniqueness of the eWOM found in this study is that whatever values discovered, whether it is positive or negative eWOM, they both work at the same way which is to gain awareness of the audience. There is no specific date mentioned the peak of evolvement in social networking in Malaysia. There was a study from Siti Ezaleila and Wan Azizah Hamzah (2011) that mentioned, Damien Cumming stated that 2008 witnessed the growth of online social network sites and virtual worlds.

Year 1995 2006 2007 2008 2009 2010 2011

Table 4: Top Malay Film’s Ticket Collection Box Office Malay Film (Collection more than 4Mill) 1 1 1 0 2 4 7 23

2012 (until October, 23)

3 Note: data from finas.gov.com.my

Associating the statement in the table above, we can clearly see that the Malay film industry faced major decreasing problem until year 2008. There was not even a film that could collect more than 4Mill. Thus, referring from the statement of social networking evolvement, it seems significant to improve the setting of Malay film landscape. This phenomenon could help increase and give new hope to the Malay film industry. Consequently, according to the themes and the previous report of Malay film industry, the role of eWOM is substantial in shaping the landscape of Malay film industry. Understanding of eWOM would benefit to the successful of the industry. This study only provides the general understanding of the role of eWOM, by this exploratory of the eWOM could give a new perspective and extend an understanding to the new ways of effective communication.

References [1] Krueger, R.A., Analyzing & Reporting Focus Group Result. Vol. 6. 1998, United States of America: Sage. [2] Krueger, R.A.R.A., Developing questions for focus groups 1998., Carlifornia: Sage Publications [3] Morgan, D.L., Planning For Focus Group1998, United States of America: Sage. [4] 20, F.g.m.-I.-F.C.T., Industri: Filem Cereka Top 20. 2012. [5] Abas, M.M., Manusia Terpinggir Dalam Filem Melayu: Analisis Terhadap Enomena Rajuk Dan Pujuk. Jurnal Pengajian Media Malaysia, 2010. 12(2): p. 14. [6] Abdullah, M.G., Pemikiran Melayu dalam Filem Malaysia Abad ke-21. [7] Ahmad, J.A.W.d.M., Filem Box Office dan Ideologi: Satu Kajian Terhadap Filem-Filem Terpilih di Malaysia. Wacana Seni, 2009. 8. [8] Amy Bruckman, K.K., Robert . Kraut, Erika Shehan Poole, John C. Thomas, Sarita Yardi, Revisiting Research Ethics in the Facebook Era: Challenges in Emerging CSCW Research. 2010. [9] Babutsidze, Z., Advertising and Word-of-Mouth in Motion Picture Industry. 2011. [10] Cereka, F.g.m.-I.-T.F., Tayangan Filem Cereka Tahun 2012. 2012. [11] Chakravarty, A., Y. Liu, and T. Mazumdar, The Differential Effects of Online Word-of-Mouth and Critics' Reviews on Pre-release Movie Evaluation. Journal of Interactive Marketing, 2010. 24(3): p. 185-197. [12] Christy M.K. Cheung, M.K.O.L.a.N.R., The impact of electronic word-of-mouth: The adoption of online opinions in online customer communities. 2008. [13] Dellarocas, C., The digitization of word of mouth: Promise and challenges of online feedback mechanisms. Managemant Science, 2003. [14] Desmond Lam, A.L., and Richard Mizerski, The Effects of Cultural Values in Word-of-Mouth Communication. Journal of International Marketing, 2010. [15] Duan, W.G., Bin Whinston, Andrew B., Do online reviews matter? — An empirical investigation of panel data. Decision Support Systems, 2008. 45(4): p. 1007-1016. [16] Feng Wang, Y.Z., Xiaoling Li, and Huawei Zhu, Why Do Moviegoers Go to the Theater_ The Role of Prerelease Media Publicity and Online Word of Mouth in Driving Moviego.pdf>. Interacive Advertising, 2010. 11. [17] Hamzah, S.E.M.a.A., Online Social Networking: A New Form of Social Interaction. International Journal of Social Science and Humanity, 2011. Vol. 1. [18] Liu, Y., Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue. Journal of Marketing, 2006. 70. [19] Ngai, Y.Y.Y.C.a.E.W.T., Conceptualising electronic word of mouth activity: An input-process-output perspective. Marketing Intelligence & Planning [20] Thadani, C.M.K.C.a.D.R., The Effectiveness of Electronic Word-of-Mouth Communication: A Literature Analysis. 23rd Bled eConference eTrust:nImplications for the Individual, Enterprises and Society [21] Available from: http://www.finas.gov.my/index.php?mod=industry&sub=penonton&p=negeri. [22] Cereka, F.g.m.-I.-T.F. Tayangan Filem Cereka Tahun 2011. 2012.

24

B592 WHAT IS REAL? THE ETHICS OF DIGITAL MANIPULATION AND WHAT THE PROFESSIONAL AND ACADEMIC COMMUNITIES MUST DO TO ADDRESS THE PROBLEM Professor Gary E. Swanson Mildred S. Hansen Endowed Chair and Distinguished Journalist-in-Residence University of Northern Colorado, U.S.A.

gary.swanson@unco.edu, gswanson27@yahoo.com

ABSTRACT In 2006, the discovery that a Lebanese freelance photographer, Adnan Hajj, had manipulated pictures he took for Reuters raised questions about the standards of photojournalism at a time of widespread digital photography. In March 2003, two photos involving Iraqi civilians by a Los Angeles Times photographer were “blended” in violation of the newspaper’s policy, and the photographer was fired. These incidents have increased pressure on news photo editors, who select and edit thousands of photographs on deadline each day, to detect digital alterations and it has put pressure on the academic community to teach higher standards of ethics: morality, honesty and integrity to name a few. David Friend is an editor at Vanity Fair magazine and a former director of photography for Life magazine. He says: “Now all it takes is a swipe of a mouse, and the kid down the street can add smoke and mirrors to everything.” Like it or not, the reality is that fake images are everywhere and falsification has become a part of today's culture thanks to the popularity of digital cameras, the availability of desktop imaging software, and the immense popularity of web sites such as Facebook and Flickr.

25

Communication II Pullman Bangkok King Power, BETA II 2013/1/27 Sunday 10:30-12:00 Session Chair: Prof. Inta Brikse B284 International news agenda: stability of old traditions Inta Brikse︱University of Latvia B352 The News Construction Model in Malaysia Siti Suriani Othman︱Islamic Science University of Malaysia Kuok Tiung Lee︱Malaysia Universiti Sabah Liana Mat Nayan︱University of Tunku Abdul Rahman B395 Stylistic Choices Related to Agency Attribution: An Analysis of Academic Writing Conventions in Business and the Social Sciences Peter J Morton︱Chinese Culture University B566 Globalization and the African Single Story Phenomenom Pretty Sesitemba Segwai︱Waseda University

26

B284 INTERNATIONAL NEWS AGENDA: STABILITY OF OLD TRADITIONS Inta Brikse, Professor of Department of Communication Studies University of Latvia, Riga, Latvia E-mail: Inta.Brikse@lu.lv

Abstract International news coverage lays bare an essential contradiction in the contemporary information environment. On the one hand, the process of globalisation has meant that citizens require more and more information not only about international and global affairs, but also about the everyday lives of people in other countries so as to be able to take a critical look at events and processes. On the other hand, news coverage is becoming more and more homogeneous, and this diversity is not offered. People’s lives have changed. They are more mobile, and they increasingly encounter aspects of foreignness in their domestic lives. Boundaries between the domestic and the foreign are disappearing in virtual communities, and people increasingly identify their belonging not on the basis of their country, their geographic location, their culture or their language, but instead on the basis of their interests and needs. The media and news agencies, however, are strongly focused on the old type of media agenda settings, and the methods for framing news have been used for many decades. This news mainstream is focused on political and economic power sources, and this influences not only the agenda of journalism, but also, in its own way, the strategic control of knowledge that is acquired by individuals and, thus, is a crucial element in the control of understanding discourse [1]. The aim of this paper is to determine the role of journalists in terms of countries and residents who are included in the agenda of the media in other countries and at the international level. The research is based on semi-structured interviews with foreign correspondents who report on Latvia and the other Baltic countries (The study was conducted as part of the ECREA project).

A mediated world and setting of agendas The living space of people has expanded very rapidly over the past decade due to the mass media, social networks, and individual mobility, but the ability of people to gain individual experiences and to independently make use of various sources of news is not reducing the role of journalists and the media. Instead it expands that role in terms of shedding light on those events and processes which are of importance, as well as of allowing people to understand the context in which they should be evaluated. This has to do with a number of factors which influence the ability of individuals to put together their agenda in terms of foreign and global events. The ability of individuals to identify and compare very many sources is limited because of time issues, familiarity with sources, and language skills. It is also true that many foreign and global events that are not a part of the public agenda of the national and domestic media cannot be perceived by individuals because of a lack of a point of view and context. In this case, the job for journalism is to “contextualise topical developments abroad in order to avoid misunderstandings and misperceptions” [2, p. 502). Third, it must be understood that for the traditional media, foreign reporting that is focused on political and economic sources and locations of power or, alternatively, that illustrates the marginalised nature of a country or society, has long since had an influence on a wide variety of media audiences, thus establishing stereotypical ideas about foreignness. Foreign reporting, as many authors have argued, is an area that has attracted comparatively little research interest. The work that has been done in this area mostly focuses on the presentation of specific countries in news flows (usually they are large and influential countries), also focusing on their images in the media, and on an historic analysis of foreign reporting and the professional identities of foreign correspondents [3]. There are often doubts about the development of foreign reporting in future, but it would be more 27

appropriate to pose questions about new geographic, political, cultural and social understandings and about the coverage of otherness and foreignness in the media. One aspect here is a balance between the expectations of the audience (known persons, events, evaluations, etc.) and the unknown – something which can be contradictory to existing ideas. A shift in focus from “labelling countries” to “truly dialogical and inter-textual global knowledge” [4, p. 489] is a key challenge for journalists, because it is possible that agendas and framings will have to be altered so that they become “dominant perspectives used to organise both news presentations and personal thoughts about the object” [5, p. 88]. Events and processes that are of key importance to countries and individuals and that are widely reflected in the national media usually are not presented to media users in other countries. It is also true that many countries appear in international news reports seldom or even never [6]. This creates a serious risk – citizens of the global arena either have no access to information or find themselves in a situation in which events are only presented from a specific perspective and without any thought given to alternative views about the relevant issues. Peter Berglez has proposed a new approach to global journalism, linking it to a shift from national to global outlook positions in journalism – “understand and explain how economic, political, social and ecological processes and problems in different parts of the world affect each other, are interlocked, or share commonalities” [7, p. 847]. That does not reduce the “domestic news paradigm that might still continue to dominate media markets” [8, p. 2], because it is only natural for people to be interested in domestic news – events which relate to the place where they live or to the community to which they feel a sense of belonging. It is only logical that this influences the frameworks which audiences choose in learning about the rest of the world. Changes in foreign news reporting processes have been multidimensional. They affect journalists, the media, any media audience, countries, societies, as well as international organisations.

Research background and sampling Latvia is a small country. The population according to the 2011 national census is a bit below 2 million, and approximately 68% of the country’s residents live in cities. The ethnicity of the population is rather diverse – 59.4% of the country’s residents are Latvians, 27.6% are Russians, and the rest are Belarusians, Ukrainians, Poles, Lithuanians and representatives of other nationalities. The capital city of Rīga is the third largest city in the Baltic Sea region (after St Petersburg and Stockholm). Latvia was heavily affected by the global economic crisis, with GDP dropping by 18% in fixed prices, the unemployment rate among economically active people rising above 20%, and wages declining substantially, particularly in the public sector. The nadir of economic decline was achieved in 2009, which was the year when GDP dropped by 18%. Strict fiscal policies, however, have allowed Latvia to overcome the crisis, and in the last quarter of 2011, the country had the strongest economic growth rate in all of the European Union – up by 5% in annual terms [9]. Despite this, however, the country still faces many problems. The quality of life index in Latvia, which was launched in 2003, reached its apex in 2007 and its nadir two years later, in 2009. Average household income remains among the lowest in the EU, the health of residents is poor, and there has been insufficient retraining of workers so that they can take jobs which are available – there is a lack of workers, but the unemployment rate is not declining [10]. There are few foreign reporters in Latvia – 31 media representatives received accreditation from the Latvian Foreign Ministry in 2012. Some of them cover all three Baltic States. Since 2006, when the Latvian government introduced a unified procedure for accreditation of journalists, thus making it possible to obtain statistical data about the number of accredited foreign journalists in the country, 129 media representatives have received accreditation. It is essential to note that since then, the number of accredited journalists has declined by approximately one-half. That does not, however, give reason to say that news from Latvia have declined to such a dramatic degree, because many media outlets use so-called “parachute journalists” who engage in short-term assignments abroad to cover elections or referendums, etc. The largest number of accredited foreign reporters during these years has come from Russia, Belarus and Germany. Permanent postings have been assigned by news agencies such as Bloomberg, Reuters, the Associated Press, Deutsche Presse-Agentur, and also the Xinhua News Agency. Approximately 28

17% of the foreign journalists who have received accreditation during these years have lived in Latvia for a long time. When applying for accreditation, correspondents have been asked to indicate their field of interest, and the answers that were given related to politics (58%), economics (53%), social issues (50%), culture (43%), sports (41%), and science (34%). Ten foreign correspondents who cover Latvia for a national media outlet or for a global news agency were interviewed to learn their views about agenda setting and building. The respondents represented national media outlets from Germany, Russia, Azerbaijan and Armenia, as well as the Bloomberg, Reuters and Associated Press news agencies, which can be seen as global news operations. Most of the accredited journalists have little experience with foreign reporting, because they have only worked in Latvia and have gained experience in only one country before that. That does not, however, mean that they have little professional experience. The interviews were conducted in September and October 2012. Transcripts were analysed on the basis of qualitative content analysis, selecting fragments from the interviews which speak to: 1) The role and influence of journalists in determining topics, events, processes, etc., that are to be covered; 2) The influence of editors on the agenda; 3) The possible influence of the audience on the agenda; 4) Other factors which influence the agenda.

Findings Journalists themselves, in a distinctly large number of cases, are the ones who determine topics to be covered, and they discuss these with editors at media headquarters or regional offices. This approach was stated equally by journalists from all countries and media outlets, the only difference relating to methods and work planning routines. These, in turn, largely depend on the type and size of the media outlet: “If I have an idea about something that should be written, I can tell my editor about it. They [people at the editorial office] read many other newspapers which I don’t read, and they can look at things from a different context;” “I usually contact them via Google Chat or an SMS if I see something that I think can be a news story. I suggest it to them, and they give me an immediate yes or no. That’s for a general news story. For a feature, I make a list of possible features every couple of months, you know – features which I find to be interesting. I send the list to them, they think about them as long as they want to, and then they tell me what they want me to do;” “I propose topics to them (..) and sometimes it is the case that (..) someone at the editorial office has read something, calls me and says that there is a topic about which a story could perhaps be produced.” Journalists believe that these contacts with editors are pragmatic – before starting to work on a story, “I will talk to my boss so that I don’t write an article that won’t be published.” The possible interests and expectations of the audience are more important than a reflection of the context in which various things happen in countries and societies – this according to editors: “If there is a strong French angle, they will be very interested. If there’s a strong European angle, they’d probably be interested. Anything involving the euro zone – things that could be of interest primarily for a French and Francophone audience.” Media outlets in former Soviet countries are interested in the lives of Russians and other diasporas in Latvia: “Armenians are interested in Latvia. If there is an article about Latvian cultural life, they rathe not interested, but articles about Latvia’s political situation are of interest to them – (..) reforms in Latvia. Latvians and Russians in Latvia and relationships between them are a big problem (..) Armenians in Latvia. The Armenian diaspora in Latvia is made up of some 10,000 people;” “One thing is issues that are linked to Germany.

That means anything that is related to Europe, and 29

then we have a very, very wide field. We covered Lithuania, where the election was not important, but the referendum on nuclear energy was important. Nuclear power is important for me as a German, because in Germany we have problems in this area. We want to halt nuclear power, but we are very slow, and we don’t really know how to do it. Sometimes we ask ourselves whether that is really something that we want to do. Then we have energy questions, NATO topics, and anything that has to do with minorities and Russians.” The extent to which countries and nations are a part of the international news agency is contextual and may well be dependent on secondary interests, themes, and other factors. Answers from respondents showed that when Latvia and the Baltic States are included on the agenda of other national and international media organisations, that often has to do not with Latvia as such, but instead with its geopolitical situation in terms of the neighbouring country of Russia. Several journalists from Western Europe were quite frank about this: “I always say that without Russians, I would not exist;” “Everything that is related to Russia and is happening here is always of sudden interest, because it is related to Russia.” “Russians who are here, Russians who are coming now, Russia – without this I would never be here, because this is the main topic of interest in Germany. The main interest is in Russia and relations, and of course we also have the historical relations among Russia, Germany and Latvia – there is also interest in that regard.” Contextuality does not only depend on political reasons. There are many other aspects to it. One example is interest in Latvia’s national social network, “Draugiem.lv”, which is the only social network in Europe which has not lost its audience because of Facebook. This interest was based not on “Draugiem.lv” as such, but instead on the fact that the initial floating of shares by Facebook was not as successful as had been expected: “The question is why “Draugiem.lv” is doing so well in comparison to Facebook and why that is happening specifically in Latvia. What makes it so interesting? How do they attract people? In what sense are they different from Facebook? What is their business ideology? Perhaps they have some advice for Mr Zuckerberg.” A referendum was held in February 2012 in Latvia on a proposed constitutional amendment that would enshrine Russian as a second state language in Latvia in addition to Latvian. The Latvian language is spoken on an everyday basis by only a bit more than one-half of the country’s residents, and so this was a very important event. It goes without saying that the process attracted a vast amount of attention from journalists in the former USSR, but the fact is that Western European journalists did not see it as an important issue for the international news agenda. Asked about this, one respondent had this to say: “Well, if you have Russian as a second state language, then Russian is going to be an official EU language. They go ‘Oh, really?’ That is how you create awareness. You take a local issue and create awareness about its effect. Otherwise it would be an interesting story and that’s all, but when you put it like this...” A lack of understanding about the context is a problem not just for audiences, but also for many editors. A Russian journalist has experience with this: “We live here in Latvia, and the context is in our brains. The people who live in Moscow do not have that context, and they ask for more detailed explanations from us. Last year, for instance, we produced a story about the crisis, the economic crisis. We discussed what is happening now, and the editor told us to produce a story about what happened in the past, what happened after the collapse of the Soviet Union. He wanted us to produce a story about the past so as to show how everything here has changed.” This is also one reason why stereotypes sometimes emerge in the media: “The stereotype would be that Latvia is some sort of gray, powerless wasteland which probably speaks a Slavic language, and that is true even though many of our stories would include enough information to show that none of this is true. You would have to explain where Latvia is so that it’s not confused with the Balkans – what the population is, how long it has been independent. It is very tiring, and I am tired of having to say that Latvia is a ‘post-Soviet’ republic. I try not to write that, but my editors very often put the words back in, and that’s annoying. Obviously, however, that is a signal that the readership requires the words so that they can locate Latvia in their minds.” 30

Quantitative aspects of how countries appear o the international news agenda are far more important than qualitative ones. Several journalists were rather critical about the level of interest among audiences and editors when it comes to reports about the Latvian and Baltic economies and politics. The thing is that these are small countries which enjoy little international recognition: “I treat the Baltics from their own perspective, and not linked to Scandinavia. They are small, however, and that is the problem, because in Germany nobody is really aware of these countries. They have been free for some 15 or 20 years again, and for people in Germany in that sense it is somewhat hard to differentiate among them as free countries;” “I don’t do many stories on the economy or on private business, because the size is often not that relevant (..) There was a project in Estonia to offer electricity to each household, and the value was 90 million euros. I didn’t even ask, I wrote the story and sent it in, and then I got feedback to say that it was no big deal. I wondered what more they wanted – the whole country would be covered, there would be 90 million euros, and they think it’s no big deal? It depends on perspective.” The news agenda of domestic media outlets and politics have a great effect on the international news agenda. It is fairly typical to believe that the international news agenda is not particularly dependent on the national and domestic agendas of many different countries. The interviews, however, revealed something very different – all of the journalists said that they are active users of the local media and of official sources: “Every day at 7:00 AM there is an interview on Radio Latvia (..) and then an interview on ‘900 Seconds’ [a morning programme on commercial TV]. I have to read the newspapers in the morning and watch all news reports in the evening;” “What I typically do is get up in the morning to watch the morning news, the local media. Then you see what is happening in Latvia, what the main issues are. Of course, they are often not relevant to my work, because they are very specific or very local, but then again, of course, government officials are also very important. (..) Politicians and the opposition follow from that, but only if they something very interesting and very relevant.” Here’s a typical way in which reports are prepared: “I see a story reported in the local media, then I start to read more and get in contact with somebody else, you know, to get to know more about it.” Comparatively few foreign reporters talked about stories outside of the capital city, and one reason for that may be that most of them don’t speak Latvian. There were others, however, whose approach was typified by the respondent who said that he tries to “work on the basis of the principle that I must know what is happening in Latvia, and I focus on issues which might become an article later, or might not. (..) That’s why I need to talk to people [from political parties] or political experts to find out what they are thinking.” The international news agenda is influenced by events which are mainstream aspects of the agenda even if they have no substantial consequences. Journalists who were interviewed spoke of many cases in which written stories were not accepted or used by editors because the regional or even global news agenda has changed. In October 2012, for instance, voters in Lithuania voted against the construction of a nuclear power plant in a consultative referendum. This was an important issue given that nearly all journalists see energy issues as being of importance. The problem was that the referendum was overshadowed by news that the European Union had been given the Nobel Peace Prize – an issue which pushed the vote off of the international news agenda.

Conclusions The study shows that although ways and opportunities of media use have changed substantially, the national media and international news agencies are still preserving traditional agendas that are focused on people, events and processes which are (a) of quantitative importance (a large country, a big sum of money, etc.) and (b) are familiar to the audience on the basis of a second-level agenda or meta framing. Subjects and angles for stories are basically proposed by journalists, with editors then accepting or declining them. At the same time, however, journalists always think about information that would be of interest to the audience or could be “sold.” Many ideas are turned down because editors feel that they are not interesting. One journalist admitted that “they know that better than I do, because they 31

are trying to sell it to someone else.” Irrespective of their country of origin or the international news medium which they represent, all of the respondents spoke of similar topics which they cover in Latvia – the country’s attempt to join the euro zone, non-citizens, and the Russian speaking population and diaspora in Latvia. Stories about Latvia as such were very important during the economic crisis, but respondents say that by the autumn of 2012, that was no longer an important matter for the international news agenda. The agenda is explicitly connected to the European or the global context, and that means that thought must be given to how events in Latvia do or do not fit in with the news mainstream. Editors at international news agencies and other media outlets which monitor news from Latvia and the Baltic region typically are not at their central headquarters; instead, they work in the larger neighbouring countries of Latvia (Sweden, Russia, Poland). They are responsible for a specific region (the Baltic region states, Eastern Europe), and they typically evaluate events and news in individual countries from the regional perspective. That means that they perhaps transform the international news flow into domestic news agendas, doing so on the basis of the needs and interests of the potential audience. That means that there is the risk that people do not get a sufficient sense of events. At one time, this problem could be discussed in the context of poor journalistic and editorial practices, but given the high level of individual mobility and increasing cross-cultural communications which exist today, this can lead to communications problems and a mistaken interpretation of events, actions and behaviours. That, in turn, can lead to conflicts. So-called people stories appear in the media of other countries very rarely unless they are very offbeat. That may reduce the level of information among people and harm their ability to shape new identities and belongings to the European public sphere and such.

References [1] Dijk, Teun A. van, Discourse and context: sociocognitive approach.Teun A. van Dijk. Cambridge: Cambridge University Press, 2008. [2] Hahn, O. and Lönnendonker, J., Transatlanticforeign reporting and foreign correspondents after 9/11: trends in reporting Europe in the United States, The International Journal of Press/Politics, 2009, pp. 497-515. [3] Hamilton, J. M. , Jenner, E., Redefining foreign correspondence. Journalism, 2004, pp.301-321. [4] Hafez, K., Global journalism for global governance? Theoretical visions, practical constraints. Journalism, 2011, pp. 483–496. [5] McCombs, M.Setting the agenda. The mass media and public opinion.Cambridge: Polity Press, 2004. [6] Hafez, K., Global journalism for global governance? Theoretical visions, practical constraints. Journalism, 2011, pp. 483–496. [7] Berglez, P., What is Global Journalism? Theoretical and empirical conceptualisations. Journalism Studies, 2008, pp. 845-858. [8] Berglez, P., Global journalism: an emerging news style. Outline for training program and colaboration with media practioners. Abstract for the international conference „Democracy Human Rights and Social Justice in A New Global Dispensation – Chalanges and Transformation. 1-3 February, 2010, UNISA Muckleneuk Campus in Pretoria, SA. Retrieved October 10, 2012 from http://www.oru.se/PageFiles/17435/Global%2Journalism_An%20emerging%20news%20style.pdf [9] Strašuna, L., The Latvian economy. Monthly newsletter from Swedbank’s Economic Research Department, 2012, Retrieved October 10, 2012 from http://www.swedbank.lv/lib/en/LV%20monthly%202012-03_EN.pdf [10] Latvijas Nacionālais attīstības plans 2014.-2020. gadam, 2012, Retrieved October 10, 2012 from http://nap.lv/images/NAP2020%20dokumenti/20121025_NAP2020_uz_Saeimu.pdf

32

B352 The News Construction Model in Malaysia 1

Siti Suriani Othman, Ph.D., Head of Programme/Lecturer, Communication Programme, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Negeri Sembilan, Malaysia. Email: suriani@usim.edu.my/ssuriani3979@gmail.com 2

Liana Mat Nayan Lecturer, Faculty of Arts and Social Science, Department of Public Relations, University of Tunku Abdul Rahman (UTAR). liana@utar.edu.my 3

Lee Kuok Tiung, Ph.D., Senior Lecturer, Communication Programme, School of Social Science, University of Malaysia Sabah (UMS). lee@ums.edu.my

Abstract What becomes news in one country is different from another, and this is connected with the fact that news construction is a complex process. When discussing the complexity of news construction, one of the most important criteria that should not be neglected is the specificity of news construction in a certain country and/or culture. As such, the news construction model in Malaysia is one of the examples of a complex and specific process, as Malaysia is an Islamic country home to a multi-ethnic and multi-religious society. Thus, this paper will discuss two concepts that are suggested as the foundations of the news construction model in Malaysia. They include the principles of Islam and its connection to journalism practice, and multiculturalism. In discussing this, the paper argues that, these concepts are unable to demonstrate complexity and specificity of news construction in Malaysia, but they enable further the focus on the specificity of Malaysian news to be explored and extended by future studies.

Introduction News construction in one country differs than others, although they might have some similarities. The similarities, some argues, is connected with the universal practice of journalism that is being practiced by all journalists around the world. The differences, however, is more obvious and of larger aspect. Thus, this paper argues that news construction model in a particular country must be specific to the uniqueness of the country and it is impossible to have a universal model that has attempted to simplify the explanation and to produce universal justification of communication process. Thus, this discussion suggests two concepts in discussing the news construction model in Malaysia. It first reviews briefly some universal communication model previously suggested by communication scholars and suggests the foundations of the model are based on Islamic principles of communication and the multiculturality of Malaysia.

Reviews of Dominant Communication Models To McQuail and Windahl (1989), the function of models “simplify reality select key elements and indicate relationship” (McQuail and Windahl 1989: 36). For example, Shanon and Weaver 1949 model, Laswell 1948 model, Schramm 1954 model, Westley and McLeans 1957 model and Berlo 1960 model. Among these models, Berlo’s SMCR model emphasis on the transmission of information from the source to the receiver, and realizes the heterogeneity of the receiver of information that is influenced by culture, inherent knowledge, attitudes and social systems. Schramm 1954 model, however, added that the element of feedback is very important, as to him, communication is not happening without feedback. From these models, some fundamental elements of communication can be identified. In general, communication is a process that involved the sender and the receiver, message, channel, noise, feedback and change. Although such direct discussions about communication elements are usually referred to human communication (except for Westley and McLeans’s 1989 model that also accounts for mass communication), this suggests that the elements are also pertinent to understanding mass communication, for example, communication process involved in producing newspapers. 33

For example, the production of newspapers involves the sender of information which is the newspaper organisation and the readers are the receiver, the message is of course the news chanelled through the publication of the newspaper, and the whole process of getting feedbacks from the readers will/will not lead to change. Here, noise can be everywhere, either in the process of news gathering, news writing or even from external forces such as organisational, political economy and cultural forces. It is here that contexts become pertinent as in communication models, the context of communication is always connected with the way message is constructed and understood. Journalism ethics become important when message distortion can comes from various ways such as political interventions, newspaper ownership and journalists’ bias. Perhaps, the largest affect can be felt from the government, as it can implement any kinds of media laws that influence media operation in various ways. However, it is important to highlight that these ‘noise’ can be in various forms, when it affects news construction and connects with distinct forces in a particular country.

Specificity of News Construction in Malaysia News construction in Malaysia has been discussed largely in the context of political economy (Zaharom 2000), with emphasis of discussions related to de-westernization (Curran and Park 2000, Gunaratne 2007, Gunaratne 2010, Papoutsaki 2007 and Wasserman and de Beer 2009 and Asian values (Asad 1995, Xiaoge 2005) that thus related to Asian journalism (Massey and Chang 2005, Masterton 1996, Romano 2005). Besides that, Malaysian news construction is also heavily connected to developmental journalism (Xiaoge 2005). These approaches, in general, argue on the specificity of news construction in Malaysia, that it is inaccurate to generalize the situations in the West to be similar to Malaysia in terms of how events become news. It is, a way of higlighting the views of the third world, thus having their own voice “that to speak from within that culture and tradition is itself an act of an-imperalist resistance (Ahmad 1992: 9). The views from de-westernization opponents such as Curran and Park (2000) generally argue that in Malaysia, for example, globalization is a way to reduce the power of the status quo. This implies that in order to understand a specific situation about news construction, local scholars must always generate specific knowledge to produce local conceptual and theoretical framework to understand specific local phenomena (Gunaratne 2010). Through the notion of Asian values for example, it “stresses the role of culture, including religion, in determining the identity and distinctiveness of the Asian peoples” (Mohd Azizuddin et al. 2009: 92), thus emphasizing, to some extend, on specificity in terms of Malaysian context. Among others, religion is a particularly important element that is always included in discussing Asian journalism. Romano (2005) summarizes the role of Asian journalism as to become the support to nation building, as government partners to support development activities, as agents of empowerment, as watchdogs of government wrongdoings and to ensure transparancy. To achieve these, censorship is used in, for example a Thailand newspaper as quoted by Romano, to reduce the impact of ‘panic’ among the public during the 1990’s economic slow down. Besides that, Romano added, in most Asian countries, censorship is a common practice to avoid racial tension. Yet, although such concepts can become a way of initializing local knowledge, they still, however, fall into the problem of generalization as the reality is that Asian countries themselves are heterogeneous in terms of political, cultural and journalistic practices. For example, Asian Values in Malaysia are associated with Islamic elements, as opposed to teaching-oriented Singapore Confucianism (Xu 2005). Another example is in the case of Indonesia. Romano and Blythe (2005) noted the changing situations of journalism in different reigns of presidents. Newspaper Antara at some points is the mouthpiece of the government (under President Suharto), but it offers more independence to the workers under the reign on President Habibie. This suggests that, if specificity within a particular newspaper is recognized, it is difficult to generalize any circumstances about news constructions at a particular time. This also applies to the notion of developmental journalism. Although it is synonimous to Malaysia, it is applied distinctly in Africa (Wasserman and De Beer 2009).

Specific Foundations of News Construction Model in Malaysia: Islamic Principles and Multiculturalism It is impossible to explain the rationale of news construction model in Malaysia if the Islamic principles are ignored. This is mainly because Malaysia declares itself as a Muslim country and inhabited by majority of Muslims. Despite that, there are also two other major races in Malaysia, namely Chinese and Indian, that also requires discussion about multiculturalism that follows in the next section. 34

In terms of discussing news construction in Malaysia and the Islamic aspect of it, the first aspect brought up by Khiabany (2006) is that, ‘Islam’ should not be seen as pre-determined determinant that is then used to explain communication. Instead, he argues in terms of the relationship between Islam and the state in news production, “It is not Islam that gives meaning to the state but rather it is the coercive force of the state that makes the particular ‘Islam what it is in a particular national context’”(Khiabany 2006: 19). This suggests the importance of paying attention to the specificity of ‘Malaysian context’ when discussing about news construction and Islam in the country. If Khiabany’s view is taken into consideration, this proposes that what makes Islamic communication in the context of Malaysia is always connected with how the state uses its power to shape a particular form of ‘Islamic communication’ in a specific country. Here, although Khiabany does not agree with many aspects of Islamic communication discussed by Hamid Mowlana, a scholar that advocates Iran as an example of an Islamic communication, this observation can be connected to Mowlana’s view about how a particular form of Islam in a country is associated with ethical and tabligh (propagation) aspects (Mowlana 1993). This directly connects how Islam views what it means by news as written in the Quran, (II: 42) news from Islamic cultural theory is based on ‘truth unmixe with willful falsehood’ (Mughees-uddin 1997). Here, supposedly in the construction of news, ethical isues must directly impacting what becomes news; that truth must always be an imperative element of news construction. Truth becomes a journalism ethical aspect that deseves to be treated carefully, then only the propagation can be delivered to the readers. Truth is also connected with the content of news, as well as the purpose, and process of news gathering, and the writing news is adhere to the concept of social responsibility (Mughees-uddin 1997). Thus, anything about people and events that become news must always related to the benefit of the readers. Hence, “news must have good consequence to the readers, do not destroy the reputation of anybody, benefit to the readers, seek the truth, just news, avoid false allegation and accuse anyone either muslim or non-muslim”. It is rather obvious here that the major objective of news is “to promote good and educate the people towards goods” (Mughees-uddin 1997: 61), through “dissemination and diffusion of some principle, belief or practice.” (Mowlana 2003: 308). Thus, a Muslim journalist, according to Mowlana (1989) “destroy myths. In our contemporary world these myths may include power, progress, science, development, modernization, democracy, achievement and success. Personalities as they represent these must not be superhumanized and superdeified... Under the principle of Tawheed another fundamental consideration in communication (another important duty of Muslim journalists) become clear: the destruction of thought structure based on dualism, racialism, tribalismk and familial superiority... One of the dualims according to this principle is the secular notion of the separation of religion and politcs (Mowlana 1989: 141-142). This is done, argues Mowlana (1996) by relating communication activities with the concept of tabligh (propagation) that includes four principles: Tawhid (monothesim); responsibility, guidance and action (amar makruf nahi mungkar); Islamic community (ummah); and taqwa (piety). Mass media should be seen as a tool of propagation, that must lead to the increase of tawhid to Allah, leading readers to guide each other, creating a united ummah and creating a society that is always have the faith to Allah. This approach, to Mowlana, is a way of explaining ‘Islamic communication”. On the contrary, Khiabany (2006) argued that there is no single theory to explain Islamic communication. Khiabany further argues that it is wrong to see Islam as a single aspect, as in reality, Islam is being practiced by heterogenous people around the world. While Khiabany is correct, discussions made by Mowlana has its own contribution in terms of connecting Islamic concepts with communication activities. Besides connecting concepts of Islam with communication, some discussions have been made to connect language used in media with Islamic principles. To Ahmad Shehu (1996), there is very important role played by language. Even in Islam, “language is one of the uncountable blessings of Allah on humans, it is a distinctive feature that proves, as reasoning does, the supremacy and excellency of humans above other creatures” (Ahmad Shehu 1996: 51). Accurate use of language can lead to attitude change (to become more positive) if the messages are effective. Ahmad Shehu (1996) sees Islamic language as “any language spoken by a Muslim language community, where the driving force in the communal memory is Islam” (Ahmad Shehu 1996: 52). However, Ahmad Shehu also noted that an Islamic language is not merely derived from Arabic loan words, but it includes native languages spoken by local people. It is the message within the language is where the Islamic elements can be embedded thus an important tool to disseminate ideologies. He explained some of the criteria of effective Islamic language, that can also be applied to the usage of language in mass media. Some of the criteria are to be eloquent and able to conserve with grammatical 35

and stylistic rules of the language in conveying the message to the people, able to identify the linguistic and educational standard of the target group, sensitive to the generality of the people, the knowledgeable and the ignorant, illiterate and elite (Ahmad Shehu 1996: 56). Besides that, Ahmad Shehu also recognizes the effectiveness of literary works such as poetry, wise sayings and quotations from the Quran and hadith to convince the listeners to the message. Thus, this implies that Islamic concepts can be used to not only explain the general explanations of communication, but also guide how language should be used in mass media. This, to some extend, supports the view that Islam can be seen as a complete deen (culture) and “all-encompassing from or pattern for living” (Mughees-uddin 1997: 59). When Islam is understand as such, it also suggests that there is no separation between politics, ethics and other social systems including the media system. It is here that is necessary to note that with this perspective uphold, journalism practices have to be based on the Quran and hadith, the principle of tawhid and the belief that goods and bads will be judged in the hearafter (Mughees-uddin 1997). This strikes the difference between the Islamic view about communication and the West because Islamic communication is not necessarily related to merely the ownership of the media and presenting Islamic content (Khiabany 2006). Khiabany (2006) further presented the difference between Islamic and Western style of communication: 1. Islamic principles of communication locate human hearts to be for God and nature, and there is no separation between branches in the society. For example, there is no distinction between religion and politics. 2. Islam: the importance of oral nature in communication that is reflected in the Quran and Hadith. 3. In Islam, the pursuit of knowledge is equal to pursuit of value. Thus, news construction must both deliver knowledge to readers and good values. However, the principles might be easily accepted by Muslim journalists because these are the teachings that they are familiar with. The question is now, how is the application of such principles among the non-Muslims? This question becomes pertinent especially because in Malaysia, although it is an Islamic country, it is settled by other major ethics such as Chinese and Indians.

Multiculturalism and News Construction Model in Malaysia The fact that Malaysia is resided by other races who believed other religions besides Islam, multiculturality must be valued and recognized whenever the formation of news construction model is concerned. These religions include Buddism, Hindu dan Christian, and journalists from different races and religions do cover and write news for this heterogenous community. Among the culturalists, they view the adaptation of different cultures with the analogy of the ‘salad bowl’ (Bobbie 2010). The model that refers to intercultural adaptation in America argues that different cultures in America do exist together but they don’t merge into a single homogenous culture. This is however, contradict with the melting pot metaphor, that says the adaptation will turn a heterogenous society into a homogenous one. Although these concepts are not without critique, the analogy of the salad bowl might to some extend describes the situation in Malaysia. Albeit various intercultural projects organized by the state to reduce the gap among races in Malaysia, including the formation of bangsa Malaysia where Malaysians are identified as ‘Malaysians’ rather than by distinct race, Giacchino-Baker (2000) in the study of teacher education in Malaysia and the United States found that most teachers interviewed do not feel that they are ‘Malaysians’. This is, argued Giacchino-Baker, a danger of the melting pot theory, as different races still feel that, in some cases, they are not truly Malaysian because “of a latent feeling of dissatisfaction among all ethnic groups.” Another participant in the research added, “If there is no equality between all the races, being ‘Malaysian’ has no meaning” (Giacchino-Baker 2000: 12). Thus, it is not strange to find the views among journalists that, in a different discussion made (Siti Suriani Othman 2012), some newspapers still adhere to reporting events based on the interests of certain ethnic groups. Considering some issues pertaining to ownership of the newspaper, target readers of certain newspapers and editorial preferences, and the relationship with news construction, these can be connected with the type of news published by newspapers in Malaysia. For example, based on a study conducted (Siti Suriani Othman 2012), The New Straits Times (NST) attempts to reach the widest readers and the strength is it is published in English. However, the main challenge of the NST is to reach its younger readers, as the newspaper is now read mostly by older generation in the readers profile. Other mainstream newspapers such as Utusan Malaysia (UM) and Berita Harian (BH) target for Malay readers, although BH tends to include wider issues including some space for human interest stories. 36

Other newspapers such as Harian Metro (HM), a tabloid newspaper, prefers not to publish political stories, unless if it contains sensational value in it. TheSun (TS1), a free urban newspaper, targets Malaysians regardless of race residing in urban areas, while The Star (TS2) highlights stories close to the interests of the Chinese although it is published in English. Some argued that it is the ownership issue of TS2, that is linked with the government, that affects what becomes news at the newspaper. For TS1, lesser political influence is traced as the ownership is privately owned. Here are just some examples to demonstrate that in producing a news construction model for Malaysian newspapers, a lot of considerations need to be taken into account. Ownership is of course one of them, but it is not limited to that only otherwise this discussion will also tend to fall into political economists’ discussions about news. Among other things, the views from some Malaysian journalists working in English and Malay newspapers (Siti Suriani Othman 2012) suggest that there exist a strong sense of ‘salad bowl’ in terms of the news construction in the country. There are of course attempts to bridge this gap, such as done by BH (to reduce political stories although it does raise questions pertaning to journalism and democracy) and the NST (trying to reach young readers), but some readers who don’t read these newspapers questioned the bias of reporting they found in the news, that rather affect the popularity of the newspaper (Syed Nazri Syed Harun, 2009). However, although the mosaic of the society in Malaysia and its press system can be explained through the metaphor of the salad bowl, thus the maintaining of distinct identity among different races, the fact that living in the modern society and connected with the mass media and the internet, is taking globalisation as a pertinent concept of discussing news construction model in Malaysia. In the context of Malaysia, the emergence of the Internet has not only become so influential that it becomes a very important source of information and blogs become a popular avenue among Malaysians to express their views, but it is also seen as a communication tool that affects public thinking and thus, affects national election results as the internet provides much more heterogenous information that the public was not familiar with before (Smeltzer and Lepawsky 2010). This echoes Marshall McLuhan’s (1964) notion of global village in Understanding Media, that the world becomes ‘smaller’ when the people is opened to various avenues of connecting through the traditional and the new media. This however, argued McLuhan, does not turn the society into a homogenous society, rather the community can become much more diverse than before the invention of the internet as predicted 30 years before the internet was invented. Further, the diversity within the community of Malaysia is another factor to support that globalization is indeed an embedded background in Malaysian society. Three major ethinicities (Malay, Chinese and India) and various religions suggest that discussing about Malaysia and its press system must always include multiculturalism factor. However, within the multicultrality, religions also become more diverse but the problem with this is the contradictory nature between religion and globalization. There is inherent feature of religion to globalize itself, which is through missionary actions and to extend its ability to reach a larger group of believer (Eilders n.d.). However, Eilders also observes that religions are not universal as they compete with different religions to become global. However, albeit the impact of globalization and the inherent feature of globalizing within the modern society, religion is argued to be able to reduce the negative effects of globalisation especially with the advancement of the internet. Thus, one of the elements that should always be included when discussing multiculturalism is religion. Without religion, globalized human beings can become too diverse, that the diversity could affect the definition of right and wrong among them. Here, we argue that the inherent globalized feature of religion should be used as the tool to understand other religions and reduce the gap of the salad bowl, but the ununiversality of a specific religion can become the source of in-depth comprehension of a specific religion and thus the practice of the teachings following strong understandings of the principles.

Suggestions of Foundations of News Construction Model in Malaysia Thus this paper suggests to consider these two elements in considerating the foundations of news construction model in Malaysia. With this suggestion, we extend the argument that journalists will able to produce news suitable for the Malaysian context only if they understand other religions in the country, but they also have profound knowledge about the religion they embrace. With that, we suggested to consider some teachings in Islam to be considered as the foundations of news construction model in Malaysia, following the national religion of the country which is Islam. As discussed in the earlier part of this paper, it suggests that the moral values advocated by Islam can also be followed by non-Muslim journalists in the country as they are in line with journalism ethics. Values such as to avoid publishing harm news that avoid slender and defamation, and using appropriate language are also in line with the general ethical conducts of human beings in the world. Thus, it can be argued that, supposedly, Muslim countries should embrace these values further, that 37

should able to turn Muslim countries as examples of a successful news construction model. Furthermore, in Islam, the benefit of the majority is prioritized, than upholding capitalism. Here, if the values are valued by the Muslim countries, they should also become free from any interventions, except following the rules of God. Consequently, some would view that control from the state can be deemphasized, because what really makes people ethical, from Islamic perspective should be the fear of Allah. However, due to deviant nature and potentials of disruptive move by some, laws and regulations are still needed. It is just that, if the fear to Allah is the main fear among the public (that includes the jouranalists), rules can be reduced and the public can be treated more maturely.

Conclusion This paper has discussed important foundations in discussing news construction model in Malaysia. Two elements identified to be the most important aspects are the principles of Islam in journalism (thus ethical issues) and the multiculturalism of Malaysia. Being sensitive of these elements should assist journalists to construct news that will not harm other people but in fact benefit the majority. Besides that, news in Malaysia must also be sensitive of the needs of heterogenous needs of the different ethnicities that include to respect the status of the King, racial and religious issues. Thus, ideally, if both aspects are under consideration of journalists, press freedom can become an unquestioned concept. However, some view that most Islamic countries has always been critisized for not advocating press freedom (Mughees-uddin 1997). In his arguments, Mughees-uddin said that Muslim media should be free from governmental regulations and censorship because the concept of fear goes to Allah and not to the king or president. From his view, “In the Muslim world, by and large, the media seems to play the opposite role of amar bil ma’rul wa nahi ‘anil munkar” (Mughees-uddin 1997: 62). However, in the context of Malaysia and the potential threat of globalization especially from the internet, it is not easy to let the media operates without censorship. For example, through laws, materials with pornography elements can be banned to enter the country. Besides that, specifically when considering the multicurality of Malaysia, there are some aspects of sensitivity that needs to be considered. It is suggested that to increase understanding among ethnics of different religions in Malaysia, the globalized nature of religion and the ununiversalise nature of religion can be considered. In this instance, we argue that, following the Islamic principles can assist journalists to reduce conflict after the publication of news, because they consequently uphold journalism ethics. Here, control from the state can be reduced, but in the context of Malaysia, this can only be done when all newspaper organizations understand Islamic principles and relate them with the practice of journalism. Differences of different religions are cherished, and it is important to be the source of profound understanding of the faith of individual journalist especially the non Muslims. By suggesting this, we however are not saying that other religions are of lower value in Malaysia, but taking Islamic values as the universal values journalists can practice is to reflect the practice of the majority of the nation, and to produce news stories that echo the principles of the official religion of the country. Here, it is seen that the issue of living harmonously in multiculturalism and thus globalization can be sustained via lesser control by the state, but through practice of religious principles that guide the life of the public including the journalists. Thus, discussions about foundations of news construction model in Malaysia could be explored more in-depth if journalists in Chinese and Indian newspapers in Malaysia are also interviewed to hear their views about the current journalism practice and the suitability of Islamic principles to be applied to their newspapers. Through such interviews, too, will enable researchers to identify other elements that are important to be considered when discussing about news construction model in Malaysia. It is by including such specificity that allows further understanding of the foundations of the model. As demonstrated, two concepts discussed as the foundations of news construction model in Malaysia are unable to demonstrate the complexity of news construction process, but rather, they can become the concepts that deserve further investigation by journalism researchers when studying news in Malaysia.

REFERENCES AHMAD, A., 1991. In theory: classes, nations, literatures. London: Verso. AHMAD SHEHU ABDUSSALAM. 1996. The Da’iyah’s Language. Hamdard Islamicus. XIX (2): 51-63. ASAD, L., 1995. Asian values in journalism, or values in Asian journalism? In AMIC Seminar on Asian Values in Journalism Seminar Nilai-Nilai Kewartawanan Asia: Kuala 38

Lumpur, 24-25 August, 1995. Singapore: Asian Media Information and Communication Centre. BERLO, D. K. (1960). The process of communication. New York, New York: Holt, Rinehart, & Winston. BOBBIE, K., 2010. Canada: The Culture. Crabtree Pub. CURRAN, J. & PYUNG-JIN PARK, eds., De-westernizing media studies. London. Routledge. GIACCHINO-BAKER, R., 2000. New Perspectives on Diversity: Multicultural Metaphors for Malaysia. Multicultural Perspectives, 2(1): 8–13. GUNARATNE, S.A., 2007. Let many journalism bloom: Cosmology, orientalism and freedom, China Media Research, 3 (4), pp. 60-73. GUNARATNE, S., 2010. De-westernizing communication/social science research: Opportunities and limitations. Media Culture & Society. 32 (2): 473-500. KHIABANY, G., 2003. De-westernizing media theory, or reverse orientalism: ‘Islam Communication’ as theoriezed by Hamid Mowlana. Media Culture Society, 25, pp. 415-422. KHIABANY , G., 2006. ‘Is there an Islamic Communication? The persistence of tradition and the lure of modernity’, Critical Arts. Vol. 21(2). LASSWELL, H., 1948. "The Structure and Function of Communication in Society." In Lyman Bryson (ed.), The Communication of Ideas. Harper and Row. MASSEY, B. L., and CHANG, L. A., 2002. Locating Asian Values in Asian Journalism: a content analysis of web newspapers. Journal of Communication. 52 (4): 987-1003. MASTERTON, M., 2005. Asian Journalsits Seek Values Worth Preserving. Asia Pacific Media Educator. Vol. 1 (16): 41-47. MCLUHAN, M., 1964. Understanding media. Gingko Press. MCQUAIL,D., and WINDAHL, S., 1989. Models of communication, in E. Barnow, G. Gerbner, W. Schramm, T. L. Worth and L. Gross (eds). International Encyclopedia of Communications, 3: 36-44. New York. MOHD AZIZUDIN, MOHD SANI., NORHAFEZAH, Y. AZAHAR, KASIM., RUSDI, OMAR., 2009. Malaysia in transition: A comparative analysis of Asian Values, Islam Hadhari and 1Malaysia. Journal of Politics and Law, 2 (3), pp. 110-118. MOWLANA, H., 1993. The New Global Order and Cultural Ecology. Media Culture & Society, 15 (1) : 9-27. MOWLANA, H., 1996. Global Communication in Transition: The End of Diversity. Thousand Oaks: Sage. MOWLANA, H. 1989. Communication, ethics and the islamic tradition. In Cooper, T. W., (ed), Communication ethics and global change. Whilte Plains New York: Longman. MOWLANA, H., 2003. Foundation of communication in Islamic societyes. In Jolyon, M and Marriage, S (eds). Mediating religion: conversatons in media, religion and culture. London: T&T Clark. MUGHEES-UDDIN, 1997. An Islamic framework of media ethics: Problems and challenges. Hamdard Islamicus. XX (11): 57-67. PAPOUTSAKI, E., 2007. De-colonising journalism curricula: A research & ‘development’ perspective. Paper presented at AMIC Conference, 24-17 June 2007, Singapore. ROMANO, A., 2005. Asian journalism: News, development and the tides of liberation and technology. In ROMANO, A., and BROMLEY, M., eds. Journalism and democracy in Asia. London & New York: Routledge.

39

ROMANO, A. R., and BLYTHE, K., 2005. Between dictatorship and democracy: state-affiliated news media in Indonesia. In Romano, Angela R. & Bromley, Michael S. (Eds.) Journalism and democracy in Asia. RoutledgeCurzon, London ; New York. SCHRAMM, W. (1954) 'How communication works' in Schramm W (ed.) The Process and Effects of Mass Communication Urbana: University of Illinois Press. SHANNON, C. E., and WEAVER, W., 1949. A Mathematical Model of Communication. Urbana, IL: University of Illinois Press SITI SURIANI, OTHMAN, 2012. “We just write what we think is newsy”: An on Newsworthiness Constructions in Malaysian Newspapers. Unpublished PhD thesis, Nottingham Trent University, UK. SMELTZER, S., and LEPAWSKY, J., 2010. Foregrounding technology over politics?: media framings of federation elections in Malaysia. Royal Geographical Society, 42 (1), pp. 86-95. SYED NAZRI SYED HARUN, 2009. Interview done for research purposes, Personal Communication. WASSERMAN, H., and BEER, A. S. 2009. Towards De-Westernizing Journalism Studies. in Wahl-Jorgensen, K., & Hanitzsch, T.. eds., The Handbook of Journalism Studies. New York: Routledge. WESTLEY, B. H., and MACLEAN, M. S., 1957. A conceptual model for communications research. Journalism and Mass Communication Quarterly. 34 (1): 31-38. XIOGE, X., 2005. Demystifying asian values in journalism. Singapore: Marshall Cavendish Academic. ZAHAROM, N., 2000. Globalized theories and national controls the state, the market and the Malaysian media. in CURRAN, J. & PYUNG-JIN PARK, eds., De-westernizing media studies. London. Routledge.

40

B395 Stylistic Choices Related to Agency Attribution: An Analysis of Academic Writing Conventions in Business and the Social Sciences Peter J. Morton Center for Language Teaching and Learning Chinese Culture University (*) Taipei, Taiwan

Abstract Academic writers must make stylistic decisions about how to attribute agency - usually for actions taken by the authors themselves. In striving for just the right tone of scholarly detachment, authors sometimes denote agency through the use of third-person devices such as "the present study," or they may blur the agent’s identity with various passive constructions, or they may risk too subjective a tone by using actual pronouns. Seldom do these devices affect the substance of the actual research claims made in the paper, but they may influence readers' subjective response to the work. The present study examines a corpus of 269 articles from 31 different journals in the related fields of business, economics, and political science from the year 2002. A text-analysis accounting is made of the different agency devices actually employed by the authors. Regression models are then estimated to control for the most important non-stylistic factors that influence the number of citations each article has received. After adjusting for these factors, the information about agency attribution explains a small but significant share of the remaining variation in citation counts. The results may offer some guidance to authors seeking just the right scholarly tone, or to those negotiating stylistic preferences with their editors. Key Words: Agency, Passive Voice, First-Person, Citation Frequency, Impact Factor, Style

(*) The author gratefully acknowledges assistance from the Chinese Culture University Office of Research and Evaluation, and the CCU College of Social Sciences.

41

B566 GLOBALIZATION AND THE AFRICAN SINGLE STORY PHENOMENON: THE STORY OF THE AFRICAN IMMIGRANTS Pretty Sesitemba Segwai2

Introduction and background Immigration is a phenomenon complex to ignore in the era of globalization. The dynamics of the world system 3 come with a heightened interdependence, cooperation and a common understanding of international norms and freedoms. Migrants fall under this common understanding as some leave their homes permanently and others temporarily based on their intended purpose of departure from their places of origin. The reasons to migrate are numerous based on individual cases and experiences of each people group. Theories of migration have sought to define and extrapolate these reasons by observing the determinants, processes and patterns of migration, including the investigation of ways in which migrants become incorporated into receiving societies (Castles 2009; 20). Castles et. al when explaining this process (of migration) allude to the fact that migration affects every dimension of social existence on many levels; for migrants, sending nations and receiving nations. However, the changes that occur are mostly felt by the migrants themselves and can be seen at every process-in countries of origin, in transit and destination (Castles 2009). Moreover, the advancement of technology and communication has effectively sold the idea of living in foreign boarders for most people who migrate (Okome 2011; 3). “Through the movies, television, radio, print media, facsimile machines and currently the information super high way, potential migrants gather information on what to do, what opportunities exist, and where to move”.4 In the case of the US, the media is one of the avenues that has successfully sold the idea of the ‘American’ dream to ‘would be’ immigrants as well as migrants from other parts of the world (Africans included). The dominance of the US in world politics and advanced economic pedigree has given the US media the power to influence. This medium has spread a soft power 5 that has successfully influenced a diversity of people around the world to consider the US as a place to settle and achieve their dreams, to which critics like George Carlin say ‘you have to be asleep to believe it’6. Movies like ‘Coming to America’7 and many others have sought to depict the American idea of freedoms and opportunities to which many people would like a piece. Coming to America, like most of the media coverage on Africa and the African people sells a single story about Africa. 8According to Chimamanda 2

MA

International Relations Student at Waseda University, GSAPS

3

World system here is not intended to refer exclusively to any particular theory, like perhaps Wallastein and others but instead refers to the world at large 4 Cohen, Robin and Paul Kennedy.2007. Global Sociology,2nd Edition. New York University Press 5 Soft power is a concept developed by Joseph Nye to describe the ability to attract and co-opt rather than coerce and rather than using force or money as a means of persuasion. The phrase was coined by Joseph Nye of Harvard University in a 1990 book, Bound to Lead: The Changing Nature of American Power. He further developed the concept in his 2004 book, Soft Power: The Means to Success in World Politics. The term is now widely used in international affairs by analysts and statesmen. Its use here is simply to denote the power of the media a form of soft power in migration acting as a medium that creates an attractiveness about certain places,in this case the US. 6 George Denis Patrick Carlin was an American stand-up comedian, social critic, satirist, actor and writer/author, who won five Grammy Awards for his comedy albums. He said these words on one of his videos titled: Life is worth losing, released in 2005. 7 Coming to America is a 1988 comedy film directed by John Landis. The film stars Eddie Murphy, who plays an African prince who comes to the United States in hopes of finding a woman he can marry. The depiction of Africans in this movie is clearly that of people who believe that America is the land of opportunities and dreams. The movie also builds of certain stereotypes about African women and their lack of intellect, placing African-American women as a more superior breed to consider if one is looking for an intelligent and attractive black woman, However these notions are not within the scope of this paper. 8 A single story is a term roughly meaning a limited view point as defined by Chimamanda Adichie in her TED

42

Adichie,9 instead of seeing other cultures and people as possessing multiple diverse experiences, the single story reduces those cultures and people into a simple stereotype. “The problem with stereotypes is not that they are untrue, but that they are incomplete. They make one story become the only story.”10 But to say, ‘Coming to America’ is the pull factor for African migration to the US will be completely flawed (and too much of an over simplification) as there are several other factors, both pull and push factors that have seen millions of Africans leaving to seek for better opportunities else where (Reed and Andrzejewski 2009:3). As Mojubaolu Okome puts it, “the push factors usually create the desire to emigrate and pull factors provide the opportunity to act on that desire”11. So the media is simply a tool on which other factors depend, be it economic, social or political that pushes people out of their comfort zones to seek greener pastures. Estimates by the United Nations indicate that the total number of international migrants in Africa rose from nine million in 1960 to 16 million in 2000. 12 Today there are about 1.1 million Black African immigrants13, comprising 3 percent of the total US foreign-born population (Migration Policy Institute 2011 report; pg. 1). “Black Africans are among the fastest growing groups of US immigrants, increasing by about 200 percent during the 1980s and 1990s and nearly 100 percent during the 2000s”. However this group still remains one of the less studied immigrant groups in the US since it does not fall among the top sending regions like Mexico, China and others (Capps, McCabe &Fix 2011). This paper aims to explore the role of globalization in spreading the concept of Africa through the single story phenomenon using African immigrants in the US as a case in point. Therefore I draw attention to African immigrants in the US by focusing on the reasons they migrate (push and pull factors) and their integration and challenges they face as partly a result of the single story problem. This essentially descriptive paper is thus a background of a larger research that will examine the role of the African diaspora in African public diplomacy; to ascertain if the existence of Africans in the world helps to generate a good image and a distinct identity of Africa that is contrary to the norm- the single story norm. This is because the single story of Africa has been told numerous times, enough to affect the progress of Africa and her people. “Africa is usually represented as either absent or anomalous, and the African as either the object of scholarly inquiry or the poor wretched being in need of massive doses of assistance in order to be either pulled into the mainstream of world consciousness, or otherwise, forced matched into recognizing her own potential (Okome 2011:2)”. Okome’s words obviously indicate a slight irritation and understandably so since the single story has affected many Africans as they travel around the world. Many Africans can recount countless times they have been asked questions like,‘ do you live in a house or on a tree?’ ‘Do you have an elephant in your home?’ ‘How come you speak English?’. I am sure other regions also face their own questions and stereotypes; hence the single story problem is not exclusively an African problem. Be that as it may, the African diaspora14 has been officially recognized by the African Union as an Talk Speech titled: The Danger of a single story. Adichie is a Nigerian Novelist, who studied in the US and is currently a lecturer in Nigeria. See Half of a Yellow Sun, a novel which has helped inspire new, cross-generational communication about the Biafran war. In this and in her other works, she seeks to instill dignity into the finest details of each character, whether poor, middle class or rich, exposing along the way the deep scars of colonialism in the African landscape. 10

…ibid Mojubaolu Okome,2011, The Antinomies of globalization:Causes of Contemporary African Immigration to the United States of America, African Migration Journal Vol 1 12 See http://www.migrationpolicy.org/pubs/index.php accessed on July 10,2012.The Migration Policy Institute is an independent, non partisan, nonprofit think tank in Washington, DC dedicated to analysis of the movement of people worldwide. 13 This paper focuses predominantly on Black Africans from Sub-Saharan Africa. This the group of people that is normally considered ‘African’ even though Africa has a diversity of cultures and identities. Perhaps, the distinction ‘Black Africa’ helps but in academic discourse but may also continue to indicate racial profiling that is still eminent in the world. For purposes of thpaper, the experiences shares will base predominantly on ‘Black Africans’ unless otherwise stated. 14 The African Diaspora is defined by the AU as people of African origin living outside the continent of Africa , irrespective of their citizenship and nationality who are willing to contribute to the development of the continent and the building of the African Union. However I have a problem with this definition for purposes of this paper since it is too inclusive, hence I will deliberately exclude those who underwent forced migration into this group 11

43

important avenue through which to promote the interests of Africa 15 . Exploring the process of migration as experienced by the African immigrants in the US provides an important aspect and depth to the theme.

Causes of African Migration to the US Okome argues that Africans migrate from their countries of birth for much the same reasons that other immigrants do. These reasons include the economic, social or political motivations that either pushes immigrants into leaving their countries of origin and settling in a new country or those that pull them into seeking immigration to a new country. On African migration in general he further notes that“Push factors that stimulate migration from Africa include low pay, the lack of employment, underemployment, the absence of family members due to prior migration, and exposure to endemic violence, persecution and oppression. Pull factors of course include the possibility of earning a higher income, finding employment, joining family members and hope for freedom from violence, persecution and oppression.”16 However the major contention in Okome’s thesis is that globalization has been ignored by scholars as one of the major causes of immigration, especially placing an emphasis on African immigrants to the US. He says the US is central in perpetuating the construction and the process of globalization under the concept of the New World order and thus becomes the primary beneficiary of this process. When quoting Myron Weiner, he states that global trends determine the pattern of migration. In this view, there are identifiable changes in the patterns of international migration, which are linked to other international flows, including the movement of trade, capital, investment and information. The crux of this argument he states is that international immigration in only part of a “larger network of interstate relations”. Castles et.al also hold the same contention when it comes to the causes of migration. The perspective shared by Okome, Weiner and Castles (et.al) is that the predominant cause of international migration is the change in immigration policies of countries in response to global change. This argument creates the impression that pull factors are as important as push factors in generating immigration. On the African side, the pull and push factors generated from globalization are purported to manifest through the imposition of Structural Adjustment Programs and “third” wave democratization (Okome 2003). These adjustments have had dire consequences in the economies of some African countries and this remains some of the issues Africa is still grappling with. The rapid technological advances that come with globalization have allowed a smooth exchange of ideas through the media and other avenues (Cohen et al 2003). In this process, the desire to exchange and to emigrate is birthed. Nonetheless, Okome’s final analysis on push and pull debate is that, migration does not have to depend on either-or causal factors since things cannot be so clear-cut. Castles also when arguing for an appropriate theory of migration notes that economic classical theories cannot adequately explain the process of migration hence a combination of factors comes in to play. With this in mind, when investigating African immigrants in the US, it is imperative to understand that the reasons for a varied number of people are different. Wars in Africa due to political instability and ethnic conflicts have resulted in an increased number of immigrants fleeing to the United States( Okome 2003). For instance, during the Nigerian civil war, many people from Biafra migrated to Western countries, including the US( Okome 2003). The Liberian civil war, the Somalia conflict and the Eritrean-Ethiopian war are other instances where increased migration was generated as a result of war (Okome 2003). Wars tend to create more immigration, as well as huge refugee population (Okome 2003). It is hard not to talk about human rights violations in Africa as some of the underlying reasons to migrate. The US has thus resembled the idea of freedom for most immigrants who flee their repressive governments and dictatorial states. Uganda, Kenya, Ghana and more recently Nigeria, Zimbabwe are sources of this kind of migration (Okome 2003). This group of immigrants is reported to be in touch with political and economic developments in Africa, occasionally called upon to comment on current developments in the alternative media. and put the focus on voluntary migrants. 15 http://www.au.int/en/about/vision( African Union Website accessed July 12,2012) 16 Mojubaolu Okome,2011, The Antinomies of globalization: Causes of Contemporary African Immigration to the United States of America, African Migration Journal Vol 1

44

According to Yanki Djamba, the increase in African immigration to the US has also been partly influenced by the change of policies in the old European colonizers of African countries- made to be more restrictive and punitive. The United States has thus become the preference for most African immigrants, especially for English speaking countries like the ones previously listed. Thus Okome’s contention becomes more apparent that “actions and reactions of Africa and Africans towards migration lie squarely within the globalization process”. Although I agree with Okome to a degree, he tends to obfuscate the fact that Africa has legitimate leadership and governance problems that although historically associated with colonization, enough time has passed in order to be able to partly solve some of the African problems. The failure to establish successful institutions as rightly observed by development analysts and scholars is among the reasons given by scholars why Africa will continually lag behind. These failures are amongst the problems that create a legitimate ground for Africans to seek opportunities elsewhere and better institutions. In spite of this observation, I am more inclined (still) to concur with Castles (and others) in his contention that migration decisions are influenced by a wide range of conditions in both sending and receiving countries-not static but in a process of change, linked to global factors and to the way these interact with local historical and cultural patterns. Therefore African migration is also a collective phenomenon, which should be examined within the subsystem of an increasingly global economic and political system. More Reasons why Africans leave Africa According to a study done by Bruce Corrie 17 , African respondents go to America in search of education or economic opportunities. There are several different ways through which his respondents ended up in the US. Some came on scholarships as there are various partnerships established between the US government and African governments through which to provide educational exchanges. The Fulbright scholarships are among such programmes. Others reported to have come with their spouses who either came as students themselves or employees. Many of Corrie ‘s respondents came from upper class families in Africa with money and resources who are merely looking for an international experience, either through studying or with the intention to live in the US and do business. What is interesting to note here is that Corrie’s research indicates a different trend from Okome’s discussion that shows people who mainly come from repressive governments and had not much a choice in the matter. The elite groups of Africa in this study indicate a diverse representation of the backgrounds of people who migrate to the United States. Some of the respondents went to the US through other countries like France and England. Others are married to Americans hence their move to the US. By taking a closer look as this trend, we are able to break away from the African single story of poverty and war as we realize a common denominator in African immigrants that is also common to other regions as these reasons are not only peculiar to African immigrants. The transnational Hindu Punjabis who reside in England as discussed in Dhooleka Raj’s book where are you from indicates similar reasons why her respondents migrated from India. In the literature of George, Sheba Mariam when discussing when discussing the plight of Keralan nurses in the US, we see the same trend of women seeking better opportunities in the US. The work of Peggy Levitt on transnational villagers indicates the same pattern of people who form part of the labor force in the US while still maintaining ties with their place of origin. There is also a strong existence of transnational networks that shape Africans to stretch internationally, as communication technology becomes more advanced. This is very similar to Joanna Dreby’s respondents in her work gender and transnational gossip. What is common in Corrie’s respondents is that most of them want to be in the US for the time being, but many have expressed the desire to return to Africa eventually, while others keep their feet on two continents. As Luis Guarnizo et al put it ‘transnationalism is clearly in the air’ here. Some of these migrants feel a little above the control of their governments and never quite owned by the US either hence a sense of cosmopolitanism seems to exist here (Guarnizo and Smith). Globalization in this case contributed in this context in which some African immigrants has less faith and the need for their countries and less need to become American citizens. The literature of Sheila Croucher (2003) in globalization and belonging;the politics of identity in changing world correlates very well with this observation.

Challenges faced by the African Immigrants 17

Dr Bruce Corrie is a Professor at Concordia University who conducted a study on the US African Consumer segment funded by Minneapolis Foundation. The findings were shared by CEO of New American Dimensions at the 5th Annual Multicultural Midwest Conference on April 28th 2009.

45

As it is normal with all travellers, when one leaves their country, they leave behind their support system and comfort zone, which they had grown accustomed to over the years, so experiencing culture shock and difficulty adapting to the American system are not exclusive challenges to the African community within the US. Nevertheless, due to diversity in this population, different people experience the culture shock and adaptation process differently. This culture shock seems to be expressed by the respondents through a number of challenges they are faced with like a lack of respect in the community and inequality in the work place. These migrants come from an experience where they have been the racial majority hence coming to a place where they have to suddenly become the minority brings challenges that makes the adaptation process a lot more difficult (Bertrand & Mullainathan, 2004,Levitt & Dubner, 2005). There is an ongoing differential treatment of certain races in the US and this aggravates this problem creating a sense of isolation as well as homesickness and loneliness among some respondents (Bertrand & Mullainathan, 2004,Levitt & Dubner, 2005). For certain immigrants from French-speaking countries language competency becomes their biggest barrier, which also exasperates other issues like the possibility of getting a job or an education. Perhaps this can also shed some light in how the single story continues to affect Africans.

National Identity More serious is the challenge of national identity that African immigrants are faced with. The lure of America to most of this population is the idea of diversity; inclusion and freedom, however as rightly observed by Castles et.al international immigration does not always create diversity. Africans experience discrimination of a dual nature from both the white Americans, African-Americans and other immigrants. The idea of an African identity is one premised on ideals of respect particularly for elders, strong discipline, politeness, hospitality, religion, strong work ethic and an unwavering focus on education. Part of this also is the ability to raise children with an African identity, valuing family and giving back especially to family in Africa. Some of these ideals come into conflict with an American individualist culture which Africans find quite foreign. In spite of this, an African national identity is too hard a concept to define in the face of globalization. Different countries have different customs with some certain regions having common similarities hence African immigrants exhibit a great variety in terms of language, culture, even religion (Stebleton, 2007) African-American –African Immigrant Feud As Africans experience an intersection of multiple identities within the US, they want to be seen as African and not African American and struggle to find a middle ground between their native African identity and adapting to the imposed racial identity of ‘Black American’ (Mellow et.al, 2003). Not only that, but idea of being discriminated against by a fellow black person is a notion that has shocked Africans, but this ‘war’ as otherwise referred is not only one sided. There are visible and invisible variance and disagreements in attitudes and behaviors of both Africans and African-Americans (Kwadwo Okrah 2005).18 African Americans are the derivatives of enslaved Africans who arrived in America in the early 17th century and African immigrants claim an undiluted cultural heritage of black people and are said to arrogate to themselves the originality of the Black race and culture, an assertion which irritates African-Americans (Okrah 2005). This conflict alone depicts the different notions in the conceptions of black or the so-called African identity. Africans have revealed their irritation by African-Americans to romanticize Africa because within the Black American imagination, Africa has functioned as a heaven-like place- a utopia which Wamba (one of Okrah’s respondents) claims was glorified in opposition to the reality of racial oppression in America. This has become as source of irritation to African immigrants who allude to the fact Africa has serious problems that don’t match with the glorified version of ‘motherland’ which African-Americans have constructed over time. The other reason revealed in this conflict is the single story misconception that is widely held about Africa of “poverty, famine, disease, tribal wars etc (Adichie 2009). “African immigrants are troubled by the assumption that Africa is a country, with no possibility of being similar to them, no possibility of feeling more complex than self pity; no possibility to have a connection as human equals”(Adichie, 2009). The single story of African-Americans as lazy, criminals interested only in sports and music as portrayed by the media has become one of the building blocks through which Africans tend to view 18

Kwadwo Okrah, Bridging the Gap: Managing the Cold war between Africans and African Americans in the United States of America, the African Symposium Online Journal of the Educational Research Network

46

African-Americans (Okrah 2005). African-Americans claim that African immigrants have bought into the propaganda sold by the American media hence the on-going war between them. African respondents also revealed that African-Americans claim to be a better black, more superior and sophisticated than them, embarrassed by African traditions and culture which they still want to lay a claim of, to which they have further gone to say, ‘ there is nothing African about African-American’ (Okrah 2005). Okrah’s study concludes that there are undeniable differences and arguments raised by both the groups and perhaps a common understanding of each group’s point of view is what may foster a little empathy and acceptance between the two groups. As to whether this is possible still remains to be seen with time and more in-depth research.

Becoming American In Corrie’s study, most respondents prefer to be classified as Africans not American even after becoming citizens. Feeling American for these respondents is greatly influenced by context or activities like when they participate in the political process. Most of them tend to notice how Americanized they have become once they visit Africa and begin to notice the changes in themselves. The conflict between the African-Americans and African immigrants may be some of the underlying reasons why African immigrants do not want to be classified as American. The respondents have expressed an appreciation for the opportunities and freedoms the US has provided them but would rather still cling to what I would like to call an idealized ‘African identity’. This is in direct contrast with Park’s respondents in her book, Consuming citizenship: children of Asian Immigrant Entrepreneurs who have a dire need to be considered American by consuming certain goods and services usually associated with the typical ‘American dream’ idea. Although Park focuses on second-generation citizens, she expresses a void that these children continue to feel in spite of consuming the so-called typical ‘goods’. The idea of American citizenship and belonging is made apparent as an impossible ideal for non-white groups in spite of the multicultural rhetoric that may seem to exist in the under tones of American immigration policy. African immigrants have sought to not be a part of this battle since most of them live with the idea that one-day they will return to Africa. It is common for the African immigrants to buy property and develop land while in America to support those left behind and to prepare for the future. The consumption of African immigrants becomes more significant in places of origin than ever would within the United States.

Conclusion In my final analysis, the single story phenomenon seems to be is a fight that Africans continue to face given the aforementioned analysis. The problem with the single story is how it comes in to meddle with experiences of African immigrants in the work place, at school, in their neighborhood and even among other fellow black people. The perceptions formed about Africa are a reality to most people and this puts most immigrants who often arrive in the US with a sense of difference to be confronted with the challenge of re-negotiating their difference and identity. Globalization helps transport the images about Africa through the media and other avenues and this problem carries local implications, regional and global complications as experienced by the case in discussion. The question that still remains to be answered is whether or not Africa can reinvent its image using the same process of globalization and identity formation. The answer to this is not a straight forward one as there are several other factors in the world system, economic and political that go beyond the control of nation states or regional powers that exist (Wallerstein 2004). This paper serves as a foundational background to the large discourse of African immigration and sheds some light in how globalization among other push and pull factors also plays a role in the surge of African immigrants to the US in the recent years.

Bibliography/References   

African Immigrant Associations (March 2003). The Directory was compiled in preparation for the Forum of African Immigrant Associations held on March 22,2003 at Barnard College, Columbia University Bertrand, M. &Mullainathan, S. (2004). Are Emily and Brandon more employable than Latonya and Tyrone? Evidence on racial discrimination in the labor market from a large randomized experiment. American Economic Review, 94, 991-1013. Castles, Stephen and Mark Miller. 2009. The age of Migration. 4th edit. Palgrave Macmillan.

47

                

Cohen, Robin and Paul Kennedy. 2007. Global Sociology, 2nd. Edition. New York University Press. Croucher, Sheila. 2003. Globalization and Belonging: The Politics of Identity in a Changing World. Rowman & Littlefield Edmonia Lewis(1996), African –Born US residents are the most highly educated group in American Society, the journal of Blacks in Higher education.No 13,pp 33-34 Fanon, F. (1968). Toward the African revolution. New York: Grove Press. Halstead, R.W. (1991). Career counseling and culture: The case of Ebo. The Career Development Quarterly, 40, 24-30. George, Sheba Mariam. When Women Come First. Gender and Class in Transnational Migration. Berkeley: University of California Press. Kwadwo Okrah, Bridging the Gap: Managing the Cold war between Africans and African Americans in the United States of America, the African Symposium Online Journal of the Educational Research Network Levitt, Peggy. The Transnational Villagers. Berkeley: University of California Press, 2005. Levitt, S.D. &Dubner, S.J. (2005). Freakonomics: A rogue economist explores the hidden side of everything. New York: Morrow. Mellow, G.O., Van Slyck, P., &Eynon, B. (2003). The face of the future: Engaging in diversity at LaGuardia Community College. Change, 35, 10-17. Ogbonnaya, A.O.(1994). Person as community: An African understanding of the person as an intrasychic community. Journal of Black Psychology, 20, 75-87. Park, Lisa Sun-Hee. Consuming Citizenship: Children of Asian Immigrant Entrepreneurs. Stanford University Press, 2005. Chaps. 1-4, 7. Park, Lisa Sun-Hee. Consuming Citizenship: Children of Asian Immigrant Entrepreneurs. Stanford University Press, 2005. Pennington, D.L. (1990). Time in African culture. In M.K. Asante & K.W. Asante (Eds.), African Culture: The rhythms of unity (pp. 123-139). Trenton, NJ: Africa World Press. Raj, Dhooleka. Where are you FROM? Middle class migrants in the modern world. Berkeley: University of California Press. 2003. Stebleton, M. J. (2007). Career counseling with African immigrant college students: Theoretical approaches and implications for practice. Career Development Quarterly, 55, 290-312. Retrieved July 10 2012 from http://www.thefreelibrary.com/_/print/PrintArticle.aspx?id=165807344. US Department of Homeland Security, Office of Immigration Statistics. (2006). Yearbook of immigration statistics: 2005. Retrieved July 11, 2007, from http://www.chs.gov/xlibrary/assets/statistics/yearbook/2005/OIS_2005_Yearboo k.pdf. Young, C. (2003). Assimilation and social change dynamics in African and African American communities. The Western Journal of Black Studies, 27, 164-175.

48

Culture I Pullman Bangkok King Power, BETA II 2013/1/26 Saturday 14:45-16:15 Session Chair: Prof. Cheryl Dangatan Taclawan B073 Kalinga Parental Marriage: A Bane or A Boon Cheryl Dangatan Taclawan︱Saint Louis University B122 Status of Women and Socio-Economic Changes in the Assamese Society in the Brahmaputra Valley Pallavi Baruah︱L.O.K.D.College B213 About EVS : “Take All You Can!” Didem Güven︱Sami Sipahi Secondary School Kismet Deliveli︱Mugla Universty Yusuf Yıldırım︱Ziya Gokalp Primary School İlim Aksu︱Anadolu Universty Gozde Demirdag︱Anadolu Universty B214 The Analysis of the Sonata for Bassoon and Piano by Paul Hindemith Emre Hopa︱Anadolu University B123 The Rhetorical Feminization of China in Contemporary Chinese Novels of Transnational Love and Marriage:Origin, Development, and Evolution Sun Gui Rong︱Shandong Normal University B300 Educative Approach towards Piano Sonatas by Mozart Toros Can︱Anadolu University

49

B073 KALINGA PARENTAL MARRIAGE: A BANE OR A BOON Cheryl D. Taclawan Saint Louis University, Baguio City, Philippines E-mail: ctaclawan@ymail.com

Abstract Kalinga people were able to preserve one of their native customs which is marriage through parental arrangement. Parents contract their children to create a strong foundation of family ties, to obtain good match for their children, to maintain and preserve family wealth and to permit inclusion of a smaller clan into a bigger clan. The children are then considered as important social assets. Thus, this study was conducted to determine whether parental marriage is a bane or a boon to those who were parentally engaged since childhood; to determine the prevalence of parental marriage at present; and to determine the factors that could affect the prevalence of parental marriage as a practice among the Kalinga people. Through the use of questionnaire and interview techniques, the findings clearly showed that Kalinga parental marriage is considered a bane for the single respondents while a boon for the married respondents. As per survey, Kalinga parental marriage is gradually declining. It is because most of the respondents, both single and married, answered that they are not in favor of said Kalinga practice. They considered education as a primary factor that can influence the decline of parental marriage as a practice among the people of Kalinga.

Background of the Study The Philippines is strategically located in Southeast Asian region, a position that made the country a cultural crossroads, a place where the East meets West, where Chinese, Japanese, Arabs, Malays, Spaniards, Americans among others intermingled to produce this unparalleled fusion of culture and nation known to the world as Filipinos. The Philippines is an archipelago comprising of 7, 107 islands. The country is divided into three principal groups namely Luzon, Vizayas and Mindanao. Each of this group is composed of different regions. And each region is composed of different provinces and chartered cities. The Cordillera Administrative Region is one of the 17 th regions in Luzon that is rich in culture and until at present values its customs and traditions. There are six provinces and one city in the region. These are Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province and the City of Baguio. The region is wealthy in terms of natural, historical and cultural attractions. The province of Kalinga is a landlocked province in the region. The province is consists of 1 city and 7 municipalities. Tabuk City is the capital of the province which was proclaimed as a component city in 2007 but its cityhood was ruled by the Supreme Court as unconstitutional in 2008. Nevertheless, its city status was reinstated by the Supreme Court in 2009. Kalinga is bounded by the subprovince of Apayao on the north, Mountain Province on the south, Isabela to the east, Cagayan to the northeast and the province of Abra on the west. The Province is composed of many tribes. Because of filial loyalty to the tribe, tribal wars are frequent. However because of the topography of the province and the warrior culture of the people, they were able to preserve their culture despite attempted foreign aggressions in the past. The Kalinga people follow certain customs and traditions. They intimately adhere to their native practices until at present. The customs are so manifold and complex that a detailed description cannot be possible unless one engage in an exhaustive research. One of these customs is the Kalinga parental marriage. Although marriage is a universal institution, the Kalinga people developed and administered parental marriage, which has been traced as an influence of the Indonesians who colonized the province of Kalinga hundred years ago. Parental marriage was often described as a marriage negotiation conducted by both parents of two parties involved. This practice was then very common among the inhabitants of 50

Kalinga-that almost every Kalinga child was engaged at an early age. The Kalinga parents cherish to contract their children for the following reasons: 1. 2. 3. 4.

Through this arrangement, they could create a strong foundation for close family ties with the other party To obtain good match for their children To maintain and preserve family wealth To permit the inclusion of small family into a larger one-in which cases a small family would become a big clan. Hence, it further illustrates that the more populated the clan is, the stronger and fightful the members are in times of conflicts or tribal wars.

Through parental marriage, parent’s plans and wishes are carried out. To the Kalinga people, children are indeed very important social assets.

Problem and Methodology The main purpose of this study was to determine the following: 1. 2. 3.

Whether Kalinga parental marriage is a bane or a boon; The prevalence of Kalinga parental marriage at present; and Factors that influence the prevalence of parental marriage as a practice among the Kalinga people who were parentally engaged during childhood.

Based on the analysis of the researchers’ specific problems, readings and observations, the following hypotheses were formulated: 1. 2. 3.

Kalinga parental marriage is a bane and not a boon. In our contemporary times, there are still those who practice parental marriage. Through the help or knowledge that education imparts, social interaction, influence of media herein exposure to various cultures takes place and awareness of one’s freedom, the people concerned would be able to recognize the negative and positive effects of parental marriage on their children. Hence, the adoption of these four possible factors may influence the prevalence of parental marriage as a practice among the people of Kalinga.

This study employed the descriptive survey method of research through the use of questionnaire and interview techniques to find out if Kalinga parental marriage is a bane or a boon. The study was conducted in Sangilo Mines, Antamok Mines, Philex Mines and Upper Pinget, Baguio City, Philippines. The respondents of the study were the Kalingas who were parentally engaged and are now living in the aforementioned barangays.

Findings The following are significant findings of the study: 1.

a. b. c. d.

Kalinga parental marriage is considered a bane for the single respondents. This was gathered from the fact that the respondents did not want to marry their match mates and they blamed their parents for parental marriage because of the following reasons: They are not happy with their contract. They cannot choose their own partner in life. They do not love their contract. They are not compatible with each other.

In contrast, Kalinga parental marriage is a boon for the married respondents, the fact that most of them pushed through with their marriages and did not have any regrets for parental marriage due to the following reasons: a. They are happy with their match mates. b. They are served by their match mates. c. They accepted and love their contracts. d. Their married lives are successful. 51

2.

a. b. c. d. 3.

As per survey, Kalinga parental marriage is gradually declining. It is because most of the respondents, both single and married, answered that they are not in favor of this practice for the following reasons: Freedom to choose partner in life is violated. It wins one’s love life. Too much expense because of the so many rituals to undergo. Others specified as most children who were parentally engaged blamed their parents. Regardless of the way the respondents ranked the four factors that can influence the decline of Kalinga parental marriage as a practice, namely education, social orientation, awareness of one’s freedom and influence of media, they still considered education as the primary factor that can influence the decline of parental marriage as a practice among the people of Kalinga. Education is such because of the advance knowledge and information that the people learned. Good education and proper dissemination of educational values to students help in the framing of intellectual minds of students. Education shapes the minds of the youth for it helps mold people’s values and beliefs the way culture in the family does. That is why, education and culture are intertwined for they are both necessary to aid a person ameliorate his attitude and behavior.

Social interaction is another factor for when the Kalinga people interact with other tribes; they could at least adopt their practices. Social interaction is basically a dynamic process of changing patterns of social actions between or among individuals or groups who change their actions according to the actions of the other party. Thus, there is social interaction if there is an evident change on the behavior of the interaction partner because of the influence of the other party. People interact because they shared particular and continuing relationships and because they pursue a common goal or activity. Influence of mass media would project the inroads of modernization whereby exposure of various cultures would take place. Mass media is written, broadcast, or spoken that reaches a wider coverage and larger share of spectators or audience. This includes radio, television, the Internet, newspapers, magazines and so forth. Mass media is an essential factor in contemporary culture. Sociologists call this as mediated culture where media have the power to create the culture. People are bombarded with data and information from various mass media such as TV, magazines, radios to name a few. These multitudes of informations could modify moods, attitudes, behavior, and perspectives of people. While experts may vary as to the extent and type of influence the mass media exercise, they all agree that mass media plays an enduring role in contemporary culture. Through this, awareness of one’s freedom to choose a partner in life could be taken into consideration before performing such parental marriage.

References 1. 2. 3.

Burton, Franklin Roy. The Kalinga: Their Institutions and Custom Law, Chicago: University of Chicago Press. Dozier, Edward P. (1967). The Kalinga of Northern Luzon, Philippines. USA: Holt, Rinehart and Winston, Inc. Lambrecht, Billiet (1974). The Kalinga: Ullalim II. Igorot Culture Research Studies. Quezon City: R.P. Garcia Publishing Co.Sugguiyao, Miguel (1998). The Kalinga Hilltribe of the Philippines. Quezon City: Unique Printing Press.

52

B122 Status of Women and Socio-Economic Changes in the Assamese Society in the Brahmaputra Valley Pallavi Baruah Gauhati university

Women are the builders of nation right from early days.The position of women in a society is an index of its degree of civilization.Women forms the backbone of society and the status accorded to them reflects the level of that society.Women have participated in the evolution of human society but they have not enjoyed the same status,privileges,rights and power as that of men.Rather,there are ample evidences to suggest that women nit only been accorded unequal status and inferior position in the society but also have been subordinated,subjugated and exploited.Social attitude towards women in the sansitised society of Assam was in continuation of what was in greater Aryan society of India.The prestige bestowed on women during the Ahom period who ruled in Assam for six hundred years appeared to have been fairly high.There are references to the heroic deeds of Assamese women of courage and determination in different field. Following the British annexation in Assam in 1826A.D.Assam came into closr contact with the rest of India,which proved effective and beneficial.Assam's cultural,social,political life of women came to be strongly influenced by changes introduced from outside the area."Orunodoi",the Assamese monthly paper edited by American Baptist Missionary Rev.Nathan Brown,which first appeared in 1846 was an important forum that focused the position of women in the 19th centuruyAssam. The paper will try to survey various socio-economic aspects of the area and to find out their position in the socio-economic terms and also to suggest certain measures for upliftment of the status of the female population of the area.

53

B213 About EVS: “Take All You Can” Didem Güven1, Kismet Deliveli2,Yusuf Yıldırım3, İlim Aksu4, Gozde Demirdag5 1 Sami Sipahi Secondary School, Eskişehir, Turkey didemguven1981@gmail.com 2

Mugla Universty, Turkey dkismet@mu.edu.tr

3

Ziya Gokalp Primary School, Eskişehir, Turkey akademionline@yahoo.com 4

Anadolu Universty, Ph D student Turkey ilimaksu@gmail.com

5

Anadolu Universty, Ph D student Turkey gozdedemirdag@gmail.com

Abstract European Voluntary Service is one of the projects which allows European Union countries intercultural interaction. Europan Voluntary service offers experiences to european citizens such as; developing positive attitude towards multiculturalism, to have cultural prosperity between countries, to respect differences. Participants of the project, find opportunities like; get to know other cultures, to work with other NGO with different culture and learning the country’s language and culture. Shortly, individuals interact with another culture in a different language and experience different way of living. Purpose of this study is to determine, how daily work and life experiences affect the living of youngsters who are in Turkey by means of EVS. In this case, phenomenological research approach, one of the qualitative research approachs, is used to understand the life experiences of youngsters who came to Turkey by means of EVS project. Research was carried out with 5 EVS volunteers. (4 girls, 1 boy) All of the participants are from EU countries and they are the citizens of Poland (2), Germany (1), Hungary (1) and Italy (1). Resaerch was made as two sessions in form of focus group and 20-30 minutes meetings was made with the volunteers. During the meetings, open ended questions concerning the subjcet were asked to the volunteers and comparative approach is constatntly used to analyse the datas which are obtained from the meetings. According to the research results, volunteers have stated that; they get excited by experiencing new things each day and the experiences they had with EVS are so important and valuble, since those experiences are not reachable in any knowledge. Besides, when they compare EVS with Erasmus, they feel more free and independent. They also declared that, altough all of the volunteers had the chance to come to Turkey before, they didn’t have a long term living and experience. When the datas are analysed, it is understood that, the volunteers came to Turkey with some prejudices but, they didn’t have any negative experience about the issues they worried about. When opinions about Turkey from the volunteers are demanded, they pointed out the differences between the east part and west part of the Turkey and the distinctive differences between the Turks who live in their country and the Turks in Turkey. Volunteers stated that, the reasons why they are volunteers in Turkey are; Turkey has a different cultural structure from Europe and the stategic location of Turkey (a bridge between Asia and Europe) And they also had Turkish friends and they came to Turkey before. When opinions about learning language in EVS programme is asked, they stated that, they want to learn Turkish, but compared to other languages, Turkish is a very hard language. By underlining the importance of intercultural learning, the volunteers stated that everybody should do EVS, they found what they expected about EVS and if they had another chance to do EVS in other NGOs, they would deffinitely do it again. In conclusion, in spite of the fact that EVS volunteers had improved slogans for Turkey such as; “The Country of Contrasts”, “Country Eating Itself”, they don’t have a certain negative perception for Turkey. It was indicated that they are quite happy to be EVS volunteers. As a result, individuals stated that, in gaining intercultural experiences, EVS is immensely important and they will benefit from the experiences they gained from EVS in Turkey for their future life. On the strength of research findings, intercultral experiences has a great impact on reaching to be a european citizen.

54

Introduction International student mobility has gained worldwide importance in the last 20 years in the name of professional evolution. (Stronkhorst, 2005) In the same way, similar mobilities like student mobility is encountered nearly in every field. In mobilities, basic purposes like, bein european citizen, breaking the prejudices, knowing the other cultures are aimed. Intenden for these aims, European Union has prepared some programmes. Union Programmes are the complement of activities which are carried out to encourage collaboration between EU countries and candidate cuntries about union policies in certain fields for some time. Citizens, busines firms, NGOs, public institutions have the chance of attendance to Union Programme.Turkey, as a candidate coutry, ensure participation to Union Programmes. One of the fields of this programme is European Union outh Programme. In European Union Youth Programme, there are several opportunities devoted to youth, youth groups, NGOs and public corporations. In Youth Programme, there are o many opportunities for all youngsters. NGOs, public corporations andsimple groups can apply for the pojects. The programs under the branch of youth programms are called “actions”. In these actions there are; Action 1.1 Youth Exchanges, Action 1.2 Youth Initiatives, Action 1.3 Youth Democracy Projects, Action 2 Eurpean Voluntary Service, Action 3.1 Coorparation Wıth EU Neighbour Countries, Action 4.3 Youth Workers and Training and Networking for Youth Corporations, Action 5.1 Meetings For The Ones Responsable For Youth and Youth Policies. As it is seen, European Voluntary Service is conducted under the title of “Action2”, connected with Youth Programme. EVS, is a programme which enable youth between 18-30 to work as a volunteer abroad in a social thematic project from 2 months to 12 months. Within the scope of the programme the costs of accomodation, food, travel and visa is provided by the National Agency of the country that the volunteer will go. The volunteers take language classes in that country and they come back to their countries with a certificate named “youthpass”. The only conition to be a volunteer is to be between 18-30. The volunteers need an NGO in Turkey which they will present abroad. Accredited NGOs in Turkey, do a mediator between the NGO abroad and the volunteer. DeM (Experiential Training Center), which is an accredited NGO by Turkish National Agency, is a coordinator, host and sending organization in Eskişehir, Turkey. DeM, which is an experienced foundation in the field of EVS, supports volunteers only within the scope of EVS both in Turkey and abroad within the web page named, “EVS TURKEY” and online support system, designed for EVS. So far DeM, hosted 2 long term EVS volunteers within the scope of Youth information Works at DeM Eskişehir media Office. At the same time, DeM carries out projects as coordinator organization. As it is seen civil society has a big importance in experiencing other cultures and being european citizen. In this study the experiences devoted to being european citizen will be searched. The main purpose in his study is to determine the daily and cultural experiences of the long term volunteers who came to Turkey with EVS.

Method In this study phenomenographic investigation method, one of the qualitative research technics, is used. Phenomenographic investigetion method is a research mothod which exhibits the experiences of the individuals. ( Ersoy and Günel, 2011) In phenomenographic investigetion method non of the analyzing mehods are used. Analyzes are up to researcher. For the investigation method, purposeful sampling method is chosen, as two sessions 20-30 minutes long focus group meeting technic is used and in this period open ended questions ( meeting questions are asked by two people in English) are asked. To increase the persuasiveness of the study, the meeting texts are shown to the attendants and to 55

elaborate the views about the subject any idea is wanted rom them. But, none of the attendants made any changes or corrections. Likewise, another specialist’s (someone who made qualitative researchs and independent from the researhers) view is taken to control the datas. (Lincoln & Guba, 1985)

Study Group The study group of this study consists of the EVS volunteers who came to Turkey with an NGO named DeM. Four of this volunteers are woman, one is man. All of the volunteers are european citizens and they are from Poland (2), Germany (1), Hungary (1) and Italy (1). Hungarian volunteers speaks Turkish fluently and he came to Turkey with Erasmus programme before. Hungarian volunteer took English classes in his country. After he finished his Erasmus programmehe came two Turkey twice before EVS. And all of the volunteers have come to Turkey before EVS for the touristic purpose. Name

Nationality

David Magda Anna Federica Helga

Hungarian Polish Polish Italian German

Educational Status University University University University University

Gender M F F F F

Age

Period in Turkey 6 months 6 months 6 months 6 months 6 months

Findings In this part the findings of the research take part. To contribute the purpose of the research, the informations in consequece of the qustions are grouped according to the themes. Fındings are grouped as, the ideas and experienes before they came to Turkey, the experiences during their stay in Turkey, ideas about EVS, ideas about Turkish. Before arriving Turkey: Nearly all of the attendants stated that, they had prejudices before arriving Turkey. For example, German attendant said; ” The Turks who live in Germany are quite different from the one who live in Turkey. My opinion about Turks have changed when i was here.” The Hungarian volunteer said; “I understood that, the Turks who live in Hungary are really different, I saw that the Turks are not that bad”. Italian attendant stated that, “ They told met hat i am going to be harrased in Turkey. But the one who can do that can not be Turks” Polish participant said; “ My close friends in Poland told me bad things about Turkey. I didn’t have a clear image before coming.” But all of the images they had about Turkey have changed after coming to Turkey and all the images they have now are positive. In brief, the volunteers stated that the images they had in their mind are because of the warnings they had before coming. The slogans they said about Turkey are; “We are happy to be in Turkey. We want to be here again. Bacause Turkish people are so different”. The experiences they had during their stay in Turkey: They encountered with to much bureaucracy, very dirty and noisy, hospitable, kind, very funny, too warm, kind people. West and east parts are really different. So, Turkey is the country of contrasts. The ideas about Turkish: Unlike Erasmus, we learn a different language. We are in interaction with Turks. That is why there is no any possibility in learnin Turkish. Turkish is different gramatically. In my country they think that, Turkish has arabic letters. But I say no. I will keep on learning English when i turn back to my country. Experiences about EVS: I am happy that i am doing voluntary service instead of doing master or working. I had big experinces by working with other cultures. I have self confidence now. EVS is a vey beneficial project. We are so free and we learn a different language. In EVS you can improve yourself. We are happy that we are doin voluntary service. We are able to know te people for this country. We will transfer our expeiences to our daily lives when we go back to our conutries. We found everything we were looking for in EVS. Not having strict working ours is realy nice. You should take all you can with EVS. I learn new things each day. I explore. This is exciting. EVS is fun. Everyoe should do EVS.

Discussions and Suggestions 56

In this case, the volunteers who participated in EVS, can use the expriences they had in Turkey back in their countries. Similar results have been taken in similar Works. (Ersoy and Günel, 2011; Şahin, 2008) To be european citizen, to involve in other cultures and experience their way of living, EVS and other mobility projects are important. According to the findngs of the idividuals who paticipated in this research it can be said that; early education of the individuals’ about multiculturalism is important in preventing prejudices. The prejudices, the attendants had are about the Turkish people who live in their countries. But those prejudices have turned to be positive after coming Turkey and they had positive judgments about Turkey and Turks. One of the critics about Turkey is Turkey has to do something to break the prejudices. This is because of the lack of introduction of Turkey whether in national or international platforms. The volunteers have compared EVS with Erasmus during the meeting. When compared to each other both of the are mobility programme and they have similar purposes. But when asked to volunteers, they think that EVS is more advantageous than Erasmus. They said that they are more free in EVS, they are flexible and they have the chance to learn Turkish. And ione of the remarkable points that, when all he positive and negative experiences asked to volunteers they didnt say any negative things about EVS. Volunteers, underline the importance of learning other countries and cultures in that country instead of learning them in their country. Same findings match up with other work. (Ersoy and Günel, 2011; Papatsiba, 2006) As hosting organization DeM, have teached Turkish to volunteers. But the volunteers stated that it was really hard to learn Turkish. The reason of this is Turkish’s gramer structure and the hardness of the pronounciation. Language is a tool which helps people to communicate. As an example water is “su” in Turkish, Arabs say “ma” to it and in English it is water. Every language has its own laws and rules. Languages are explored in two points according to their sources and structures. In indo europen group, except from Hungarian and Finnish there are all euroean languages. In european branch there are Germen languages, (German, English, Scandinavian), Roman languages (French, Italian, Spanish) and Slav languages(Russian, Bulgarin, Serbian) Languages, according to their structures are explored in three groups. Monosyllabic, additive and synthetical languages. Turkish like Hungarian and Japanese are agglutinating. Turkish is in the branch of ural altaic group. The familiarity in indo european is not the same in ual altaic grup. According to these informations the Hungarian volunteer’s learning Turkish is not that hard. Hungarian languag is gramatically similar to Turkish. So it was easy for him to learn Turkish. All of the vplunteers stated hat learning a languge in 6 months is quite hard. That is wy they will keep o learning turkish back in their countries. That is why the paths in teaching Turkish must be revised. National agency can make additional Works seeig that Turkish is harder for any european. The structure of Turkish and it’s grammatical structure made it hard fort h volunteers to learn it except from the Hungarian volunteer. As it is known, Turkish has a different sentence structure from other languages. One o the reason why it is different is Turkish is a language which is written as it is read. This is situation cames from Turkish alphabet’s phonetic characteristics. When compared, the word “write” in English is written with a “w” which is not read at all. “C” in English is pronounced sometimes “s” (city) and sometimes “k”, (control) in Turkish. Turkish has too many items in word derivetion. In Turkish, these items are 96. (Aksan, 1987; 30) When it comes to this, while teaching Turkish those items should be teached also. Compared to european languages, those items are much more in Turkish. And in Turkish syllables ae at least one letter, (a-e, ı-i-o-ö-u-ü). And 4 eltters most. (kart, kurt etc.) In Turkish it is possible to make 6 different syllables. (a,al, ye, taş, alt,erk,kart etc) In Turkish to be able to reach the words voices come together and maket he syllables, syllables come togehter and make words. So, if explored deeper it will be understood that Turkish is quite different from indo european languages. That is why, the citizens whocome from europe can not learn Turkish quite easily. According to that in teaching Turkish, those differences must be teached to the ones who are keen to lean Turkish. In this learning process, listening, speaking, reading, writing must be tought on whole and the structure of Turkish must be teched. (collocations, sound events, syllable structure, derivation power and phonetics.) As a result, it is understood from this research findings that, EVS volunters doesnt hane any negative 57

ideas about Turkey. They alays told that thery are quite happy to be EVS volunteers. Individuals, stated thet EVS is relly important in learning other cultures and in their future life they will transfer the experiences they had in EVS. According to research findings it can be said that, EVS is very important in having intercultural experiences and reaching to be a real european citizen.

Suggestions   

    

 

Qualitative research method about international mobility is used in this work. Inthose kind of researchs quantitive research methods can be used also. In European counries there can be classes starting from primary school in which diferent cultures are introduced. Prejudices picked up here and there from 100 years ago can be erased. Thanks to that, prejudices like this can be broken about Turkey and other 3. World Countries. Turkey’s cultural brand positioning must be made beter in international platforms. For that, congress, fairs, cultural and artificial activities (family culture, food habits, dialogue styles) must be done. Families can visit eachother and have a chance to know eachother much better. With that it can be much easier to combine countries and people closely. Media must raise awareness with the news and programmes about EVS and EVS volunteers must have a additive role in Turkey. In short term, studies in Turkish teaching can be made with strangers Communication with social groups must be arranged fort he foreigners fort hem to practice Turkish. In this topic, educated people who would like to improve their english skills can help to people who want to learn English or French. The difficulties that foriegners have while learning Turkish must be searched and topics that cause the problem must be identified and solutions must be produced. New methods must be revised about Turkish teavhing. Those methods must be suitable to Turkish gramer structure. Listening, speaking, reading and writing must be taken as a whole and during these practices the phonetic structure of Turkish, word derivation power, syntaxes must be told to the learner. After using methods which are revised and implemented comparative methods must be suggested. Responsibilities in presenting Turkey can be given to the people who comes to Turkey.

References [1] Aksan, D. Türkçenin Gücü. Ankara: İş Bankası Yayınları, 1987. [2] Çelenk, S. İlkokuma Yazma Programı ve Öğretimi. Ankara: Anı Yayıncılık, 2003. [3] Ersoy, A. & Günel, E. Cross cultural experiences through Erasmus: Preservice teacher’s induvitual and professional development. Eğitim Araştırmaları- Eurosian Journal of Educational Research, 42,63-78, 2011. [4] Güleryüz, H. Türkçe İlkokuma Yazma Öğretimi (6. Baskı). Ankara: Pegem A Yayıncılık, 2002. [5] Kavcar, C., Oğuzkan, F. ve Aksoy, Ö. Yazılı ve Sözlü Anlatım (Genişletilmiş 5. Baskı). Ankara: Pegem A Yayıncılık, 2004. [6] Lincoln, Y. S. & Guba, E. G. Naturalistic inquiry. Newbury Park, CA: Sage., 1985. [7] Papatsiba, V. Making higher education more European through student mobility? Revisiting EU initiatives in the context of the Bologna process. Comparative education,42, 93-111, 2006. [8] Stronkhorst, R. Learning outcomes of international mobility at two Dutch institutions of higher education. Journal of international education, 9, 292-315, 2005. [9] Şahin, M. Cross cultural experince in preservice teacher education teacher and teaching education,24,1777-1790, 2008.

58

B214 THE ANALYSIS OF THE SONATA FOR BASSOON AND PIANO BY PAUL HINDEMITH Emre Hopa Anadolu University State Conservatory of Music, Eskişehir, Turkey E-mail: ehopa@anadolu.edu.tr

Abstract In this study, the sonata for bassoon and piano which was written in 1938 by Paul Hindemith, one of the most important composers of the 20 th century, has been examined. It has been aimed to assist in the interpretation of the work by obtaining data through research. Hindemith, using modernity and traditionalism in a whole in his music and conveying the music and composition techniques of the baroque period to 20 th century, clearly reflects the creative, aesthetical and his personal character in this work for bassoon and piano. Because this work was written in a period when Hindemith was suffering difficulties from the political and diplomatic reasons, it arouses introverted, quiet, stable, and also conservative feeling on audience. Contrastive melodies in the work are clearly seen in Hindemith's other sonatas for wind instruments. However, this situation, is reflected on the general structure of the work as a unique harmony. As a musical perception, Gebrauchmusic which Hindemith pioneered, can be classified as a sample of utility music. This movement brings a different function to music by breaking down the walls between amateurs and professionals. For this reason, instead of various sound effects in the work, melodies, which can express its character better within the natural register of the instrument, are observed. As a result of this work, it is expected to be reached the benefits intended for improving the quality of interpretation of the work. Keywords: Hindemith, Bassoon, Piano, Sonata, Gebrauchsmusic.

Introduction Paul Hindemith who is one of the pioneers of the German music at 20 th century, was born in Hanau near Frankfurt at November 16, 1895. At first, he started music with the violin and then, he took composition training. After the year 1920, Hindemith pioneered Gebrauchsmusic (utility music) with Kurt Weil and Ernst Krenek. The political tension, experienced during the Second World War, led to the immigration of many intellectuals, writers, artists, and scientists including Hindemith with Adolf Hitler's (National Socialist's) victory in the elections. He was banned because of the fact that his wife was a Jew and his works were not appropriate for the artistic standards of Reich Chamber of Culture and he was forced to migrate from his country [1, p.28]. For this reason, he accepted the invitation, proposed by the Government of Turkish Republic, for the projects to improve the music life in Turkey and to establish Ankara State Conservatory [3, p.6]. After a period of time living in Switzerland, he became an American citizen in 1946. He died in Frankfurt/Main on December 28, 1963. Hindemith, one of the neo-classic composer who did not give up the style based on tonal center and melodic improvement and devoted to his tradition, was affected by the Baroque period and in particular, was inspired by the power of Johann Sebastian Bach's thought and his creation. His ability of using polyphony describes him as 20 th century's Bach. He synthesized modernity and traditionalism. The language of music is consisted of evolutions, continuity, practicality and moderation. He used more than one theme in his sonatas, instead of various sound effects, he agrees with exhibiting its character within the natural register of the instrument. With the Gebrauchsmusic pioneered by, he broke down the walls between amateurs and professionals, and he brought a function to music, except satisfying the intellectuals. From the viewpoint of the composer, the sonata for bassoon and piano can be classified as a sample of Gebrauchsmusic. 59

Hindemith composed for all kinds of music ensemble, specially he preferred the instruments having the limited repertoire. Contrastive melodies in the sonata for bassoon and piano are also seen in the sonatas for other wind instruments like flute, oboe, English horn, clarinet, trumpet, trombone, horn, tuba and saxophone. However, this situation is reflected to the general structure of work as a unique harmony.

The Sonata for Bassoon and Piano The sonata for bassoon and piano is qualified as a period reflecting on his music due to Hindemith's political and diplomatical reasons. His language of music is introverted and anti-romantic. The rythmycal structure of work arouses a calm, kind, stable, and also conservative feeling on audience. Hindemith presents this feeling by using some basic rhythmic structures and different variations. The contrast between parts are established on the rhythmic structure. Repeated rhythmic structures creates a new movement and dramatic feeling. The calmness and kindness dominating the work reveal an aspect of Hindemith's mostly neglected. Although he was banned from Germany, Hindemith's publisher ''B. Schott's Söhne of Mainz, Germany'', continued to publish his works, including two volumes of his theoretical thesis, Unterweisung im Tonsatz and The Sonata for Bassoon and Piano (1938) [4, p.108]. The sonata for bassoon and piano (1938) was first performed in Zürich, Switzerland. The performing artists were Gustav Studl, bassoon, and Sonata für Klavier vierhandig performed by Walter Frey and the composer [4, p.10]. The work consists of two parts. Even though, the tonal centers and relationships are clearly defined and classically conceived, no key signature is utilized in this composition [4, p.116]. The first section is Leicht Bewegt (lightly moving) and the second one is Langsam (slow). The second section is divided into three parts. The first movement is divided into three sections as ABA. Section A is located between the 1st and 19th bars. The introduction begins with a calm and kind expression, which has a basic rythmic structure, clearly reflecting Hindemith's character and representing the solo's fifth and fourth intervals (Figure 1). The piano supports the solo with eighth notes at the higher octave of the solo and brings in continuity.

Figure 1 - P.Hindemith’s Sonata for Bassoon and Piano 1 st Movement 1st - 4th bars The two phrases between 4th and 9th bars consist of ascendant chromatic notes. Locating between 9th and 16th bars, the interval of major and minor seventh is the most significant feature of the third phrase. In 16th and 19th bars, piano ends the section A and it acts as a bridge to the section B. Section B is located between the 19th and 38th bars, and melodically and rhythmically, it has a contrastive structure in comparison with A (Figure 2). The 19 th bar and the pastoral rhythm exhibited by the solo reveal this contrast in the most obvious way and create a stable effect (Figure 3).

60

Figure 2 - P.Hindemith’s Sonata for Bassoon and Piano 1 st Movement 19th - 23rd bars

Figure 3 - Pastoral Rhythm Same bars are repeated with minor changes. The G note in the first beat of the 28th bar is the highest note of the solo in this section and it chromatically shows the descent to the 31 st bar. Phrase beginning with the 31st bar is the repetition of the melody in the tone center of A♭ and it shows the end of the section B. Such a repetition often implies closure in Hindmith's style [4, p.120]. The introduction sign written on the 36th and 37th bars emphasizes the need of an effective preparation on the initial theme by making rallentando and decrescendo. The interval between 38th and 52nd bars is section A. The 38th bar and the initial theme are repeated. It is observed that the phrase is altered given at the beginning, between 46 th and 52nd bars. As opposed to the 52nd bar and the ascendant sounds of the solo, the descendant sounds of the piano are exhibited and it acts as a bridge to the coda. The coda begins with the 57 th bar and until the end of the work, it ends with a soft and solemn atmosphere in accordance with the character of the section. The second movement consists of three sections called Langsam, Marsch and Beschluss, Pastorale-Ruhig. In addition to having an individual character for each section, each section is also part of a whole. The introduction Langsam is in the form of a single-part. Similar to the first section, it starts with the exhibition of perfect fourth and fifth intervals (Figure 4).

Figure 4 - P.Hindemith’s Sonata for Bassoon and Piano 2 nd Movement 1st - 4th bars The rhythmic and melodic intensity beginning with the 4th bar lasts up to 10th bar and reaches to its peak with A. Beginning phrase is repeated when reached to the 12 nd bar. Along with the 15th bar, after a complex rhythmic and melodic sentence which follows bassoon and piano each other, codetta comes with the 19th bar and it is connected to the section Marsch. The section Marsch has a strong and regular rhythmic structure. Dotted rhythms reflecting the character of Marsch music at the beginning of the section clearly reveals the contrast with the previous section (Figure 5). 61

Figure 5 - P.Hindemith’s Sonata for Bassoon and Piano 2 nd Movement 23rd - 26th bars Between 31th and 39th bars, it repeats the phrase in the entrance of the section Marsch of the piano solo by making variations. The solo located between 39 th and 40th bars, was written on the repetition of the first two bars. The solo continues up to the Marsch at the forte nuance between 42 nd and 47th bars and the piano repeats the same phrase. Between 47th and 51st bars, the solo reaches to the forte nuance by starting softly and it is connected to the 52 nd bar. The 52nd and 56th bars are brief summaries of the section and it shows the end of the section. The section Trio is located between 57th and 111st bars. It has a long and fluent character according to the staccato, sharp and regular rhythmic structure of the section Marsch between 57 th and 66th bars. However, the accompaniment continues the section Marsch's rhythmic character and creates contrast (Figure 6).

Figure 6 - P.Hindemith’s Sonata for Bassoon and Piano 2 nd Movement 57th - 60th bars Between 66th and 74th bars, the solo repeats the first sentence of the Trio; when it comes to the accompaniment, complex rhythms draw attention. 75th and 94th bars are the part of the section Marsch where it is arranged and repeated by making transposition to various tones. Between 95 th and 104th bars, the solo accompanies with the piano and its nuance is forte. On the other hand, 104th and 114th bars are established on the repetition of the same phrase of the bassoon. 111st and 119th bars are the codas of the section Trio. It is connected with Zögern expression (with hesitation) seen in the 119 th bar and the bridge in the 120th bar. Beschluss, Pastorale-Ruhig mean Conclusion, Pastoral-Quite and it symbolizes the end of the work. The section starts with the beginning of the piano in the 121 st bar and the solo repeats the melody one-octave below (Figure 7).

62

Figure 7 - P.Hindemith’s Sonata for Bassoon and Piano 2 nd Movement 121st -124th bars 142 and 152nd bars are codettas. Softening the nuance, the repetition of the phrases and rhythmic decaleration make the end of the work feel. nd

Conclusion Hindemith's sonata for bassoon and piano, one of the most interpreted works within bassoon repertoire, is accepted as one of the keystones of education. The themes of the work handled brilliantly, harmonise with the physical and characteristic structure of the instrument. While different rhythms and unfamiliar arrangement of the section reveal the differences of the individual and characteristic features of the sections, it also implies general harmony. The work was written with the thought brought by Gebrauchsmusic and it has a simple and plain language. Thus, instead of various sound effects, it reflects the natural character of the instrument. The using of the counterpoint in the work shows the relationship with the Baroque period. The language of the music is introverted since it was written in a period when Hindemith was suffering from the political and diplomatical reasons. The work evokes a calm, kind, stable, and conservative feeling.

References [1] Ewen, D., American Composers Today, New York: H.W.Wilson Co., 1949. [2] Hindemith, P., Sonata for Bassoon and Piano, B.Schott's Söhne of Mainz, Germany. 1938. [3] Karcılıoğlu, İ., Paul Hindemith’in Didaktik Yönü, Müzik Dili ve Armoni Anlayışı, Yayımlanmamış Yüksek Lisans Tezi, İstanbul Üniversitesi Sosyal Bilimler Enstitüsü, 2007. [4] Koper, R.P., A Stylistic and Performance Analysis of the Bassoon Music of Paul Hindemith, Doctor of Education in Music Education, Urbana, Illinois, 1971. [5] Rubeli, V.A., Paul Hindemith und Zurich, Zurich: Kommissionverlag Hug and Co.,1969.

63

B123 The Rhetorical Feminization of China in Contemporary Chinese Novels of Transnational Love and Marriage:Origin, Development, and Evolution SUN Guirong College of Liberal Arts, Shandong Normal University, China, 250014 sunny72gr@yahoo.com.cn

Abstract Gender metaphor which China and the western nations follow started from the enlightening ideas of the intellectuals of the late Qing dynasty and the May 4 Movement. Although the specific ideas were different, under deep national anxiety, China was actually considered as a enlightened and awakened “feminized” role. This rhetorical feminization of China reappear in Contemporary novels in mainland China in the literary form of transnational love and marriage stories. It has experienced different discourse patterns of the self-love mutual analogy between China and its feminized role, different quality self-evaluation, and the possibilities of being deconstructed and adapted in the national development in the new century. Exploring the discourse formation of the rhetorical feminization of China and its text expression will be an effective way to introduce the national perspective into the social gender analysis. Keywords: Nationalism, Feminism, Image acceptance, Daily life ideology

1

Introduction

The paper introduces national perspective into the social gender analysis and studies the problem of China's “feminized” role, which lies the post-colonialist feminism as its theoretical bases. There have been relative studies of national relationship's gender metaphor on Chinese modern literature in the beginning of the 20century, while what Chinese contemporary transnational stories reveals in this aspect is still a new field. The paper clarifies the origin, development and evolution of the gender metaphor which China and the western nations follow for almost 100 years, especially its new change in the 21century, through complete and detailed textual interpretation. The analysed Chinese contemporary novels include Shaking Hands for the Second Time, Chinese Woman in Manhattan, I love Bill, Shang Hai Babies, A Foreigner in China, etc, which are all the famous and representative literature works in contemporary China.

2

Text

In 1914, Hu Shi, the famous Chinese thinker and writer, considered China as an Eastern sleeping beauty who was expecting the Western warrior's arouse and rescue in his poem the Song of Sleeping Beauty. Hu Shi explained it as following: Here is the European legend: A queen of splendid beauty offended a wizard, so the wizard ordered her to sleep for a whole hundred year in a confined tower, which was enclosed with thick thorn roses. Nobody dare to come in the tower, untill a warrior thrown the thick thorn roses and awaked the beauty with a kiss. Then they were married. In Hu Shi's opinion, China would rather be considered as a Eastern sleeping beauty than a sleeping lion which was well known at that time. His reason was that China's contribution to the world lied in its art and culture, not the military force. And this is the beginning of the Gender metaphor that China plays a “feminized” role when referring to Western nations. Of course, such gender metaphor comes from the enlightening ideas of the intellectuals of the late Qing dynasty and the May 4 Movement. Under the deep national anxiety, the intellectuals expected "feminized" China could absorb external advanced civilization to change her weak and backwward appearance by the means of marrying the "masculine" Western. That is to say, gender metaphor which China and Western nations follow started from the Chinese deep national concern, but there concealed an unequal national relationship between China and the West: the former acts the role of being waked and rescued, while the latter is the waker and rescuer. This rhetorical feminization of China reappears in the literary form of contemporary transnational love 64

and marriage stories of mainland China. And from the late of 20 th century to the 21th century, it has experienced different discourse patterns and brought about different aesthetic effects. Shaking Hands for the Second Time by Zhang Yang, was a famous underground novel at the end of the Great Cultural Revolution, which refered to such a plot that a Chinese beautiful and talent woman went to America to study physics and was deeply loved by her tutor, an American scientist. But it was not an ordinary love story, which frequently embodies the "national" characters: the woman's pretty and loneliness represented China's peculiar Eastern sentiment, and the American man was fascinated just by these; on the other hand , by loving a Chinese woman the man attempted to atone for his nation's crime (some of his fellow countrymen had commited aggression against China). The woman refused the man, the reason was still for the nation: she could not accept a westerner's love, because she loved her Chinese lover and she could not betray her country. In this story, China still played a “feminized” role, but "she" refused the Western's arouse and rescue. Such arrangement represented the main ideologic attitude of Chairman Mao times. In the eighties and nineties of 20th century, China enters its opening and reforming period. The nation's gender metaphor also appears a new looking. Chinese Woman in Manhattan by Zhou Li, the most popular and controversial book in 1992, told the story of a Chinese woman's success in the USA. The heroine had experienced lots of frustrations in China because of the unstable political situztion, and her several Chinese boyfriends, including her first lover she met during the Great Culture Revolution, are also not the ideal men. She left China lonely and sadly to look for her new life in 1980s. While in Manhattan she got the great success. Not only did she become an excellent businesswoman, but she fell in love with a charming American man. The American man was depicted a perfect man and he was also fascinated by her peculiar Eastern sentiment. Unlike the heroine of Shaking Hands for the Second Time , she accept the westerner's propose and married him happily. The woman was still described as the symbol of China, such as her Eastern pretty, her miserable suffering, her Eastern will and witness,etc. Her acceptance of the Western warrior's kiss indicated that after understanding its own backward and undeveloped situation, China desired to assimilate the Western civilization again. But the heroine's show of her pride and joy to marry a Western man revealed some disturbing information: there's a cultural tide of deviating from the nationalism and patriotism to a certain degree, which are the important Chinese traditional modes of thoughts for a long historic period. In the late of 1990s, in Chinese stories of transnational love and marriage there even came into an pattern that Chinese women admire and worship Western men,while the latter refused them just because they are Chinese! In I love Bill,writen by the famous woman author Wang Anyi, the heroine love Bill, a Western diplomat working in Shang Hai, mainly because of his Western background, while Bill refused her after they had sexual love because he couldn't marry a Chinese woman. The heroine was really infatuated with Bill's Western sentiment, but Bill only superficially adored her Eastern charm. Exactly speaking, the discrimination against China prevented him from whole-heartedly loving a Chinese girl. Neverthless, the heroine was lost in Bill's Western sentiment so deeply and feverishly that after Bill's leaving China she became a prostitute who especially did her business with Western men. In another novel Shang Hai Baby, the heroine's Chinese lover was an impotent man who could not satisfied her sexual passion, so she found a secret German lover for herself. The German in the novel was portrayed as a perfect lover: rich, masculine, and romantic. The heroine was so intoxicated in her German lover's Western tastes that she said "make love with him just as make love with all men around the world" . I love Bill and Shang Hai Baby both embodies another landscape of China's “feminized” role: Chinese women are not the sleeping beauties who were waiting for the Western warrior's arouse and rescue, but positively courted Western warrior's love to change their own individual living space (not the whole country's undeveloped station). So the novels truthfully cater to the idea of worshipping the West of some Chinese and got their sympathetic responce, while simultaneously encountered heavy and fierce protest of another Chinese people. Especially Shang Hai Baby , because the story portrayed Chinese lover as an impotent man, while the Western lover a masculine superman, it and its author Wei Hui suffered much vicious curse from the nationalists. At this time, the gender metaphor which China and western nations follow comes into an awkward situation. The change happened in the New century. With the development of China and its rising position in the world, the idea of adoreing the West decreased gradually and Chinese women no longer expect to close the ideal West by sexual love with a Western man . In A Foreigner in China by Xu Kun, the Canadian man Nealse came to China twice, but had different feelings. For the first time, it was in the early 1990s, he was warmly welcomed by Chinese native people and loved by a Chinese girl. In the 21 st century, he 65

came to Chinese universities again similarly as the foreign teacher, due to his bachelor's degree and relatively low income compared with other higher Chinese tutors, he did not enjoy the special treat just because he was a Westerner, which was opposite to the Western heroes of the above stories. At last, he left China lonely and melancholy. This is an another fable of the nation's gender metaphor. Chinese women reject Western men, as if the time had been come back to date of Chairman Mao again, but the two are fundamentally different: in Shaking Hands for the Second Time Chinese woman's rejection to a Western man came from the obedience of that time's dominant ideas, while in A Foreigner in China the key power was not the ideas but actual strength, national strength or individual strength. The fact that Chinese women no longer stress on one's national background when they fall in love just reflects changes of the traditional gender metaphor which China and western nations have been followed for almost one hundred years.

3

Conclusion

The rhetorical feminization of China in contemporary Chinese novels of transnational love and marriage has a long tradition and strong origin. It has the intensely changing pattern as well. From Shaking Hands for the Second Time to Chinese woman in Manhattan, from I love Bill to Shang Hai baby and A Foreigner in China, it has experienced different discourse patterns of the self-love mutual analogy between China and its feminized role, different quality self-evaluation, etc. And in A Foreigner in China or other Chinese novels of the new century, there even appears the possibilities of the gender metaphors' being deconstructed and adapted with the national development. Exploring the discourse formation of the rhetorical feminization of China and its text expression will be an effective way to introduce the national perspective into the social gender analysis.

Author in brief SUN guirong (1972— ), vice-professor of college of liberal arts, Shandong normal university. As the chief of teaching and research section of Chinese contemporary literature, she has published more than fifty papers in all kinds of Chinese academic magzine, including authoritative periodical literature review, literary and art study, etc. Up to now, she has undertaken several scientific research items at or above provincial ministerial level and complete several scientific and technological achievements, including four academic works, Mass Explain and Cultural Identity, Pluralistic expression of gender discourse, Passion and Anxiety of self-expression and Chinese feminism and literature in Modern Time. She had won the excellent paper prize on doctor degree of Shandong province, and the prize of excellent achievement of Chinese contemporary literature research institute as well.

References [1]. Kriemild Saunders, ed.: Feminist Post-developmment Thought: Rethinking Modernity, Post-colonialism and Representation (London and New York: Zed Books, 2002) [2]. Deborah L Madsen: Feminist Theory and Literary Practice (Foreign Languge Teaching and Research Press Pluto, 2006 ) [3]. Susan Griffin: Women and Nature: The Roaring Inside Her, (London: The Women’s Press, 1984.) [4]. Mackinnon, C. A. Toward a Feminist Theory of the State, Cambridge: Havard University Press, 1989. [5]. Gerard Genette, Narrative Discourse Revisited, Jane. E. Lewin trans. (Ithaca, Cornell University Press, 1988). [6]. Cathleen Rountree, On Women Turning 70, (Josey-Bas Publishers, 1999.) [7]. Chandra T. Mohanty, Feminism without Borders: Decolonizing Theory, Practicing Solidarity (Durham & London: Duke University Press, 2003) [8]. Wang Yu, Gender Expression and Modern Identity: Interpretation of Chinese Narrative texts of the late of 20 century, Shang Hai San Lian publishing house, 2006 (in Chinese). [9]. Sun Guirong, Pluralistic expression of gender discourse: Study of Feminist of Chinese Contemporary Literature, people's Literature Publishing House, 2011 (in Chinese).

66

B300 EDUCATIVE APPROACH TOWARDS PIANO SONATAS BY MOZART Prof. Toros Can, Anadolu University, State Conservatory, Music Department, Eskişehir, Turkey E-mail: toroscan@gmail.com

Abstract Let us admit that there are not too many of us that know all Mozart sonatas in detail. Nevertheless, we all could easily agree on the importance of these works in curriculum. These sonatas are milestones in pianists’ and teachers’ repertoire and yet they are not considered as classified educational materials. Academics would agree that one of the most researched topics is Mozart’s solo piano sonatas. The scores are easy to find, libraries have many articles and books about them. What I humbly found missing is an explanation of these works for professional piano education in music institutions. A chart to classify these works into categories divided by different aspects could help teachers when hunting for the best possible option. Also, to any range of performers, I believe and hope, would benefit from a pianistic point of view towards Mozart’s sonatas. Keywords: Mozart, piano, sonata, chart, education

Introduction Mozart’s musical language is the widest known to any music lover. It is easy to listen by grasping the attention of listener with unique melody lines. In his piano sonatas one could see the best examples of his style. They have drama, laughter, reminiscences and all the emotional output that makes the music Mozart’s. These sonatas also play a great deal in piano teaching area. They are no less important than Bach Preludes and Fugues or Beethoven Sonatas in piano repertoire; both educational and performing purposes. The main reason of this document is the lack of a quick chart when a teacher decides to choose a sonata by Mozart for the student. A quick guide, I believe, would serve the purpose of decision when concerning the students’ ability and/or problems on technical and musical problems.

Sonatas by Mozart Even though the approximate age for beginning an instrument playing differs from one ecole to another, it is commonly accepted to start it at an early age. Concerning piano playing, as much as for the other instruments, the patience is an important key to become physically ready. For an undeveloped piano student, the arms are not long enough to reach the extended keyboard; legs are not able to press any pedal, hardly; fingers struggle with playing regular and smooth. Mozart sonatas serve for this purpose and fit the required needs perfectly as these mentioned problems are actually almost absent. Also, one cannot wait to be absolutely ready physically to start learning piano; time should be used wisely so that, while the student’s hands and arms develop, working on piano towards the same goal must be taken into account. Since Mozart’s piano sonatas written for the instrument fortepiano, the keys are smaller and shorter. Thus, for young piano students whose hands are not yet fully developed, these works fit perfectly for them. Also, because Mozart’s works for pianoforte do not require widely extreme register at the keyboard, a young student feels somehow at home when performing these works. Concerning pedal, for educational purpose, a young pianist can “get away” without using any. Dynamics are not forced in Mozart sonatas; young pupil does not feel insufficient expressing dynamics. Most of all, there are different types and levels of difficulty to be used in students’ curriculum; one can play K.310 or K.457 for a graduation exam or recital while a young one could start playing K.545 almost a year after starting piano. In music education, Mozart’s piano sonatas play one of the greatest roles for expanding the students approach towards form, regularity, sensitivity, Alberti-bass styles, Classical style and basic dynamics 1. These parameters act as one of the most important basis to become a well-educated performer. A 67

teacher should be able to calculate and categorize these sonatas in order to regulate the pace of difficulty. These difficulties should not be considered only for finger speed but more for delicacy, regularity, style, form understanding and musical imagination or creation. Even though Kinderman 2 states that, in his letter Mozart describes six early sonatas as difficult, it is obvious that the composer was comparing these with his earliest piano works. Clear evidence is K.310, one of the hardest sonatas among 18. According to Köchel Catalogue 3, the sonatas are listed below: No.1 No.2 No.3 No.4 No.5 No.6 No.7 No.8 No.9 No.10 No.11 No.12 No.13 No.14 No.15 No.16 No.17 No.18

K.279 K.280 K.281 K.282 K.283 K.284 K.309 K.310 K.311 K.330 K.331 K.332 K.333 K.457 K.533/494 K.545 K.570 K.576

1774 1774 1774 1774 1774 1775 1777 1778 1777 1778 1778 1778 1778 1784 1788/1786 1788 1789 1789

Salzburg Salzburg Salzburg Salzburg Salzburg Munich Mannheim Paris Mannheim Paris Paris Paris Paris Vienna Vienna Vienna Vienna Vienna

Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano Sonata for Piano ‘Alla Turca’ Sonata for Piano Sonata for Piano Sonata for Piano Allegro & Andante / Rondo Sonata for Piano ‘Sonatina’ Sonata for Piano Sonata for Piano

C Major F Major B Flat Major E Flat Major G Major D Major C Major A minor D Major C Major A Major F Major B Flat Major C minor F Major C Major B Flat Major D Major

Chart In this chart difficulties are divided into two sections as “musical” and “technical”. One can argue if “technical problems” consist “musical problems”. In other words, are there any difference or similarities between technical or musical problems? The answer is much clearer when one considers or rather hears this question not from an intellectual professional but from a young piano student. It is obvious that difficulty refers as “hard to play” from a youngsters’ point of view. Therefore, this chart was built up from a personal experience but also investigated the written score from a student point of view. It is safe to say that a young piano student usually struggle with arpeggios and scales. Another problematic and somewhat scary to a student is embellishments that consists trills, mordents etc. Pedagogically, a sonata that has vast usage of scales might be a reason to consider for a performance to fight against the weakness. On the other hand, the same sonata might not be a good example to perform when student needs the comfort. Length is also another useful indication when programming sonatas in recitals or examinations. These are the reasons of added parameters on the chart below. It is hard to define it concrete, as for anything in music. Hinson 4 describes only three sonatas as “difficult” (K.457, 533/494, 576) and one “medium to difficult” (K.284). The rest of the sonatas stated as “medium difficult”. This is true and valid for a repertoire of a pianist but not for students in different levels. Here, difficulties are grouped into four levels: Easy (E), Medium (M), Medium-Difficult (MD) and Difficult (D). For scales, arpeggios and embellishments: Almost None (AN), Some (S) and Plenty (P) are used below.

Difficulty

K.279 K.280

Musical

Technical

Scales / Arpeggios

E M

E MD

S / AN / AN S / AN / AN 68

Embellishments

Length (approx.)

S / AN / AN AN / AN / AN

19:00 19:00

K.281 K.282 K.283 K.284 K.309 K.310 K.311 K.330 K.331 K.332 K.333 K.457 K.533/4 94 K.545 K.570 K.576

D MD E D MD D D D D M M D

MD M D D MD D D MD MD D MD D

AN / S / S AN / AN / AN S/S/P S / AN / P AN / S / S S/P/P P/P/P S / AN / P P/S/P S / AN / P S/S/P P/P/S

P / AN / P AN / AN / AN AN / P / S AN / P / P AN / S / S AN / P / P P / P / AN AN / AN / P P / AN / AN AN / P / AN S / AN / S P / P / AN

19:00 13:00 18:00 26:00 19:00 20:00 19:00 21:00 23:00 20:00 26:00 21:00

MD

M

P/P/S

S/S/S

25:00

E M MD

E MD MD

S / AN / AN AN / AN / P P/P/P

S / AN / AN AN / AN / AN AN / AN / AN

12:00 19:00 17:00

Conclusion As a piano teacher, performing or a learning pianist, the importance of Mozart sonatas is undeniable. For these monumental works, a chart to categorize them in useful parameters might be imperative to see the comparisons, at a glance. As there are a few musicians and teachers who know these sonatas in detail, this work might help young generation of pianist or teachers to build up a recital program and examinations. Students need to develop technical abilities. Besides the musical importance of these sonatas, they can serve for educational purposes. For the benefit of the educational quality, one has to know the score in these parameters; a student who’s weak points might or might not be revealed. I humbly hope that educators will be able to profit from this document.

References [1] [2] [3] [4]

Mozart, W. A., Sonaten, Fantasien und Rondi I-II, ISBN 963-8303-33-6, Könemann Music Budapest, 1993. Kinderman, W., Mozart’s Piano Music, ISBN 0-19-510067-0, Oxford University Press, Inc. New York, 2006, p.14. http://www.csudh.edu/oliver/kochel.htm, visited October 2012. Hinson, M., Guide to the Pianist’s Repertoire, ISBN 0-253-33646-5, Indiana University Press, 2000, pp.551-553.

69

Culture II Pullman Bangkok King Power, BETA II 2013/1/27 Sunday 13:00-14:30 Session Chair: Prof. Ahmet Bulent Alaner B323 Culture, Communication and Competence: Application of a Theoretical Model to Intercultural Interactions in a Service Industry Leonard Barnett︱Bangkok University Edward G.L. Carter︱Bangkok University B335 Shifting Moral Value in Balinese Adolescent Indri Oktavia Rospita︱University of Udayana Kinanti Larasati︱University of Udayana B405 Shifting Identities: Changes in Immigrant Subcultural identity as part of the process of Assimilation and Accomodation Roger Sherman︱Seton Hall University B369 The Place of Polyphonic Music within the Westernization Initiations of Ottoman Empire Ahmet Bulent Alaner︱Anadolu University School of Music And Drama B464 Academics Ethics of Philosophers in Slovakia Vasil Gluchman︱University of Presov B282 Reading Through Desires, Rituals, Silence and Protest of Women in Bhojpuri Folk Songs Vachaspati Dwivedi︱S.V.P.G. College

70

B323 CULTURE, COMMUNICATION AND COMPETENCE: APPLICATION OF A THEORETICAL MODEL TO INTERCULTURAL INTERACTIONS IN A SERVICE INDUSTRY LEONARD BARNETT1, EDWARD G. L. CARTER2 1 BANGKOK UNIVERSITY INTERNATIONAL, BANGKOK UNIVERSITY, BANGKOK, THAILAND lenbarnett@yahoo.com.au 2

BANGKOK UNIVERSITY INTERNATIONAL, BANGKOK UNIVERSITY, BANGKOK, THAILAND eglcarter@yahoo.com

Abstract This study researches the effects of culture on interactions in a service industry in Thailand. The data source is hospitality and tourism (h&t), as it offers unique advantages for studying cultural interactions. This multicultural industry, yielding multiple intercultural interplays and interpretations, produces countless intercultural interactions, providing a rich vein for research. The analysis draws conceptual and etiological linkages between culture, communication, management, competence and interactions and is positioned theoretically amongst intercultural communication, intercultural competence, intercultural management and intercultural aspects of h&t. The research methodology is a qualitative interpretivist approach, employing in-depth, semi structured interviews and non-participant observation. Content analysis and reiterative multi-step coding are applied to the data. The emergent findings are explained using intercultural theoretical constructs, leading to a critique of the usefulness of a well-known theoretical approach, ‘dilemmas of culture’. The study is significant, being one of the few systematic approaches to intercultural interactions in h&t and because the impact of cultural factors and intercultural competence is relatively neglected educationally. This research demonstrates the usefulness/limitations of Trompenaars’ approach and that considerable intercultural competence is required of practitioners. Finally, the paper identifies future opportunities for research and education. Key words: Culture, interactions, competence, hospitality, tourism

Introduction This study researches the effects of culture on interactions in a service industry in Thailand. The data source is hospitality and tourism, as it offers unique advantages for studying cultural interactions. This multicultural industry, yielding multiple intercultural interplays and interpretations, produces countless intercultural interactions, providing a rich vein for research. This investigation is part of a series and a pioneering academic examination of culture and interactions in the tour-ism industry in Thailand. The study assesses the applicability of a Trompenaars’ theoretical approach and is a valuable guide to identifying intercultural management and training issues. Later studies in the series will focus on customers and frontline staff. The investigation examines intercultural communication, competence and associated concepts, employing an interpretive qualitative research methodology with a sample of senior management personnel to answer these research questions: 1. What are the characteristics of intercultural competence and intercultural interactions in the Thai tourism industry, as reported by senior managers? 2. How well does Trompenaars’ notion of ‘cultural dilemmas’ explain intercultural interactions in the Thai tourism industry? The research’s objectives are 1) describe the theoretical context of intercultural competence; 2) investigate intercultural interactions in the Thai tourism industry; 3) assess the usefulness of Trompenaars ‘cultural dilemmas’ concept; 4) provide guidance on intercultural management and training issues in the industry. Significant findings and the usefulness of “cultural dilemmas” in explaining these are discussed and future research opportunities identified. 71

Literature Review The field of intercultural competence is populated by a baffling array of terms and overlapping conceptual descriptions. This study uses the term intercultural, the study of distinct cultures in interaction and not cross-cultural, the comparative investigation of different cultures. In positioning this research academically, the relevant theoretical fields can categorized as intercultural communication competence, intercultural competence, intercultural competence and tourism and hospitality and intercultural competence and management. Intercultural communication competence Studies of intercultural communication competence emphasize traits, perceptions, behaviors or the culture-specific [1]. For example, approaches include uncertainty reduction strategies [2], non-verbal communication [3], identity maintenance [4] knowledge, skills and motivation, and many more [5]; [6]; [7]. Others emphasize interactional and relational aspects [8] while Chen and Starosta [9] stress affect and social relaxation in intercultural dealings. Intercultural competence Trait, interactional and developmental approaches predominate in studies of intercultural competence. Fantini, Arias-Galicia and Guay [10] define intercultural competence as “multiple abilities that allow one to interact effectively and appropriately across cultures.” Kohls [11] adds humor and ability to accept failure. Other notable trait or ability oriented studies include Fantini [12] and Samovar and Porter [13]. Pusch [14] and Lustig and Koester [15] stress the importance of the milieu, context and interactional aspects of intercultural competence. Developmental and process approaches include increasing awareness, knowledge and skill [16], ‘intercultural transformation’ [17] and movement from ethnocentric to ethnorelative [18]; [19]—all stressing the capacity to change one’s internal frame of reference. Other process approaches are reconciling cultural differences [20], “global people skills” [21], and “global literacy” [22]. Regarding second language proficiency in intercultural competence, some [2] ignore it while others promote it [23]; [24]; [25]. Roberts et al. [26] report that the most so-called cultural misunderstandings are due to language difficulties. Criticisms of the field include confusing terminology, non predictivity, ethnocentrism and definitions which are overlapping, too general, or simply disorganized listings [25]; [27]; [28]. Intercultural competence and Tourism and Hospitality The multi-billion dollar international tourism industry yields an incalculable number of intercultural interactions each year. Notable studies in this important area deal with intercultural competence and adaptation [29], sustainable tourism and customer satisfaction [30]; [31]; [13]. Gannon [24] laments that neither business nor educational institutions fully appreciate the importance of intercultural competence and that this will negatively impact the industry’s future. Baum and Devine [32] note that an “employee’s ability to be productive depends on the level of cultural awareness learning/training received.” Intercultural competence and Management Intercultural management is concerned with the effective functioning of diverse groups of people in organizations [28]. Hofstede [33], arguing for culturally appropriate management styles, introduces ‘dimensions of culture’. Wong [34] stresses the similarities, not differences, between international managers. Bartlett and Ghoshal [35] state that international management must integrate diversity by understanding the cultures of their target markets and of the locations in which they operate. Trompenaars’ [36] [20] studies of managing diversity cover intercultural relationships, reconciling cultural dilemmas and patterns of organizational culture and structure. His ‘dilemmas of culture’ are: 1. Communitarianism vs. individualism, (group vs. individual), 2. Universalism vs. particularism (rules vs. relationships), 3. Neutral vs. emotional (how and what feelings are expressed), 4. Diffuse vs. specific (range of involvement we have with each other), 5. Achievement vs. ascription (how status is accorded), 6. Time (sequential vs. synchronic and orientation to the past, present and future) and 7. Environment: (internal vs. external locus of control).

72

Criticisms of his model include too many exceptional cases [28], too general, cultural stereotyping, equating nationality with culture [27] and that it is not predictive [37]. Despite these cautions, the ‘cultural dilemmas’ concept remains one of the most widely referred to in intercultural studies and international management. Even Jacob [28], a critic, calls him a “luminary in the field”.

Methodology A qualitative interpretivist approach, using an inductive method, is appropriate for this study with a small sample, aiming to access deeply embedded data about interactions and understand the issues and meanings respondents attach to them [38]; [39]; [40]. Research questions and objectives are given in the Introduction. The sample was five senior tourism and hospitality managers selected for their expertise and international experience. Data was collected using semi-structured interviews and non-participant observations [38]; [41]; [42]. Content analysis and a reiterative multi-step coding technique were applied to the data, enabling accurate sorting and analysis [39]. For validity, the study incorporated multiple research methods, participant validation, detailed records and highly experienced, knowledgeable participants, familiar with the research area [40]. For reliability, the investigation incorporated one set of interview questions to enable response consistency checks across interviews and observations, systematic coding and data collection and a research diary [40]; [43]. Research was limited by time and resources, due to more than full time teaching loads and no research funding, which restricted sample size and diversity, though this was adequate. All respondents gave informed consent before the study. Sensitive commercial and personal data was closely guarded and all information, including names, from the interviews and observations is confidential.

Findings Analysis of 113 data items yielded the following seven major themes: 1. Positive feedback from and experience of customers: interactions, honesty, attitude to work, duty managers’ efficiency and ability to work calmly under pressure. 2. Friendliness and the power of the “smile”: friendliness, smiling behaviors, gracefulness, courtesy, empathy, masking of negative feelings, spontaneity, relevance of Buddhism, skepticism re: genuineness and different meanings of Thai smile. 3. Proactivity and Initiative: lack of proactivity and initiative, need for clear structure, inflexible adherence to procedures, lack of ambition, reluctance to work outside Bangkok; uncertainty behaviors, e.g. getting the manager, freezing, hiding, smiling and ignoring; reported possible causes: education system, culture and status, attachment to family and home, insularity and even, a lack of common sense. Mentioned were overcoming this through financial reward and empowerment, banning the phrase, “mai dai” (“it cannot be done”). 4. Management, responsibility and accountability: cooperative, hardworking, motivated, very loyal, responding well to training, unwilling to enter senior management, satisfied with supervisor level, wanting the protection of a senior manager, fear of accountability, in this respect different to other employees in Asia and the region, loss of face and staff evaluation, use of humiliation for change, wanting participation in decision-making but reluctant to accept consequences, seeing positions as a life tenure, staying too long; foreign manager’s intercultural competence crucial: relationship development, encouraging cultural observances, judgments about status and flexibility. 5. Communication: fear of complaining, ‘kill the messenger’, avoiding confrontation, difficulties obtaining full information about problems or complaints, staff not telling management the full story. 6. Status: differential treatment of guests, hi-so lo-so, status relations among staff, phi-nong (superior-subordinate, senior-junior), ethnicity – differential treatment of Westerners, Indians and Arabs, status of job, company brand loyalty. 7. Relationships: Relationship and trust building, relationship management, ‘screwing over,’ group and family loyalty, cronyism, company as family, astute observers of relationships.

Discussion and Conclusion This section applies Trompenaars’ [20] [36] notion of dilemmas of culture to the findings, considers other theoretical explanations and assesses the concept’s usefulness in this study. 1. Positive feedback from and experience of customers: This finding is not surprising as these are staff in some of the best hotels in South East Asia. Thais strongly value ascribed status [36] so, consequently, high paying guests are treated with deference and respect. Trompenaars’ particularism complements ascribed status as lower rank persons (staff) go to great lengths to assist and relate 73

positively to these particular customers. Communitarianism and the framing of the organization as a family [20] reinforce the welcoming attitudes of staff. Alternative explanations could include Shapero’s [30] and Baum and Devine’s [32] notion that intercultural competence increases customer satisfaction. Are the staff highly interculturally competent or do they simply appear to be so for cultural reasons? Given the importance of the particular situation and context in intercultural competence [14], [15], high customer satisfaction may reflect that these staff in these hotels, interacting with these particular guests, display significant intercultural competence in this situation. Or is it that particularism, communitarianism and ascribed status predispose these staff to appear to be interculturally competent with these guests in this situation? This latter explanation is underscored by a respondent’s view that the finding was due to staff’s personal qualities and staff selection (R5: respondent 5). 2. Friendliness and the power of the “smile”: Findings 1 and 2 are interrelated as positive customer feedback is affected by the friendliness of the staff and the famous Thai smile (R1). Incompetence is also masked by these attributes (R2, R5). Trompenaars’ ascribed status explains much of this behavior as lower rank individuals display positive emotions, facial expressions, etc. to higher rank and avoid negative display. The dilemma of affective vs. neutral, dictates the amount and type of feeling that can be displayed in a particular culture. To preserve communitarian harmonious relationships, the display of negative emotions is suppressed and positive feelings and smiles encouraged. All respondents were aware of the variations in the Thai smile (R4), with one reporting five types (R2). However, a respondent’s comment that “It’s amazing what we get away with” (R2) leads to a consideration of the iconic smile as an interculturally competent marketing behavior. The zone of tolerance is widened if the customer perceives service failure as due to a cultural misunderstanding [44]. Furthermore, recovery behavior after service failure is crucial [44]. In this study, where there was a delay or error, staff’s smiling behavior was observed to increase as would the number of staff smiling. This behavior appeared to influence customers to be patient and accepting. Intentional or not, the Thai smile smoothly shifts incompetence into the realm of intercultural misunderstanding. 3. Proactivity and initiative: Communitarians do not value proactivity and initiative as highly as their individualistic managers. In an ascribed status setting, it is expected that externally (locus of control) focused staff will follow the boss’s orders without criticism or expecting delegation. Rigid adherence to procedures (R1, 2, 3, 4, 5) reflects the perceived centralization of power (ascribed status) and the dilemma, relating to nature, whereby staff recognize their locus of control (e.g. the procedures) as external. However, freezing, hiding and ignoring behaviors are best accounted for by Hofstede’s [45] uncertainty avoidance. Furthermore, communitarianism, attachment to family and friends, with uncertainty avoidance explain unwillingness to travel or work outside Bangkok. 4. Management, responsibility and accountability: Trompenaars’ communitarianism accounts for reluctance to assume senior management responsibility and accountability (R 2, 3, 4, 5) as these are strongly individualistic notions. Status aspirations are fulfilled by their current positions or achieving supervisor level where accountability can be pushed upwards. Furthermore, the ‘boss’ must often be the bearer of unwelcome news which disturbs communitarian harmony. Problems with staff evaluation are explained by the dilemma of diverse vs. specific, where the personal and the public (professional) are merged, as noted by Trompenaars. Criticism of performance is avoided and, when received, taken personally with consequent loss of face or perceived social regard. Staff immobility and ‘staying too long’ (R4, R5) are reinforced by communitarianism and ascribed status which underlie the model of the organization as a family. Here loyalty is more important than current performance. In addition, Trompenaars’ indicates that cultures with a long time orientation perceive past loyalty and effectiveness as relevant to current evaluations and decisions about staff. Participation in decision-making but reluctance to take consequent responsibility reflects an unreconciled cultural dilemma within communitarianism vs. individualism or an incomplete intercultural competence transformation [17]. Here we have staff who perceive their participation, not as individualistic with consequent accountability, but as communitarian, demonstrating unity and togetherness. The finding that senior managers’ intercultural competence is crucial for effectiveness is supported by much of the literature (e.g. [24] [32]) and by Trompenaars’ multicultural management. 5. Communication: In a high context culture, most of the message is not ‘spelt out’ in words but in context, or not at all, whereas in low context cultures (respondents are from Northern Europe and North America), the focus is on words and precision [45]; [36]. Consequently, much information is not 74

communicated to or not understood by low context actors. The tendency to ‘shoot the messenger,’ the bearer of bad news (R2, R4), is explained by staff’s communitarian concern to maintain harmony and balance in relationships and work affairs. Communitarianism, together with the neutral vs. affective dilemma, which determines what feelings may or may not be expressed or provoked, accounts for why problems are often not reported and, when they are, the communicator is censured. Staff’s reluctance to express negative feelings, reflecting the neutral vs. affective dimension, extends to the communication of negative news (R5). 6. Status: Norms around ascribed status permeate Thai culture and behavior. Phi-nong (superior-subordinate) washes through inter-staff relationships and interactions with customers (R1, R2). If the guest is hi-so (high status), they receive more attentive service than lo-so (R2). Staff’s favoring Western customers above Indians and Arabs (R2, R5) reflects not simply prejudice but also the status ascribed to certain groups by the surrounding culture. On the other hand, the very high status of the employer’s brand elicits considerable effort, motivation and pride from staff. 7. Relationships: Relationship development is a core intercultural competency. Reflecting high communitarianism and particularism, strong relationships are a cornerstone of the society and crucial in the local business culture, with Thais preferring informal and personal relationship-based communication [46]. Reflecting their own intercultural competence, all respondents commented on this feature and the dire consequences of not being able to establish strong relationships. The staff are astute observers of relationships and communication (R1, R3, R4), displaying high emotional intelligence [47] and are impressive relationship managers [48], a core competency in a particularist culture. This is best illustrated in situations where personnel who are not accepted (e.g. Thais returning from overseas trying to change things, interculturally incompetent foreign staff) are controlled, changed or ejected through relationship management. “They get really ‘screwed over’” (R2). The importance of relationship management and building empathy and trust are well accounted for by Trompenaars’ notion of particularism, i.e. the particular persons and relationships are more important than the rules and operations. Summary: Although dilemmas of culture do explain the study’s findings reasonably well, the categorizations are very general, e.g. is relationship harmony best explained by this dilemma or that one and how do they interact? There are usually other explanations possible for all the findings. In regard to the research questions, the study successfully 1) describes characteristics of intercultural competence and intercultural interactions in the Thai tourism industry as reported by senior managers and assesses 2) how well Trompenaars’ notion of ‘cultural dilemmas’ explains intercultural interactions in the Thai tourism industry. The study found that, as a way of explaining intercultural interactions in the Thai tourism industry, Trompenaars’ dilemmas of culture are adequate but inexact. Other significant findings are the overarching power of ascribed status, communitarianism and high context, staff’s astute use of relationship management and the value of the iconic Thai smile as a marketing behavior.

Areas for Future Research Similar research is planned with customers and staff. Among future opportunities, study is required to clearly specify how cultural dilemmas can be more effectively reconciled, e.g. staff’s reluctance to move into senior management. Another interesting research topic might be the behavioral and marketing aspects of the ‘smile.’

References [1] Lustig, M.W & Koester, J (1993). Methodological issues in the study of intercultural communication competence. in R.W Wiseman & J Koester (Eds.), Intercultural communication competence 153-167. Newbury Park: Sage [2] Gudykunst, W. B. (1994). Bridging differences: Effective intergroup communication (2nd ed.). London: Sage. [3] Anderson, L. E. (1994). A new look at an old construct: cross-cultural adaptation. International Journal of Intercultural Relations 18(3): 293-328. Great Britain: Elsevier. [4] Ting-Toomey, S. and Chung, L. C. (2004). Understanding intercultural communication. Los 75

Angeles: Roxbury Cegala, D. J. (1984). Affective and cognitive manifestations of interaction involvement during unstructured and competitive interactions. Communication Monographs, Routledge [6] Hammer, M. R. (1987) Behavioral dimensions of intercultural effectiveness: A replication and extension. International Journal of Intercultural Relations, Volume 11, Issue 1, pages 65-88. Great Britain: Elsevier Science Ltd. [7] Kim, M.-S. (1993) Toward a theory of conversational constraints: Focusing on individual-level dimensions of culture. in R. L. Wiseman (ed.), Intercultural communication theory (pp. 148-169). Thousand Oaks: Sage [8] Imahori, T. T., and Lanigan, M. L. (1989). Relational model of intercultural communication competence. International Journal of Intercultural Relations, 13, 269-286. [9] Chen, G. M., & Starosta, W. J. (1999). A review of the concept of intercultural awareness. Human Communication, 2, 27-54. [10] Fantini, A.E., Arias-Galicia, F., & Guay, D. (2001) Globalization and 21st century competencies: Challenges for North American higher education. Consortium for North American Higher Education Collaboration Working Paper Series on Higher Education in Mexico, Canada and the United States (Working Paper No. 11). Boulder: Western Interstate Commission on Higher Education. [11] Kohls, L. R. (1996). Survival kit for overseas living (3rd ed.). Yarmouth, ME: Intercultural Press. [12] Fantini, A.E. (2000). A central concern: Developing intercultural competence. retrieved April 2003 from http://www.sit.edu/publications/docs/competence.pdf. [13] Samovar, L.A. & Porter, R.E. (Eds.). (2001). Communication between cultures (4th ed). Belmont, CA: Wadsworth. [14] Pusch M. D. (2004) Intercultural Training in Historical Perspective, Newbury Park. Sage. [15] Lustig, M.W., & Koester, J. (2003). Intercultural competence: Interpersonal communication across cultures (4th ed.). Boston: Allyn & Bacon. [16] Pedersen, P. (1994). A handbook for developing multicultural awareness (2nd ed.). Alexandria, VA: American Counseling Association. [17] Kim, Y.Y., & Ruben, B. D. (1992). Intercultural transformation. In W.B. Gudykunst & Y.Y. Kim (Eds.), Readings on communicating with strangers: An approach to intercultural communication (pp. 401-414). New York: McGraw-Hill. [18] Bennett, M. J. (1993). Towards ethnorelativism: A developmental model of intercultural sensitivity. In R.M. Paige (Ed.), Education for the intercultural experience (2nd ed., pp. 21-71). Yarmouth, ME: Intercultural Press. [19] Fennes, H., & Hapgood, K. (1997). Intercultural learning in the classroom: Crossing borders. London: Cassell. [20] Trompenaars, F. & Hampden-Turner, C. M., (2001). Riding the waves of culture: Understanding cultural diversity in business (3rd ed). London: Nicholas Brearley. [21] Gundling, E (2003). Working GlobeSmart: 12 people skills for doing business across borders. Palo Alto: Davies-Black. [22] Rosen, R., Digh, P., Singer, M., & Phillips, C. (2000). Global literacies: Lessons on business leadership and national cultures. New York: Simon and Schuster. [23] Lambert, R. D. (Ed.) (1994). Educational exchange and global competence. New York: Council on International Educational Exchange. [24] Gannon, J. (2008) Developing Intercultural Skills for International Industries: The Role of Industry and Educators. Oxford Brookes U. Hospitality, Leisure, Sport & Tourism Network: Enhancing Series: Internationalisation. [25] Piller, I. (2007) Linguistics and Intercultural Communication, Language & Linguistic Compass 1/3. 2007. 208-226 [26] Roberts, C. Becky Moss, Val Wass, Srikant Sarangi and R. Jones (2005) Misunderstandings: qualitative study of primary care consultations in multilingual settings & educational implications. Medical Education. 39. 465-75 [27] Holden, N. (2001), Cross-Cultural Management: A Knowledge Management Perspective, Financial Times Management [28] Jacob, N. (2004) “Intercultural Management”, 1st ed., Vasishtha for Kogan Page Pvt. Ltd., New Delhi [29] Hottola, P. (2004). Culture confusion. Annals of Tourism Research, Vol. 31, No. 2, pp 447-466. Great Britain: Elsevier. [30] Shapero, M. A. (2006). Cross-cultural Training for Hospitality and Tourism: Improving Service Encounters through Industry-targeted Critical Incidents. Comparative Cultures Collegium. Eckerd [5]

76

College [31] Tse, E. C-Y. and Ho, S-C. (2009). Service Quality in the Hotel Industry: When Cultural Contexts Matter. Cornell Hospitality Quarterly, 2009, 50(4), 460-474 [32] Baum, T. and Devine, F. (2008). Cultural Awareness in the Curriculum. Higher Education Academy Network for Hospitality, Leisure, Sport and Tourism. [33] Hofstede, G. (1980). Culture’s Consequence. Beverly Hills, CA: Sage [34] Wong, Kwei Cheong (1991) The Style of Managing in a Multicultural Society-Singapore in J.M Putti (ed) Management Asian Context. Singapore McGraw Hill. 78-94 [35] Bartlett, C. A. and Ghoshal, S. (1989). Managing Across Borders: The Transnational Solution. Harvard Business School Press. [36] Trompenaars, F. (1993). Riding the waves of culture: Understanding cultural diversity in business. London: Nicholas Brearley. [37] Cray D. & Mallory G. (1998). Making Sense of Managing Culture. London: International Thomson Business Press. [38] Daymon, C. and Holloway, I. (2002). Qualitative research methods in public relations and marketing communications. London: Routledge. [39] Bryman, A. & Bell, E. (2007). Business research methods, (2nd edition). Oxford: Oxford University Press. [40] Bryman, A. (2004). Integrating quantitative and qualitative research: how is it done? Sage Publications, London. [41] Crouch, S. and Housden, M. (1996). Marketing Research for Managers, (2nd edition). Oxford: Elsevier. [42] Chisnall, P. (2001). Marketing research (6th ed.). London: McGraw-Hill. [43] Krippendorff, K. (2004). Content Analysis: An Introduction to its Methodology. Thousand Oaks: Sage [44] Warden, C. A., Liu, T-C., Huang, C-T. and Lee, C-H (2003). Service failures away from home: benefits in intercultural service encounters, International Journal of Service Industry Management. l 14. 4. 436-457 [45] Hofstede, G. (1997). Culture and Organizations: Software of the Mind. McGraw-Hill. N.Y. [46] Holmes, H. and Tangtongtavy, S. (1997). Working with the Thais: A Guide to Managing Thailand. Bangkok: White Lotus Press. [47] Mayer, J. D. & Salovey, P. (1993). The intelligence of emotional intelligence. Intelligence, 17, 433-442. [48] Sammapan, N. (1996) ‘Japanese multinational management in Thailand: characteristics and transferability’, Thai journal of development administration, 36(2), pp. 79 – 104.

77

B335 SHIFTING MORAL VALUE IN BALINESE ADOLESCENT Indri Oktavia Rospita E-mail: indripsikounud@yahoo.co.id Kinanti Larasati E-mail: kinanti_larasati12@yahoo.com Dewi Puri Astiti S.Fil., M.Si E-mail: Astiti22@yahoo.com Faculty of Medicine, Udayana University, Denpasar, Bali-Indonesia

Abstract Bali is one of Indonesia's biggest tourist destinations, which are visited by local and foreign tourists. In 1999 alone, the tourism sector is estimated to have accounted for 51.6% of the income of the people of Bali (Erawan, 1998). However, from the few previous studies, found a loss from the tourists, especially foreign tourists, which causes changes in the adolescent's perception of the norms and values they held before. These changes can be seen from the behavior of Balinese adolescents, are getting used to the issue of free sex. It was evident from the published data, that there are 1400 cases of unwanted pregnancies consulted to PKBI Bali since September 2008 until June 2010. In fact, in the Balinese, there is the assumption that someone who commits sexual behavior that is not healthy or moral offense causes a result leteh to the environmental and sebel to the culprit. Leteh or sebel symbolically means "dirty". According to I Gusti Ketut Kaler (1982, cited by Laksmiwati 2002), keletehan or kesebelan, one of them is lokika Sanggraha (that is having sex, not with your wife or husband). For the adolescents that violate the customs is sanctioned from the klian banjar, in the form of rumors, exclusion, and some are in procession around the village and in marrying off, depending on the policy klian banjar. It was given to give a deterrent effect to adolescents that violate customary law. From the literature it is expected that the Balinese people, particularly adolescents Bali, knowing that there has been a shift in lifestyle, as well as the moral values they held previously, as a result from the influence of western culture brought by foreign tourists. Keywords: Balinese Adolescent, Foreign Tourist, Change Norms and Values.

Preliminary

Background Bali is one of Indonesia's biggest tourist destinations, which are visited by local and foreign tourists. Local and foreign tourists visiting Bali relentlessly each year, so that we can be sure Bali is never deserted from the name of tourists. In 1999 alone, the tourism sector is estimated to have accounted for 51.6% of the income of the people of Bali (Erawan, 1998). But is it true that local and foreign tourists only give an advantage to the people of Bali? From some previous studies, it was found that some losses are perceived as the impact of tourism on local communities, especially the changes brought by foreign tourists where they bring a new culture that is different from the Balinese culture in general. Dean (1999, cited by Baiquni 2010) state these impacts can generally be classified into the impact of physical, cultural, social and economic. The social impacts caused, referring to the changes in the lives of people who live in tourist destinations area, such as changes in the daily experience of the local population, changing values, way of life, art product as well as their intellectual. Talking about a way of life, the changes are reflected in the attitudes and behavior of the Balinese people, especially adolescent, in which personalities they now have undergone many changes. This change is about their perceptions of the norms and values they held before. Currently, Balinese adolescent already familiar with the problems associated with sex. According to Bandura's theory, which states that the behavior obtained from the modeling process, if we look at the behavior of adolescents now, it appears that they have adapted the dating culture of the West, it appears that they have adapted the dating culture of the West. It can be seen in places that became favorite Balinese 78

adolescent with his partner, as in the Lapangan Renon, Puputan Badung, café, and a bungalow. Laksmiwati (1999, cited by Laksmiwati 2002) state that for adolescents who have regular sex, bungalow is an alternative place to do it, especially for those who are used to do it with a "perek" . According to Sigmund Freud's stage of development, adolescence is the stage of sexual excitement, which adolescents are in the genital phase, and has a sex drive that makes adolescents look for other objects as sexual objects to release sexual tension. Thus, in this phase, sexual desire in adolescents feels so eager, added with a pattern of relationships that are no longer unusual and healthy. It cannot be denied that it could plunge Balinese adolescents into free sex pattern, where it can cause an unwanted pregnancy in adolescents. According to Ramali (1987, cited by Adikusuma 2006), free sex is an intercourse with anyone. In more operational way, free sex is an intercourse without the marriage bond. Indonesian Family Planning Association (PKBI) has released data stating that in a year, there have been 1.2 million abortions, of which 20-30% done by adolescents. Besides that, from September 2008 to June 2010, there were 1400 cases of unwanted pregnancies that were consulted to PKBI Bali. In addition, there were 500 cases of unwanted pregnancy during September 2008 to September 2009, which was recorded by the clinic Kita Sayang Remaja (Kisara) (Nova, 2009). From these data it can be said that most Balinese adolescents have sex without marriage. In fact, in the Balinese, there is the assumption that someone who commits sexual behavior that is not healthy or moral offense, causes leteh to the environmental and sebel to the culprit. In this case, leteh or sebel symbolically means "dirty". According to I Gusti Ketut Kaler (1982, cited by Laksmiwati 2002), keletehan or kesebelan can be generated from 12 kinds of events, one of which is lokika Sanggraha (that is having sex, not with your wife or husband). Geriya (1992, cited by Laksmiwati 2002) state this shows that the openness of the Balinese people become more intensive, with a variety of new cultures being adopted. No wonder, if the Balinese adolescents were dominated by the western lifestyle. There is also a regrettable phenomenon, which was suspected of erosion, even the "annihilation" of the stereotype of the locals, which is generally expressed in the discourse of "the Balinese lost their kebalian", "Balinese people are not innocent anymore", "Balinese lost their character" or considered as a nuisance to the regularity of Bali. In addition to the change in culture and lifestyle changes in Balinese society, there were also shifts in the values that they hold before. Indirectly there is the disappearance of public awareness of the potential socio-Balinese religious in their daily behavior, although it still looked strong in religious activities and customs. Objectives and Benefits Authors aim to make this idea, is to determine whether there is an influence of western culture on lifestyle, values and morals on the people of Bali, especially in Balinese adolescents, caused by the influence of western culture brought by foreign tourists. The benefits to be achieved by the authors, is that the Balinese people, particularly Balinese adolescents, knowing that there has been a shift in lifestyle, values and morals they hold before, as a result of the influence of western culture brought by foreign tourists. Idea See the phenomenon in which free sex becomes a common thing in Balinese adolescent life. This is evident from the data published by the Indonesian Family Planning Association (PKBI) has stating that in a year, there have been 1.2 million abortions, of which 20-30% done by adolescents. Not only that, from September 2008 to June 2010, there were 1400 cases of unwanted pregnancies that were consulted to PKBI Bali. In addition, there were 500 cases of unwanted pregnancy during September 2008 to September 2009, which was recorded by the clinic Kita Sayang Remaja (Kisara) (Nova, 2009). Not only is the phenomenon of free sex, where there is also a shift in moral values they held before. Evident from the disappearance of public awareness of the potential socio-Balinese religious in their daily behavior, although it still looked strong in religious activities and customs. Moreover, despite the traditional Balinese believe that someone who commits sexual behavior that is not healthy or moral offense, may lead to a result leteh or sebel which symbolically means "dirty", but from the data that has been mentioned is seen that already a violation on their customary itself. Solution The solution can be given is to control the activities directed at adolescents to more positive

79

things, one is to increase their participation in activities banjar, as Sekaha Teruna Teruni. Sekaha Teruna Teruni is a collection, container, coral social youth development organization, which grow and develop on the basis of awareness and social responsibility of, by and for the people, especially the younger generation in the village or indigenous communities are equal and mainly engaged in welfare social. Sekaha Teruna Teruni has basic tasks, together with the Government and other community components to cope with issues of social prosperity, especially facing the younger generation, whether it is preventive, rehabilitative and development potential of young people in the neighborhood. Not only depart from reason, the author chose banjar as solutions used to reduce friction free sex and moral values that have become a natural thing in Balinese adolescent life. However, through the banjar anyway we can revive the norms that existed before, to re-activated and given to the youth generation banjar. One of the norms that can be activated and developed on banjo, to later be given to the youth banjar that is parayascita gumi (purification ceremony for themselves and also for the village). Due to the fact that in recent years, cases of violation of decency offenses are often not sanctioned customary, so that people particularly adolescents consider that unhealthy reproductive behavior like premarital sex, cohabitation, pregnancy outside of marriage, abortion as reproductive behavior are normal and common. In addition, such cases are not reported by the customary manners, because they assume the problem is no longer a common problem, which can disrupt the harmony of the traditional village, but regarded as a personal problem. This shows that there has been a shift in community solidarity. In addition, the lack of understanding by adolescents that reproductive behavior is a behavior that violates customary norms, leading to increasing such cases among adolescents. For that reason, it is important for young people of Bali to be active in the banjar activities, so that normative messages will still flow from generation to generation.

References [1]

[2] [3] [4] [5] [6] [7]

[8]

Baiquni, M., ect, Dampak Pariwisata Terhadap Kebudayaan Bali (Menghitung Kerugian Kultural), Pariwisata Berkelanjutan dalam Pusaran Krisisb Global, 2010, Denpasar : Udayana University Press, pp. 188-217 Erawan, I Nyoman, Pariwisata dan pembangunan ekonomi : Bali sebagai kasus, 1994, Denpasar: Upada Sastra, pp. 14 Feist, J and Feist G.J. Theories of Personality 7th edition, 2009,New York : McGraw-Hill, pp. 46, 481 Laksmiwati, Ida Ayu Alit, Transformasi Sosial dan Perilaku Remaja, 2002, pp. 7-9 Adikusuma, I.W Rasmen, etc, Sikap Remaja Terhadap Seks Bebas di Kota Negara: Perspektif Kajian Budaya, 2006, pp. 3 Tobing, D.H., Psylogical Dynamics Causes of Unwanted Pregnancies in Balinese Adolescent, 2012, pp. 249-250 Nova. 2009. Terjadi 500 Kehamilan Tak Diinginkan Dalam Setahun. http://www.tabloidnova.com/Nova/News/Peristiwa/Terjadi-500-Kehamilan-Tak-Diinginkan-Dal am-Setahun . 13 Oktober 2012 Tisnawati, N.M. and Wulanyani, N.M.S., Persepsi Remaja Bali tentang Kehamilan Pranikah., 2006, pp. 101-103

80

B405 Shifting Identity: Changes in Immigrant Sub Cultural Identity as Part of the Process of Assimilation and Accommodation Roger W. Sherman, Ph. D Silberman School of Social Work, City University of New York and Seton Hall University, South Orange, New Jersey E-mail: RSherman20@nyc.rr.com

Abstract Post 1965, the immigrant flow to the United States has increased and equaled the immigrant flow of the previous major periods of immigration: 1840 to 1890 and the classical immigration period of 1890 to early 1930. The post 1965 immigrant population is vastly different in its composition from previous immigrant generations and has brought about a profound demographic transformation in the United States. The presentation will combine doctoral research data, identity theory and experiential activities to provide participants with an understanding of how immigrant sub cultural identity changes with their transition from immigrant to second generation. The presentation will broaden our understanding of the changes or identity shifts that the immigrant experiences as part of the process of assimilation and accommodation and relies upon the explanatory powers of two theoretical lenses, the theory of moral cosmology and the theory of sub-cultural identity to structure our conversations. The presentation will address the complex relationship amongst religious orthodoxy, immigrant generational stage and subcultural identity as a means of value transmission and identity creation.

81

B369 The Place of Polyphonic Music within the Westernization Initiations of Ottoman Empire 19

Ahmet Bülent Alaner, Anadolu University, State Conservatory, Eskisehir, Turkey E-mail: abalaner@anadolu.edu.tr

Abstract The culture of the nations is mostly shaped by the life experiences and way of the life of the people who construct that culture. The music, as a valuable part of the culture reflects every aspects of life such as grieves, happiness and victories, and carries important clues about the historical development of a nation. In this respect, examining the role and growth of music for a nation will yield very valuable input to understand the current state of the nations. Thus, the present study aims to examine the place and role of the polyphonic music within the westernization initiations of Ottoman Empire, which was the last ancestor of the modern Turkish Republic. The findings of the analysis of the documents revealed that the renovation attempts or the westernization initiations of the Ottoman Empire were not solely based on transferring the western culture to Istanbul. Those attempts were mostly renovation and restoration movements for the corrupted systems in social, military and political aspects in the Ottoman Empire. The present study will introduce the westernization initiations of Ottoman Empire through the lens of Culture and Music relationship as well as to present the role of Music in the westernization attempts of an Empire which reflects the culture of the current Turkish Republic.

Introduction The culture of the nations is mostly shaped by the life experiences and way of the life of the people who construct that culture. The music, as a valuable part of the culture reflects every aspects of life such as grieves, happiness and victories, and carries important clues about the historical development of a nation. In this respect, examining the role and growth of music for a nation will yield very valuable input to understand the current state of the nations. Thus, the present study aims to examine the place and role of the polyphonic music within the westernization initiations of Ottoman Empire, which the last ancestors of the modern Turkish Republic. The current research revealed that the renovation attempts or the westernization initiations of the Ottoman Empire were not solely based on transferring the western culture to Istanbul. Those attempts were mostly renovation and restoration movements for the corrupted systems in social, military and political aspects in the Ottoman Empire. The renovation and restoration movements in every aspect of life as well as music had started to be seen by the political reforms made in the Ottoman Empire in 1839. In 1839, Ottoman Sultan Abdülmecid I, proclaimed an Imperial Edict of Reorganization (The Hatt-i Sharif / Tanzimat Fermanı) which promised reforms such as the abolition of tax farming, reform of conscription, and guarantee of rights to all Ottoman citizens regardless of religion or ethnic group. The goal of the decree was to help modernize the empire militarily and socially so that it could compete with the Great Powers of Europe. The present study will introduce the westernization initiations of Ottoman Empire through the lens of Culture and Music relationship as well as to present the role of Music in the westernization attempts of an Empire which reflects the culture of the current Turkish Republic. In line with the Imperial Edict of Reorganization, many great renovations were handled in the Ottoman Empire at that period. As all of the aspects of social life those reorganizations included renovation attempts in Music and its education as well. While the Ottoman (Diwan) Music, the foundations of which were laid by several Turkish philosophers such as Farabi and İbni Sina was 19

Prof. A.Bulent Alaner is the head of the State Conservatory School of Music and Drama, and Musicology Department at Anadolu University, Eskisehir, Turkey

82

progressing in its own way, the influence of western Music started to seen in Istanbul as well as in Anatolia and it was incorporated into the life of Turkish people from a different perspective with a different cultural background. During the 17th century, nonreligious polyphonic music, aside from the church-music, started to spread out in Europe and as a consequence it affected the Ottoman military band -Mehter- as well. Towards the end of the 18th century, as a result of developments in European music education, Mehter also unavoidably started a revolution in its music education. Accordingly, in 1826, Mızıka-i Humayün started to train students on the subjects of European music and Eastern music. The initiatives on the use of polyphonic Music in Ottoman Empire had started by the foundation of “Mızıka-i Humayun” (the Music School of Palace) in 1826 as a consequence of the disbandment of Yeniçeri Ocağı (The Guild of Janissary) as well as ‘Mehterhane’ (Janissary Band) by the Sultan Mahmud II. Prior to Mızıka-i Hümayun, music education was carried by “Enderun” and the official Emperor band “Mehter-Ottoman Bands. Ahead of 17th Century both Enderun and Mehter were dealing with ‘Divan Music’ including compositions of Turkish classical music and its education. The Music School of Palace (Mızıka-i Humayun) was educating its students on two major areas which are Eastern Music and Western Music. Until recent days it was known that the Music School of Palace starts its western music education by Giuseppe Donizetti who came to Istanbul at September 1828. However, the recent documents discovered that the first master of this school was a French originated master, named F.Manuel, who was invited to Istanbul as the chief of the western music education department of the Music School of Palace. Although it seems that many genuine musical products are produced under the directorship of Donizetti, there are also some remarkable Turkish music educators in Mızıka-i Humayün, who are considerably effective in 1827-1828. The period, in which Manuel was the director of the Music School of Palace, was significantly important because the first Turkish students who had European classical music education during this period become important musicians in the Turkish music history. On the other hand, sooner, F. Manuel was seen as not qualified enough to educate the Ottoman musicians on the western music issues and therefore Giuseppe Donizetti, who was the brother of a well-known Italian composer, Gaetano Donizetti, was invited to the Palace and appointed as the major chief of the Music School of Palace in 1828. The first thing that Donizetti handled in the Music School of Palace was to teach the western music notation to the Ottoman Musicians. Because, until that time, the western music notations were not known in the Ottoman Empire, however, another notation system which was developed by Hamparsum Limonciyan, who is an Armenian origin Ottoman citizen, has been using at the school. The second thing that Donizetti was handled in the Music School of Palace was changing the musical instruments that were used in the school and these attempts gave its first fruits after six months by establishing the first Turkish orchestra in the western sense and giving a concert to the Sultan Mahmut II. The documents related to the first period of the Music School of Palace revealed that, the orchestra in the leadership of Donizetti produced several marches, polkas, operas and operettas. However, there is not any scientific finding which shows that the first Palace orchestra has performed any symphonic music. It would be a misjudgment to regard the “Mızıka-i Humayun” (the Music School of Palace) solely as a band in the Ottoman palace. Besides functioning as the band of the palace, this foundation can also be regarded as the first Turkish Conservatory, where Turkish and Western Music education was held. The ground for such a claim is the copy of regulations of the Music School of Palace that is available in the researchers’ personal archive. These regulations, which has the seals of Sultan Mehmed Reşat, Grand Vizier Sait Pasha and War Minister Mahmut Şevket Pasha was published by Suleymaniye Military Printing house in 1912. The copy of regulations, which give us clues about the function of the Music School of Palace, consisted of 18 items that organizes the managerial issues and mechanism of the Music School of Palace. The regulations of this first school of Music in Ottoman Empire revealed that the Music 83

School of Palace consisted of a head, an assistant, 4 section directors (10 members in the 1 st section, 20 in the 2nd section), and 20 students. The Students should be aged between 12 -14 and they must be talented in music, both physically and mentally. They should also have a primary school degree and the secondary school degree was an asset. Moreover, members cannot resign or quit before 3 years of performance at school. The age limit was 60 for teachers and 65 for assistant teachers. In addition to the courses on music, students had to enroll some extra classes such as math, geography, history, language and religion. As it is seen, the Music School of Palace, Palace music school, was an institution which has its own rules and educational requisites.

It is also known that in addition to the Music School of Palace, there were other types of band institutions in the Ottoman Empire. The leading one of them was “Tophane Mızıkası” (The Band of Tophane). The Band of Tophane was established by Marshall Zeki Pasha in 1891. The band of Tophane, which was established as a branch of Tophane Art School and where Zati Bey (ARCA) of Mızıka-i Humayun was worked, had been dissolved in 1909. When the documents related to historical process of the Music School of Palace was examined, it is seen that the branch of Western Music Department of the Music School of Palace becomes Presidential Symphony Orchestra after foundation of Turkish Republic. With the Ottoman political reformation of 1839 (renovation) music had also witnessed a renovation period as well as any other social fields. During the time of Empire, Istanbul became an art-center where Moslems, as well as non-Moslems were interested in and supported on art subjects in various dimensions. People became familiar with European music through operas, concerts that Mızıka-i Hümayun performed, and publications of the school. Another development movement which effects the development of western Music in Ottoman Empire was the Naum Theatre that was established by Michael Naum, a catholic and Syrian origin Ottoman citizen. Michael Naum invited various Italian opera companies to perform operettas in Istanbul in 1844. “Lukres Borjia” of Gaetano Donizetti and “The Barber of Seville” of Beaumarchais were the two of the operas that were performed in Naum’s theatre. The first composer who is known as the first Ottoman Opera composer is Dikran Çuhaciyan, an Armenian origin Ottoman citizen. His first opera which was known as “Olympia” was performed in Naum’s Theatre in 1869 in Istanbul. Later, in 1874, he founded his own Opera company, named Ottoman Opera Company, and performed various operas in Istanbul. His company has an orchestra consisted of 35 musicians and a choir which consisted of 40 performers. He is also important in terms of the development of Ottoman polyphonic music, because he is the composer of the first Turkish Opera “Arif’in Hilesi” (Arif’s Trick). The musical publications also play important role in the development of Polyphonic Music within the Westernization Initiations. The first musical writing in the western sense was Nota Muallimi (Notation Teacher) written by Hacı Emin Efendi who is known as Notatist Emin Efendi in 1876. This book is the first book which consisted of 20 chapters including the definition f the music, the place of music as well as notations of the western works also attempted to teach western music writings to the Ottoman Musician. Therefore, this book was also considered as one of the steps towards the westernization initiation in the development of the polyphonic music in Ottoman Empire. To sum up, the effects of polyphonic music movements of Ottoman Empire to the musical movements of Turkish Republic can be summarized in the three statements in general;  The first seeds of western sense modern music and its education were planted during the late Ottoman period and their flowers were bloomed in the Turkish Republic through following the ideals that Ataturk had formed.  The origin of today’s conservatories, other music education institutions and orchestras roughly goes back to 185 years ago.  It is obvious that although they used simple principles (formulas), there were Turkish composers who used western techniques during the Ottoman Empire period. 84

References [5]

[6]

[7] [8] [9]

Alaner, A., B. "Osmanlı İmparatorluğu Batılılaşma Hareketleri İçerisinde Müzik, Müzik Yayınları-Yayıncıları ve Piyano İçin Yazılmış 14 Eser" Anadolu Üniversitesi Yayınları No: 2195, Atatürk Müzik Araştırmaları Merkezi Yayınları No: 1, ESKİŞEHİR 2011, 04/05/201. Alaner, A., B. “Osmanlı İmparatorluğu’ndan Günümüze Belgelerle Müzik Yayıncılığı (1876-1986) – Music Publications from Otoman Empire up Today”, Anadol Yayıncılık, Ankara, 1986., 1986. Alaner, A., B. “Tarihsel Süreçte Müzik”, Anadolu Üniversitesi Yayınları No: 1179, Eskişehir, 2000. Alaner, A., B. "Polyphonic Music in The Republic Era" The Turks, 5,p.675-680, TURKEY 2002 Alaner, A., B. "İmparatorluk Dönemi'nden Cumhuriyet Türkiyesi'ne Çoksesli Müzik Kurumlarının Öyküsü" , Anadolu Sanat, 23-42, Eskişehir 2002, 01/10/2002

* All of the documents mentioned in this paper are belong to the personal library of the researcher, Prof. A.Bulent ALANER.

85

B464 Academics Ethics of philosophers in Slovakia Vasil Gluchman University of Presov, Institute of Philosophy and Ethics, Presov, Slovakia E-mail: gluchman@unipo.sk

Abstract I would like to focus on philosophical and ethical reflection of the specific area of an academic work in Slovakia. A situation concerning, for example academic reviewing in Slovakia in the present day is, possibly in some instances, even more critical than in the past. This no longer concerns the quality of papers and book of essays but the number of works published; and evaluation of academics is partly dependant on whether they have published in a reviewed or a non-reviewed book, indexed journals, worldly known publishers, etc. The problem in Slovak academic community (especially in humanities and social sciences), however, lies also in the fact that critical reviews are not considered a challenge for discussion or polemics but are shifted to the personal level including settling scores with the critical reviewer. Quoting and referencing is another problematic area in Slovak academic life, which, in the present period, has almost become a fetish, as it is a criterion of qualification enhancement and evaluation of academics. That is why quotations and references are artificially made for colleagues, friends and acquaintances, or even already published works are faked to contain quotes and references for the needs of future qualification enhancement. To summarise, I would like to propose three aims which could become a part of professional ethics of the academics (in Slovakia).

Introduction Tone Dyrdal Solbrekkea and Tomas Englund affirm (in Journal of Higher Education) that insufficient attention is currently paid to issues of professional responsibility and ethics in higher education institutions. They appeal to ‘bring professional responsibility back in’. According to them, moral and societal responsibilities become the driving force for professionals; faculty and students must consciously evaluate the professional ethics of professions. And they conclude that it is a claim that should concern also the academics responsible for educating professionals in higher education, who serve as navigators [12, p. 859]. It is surprising that similar appeal we can find thirty years ago in Journal of Higher Education [3, pp. 282-294] [4, pp. 255-267] [10, pp. 318-334]. According to Elias Baumgarten, university teachers are a very often concerned with issues of professional ethics, for instance medical, legal, and business ethics. However, they pay a little attention to the ethical issues of their own profession, despite the fact that significant moral issues do arise in university teaching [3, p. 282]. In his opinion, ethics in the academic profession has not received adequate attention at that time [3, pp. 293-294]. George M. Schurr also confirms that profession is as good as its ethics. It is high time for academics to get their ethics in order [10, p. 334]. And David D. Dill states that ethical dilemmas in teaching are common to all faculty members and for the reason they can be addressed to all individuals with teaching appointments at colleges or universities [4, p. 267]. Every profession (vocation) has its professional status and almost each of them has also moral and ethical status expressed in the ethical or moral code formulating moral obligations on people working in the given profession. Professional ethics in medicine, health care or business, etc. is generally known. What is the situation, though, with academics? There is no doubt about its specialised status but how about the moral status of academics (including college and university teachers of philosophy)? Hardly anything has been written or said about the professional ethics of a philosopher. I have found no mention of it in either the available bibliography (including the most 86

representative philosophical database Philosopher’s Index) or encyclopaedias on applied and professional ethics. The only contribution to this field that I know of was published by Jiří Kánský considering on the ethics of philosophy as professional ethics [7, pp. 63-69]. Perhaps, the moral qualities and character of philosophers (as well as college and university teachers of philosophy) is part of philosophy and their philosophising. This, however, concerns a part of morality as a whole on its individual or social level. A question arises whether, in the profession of a philosopher and especially a teacher of philosophy, there is something specific and, thus, requires a specific approach to moral obligations foisted upon them, by which the existence of philosopher’s professional ethics or academic ethics of teacher of philosophy could be justified. Jane Pritchard characterises ethical code as a complex of certain expected behaviour and actions of members of a profession which must be kept. It always concerns obligations determining the standards of actions and values accepted and required in the given profession [9, p. 528]. According to Timo Airaksinen, the role of professional ethics is to study professional life and try to understand the essentials of professional values and commitments. Analysis of the position of the profession in question within society, its authority, practice, the rights of clients and the essence of cognition within the profession is also a part of this study. Airaksinen is of the opinion that professional ethics is also important for the public, as it helps to regulate and inspect the profession in question, or it can help to prevent moral problems in it [1, pp. 671-672]. However, moral psychologists found out that ethicists (attendees in ethics sessions of the American Philosophical Association conferences) behave no more courteously at the conferences than do non-ethicists. They appear to talk audibly and to allow doors to slam during formal presentations at roughly the same rate as do others [11, pp. 331–340].

Historical and Theoretical Contexts of Academic Ethics I am not trying to present a ready concept of professional ethics of academics as such. I am, rather, trying to give a philosophical and ethical reflection of some issues in university teaching of philosophy as well as university teachers of philosophy in Slovakia (and other post-communist countries, especially countries of Visegrad group, i.e. Poland, Czech Republic, Hungary, and Slovakia). I would also like to raise a discussion about these issues which appear to be completely out of the centre of attention. I think that we unjustly omit these issues. It is in interest of university teachers of philosophy (however, not just them, but all academics in humanities and social sciences) to determine the criteria of what can be considered right or wrong, acceptable or unacceptable in the profession. It will help them to solve some thorny issues and, on the other hand, to prevent misunderstandings based on different opinions of some phenomena. I realise that, from the viewpoint of solving many current problems of academic community which we deal with, the issue of the non-existence of professional ethics of university teachers of philosophy and whole academics must seem completely marginal or even trivial. On the other hand, in their work there are enough unsolved moral problems that we come across but do not discuss and that is exactly what leaves space for speculations and misunderstandings. That is why I think it is high time to deal with these problems, discuss them and, together, look for solutions to them, possibly by formulating certain criteria for right or wrong, acceptable or unacceptable behaviour and actions in a profession of university teacher of philosophy as well as in whole academic profession in these countries (especially in humanities and social sciences). Mostly than two hundred years ago, the Slovak enlightenment philosopher Ján Feješ (1764 - 1823) responded to the situation of his era and wrote a brief paper entitled "On Reviewers and Reviews" (1809) where he stated that a reviewer must, in the given area, be even better educated than the author himself. According to Feješ, the opinion of a reviewer is not a general public opinion but the personal opinion of an individual whose position is not above the author but under him. Very accurately also for our present time, Feješ wrote that a book is neither as good as the praise of the author’s friends makes it nor as bad as his enemies claim. Let a reviewer try and write a work that includes ideas that have never been written before, a work that everyone would like and that would raise equal interest in all and avoid any criticism. Feješ also asks why a reviewer wants any author to produce something he himself cannot do. He also captured our common era in his claims that a reviewer is often no more than an interpreter of the content and the decision of whether to read the book or not lies with the reader himself. According to him, the task of a reviewer is to bring the readers’ attention to the errors and faults of the work and offer, in its place, something better and more perfect. Feješ, however, is of the opinion that his contemporary reviewers make inappropriate demands on authors which they, however, do not apply to themselves. Therefore, their demands should be in conformity with what they expect 87

from themselves. Judging their own values correctly protects them from being big-headed and daring for knowing everything better than the author. He required the reviewers to be more assiduous and patient when judging the paper in question and asked them not to condemn books without giving reason [5, pp. 70-73]. Unfortunately, the present day does not appear to be much different from the times Feješ wrote about at the beginning of the 19th century. A different example can be found in Honoré de Balzac’s great novel "The Lost Illusions" where he also described journalistic practice of the first half of the 19th century. Part of the novel was based on his own experience with acrimonious critique. Loustau, a character in this novel of Balzac, describes the situation in journalism or art critique to Lucien Chardon, a young literary novice, in the following way: “I have to badmouth the publisher who only releases a few free issues of a daily ... A mean publisher is snubbed even if he published a masterpiece. It is disgraceful, but it is not only me who makes their living like this, but hundreds of others. Do not think that the situation is any better in politics than in literature: everything is corrupted in these two areas, everybody bribes or is bribed. Actresses also pay for favourable articles and the most skilful ones pay their critics...” [2, p. 201]. Lousteau continues: In this trade of a hired murderer of ideas and business, literary or theatrical reputation I earn fifty groats a month... they have started to consider me a dangerous person [2, p. 202]. Lousteau, from this deliberation, concluded that the secret of a literary success is not work but knowing how to use the work of others. Owners of newspapers are building merchants and we are masons. And, hence, the more average a man is, the faster he makes his way up: he is able to swallow every offence, make his peace with everything and flatter base desires of literary bigwigs [2, p. 204]. That is what literary critique was like in the first half of the 19th century in France. Kánský, knowing the situation among philosophers in the region, including university teachers of philosophy, cautioned in relation to reviewing activities, about some serious problems occurring in their philosophising. According to him, listing the reviewers in the colophon of the book does not guarantee its quality. On the other hand, he claimed that what causes problems with publishing critical reviews is the small number of high standard academic journals in these countries, large time intervals and the fact that these philosophers prefer informative reviews of foreign works and omit domestic ones. Kánský thinks that there is still space for discussion within criticism included in reviews, which could also be beneficial to a broader group of interested parties. However, here, it does not work like this; as positive reviews dominate and there are no critical reviews because that is considered un-comradely. He also cautions that colleagues from the same workplace should not review each other’s works and a higher level colleague’s work should not in the least be reviewed by one of a lower level. A review should not be a "thanksgiving" to the author but a real theoretical evaluation [7, pp. 66-67]. Beth A. Fischer and Michael J. Zigmond find it very important that the reviewer be an expert in the given field. Reviewers, in their opinion, should respect well-supported differences of opinion in spite of the fact that they do not agree with them. Their comments must be formulated professionally and must not resort to the level of personal attacks. A reviewer, in his evaluation, must avoid being subjective. In their opinion, it is important to realise that the reviewer is not automatically right when he does not agree with the author’s methods, interpretations or theories [6, pp. 35-36].

Current Situation of Academic Ethics in Slovakia The situation concerning reviewers and reviews in Slovakia and other countries of the region in the present day is, possibly in some instances, even more critical than Feješ or Balzac suggested. In an effort of philosophical work to be “scholarly”, it has been accepted, as a criterion of higher quality of the work, publishing papers in reviewed book of essays. It is questionable whether all such papers published in book of essays which, in their colophon, have a reviewer (or reviewers) fulfil criteria of quality. It was undoubtedly an originally good intention, however, those whose idea it was probably did not expect the reviewers appearing in the colophon without actually having reviewed the book as a whole or its individual papers and listing reviewers can be nothing else but satisfying the formal requirement for a higher evaluation of individual papers and, as a consequence, the whole book. It is often the case that such people are listed as reviewers who, themselves, publish very little and their qualification for reviewing papers in various areas of philosophy is highly questionable. This no longer concerns the quality of papers and anthologies but the number of works published; and evaluation of university teachers (including teachers of philosophy) is partly dependant on whether they have published in a reviewed or a non-reviewed book. I do not think that the decisive criterion of the quality of papers or the whole book of essays should be the fact whether, in the colophon, a reviewer(s) is (are) 88

listed or not. The main responsibility for the quality of individual papers and the whole book of essays should, surely, be taken by its editor, or editors and the guarantee of quality should lie in the editor’s qualifications and his credibility in philosophical community or academic community, which ensures the quality of the book. Those philosophers, academics who have gained credibility based on the results of their work have, surely, no interest in shaming themselves by publishing poor quality papers and book. Similarly, it applies to monographs in philosophy as well as humanities. Of course, a more serious problem could arise when novice authors are concerned who have not yet gained credibility in their community; however, on the other hand, it could be assumed that it is a very often that their first published works are a result of their successful dissertations, which suggests that they have been judged by qualified experts in the given area of philosophy or knowledge. On the other hand, with book of essays as well as monographs, there is still the possibility of critical reviews in academic journals. It should be in the interest of the scholarly philosophical and academic community in these countries that it mainly review works published in its country and works of countrymen in philosophy or other humanities and social sciences, they have to help to differentiate high from poor quality and separate that which has newly arisen in its philosophy (if there is such a piece) from what is merely informative and has already been published before somewhere else in the world and is now only repeated (or even copied). It could, to a much larger extent, guarantee the quality of work in philosophy than just listing the names of reviewers in the colophon, who could have not even held the paper, book of essays or monograph in their hands. There has to be a just requirement placed on critical reviews, as Feješ or Kánský cautioned, and that is that they should not be informative reviews only for the sake of someone getting a reviewed work but truly critical reviews from people qualified in the given area of philosophy and the aim of which should not lie in settling scores or expressing personal preferences but a constructive view of the issue. Feješ’s requirement on reviewers surely also applies to the present day in that reviewers ought not beat the author black and blue but, if the author is wrong or they have a different opinion, they should provide their own viewpoint or solutions. This is the only way to increase the quality of philosophy and philosophising as well as university teaching philosophy. Otherwise, in spite of the growing number of articles and books, what Teodor Münz once wrote about Slovak philosophy claiming that, in its philosophy, reproduction abilities dominate over creativity and originality [8, p. 226] will become true. The problem in the conditions, however, lies in the fact that critical reviews are not considered a challenge for discussion or polemics but are shifted to the personal level including settling scores with the critical reviewer. In these cases, the option of anonymously reviewing grant projects is used in the process of their evaluation and to judge the extent to which they have or have not achieved the set goals. Quoting and referencing is another problematic area, which, in the present period, has almost become a fetish, as it is a criterion of qualification enhancement. That is why quotations and references are artificially made for colleagues, friends and acquaintances, or even already published works are faked to contain quotes and references for the needs of future qualification enhancement. Just look in many books and academic journals to see who quoted who and how many times in one paper. You can find out that, for instance, one 10-page passage from a textbook is quoted 37 times in a different book, etc.

Conclusion The effort to keep the standard of scholar work in humanities in the region should undoubtedly become a part of our professional ethics. To summarise the objectives I considered above, I would like to propose some objectives which could become a part of professional ethics of a philosopher (in Slovakia). One moral objective within professional ethics of a philosopher could then read as follows: An academic does not review qualification theses that are out of his professional field. In the case of reviewing works based on a different professional viewpoint, he does not a priori defend his own position and does not refuse other standpoints. He mainly judges the logic of the analysis and argumentation in the work in question or logic of the author's conclusions drawn from this analysis. Another moral objective of professional ethics of a academics could read:

89

An academic does not loan out his name and professional credibility for the needs of reviewing any scholarly publication if he is not qualified to review it or has not proofread it. The third moral objective might read: An academic, by means of objective and constructive critique in reviews published in academic journals, contributes to the increase in quality of his/her field of academic work. In the introduction to this article, I mentioned that I did not intend to formulate a complete proposition of professional ethics of academics (in Slovakia), but I wished to point out some actual problems and suggest some solutions. I assume that this area is topical enough for a great number of unsolved issues and my viewpoint will open a discussion about issues and problems concerning academic ethics not only in Slovakia. It is supported by the Slovak Research and Development Agency, contract No. APVV-0432-10.

References [1] Airaksinen, T., Professional Ethics, Encyclopedia of Applied Ethics, vol. 3, San Diego, Academic Press, 1998, pp. 671-682. [2] Balzac, H., Lost Illusions, New York, Random House, 2001. [3] Baumgarten, E., The Teaching of Ethics and Moral Values in Teaching: Some Contemporary Confusions, Journal of Higher Education, 1982, pp. 282-294. [4] Dill, D. D., The Structure of the Academic Profession: Toward a Definition of Ethical Issues, Journal of Higher Education, 1982, pp. 255-267. [5] Feješ, J., O recenzentoch a recenziách. H. Urbancová - C. Kraus (eds.): Antológia literárnovedných textov z obdobia národného obrodenia, Bratislava, SPN, 1982, pp. 69-75. [6] Fischer, B. A. & Zigmond, M. J., Scientific Publishing, Encyclopedia of Applied Ethics, vol. 4, San Diego, Academic Press, 1998, pp. 29-38. [7] Kánský, J., Etika filosofie? J. Balážová – K. Kollár – T. Pichler (eds.): Súčasné podoby filozofie a filozofovania na Slovensku, Bratislava, FÚ SAV-Infopress, 1996, pp. 63-69. [8] Münz, T., Prešovská filozofická škola, Prešovské kolégium v slovenských dejinách, Košice, Východoslovenské vydavateľstvo, 1967, pp. 225-240. [9] Pritchard, J., Codes of Ethics. Encyclopedia of Applied Ethics, vol. 1, San Diego, Academic Press, 1998, pp. 527-534. [10] Schurr, G. M., Toward a Code of Ethics for Academics, Journal of Higher Education, 1982, pp. 318-334. [11] Schwitzgebel, E., Rust, J., Ta-Lun Huang,L., Moore, A. T. & Coates, J., Ethicists’ Courtesy at Philosophy Conferences, Philosophical Psychology, 2012, pp. 331–340. [12] Solbrekkea, D. T. & Englund, T., Bringing Professional Responsibility Back in. Studies in Higher Education, 2011, pp. 847–861.

90

B282 READING THROUGH DESIRES, RITUALS, SILENCE, AND PROTEST OF WOMEN IN BHOJPURI FOLK SONGS Dr. Vachaspati Dwivedi Dept. of English, S.V.P.G. College Deoria, U.P.-274001, INDIA Email: vachaspati1969@gmail.com

Abstract Bhojpuri folk songs have often enthralled us by their mixture of melody, meaning and rhythm. Recent uses of Bhojpuri folk songs in Bollywood have made the songs widely famous and their use can be seen in almost every north Indian marriage processions. They stand a class apart in the whole spectrum of folk songs in popularity and their familiarity with Hindi and the associated languages but few studies have been done so far that deconstruct them from the standpoint of women’s identity, desires, protest and suppression(silence). Their suppressed desires, experiences and silent protest against the structure finds vent in folk songs of that area which lie unexplored and unrecorded. Our responses are limited to enjoying their melody, rhythm and dance accompanying it but we have not tried to unravel what goes on between the texts, why is there such a text and why only there is such a text. This paper intends to have a deconstructive reading of Bhojpuri folk songs (both old & contemporary) as a text with a purpose to understand what actually constituted a woman’s life in a gendered society of north India in which woman succumbed to compromise to such an extent that “identities become functions of the ways in which others construct us”. Keywords: Identity, Suppression, Desire, Protest, Patriarchy. My paper originates from two treatises. One is Gayatri Spivak’s famous deliberation “Can the Subaltern Speak?” which stands as a major post-colonial critique on writing of history and the domination of the West. In her essay she has evaluated the authority of the verbal, visual and social texts and has applied a de-constructivist approach to them in order to understand the experience of the marginalized especially women and the working classes. The inability of contemporary criticism and studies to “mediate the historical experiences of the working classes and the underprivileged of society” [1, p.2] is what make her to “attempt to look around the corner, to see herself (ourselves) as others would see her (us)”(Ibid.). She maintains that “in seeing to learn to speak to (rather than listen to or speak for) the historically muted subject of the subaltern women, the postcolonial intellectual systematically unlearns female privilege,” [2, p.82] and “when we come to the concomitant question of the consciousness of the subaltern, the notion of what the work cannot say becomes important” (Ibid.). Another is the feminist ideology of Simone de Beauvoir which maintains that “existence precedes essence” (Existentialism) and hence “one is not born a woman but becomes a woman” [3, p.1]. Beauvoir’s concept of the Other believes woman as “the quintessential Other” (Ibid.) which she identifies as fundamental to woman’s oppression. She writes that “women are not born as women but are made into women by pressures and expectations of the patriarchal world” [4, p.3] and she thinks of Men as the norm and woman as the Other (Ibid) and maintains that women are in bad faith because they lead a contented life in setting themselves in the definitions given be Men who control them. She exemplifies it by the example of child birth and says that most women are distressed and fearful of giving birth to a child and raising it. But because of the social construct made by Men, women give several births to fulfill an obligation of the marriage contract imposed by Men. In her widely acclaimed book The Second Sex (1949) she underlines the dependence of women on Men not only in their social life and family, but in love as well (easily surfaced in folk songs). It is proved pertinently in her account of Monique and Maurice’s story [5, p.69] of one sided love when the husband has stopped loving Monique and she still craves for his touch and sympathy. Beauvoir records it as the dilemma of women in love in The Second Sex [6, p.675]: 91

It is, again, one of the living women’s misfortunes to find that her very love disfigures her, destroys her; she is nothing more than this slave, this servant, this too ready mirror, this too faithful echo. When she becomes aware of this, her distress reduces her worth still further; in tears, demands and scenes she succeeds in losing all, her attractiveness. An existent is what he does; but simply to be, she has to rely on a consciousness not her own and she has given up doing anything. Women’s life has many more similar facets of subjugation in her birth, adolescence, marriage and her status in the family-all bringing her to a secondary position. Her domestication through different rituals is itself a major tool in the hands of social structure which denies her freedom of speech, freedom of movement, freedom education and freedom to earn. In spite of the fact that after Independence things have changed a lot, a vast majority of women in rural areas are still dependent on men and are far from having a voice of their own because of illiteracy. Their suppressed desires, experiences and silent protest against the structure finds vent in folk songs of that area which lie unexplored and unrecorded. The folk songs of Bhojpuri are a case in point because our responses are limited to enjoying their melody, rhythm and dance accompanying it but we have not tried to unravel what goes on between the texts, why is there such a text and why only there is such a text. The paper intends to read the folk songs of Bhojpuri with Spivak and Beauvoir’s critique as a paradigm shift in its base in order to have a balanced view of the position of north Indian women. Many sociological studies of women in Indian society have been done and they have reached consensus on the subjugated status of women due to patriarchy. Until recently there had been little interest in women and their lives. The current shift towards women’s studies and towards viewing folk lore as a process rather than a product has led to evaluating its content and context in the hope of answering the question as to what folklore means to people who sing it. In the words of Jordan & Caro “women’s folk lore has revealed a fresh vantage point from which to look at the world, studies of women’s folk lore have contributed to a greater understanding not just of the world of women, but of the world of men, too, and of interrelationships between the two worlds”. [7, p.518] Margaret Mills writes about the rejection of folk lore as a discourse by hegemonic critics [8, p.174] similar to Philomela Syndrome and writes, “In any case, even Philomela, deprived of her tongue, knew how to use her loom”, [Ibid] meaning that her experience was real, heartfelt and natural. She points out the silence of feminist critics on such an important aspect in their evaluation of folklore studies [Ibid: 176].E. K. Maranda calls women the best “savers and conservators of beliefs, rites, superstitions, rituals and customs” and observes “a strong feminine element in folklore” [9, p.8] which must be perused in the world of changed paradigms. A perfect example of women’s dependence and subjugation is a small piece of folk song in Bhojpuri: Baba sir mor royela senur bin Nayanawa kajarwa binu ho Ram Baba god mor royela balak binu Sejiya Kanhaiya binu ho Ram.

[10, p.84]

(O my father, my forehead cries for Sindur (Vermillion), eyes cry for Kajal, my lap cries for a male child and my bed cries for lack of husband/ lover.) How miserable seems the world of these women who sing it and validate the importance of Kajal, Sindur, a male child and a husband for a woman without which she has no identity of her own and how simply it is narrated in this song. Similar other songs comprise a collection of such simple experiences and truth conveyed in a simple inartistic language of the village folk whose families lived in some area through centuries and performed the traditional rituals. Most of these are anonymous in authorship and it is believed that the tradition developed as naturally as it could and were passed from one generation to another with little alterations. So in a way they exist in a comparatively more pure form than conscious writing of literature and thus they constitute truth of a community’s existence. From the aesthetic point of view they do have truth similar to the primary epics but here I would like to underline 92

their difference with epics because epics have extended use of similes and metaphors as it has to be an extended poem of twelve lone chapters whereas the folk songs do not have that constraint and their language is as natal as found in the language of the illiterates. In this way folk literature become a narrative that has as Charles Taylor puts it “a basic sense of making sense of ourselves” [11, p.195] and as David Carr opines, “they are told (sung) in being lived and lived in being told (sung)” [12, p.125-6]. In addition to these it is worth mentioning that folksongs are created and recreated by many members of society through a long period and were not written by any single individual. In this process these were free from social biases as well. Bhojpuri is a major language spoken in the Northern region of India which constitutes eastern Uttar Pradesh and western Bihar. The culture, rituals and societal structure is nicely unfolded in the folk songs of Bhojpuri that not only express their situation but also their suppressed instinct of protest against the age-old constructs of man-woman relationship prevalent in the region. The stratification of society if also represented in the plurality of folk songs and difference of customs between various classes and castes. There are different songs for different occasions and rituals and there are different genres for different castes as well which are expressive of their wishes, emotions, disappointments and silent protest against patriarchy. A very important form is Sohar which is connected with the rites and rituals of marriage /pregnancy/lying-in-woman/childbirth etc. In these songs the child is commonly addressed as Kanhaiya or Nandlal even though the women do not know the sex of the child whereas the mother is called Yashoda linking them to the childhood days of Lord Krishna: Janamau ai lalna janamau mohi dukhiya ghare, Ho more lalana ujri nagaria basavau hamain juravau Maiya tutahi palangiya valrabu tukari goharibu tukari ho (O Krishna, please take birth in the house of this poor lady to make me happy in this dark world by playing on my broken cot.) The song follows with this argument that Krishna is not interested to take birth in her poor family as the cot on which he is to play is broken. In the wide variety of Sohars, it is strange that there is hardly any Sohar which sings the birth of a girl. In another Sohar a mother is arguing with her husband and other family members about the practice of calling a child after his father and she wants to subvert the tradition because it is she who has borne the entire pain of childbirth. She questions all one by one and ultimately they agree to the fact that the child will be named after father and mother both: Darad hamre uthal, saiyan ke lalla kaise kahaye, Ayo more sasu palanga karhi baitho, Ekar bichar karo saiyan ke lalla kaise kahaye Chahe bahu royo chahe chali jayo Lalla lalla ke kahaye tumhar lalla kaise kahaye Ao mor jethani palanga karhi baitho Ekar bichar karo saiyan ke lalna kaise kahaye (I bore the entire pain of child birth and gave birth to Lalna (son), how it comes that he is to be named after his father? O my mother-in-law, think over it and answer me”. The mother-in-law replies, “Even if you cry or go anywhere, the child will only be named after his father.) The argument follows and the same question is asked to her Jethani (elder brother’s wife) and Nanad (husband’s sister) who repeats the same patriarchal answer to her. Ultimately the question is put to her husband and he agrees to it that the child will have the name of both: Ao meri rani palanga karhi baitho Lalla duno ke kahaiye hamare lalla kaise kahaye. (O my queen, don’t worry. Our child will have the name of both of us.) Here it must be seen that her husband is a very loving and caring person who accepts this change but ultimately it is a compromise she has to accept. Kajali/Kajari songs: These songs pertain to the rainy season and are sung in Sawan (August-September) by women and are very popular even now. These songs open another important vista of women’s experience in north India. Women tie a swing from a branch of tree and sing these songs: Kaise khele jaibu sawan me kajaria Badariya gheri ayi nanadi 93

Tu to jat badu keli Sath sangi na saheli Koi chek lainhen tohri dagaria Badaria gheri ayi nanadi. (O my Nanad, how will you go to play Kajari (a game of swing) as the sky is over casted with clouds and you want to go alone? Somebody will stop your way and tease you.) The song proceeds to other arguments between the Bhabhi (brother’s wife) and her Nanad (husband’s sister) in which she warns her Nanad of possible dangers to women folk. One can easily discern between the lines that it was not advisable for womenfolk to go alone because of eve-teasers on the way-thus she must accompany some male member. In another song there is a very big importance shown to a husband who has not come to his house in a rainy season and his wife is anxiously waiting for him. This kind of dependence and one-sided love is the subject of a variety of Bhojpuri love songs: Soneke thari me jevana parosalo Sakhi ho, Saiyan ghare naa ayelen Saawan barise lagal na Dadur bole, more papihara dari darina Sakhi ho, saiyan ghare naa ayielen. (O my Sakhi (friend), I have decorated myself and I am ready to receive my husband but he hasn’t come yet. It has started raining and my heart is inconsolable with love feelings for him.) In a later song a wife complains to her husband for the tiring work of the household due to which she has become thin and a single moment of happiness has become a dream for her: Jahiya se aine piya tahari mahaliya mein Raat din kaile tahaliya re piyawa Gharke karat kaam sukhalen dehiya ke cham Sukhawa sapanawa ho gayile re piyawa. (Since the day I came to your house, I am sleepless at night and days pass in work. My body has become thin and happiness has become a dream for me.) It is observed that most of the behavioral codes for men and women are enforced through various rituals and fasts that are an integral part of social culture and religion. It is also true that there are lots of fasts and rituals for women whereas only a few for men and women are put in this unbalanced social construct right from their childhood. They assimilate it so deeply that it is very difficult for them to think differently. A suitable example of this is the ritual of Pindiya. Unmarried girls of the village celebrate this festival for the well-being of their brothers and do fasts. Girls put up balls of cow-dung on the wall of a room and worship them with dhoop (sandalwood) and aarti (chant of hymns with lighting lamps) both in morning and evening. Stories regarding the love of mother towards her children and of the sister towards her brother are told through songs. Strange though it seems, but there are no fasts done by a male for his wife or sister. Similar to this are the fasts of Sasthi Vrat, Bahura & Teej that are done for the birth of son and longevity of one’s husband. The given songs tell us about the promise of a deity and the purpose of these fasts: Aason ke katikawa ai tiriya, gharawa chali jahu Agali katikawa ae tiriya, tora beta hoi jayi. (O woman, go to your house in this Kartik (a month in Indian calendar), you will give birth to a son in next Kartik.) Senur lagi bhukhile siva ke siratiya Saiyan lagi no, bhukhile bhagirathiya (O Ganga, I perform this fast for my husband and his longevity by applying Sindur on my forehead.) In the songs that are sung in the praise of female deities one can easily understand the idea that a goddess can understand women’s day-to-day routine and the things she is subjected to and so there are more songs sung in the praise of female deity than males. The songs are about the wishes and hope for a better life or the birth of a son. Sometimes women also pray for many brothers and one sister and sometime for a good husband. Some songs sing for many male members in her family because the presence of many males was linked to more bread earners and so it was related to monetary security of the family. Another common desire is the longevity of a husband because a woman’s life was so dependent on her husband that if the husband died she had almost no place for herself either in her family or community. I. Srivastava rightly remarks about the position of widows that they, “ are expected to lead simple, austere lives, wearing only white or plain clothes; they are not expected to put on any makeup or wear ornaments…they are often ostracized and looked upon as inauspicious and harbingers of widowhood to other women. They are therefore shunned or discreetly avoided at

94

auspicious occasions”. [13, p.273] The following song describes the life of a woman who has no issue (son) and she is addressing river goddess Ganga: Na dukh re mohe sas sasurke, nahi mohe piya pardes Na dukh re mohe maat pita ke, na ma jaye bir Saas bahu kahinaye bolen, nanad bhabhi nakahen Na ho raje we Hari baanjh kahen to chatiya ju fati jayi (I am not sad because of my Saas/ Sasur, neither my husband is in foreign country, nor my father, mother or brother is being killed, Even though my Saas doesn’t speak to me or my Nanad doesn’t call me Bhabhi, I am not affected. But when my husband calls me banjh (infertile), my heart breaks and I feel I am nowhere.) It is a clear assertion that responsibility of fertility rested on women and not on men. It is also interesting that almost all songs express the desire of a male child and the river goddess consoles her by promising the same. This indicates that the birth of a girl child was totally unwelcome and it “was looked as an unfortunate and unpleasant event in the family. A female child after her birth had a cold welcome not only from the male in the family but also from her mother.”[14, p.1] On the birth of a girl child there was almost no expression of happiness and that is the reason that there are no Sohars celebrating it. Most of the Sohars and Panwariya songs are for son’s birth. A folk song describes very well the difference in treatment of the same mother when she gives birth to a male child and later a female and says that her husband (Hari ji) respects her and is devoted to her when a son is born, but when a daughter is born her husband shakes like lotus leaves in a pond. He doesn’t treat her well and gives her hay to sleep and forest stems to eat: Magh hi Poos ke rahariya ta jhapar jhapar kare, Ae lalana oise jhaparelen hamraHariji, babua kej anam nu re, Jaise Kasi ke Sib hawen, nar log pujela, Oise pujelen hamra Hariji, babua ke janam nu re, Sal odhan, sal dasan, mewa phal bhojan re, Lalna chanan ke jarela pasangiya, ninari jhala awela re, Jaise dah me ke purain, dahe beech kanpele re, Ae lalana oise kanpele hamra Hariji, dhiyake janam nu re, Kush odhan kush dasan, ban phal bhojan re Lalna khukhdi kejarela pansangiya, ninariya na aawela re. (When I give birth to a son, my husband becomes very devoted to me as a devotee is devoted to Lord Shiva but when I give birth to a girl, my husband shivers as rahar (a kind of crop) leaves in winter. He doesn’t take care of me and I am unable to sleep and worry a lot.) Early marriages were prevalent and most parents did not allow their daughters to attain more than twelve years or fourteen years of age. The system of dowry played an important part in marriage. People even now cannot think of marriage without a dowry. The situation of the bride’s father is amply depicted in a conversation between girl and her father about his anxieties regarding her marriage in this song: Kawana garhanawa baba sanjhihi lagela Kawana garhanawa bhinusaar Kawana garhanawa baba raura sir lagela Kab jane ugarah hoi Chan garhanawa beti sanjhih lagela Suruj garhanawa bhinusaar Tahare garhanawa beti more sir lagela Kab jane ugarah hoi (O my father, what eclipse happens in evening and what eclipse in morning? What eclipse has engulfed your head and when you will be free from this? And the father replies: The lunar eclipse happens in evening and solar eclipse in morning, the eclipse over my head is caused by the issue of your marriage and I don’t know when I will be free from this.) Another folk song describes similar thoughts arising in the father’s mind about the burden of his daughter’s marriage in a good family and suggests how difficult it was for the parents to marry their daughter in a good family: Kuch jagile, kuch sutile beti Kuch re dahejawa ke soch Inra ta rahitu beti, phenu se khonaito Samunder khonawalo na jayi Putawa ta rahito beti, phenu se biyahito Dhiyawa biyahilon na jayi. 95

(Father says: Nowadays I am half asleep and half awake because of the anxiety of your marriage and thought of dowry. Had there been a well, one could dig it again but the task of your marriage is as difficult as digging a sea. If you were a son, I could arrange your marriage again but you are a daughter and it is impossible to marry a daughter again.) It clearly suggests that if a girl was married to a bad husband or in a poor family or if there is any mismatch, there was no return for the girl to be married again. At the same time boys could be married again without any consideration of his earlier marriage. The position of widows was very pitiable. There was no provision of widow remarriage except in the lower classes. The folk songs celebrating a married life and expressing women’s fear to become widow alludes to the important position of husbands. Even if they died, due to her upbringing and negation of widow remarriage, they disliked the very idea of remarriage and preferred to maintain their fidelity. This seems to be in line with the story of The Ramayana, the ancient epic where there is a description of Sita’s chastity and Ram’s privilege of choice but nobody questions this injustice even though Ram is Maryada Purshottam (Emblem of Morality). A folk song describes several tests of chastity for Sita but none for Ram and thus in a way validates Ram’s privilege of choice: Chaudah baris par ayilen raja Ramchandra, Sita bicharwa ham leb re Jab re Sitadei agini hath lihali, agini bhayil juda paani re E kiriyawa Sita ham na patiyayib, adit bicharwa ham leb re Jab re Sitadei adit hathe lihali, adit chapit hoi jayi re Eho kiriyawa Sita ham napatiyaib, sarap bicharwa ham leb re Jab re Sitadei sarap hathe lihale, sarap baithe feta mari re. (Lord Ramchandra came to Sita after 14 years and proposed several tests to validate Sita’s chastity. The first was a test by fire. When Sita took fire in her hands, it became cold water. Later Sita was subjected to other tests (Adit and snake) but none of them caused any danger to Sita.) The song later voices the protest of Sita by saying that she doesn’t want to see Ram’s face owing to such type of partial treatment: Ayisan Purukhawa ke muhan nahi dekhab, jinni Ram delen banvaas re Fati jayiti dharati aloop hoyi jayitin, ab na dakhab samsara re. (I don’t want to see the face of such man who has given me a life of forest. I wish mother Earth should crack and I would enter her lap as I have no wish to see this world.) No doubt the folk song gives birth to a counter tradition in Bhojpuri which demands our disapproval of Ram’s conduct. Linda Hess in her essay on Ram’s cruel treatment of Sita states the presence of many subverting traditions in women’s folk, low-caste and dissenting literary cultures [15, p.17]. Madhu Kishwar views these folk songs as presenting a far more positive images of women than the literary classics and writes that “though women have been excluded from the tradition of written literature…they have always been chief though anonymous participants in a very rich oral tradition, expressing their experience and point-of-view through songs and stories”[16, p.22].Due to the fact that marriages were fixed by parents and that also at an earlier age and that also at an early stage, many marriages proved unsuccessful and unhappy. The unmatched marriages received great support. Divorce was completely unknown among the high caste Hindus and no folk song sings it. Functions and rejoicings were done at the occasion of a son’s birth only. Similar are the description in various wedding songs in which daughter were seen as a source of misery. In this song a mother remembers how her miseries began from the very first day when her daughter came to her womb: Jahi dina beti ho tohar garabha rahile peduri mora ghaharai e Mansa macharia beti manahi na bahvela peduri mora ghahrai e Jina dinabeti ho tohara janama bhaile bhadauvake rata e Sasu nanad ghare diyano na bareli mose swami rahelen risiai e Jahi dina beti ho toharo biyaha hoiho baba ke hiradiya judae e… Bhaile biyah parela sira senurnava lakh mange daheja e gharake re bhanda angina dei patkavi sataru ke dhiya jani hoi e jahu ham janatin ki dhiya kokhi janamiheiniyatin ham maricha jarara e marichake jharejhure dhiya mari jaiti jahat garah santapa e. (The day when you came in my womb I felt tired and sick. My nights became more dark and when you were born, my in-laws didn’t help me. My husband was disappointed. I consoled myself then but when the time of your marriage came and when the bridegroom’s family asked for nine lakh rupees, I sold all the utensils I had. I wished that even my enemy would not have a daughter. If I had known that I had a daughter in my womb, I would have drunk a concoction to avoid pregnancy, and I had saved me and my family from such misery.)

96

There was fear in women about their being infertile and rejection of their family as well. The responsibility of producing children rested on women only and males were never taken responsible of their sterility. A folk song describes the scuffles between the Saas and Bahu owing to sterility and how the whole community takes that woman as a bad omen if she comes on their way in morning or when they are going somewhere: Sasu kaheli banjhiniya nanad brajwasin ho Lalan jinka me baribiyahi, uho ghar nikalelen ho ………………………………………… Ai chodhu chodhu ai banjhini, chodhu re duari Ai kawane awgunawen re banjhini, chekelu duari Ai saas more hudukawe ai dinanath, nanandiya pare gari Ai sange lagal purukhawa ai dinanath, dande se mari. (My Saas calls me infertile and Nanad calls me a spinster and the person to whom I am married to drives me out of the house. The neighbors thwart me to leave their door. My Saas chides me and Nanad calls me bad names.My husband hits me with a stick.) It strengthens the belief that women were not regarded as able enough to bring something good in the family because of subjugation, illiteracy and submissiveness: Tiriyake janame kawan fal, he more sahib? Putawa janam jab hoihen, tabe fal hoi. (What is the benefit of a daughter’s birth, O my lord? Benefit lies only in the birth of a son.) Female education was not considered important at all. There are many songs in which the wife refers to her illiteracy and inability to read or write a letter. Purdah was observes and due to the strictness of its practice, women were depraved from education. The folk songs expressing their anxiety towards producing male children and not female tells much about their limited mindset which did not permit them to think beyond pleasing their husbands, producing children and rearing them. Songs of Protest: Many of the folk songs underline women’s protest but they are not overt and are sugared to spare them from the anger of male members. The Jalua or Domkach songs are expressive of it and they were sung when there were no males around and women keep an all-night vigil to guard the house. They perform many play-acts in which they dress as policemen, Kotwal or even as the male members of their family It also contains abuses to their husbands and other elders of their family. They sing, dance and express their emotions openly. They poke fun at their husbands and other relatives. Here is a particular example of a Jalua song in which a woman laughs at her husband because he is attracted towards the beauty of housemaids: Balama surate pe are are mori jan, So mori jan meherina manja rahe bartanwa Balama manjavawe lage mori jan So mori jaan etne me aa gayo mehera Balma sarminda bhaye mori jaan So mori jan mehera ne de dilas dhakka Balma naliye me gir gaile jan (My husband is easily attracted towards beautiful face. Once the housemaid was cleaning utensils and he was wooingly looking at her. In the meanwhile came her husband and he saw it. Being angry, he pushed my husband in a drain and it caused much shame to him.) In another song a woman tells about her married life and how she does not let herself overpowered by her husband. She gets ample praise from other ladies for this. Ina different song a woman blushingly tells others about her first meeting with her husband. Similar other songs convey ample protest of women when they were not in the pressure of patriarchy. Another song describes the story of a young woman who is married to an old man and is suffering because of this: Mati hui gai mora jawaniya piya puraniya payo na, Athara barisa ki hamri umaria burhau sange kar lihe laganiya, Byahe me jab bhanvar ghume hamke laike kanhaiyan, Bar paki gai danta tapak gai, akhiya se bahai paniya Thare thare burhau kanpain manau dhare nimonia (My youth has gone waste as I am married to an old man. I am eighteen years old. When I married him and was performing marriage rites, I sat on his shoulders. His hairs are grey, he is toothless and his eyes give out watery substance. He shivers like a pneumonia patient.) This can apply to the fact that when patriarchal structure was not over them, they led their own life with some freedom and express their thoughts (even of sexuality) covertly in the dramatic songs of Jalua/ Domkach. On the other side it led the patriarchal structure to believe that when women are given freedom, they bring bad name to the family. Many of these folk songs have gone deterioration in 97

modern age and now express an overt expression of female sexuality in the form of popular folk in rural areas. Jantsaar songs: These songs are sung by women folk in countryside while grinding maize or pulses on the stone made grinder which rotates around a central pivot. Grains are put in holes made over the upper grinder and the upper wheel is rotated slowly for the powder to come out. Two women sit on the ground opposite to each other and sing songs expressive of their feelings related to their miseries, fatigue and sorrow. The recurrent theme of Jantsaar songs is the oppression and anguish they suffer at the hands of their mothers- in-law (Saas). In one of the songs a women advises her brother not to tell their mother her miserable condition: Jevana baithe hain sara bahanioya, sarava ke chuvai ansuiya ho rama, ............................................................................................................. Nahin mori bahini tiriya sudhi ai, nahin samadhyaun maiya kai kaleuva ho rama, Sonava ta jarai bahini sona dukaniya, bahini jarain sasurariya ho rama, I dukha jinni kahya baba ke agvan, u sabhavan baithe pachatai ho rama, I dukha jinni kahiya maiya ke agavan, vai chatiya piti marijayi ho rama. (When my brother sat with my husband in my house, his eyes were full of tears. I asked him the cause. He replied that it neither was nor due to some thought of his wife nor for his mother. It was because of me and my situation. As gold is burnt at a goldsmith’s shop, his sister is being burnt in such tormenting situation. I told him not to tell father and mother about this as it would worry them a lot.)

Conclusion These folk songs provide more than enough insights about the position of women in the northern part of India. One can easily discern why such texts emerged, what was the context that gave birth to such text and what were the frustrations of women folk that found vent through these folk songs of Bhojpuri. Added to this, it also throws ample light of their unfulfilled wishes, desires and predicaments of their life which made them submissive, acquiescent and silent. Even if there is some protest, it is expressive only through the guise of a complaint (covertly) so that it pleases the male ego or overtly when no male members are around as in Jalua or Domkach songs and acts. The name given to these performances-Domkach (related to Doms, a low caste Hindu)- is itself expressive of the fact that it had no approval from patriarchy as such but men knew of it and laughed at women. Even The Ramcharitmanas approved the fact that women, illiterate people, animals and Shudras (low caste people) are worthy of beating and it molded the psyche of men and women that it is universal truth and it cannot be argued. On the other hand there was wide respect for those women who upheld the values of their family or community. Thus all the religious female deities became models of meekness, chastity and unending silence against the Male gods. Women were hurt because of the social system but they had no say of their own because patriarchy functioned through women, i.e. a Saas or a grandmother. They were superstitious and god fearing and their belief got approval through the various goddess rituals performed in the family from time to time. These rituals had religious teaching in them and as the women were illiterate, they took the stories of gods and goddesses as behavioral codes which approved lots of fasts for the women folk and a few for men and in doing so maintained the hierarchic structure. Birth of a son or daughter was fixed on god’s approval and due to illiteracy they could not argue or question the beliefs but had to accept what the elders said. The folk songs related to prayers and fasts tell prove how women’s subjugation perpetrated through them.

References [1] Mani, Venkat. Presidential lectures: Gayatri Spivak. http://prelectur.stanford.edu.lecturers/Spivak. Accessed 1/3/2011. [2] Spivak, Gayatri. “Can the Subaltern Speak?”Patrick Williams and Laura Chrisman ed. Colonial Discourse and Postcolonial Theory: A Reader. New York: Columbia University Press.1994. Pp. 66111. [3] Internet Encyclopedia of Philosophy. http://www.iep.utmedu/beauvoir. Accessed 5/10/2011. [4] Kelly, Oliver Ed. French Feminism Reader. ‘Introduction’. Oxford: Rowman & Littlefield Pub. 2000. [5] Moi, Toril. Feminist Theory and Simone de Beauvoir. Oxford: Basil Blackwell.1990. [6] Beauvoir, Simone de. The Second Sex. Trans. & ed. M.H.Parsley, Harmondsworth: Penguin.1953. 98

[7] Jordan R. A & F.A. de Caro. Women and the study of folk lore”.Signs, Vol.11, No.3.( Spring, 1986), Pp.500-518. University of Chicago Press. http:// www.jstor.org, Accessed: 09/10/2011. [8] Mills, Margaret. Burning with shame:desire and south asian patriarchy, from Gayatri Spivak’s“can the subaltern speak?” to Deepa Mehta’s “Fire”. Comparative Literature, Vol. 54, No. 4(Autumn 2002) pp. 307-324. [9] Maranda,E .K., The carriers of folk lore and the carriers in folk lore,” Folklore Women’s Communication. 27/28. 1982: 7-8. [10] Mishra, Sridhar. Bhojpuri Lok Geeton Ke Vividh Roop. Allahabad: Prakash Printing Press,1961. [11] Strawson, Galen, Against narrativity, Real Materialism and Other Essays, Oxford: OUP.2008, 180-227. [12] Carr, David. Time, Narrative & History, Bloomington: Indiana Univ. Press.1986. [13] Srivastava, I. Women as portrayed in women’s folk songs of north India”, Asian Folklore Studies, Vol.50, No.2 (1991), pp.269-310. URL: http://www.jstor.org/stable/1178387, Accessed: 04/10/2011 04:01 [14] Mukherjee, Ila. Social Status of North Indian Women. Agra: S. Lal Agarwal & Company Pub. 1972. [15] Hess, Linda. Rejecting Sita: Indian Responses to the ideal man’s cruel treatment of his ideal wife, Journal of the American Academy of Religion. Vol.67, No. 1 (Mar., 1999) pp.1-32. OUP. URL: http://www.jstor.org/stable/1466031. Accessed: 03/10/2011. [16] Manushi., “The Sita who refused the ordeal”.Vol.8. pp. 22-23. 1981 Note: All translation of Bhojpuri folk songs are mine.

99

Economics Pullman Bangkok King Power, DELTA 2013/1/26 Saturday 10:30-12:00 Session Chair: Prof. Yihong Yu

B117 Flexible Fourier Stationary Test of Unemployment for PIIGS Countries Cheng Shu-Ching︱Feng Chia University B240 Industrial Policy for Photovoltaic Industry in China Lihong Yu︱East China University of Science and Technology Yihong Yu︱Fudan University B244 The Strategic Implications of China-Nigeria Economic Relations Okolo Abutu Lawrence︱Xiamen University B281 Exchange Market Pressure: Empirical Evidence from Malaysia and Singapore Evan Lau︱Universiti Malaysia Sarawak Jenny Yong︱Universiti Malaysia Sarawak Venus Khim-Sen Liew︱Universiti Malaysia Sarawak B447 Analyzing the Spillover effect of Housing Prices Kyongwook. Choi︱University of Seoul Namwon. Hyung︱University of Seoul Hyungchol. Jeon︱University of Seoul Jegook. Kim︱University of Seoul

100

B117 Flexible Fourier Stationary Test of Unemployment for PIIGS Countries Shu-Ching Cheng Feng Chia University, Department of Economics, Taichung, TAIWAN E-mail:p9943338@fcu.edu.

Abstract In this empirical study, we apply the flexible Fourier unit root test proposed by Enders and Lee [12] to re-examine the hysteresis hypothesis of unemployment for PIIGS countries from 1960 to 2011.We find that the Fourier stationary unit root test has greater power than a linear method if the true data generating process of unemployment is a stationary, non-liner process of an unknown form with structural change. The hysteresis in unemployment is confirmed for all PIIGS countries, with the exception of Portugal and Spain, when the Fourier unit root test is conducted. Keywords: Hysteresis in unemployment; PIIGS countries; Stationary test; Fourier function

1. Introduction Since the European debt crisis hit during 2010, the issue of unemployment has clearly become one of the most pressing challenges for European countries. In the case of Spain, the unemployment rate on December 2011 had reached 20.9%, a level not seen in the past years. Greece and Portugal’s unemployment rates on December 2011 spiked to 16.6% and12.6%, respectively, a level not seen in more than five decades. The dominant characteristic of unemployment is its high persistence. The causes of this higher persistence in unemployment have attracted a lot of both theoretical and empirical research. This study is devoted to investigating whether the hypothesis of hysteresis in unemployment holds true for those countries with high unemployment rates. What follows in this study is critical not only for empirical researchers, but also for policymakers. The important point to note is considering the assumptions inherent in the hysteresis hypothesis of unemployment. If unemployment is the I(1) process, then the shocks affecting the series will have permanent effects, thus shifting the unemployment equilibrium from one level to another. As Dixon and Shepherd [9] point out, one may say that while it may be true that the unemployment series are stationary in the probability limit, (here) one is dealing not only with a finite realization of the process, but also a sample period that is very short. In these circumstances, it is quite possible that the series may wander significantly within the interval, exhibiting characteristics that are, for all practical purposes, indistinguishable from an unrestricted random walk (see Smyth, [32] and Nelson and Plosser [23]). Thus, the extant literature is followed and the issue of boundness is ignored in the present study. Should this be the case, we may say that from the policy perspective, policy action is, indeed, required to return unemployment to its original level. On the other hand, it should be emphasized that if unemployment is the I(0) series process, the effects of the shock will merely be transitory, making the need for policy action less mandatory since unemployment will eventually return to a level of equilibrium. The I(0) series process has commonly been referred to as the natural-rate of unemployment hypothesis (NAIRU), for it characterizes unemployment dynamics as a mean reversion series process. As hysteresis is associated with non-stationary unemployment rates, unit root tests have widely been used to investigate its validity. Using 1853–1984 data for France, Germany, the United Kingdom, and the United States, Blanchard and Summers [5] laid the groundwork by employing conventional unit root tests to study the effects of hysteresis on unemployment. They were unable to reject the non-stationary unemployment rates, except for in the United States, where they found evidence of stationary. In keeping with their results, Brunello [6], using 1955–1987 Japanese unemployment data, was also unable to reject the null hypothesis of a unit root. Mitchell [22] later adopted Perron's [28] unit root test, which assumes an exogenously given structural break, and this similarly provided support for hysteresis in several Organizations for Economic Cooperation and Development (OECD) countries. 101

Likewise, Jaeger and Parkinson [16] reported that unemployment hysteresis exists in Germany, the United Kingdom and Canada, but not in the United States. Using 1970–1994 data, Roed [30] observed unemployment hysteresis in 16 OECD countries and its strong likelihood in Australia, Canada, Japan, and several European countries, but rejected it in the United States. While there is general agreement that unemployment hysteresis has a unit root in unemployment, critics have claimed that the drawing of such conclusions may be attributed to the lower power of the conventional unit root tests employed. Most agree that conventional unit root tests such as the Augmented Dickey-Fuller (ADF) and Philips-Perron (PP) tests fail to incorporate the structural breaks in the model and have low power in detecting the mean reversion of unemployment rates. Perron [28] argued that if there is a structural break, the power to reject a unit root decreases when the stationary alternative is true and the structural break is ignored. Meanwhile, structural changes that are present in the data generating process, but have been neglected, sway the analysis toward accepting the null hypothesis of a unit root. The general method to account for breaks is to approximate those using dummy variables. However, this approach has several undesirable consequences. For one thing, the exact number and location of the breaks must be known, and as these are usually unknown, they need to be estimated. These are not usually known and therefore need to be estimated. This in turn introduces an undesirable pre-selection bias (see Maddala and Kim, [21]). What is more, current available tests account only for one to two breaks. Finally, the use of dummies suggests sharp and sudden changes in the trend or level. However, for low frequency data, it is more likely that structural changes take the form of large swings which cannot be captured well using only dummies. Breaks should therefore be approximated as smooth and gradual processes (see Leybourne et al., [19]). These arguments motivate the use of a recently developed set of unit root and stationary tests that avoid these problems. Both Becker et al. ([2], and [3]) and Enders and Lee ([11], and [12]) develop tests which model any structural break of an unknown form as a smooth process via means of Flexible Fourier transforms. Many scholars, ( Gallant [13], Ghosh and Dutt [14], Gustavsson and Osterholm [15], Becker et al. [2], Enders and Lee ([10], [11], and [12]), Ludlow and ender[20], Pascalau [27] and Rodrigues and Taylor [29]), show that a Fourier approximation can often capture the behavior of an unknown function even if the function itself is not periodic. The authors argue that their testing framework requires only the specification of the proper frequency in the estimating equations. By reducing the number of estimated parameters, they ensure the tests have good size and power irrespective of the time or shape of the break. Additionally, the existence of structure changes in unemployment might imply broken deterministic time trends, and the result is a nonlinear pattern (Bierens, [4]). It should therefore not be unexpected that these shortcomings have seriously called into question many of the earlier findings based on a unit root in unemployment rates. This empirical study contributes to this line of research by determining whether hysteresis in unemployment holds in a sample from Portugal, Ireland, Italy, Greece, and Spain (PIIGS). We test for stationary unemployment rates for PIIGS countries using the stationary test with a Fourier function proposed by Becker et al. [3]20; to the best of our knowledge, we are the first, to date, to do so. In this manner, the current research aims at filling the existing gap in literature. We find that the stationary test with a Fourier function does not reject the unit root process in unemployment rate. Traditional unit root tests such as the ADF, PP, and KPSS also do not lead to rejection. The remainder of this empirical study is organized as follows. Section 2 presents the data used, Section 3 describes the methodology, the empirical findings, and policy implications. Finally, Section 4 presents some concluding remarks.

2. Data This empirical research employs the annual unemployment rates for PIIGS countries over the period 1960–2011 (51 annual observations for each country). The PIIGS countries used in this study are: 20

Here, we use a KPSS-type stationary test since tests with the null of a unit root have low power with stationary and persistent data. Stationary tests are also useful since they can be used to confirm results from unit-root tests with a stationary alternative.

102

Portugal, Ireland, Italy, Greece, and Spain. The annual unemployment data set are obtained from the AMECO online database and summary statistics are given in Table 1. The unemployment data indicates that Spain and Portugal have the highest and lowest average unemployment rates, respectively. The Jarque–Bera test results, meanwhile, indicate that most of the unemployment data sets are approximately normal. Table 1. Summary Statistics of Unemployment Rates for PIIGS countries Portugal

Ireland

Italy

Greece

Spain

Mean

5.787

9.083

7.504

6.750

10.250

Median

5.750

7.650

7.550

6.700

11.100

Maximum

12.600

16.800

11.300

16.600

20.900

Minimum

1.700

3.900

3.700

1.700

1.500

Std. Dev.

2.789

4.334

2.092

3.314

6.187

Skewness

0.270

0.486

0.164

0.388

-0.005

Kurtosis

2.326

1.682

2.055

2.969

1.588

Jarque-Bera

1.615

5.815

2.168

1.305

4.318

Probability

0.007

0.000

0.047

0.000

0.000

3. Econometric Methodology 3.1 Enders and Lee (2012) stationary test with a Fourier Function Enders and Lee [12] implement a variant of the Flexible Fourier transform (i.e., Gallant [13]) to control for the unknown nature of the breaks. One advantage of this Fourier function is that it is able to capture the essential characteristics of one or more structural breaks by using only a small number of low frequency components. This is true because a break tends to shift the spectral density function towards a frequency of zero. This test works best in the presence of breaks that are gradual and has the ability to detect u-shaped and smooth breaks. Enders and Lee [12] develop their unit root test using the Lagrange Multiplier (LM) principle. As indicated by Pascalau [27] the LM has increased power over the Dickey-Fuller (DF) approach. Following Enders and Lee (2012), we consider the following data generating process (DGP): (1) yt  0  t   1 sin(2kt / T )   2 cos( 2kt / T )   t

 t   t 1  ut

(2)

Where k represents the frequency selected for the approximation, and  =  1 ,  2  measures the amplitude and displacement of the frequency component. The rational for selecting [ sin(2kt / T ) , cos( 2kt / T ) ] is based on the fact that a Fourier expression is capable of approximating absolutely integrable functions to any desired degree of accuracy. A desirable feature of Equation (1) is that the standard linear specification emerges as a special case by setting γ1=γ2=0.21 It also follows that at least one frequency component must be present if there is a structural break. Here, if it is possible to reject the null hypothesis γ1=γ2=0, the series must have a nonlinear component. Enders and Lee [12] use this property of Equation (1) to develop a test that can have more power to detect breaks of an unknown form than the standard Bai and Perron [1] test. Under the null hypothesis of a unit root   1 , the alternative hypothesis is   1 . Enders and Lee [12] employ the LM methodology of Schmidt and Phillips [31] by imposing the null restriction and estimating the following regression in first differences:

21

Here, we employed F (kˆ) to test the null hypothesis of γ1=γ2=0. The significant F (kˆ) statistic indicates that

both sine and cosine terms should be included in the estimated model.

103

yt   0  1 sin(2kt / T )   2 cos( 2kt / T )  vt

(3)

~ ~ ~ The estimated coefficients  0 , 1 , and  2 are then used to construct the following de-trended series: ~ ~ ~ ~ (4) St  yt ~   0t  1 sin(2kt / T )   2 cos( 2kt / T ), t  2...,T ~ ~ ~ Where ~  y1   0t  1 sin(2kt / T )   2 cos( 2kt / T ) and y1 is the first observation of yt . The testing regression based on the de-trended series has the following expression: yt   0  1 sin(2kt / T )   2  cos( 2kt / T )  vt

(5)

yt has a unit root, then   0 and the LM test statistic (denoted  LM ) is the t-test for the null hypothesis of   0 . The innovation process  t is assumed to satisfy Phillips and Perron (1998)’s serial If

~ correlation and heterogeneity conditions. Equation (5) can be augmented with lag values of, St  j ,

j  1,2,...p, to get rid of the remaining serial correlation (see also Ng and Perron, [26]). Enders and Lee [12] derive the properties of the asymptotic distribution of the  LM statistic and demonstrate that it depends only on the frequency k and is invariant to all other parameters in the DGP. They also suggest that the frequencies in Equation (5) should be obtained via the minimization of the sum of squared residuals. However, their Monte Carlo experiments suggest that no more than one or two frequencies should be used because of the loss of power associated with a larger number of frequencies.

4. Empirical Results 4.1 Empirical Results For comparison, we first apply several conventional unit root tests to examine the null of a unit root in the unemployment rate of each country. We select the lag order of the test on the basis of the recursive t-statistic, as suggested by Perron [28]. The results in Tables 2 and 3 clearly indicate that both the ADF and the PP tests fail to reject the null of non-stationary unemployment for all PIIGS countries. However, the results for first difference indicate a strong rejection of the null hypothesis for all the PIIGS countries with the exception of Greece. These results exhibit the unemployment rates for the PIIGS countries are non-stationary. Moreover, the KPSS, [17], test yields some mixed results. We found that Ireland fails to reject the null of stationary unemployment when the KPSS without a trend term is used in the testing model, and Portugal also fails to reject the null of stationary unemployment when the KPSS with a trend term is used. In other words, hysteresis in unemployment is confirmed for most of the PIIGS countries. As stated earlier, there is a growing consensus that conventional unit root tests, such as the ADF and PP tests, fails to incorporate the structural breaks in the model and have a limited ability to detect the mean reversion of unemployment rates. Table 2. Unit Root tests without trend Levels Country

ADF

PP

Portugal

-1.243(1)

-0.769(2)

Ireland

-2.132(1)

Italy

First Difference KPSS

ADF

PP

KPSS

0.627[5]**

-4.097(0)***

-4.177(2)***

0.110[2]

-1.478(3)

0.210[5]

-3.636(0)***

-3.619(3)

0.110[3]

-1.835(1)

-1.175(0)

0.622[5]**

-4.467(0)***

-4.193(8)***

0.200[0]

Greece

-0.286(1)

0.141(2)

0.777[5]***

-1.235(0)

-1.235(0)

0.263[2]

Spain

-1.616(1)

-1.077(3)

0.655[5]**

-3.794(0)***

-3.789(3)***

0.080[3]

Notes: The number in parenthesis indicates the lag order selected based on the recursive t-statistic, as suggested by Perron [28]. The number in the brackets indicates the truncation for the Bartlett Kernel, as suggested by Newey and West [24], and [25]. *, ** and *** denotes the significance levels at 10%, 5% and 1%, respectively. 104

Table 3. Unit Root tests with trend Levels PP

First Difference

Country

ADF

KPSS

ADF

PP

KPSS

Portugal

-2.469(1)

-1.737(2)

0.099[5]

-4.109(0)**

-4.137(3)**

0.092[2]

Ireland

-2.166(1)

-1.554(3)

0.162[5]**

-3.600(0)***

-3.582(3)**

0.117[3]

Italy

-1.851(1)

-1.038(0)

0.173[5]**

-4.485(0)***

-4.086(10)**

0.097[1]

Greece

-2.612(1)

-1.730(2)

0.134[5]*

-1.566(0)

-1.566(0)

0.062[2]

Spain

-2.532(1)

-1.838(3)

0.154[5]**

-3.760(0)**

-3.753(3)**

0.085[3]

Notes: The number in parenthesis indicates the lag order selected based on the recursive t-statistic, as suggested by Perron [28]. The number in the brackets indicates the truncation for the Bartlett Kernel, as suggested by the Newey and West [24], and [25]. *, ** and *** denotes the significance levels at 10%, 5% and 1%, respectively. Perron [28] argued that if there is a structural break, the power to reject a unit root decreases when the stationary alternative is true and the structural break is ignored. Meanwhile, structural changes present in the data generating process, but those have been neglected, sway the analysis toward accepting the null hypothesis of a unit root. Therefore, we proceed to test the unemployment rates by using the unit root test with a Fourier function, proposed by Enders and Lee [12]. First, a grid-search is performed to find the best frequency, as there is no a priori knowledge concerning the shape of the breaks in the data. We estimate Equation (5) for each integer k=1,...5, following the recommendation of Enders and Lee [12] that a single frequency can capture a wide variety of breaks. The second column in Table 4 displays the residual sum of squares (RSSs) and indicates that a single frequency works best for most of the series, with the exception of Portugal and Ireland, where we find frequencies of 2 and 12, respectively. The significant F (kˆ) statistic showed in the fourth column of Table 3 also indicates that both sine and cosine terms should be included in the estimated model. We using a 10% significance level and select the lag order of the test on the basis of the recursive t-statistic, as suggested by Perron [28].The fifth column in Table 4 shows the number of lags of St needed to remove the serial correlation in residuals. The last column in Table 4 reports the results of the unit root test with a nonlinear Fourier function based on the estimated frequencies. We are not able to reject the unit root null hypothesis for all PIIGS countries at the 5% significance level, with the exception of for Portugal and Spain. Taken together, our results provide strong support for hysteresis in

Table 4. Unit Root test with a nonlinear Fourier function

F (kˆ)

The number of



Country

SSR

kˆ

Portugal

1.2536

1

3.6607**

2

-8.2405***

Ireland

0.0386

1

92.4192***

12

0.8952

Italy

0.0351

1

12.4959***

9

-2.6063

0.2062

1

8.8533***

9

-2.4110

0.4101

1

7.5155***

9

-7.2516***

Greece Spain

Lags of St

 LM kˆ

Notes: *** and ** indicate significance at the 0.01 and 0.05 levels, respectively. Critical values for the  LM (kˆ) statistic are taken from Enders and Lee [12] Table1a.

105

Figure 1 displays the time paths of the unemployment rates for each country. We can clearly observe structural shifts in the trend of the data. Accordingly, it appears sensible to allow for structural breaks when testing for a unit root (and/or stationary). The estimated time paths of the time-varying intercepts are also shown in Figure 1. A further examination of the figures indicates that all the Fourier approximations seem reasonable and support the notion of long swings in unemployment rates. Worth noting is that the results here are not consistent with those of Song and Wu ([33], and [34]), which, based on the unemployment rate data for 48 U.S. states and 16 OECD countries, support the weak version of the natural-rate hypothesis. Our results are, nevertheless, consistent with those of Leon-Ledesam [18], Camarero and Tamarit [7], and Chang et al. [8], which support the notion of hysteresis in unemployment for most European countries. A major policy implication of our study is that a stabilization policy may have some permanent effects on the unemployment rates for the PIIGS countries in this paper. What, then, are the most effective policies to fight this continuously climbing unemployment rate? To answer this, the underlying reasons for unemployment must first be identified; however, as this is beyond the scope of this paper, it will be investigated in a future study.

5. Conclusion In this empirical study, the Fourier unit root test advanced by Enders and Lee. [12] is used to re-examine the hysteresis hypothesis in unemployment for PIIGS countries from the 1960 to 2011. The hysteresis hypothesis in unemployment is confirmed for all countries, with the exception of Portugal and Spain. As concerns major policy, our study implies that a fiscal stabilization policy could possibly have lasting positive effects on the unemployment rates of these PIIGS countries under study. 18

14

16

12

14

10 12

8 10

6

8

4

6

2

4 2

0 60

65

70

75

80

85

Portugal

90

95

00

05

60

10

65

70

75

80

85

Ireland

Portugal-HF

12

18

11

16

10

14

9

12

8

10

7

8

6

6

5

4

90

95

00

05

10

00

05

10

Ireland-HF

2

4

0

3 60

65

70

75

80

85

Italy

90

95

00

05

60

10

65

70

75

80 Greece

Italy-HF

85

90

95

Greece-HF

24

20

16

12

8

4

0 60

65

70

75

80 Spain

85

90

95

00

05

10

Spain-HF

Figure 1. Plots of unemployment rate of PIIGS and fitted nonlinearity

106

References [1] Bai, J. and Perron, P., Estimating and testing linear models with multiple structural changes, Econometrica, 1998, pp.47–78. [2] Becker, R. W., Enders and Lee, J., A general test for time dependence in parameters, Journal of Applied Econometrics, 2004, pp. 899-906. [3] Becker, R. Enders, W. and Lee, J., A stationairy test in the presence of an unknown number of smooth breaks, Journal of Time Series Analysis, 2006,pp. 381-409. [4] Bierens, H. J., Testing the unit root with drift hypothesis against nonlinear trend stationarity, with an application to the U.S. price level and interest rate, Journal of Econometrics, 1997, pp. 29-64 [5] Blanchard, O. and Summers, L., Hysteresis and the European unemployment problem, in NBER Macroeconomics Annual, 1986, MIT Press. [6] Brunello, G., Hysteresis and ‘the Japanese unemployment problem: a preliminary investigation, Oxford Economic Papers, 1990, pp.483-500. [7] Camarero, M., and Tamarit, C., Hysteresis vs. natural rate of unemployment: new evidence for OECD countries. Economic Letters, 2004, pp. 413-417. [8] Chang, T. Lee, K. C. Nieh, C. C. and Wei, C. C., An empirical note on testing hysteresis in unemployment for ten European countries: panel SURADF approach, Applied Economics Letters, 2005, pp. 881-886. [9] Dixon, R. and Shepherd, D., Trends and cycles in Australian state and territory unemployment rates, Economic Record, 2001, pp.252-269. [10] Enders, W. and Lee, J., Testing for a unit root with a nonlinear Fourier function, working paper, Department of Economics, Finance and Legal Studies, University of Alabama, Tuscaloosa, AL, USA, 2004. [11] Enders, W. and Lee, J., The flexible Fourier form and testing for unit roots: An example of the term structure of interest rates, working paper, Department of Economics, Finance & Legal Studies, University of Alabama, Tuscaloosa, AL, USA, 2009. [12] Enders, W., Lee, J., A unit Roots Test using a Fourier series to approximate smooth Breaks. Forth coming at Oxford Bulletin of Economics and Statistics, 2012. [13] Gallant, R., On the basis in flexible functional form and an essentially unbiased form: The flexible Fourier form, Journal of Econometrics, 1981, pp.211–353. [14] Ghosh, D., and Dutt, S., Nonstationarity and nonlinearity in the US unemployment rate: A re-examination, Journal for Economic Educators, 2008, pp. 43-53. [15] Gustavsson, M., and Osterholm, P., Hysteresis and non-linearities in unemployment rate, Applied Economics Letters, 2006, pp. 545-548. [16] Jaeger, A. and Parkinson, M., Some evidence on hysteresis in unemployment rates, European Economic Review, 1994, pp.329-342. [17] Kwiatkowski, D. Phillips, P. Schmidt, P. and Shih, Y., Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root? Journal of Econometrics, 1992, pp.159-178. [18] Leon-ledesma, M A., Unemployment hysteresis in the US states and the EU: a panel approach, Bulletin of Economic, Research, 2002, pp95-103. [19] Leybourne, S. Newbold, P. and Vougas, D., Unit roots and smooth transitions, Journal of Time Series Analysis, 1998, pp. 83-97. [20] Ludlow, J. and Enders. W., Estimating non-linear ARMA models using Fourier coefficients. International Journal of Forecasting, 2000, pp. 333–347. [21] Maddala, G. and Kim I.-M., Unit roots, cointegration and structural change. Cambridge University Press, UK, 1998. [22] Mitchell, W. F., Testing for unit roots and persistence in OECD unemployment rates, Applied Economics, 1993, pp.1489-1501. [23] Nelson, C. and Plosser. C., Trends and random walks in macroeconomic time Series, Journal of Monetary Economics. 1982, pp.139-162. [24] Newey, W. and West, K., A simple positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix, Econometrica, 1987, pp.703-708. [25] Newey, W., West, K., Automatic Lag Selection in Covariance Matrix Estimation. Review of Economic Studies, 1994, pp. 631–653. [26] Ng, S. and Perron, P., Lag length selection and the construction of unit root tests with good size and power, Econometrica, 2001, pp.1519-1554. [27] Pascalau, R., Unit root tests with smooth breaks: an application to the Nelson-Plosser data set, Applied Economics Letters, 2010, pp. 565-570. 107

[28] Perron, P., The great crash, the oil price shock and the unit root hypothesis, Econometrica, 1989, pp.1361-1401. [29] Rodrigues, P. and Taylor, A. M. R., The Flexible Fourier Form and Local GLS De-trending Unit Root Test, forthcoming at Oxford Bulletin of Economics and Statistics, 2012. [30] Roed, K., Unemployment hysteresis–macro evidence from 16 OECD countries, Empirical Economics, 1996, pp.589-600. [31] Schmidt, P. and Phillips, P.C.B., LM Test for a Unit Root in the Presence of Deterministic Trends, Oxford Bulletin of Economics and Statistics, 1992, pp.257-287. [32] Smyth, Russell, Unemployment hysteresis in Australian states and territories: evidence from panel data unit root tests. The Australian Economic Review, 2003, pp.181-192. [33] Song, F.M. and Wu, Y., Hysteresis in unemployment: evidence from 48 U.S. states, Economic Inquiry, 1997, pp. 235-244. [34] Song, F.M. and Wu, Y., Hysteresis in unemployment: evidence from OECD countries, Quarterly Review of Economics and Finance, 1998, pp.181-192. [35] Yilanci, V., Are unemployment rates nonstationary or nonlinear? Evidence from 19 OECD countries, Economic Bulletin, 2008, pp.1-5

108

B240 Industrial Policy for Photovoltaic Industry in China a

YU Lihonga, YU Yihong b School of Business, East China University of Science and Technology, Shanghai, China, ylhcumt@vip.sina.com b

School of Management, Fudan University, Shanghai, China, yyu@fudan.edu.cn

Abstract The photovoltaic (PV) industry in China is facing a very difficult situation recently after several years’ fast growth. Although the target of the industrial policy for PV industry is consistent with the strategic goal of sustainable development, the effect of the policy seems bad. The paper evaluates the effectiveness of the policies based on a framework of industrial policies and emphasizes a demand drive perspective. Focusing on consistency and compatibility of policies, the paper suggests that the industrial policies should be designed to break the barrier of connecting PV power to the state grid instead of stimulating the manufacturing in the midstream of the PV industrial chain.

1. Introduction In order to transition the pattern of economic growth and fulfill the goal of carbon emission reduction, China has to change its coal-dominated energy structure in the direction of using more new energy instead of fossil energy. Since 2005, with the issue of the "Renewable Energy Law" (REL) and other laws and policies, the destination and path of renewable energy development in China have become clearer and brighter. The PV industry is one of the most important new energy industries, showing very fast growth in last several years in China. From 2004 to 2009, the output of solar cells increased by more than 100% every year on average, and the output accounting for 37.4% of the total in the world. [1] The current problem of the PV industry in China could be simply described as “two ends outside”, from the perspective of industrial chain. Concerning the final application of PV at the downstream end of the chain in China, it hasn’t kept pace with the development of midstream production, as more than 90% of solar cells produced in China were exported. In some sense, the rapid growth of the user end of the PV industry in some European countries is the driving force of the fast growth of PV in China. On the upstream end of the industrial chain, the supply of raw materials, polycrystalline silicon relies heavily on imports, the percentage of imports remains as high as 50%. At the midstream of the industrial chain, the capacity of production expanded even faster, so that the capacity exceeds the world total demand by a wide margin. As one of the strategic emerging industries, the PV industry needs support from governments in its initial stages of development, but the effectiveness of the policy should be evaluated in terms of the goal of the development. Currently, as the result of the “two ends outside” pattern, the benefit of the green energy PV is exported out of China, while the energy consumption and pollution caused in the manufacturing section is left inside, which is absolutely in contravention of the goal of intended policies promoting new energy. Aiming at the problems existing in the current PV industry, many policy suggestions have been put forward by previous studies, among which raising the price of connection of PV electricity to the grid was widely considered as a key solution [2] [3] [4]. However, from the perspective of balancing the whole industry chain, and admitting the key role played by price, this paper reminds that new problems may arise after the price is increased. Given the situation in China, it is urgent to encourage the application of PV in the downstream of the chain. It may be more meaningful to focus on the final consumption of PV electricity at the user end. Yu Lihong conducted an in-depth analysis of wind power development policies and their effectiveness, [5] finding that the lack of demand-side incentives is the major problem of China's wind power industry. In fact, a similar conclusion could be also applied to the PV industry.

109

In the second part of this paper, the promotion policies and current status of the PV industry in China are briefly discussed. Then, the effectiveness of the policies is evaluated from the industrial chain perspective. Following that, aiming at the flaws in current policies and focusing on a balanced development of the whole industrial chain, a systematic framework of industrial policies is constructed. Finally, the paper provides some critical policy proposals towards the healthy development of the PV industry in China in the future.

2. The Industrial Policies for PV industry in China The industrial chain of the PV industry is the base of analysis. Along the PV industry chain, the crystalline silicon material and its manufacture stay in the upstream, while the PV cells, modules and integrated systems belong to the midstream, and the final users in the downstream can get the electricity through two means, the off-grid or the grid-connected system. The present situation of PV industry in China has largely caused by the industrial policies issued in recent years. China’s first renewable energy related law is the REL issued in February 2005, by which the strategic position of renewable energy and the basic policies of its promotion are identified. Following that, some development plans were set by the National Development and Reform Commission (NDRC); the most important ones were the “11th Five-Year Plan on Renewable Energy Development” (2006) and the “Mid- and Long-Term Plan for Renewable Energy Development” (2007), by which the overall goals for the development of renewable energy industries in China and the principle of industrial policies were set. For PV industry, the goal of total solar power generation capacity was 300MW by 2010 and 1800MW by 2020. These plans lack implementation details, and are not practical enough for actual implementation. The rapid growth of PV industry in China actually started until some stimulus policy issued to “save the economy” after the financial crisis. In 2008, the “Energy Conservation Law” (ECL) was carried out, which encourages installing and using solar and other renewable energy systems, while implementing tax incentives and other supporting policies. In March 2009, the Ministry of Finance (MOF) and Ministry of Housing and Urban Construction (MHUC) jointly issued the “Interim Procedures for Financial Assistance Fund for Solar PV Applications in Construction” and announced the implementation of the “Solar Roofs Project” (SRP), which offers subsidies for PV power generation systems with capacity of above 50 kilowatts installed on building roofs. In July 2009, the MOF, Ministry of Science and Technology (MST) and National Energy Administration (NEA) jointly issued “On the Implementation of the Golden Sun Demonstration Project (GSDP),” and “Interim Procedures for Financial Assistance Fund for GSDP,” which granted 50% and 70% of the subsidies in terms of total investment to grid-connected power generation projects and off-grid projects in remote areas without electricity. Appropriate discounts or subsidies were also given to industrialization projects for key PV technologies and construction projects for developing the PV industrial base. The first GSDP in 2009 consisted of 329 programs with a total designed capacity of 642 MW; the second GSDP in 2010 proposed a capacity of 272 MW; in 2011, the total scale of GSDP was fixed at 600 MW. Since then, SRP and GSDP have become the core projects to promote the development of the PV industry. In October 2010, “Decision on Accelerating the Development of Strategic New Industries” was released by the State Council, and confirmed in the “12th Five-year Plan” in March 2011, with new energy highlighted as one of seven strategic emerging industries targeted for an established focus for development in the future. At the same time, PV projections were increased to a much higher level, so that the installed capacity of solar power will be expanded to 5 GW by 2015 and 20 GW by 2020, ten times the capacity of the original plans. Guided by these policies, large grid-connected PV power generation projects were initiated by way of license bidding. In March 2009, a 10 MW grid-connected PV power plant in Dunhuang, was officially 110

launched and the bid price was set at 1.09 Yuan / kWh. In July 2010, the second round of bids invited for PV power plants began, involving 13 projects in eight western provinces, with a total capacity of 280 MW; the lowest bid price came in at only 0.7288 Yuan / kWh and the average bid was 1.02 Yuan / kWh. However, the bid price was too low compare to the cost of PV power generation. In August 2011, the NDRC announced the “Notification on Improving Solar PV On-grid Power Tariff Policy,” which sets the uniform on-grid tariff at 1.15 Yuan /kWh for those solar PV power generation projects approved before July 1, 2011 and put into operation before December 31, 2011. Except for 1.15 Yuan/kWh in Tibet, the price is set at 1 Yuan/kWh for those projects approved after July 1 in the rest of the provinces. This new on-grid pricing policy is considered as a milestone in the development of China's PV industry, as it lays a solid foundation for its healthy growth. In terms of the development of solar power technology, some policies have been issued through the Basic Research Program (“973 Program”), High-Tech Research Program (“863 Program”), Innovation Fund for Small and Medium Enterprises by MST, and through the Plans by NDRC, which are mainly to give financial support to the application of technology. The industrial policies for the PV industry were intensively released by the national government, as well as by local governments. The most typical was that of Jiangsu province. As one of the major PV producers in China, the local government of Jiangsu released “The Opinion on PV Advancement” in June 2009, which planned to enlarge the capacity of PV power generation up to 400 MW in three years, providing special funds for subsidies and identifying a fixed tariff at the local level. Meanwhile, policies were also issued in rich solar power provinces such as Qinghai, Gansu, Ningxia, Inner Mongolia and other western provinces, including compensations such as free land transfer, grid-connected power generation priorities, and price subsidies.

3. Effects of Industrial Policies and Problems in China’s PV Industry Obviously, the effectiveness of promotion policy can never be measured only by a few indicators such as output or installed capacity; what is more important is to evaluate the effects of the industrial policies based on the goal of the policy and the long-term goal of the development of the PV industry in China. Based on the characteristics of the Chinese economy, this paper emphasizes that the most important goal in the development of the PV industry and all other new energy industries should be the sustainable development of the economy; then, to strengthen the competitiveness of the industry should be the second level strategic goal, because China is still a developing country and is facing some big challenges in its long-term development. Following this approach, more specifically, China needs to improve the structure of energy consumption, and to upgrade its new energy technology. However, the current policies are a clear failure in terms of stimulating the consumption of renewable energy and increasing its proportion in primary energy consumption. The development between the upstream and the downstream of the PV industry chain is highly unbalanced. It is reported that, by the end of 2010, the two 20 MW PV power stations in Dunhuang had been already completed, but only 20% of the power generated was connected to the state grid, due to the ill-equipped grid infrastructure in northwest China. Wind power also suffered from the same problem. Obviously, the monopoly power of the state grid is a major constraining factor in grid-connection for PV systems, and the regulating departments have failed in the timely enforcement of compulsory on-grid policy. In such a situation, the imbalance of China’s PV industry chain development has resulted in three problems as follows. First, the over-invested excess capacities of polysilicon were mainly associated with low-end technology, so Chinese companies are still lacking in core technologies, and the production cost is rather high. The core technology of polysilicon production especially for polysilicon purification is still dominated by foreign enterprises, so some core equipment like polycrystalline silicon casting furnaces still has to be imported. Second, the development of the PV industry mainly depends on exports, which is greatly affected by the fluctuating international market and trade protection policy. Major markets for China PV products 111

are in the EU and North America. The PV companies in China are facing very difficult situation now because of the anti-dumping and anti-subsidy investigation launched in US and EU and even India. Third, although PV products, taking the industrial chain as a whole, are energy-generating rather than energy-consuming, the energy conservation is virtually transferred to foreign countries while the high energy consumption is left in China. It is estimated that the electricity from solar power consumed in China was 6.2876 billion kilowatt-hours in 2009, [1] only accounts for a very low proportion of total electricity consumption in China. In addition, the chlorine gas used in the production process of polycrystalline silicon, and its by-product silicon tetrachloride, are both extremely toxic substances and can cause serious pollution in the environment. With lagging technology, many enterprises in China are unable to solve the problems of high energy consuming and highly contaminating emissions. In this regard, the out-of-order development in the polycrystalline silicon industry also does harm to the environment.

4. A Framework of Systematic Policies Based on the PV Industrial Chain Generally speaking, as long as the critical goal is set, the effectiveness of policy depends on the consistency of the policies issued by different institutions of government and the compatibility of the policies towards different segments of the industrial chain. To ensure its strong competitiveness compared with traditional energy resources, and to encourage investors, the PV industry should be consistently protected and supported by different policies including price support, fiscal subsidy, tax deduction, and R&D support. In practice, we can see some problems owing to the inconsistency of such policies. In 2009, for example, the first GSDP which consisted of 329 programs was prepared to be finished in 2-3 years; but by now only half of the project has been finished, largely because the financial cycle for subsidies is too long. Also, in the bidding of GSP, some companies have behaved fraudulently – occupying lands while not using them, pretending to undertake significant projects, setting high equipment prices to increase the subsidy from the government, and so on. What we can conclude is that there was no systematic thinking in the very beginning of the policy design. The compatibility of the policies should be even more important, from the industrial chain perspective. While an individual policy issued could have a positive effect focused on some specific segment of the industrial chain, the policies as a group could result in serious problems for the industry if there were incompatibilities between them. The situation of “two ends outside” for the PV industry in China, mentioned above, is evidence of just such an incompatibility of policies. The policies come from different branches of the central government, with differentiated designs and implementation. Without a coherent policy system, and considering the multiple targets and distinctive properties of different policies, it is difficult to meet the principle of compatibility. To improve the effectiveness of industrial policies, combining consistency and compatibility, an integrated policy framework needs to be constructed, which is illustrated in Table 1.

Industrial Chain

Manufactur Sector

Table 1. The Framework of Systematic Polices for the PV Industry Development Financial Fiscal Technology Trade Plan policies taxation policies policies Installation Discount of Grant-in-aid, Financial aid Tariff Quantity lending rate Reduction to R&D, policy, foundation and Technology Quota of exemption introduction, imports or of taxes, Utilization exports Special of foreign funds capital

112

Industrial organization Reducing barriers to entry; Support to SME, Deregulatio n

Consumption Sector

Quantity or percentage of PV power connected to the grid and to total energy consumption

Access price subsidy, Financial support to the grid reconstruction, Subsidy to the consumption of green electricity, Subsidy to large consumers off-grid program

Upgrading of the grid, Improvemen t of PV technology

——a

Access regulation

Note: a. “——” implies relative polices are inapplicable. The vertical column on the left in Table 1 implies different segments of the PV industrial chain. To simplify, the PV industrial chain is divided into two parts, the manufacturing sector and the consumption sector; the former includes the upstream and midstream and the latter includes the downstream of the industrial chain. More specifically the former includes polysilicon processing, manufacture of PV cells and modules, integration and installation of PV systems, etc., and the latter is composed of on-grid and off-grid power consumption. The manufacture of production facilities and other accessorial materials is omitted here, which should have contributed to a more comprehensive industrial chain. The horizontal line on the top of Table 1 shows the policy tools, which involves development planning, financial policies, fiscal taxation, technology policies, trade policies, industrial organization policies, etc. The industrial policies illustrated in Table 1 are just a systematic framework, based on the experience in past years in China and what we could learn from advanced countries, this paper suggests that the direction of industrial policies for the PV industry in China should be changed and the focus point should be the final consumption of PV power instead of upstream and midstream of the industrial chain. Some critical points of policy suggestions are as follows. 4.1 Industrial development plan from the demand drive perspective. Dealing with energy issues, the long-term strategic goals of industrial policies should be sustainable development. To represent the achievement of the goal, some index such as the final consumption of PV power and its proportion in total energy consumption should be used, so the development plan should focus on the final consumption of PV energy instead of on midstream manufacturing and installation of PV products. To set a quantitative target for PV power use will be much more effective, since final demand is the most effective signal for all upstream enterprises to make decisions on investment. More specifically, the development plan for PV power use should be divided into two categories, on-grid and off-grid; because there are important differences between these two categories in terms of the characteristics of vertical relationships through the industrial chain. For on-grid PV power, the solar resource is the critical factors that should be taken into account. It is economically efficient for some provinces which are abundant in solar resources to build PV generation plants, but it is inefficient for other provinces. Another critical factor is the transmission of PV power through grid network, so the plan should not only set the quantity of on-grid PV power but also quantify the capability of electricity transmission, to avoid the bottleneck on the grid network. For off-grid PV power use, the Building Integrated PV (BIPV) plays the main role. Although the percentage of off-grid PV is decreasing and most BIPV are grid-connected in advanced countries, China could develop BIPV from an off-grid pattern in the first stage and get them connected to the grid in the future. Considering the facts mentioned above, it is the right time for China’s government to change the direction of industrial policy guidance from PV installation to PV power use, placing more importance on the goal of quantity or percentage of PV power use and the percentage of PV power consumption to total energy. In other words, the development of the whole industry should be driven from final demand.

113

4.2 Financial and fiscal policies focusing on demand driver. To achieve a sustainable growth of the PV industry, when the quantitative target of the development plan is set for the final use of solar power, there are two problems that should be solved in China. First, it is necessary to redirect subsidy policies to focus on the downstream user end instead of the midstream manufacturing segment. Actually, after the user end demand is boosted, its effect on the upstream and midstream may not be worse, but even better. The over-capacity of PV cells and modules could be mitigated only by stimulating the demand, which includes both on-grid and off-grid PV power consumption. There is huge potential in the off-grid markets aiming at enterprises and households, so strong effects of the policy could be expected from direct subsidies to users or BIPV installations. Similarly, as for the taxation policies, while environmental levies and resource levies are imposed on traditional power plants, tax reduction and exemptions should be employed on PV power users. Addressing the second problem, funding sources need to be expanded to support the subsidy and tax policies. To implement the policies suggested above, in the context of the fast growth of the PV industry in China, the total amount of the funds would be huge, and more fund sources need to be explored. Besides special funds from central government and local government, many financial policies could offer feasible options, such as establishing foundations, financing from the stock market, loans from banks and discount in the lending rate, etc. 4.3 Industrial organization policies based on market mechanism. One principle should be obeyed by government in industrial organization policy design: that is, the government should take the market mechanism as basic to improve the effectiveness of PV industry development. More specifically, the government should play a role in maintaining a fair competitive market, and regulate the monopolist if the market has the structure of a natural monopoly. In the PV industry in China and maybe to a similar extent in other countries, the markets in the upstream and midstream are competitive, and policies should be designed in the direction of encouraging competition and maintaining a fair environment. As for the downstream, the government should enhance regulation of the state grid because of its position as a monopolist, and the regulations should be put on price and investment, and especially on the mandatory purchase of electricity generated by renewable energy. Up till now, in the downstream, the construction and upgrade of the power grid network have lagged behind other segments of the PV chain, especially in the western areas with abundant solar resources. That explains the limited ability of the grid to receive the unstable electricity generated by renewable energy, which in turn becomes the bottleneck of the PV power application. However, the critical problem is that as a monopolist, the grid company faces no incentives from the market (it is costly to upgrade the grid) or compulsion from the government to receive PV electricity. Although the REL issued in December 2009 had put forward the regime of mandatory purchase, at full price, of renewable energy including PV electricity, unfortunately the policy didn’t perform well in reality. The government needs to conduct more severe regulation policies. Even with the help of legal compulsion and the government’s generous financial aid, the worrisome fact remains that it is far from easy to settle the problem of connecting PV electricity to the grid. 4.4 Trade policies based on industrial chain evaluation. Looking towards the strategic goal of sustainable development, international policies should be redesigned based on evaluation of the PV industrial chain as a whole. The export of PV cells and modules after assembly and integration in China is neither good for energy conservation and emission reduction nor for the creation of added value. The role played by Chinese enterprises in the industrial chain is only manufacturing based on labor-intensive technology and cheap labor. It is necessary for policymakers to impose an environmental levy or special tariff to reverse this embarrassing situation. Accordingly, trade or tariff policies encouraging the importation of polycrystalline silicon and other energy-guzzling materials should be introduced. 4.5 Industrial policy for upgrading technology. For the long-term development of China, technology upgrading is critical for the PV industry and many other industries to build its international competence. It is in this area that the government should and could do something significant to enhance the capability of R&D for enterprises at both the macro and 114

industry level. The key policy at the macro level should be intellectual property protection, by which long-term incentives could be enhanced for all industries and enterprises; while for technology policy at the industry level, the government could select some core technologies to support for strategic industries. Specifically, R&D support in the PV industry should be focused on both the upstream, e.g., the purification of polycrystalline silicon and design of related key equipment, and the downstream, e.g., the upgrading of off-grid application technology. Considering the present administrative system in China, the effectiveness of all the industrial policies suggested above for the PV industry depends largely on the cooperation and coordination between different ministries and departments of the central government, and the capability of implementing policy of these administrative units. For PV industrial chain, industrial policies are issued by different ministries for different segments, and every ministry may have its own target and distinct subsidy policies, making the enterprises somewhat disoriented. As for the different subsidy policies, those proposed by the MOC and the MST mostly are “installation subsidies,” meaning all the programs using PV technologies are qualified, while NEA provides subsidy only when the electricity is connected to the grid in the form of a discount in prices. All in all, the consistency and compatibility of different policies issued by different branches are crucial for the effectiveness of the whole set of industrial policies.

5. Conclusions The present situation of China’s PV industry could be described as “two ends outside,” which is to a large extent caused by the industrial policies issued by the government. Although the PV industry, as one of the strategic industries, deserves some support from government in the initial stage of development, the effectiveness of industrial policies heavily relies on their consistency and compatibility, so that a systematic thinking and design of the policies is most important for policymakers. This paper has built a framework for the systematic view of the industrial policies from an industrial chain perspective. The policy framework includes six aspects: the development plan, financial policies, fiscal taxation, technology policies, trade policies and industrial organization policies. Based on the experience in past years in China and what we could learn from advanced countries, this paper suggests that the development of the PV industry in China in the future should be driven from final demand, so the direction of industrial policies should be changed in time and the focus point should be the final consumption of PV power instead of upstream and midstream of the industrial chain. Some key points of policy suggestions are emphasized: the development plan should set the quantity or percentage of PV power final use and the percentage of PV power consumption relative to total energy; it is necessary to redirect financial and fiscal policies from focusing on the manufacturing segment to the downstream user end, and funding sources need to be expanded; the government should enhance regulation on the state grid because of its monopolistic position, and the regulations should be put on price and investment and should especially include the mandatory purchase of electricity generated by renewable energy; imposing an environmental levy or special tariff to reduce the export of PV cells and modules could be considered, and trade or tariff policies encouraging the import of polycrystalline silicon and other energy-guzzling materials should be introduced; the technology policy at the macro level should be intellectual property protection, while at industry level the government could select some core technologies to support strategic industries. A systematic design of industrial policies is most important, the consistency and compatibility of different policies issued by different branches of government are crucial for the effectiveness of the whole set of industrial policies, so the cooperation and coordination between ministries and departments of the central government, as well as the capability of implementing policy of these administrative units, should be enhanced.

115

References [1] [2] [3] [4] [5]

Chinese Academy of Engineering, Research on China’s Medium (2030) and Long-term (2050) Energy Development Strategy: The Volume of Renewable Energy, 2011, Beijing: Science Press. Wang, F., Yin, H., Li, S., China’s renewable energy policy: Commitments and challenges, Energy Policy, 2010, pp. 1872-1878. Geng, Y., Zhou, X., The developmental path of the solar photovoltaic industry, China Soft Science, 2010(4), pp. 19-28. Liu, H., Shi, Z., Suggestions for development of solar energy industry in China, Science Technology and Engineering, 2008(22), pp. 6062-6070. Yu, L., The renewable energy policy in the vision of wind power projects, Reform, 2008(12), pp. 51-59.

116

B244 The Strategic Implications of China-Nigeria Economic Relations Okolo Abutu Lawrence School of International Relations, Xiamen, China, P.R. E-mail: lauren4all2003@yahoo.com

Abstract This paper examines China-Nigeria economic-political relations. On February 10, 1971 a historical stage was set between China and Nigeria, one of not only bilateral relations but of mutual respect for each other. Although this relationship dates back to more than three decades, recent developments call for a careful and detailed analysis of this union and to this end, I seek to provide analysis of the relationship with respect to investment, trade, aid, and economic cooperation. Recent developments in China and Nigeria relationship are not unconnected with the renewed ties between the two giants as Nigeria has become one of China's most important trading partners in Africa. The contemporary waves of diplomatic relations appear to a reasonable extent mutually beneficial. Nigeria’s quest for development with an aggressive campaign for FDI as one of the motivating forces has opened the economy which China is seen as an ideal business partner. Accordingly, this paper, through a critical review of the literature examines, and evaluates the opportunities and challenges abound in the nascent economic and trade relationships, and discusses the prospects of the deals for the Chinese, Nigerian, and African socio-economic growth.

Introduction Since the founding of People`s Republic of China in 1949, China has made tremendous efforts to explore a development road designed for her own needs and suitable to her own national conditions, which was finally summed up by Deng Xiaoping, the architect of the opening-up in 1978. The past three decades have been a critical period for Chinese people to seek harmonious scientific and sustainable development at national and international level to strengthen cooperation and embrace globalization with the world. In its quest to be part of globalization, China- Nigeria established diplomatic relations on February 10, 1971. But the internal crises faced by both countries reduced the pace of economic integration like Nigeria, the trade policy since 1960 witnessed extreme swings from high protectionism from the West in the first few decades after independence and also placed high restrictions on the importation of capital goods that could have enhanced local industries like machineries to boost agricultural production and other sector of the economy [1]. The relation of the two countries grows closer as a result of international isolation and condemnation of Nigeria’s military regimes 1970-1998. While on the other hand, the Chinese open door policy embarked by the communist party in 1978 led by Deng Xiaoping give equal commercial and industrial rights to all the nationals, this also precipitated the economic relations between the two. These relations which seem to be enjoying a rapid progress are based on the principles of equality respect and mutual benefit, with the friendship and exchanges of visits between the two countries consolidated with the time. Under the framework of the forum on China-Africa cooperation, known as FOCAC which started in 2000. More importantly, with the follow-up actions of the Beijing summit of the FOCAC in 2006, the bilateral relations between China-Nigeria get further boost and enjoy rapid development. China and Nigeria have a couple of unifying characters in common, first of them all, is their natural advantage in population with China`s population estimated at 1.34 billion and China holds as the second largest economy in the world after United States of America. While on the other hand, Nigeria is the largest market in Africa, it has a population put over 166 million people in July 2012 and the largest in Africa [2]. The recent boost in China-Nigeria economic relations is as a result of a number of factors among the most important factors is the recent phenomenon of increased income for both China (More sustained) and Nigeria. Also, there are economic complementarities between the two countries. A dimension of this is the market opportunities which drive the relationship. Thus, while Nigerians (Consumers) are looking for cheap products from China, Chinese growing manufacturing firms are seeking market 117

opportunities for their intermediate and final manufactured products to Nigeria. Also, the input sourcing and export promotion drive of the two nations is another dimension of the economic complementarities. As the growing Chinese firms are seeking raw materials (oil and other minerals, agricultural products, etc for inputs and generation of energy), Nigerian exporters are seeking market opportunities for their primary products. China’s ability to provide the financial and technical assistance (at concessionary interest rate or /and with aid) to Nigeria which is in need of such is another critical factor. The recent repeated political visits by Nigerian government and the reciprocal visits by the Chinese Government also led to the signing of bilateral Trade Treaties and Memorandum of Understandings between the two nations which also strengthened their relationship. Hitherto, traditional development partners mainly from Europe and the Americas (U.S. A and Canada) have dominated trade, investment (in terms of foreign direct investment FDI) and grants and financial as well as technical aid to the country. These are governed by various bilateral and regional agreements that exist between these countries and Nigeria. Although Nigeria and these countries have come a long way in their relationship, it is debatable if such has in any significant way assist the country in its quest for development. The relationship appears to be exploitative at least from the trend in the structure and pattern of trade and FDI inflow to the country. This is based on the fact that oil and gas sector dominates the country’s exports to the tune of about 98% and FDI inflows to the oil and gas sector accounted for about 40%.[3]

Sino-Nigerian Relations before the Open Door Policy China remains the most populated country in the world with over 1.3 billion people, while Nigeria is ranked 7th in the list of most populated countries in the world with over 166 million people estimated by United Nations in July 1, 2012 [4]. In another development, going by Goldman Sachs predictions in 2005 that the future outlooks for the two economies, China and Nigeria can be considered blissful according to this renowned institution’s account, the two nations by 2050 shall be regarded as the largest economies on different plains; Goldman posited that China will be the largest economy in the world while Nigeria will be Africa’s prime. This is not only scenario where the two nations are in tandem with each other with respect to other nations of the world. Furthermore, it appears that the bonds of economic relations between them are firing up especially the re-introduction of FOCAC meetings and different changes in the two countries [5]. Nigeria’s relations with China have grown in the last decade from the limited and intermittent contact that marked the immediate post-independence era to an increasingly complex and expansive engagement. While, like most other African countries in the 1960s and 70s, Nigeria viewed China as a nonaligned developing country, it did little to foster business or even special diplomatic relations with the Asian giant. Nigeria’s trade focused primarily on European and North American countries, which proclaimed themselves development partners. China’s own economic and political challenges made it an unlikely development partner at that time. Following Deng Xiaoping’s reform policies of the 1970s and 80s, China’s dramatic growth and modernization, and attendant industrial, energy, and market expansion needs, brought it into greater contact with Africa. Its new expanded presence offered a partnership seen by many stakeholders as an alternative model to Western relationships. Although Nigeria has always leaned toward the West; the closeness of the relationship has varied, Nigeria's Western ties were originally strongest with Britain, its former colonial ruler. The special relationship, which lasted until the 1966 coup, led Nigeria to side with Britain on most issues. After the coup and the civil war, the new Nigerian leaders were less favorable toward Britain, especially after Britain took a position of neutrality in the civil war, refused to sell arms to the federation and ignored the blockade against Biafra. Nigerian leaders also were rankled by Britain's support of white-dominated governments in southern Africa. Several Nigerian groups pressured the new government to weaken ties with Britain as the only way to true independence. At times, more verbal and symbolic damage was done to Nigerian-British relations for Nigerian popular consumption than was true in reality [6]. More importantly, by 1960-1998 the governments of newly independent Nigeria adopted a broadly pro-Western stance, and while it did not actively support Taiwan, it also did not seek relations with China. Chinese Premier Zhou En-Lai’s 10-country trip to Africa in 1963 did not include Nigeria, and a Chinese delegation that visited Nigeria in 1964 seeking the establishment of diplomatic ties was sent away empty-handed. Unlike other African countries that did draw close to China, Nigeria never received gifts of imposingly built sports stadiums or government ministry buildings from the Chinese 118

government during this era [7]. However, on the part of China, in the nineteenth century China was invaded by the Western powers, forced to grant extraterritorial privileges, sign unequal treaties, pay reparations, and turn to the outside world for famine relief, development aid, weapons, and manufacturing skills. To gain its independence the country had to remake its technology, educational institutions, ideology, laws, and military and political systems on Western models. Chinese thinkers believed that nothing less than national survival was at stake. In the same line, Japan showed his exploitative desperation over the economy of China and South-East Asia with the support of her superior military backbone, Japan gained concessions in China with the Western powers in World War 1 and China`s internal political weakness precipitated Japanese invasion in Manchuria turned it into puppet state and despite Chinese appealed to the League of Nations ,Japan invaded Shanghai and other significant cities near the port city on 18 January 1932, and because of state of military aviation in China was very poor, regional warlords having purchased foreign aircraft on the basis of bad leadership at the time [8]. Chinese economic and technological systems were backward compared to those of the West. To develop without relying on foreign powers, Mao Zedong and his colleagues devised a system modeled on Stalinism but with a number of unique features. They collectivized the land and organized the peasants into communes. The party-state extracted capital from agriculture, used it to build state-owned industry, and returned the profits to more industrial investment. This led to rapid industrial growth in the 1950s, although growth slowed later under the impact of the Great Leap Forward and the Cultural Revolution. In three decades China made itself self-sufficient in nearly all resources and technologies [9]. However, by the end of Mao’s life in 1976 China’s economy was stagnant, and technology lagged twenty to thirty years behind world standards and most Chinese lived in cramped quarters with poor food and clothing, few comforts, and freedoms. Most of Asia and the world had raced beyond China toward technical and social modernity. In the same vein, China’s post-Mao rulers, led by Deng Xiaoping, adopted a different economic development strategy called "reform and opening." Reform meant changes in the domestic economic and administrative systems, especially freeing the peasants from the communes so they could farm as families or engages in local industry and freeing industrial enterprises to compete in a market environment. Opening meant joining the global economy, allowing foreign trade and investment to flourish. China has now become one of the world’s major trading nations and is poised to join the World Trade Organization which sets the rules for the global trading economy during this period [10].

China’s Trade and Investment in Nigeria The relationship between Nigeria and China has helped Nigeria shed its colonial leanings towards the West, and look at Asian alternatives. Nigeria’s population which is over 150 million has benefited tremendously from Chinese interest not just economic affairs, but also in the fields of education, culture, aid and health. Nigeria has benefitted tremendously from China’s assistance in putting its railway network back on track. The modernization of Nigeria’s one track rail to standard gauge rail though under construction is said to be worth $ 8.3 billion in the first phase which China would financed and refurbished about $ 2.3 billion as loan in the project. It has helped extend the network into the interiors of the country, thereby enhancing connectivity. To top all, China also provided the funds for the entire project. The completed project will ease transportation of goods throughout Africa and perishable goods like fruits and vegetables would be able to reach their destination in a far fresher state if from the northern cities to the southern ones. Furthermore, the figure below shows a comprehensive significant of bilateral trade relations between China and Nigeria from 2000 to 2010. Before then, the bilateral trade between China and Nigeria has come a long way; historically in 1969 its total value was recorded at just Great British Pound (GBP) 2.3 million, increasing to GBP 5 million in 1970 and by 1971 it rose to GBP 10.3 million [11]. However, right from the early stages, the terms of trade were in Chinese favor with GBP 4 million of trade recorded in 1970 derived from Chinese textile exports to Nigeria. By 1994 recorded bilateral trade had risen to $90 million. Although a significant increase on the trade levels of two decades earlier, this was still a very low figure or number. Yet bilateral trade more than doubled to $210 million in 1995, and had climbed to $830 million by 2000. While some of this increase was precipitated by Nigerian exports to China, Nigeria exports to China were worth $60 million in 1995, but $293 million in 2000, a nearly five-fold increase yet the terms of the trade favored China, whose exports represented about 73 percent of the bilateral trade total in 1995 and 68 percent of the total in 2000 [12]. As we have seen in the previous part, relations between China and Nigeria intensified after 2000 and there have been a corresponding dramatic development in the bilateral trade level since then. Bilateral trade in 2008 was worth $7.3 billion, almost nine times its level in 2000. China’s exports represented 93% of the bilateral trade total in 2010. 119

Trades between China and Nigeria, 2000-2010

West Africa here includes ECOWAS countries plus Chad and Mauritania Source: Margaret Egbula & Qi Zheng, China and Nigeria: A Powerful South-South Alliance, 2011, p. 6 Around 90 percent of Nigeria exports to China are oil products, which is in line with oil products share of Nigeria’s total export value [13]. China by contrast, has exported an ever-growing range of products to Nigeria. Furthermore, by 2008 the single biggest export to Nigeria recorded imported products by value were electrical apparatus for line telephony, and closely followed by motorcycles and less closely by electric generators, which there were high demand in Nigeria because of its poor electricity supply [14]. By 2005, 7.1 percent of the nation’s total recorded imports came from China. In addition, in 2009, the bilateral trade volume increased to $6.37 billion. In 2010, trade between the two countries was worth $ 7.8 billion. In 2011, Nigeria was the 4 th largest trading partner of China in Africa and in the first 8 month of 2012 it was the 3rd [15]. In same vein, in 2011 China-Nigeria bilateral trade volume hit $10billion. The accumulated Chinese actual investment in Nigeria reached US $4.14 billion in December 2006 and jumped to US $7.55 billion in 2010 up 82%. More importantly, China’s exports to Nigeria by product, 2010 alone: vehicles 11%, electrical equipment 10%, agro-food products 3%, industrial machinery 9%, textile materials 9%, telecommunication equipments 9% while China’s imports from Nigeria by products, 2010 were: petroleum and gas 87%, leather manufactures 3%, metals 7% etc. from the above analysis, one could see a win-win relations between these two great economies [16]. Although, information about Chinese activities in the country points to increasing economic (trade, commerce and investment), social (health and education) and technical relation, the composition of Chinese FDI into Nigeria is fragmented. Though, China has set up over 30 solely owned companies or joint venture in Nigeria actively involved in the construction, oil and gas, technology, services and education sectors of the Nigerian economy. Indeed, according to information obtained from the Nigerian Investment Promotion Commission (NIPC), Chinese private FDI is composed of agro-allied industry, manufacturing and communications sectors. On one hand, some of these investments are joint venture mainly between Chinese and Nigerian investors. On the other hand, some of the Chinese investments have also benefited from investment incentives in the country such as pioneer status and expatriate quotas have been granted to some of these companies [17].

The Implication of China’s FDI on Nigeria’s Economic Development A lot of policy makers and academics contend that foreign direct investment (FDI) can have significant effects on a host country’s development effort [18]. In addition to direct capital financial it supplies, FDI can be a source of valuable technology know-how while fostering linkages with local firms, which can help jumpstart an economy. Based on these debates, industrialized and developing nations have offered incentives to encourage FDI in their economies. Presently, however, the special advantages of FDI and particularly the kinds of incentives offered to foreign firms in practice have begun to be 120

questioned. Fueling this augment is that empirical evidence for FDI generating positive spillovers for host nations is ambiguous at the micro and macro levels [19]. In another development, China’s investments abroad are booming despite an overall decline globally in foreign direct investment (FDI) following the 2008 financial crisis. That trend in Chinese investments abroad is likely to continue, since China’s huge foreign exchange reserves are an increasing source of mobile capital and is a key part of China’s official government policy. The receipts from China’s existing global investments, combined with mounting trade surpluses, have made China the world’s largest capital-surplus economy [20]. Although China’s outward direct investment (ODI) is still small relative to its massive inward FDI, China’s overseas companies have been gaining momentum in moving international capital, investing across a broad spectrum of sectors ranging from natural resources to manufacturing to telecommunications and many others. As China’s economy continues to grow, China faces shortages in almost all raw materials, particularly in oil, iron ore, aluminum, and uranium, and it must therefore build trade linkages with Australia, Russia, Brazil, Nigeria and other resource-rich countries to secure supplies [21]. For many years, China’s economic engagement with Nigeria was limited. Relations stayed at the government-to-government level, consisting of aid agreements and development projects. However, relations have since greatly expanded into the private sector, with investment often directly encouraged by both the Nigerian and Chinese governments. The Chinese business presence, previously limited to the venturing of Hong Kong textile producers and steel processors, is increasingly being replaced by big commitments from Chinese financial institutions. The climate in Nigeria now features Nigerian consultants marketing themselves as having the capacity to manage project financing from China. The acquisition of a stake in Standard Chartered Bank, one of Africa’s leading banks, as well as a stake in IBTC-Chartered Bank in Nigeria, by one of China’s largest banks, has significantly raised China’s investment profile. As Chinese banks continue to support Chinese enterprise in Nigeria, a surge in the level of business involvement is expected to grow sharply [22].

Impact of Chinese FDI on the Oil Sector The Nigerian government depends heavily on joint-venture operations to fund oil exploration and development. Joint ventures account for approximately 95%t of the country’s crude production. The largest joint venture involves Shell Petroleum Development Company (SPDC) of Nigeria Ltd (30 percent); Nigerian National Petroleum Company (NNPC) (55 percent); Elf Petroleum Nigeria Limited (EPNL) (10 percent); and AGIP (5 percent) Sinopec of China. Together these companies produce nearly half of Nigeria’s crude oil, with a daily output of approximately 1.1 million barrels [23]. In addition, ExxonMobil currently produces approximately 570,000 bpd in Nigeria and plans to invest $11 billion in the country’s oil industry between 2003 and 2011 to increase production to 1.2 million bpd. The majority of Nigeria’s oil is exported to markets in the U.S. and Western Europe, with Asia becoming increasingly significant as well [24]. In the same development, Nigeria is number one oil producer in Africa and the world’s tenth largest oil producer, with over 70 percent of its population living in poverty. Some 80 percent of the government’s revenues come from the oil sector. As of December 2012, Nigeria’s oil reserves are estimated at 37 billion barrels. Historically, China had been shut out of Nigeria by Western firms. However, through patience and hard working, political prowess, and technological contributions to the nation, such as promising to build and launch a communication satellite for Nigeria by 2007, Chinese firms are gaining a foothold in the industry. In December 2004 Sinopec and NNPC signed an agreement to develop Oil Mining Lease (OML) 64 and 66, located in the waters of the Niger Delta in South Nigeria. OML 64 has drilled five exploration wells with one well encountering hydrocarbon resources. OML 66 has drilled 18 exploration wells with 12 encountering hydrocarbon resources. In October 2004 Xinhua reported that Nigeria would need $10 billion annually in the next five years to meet its target for oil reserves of 40 billion barrels by 2010 and to eliminate gas flaring by 2008. The Nigerian government signed a memorandum of understanding with China National Offshore Oil Corp. (CNOOC) to identify suitable net upstream oil and gas assets that would be integrated into the downstream projects, including refining, power generation, petrochemicals and fertilizer, in partnership with local industry players. In July 2005, CNOOC and NNPC signed an $800 million contract that will guarantee China receives 30,000 bpd for one year. Most recently, and having the most profound impact, was a mutually beneficial deal between China and Nigeria recently signed by President Hu. In exchange for a $4 billion investment on infrastructure, CNPC was given first refusal rights on four oil 121

blocks. However, through continued hardworking and geopolitical prowess, the pendulum has been swinging in China’s direction. Nigeria has reportedly favored Asian investors, who are more willing to offer vitally needed infrastructure developments in exchange for drilling rights. With time, China could easily replace some of these Western firms when drilling licenses come up for renewal [25].

The Impacts of Chinese FDI on the communication Sector Nigeria’s telecoms market has undergone massive growth, which has resulted in economic development. However, Nigeria is considered one of the major markets for telecoms business opportunities in the world [26]. In addition, the telecoms sector was deregulated, foreign investment was encouraged, and licenses were introduced as part of the government's liberalization policy. Along with the introduction of the Global System for Mobile communication (GSM), GSM service providers were selectively granted licenses and Nigerian Telecommunications Limited (NITEL) was set in the process of privatization [27]. This led to substantial growth in the communication sector, where prior to the reforms, the ICT penetration in Nigeria was considerably very low with less than 1% of the population having access to a telephone due to high connection charges and problems. Additionally, the government's deregulation of the telecoms sector effectively increased competition in the market, distinctively reduced tariffs, improved countrywide network coverage and provided employment opportunities in the nation [28]. Private investors in Nigeria's telecoms sector has increased from about Naira (NGN) 1.09 billion (US$ 50 million) to over NGN 3,865 billion (US$ 25 billion) by 2010. Furthermore, by the end of the year 2010, 65 Nigerians out of every 100 had a phone, which suggests that though the majorities are connected, there is still some opportunity to be had in the sector. The market is expected to continue growing, as the total number of mobile subscribers is expected to reach 90.47 million people by the end of 2011. Subsequent licensing by the Nigerian Communication Commissions (NCC) has given GSM network providers the responsibility of providing fixed and mobile telephony, and Internet and broadband access, thus increasing their range of services. The Nigerian telecoms sector has become the largest generator of foreign direct investment after the nation's oil and gas industry [29]. Furthermore, One of the contributions of Chinese FDI to Nigeria’s economic development is in communication, the very large Chinese telecoms provider of telecoms equipment and network solutions, Zhongxing Telecommunication Equipment Corporation (ZTE) has a presence in the Nigerian mobile telecoms market, mostly through cooperation with existing GSM and code division multiple access (CDMA) operators in the country. ZTE established a subsidiary company in Nigeria in 1999 the same year that the Nigerian telecoms sector was deregulated - and reportedly regards Nigeria as “key for their African business activities in the next couple of years”. Huawei Technologies, another significant Chinese corporation, also established its operations in Nigeria in 1999 and boasts that more than 50% of its employees are local [30]. Huawei provides telecoms solutions and possesses knowledge in telecoms network infrastructure, software, devices, and professional services. Currently, Huawei has a vantage position in the Nigerian telecoms market as a hardware provider in cooperation with telecoms operators in Nigeria, as part of a partnership agreement with Nigeria's Ministry of Communication, Huawei deployed CDMA450 wireless technology across Nigeria. While China Development Bank will provide Nigeria with a loan of US$200 million for this project, Huawei has committed an additional US$20 million intended for manufacturing investment. More so, Huawei demonstrated their commitment to the local Nigerian community, by invested 10 million USD to build Hawaii’s Nigerian Training Center (HNTC), at which more than 800 people have undergone training as of February 2006. Furthermore, Huawei has cooperated with several universities in Nigeria to provide training for their teachers [31]. Finally, the telecoms industry in Nigeria has contributed to the economy in terms of employment generation and foreign direct and private investment, it still remains to be seen how these companies will improve Nigeria's economy in the long-term [32].

Conclusion In 1971, Nigeria-China mutually friendly disposition blossomed into the establishment of relations at ambassadorial level. Thus a mutually and reinforcing and rewarding relationship between both countries began in earnest. In the same vein, this paper explores the contemporary thriving China-Nigeria bilateral economic relations. Consequently, it highlights the associated implications and challenges. As a further contribution to the extant literature in this area, the following noteworthy 122

conclusions are made. The relationship between the two countries have huge current and potential benefits to both countries and Africa as a continent as it further creates more favourable environment for business ties between China and Africa. Equally, it is important that China’s seemingly elitist approach in its relationship with Nigeria economy, Africa inclusive, be redefined to encompass all i.e. both the African leaders and the citizenry to ensure lasting and hitch-free relationship. Stated differently, the ‘win-win’ principle needs be redefined. According to Humphrey Pole-Pole, this will be better implemented as “win-win-win” strategy in which case it apportions a win for China, a win for African governments and a win for African people to sustain the economic pacts [32]. By and large, there is a need for Nigeria to diversify exports to China and other developed nations by increasing exports value added through moving from exportation of pure raw materials to processing. This is considered imperative to accelerate technological development in Nigeria. Invariably, avoidance of unequal partnership is strategic to Nigeria in the bilateral agreement, and opportunity to explore the special tariff (Special Preferential Tariff Treatment – SPTT) on African exports recently introduced by Chinese government with processed and manufactured products rather than pure raw materials alone. Thus, while Nigeria will enjoy sustainable and profitable economic relationship with China by increasing the value-added of its exported mineral resources to China as suggested, it is equally relevant for it to effectively manage the importation of Chinese products to avoid ‘killing’ growing local infant industries that dominate the small and medium scale sector in the Nigeria. Conclusively, Chinese investments can be found in a wide variety of sectors, including so-called fragile states and projects that Western investors have seemingly deemed too risky, the willingness of Chinese expatriates to accept the same living conditions offered to local workers should be seen as an opportunity rather than a threat. Finally, China-Nigeria: the future as foretold by Goldman Sachs, that the two nations are headed in the same direction but different destinations, China will be at the zenith of the world economy while Nigeria will be seated at the helm of a continental economy, Africa in 2050.

References Newsgd.com “Chinese, Nigerian Presidents agree to Promote Strategic Partnership” Accessed 10 December, 2012 from http://www.newsgd.com/specials/huvisitfivenations06/huvisitfivenations06news/200604270017.ht m [2] The Economists, China’s Population: The Most Surprising Demographic Crises, May 2011 Accessed 20 December, 2012 from http://www.economist.com node/18651512/ http://en.wikipedia.org/wiki/list_of countries _by population. [3] Abiodun S., BANKOLE, E. Olawale OGUNKOLA & Adeolu ADEWUYI, China-Nigeria Economic Relations: Scoping Studies on China-Africa Relations, Trade Policy Research and Training Program (TPRTP) Ibadan, Nigeria, 2008. [4] Geohive, Global Statistics/Population Statistics, 27 November, 2012, Retrieved from http://www.geohive.com/ [5] Goldman Sachs, How Solid are the BRICs? Global Economics Papers No 134, 2005, p.8 retrieved from http://www.goldmansachs.com/our-thinking/topics/brics/brics-reports-pdfs/how-solid.pdf on 4 Dec. 2012 [6] Helen Chapin metz, ed Nigeria: A Country Study, Washington GPO for the library of Congress, 1991 Retrieved 30 Nov.2012 from www.countrystudies.us/nigeria/80.htm. [7] Utomi, P., China and Nigeria. Washington, Center for Strategic and International Studies, 2008.pp. 42-44 [8] Henry, S. Imperial Japanese Navy Aces 1937-1945, Osprey Publishing, August 28, 1998, pp 6-8 [9] Andrew, J. Nathan, China’s Foreign Policy: The Historical Legacy and the Current Challenge. The Great wall and the Empty Fortress: China’s Search for Security (New York: W.W Norton, 1997). Retrieved 1 December 2012 from http://afe.easia.columbia.edu /special/china_1950_foreign_policy.htm [10] Ibid [11] Bukarambe B, Nigeria-China Relations: The Unacknowledged Sino-dynamics: in Ogwu, (ed), New Horizons for Nigeria in World affairs, Lagos: Nigeria Institute of International Affairs 2005, p 235 [1]

123

[12] Ibid p.236 [13] Ibid p.240 [14] Kaplinsky, R., McCormick D & M Morris, The Impact of China on Sub-Saharan Africa, London: DFID, 2006, p.6 [15] Bbc news online, “China Pledges $ 20 Credit for Africa at Summit” Retrieved 28 December, 2012 from www.bbc.co.uk/news/world-asiachina-18897451 [16] Margaret Egbula & Qi Zheng, China and Nigeria: A Powerful South-South Alliance, Sahel and West Africa club secretariat, 2011, p. 6 [17] Ibid p. 8 [18] Markusen J, “The Boundaries of Multinational Enterprises and the Theory of International Trade” Journal of Economic Perspectives 9: 1995, pp. 169-89 [19] Aitken, B.J., and Harrison, A., “Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela” American Economic Review 89: (1999) 605-618 [20] Nargiza Salidjanova, Policy Analyst for Economic and Trade Issues, Going Out: An Overview of China’s Outward Foreign Direct Investment, 2011, p 1 Retrieved 21 Nov. 2012 from http://www.uscc.gov/researchpapers/2011/GoingOut.pdf [21] Leonard K. Cheng & Zihui Ma, “China’s Outward FDI: Past and Future,” in Proceedings of the NBER (National Bureau of Economic Research) Conference on China’s Growing Role in World Trade (Chicago: University of Chicago Press, 2007, p. 5. http://nber15.nber.org/books_in_progress/china07/cwt07/cheng.pdf. [22] Utomi, P, China and Nigeria. Washington, Center for Strategic and International Studies, 2008.pp. 42-44 Retrieved 10 November, 2011, from, http://www.eia.doe.gov. [23] Cindy H, China’s Oil Rush in Africa: Energy Security July 2006 p 10, Retrieved 24 Nov. 2012 from http://www.iags.org/chinainafrica.pdf [24] Retrieved 10, November, 2011 from http://www.rigzone.com [25] Alabi, G A, ‘Telecommunications in Nigeria’, University of Pennsylvania African Studies Centre, March 1996, Retrieved 25 July 2012 from http://www.africa.upenn.edu [26] Rafeeat Aliyu, Chinese and Indian Investment in the African Telecoms Sector, Consultancy Africa Intelligence, 2011, pp. 1-2 [27] Ibid p. 2 [28] Contact Rafeeat Aliyu through Africa Intelligence’s Asia Dimension asia.dimension@consultancyafrica.com [29] Gregory Mthembu-Salter, Elephants, Ants and Superpowers: Nigeria’s Relations with China. South African Institute of International Affairs: African Perspectives’ Global insights, September 2009, p. 17 [30] Huawei website http://www.huawei.com/africa/en/catalog.do?id=312 Accessed on 26 November 2012 [31] Gregory Mthembu-Salter, Elephants, Ants and Superpowers: Nigeria’s Relations with China. South African Institute of International Affairs: African Perspectives’ Global insights, September 2009, p. 17 [32] Bello W, “China Eyes Africa: The New Imperialism? Multinational Monitor, Vol. 28 No.1, 2007, pp.23

124

B281 EXCHANGE MARKET PRESSURE: EMPIRICAL EVIDENCE FROM MALAYSIA AND SINGAPORE Evan LAU, Jenny YONG and Venus Khim-Sen LIEW Department of Economics, Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS), 94300 Kota Samarahan, Sarawak, Malaysia.

Abstract Rapid progress of globalization and financial integrations tend to expose a country to the incarnation of virulent financial crises which will lead to the buffer of foreign exchange reserves and exchange rate volatility. By applying the concept of exchange market pressure (EMP), this paper is undertaking the construction of EMP index to capture the extensiveness of pressure on exchange market and also to discover the determinants behind EMP in Malaysia and Singapore. The major findings of this paper show that the calculated EMP value displayed an extreme pressure on Ringgit Malaysia and Singapore dollar during the 1997 and 2008 crises. Besides that, the determinants of EMP are found to be significant and there is a long-run relationship existed between the variables and EMP. Keywords: Exchange Market Pressure, Currency crises, Reserves, Malaysia, Singapore. JEL classification: F30, F31, F33, C3

Introduction For the past two decades, East Asia countries have exhibit large exchange rate fluctuations especially in the late 1990s where we witnessed the manifestation of Asian financial crisis in mid-1997 which left huge impact on several large Asian economies like Thailand, Malaysia, Philippines, Indonesia, and Republic of Korea. Over a three-month period between July and October 1997, the baht fell nearly 40 per cent, the Malaysian ringgit and Philippine peso by about 27 per cent, the Indonesian rupiah by about 40 per cent and the Korean won approximately 35 per cent against the United States dollar [1]. To recover from this tailspin, Thailand, Indonesia and South Korea accepted International Monetary Fund (IMF)’s intervention. They alleged that the IMF’s rescue packages were appropriate for the countries whose problems were caused by public sector debts and government spending, but in contrast the problems were originated from the private sector [2]. As a result, these Asian countries were pushed into a deeper recession where Thailand, Indonesia and South Korea experienced exceptionally sharp reductions in economic activity, and the subsequent recovery was essentially facilitated by a combination of devaluation-induced export increases and some fiscal expansion, including what was enabled by the Miyazawa [3]. By contrast, Malaysian government declined IMF’s help by executing its own capital controls permissible to prevent further capital flight during its fiscal stimulus 22 which led to miraculously quick economic recovery. The Asian financial crisis has indeed triggered large and adverse economic shock to the Asian nation in which small open economy like Singapore23 with no exception were not spare from the contagion effects due to its close integration with the regional economies24. The recent global financial crisis with its epicentre in the United States has also brought massive ramifications for the world economy when the world’s major economies; United States, the European 

Corresponding Author: Tel: +6082-582430, Fax: +6082-671794, E-mail: lphevan@feb.unimas.my and ygwiex@yahoo.com 22

Fixed the exchange rate at RM3.80 per US$ (a rate that represented a 10 percent appreciation relative to the level at which the ringgit had been trading immediately before the controls), cut interest rates, and embarked on a policy of reflation [4]. 23 From July 1997 to October 1998 the Singapore dollar fell by about 16 per cent against the US$, but appreciated by about 20 per cent against the Ringgit, Baht, and Peso and 60 per cent against Rupiah [5]. 24 [6] argued that Singapore has used the exchange rate and wage instruments effectively during the crisis as its managed exchange rate system allowed it to quickly depreciate the Singapore dollar in response to the loss of its export competitiveness arising from the collapse of the regional currencies.

125

countries25 and Japan encountered the worst economic contraction since World War II. Being small open and export-dependent economies, both Malaysia and Singapore could not avoid the external shock26 of this global turmoil due to strong financial links between Asian and United States. However, both countries are able to cope much better with the recession compared to the bitter experience of the Asian financial crisis since their macroeconomic fundamentals are much healthier as compared to 1997. The past and recent economic and financial crises have underscored the role of exchange rate volatility as a key transmission channel of a financial sector meltdown to a wide spread slowdown in the real sector and the exchange rate volatility has also undermined the ability of monetary authorities and central banks to manage price stability in a country [7]. Empirical evidences based on their monetary policy reaction functions demonstrate that inflation-targeting economies around the globe, including those in Asian, has in fact, paid close attention to the volatilities of the local currencies before making necessary adjustments in their key policy rates [8] [9]. Even today, exchange rate volatility27 is still a major distress for many countries because of the fear of the currency meltdowns as the mending process is long. In such case, several analytical instruments have been introduced to quantify such pressure. One of the notable measurements that have been used widely to capture the extend densities on a currency, is the index exchange market pressure (EMP) 28. Basically, EMP is a combination of information on exchange rate fluctuation, interest rate adjustments and reserve movement which will give us the insight of an economy’s internal and external condition. This monetary model was introduced during the flexible exchange era as a monetary approach to exchange rate determination after the break down of the Bretton Wood 29 system the emphasis shifted to identifying the determinants of exchange rates [10]. With the motivation in place, the primary objective of this study is to analyze the behaviour of EMP in the context of Malaysian and Singaporean economy. Besides that, this paper is aiming to find the determinants behind EMP for both countries. The remainder of this study is structured as follow. Section 2 reviews the relevant literature on the meaning and concepts of exchange market pressure. Section 3 provides the methodology as well as the data utilized in the analysis. The empirical results are presented and discussed in Section 4. Section 5 concludes this study.

Methodology and Data Measuring EMP There are two ways to measure EMP. The first one is based on [11] seminal contribution, measures EMP as a weighted sum of changes in foreign reserves and exchange rate changes. The precision weights used in this measure are model dependent. A second approach introduced by [12] 30, argued that dependency on a particular model was an undesirable feature for the EMP index. Hence, a model independent EMP measure is calculated based on the channels through which EMP is relieved by including the interest rate channel unlike the first approach. We utilise the EMP measurement used by [13]31 for this study. We calculate EMP as follows:

EMP   (d log NEER)   (d log TBR)   (d log IR )

25

(1)

A recent paper by [14] quantifying and describe the genesis of a doomsday scenario of the euro area. They found that any collapse of the euro zone would do significant damage to the European Union’s international position and influence. 26 They faced major challenges as falling commodities prices, reductions in external financial inflows, drop in stock market prices, reduction in export earnings and increasing unemployment [15]. 27 A sudden rise in exchange rate volatility has become a major problem for many countries because weak currencies will force financial institutions and their clients into debilitating insolvencies [16]. 28 [11] introduced a monetary model which was designed to devise an index of the excess demand for money that must be relieved by either exchange rate or reserve changes to keep the money market in equilibrium. 29 The Bretton Woods system was an international monetary framework of fixed exchange rates after World War II and ended on August 15, 1971, when President Richard Nixon ended trading of gold at the fixed price of $35/ounce. At that point for the first time in history, formal links between the major world currencies and real commodities were severed. 30 [12] extended the [11] model by combining the three components (exchange rate, international reserves and interest rate) into a single index. This single measure becomes an advantage as it is model independent and is also apposite across a wide variety of countries. 31 [13] utilised the EMP measure developed by [20].

126

where NEER, nominal effective exchange rate, TBR, treasury bill rate (short run interest rate) and IR, international reserves. According to [20] the weight α, β, and μ be calculated by corresponding ratios of one over the standard deviation of each variable divided by the sum of all three ratios. For example, the weight for NEER of model independent can be obtained as below:



1 / SD d log NEER

( 2)

1 / SD d log NEER  1 / SD d log TBR  1 / SD d log IR

Empirical Model

EMP  f (CPI , GDP, M , DI , FI )

(3)

Based on the function above, exchange market pressure (EMP) is a function of domestic consumer price index (CPI), gross domestic product (GDP), money (M), domestic interest rate (DI) and foreign interest rate (FI). Data Sources All the variables are quarterly data (in millions of US dollar) over the period 1994:Q3 - 2010:Q3 were obtained from International Financial Statistics (IFS) of the International Monetary Fund (IMF).

Empirical Results Basic Trends and Statistical Properties of the EMP indices Malaysia

Singapore 2.95 2.90 2.85 2.80

2.70

1993:Q2 1994:Q2 1995:Q2 1996:Q2 1997:Q2 1998:Q2 1999:Q2 2000:Q2 2001:Q2 2002:Q2 2003:Q2 2004:Q2 2005:Q2 2006:Q2 2007:Q2 2008:Q2 2009:Q2 2010:Q2

2.75

Figure 1: EMP Indices The constructed indices of EMP are shown in Figure 1. It is clear that Malaysian Ringgit and Singapore dollar are under selling pressure since the EMP index denote positive figure. Prior to mid-1997 and mid-1998, both Malaysia and Singapore’s EMP reached their highest peak of selling pressure 32 at 2.37 percent and 2.94 percent respectively. The substantial increase in Malaysia’s EMP value is apparently due to contagious effect of the 1997 Asian financial crisis where its exchange rate devalued cause financial institutions to suffer large capital losses. Same goes for Singapore, as its EMP index marked the highest value due to the close integration with these regional economies like Malaysia, Thailand, South Korea, and Indonesia. After 1998, the EMP value for Malaysia became relative stable as it gradually goes down due to the regulation of capital flow in preventing further capital flight by fixing the exchange rate at RM3.80 per US dollar. Meanwhile, in response to a weaker competitive position vis-à-vis its neighbours, Monetary

32

Currency or market is gravely under pressure which induced apical devaluation of domestic currency.

127

Authority of Singapore (MAS) 33 took action by depreciate the Singapore dollar against the US dollar to maintain its competitiveness with its neighbours [6]. As a result, Singapore’s EMP gradually goes down after 1998. However in 2001, Singapore EMP index went upward due to the unprecedented anti-government rally but later went downward in 2002 because of the free trade agreement (FTA) signed by Singapore and Japan. Nonetheless, it is clear that during the third quarter of 2008, the EMP series of Singapore were 0.97 percent higher than Malaysia’s (the period of Lehman Brothers’ collapse) because of Singapore and Japan’s FTA. As both countries show depressing performance during the full-blown recession in mid-2008, their government took action by imposing fiscal stimulus packages which resulted a sharp decline of EMP value in mid-2009 for both Malaysia34 and Singapore35. Unit Root and Stationary Testing As the preliminary to cointegration test, it is essential for all variables under the research to be a stationary time series. For this purpose, standard unit root tests were conducted for each series, first on levels and then first differences. The ADF test failed to reject while KPSS test strongly reject the I (0) null at 95 percent confidence level which indicated that these time series data were non-stationary in level. The results of ADF strongly rejects the I(0) null at 95 percent confidence level while the KPSS statistics further strengthened this conclusion by failing to reject the null hypothesis at the usual confidence levels. Thus, univariate unit root tests results are consistent with the notion that all variables are nonstationary in level are stationary in first difference. Then the Johansen and Juselius cointegration test can be performed. These results are not presented here, but are made available upon request. Cointegration Result The [17] cointegration test is applied in analysing the long-run relationship between the non-stationary variables that are cointegrated into the same order. The trace and maximal eigenvalue statistics are used to determine the number of cointegrating vector (r) that exists in the series.

Null

Alternative

Table 1: Cointegration test results Trace 95% C.V λmax Unadjusted Value Unadjusted Value

95% C.V

Malaysia (k = 1, r = 1) r=0 r=1 122.2165* 95.7537 61.5897* 40.0776 rR-5(t)>RSI-5(t)>AR-5(t). Step 5: Calculate the OWA weights From Step3, we know the number of variable, and OWA weights are generated by the algorithm of OWA. The OWA weights (number of variable =4 and α = .5 ~ 1.0). Step 6: Calculate the weighted variable value by OWA operator From Step 4, variables ordering are determined. For computing the weighted variable value, we multiply the variables values by the corresponding OWA weights. Step 7: Train Elman NN forecast model In this step, we set one hidden-layer hyperbolic tangent sigmoid transfer function (tansig) and the numbers of neurons are 1 to 30 and a single log sigmoid transfer function (logsig) output layer. For each training step, the error is backpropagated to find gradients of errors for each weight and bias. This paper sets epoch as 10000 and error converges is 0.00001 for the training stopping criterion (the training model is executed for the predetermined fixed number (10000) of iterations unless it terminates while the training error converges). Step 8: Generate forecasts from Elman NN forecast model The parameters for Elman NN model are determined when the stopping criterion is reach from Step 7, and then the generated models are used to forecast the corresponding testing dataset. With the rules and determined parameters, the forecast for the future stock index at time, t+1, can be obtained by the forecasting model. Step 9: Performance evaluation Root Mean Square Error (RMSE) is employed as performance indicator for the proposed model, which is defined by Equation

295

Table 1 The performance comparisons for three forecasting models (TAIEX) * The best performance among three models 1997 154

1998 134

Year 1999 120

2000 176

2001 148

165

164

145

191

167

Elman NN Proposed model(α=0.5)

104 103*

85 78*

142 119*

114 108*

73 62*

Proposed model(α=0.6)

121

106

134

136

95

Proposed model(α=0.7) Proposed model(α=0.8) Proposed model(α=0.9) Proposed model(α=1)

118 121 119 170

88 114 104 143

131 124 126 170

143 153 113 272

81 82 106 154

Model Chen’s model Yu’s model

Model verification To verify proposed model, nine-year period of the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), from 1997 to 2001, is selected from Taiwan Stock Exchange Corporation (TWSE) http://www.twse.com.tw/. One-year period of stock data is defined as one unit of experimental dataset. Ten-month period of the stock data, from January to October, is defined as training data and the remaining period, from November and December, is used for testing (Chen [36], Yu [37]). After the experiments, we generate 54 forecasting performances under different α (from 0.5 to 1, step=0.1) for the 9 testing sub-datasets. To examine the superior of the proposed model, two fuzzy time-series models, Chen [36] and Yu [37] models and Elman NN model (with seven features, without feature selection), are used as comparison model, and the performance data are listed in the Table 4. From Table 1, it is shown that proposed model (α=0 .5) outperforms the listing models in RMSE.

Conclusions This paper has proposed a new hybrid model, which employs technical indicators as forecasting factors and four methods (correlation matrix, feature selection (stepwise regression), OWA weight, and Elman NN) in forecasting processes, to promote prediction performance in stock market. Additionally, from the forecasting model generated by this paper the, two advantages are discovered: (1)Reasonable weighted variables produced by multiplying the corresponding OWA weight can present the relative contribution of each independent variable to predicting the dependent variable. (2)The selected technical indicators based on objective technical indicators selection method and feature selection rather than subjective human judgments can provide stock investors objective suggestions (forecasts) to make decisions. In the future works, the model can be verified by other stock market such as China, Japan and Hong Kong. Besides, there are two suggested approaches to refine the proposed model to improve forecasting performance: (1) validate the generated model by financial experts or stock analysts to improve accuracy; and (2) apply other technical indicators selection methods in preprocessing phase to evaluate the performance variation.

Reference If you have a bibliography, it should include only those references cited in the text of this paper. Therefore, it should be referred to as “References”. References should be listed at the end of the paper. Entries should be numbered in the order of appearance and should be with the numbers placed in brackets. 296

[1] [2]

[3] [4] [5] [6] [7]

[8] [9] [10]

[11] [12] [13] [14] [15]

[16] [17] [18] [19]

[20] [21]

[22] [23] [24] [25] [26] [27] [28]

Tanaka-Yamawaki M., Tokuoka S., Adaptive use of technical indicators for the prediction of intra-day stock prices Physica A, 2007, 383, pp.125-133. Chi S. C., Peng W. L., Wu P. T., , & Yu M.W., The study on the relationship among technical indicators and the development of stock index prediction system, Fuzzy Information Processing Society, 2003, pp.291-296. Engle R. F., Autoregressive conditional heteroscedasticity with estimator of the variance of United Kingdom inflation. Econometrica, 1982, 50(4) pp.987-1008. Bollerslev T., Generalized autoregressive conditional heteroscedasticity. Journal of Econometrics, 1986, 31, pp.307-327. Box G., Jenkins G., Time series analysis: Forecasting and control, San Francisco: Holden-Day (1976). Zadeh L.A.., Fuzzy Logic, Neural Networks, and soft computing, communications of the ACM, 1994,37, pp.77-84. Kimoto T., Asakawa K., Yoda M., & Takeoka M.. Stock market prediction system with modular neural network. In Proceedings of the international joint conference on neural networks, San Diego, California 1990, 1-6 Huarng,K., H.K. Yu, The application of neural networks to forecast fuzzy time series, Physica A, 2006, 363, pp.481-491. Roh T. H., Forecasting the volatility of stock price index, Expert Systems with Applications, 2007, 33, pp.916-922 Seker S., Ayaz E., & Turkcan E., Elman’s recurrent neural network applications to condition monitoring in nuclear power plant and rotating machinery, Engineering Applications of Artificial Intelligence, 2003,16, pp.647-656 http://www.twse.com.tw/ M.J. Pring, (1991). Technical Analysis, New York. Allen F., & Karalainen R. Using Genetic Algorithms to Find Technical Trading Rules, Journal of Financial Economics, 1999, 51 pp.245-271. M. E. Azo,. Neural Network Time Series Forecasting of Financial Markets, Wiley, New York (1994). William L., Russell P., & James M. R.. Forecasting the NYSE composite index with technical analysis, pattern recognizer, neural network, and genetic algorithm: a case study in romantic decision support, Decision Support Systems, 2002, 32, pp.361-377. Yager R.R., ‘On ordered weighted averaging aggregation operators in multi-criteria decision making’, IEEE Transactions System Man Cybernetics, 1988, 18, pp.183-190. Fuller R., Majlender P., ‘An analytic approach for obtaining maximal entropy OWA operator weights’, Fuzzy Sets and Systems, 2001, 124, pp.53-57. Ahn B.S., ‘On the Properties of OWA Operator Weights Functions with Constant Level of Orness’, IEEE Transactions on Fuzzy Systems, 2006, 14, pp.511-515. Wang X., & Paliwal K.K., ‘Feature extraction and dimensionality reduction algorithms and their applications in vowel recognition’, Pattern Recognition, Journal of The Pattern Recognition Society, 2003,36, pp.2429-2439. Newton S.C., Pemmaraju S., & Mitra S., ‘Adaptive Fuzzy Leader Clustering of Complex Data Sets In Pattern Recognition’, IEEE Transactions on Neural Networks, 1992, 3(5) pp.794-800. O’Hagan M., ‘Aggregating template rule antecedents in real-time expert systems with fuzzy set logic’. In: Proc 22nd Annual IEEE Asilomar Conference on Signals, Systems and Computers. Pacific Grove, CA: IEEE and Maple Press; 1988, 681-689. Yager R.R., ‘Connectives and Quantifiers in Fuzzy Sets’, Fuzzy Sets System, 1991, 40, pp. 39-75. Yager R.R., ‘On a semantics for neural networks based on fuzzy quantifiers’, International Journal of Intelligence System, 1991, 7, pp.765-786. Yager R.R., ‘A Note on Weighted Queries in Information Retrieval Systems’, Journal of America Society for Information Science, 1987, 28, pp.23-24. Herrera F., , Herrera-Viedma E., & Verdegay J.L., ‘A Model of Consensus In group decision making under linguistic assessments’, Fuzzy Sets System, 1996, 78, pp.73-87. Torra V., 2004, ‘OWA operators in data modeling and reidentification’, IEEE Transactions on Fuzzy Systems, 12(5), pp. 652-660. Draper N.R., & Smith H, Applied Regression Analysis. 2d Edition ed., New York: John Wiley & Sons, Inc (1981). McClave J.T., G.Benson P., T. Sincich, Statistics for business and economics. 9th ed ed.: Prentice 297

Hall (2005). [29] Liou C.Y., Backbone structure of hairy memory, in: The 16th International Conference on Artificial Neural Networks, ICANN, Lecture Notes in Computer Science, Springer, Berlin, 4131, Part I, 2006, pp.688-697. [30] Liou C.Y., & Lin S.L., Finite memory loading in hairy neurons, Natural Comput. (2006)5 pp.15-42. [31] Rumelhart D.E., & McClelland J.L., (Eds.) 1986, Parallel Distributed Processing: Explorations in the Microstructure of Cognition: Foundations, MIT Press,Cambridge, MA. [32] Kim M. J., Min S. H., & Han I., An evolutionary approach to the combination of multiple classifiers to predict a stock price index, Expert Systems with Applications, 2006, 31, pp.241-247. [33] Richard J. B., Julie R. D., Technical market indicators: analysis & performance, New York :John Wiley (1999). [34] Croxton F. E., , Cowden D. J., , & Klein S., Applied general statistics (1899) [35] C. H. Cheng, , T. L. Chen, & L.Y. Wei, A hybrid model based on rough sets theory and genetic algorithms for stock price forecasting Information Sciences, 2010,180, (9), pp.1610-1629. [36] Chen S. M.,. Forecasting enrollments based on fuzzy time-series, Fuzzy Sets Systems, 1996, 81 pp.311-319. [37] Yu H.K., , Weighted fuzzy time-series models for TAIEX forecasting, Physica A. 2005, 349, pp. 609-624. [38] Plummer, J. T., The concept and application of life style segmentation, Journal of Marketing, 1974, pp. 33-37. [39] Hsu, J. L. and Chang, K. M., Purchase of clothing and its linkage to family communication and lifestyles among young adults, Journal of Fashion Marketing and Management, 2008, pp. 147-151.

298

B116 Nonlinear Behavior of the US Stock Price-Dividend: Evidence from Threshold Unit Root Tests Tsung-Pao Wu* Feng Chia University, PhD Program in Finance, Taichung, TAIWAN E-mail:p9850573@fcu.edu.tw

Abstract This paper investigates the behavior of US stock price–dividend relation over the period 1871:01 to 2012:03 using a two-regime Threshold Autoregressive (TAR) model with an autoregressive unit root developed by Caner and Hansen [3] which allows the simultaneously testing of nonlinearity and non-stationary. Our findings indicate that the US stock price–dividend is a nonlinear series that is characterized by a unit root process in a particular month. The stock price–dividend ratio shows a decrease of more than 7.17% between the previous year and the fourth month before. Keywords: Threshold autoregressive (TAR); US stock price-dividend; Regime change

Introduction Stock market efficiency is among the most popular research topic in the international financial literature. One of the most actively investigated financial phenomena of the last decade has been the behavior of aggregate US stock prices. Stock market efficiency implies that prices respond quickly and accurately to relevant information. Over the last decades, empirical research on the behaviour of stock prices has been unprecedented since the first studies by Fama and French [8], Lo and MacKinlay [20], and Poterba and Summers [31]. The testing for mean reversion in stock prices, i.e., whether or not stock prices are characterized by a unit root, has gained momentum as it has implications for the efficient market hypothesis, which is based on the premise that returns of a stock market are unpredictable from previous price changes. If the efficient market hypothesis holds, then stock prices should be characterized by a unit root. The other importance of testing for mean reversion in stock prices is that if a unit root process is found, than this implies that volatility in stock markets will increase in the long run without bound, which has implications for investment decisions and strategies. There is a large body of the literature that investigates the efficient market hypothesis using a variety of methodologies with mixed results. Many studies have found them indexes are not characterized by a unit root (see, inter alia [36], [20], [31], [11], [5], [32],and [24]), while others have found stock indexes to be a unit root process (see, inter alia [6], [15], [21], [18], [25], [26], [27], [22], [23], and [29]). Additionally, using the influence of the linear Present Value (PV) model to explain the behavior of aggregate US stock prices has also been actively investigated. The linear PV model is more tractable than its nonlinear version, and this accounts for its use in empirical work. Froot and Obstfeld [9] proposed a standard PV model with intrinsic bubbles where speculation by rational investors would create threshold effects in the stock price–dividend relation. As discussed by Campbell et al. [2], the linear PV model is based on the assumption of constant expected stock returns. Recently, empirical studies that investigate the presence of nonlinearities in the stock price–dividend relation include that by Kanas [16], who provides some empirical evidence of nonlinearities in the PV model using US annual data for 1871–1999 and follows the procedure for nonlinear cointegration suggested by Granger and Hallman [10]. Later, Kanas and Genius [17] used monthly data for the period 1978:1 to 2002:5 and three nonlinear nonparametric techniques, obtaining evidence on the existence of nonlinearities in the stock price–dividend relation for the United Kingdom, the United States, Japan, and Germany. In sum, according to several empirical studies, the linear PV model fails to explain the behaviour of stock prices in the long run (e.g, [1], [4], [19], [7], [17], and the references therein). The present study examines whether this failure of the linear PV model can be attributed to nonlinearities in the stock price–dividend relation. 299

This article empirically tests whether there have been nonlinearities in the stock price–dividend relation for the US market. The data is annual, covering the years 1871:01 to 2012:03. We employ the Threshold Autoregressive (TAR) models that allow endogenously derived threshold effects in the evolution of the US stock price–dividend ratio. Nonlinearity is tested using the technique developed by Caner and Hansen [3] for a threshold whose location is unknown a priori. In this way, a mean-reverting dynamic behaviour of the US stock price–dividend ratio should be expected once such a threshold is reached. The paper is organized as follows: Data is presented and summarized in Section II, econometric methodology is outlined in Section III, empirical results are given in Section IV, and conclusions are in Section V.

Data We analyze the US Standard and Poor’s 500 stock price index and dividend data over the period of 1871:01 to 2012:03; the data was collected from Professor Shiller’s Web site: http://aida.econ.yale. edu/~shiller. The stock price index is the January values of the Standard & Poor’s 500 Composite Stock Price index.

Econometric Methodology Caner and Hansen (2001) two regime TAR model Hansen ([12], [13], and [14]) and Caner and Hansen [3] present some new results for the TAR model introduced by Tong ([33], [34], and [35]). In particular, they develop new tests for threshold effects, estimate the threshold parameter, and construct asymptotic confidence intervals for the threshold parameter. More specifically, they consider a two-regime TAR (k) model with an autoregressive unit root and two regimes, 1 and  2 :









yt  1xt 1I Zt 1     2 xt 1I Zt 1     t with x   y ,1, y ,...,y  , t 1

t 1

t 1

(1) (2)

t k

where y is the logarithm of the US stock price–dividend index for t = 1, 2, . . . , T;  t is an i.i.d. error; I (expression) is the indicator function that equals to 1 if the expression in the parentheses is true and 0 otherwise; Z t  yt  yt m for some m  1 is the threshold variable; and k  1 is the autoregressive order. The variable Z t has clear financial meaning when acting as return at the time horizon of m months. The threshold parameter



is unknown and represents the level of the variable

yt that

triggers a regime change, if any. The components of 1 and  2 can be partitioned as follows:

 1    1   1     1

 2    2   2     2 ,

and

(3)

where 1 and  2 are slope coefficients on yt 1 , 1 and  2 are scalar intercepts, and 1 and

 2 are 1 × k vectors containing the slope coefficients on the dynamic regressors  yt 1,...,yt  k  in the

two regimes. In order to calibrate the TAR model, the concentrated least squares approach is usually utilized. The regression procedure is carried out for each value of m. The value of  is taken from a compact interval, [ 1 , 2 ], in which 1 and 2 are determined by the following constraints:

 PrZ t  1   1  PrZ t  2    2 ,

where 0 CT (1) Where P is the probability of winning the case, U is the Utility of the plaintiff in case he wins in the court and CT the total costs he has to bear if he decides to bring the case to the court. In private litigation, most of the times it is the plaintiff that has to evaluate P, bears most of the costs of the litigations and enjoy most of the benefits in case he prevails in the court; so it is the plaintiff to decide whether to start the dispute. It is surely true that lawyers play an active role in helping the plaintiff assessing each one of these parameters and it is also true that his incentives are not necessarily aligned to the ones of the plaintiff. The principal agent problem between clients and lawyers has been extensively debated in the literature and it is surely not an irrelevant issue [27]. Nevertheless, it is still the plaintiff who decides if the dispute should be started, who bears the costs and enjoys the benefits, no matter how much lawyers might alter his perception of the dispute. The situation drastically changes in case of international disputes. It is the national governments who decide whether to start a dispute. The citizens of the countries involved and partially all the WTO member countries are the ones who bear the costs of litigation, while the interested firms in the complaining country are those who enjoy the direct benefits. In this case, the utility (U) is no longer equal to the real utility of the plaintiff or claimant. Instead it depends on the perceived utility of the national authority and this is greatly influenced by the importance of the interest group affected. Moreover, the costs are not directly borne by the party who enjoys the potential benefits from a dispute; hence the incentives are altered also for the firms. It is straightforward that interest groups play a primary role in selecting which cases will be litigated and which duties will be imposed, potentially generating a greater departure from the efficient outcome. Thus, it is not surprising that one of the major concerns regarding antidumping measures has always been to keep under control and to limit the action of interest groups. The role of interest groups in developing and developed countries It has been argued in the previous section that the perception of the government might be altered by the strength of the interest groups involved. Another big issue is the complexity of the antidumping investigations as each investigation requires a deep understanding of the industry and of the firms involved in the proceedings. In other words, there is a severe asymmetric information problem, since the firms involved will always be better informed than the national authorities and can use their private information to their advantage. However, this is not the main problem created by the complex nature of the problem; as Shaffer correctly argues, the best way to isolate the authorities from the action of the interest groups is to increase the awareness of the media and the public on trade issues[26]. A perfect 374

example of a successful achievement through this strategy is Brazil, in which the public attention on trade issues is incredibly high and the general public perceives such issues as extremely relevant. As a result, Brazil has an impressive number of disputes started and an even more impressive record of disputes won, which testifies how authorities have been able to focus their attention on the right issues. However, it should not be assumed that the strategy adopted by Brazil is easily replicable. In fact, there are many factors united that allowed Brazil to achieve such results. The intricacies of WTO cases make it very complex to understand for average persons, while in turn, makes it very easy for the media to manipulate the public opinion, provided that people are interested in trade issues enough to be manipulated which is not always the case. A prerequisite in order to adopt such a strategy is again the knowledge available within a country. The problem is even more severe because it is not limited to a creation of specialized experts who can directly handle the case. On the contrary, it is necessary that an adequate portion of the public is aware of the importance of trade issues. If the public awareness holds such a vital role in disciplining the action of the authorities, it is reasonable to assume that countries with a better educational level should perform better in this regard. It is not coincidental that Brazil has heavily invested in its education system. It is surely possible to claim EU and US investigation procedure guarantees a better level of participation, when compared to the many developing countries, yet it is unlikely that changing the procedure itself would really have a serious impact in limiting the role of interest groups and improving the efficiency and accountability of the authorities. Until there is some form of control on the action of the authorities and especially of the interest groups the letter of the law cannot be expected to be effective. It seems that the path developing countries should take in order to lessen the gap with developed countries, is to invest in education and human capital, and to increase public awareness on trade issues more than investing resources to improve their antidumping regulations.

Cumulation Analysis in Injury Determination Cumulation analysis in injury determination and lesser duty rule are probably among most problematic issues that are of concern among economists and law and economics scholars. This and the following section will explore economic rationales behind these rules in developing and developed countries to show how a change in the goal of antidumping could ameliorate some related issues. What is cumulation? It has been claimed that “a domestic industry that suffers material injury by reason of 100,000 tons of unfairly traded imports from a single country is injured to the same degree by 20,000 tons of unfairly traded imports from each of five different countries”. This so called “hammering effect” is probably the main reason behind the introduction of what has been called the most significant change in injury requirement brought about by the Uruguay Round Code: cumulation or cumulative assessment. The practice of cumulation actually started long before the Uruguay Round, but the question of its legitimacy was brought under the Tokyo round; hence it was far from being so widespread back then. Nowadays it has become the norm especially in the EU, US, Canada and Australia. Cumulation allows investigating authorities to consider the combined effect of the aggregate imports from all sources under investigation in the evaluation of material injury. It can be done by cumulating the quantities imported from different countries in order to determine the total injury inflicted by them on the domestic industry. Proponents of this method would say that the total dumped import as a whole, i.e. collectively from every country exporting products at dumped prices, altogether causes the same degree of injury to the domestic industry as the same amount of dumped imports from a single large exporter, it therefore completely makes sense to cumulate the injury effect from all countries involved, regardless of the dumping margin and import share of each country as long as they are above de minimis and not negligible respectively. Critics of this cumulation analysis argue that this method distorts the market as it renders inaccurate injurious effect caused by dumping. The key issue here is the “super-additive effect” which was first mentioned by Hansen and Prusa [13]. In short, even given the same total market share, cumulation would lead to more affirmative injury decisions if more countries are involved. According to study on EU antidumping cases by Tharakan et al. [30], cumulation increases the probability of a positive injury 375

finding by the EU authority about 42%; while around 36% of cases in their study where cumulation was used would have resulted in negative findings if cumulation had not been used. [30] Cumulation and super-additive effect According to the econometric study by Hansen and Prusa, cumulation leads to a very counter-intuitive outcome [30]; in fact, it would be reasonable to imagine that, holding constant the total quantity imported, there would be less affirmative findings of injury, if such quantity is being imported from many smaller countries with small import shares instead of a single large country, either because it is very likely to be more expensive to file a case against many countries or because authorities should be less prone to penalize small countries. Nevertheless, the reality differs dramatically from this picture; apparently holding market share constant, the number of affirmative rulings on injury rapidly increases when more countries are involved. In other words, if there is a single firm from a single country importing 40% of the products consumed on the market, there are fewer chances that an antidumping duty will be approved than in case there are two firms from two different countries that cumulatively cover 40% of the market share. This finding has very interesting implications that apparently have gone unnoticed. In order to understand more of how and whether the super-additive effect identified by Hansen and Prusa would have different effects for developed countries and developing countries as users of antidumping measures, further analysis of their work will be done in this part. First of all, it might be useful to partially replicate their study in order to be able to properly enlighten it. However, some approximations will be made in the process as the whole data set used by the authors is not available. Specifically, the curves describing the relationship between market shares and probabilities of a positive finding have been approximated by lines. As we do not aim at identifying the exact value of the parameters, but only to show the direction of the patterns, the approximation does not represent a big issue. The Mathematical representation of the phenomenon is presented in Appendix I From their study it can be inferred the strength of the super-additive effect and how greatly it can increase the protectionism level of a country without making much noise, especially when the country imports its products from a wide range of countries. It should however be noted that such picture describes perfectly well a situation in developed countries that use cumulative assessment, while it is not necessarily a good representation of developing countries. Since developing countries usually have less trading partners, it is straightforward that the super-additive effects will play a much stronger role for developed countries. It is very important to be aware of the hidden consequences of rules like this, if we really want to achieve some balance between developed and developing countries. More importantly, it appears that there is no rational justification for such an apparently widespread behavior of the authorities. Nevertheless, since it has been identified empirically by many scholars, it appears reasonable to assume that it is due to systematic biases of the authorities. Once again, introducing a simple and straightforward goal would allow a better monitoring of the behavior of authorities, limiting the impact of such biases. The lesser the super additive effect will operate, that is to say the lower will be the role played by these biases, the lower will be the extra level of protection that developed countries can enjoy in comparison with developing ones.

Lesser duty rule “Lesser duty rule” is one of the mainly debated issues in negotiations where members’ views vary as reflected in the Chair’s text of WTO Negotiating Groups on Rules on Antidumping and Subsidies (2008). Members’ positions regarding this issue are divided into three groups: (i) supporting inclusion of a mandatory lesser duty rule in the ADA, (ii) opposing the inclusion of such rule in the ADA, and (iii) strongly opposing the lesser duty rule due to impossibility to practically calculate an injury margin. Different views also exist even among members that support the mandatory lesser duty rule; the main concern is the degree of specificity and the extent the rule should prescribe. According to the lesser duty rule, the antidumping duty rate imposed does not have to match the whole dumping margin if a lower duty is enough to remove the injury. It is based on the rationale that antidumping duty is supposed to just offset the injury caused on domestic industry by dumped imports so it should be either calculated from dumping margin or injury margin whichever is lower. Since the ADA does not mandate that antidumping duty should be restricted to the extent of the injury, countries like the US have never introduced the so-called “lesser duty rule”, thus imposing antidumping duty equal to dumping margins, while the EU and some other countries like Thailand have adopted the lesser duty rule. 376

The practical consequence under this rule is that the duty will be the lowest between the dumping margin and the duty necessary to eliminate the injury, usually determined in terms of “injury margin”; hence the average level of protection is likely to be lower under this rule. A great debate has revolved around this rule since it strongly affects the practical outcome of most antidumping investigations and the level of protection that domestic industries enjoy in various countries. Proponents of a mandatory lesser duty provision interpret the antidumping system as one that exists to eliminate damage to domestic workers and firms caused by foreign dumping; it would follow that imposing duties in excess of this would impose burdens on foreign exporters in excess of what the domestic industry needs in order to “right the wrong” . On the other hand, the official US position, as articulated in the U.S. (2005), is that antidumping duties are intended to eliminate dumping, not the economic consequences of dumping. The US negotiating position holds that calculating “injury margins” would create significant new administrative burdens because of the complexity of the calculations. To shed some light on the topic, many economists have tried to model the effect that these two different approaches can have on social welfare; and with very little surprise, from many of these studies it appeared that the US approach of pure dumping margin could give actors incentives that were mostly in line with the goal of maximizing internal welfare. Lesser duty and strategic behavior of firms Criticisms on lesser duty rule have also been made regarding the strategic behavior of firms in response to the rule applied. From a comparative perspective, it is interesting to analyze the model presented by Pauwels et. al.[20] By developing a dynamic model of imperfect competition, the authors draw the conclusion that “the strategic behavior of European firms under European antidumping rules may run in the opposite direction compared to the incentives for US firms provided under the US antidumping rules; US antidumping rules perform better than European rules in terms of domestic welfare and in terms of protecting domestic value added and employment .”[20, p.75] In fact, while a pure dumping protection switches some production from the foreign firms to the domestic firms, the lesser duty rule has a more ambiguous effect. Under the former (pure dumping margin), the domestic firm will increase its production in order to increase the dumping margin, while the foreign firm will lower its production in order to avoid being found of dumping. The total quantity of the product on the market of importing country might increase or decrease depending on the firms’ characteristics and the effects on total welfare are ambiguous. However, this rule reaches its goal in effectively promoting domestic production. Under the latter (lesser duty), it appears that when an antidumping duty equal to the injury margin is expected, the domestic firm will try to increase the level of protection by contracting its output in order to pull up its first-period price and to increase the injury margin, while the foreign firm will again reduce its exports to the EU in order to lower the injury margin found. Therefore there will certainly be less products on the market to the detriment of consumers’ welfare in the importing country [20]. So in brief, it is true that the lesser duty leads to lower margins but according to these critics, it fails in its objective to increase domestic production, while having a certain negative effect on the welfare of the consumers. However, two observations should be noted here. Firstly, it is not as easy to intentionally lower the input as it is to raise it. A firm can easily decide to unilaterally increase its production to lower the prices, but a unilateral reduction in the quantity produced can be very risky as there is no guarantee that the other firms will not react by increasing their quantity produced to increase their market shares. It is thus possible to imagine a scenario of unilateral quantity reduction only if the market is characterized by a monopoly, or a cartel, or at least some form of implicit collusion. Consequently the argument seems to become relevant only if we assume that there are industries characterized by well-organized interest groups behind most antidumping investigations. Once again it becomes very important to control the action of interest group to limit the strategic behavior of firms. It is also important to underline that cartels are considered illegal nearly in every country; hence the coordination among domestic firms should be tacit or hidden. This complicates drastically the issue as it implies that (i) all firms identify the optimal strategy more or less simultaneously, (ii) all firms are confident that their competitors have identified the new optimal strategy as well, and (iii) all firms are confident that their competitors will adapt to the new market condition without trying to steal market shares. In other words, the main assumption seems to be that firms can implicitly coordinate and effectively decide to lower the quantity below the optimum without other firms in the market to take advantage. Such an assumption might not always be realistic, yet considering that interest groups play a great role in antidumping investigations, it is probably not completely wild either. Coordination among firms in particular industries has given birth to protection and such coordination is needed to improve 377

the protection. This might be read as a way to exacerbate the impact of interest groups and concentrate even more protectionism in sectors where there is strong lobbying. Rovegno and Vandenbussche also implicitly express this particular concern of manipulation by firms in their work. [25] Secondly, the original idea behind antidumping law -like behind any other law and regulation that promotes free trade- is to help out trading countries to solve the prisoner dilemma that characterizes the international trade. Most protectionist measures increase the welfare of the countries that adopt them, holding constant the policies adopted by their trading partners. Yet, in reality no country will passively observe its trading partners adopting protectionist measures while freely exporting their products. As it can be seen that the US rule is more protective than the lesser duty rule, it is straightforward that the former is a better approach to maximize the national welfare of the country. There is hardly the need to develop a model on this point as it is obvious that the US approach strengthens the prisoner’s dilemma faced by each trading country. Which rule maximizes the internal welfare of a country is not the question that should be answered. The real issue concerning the lesser duty rule should be what would be the effects on total welfare if every country adopts the US rule as compared to the “EU rule of lesser duty” or, to put it differently, whether a higher level of protection of each country can be beneficial for global welfare. Impact of lesser duty rule on developing and developed countries On the other hand, it is not obvious whether the lesser duty rule will have the same impact on every country that adopts it, considering the country’s different levels of development and the characteristics of its industries. As stated above, it is implicit in the model developed by Pauwels et. al. that the capability of the firms to coordinate their behavior upon different rules plays a vital role, and the chances of succeeding rests unavoidably on their understanding of the dumping mechanism including their expectation of whether lesser duty rule is applied. On this particular point, competence of human capital of firms is an essential factor that would mainly contribute to the firms’ strategic behavior in particular situations. Since a lack of human capital has always been considered one main obstacle on international trade issues for developing countries, it would be realistic to assume that there might not be necessary competence within the firms in developing countries to identify the optimal strategy and to coordinate their behavior accordingly, especially when compared to firms in developed countries. An example on this point perhaps can be seen from the work offered by Francois et. al. on the imbalanced legal resources available to developed and developing countries. [10] The authors construct a proxy based on data gathered by the World Bank to measure the legal capacity of every WTO member, and the difference between developed and developing countries is stunning. According to their proxy, the legal capacity of High Income developing countries is only around 55% of the legal capacity of developed countries. To give a measure of the size of this gap, it suffices to think that legal capacity of Canada is 99,2% of US legal capacity. The gap increases even further if also Middle and Low Income developing countries are taken into account. Additionally, if we look at the issue of lesser duty rule from the opposite angle, as in the eyes of investigating authorities, it is extremely more costly to identify the margin necessary to eliminate the injury, than to simply apply the dumping margin. Developed countries operating on a much larger scale and having much more human capital at their disposal, are in the best position to correctly identify the injury margin. It is therefore incorrect to jump to simplistic conclusions. To claim that the US approach is better to maximize domestic welfare is self-evident, yet it is very likely that it leads to a dead weight loss if we adopt a broader perspective. On the other hand, the EU rule might be better suited to protect the interests of firms operating in developed countries which are much more familiar with the WTO regulations. Once again, behind a rule that appears to be perfectly coherent with the goal of free trade, there are two hidden traps for developing countries. In the first place, the burden imposed on the authorities becomes bigger, as they have also to calculate the injury margin, thus exacerbating their chronicle scarcity of resources. Secondly, firms in developing countries might not be able to enjoy the same level of protection as the ones operating in developed countries because they might not be able to coordinate their behaviors to increase the injury margin. On the other hand, if the real goal of antidumping regulation is made explicit, we believe that lesser duty rule would become less controversial as it would be less complex to apply, being easier to calculate the injury suffered by the firms alone, and the developing countries would not be as much at a disadvantage, given that the strategic behavior by the firms would be limited by an increased transparency. 378

Conclusions As it often happens in a modern society, the technical complexity of antidumping regulation has reached incredible peaks, yet it did not reduce to an acceptable extent the surrounding uncertainty. From the very definition of “like product” to the quantification of injury, the discretion of the authorities still appears to be enormous. Such a large amount of discretion, combined with a regulation that is tailored to protect interest groups, can lead in the long run to a great contraction in the international trade. As it happens just as often, much of this complexity is created by the fact that we no longer remember why such regulations were introduced at the first place. As Cordell Hull openly admitted, antidumping regulation was introduced to protect domestic industries so that the congress could approve a serious liberalization program. Antidumping regulation was never intended to protect consumers or to protect the environment, as there are much better channels to achieve those aims. To introduce these concerns in the analysis not only complicates tremendously the job of the authorities, but also sends an incorrect signal to the general public and allows interest groups to promote protectionism under the shadow of generally approved goals like environmental protection, which has very little to do with dumping. As shown by the issues tackled in this paper, the complexity is already high, without the need to complicate things even further. On the other hand, going back to the origin would simplify every step of the procedure, would greatly reduce the discretion of the authorities and especially would make the whole process extremely more transparent. To claim that certain measures are taken to protect the interests of producers do not imply that public opinion will necessarily disapprove the introduction of any duty. As it has been proven by Brazil, people tend to be sympathetic to domestic producers to protect the workers and the national champions. The pressure applied by the interest groups would not be as strong, since the media and the general public could better monitor the behavior of the authorities, both because antidumping investigations would be less complex and because there would be no veil to hide the real interests pursued. Also lesser duty rule would be less controversial as it would be less complex to apply, being easier to calculate the injury suffered by the firms alone, and the developing countries would not be as much at a disadvantage, given that the strategic behavior by the firms would be limited by an increased transparency. On the other hand, to uncover the real goal of antidumping would not automatically solve every problem, neither it will automatically level the playing field for developing and developed countries.

379

Appendix I From their results it is possible to obtain the following table that shows the relationship between the market shares held by firms under an investigation, the number of countries involved in the investigation and the probability of an affirmative finding of injury by an authority. The values used are taken from the abovementioned paper. Two of them, i.e. the probability of a positive finding when 2 and 5 countries have a 40% market share, have been identified graphically. Since it is necessary to identify the slope of the lines, only two observations were needed.

Number of countries

1 2 5

Total market share 20 40 0.6 0.55 0.72 0.58 0.78

62 0.72

Using basic algebra, it is possible to identify the expression of the three lines that represent respectively the case where one, two and five countries are involved. Where only 1 country is involved: y1 =6/11x1 + 38.18 (2) Where 2 countries are involved: y2 =17/20x2 + 38 (3) Where 3 countries are involved: y3 =x3 + 38 (4) Graphically:

Coherently with the initial assumption, it is possible to observe that the slope of the lines increases as the number of countries involved grows. In fact, in case there is a single country involved in the proceedings, the slope is 6/11; if the same market share is reached by cumulating the imports from two countries, the slope is 17/20; while the slope is equal to 1 if imports from 5 countries are cumulated together. It is important to underline that the slope of the lines indicates the strength of the super-additive effect in each case; a steeper line indicates that cumulation will have a stronger protectionist effect. To understand how quickly the protectionist effect increases when the number of cumulated countries grows, a parabolic curve can be obtained from the slopes of the lines:

380

The equation of the parabola is: y= 36,77x2 – 48x + 16,26 (5) There are two possible ways to identify the relationship between the super-additive effect and the number of countries involved: by calculating the derivatives of the parabola in the three points identified above, or by calculating the chord to obtain a synthetic yet approximated result. The derivatives of the parabola in the three points are as follows: y’1= -7,92 (6) y’2= 14,47 (7) y’3 = 25,3 (8) And the equation of the chord is: y=8.8x – 3.8 (9) Graphically:

It is then easy to notice the strength of the super-additive effect and how greatly it can increase the protectionism level of a country without making much noise, especially when the country imports its products from a wide range of countries.

References Books and Journals: [1] Anderson, K., (1993) “Antidumping Laws in the US; Use and Welfare Consequences”, Journal of World Trade, 27: 99-117. [2] Areeda, P. and Turner, D.F., “Predatory Pricing under Section 2 of the Sherman Act”, 88 HARV. L. REV. 697 (1975) [3] Bhagwati, J., Protectionism in: Concise Encyclopedia of Economics, 2008 http://www.econlib.org/library/CEE.html [4] Bhala, R., “Rethinking Antidumping Law”, College of William & Mary Law School, 1995 [5] Buchanan, J. and G. Tullock. 1962. The Calculus of Consent, Ann Arbor, Michigan: University of Michigan Press 381

[6] [7] [8] [9] [10]

[11] [12] [13] [14]

[15] [16]

[17] [18] [19] [20]

[21] [22] [23] [24] [25]

[26] [27] [28] [29] [30]

[31]

Davis, L. (2009), ‘Anti-dumping Investigation in the EU: How Does It Work?’, ECIPE Working Paper No. 04/2009, European Centre for International Political Economy, Brussels. Edlin A, Farrel J. ”Freedom to Trade and the Competitive Process”, Working Paper No 16818 (NBER, 2011). Feinberg, Robert M (2011) “Antidumping as a Development Issue” Global Economy Journal. Vol 11 Issue 3 Article 2 Finger, J. Michael and K.C. Fung (1994). “Will GATT Enforcement Control Antidumping”. Journal of Economic Integration; V.9-#2, pp. 198-213. Francois, J. Horn H. ; Kaunitz N. (2008), ‘Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System’ International Centre for Trade and Sustainable Development Issue Paper No. 6, ICTSD, Geneva. Gallaway, M.P., Blonigen B.A. and Flynn, J.E. (1999), “Welfare Costs of U.S. Antidumping and Countervailing Duty Laws”, Journal of International Economics, Vol 49, pp. 211-244. Gifford, D. J. "Rethinking the Relationship between Antidumping and Antitrust Laws", American University International Law Review 6, no. 3 (1991): 277-323. Hansen, W. L., and T. J. Prusa (1996). Cumulation and ITC Decision-Making: The Sum of the Parts is Greater than the Whole. Economic Inquiry 34(4): 746-769. Hindley, Brian, 2007, “Antidumping policy in the EU: A comment to the Green Paper on Trade Defence Instruments”, European Centre for International Political Economy, ECIPE Policy Briefs, No.3. Mazor (1967) “Power and Responsibility in the Attorney-Client Relationship” Stanford Law Review McMillan, John (1988). “A Game Theoretic View of International Trade Negotiations: Implications for Developing Countries”. in J. Whalley, ed. Rules, Power and Credibility. Macmillan: London. pp. 19-32. Moore, M.O., Zanardi, M., 2009. “Does Antidumping Use Contribute to Trade Liberalization in Developing Countries?” Canadian Journal of Economics, 42:469-495. Nelson Douglas 2006. “The Political Economy of Antidumping: A Survey” European Journal of Political Economy Elsevier Ojha, S., “The Economic And Legal Analysis of Dumping”, 2008. Available at http://globalpolitician.com/print.asp?id=3989 Pauwels Wilfried Vandenbussche Hylke ; Weverbergh Marcel “Strategic Behaviour under European Antidumping Duties” Int. J. of the Economics of Business, Vol. 8, No. 1, 2001, pp. 75± 99 Prusa, Thomas J (2005) “Antidumping: A Growing Problem in International Trade” The World Economy, Vol. 28, No. 5, pp. 683-700. Prusa, Thomas J ; Bloningen, Bruce A (2001) “Antidumping” NBER working paper series 8398. Riezman, Raymond (1982), “Tariff Retaliation from a Strategic Viewpoint”, Southern Economic Journal. V.48-#3; pp. 583-59 Roitinger, A., “Preserving Trade Policy Flexibility in Antidumping Reform”, Aussenwirtschaft, 58. Jahrgang (2003), Heft III, Zürich: Rüegger, S. 353–381 Rovegno L. ; Vandenbussche H, A comparative analysis of EU Antidumping rules and application, Discussion paper 2011-23, Institut de Recherche Economiques et Sociales de l’Université Catholique de Louvain Shaffer, Gregory and Ricardo Meléndez-Ortiz (2010), Dispute Settlement at the WTO: The Developing Country Experience, Cambridge University Press. Shavell (1979) “Risk sharing and incentives in the principal and agent relationship” The Bell Journal of Economics; Shaw, J. S. (2002) Public Choice Theory. The Concise Encyclopedia of Economics. The Library of Economics and Liberty. http://www.econlib.org/. Stiglitz, Joseph E (1997) “Dumping on Free Trade: The US Import Trade Laws” Southern Economic Journal pp. 402-424 Tharakan, P.K. Matthew, David Greenaway, and Joseph Tharakan (1998). “Cumulation and Injury Determination of the European Community in Antidumping Cases”. Weltwirtschaftliches Archiv; V.134-#2, pp. 320-339 Tran Viet Dung, “Anti-dumping Policy from a competition perspective: An artificial shield for national champions in open market. What to do about it?”, Present paper at the inaugural Asian Competition Law and Policy Conference 2006. 382

[32] Trebilcock, M. J. and Hutton, S. (1990), “An empirical study of the application of canadian anti-dumping laws: A search for normative rationales”, Journal of World Trade, 24(3), 123-146. [33] Vandenbussche Hylke ; Zanardi Maurizio (2006) “The Global Chilling Effects of Antidumping Proliferation” Licos Discussion Papers 167/2006 pp. 1 [34] Viner, Jacob, (1923) “Dumping: A Problem in International Trade” University of Chicago Press. [35] Yang-Ming Chang, Hung-Yi Chen , Shih-Jye Wu (2011) “To File or Not To File” Economics Bulletin Volume 31 Issue 1. [36] Zanardi, Maurizio (2006) “Antidumping: A Problem in International Trade” European Journal of Political Economy, Vol. 22, No. 3, pp. 591- 617. Others [1] www.wto.org [2] The Council Regulation (EC) No. 1225/2009 on protection against dumped imports from countries not member of the European community [3] Thai Antidumping and Countervailing Act B.E. 2542 [4] WTO Draft Consolidated Chair’s Text (2008)

383

B603 Too Big to Fail, Too Powerful to Indict? On the Absence of Criminal Prosecutions after the 2008 Financial Meltdown Henry N. Pontell1

The global meltdown that began in 2008 was influenced by a number of factors, including flawed financial policies, law-breaking, greed, irresponsibility, and not an inconsiderable amount of concerted ignorance and outright stupidity. To date, the greatest attention regarding that criminality has focused on the $65 billion Ponzi scheme perpetrated by Bernard Madoff, a scam that resembled tactics of con men, not big time corporate financiers (Sander, 2009; Strober and Strober, 2009). Prototypical corporate frauds such as those perpetrated by Wall Street behemoths American International Group (AIG), Countrywide, Lehman Brothers and Bear Sterns received much less attention (Bamber and Spencer, 2009; Kelly, 2009; McDonald and Robinson, 2009; Michaelson, 2009). These companies, had balance sheets that were saturated with securities containing toxic subprime mortgages. They collapsed, were bought by competitors, or were bailed out by the federal government with huge infusions of taxpayer money. For most onlookers, including criminologists and the public in general, the corporate actions represented intricate and arcane business practices that were difficult to understand fully and to portray in sound bytes – and therefore they tended to become trivialized in regard to their criminal components. The current worldwide financial problems have their roots in the U.S. home mortgage lending practices. Many are part of subprime lending practices that, at best, were less than prudent, and, at worst, criminally fraudulent. The bursting of the real estate bubble, which had grown quickly to outsize proportions, resulted in an unprecedented number of foreclosures, a striking collapse in the market value of homes, and heavy losses for those holding investments involving the bundling of loans and debt. Moreover, some of the most sophisticated financial institutions had allowed—and encouraged—practices that were highly imprudent, despite their reputation for expertise in risk management. Well before the bubble burst, a commentator noted the danger signs and diagnosed the risks that these companies faced: [T]heir CEOs, acting on the perverse incentives crucial to today’s outrageous compensation systems, engaged in practices that vastly increased their corporations’ risks in order to drive up corporate income and thereby secure enormous increases in their own individual incomes. And these perverse incomes follow them out the door…Pay and productivity (and integrity) have become unhinged in U.S. financial institutions (Black, 2007:16). This viewpoint is perhaps over-generous in portraying a (rational) need to show a particularly healthy balance sheet in order to justify outrageous executive pay packages (Friedrichs, 2009). Jimmy Cayne, the CEO of Bear Stearns, was given successive annual bonuses of $27 and $28 million. He skipped out of work on Thursdays during summer, and spent 30 days annually participating in bridge tournaments. Meanwhile his company, facing bankruptcy, had to be rescued by JP Morgan Chase (Kelly, 2009). The full extent of law-breaking in the world of subprime lending remains to be seen, although enforcement agencies, concentrating their resources on homeland security, will be hard-pressed to satisfactorily investigate this issue. There was a 36 percent staff reduction beginning in 2001 of FBI agents dealing with white-collar crime; the number of criminal cases brought by the FBI dropped by slightly more than one quarter between 2001 and 2008 (Lichtblau, Johnston and Nixon, 2008). A Syracuse University study determined that the fall off rate in white-collar crime prosecutions had reached the 50 percent level during the second Bush presidency (Lichtblau, Johnston and Nixon, 2008).

1

Department of Criminology, Law and Society, University of California, Irvine, USA. pontell@uci.edu 384

Nobel Prize-winning economist Paul Krugman (2009) asks rhetorically, “How did economists get it so wrong?” The short answer he provides is that “economists, as a group mistook beauty, clad in impressive mathematics, for truth….[T]he central cause of the profession’s failure was the desire for an all-encompassing, intellectually elegant approach that also gave economists a chance to show off their mathematical prowess (Krugman, 2009:36).” As with much mathematical modeling of human relationships, their version of economic reality conveniently ignored elements that could cause things to go wretchedly wrong, as they ultimately did. As Krugman puts it, “They turned a blind eye to the limitations of human rationality that often leads to bubbles and busts; to the problems of institutions that run amok; to imperfections of markets – especially financial markets – that can cause the economy’s operating system to undergo sudden, unpredictable crashes; and to the dangers created when regulators don’t believe in regulation” (2009:36). As critical as Krugman’s statement is, it nonetheless and at best minimizes, and at worst totally ignores the issue of criminality. “Institutions that run amok” also engage in illegal activities that exacerbate initial problems created by “bad economics” and corresponding flawed financial policy to crisis proportions. At both the loan originator and holder level the cover-up is rational and self-protective, albeit unlawful and immoral. Neo-classical economists’ unfamiliarity with fraud mechanisms causes them (ironically, given their excessive “rational actor” emphasis) to assert that the transactions that dominate this cover-up phase are inexplicable, crazy, or produced by “an increased appetite for risk.” Krugman (2009:37) explains: Finance economists rarely asked the seemingly obvious (though not easily answered) question of whether asset prices made sense given real-world fundamentals like earnings. Instead they asked only whether asset prices made sense given other asset prices….Finance theorists continued to believe that their models were essentially right, and so did many people making real-world decisions. Not least among these was Alan Greenspan…a long-time supporter of financial deregulation whose rejection of calls to rein in subprime lending or address the ever-inflating housing bubble rested in large part on the belief that modern financial economics had everything under control….By October of last year, however, Greenspan was admitting that he was in a state of “shocked disbelief,” because “the whole intellectual edifice” had “collapsed.” Since this collapse of the intellectual edifice was also a collapse of real-world markets, the result was a severe recession – the worst, by many measures, since the Great Depression. Turning a Blind Eye to Fraud As much as economists got it wrong, enforcement agencies and others –including some economists – appear to believe that fraud did not play a central role in the meltdown. The offenses that have been prosecuted thus far remain relatively minor compared to mind-boggling felonies perpetrated by those at the center or the top of the largest financial institutions. The failure to prosecute these frauds provides an opportunity to examine the nature of elite white-collar and corporate crime, how they tend to remain non-issues, and the factors that encourage this to happen. For example, Goetz’s (1997) study of arson cases in Boston demonstrated how resource constraints and class bias provided what he labels a “structural cloak” that covers white-collar criminality. The fires were intentionally arranged by landlords in order to collect insurance but were blamed by officials on lower-class occupants of the buildings. By keeping arson-for-profit a non-issue a significant form of white-collar crime was camouflaged. If one accepts the notion that there was no fraud involved to begin with, the issue of prosecution is moot. If there is no clear evidence that executives enriched themselves while knowingly leading their firms to bankruptcy requiring the largest government bailout in history in order to keep them afloat, then there are no real crimes, or at least none that could be proven in a court of law. This viewpoint coincides with the “free market” law and economics movement, influenced mostly by the work of Frank Easterbrook and Daniel Fischel (1991), which trivializes the notion of fraud, since markets, it is claimed, will readily identify and correct fraud. This corporate governance framework not only denies that there is any significant degree of fraud in financial markets, but it accounts for major meltdowns, when they do occur, in terms of larger structural disorders, mismanagement and incompetence, government and regulatory interference, overzealous enforcement efforts, and “risky business”(1991:283). Fraud is not important, because markets naturally prevent it from becoming endemic and problematic. A criminological approach places non-prosecution in a very different light. Recent work by white-collar criminologists suggests that the “fraud minimalist position” taken by the traditional law 385

and economics approach to corporate governance is fundamentally flawed, since it ignores the potential for “control fraud” –crimes committed by those who run large firms that are designed to enrich themselves while victimizing their own institutions – and the role it plays in creating major financial disasters. (Black, 2003; 2008; Pontell, 2004, Nguyen and Pontell, 2010). Criminological research has empirically shown that theories and policies that rely largely on “the invisible hand of the market” and that ignore the potential for endemic fraud are incorrect. Calavita and Pontell (1990;1991) noted this as “collective embezzlement” in the savings and loan industry. Black (2005) labeled the phenomenon as “control fraud” which refers to the ability of those who run firms to suborn both internal and external controls designed to prevent illegal activities, and then to engage in them themselves for purposes of self-enrichment or maintaining power. Besides the savings and loan crisis, other major debacles where control fraud was clearly present and prosecuted include the Orange County bankruptcy in California and the 2002 corporate and accounting meltdowns. The Orange County situation clearly showed how a lack of regulatory oversight along with the creative use of accounting schemes to hide losses could be perpetrated not for financial gain, but to maintain the County Treasurer’s position and public image as an apparently successful financial manager (Will, Pontell and Cheung, 1998). The corporate scandals of 2002 involving Enron, Worldcom and Arthur Anderson among others, illustrated how accounting could be used as a tool to engage in massive frauds against firms, employees, and shareholders. The criminal offenses devastated the U.S. economy and produced market sell-offs that resulted in trillions of dollars of losses worldwide. Control fraud, unchecked, widespread, and endemic to the economy, can hyper-inflate financial bubbles that eventually result in systemic crises (Black, 2008). The economist whose academic work focused on such matters, Hyman Minsky, used the term “Ponzi phase” to characterize this growth in financial bubbles (Minsky, 1982). It is a descriptive term, and not metaphorical. The “weapon of choice” in bubbles is accounting and the principal intended victims are the firm, its shareholders, creditors, and customers. Such waves of fraud are neither random nor irrational; they occur when a “crime-facilitative environment” (Needleman and Needleman, 1979) creates perverse incentives to act unlawfully. The lack of effective financial regulation and enforcement during the Bush administration and the policies fostered by Greenspan allowed such criminogenic environments to flourish in industries related to the origination, sale, and securitization of home loans (Black, 2008). Financial instruments based on these “toxic assets” were marketed throughout the world. The savings and loan crisis of the 1980s resulted in over a thousand convictions of thrift executives and others at, or near the top of the corporate food chain. One key element in the different response from the S&L crisis has to do with the role of regulatory agencies and the auditors and accountants who worked in them. There were ample criminal referrals and accompanying evidence of wrongdoing sent to the Justice Department by the Office of Thrift Supervision and the Resolution Trust Corporation, the two major agencies that looked carefully at loans and assets of financial institutions. There also was regulatory expertise that could be brought to bear on the work of task forces whose job it was to investigate wrongdoing and bring criminal cases. In the current meltdown there have been no referrals from regulators regarding any criminal wrongdoing within institutions themselves. There were literally thousands of such referrals made against officers of institutions in the S&L debacle. Another way to meaningfully gauge the regulatory response or lack thereof in the current crisis is to consider the SEC’s initial indifference to Bernard Madoff. Madoff was not a central figure that caused the meltdown, but rather was exposed as a consequence of it. His ponzi scheme was the largest ever perpetrated by an individual, and its discovery during the near collapse of the financial system quickly made him the poster boy for fraud. He was turned in to the SEC by a competitor, Harry Markopolos, on multiple occasions, but enforcement agents refused to take any action (Markopolos, 2010). The fact that there was no follow up investigation of Madoff who literally was delivered to authorities, speaks volumes regarding the impotency of regulatory enforcement at the time. The 4,000-pound elephant was in the room and no one could – or wanted to -- see it. Criminologist Gilbert Geis has noted the utter failure of auditors in the latest financial meltdown: The Securities and Exchange Commission (SEC) has been pelted, deservedly, with criticism for its abject failure to monitor the financial crimes and shenanigans engaged in by investment 386

banks and other irresponsible entities whose reckless behavior collectively triggered what become known as “the Great Economic Meltdown.” The SEC, ideologically identified with the Republican Party, became an appetizing target when the Democrats came to power. The SEC’s negligent and overmatched chairman, Christopher Cox, had reflected the George W. Bush administration’s indifferent attitude towards the self-indulgent excesses of real estate brokers and financial institutions involved in the subprime lending racket, and toward Wall Street investment firms that were avidly marketing toxic mortgage derivatives. The peddlers of these polluted and often largely incomprehensible papers, not coincidentally, were reaping extremely high profits. (Geis, 2011). Citing a “lack of evidence” as the primary reason for the fact that as of this writing, there has not been one elite corporate prosecution in the “Great Economic Meltdown,” inherently represents a one-sided political approach that not only reflects a lack of understanding of fraud by officials but their lack of will to act. It is also completely in line with a fraud minimalist approach to financial debacles. The question becomes why is there a lack of evidence, and the answer comes down to either the belief that no crimes were committed and thus there would simply be no evidence, or that there is or was potential evidence, but it was never gathered. Crime Control vs. Damage Control The role of the state in responding to financial debacles is another important issue in assessing the failure to prosecute elites in the aftermath of financial debacles. Those holding political power are generally reluctant to define the acts of close associates and beneficiaries as deviant or criminal (Sutherland, 1961 [1949]). This makes it extraordinarily difficult to muster the resources necessary to investigate complex financial frauds and to level subsequent charges. One only has to recall the grandstanding by the former U.S. Senator from Connecticut, Christopher Dodd, regarding the need to reform financial regulations and prosecute those responsible for the meltdown which belied the fact that he was in the pocket of one of the poster boys of the current scandal, Angelo Mozilo, of Countrywide Financial Corporation. Dodd who served as Chairman of the Senate Banking Committee, was the recipient of a “VIP” mortgage loan with terms more favorable than those given to other customers. He was one of many lawmakers and other influential individuals who would be labeled, “friends of Angelo.” The revelation of this relationship which bordered on bribery contributed to ending Dodd’s political career. A study that considered these issues in the context of both white-collar crime and state theory and concluded that the reason for the government’s prosecution of over a thousand savings and loan owners, executives and their associates in the wake of the S&L debacle was that their offenses constituted a significant threat to the entire economic system and to the state’s major function of assuring the accumulation of capital. (Calavita and Pontell, 1994). This also explained why the largest government effort to prosecute white-collar crime was selective to that particular industry and did not include other sectors of the economy where major losses due to white-collar lawbreaking occur on a regular basis. Despite the official narrative of “crime control,” however, the effort was aimed more at “damage control,” as these crimes threatened the viability of the entire economic system. Thus, the unprecedented response to thrift fraud was reasonably considered to be a reaction to an unprecedented crime wave in an industry that was close to the heart of the economy. In the latest meltdown, which involved financial institutions constituting the very heart of the economy, major crimes have yet to be identified for at least three reasons. First, the government refused to act on early warning signs from the FBI of fraud, which guaranteed that the major organized effort necessary to conduct detailed investigations before evidence disappeared would not occur. Second, those in power were close to, recruited from, or beholden to those whose acts were questionable, which would all but throttle the significant political will necessary to go after corporate leaders. Third, the government was pushed to act very quickly in bailing out major financial institutions leaving no time to seriously consider who exactly was responsible for the sudden economic downturn other than perverse structural incentives that had been in place for years and that had finally come to a head. It would indeed be difficult if not downright embarrassing for the government to indict at a later time those it bestowed with hundreds of billions of taxpayer dollars in order to keep their institutions afloat. The blaming of structural causes has surfaced yet again as the primary reason given by conservative observers who continue to harp on faulty regulation rather than the individuals who took advantage of – and indeed lobbied to help create – the loopholes themselves as playing a major role in the disaster 387

(The Financial Crisis Inquiry Commission, 2011). Similar if not identical cries were heard during the savings and loan crisis. Zimring and Hawkins (1993) note that in the aftermath of the thrift debacle, there was an ironic juxtaposition of political ideologies regarding the causes of crime in the case of elite fraud. Instead of their usual focus on the individual, conservatives tended to blame environmental forces that produced crime-facilitative conditions, while liberals tended to focus on the individual actions of the thieves themselves. Some radical voices from the right, including those in the Tea Party movement, put the blame on the government itself without referencing the intense lobbying efforts of powerful economic interests to render the government impotent in preventing – or enlisting it in -- the creation of criminogenic environments where fraud could flourish. This makes about as much sense as blaming cancer rates in the population on “nature,” without determining what factors cause the incidence of the disease to vary. As of this writing, the government has not prosecuted a single elite case of criminal fraud. Instead, an emergency damage control stance was taken, which entailed bailing out major institutions in the financial system in order to prevent a larger crisis. Any lip service to “crooks,” “rip-offs,” and “financial shenanigans” essentially constituted a token gesture and symbolic posturing in regard to elite offending. The urgency of the state to act in the current meltdown wasn’t about prosecution but was aimed at controlling an unprecedented financial meltdown that had been brewing for years and had finally delivered a major crisis. The state ignored crime control for elites and large corporations and focused entirely on damage control, suggesting that there is a crisis threshold that was reached in the current meltdown at which potential frauds that threaten the viability of large financial institutions as well as the rest of the economy will not be seriously investigated nor prosecuted as this would destroy the legitimacy of the state itself which serves the interests of these same institutions. Prosecutions of high-level executives also create a major contradiction related to the state’s role in shoring up the financial system; it could cause companies to fail based on the subsequent loss of faith by customers and investors. Recent experiences appear to bear this point out. A Wall Street Journal piece notes, “Indeed, in the more than two-century history of the U.S. financial markets, no major financial firm has survived criminal charges. Securities firms E.F. Hutton & Co. and Drexel Burnham Lambert Inc. crumbled after being indicted in the 1980s. In 2002 Arthur Andersen LLP went out of business after it was convicted of obstruction of justice for its role in covering up an investigation into Enron Corp. The conviction was later overturned by the Supreme Court” (Pulliam and Perez, 2010). “Not Bad Luck” The Office of Thrift Supervision (OTS) which oversees the activities of financial institutions appears to have completely forgotten the lessons learned from the S&L fiasco regarding the ways in which executives can defraud their own institutions. For example, when asked about the prevalence of fraud in the current scandal for a major media outlet, an agency representative noted that, “There may be some isolated cases, but certainly there’s no widespread patterns” (Heath, 2010). In response to this observation, former S&L regulator, Bill Black noted that, “This crisis was not bad luck…It was done to us” (Heath, 2010). The best historical evidence supports that position. Under mounting political pressure in the late 1980s, the Justice Department and thrift regulators developed a strategy to thoroughly investigate failed S&Ls for evidence of fraud and to focus their resources on the highest ranking executives. Although data on criminal referrals is not available for the entire period of the clean up, the Government Accountability Office found that during the first ten months of 1992 alone, regulators referred more than 1,000 cases for potential prosecution to the Justice Department, with over a third involving directors and owners of the financial institutions themselves. Recent reports indicate that by 2006 the number of referrals had fallen to 75, and in the subsequent four years had fallen to 72 cases per year that were referred for criminal prosecution. Such referrals began to decline under the Clinton administration, as the enforcement focus was shifted toward health care. The trend continued during the Bush administration with the exception of the corporate and accounting scandals involving Enron, Worldcom, Arther Andersen and others which occurred in 2002 (Morgenson and Story, 2011). Unlike the S&L crisis where regulators made thousands of criminal referrals for insider frauds at financial institutions, banks have reported large amounts of fraud to the federal government, but none have involved themselves. Rather, they have targeted frauds downward to borrowers, independent mortgage brokers, and other players (Heath, 2010). 388

The virtual absence of referrals from regulators who are the first line of defense against major financial fraud is a primary reason for the lack of elite prosecutions. If the savings and loan crisis demonstrated anything, it was that regulatory expertise was critical to understanding and identifying complex frauds. Without it, prosecutors would be faced with long odds of winning cases, much less discovering and investigating them in the first place. Compounding the lack of regulatory expertise and leadership during the Clinton and Bush administrations, the dramatic declines in investigatory resources for white-collar crime at the FBI in the wake of the 2001 World Trade Center attack left the government with little to no capacity to respond to massive fraud. The regulatory expertise necessary to bring cases would have been increased if task forces been created as early as 2004 when the FBI first realized that there would be “an epidemic of mortgage fraud” (Lichtblau, Johnston, and Nixon, 2008). Despite the clear historical evidence showing the necessity for effective regulation, this time the government has appeared to have adopted a hands-off policy. With no major prosecutions there can be no links of massive fraud to the causes of the current debacle. Without correctly identifying and understanding both the nature of, and significant role of fraud in the crisis, there will be no increased resources for enforcement which would provide the necessary capacity to prevent future meltdowns. Prosecutors have relied almost entirely on banks to provide information about suspicious activity to the Treasury Department. While banks are required by law to report known or suspected criminal violations, including fraud, relying on them as the central mechanism for bringing major cases of fraud appears dubious at best, since it is highly unlikely that institutions will not make criminal referrals against the people who control therm. As an experienced regulator noted, “There were no criminal referrals from the regulators. No fraud working groups. No national task force. There has been no effective punishment of the elites here” (Morgenson and Story, 2011). Relying on banks to refer major criminality assumes that those who lead them cannot be involved in offenses themselves. This entails a leap of faith that has absolutely no empirical support. To the contrary, it ignores crime by the organization against the organization, a phenomenon found to be central to the savings and loan crisis (Calavita, Pontell and Tillman, 1997). Expecting senior executives to turn themselves in for committing offenses that victimized and/or bankrupted their own companies is less a control strategy than it is wishful thinking. The absence of independent oversight and investigation would virtually guarantee that the most costly and consequential crimes would remain undiscovered and unpunished. Conclusion From a criminological standpoint, the current financial meltdown points to the need to unpack the concept of status when examining white-collar and corporate offenses. The high standing of those involved in the current scandal has acted as a significant shield to accusations of criminal wrongdoing in at least three ways. First, the legal resources that offenders can bring to bear on any case made against them are significant. This would give pause to any prosecutor, regardless of the evidence that exists. Second, their place in the organization assures that the many below them will be held more directly responsible for the more readily detected offenses. The downward focus on white-collar and corporate crimes is partly a function of the visibility of the offense and the ease with which it can be officially pursued. Third, the political power of large financial institutions allow for effective lobbying that both distances them from the criminal law and prevents the government from restricting them from receiving taxpayer money when they get into trouble. It is tempting to surmise from the lack of elite prosecution in the current debacle that officials will accord more leniencies to those with power. This view was challenged years ago by Shapiro who argued that the tendency of SEC officials to more readily prosecute lower-status offenders was not due to class bias but rather resulted from the greater availability of alternative sanctions for higher-status offenders. In subsequent research, Tillman, Calavita and Pontell (1997) challenged this view, showing that it was not the availability of alternate sanctions that produced lower prosecution rates, but rather the available resources of the government to respond to incidents of suspected crime. Caseload pressures and overall organizational resources relative to the environment at the time were key determinants to the decision to prosecute. Resources are particularly important to cases of elite frauds, as they will typically involve a degree of complexity that will necessitate a significant amount of investigative and prosecutorial effort. 389

An alternative sanctions model also did not fit well with the fact that responses to thrift crime were somewhat fitful and not all that well coordinated. Agencies involved in the cleanup had their own goals and directives which sometimes would clash. Pursuing cases in such an adversarial environment was not an easy task, and undoubtedly limited the potential of criminal justice and regulatory agencies to operate as a rational system of control. This would appear to violate a primary assumption of the alternate sanctions model, which is that there would be systematic trade-offs made by prosecutors between civil and criminal sanctions. Another explanation that fits well in the thrift crisis and the current meltdown is that where there are chronic system capacity problems that criminal cases would be less likely to be pursued altogether. Even then, incremental increases in resources may still be insufficient to go beyond the proverbial "tip of the iceberg." The reasons for the lack of prosecution of senior, high-level executives in the current scandal illustrate the dynamics of keeping white-collar crime a non-issue, trivializing it more generally, and focusing enforcement efforts downward to lesser offending. The factors depressing the known scope of white-collar and corporate lawbreaking in ordinary times – the relative paucity of enforcement resources, the difficulty in convincing prosecutors to bring difficult and complex cases, diffuse victimization, the complexity of cases, the lack of concrete evidence, and the political will to criminally charge powerful adversaries who can bring a wealth of legal resources to their defense – all become magnified when crises occur that involve massive waves of control fraud. In responding to such financial crises at the very heart of the economy, the state must deal with a major contradiction. It must preserve economic order without delegitimizing itself by criminalizing senior executives of large firms who represent the very captains of the economy that it serves to protect. At the same time, by not criminalizing these elites, the state risks appearing to favor the elites. In the current meltdown, the state has taken that risk. In regard to senior level executives, the “social movement against white-collar crime” (Katz, 1980) noted some 30 years ago in the U.S. has now all but disappeared in terms of federal efforts to reign in corporate crime in the financial realm. Over a half-century ago, Sutherland claimed that the less critical stance of government toward businesspersons was caused by several reasons having to do with social proximity. First, individuals in business and government are culturally homogeneous, and can often have close personal and familial ties. Second, many top government officials come to occupy their positions after working in large and powerful business firms. Third, government work can serve as a means to secure subsequent employment in the private sector. Finally, government policies are significantly affected by large monetary contributions from big business. Sutherland states: “Thus, the cultural homogeneity, the close personal relationships, and the power relationships protect businessmen against critical definitions by government” (Sutherland, 1961 [1949]:249). Regarding the absence of prosecution in the aftermath of the latest financial meltdown, it appears that protection is proportionate to the status and power of the perpetrator, as well as the absolute amount of damage and loss to society.

References [1] [2]

[3] [4] [5] [6] [7] [8]

Bamber, Bill A. and Andrew Spencer. 2009. Bear trap: The fall of Bear Stearns and the panic of 2008. New York: Black Tower Press. Black, William K. 2008. Why Greenspan’s & Bush’s regulatory failures allowed a “criminogenic environment.” Paper presented at the 18th Annual Hyman P. Minsky Conference on the State of the U.S. and World Economies, New York City, April 16. Black, William K. 2007. (Mis)understanding a banking industry in transition. Dollars and Sense, 273 (Nov/Dec):14-27. Black, William K. 2005. The best way to rob a bank is to own one: How corporate executives and politicians looted the s&l industry. Austin. TX: University of Texas Press. Black, William K. 2003. Reexamining the Law-and-Economics Theory of Corporate Governance,” Challenge 46:2, March/April:22-40. Calavita, Kitty, Henry N. Pontell, and Robert Tillman. 1997. Big money crime: Fraud and politics in the savings and loan crisis. Berkeley: University of California Press. Calavita, Kitty and Henry N. Pontell. (1994). The state and white-collar crime: Saving the savings and loans, Law and Society Review, 28:297-324. Calavita, Kitty and Henry N. Pontell. 1991. Other people's money revisited: collective embezzlement in the savings and loan and insurance industries, Social Problems, 38 (February):94-112. 390

[9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21]

[22] [23] [24] [25] [26] [27]

[28] [29] [30] [31]

[32]

[33]

Calavita, Kitty and Henry N. Pontell. 1990. 'Heads I win, tails you lose': Deregulation, crime, and crisis in the savings and loan industry, Crime and Delinquency, 36 (July):309-341. Easterbrook, Frank H. and Daniel R. Fischel. 1991. The economic structure of corporate law. Cambridge, MA: Harvard University Press. Friedrichs, David. 2009. Exorbitant CEO compensation or grand theft? Crime, Law & Social Change, 51(February):45-72. Geis, Gilbert. 2011. Unaccountable external auditors and their role in the economic meltdown. Unpublished manuscript. University of California, Irvine. Goetz, Barry. 1997. Organization as class bias in local law enforcement: arson-for-profit as a "nonissue." Law & Society Review, 31(3):557-588. Heath, David. 2010. Too big to jail? Huffington Post, May 3. http://huffpostfund.org/stories/2010/05/too-big-jail Katz, Jack. 1980. The social movement against white-collar crime. In Egon Bittner and Sheldon Messinger (eds.), Criminology Review Yearbook, Vol. II. Beverly Hills: Sage, pp. 161-184. Kelly, Kitty. 2009. Street Fighters: The last 72 hours of Bear Stearns, the toughest firm on Wall Street. New York: Portfolio. Krugman, Paul. 2009. How did economists get it so wrong? New York Times Magazine, Sept. 2: p. 36-38. Lichtblau, Eric, David Johnston and Ron Nixon. 2008. FBI struggles to handle financial fraud cases. The New York Times, Oct.19. p. A1. Markopolos, Harry. 2010. No one would listen: A true financial thriller. Hoboken, NJ: John Wiley & Sons. McDonald, Larry G. and Patrick Robinson. 2009). A colossal failure of common sense: The insider story of the collapse of Lehman Brothers. New York: Crown. Michaelson, Adam. 2009. The foreclosure of America: The inside story of the rise and fall of Countrywide Home Loans, the mortgage crisis, and the default of the American dream. New York: Berkley Publishing Group. Minsky, Hyman P. 1982. Can “it” happen again? Essays on instability and finance. Armonk, NY: M.E. Sharpe, Inc. Morgenson, Gretchen and Louise Story. 2011. In financial crisis, no prosecutions of top figures. New York Times, April 14. p. 1. Needleman, Martin L. and Carolyn Needleman. 1979. Organizational crime: Two models of criminogenesis. The Sociological Quarterly, 20:4 (autumn):517-528. Nguyen, Tomson H. and Henry N. Pontell, 2010. Mortgage origination fraud and the global economic crisis: A criminological analysis. Criminology & Public Policy, 9:3 (August):591-612. Pontell, Henry N. 2005. White-collar crime or just risky business? The role of fraud in major financial debacles. Crime, Law & Social Change, 42 (January):309-324. Pulliam, Susan, and Evan Perez. 2010. Criminal probe looks into Goldman trading. Wall Street Journal, April 30. http://online.wsj.com/article/SB10001424052748703572504575214652998348876.html#printM ode Sander, Peter. 2009. Madoff: Corruption, deceit, and the making of the world’s most notorious Ponzi scheme. Guilford, CT: Lyons Press. Sutherland, Edwin H. 1961 [1949]. White collar crime. NY: Holt, Rinehart and Winston. Strober, Deborah Hart and Gerald Strober. 2009. Catastrophe: The story of Bernard Madoff, the man who swindled the world. Beverly Hills, CA: Phoenix Books. The Financial Crisis Inquiry Commission. 2011. The financial crisis inquiry report. Final report of the national commission on the causes of the financial and economic crisis in the United States. Washington DC: U.S. Government Printing Office. Tillman, Robert R., Kitty Calavita and Henry N. Pontell. 1997. Criminalizing white-collar misconduct: Determinants of prosecution in savings and loan fraud cases. Crime, Law and Social Change, 26:53-76.

Will, Susan, Henry N. Pontell, and Richard Cheung. 1998. "Risky business revisited: White-collar crime and the orange county bankruptcy, Crime and Delinquency, 44:3 (July):367-387.

[34] Zimring, Franklin E. and Gordon Hawkins. (1993). Crime, justice, and the savings and loan crisis. In Michael Tonry and Albert Reiss, Jr. (eds.), Beyond the law: crime in complex organizations, Chicago: University of Chicago Press, pp. 247-292. 391

B453 PROTECTION OF MINORITIES UNDER INTERNATIONAL LAW Hasnain Alvi Department of Law, Hidayatullah National Law University, Raipur, India Email Address-: hasnainalvi.hnlu@gmail.com

Abstract There is no universally agreed, legally binding definition of the term ‘Minorities’. Generally minorities are considered as - a group numerically inferior to the rest of the population of State in non-dominant position who possess ethnic, religious or linguistic characteristics distinct from the majority of the population, directed towards preserving their culture, traditions, religion or language”. Minorities protection has been an emerging cause of worry in recent times and there are few organizations at international level that have emerged as supporter of this cause. The paper in detail deals with international safeguards provided to minorities, namely, United Nations Minorities Declaration, ILO Discrimination (Employment and Occupation) Convention, 1958, UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions 2005. The paper also deals with practical aspects of minority protections through various humanitarian efforts by various agencies. Also, the effect of diverse population and culture on minorities, the damage caused to them by internal and external armed conflicts. The author in this paper would discuss in detail various mechanisms through which accountability, transparency and necessity of a state can be fixed at international level and can make state responsible for acts against minorities in their territory.

1. INTRODUCTION There is no universally accepted and legally binding definition of the term “Minority”. There are many states that prefer the definition to be too restrictive so that large trenches of their population do not fall within the definition. It is a challenge for International community to come out with a definition of minority and make it universally acceptable. Consequently, international law has found it difficult to provide any firm guidelines in relation to defining the concept of minority. In spite of that many International Lawyers and Jurists have made efforts to develop the definition of the term ‘minority’ in order to make it universally acceptable. Fransesco Copotorti defined, with the application of Article 27 of ICCPR in mind, a minority group as – “A group numerically inferior to the rest of the population of a State, in a non-dominant position, whose members being nationals of the state possess ethnic, religious or linguistic characteristics differing from those of the rest of the population and show, if only implicitly, maintain a sense of solidarity, directed towards preserving their culture, traditions, religion or language”. The above definition has also been challenged by some jurists on ground that there are cases where a numerical majority may also find itself in minority like or a non-dominant position such as blacks under the apartheid regime in South Africa. In some situations, a group which constitutes a majority in a State as a whole may be in a non-dominant position within a particular region of the State in question. It has also been argued that persons who are old, or belongs to particular political group or have a particular sexual orientation or identity (lesbian, gay, bisexual, transgender or intersexual persons) constitute minorities. While Capotorti’s definition is devoted to national, ethnic, religious and linguistic minorities. It is important to keep in mind that, in many countries, minorities are often found to be among the most marginalized groups in society and severely affected by, for example, pandemic diseases, such as HIV/AIDS, and in general have limited access to health services.

392

2. SCOPE OF MINORITY RIGHTS PROTECTION There are three major concerns to which the minority rights protection extends. United Nations Minorities Declaration and other international standards have mainly focused on these three issues as follows-: 2.A Survival and Existence of Minorities-: The first aim of minority rights protection is to protect the physical existence of persons belonging to minorities, such as protecting them from genocide and crimes against humanity. During the situation like conflicts, civil war or armed rebellion the physical integrity of persons belonging to minority groups is of course at greatest risk and attention should be paid to ensuring that minorities, including those displaced internally within their own country or externally as refugees, have access to humanitarian aid and relief such as food, shelter and health care. The 1994 General Comment by the UN Human Rights Committee(HRC) on Article 27 of the International Covenant on Civil and Political Rights (ICCPR),4makes clear that the existence of minorities does not depend on state decisions but is to be established by objective criteria; and that non-citizens and even non-permanent residents of states qualify for protection under Article 27. 2. B Promotion and Protection of Identity of minorities -: Minority rights are about ensuring respect for distinctive identities while ensuring that any differential treatment towards groups or persons belonging to such groups does not mask discriminatory practices and policies. Therefore, positive action is required to respect cultural, religious and linguistic diversity, and acknowledge that minorities enrich society through this diversity. 2. C Effective and Meaningful Participation -: In order to prevent ignorance and preserve the identity of a social group it is necessary that they must be given a chance to participate in all aspects of the political, economic, social and cultural life of the country where they live. Mechanisms are required to ensure that the diversity of society with regard to minority groups is re-elected in public institutions, such as national parliaments, the civil service sector, including the police and the judiciary. Participation must be effective and meaning full and not symbolic or for name sake. The participation of women belonging to minorities is of particular concern.

3. INTERNATIONAL SAFEGUARDS TO PROTECT THE RIGHTS OF MINORITIES The ILO Discrimination (Employment and Occupation) Convention, 1958 requires States to adopt and implement national policies to promote and ensure equality of opportunity and treatment in employment and occupation, with a view to eliminating direct and indirect discrimination on grounds of race, colour, sex, religion, political opinion, national extraction or social origin . These national policies must address discrimination and promote equality, in law and in practice, regarding access to education and training, employment services, recruitment, access to particular occupations, as well as terms and conditions of employment. For the purpose of this Convention the term discrimination includes any distinction, exclusion or preference made on the basis of race, colour, sex, religion, political opinion, national extraction or social origin, which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation.(Art.1 of the convention) The terms employment and occupation include access to vocational training, access to employment and to particular occupations, and terms and conditions of employment. The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions .This convention is a binding international legal instrument. This convention encourages states to incorporate culture as a strategic element in national and international development policies and to adopt measures aimed at protecting and promoting the diversity of cultural expressions within their territory. The Convention recognises the rights of Parties to take measures to protect and promote the diversity of cultural expressions, and impose obligations at both domestic and international levels on Parties. It focuses on equal dignity and respect for all cultures, including that of persons belonging to minorities. The 2003 UNESCO Convention for the Safeguarding of the Intangible Cultural Heritage promotes the practices, representations, expressions, knowledge, skills as well as the associated instruments, objects, artefacts and cultural spaces that communities recognize as a part of their cultural 393

heritage. It not only includes these but also living expressions and the traditions that bags of people and communities worldwide have inherited from their ancestors and transmit to their descendants. In recent years cultural heritage has became one of the top priorities of the international organizations. The main focus of this convention is on ‘intangible’ cultural heritage which includes songs, drama, crafts, and other parts of culture that can be recorded but cannot be touched. For this purpose, the Convention establishes a fund and a listing system of representative. The 1998 ILO Declaration on Fundamental Principles and Rights at Work provides that all members of the Organization have an obligation to respect, promote and realize the fundamental principles and rights at work. These include the principle of non-discrimination in employment and occupation, freedom of association and the right to collective bargaining, and the elimination of forced and compulsory labor, as well as child labor. The enjoyment of equality of opportunity and the treatment of minorities are monitored under this Declaration.

4. MUNICIPAL LAWS OF DIFFERENT COUNTRIES DEALING WITH PROTECTION OF MINORITES. India The Indian Constitution is committed towards the equality of citizens and prohibits any kind of discriminatory practices against its citizens on grounds of religion, caste , race , sex, place of birth. Article 14-17 of the Indian Constitution ensures equal opportunity before law and prohibits discrimination but does positive discrimination there by proving beneficial and profitable for minorities. It is the responsibility of the state to preserve, protect and assure the rights of minorities. On 23rd October 1993, Govt. of India has notified Muslim, Sikhs, Christian and Parsis as ‘minority community’ under National Commission on Minorities Act, 1992. The Indian Constitution went a step further to define rights of the people belonging to Scheduled Castes and Scheduled Tribes often termed as weaker section of society. It was felt as need for the govt. to do something special and tangible, to free and liberate the weaker section of society from the complex of marginalisation, inequality and backwardness.

Constitutional Provisions for SC/ST and Minorities. Art. 15 of the Indian Constitution which makes special provisions for SC/ST and minorities for admission in private educational Institutions. Art. 16 which allows state to reserve vacancies in public services for minorities and ST/SCs. Art. 17 which talks about abolition of untouchability and its practice in any form. China China the most populated country in the world is also like India a multi-ethnic country. It has accepted international norms for protecting rights of ethnic minorities and has drafted preferential laws and policies to safeguard their rights and boost their welfare. China has currently 155 ethnic autonomous areas, including five autonomous regions, 30 autonomous prefectures and 120 autonomous counties or banners in accordance to the Constitution and law. In addition, there are over 1,100 villages where ethnic minorities live in concentrated communities. According to the Constitution and the Law on Regional Ethnic Autonomy, ethnic autonomous areas have extensive autonomous power, such as the exclusive right to govern the local affairs of their ethnic groups and other affairs within their respective administrative regions. More Over the people belonging to ethnic autonomous areas have the power to enact regulations on the exercise of autonomy and separate regulations in the light of the political, economic and cultural characteristics of the ethnic group or groups in the areas concerned, Russia Russia is a multi-ethnic country with an estimated population of 141.9 million people. According to the 2002 census, ethnic Russians comprise 79.8 percent of the population. There are some legislations which punishes for crime against minorities in Russia such as Article 105 of Russia's criminal code provides stricter sentences for murder "committed by reason of national, racial, or religious hatred." Article 282 of Russia's Criminal Code prohibits: 394

"actions aimed at the incitement of hatred or enmity, as well as abasement of dignity of a person or a group of persons on the basis of sex, race, nationality, language, origin, attitude to religion, as well as affiliation to any social group, if these acts have been committed in public or with the use of mass media."

CONCLUSION The protection of minorities as a legal issue works in the frame of the general system of human rights protection, but a progress in the direction of general improvement of the situation of minorities as a group can hardly be recognised. As part of the protection of human rights, the contents of minority protection in public international law has been individualised. This process has led to the application of the general rules of human rights protection on persons belonging to a minority without regularly taking into account the peculiarities of the protection of a minority group. International human rights law provides substantive norms of protection for national minorities. In practice, however, violations are all too frequent, and difficult to remedy. The prerogatives of sovereignty continue to be raised to thwart accountability. In some instances, states use the treatment of minorities in nearby states as a pretext to pursue foreign policy objectives. Effective international mechanisms are needed to scrutinize the conduct of states, particularly those experiencing broad societal transitions, in order to prevent and ameliorate violations of human rights and maintain the security of the individuals and states concerned.

395

B557 Unilateral Humanitarian Intervention Anil Vishnoi National Law University Odisha, India E-mail id: anilvishnoi29@gmail.com Ritu Chatterjee National Law University Odisha, India E-mail id: ritu4teenage@gmail.com

INTRODUCTION The doctrine of unilateral humanitarian intervention has been contemplated, discussed, and debated for over 600 years.1 Although the world has recently focused its attention on collective humanitarian measures such as those taken in Afghanistan, Iraq, Bosnia, and Somalia, society must not forget that only a short while ago, the prospect of collective action was remote as the Security Council usually deadlocked. Unknown events in the near future may throw the world back into those days when Security Council action was infrequently authorized. In fact, several events may have already thrown the world back into the times of infrequent use of collective action. The world's unwillingness to attempt to stop the mass slaughter in Bosnia via the use of force demonstrates nations' increasing egocentrism and an unwillingness to act collectively. The battle in Somalia that led to eighteen U.S. soldiers' deaths has led many in the U.S. to question the ability of the United Nations (U.N.) to take effective, collective action and has led Congress to introduce legislation preventing U.S. troops from operating under U.N. control. 2 Even today, the contemporary legality of this doctrine remains one of the most controversial in the international regime. 3 Many governments and commentators firmly believe the U.N. Charter prohibits all uses of unilateral intervention, including humanitarian interventions. Despite the general acceptance of that position today, others find powerful justifications for unilateral interventions for humanitarian purposes because of or in spite of the Charter. A reexamination of this doctrine will reveal a limited right to intervene unilaterally for humanitarian purposes, does exist and, more fundamentally, should exist. In our contemporary setting, perhaps more than any other time in history, the world is both pleading for necessary and vital assistance in the human rights arena 4 and capable of alleviating a tremendous amount of unnecessary human suffering. Although the international community had been inactive in securing all human beings their human rights prior to the World Wars, since World War II, reports indicate the international community is beginning to pressure states into recognizing fundamental human rights.5 Unfortunately, the world's human rights record is atrocious. The U.N. recently released a study concluding over half the world's population is currently being denied fundamental human rights. 6 In light of this background, this comment will trace the doctrine of 1

Jean-Pierre L. Fonteyne, The Customary International Law Doctrine of Humanitarian Intervention, 4 Cal. W. Int'l L.J. 203, 214 (1974); 2 Terry Atlas, Chicago Tribune, Oct. 19, 1993, at N1. 3 Farooq Hassan, Realpolitik in International Law: After Tanzanian-Ugandan Conflict “Humanitarian Intervention” Reexamined, 17 Williamette L. Rev. 859, 859 (1981). 4 A.H. Robertson & J.G. Merrills, Human Rights in the World 2 (1989). 5 Id. at 1. 6 UN: Rights Denied Half World's People, Boston Globe, Apr. 19, 1993, at A53. 396

unilateral humanitarian intervention from its origins throughout the centuries, examine its fundamental pillars and their movements through history, and argue that a right of unilateral humanitarian intervention exists.

HISTORICAL DEVELOPMENT OF THE DOCTRINE

The international law concept of customary international law may be helpful in resolving the dispute over whether unilateral humanitarian interventions are legal or illegal. If unilateral humanitarian intervention rose to the level of customary international law, then the contemporary legality of this doctrine is easier to defend. Conversely, if this doctrine was never integrated into customary international law, then its prohibition in the modern day world is easier to support. An action becomes an international custom when there is “evidence of a general practice accepted as law.”7 Beginnings of the Doctrine of Humanitarian Intervention The doctrine of humanitarian intervention is not a creature of the Technological Age, Cold War, or the New World Order, but was a doctrine based upon natural law created centuries ago. Historical references to this doctrine are extremely important as society must not simply declare what should be done now, but must consider the evolution of humanitarian intervention. As early as the thirteenth century, St. Thomas Aquinas made references to the right of one sovereign to intervene in the internal affairs of another if subjects were being greatly mistreated. In the seventeenth century, Grotius wrote, “if a tyrant . . . practices atrocities towards his subjects, which no just man can approve, the right of human social connexion (sic) is not cut off in such case.” 8 Both of these quotes provide a strong basis for concluding a unilateral right to intervene for humanitarian purposes did exist at one time. In the nineteenth century, the doctrine of humanitarian intervention received its greatest support. In one instance, the U.S. unilaterally intervened into Cuba in 1898 to “put an end to barbarities, bloodshed, starvation, and horrible miseries. . . .”9 This century further emphasized the right that nations possessed to intervene unilaterally for humanitarian reasons. The Early Twentieth Century As this century began, the majority of writers continued to recognize the existence of the doctrine of humanitarian intervention. In 1904, Borchard, a British legal scholar, noted “where a state under exceptional circumstances disregards certain rights of its own citizens, over whom presumably it has absolute sovereignty, the other states of the family of nations are authorized by international law to intervene on the grounds of humanity.”10 The doctrine of unilateral humanitarian intervention was accepted for at least six hundred years, was embodied into customary international law, and provided that a state could intervene either to protect the lives or human rights of individuals, generally their nationals, but occasionally nationals of the target states, who were threatened while living in other states. 11 The doctrines changed substantially following World War II. Changes in the Doctrine between the World Wars After World War I, nations became horrified about the possibility of another world war, and as 7

Statute of the International Court of Justice, Art. 38 (1)(b). H. Grotius, De Jure Belli Esti Pacis 438 (Whewell trans., 1853), quoted in Fonteyne, supra note 1, at 214. 9 Franck & Rodley, supra note 9, at 285 (quoting Fitzgibbon, Cuba and the United States, 1900-1935, 22 (1935)). 10 E. Borchard, The Diplomatic Protection of Citizens Abroad 14 (1916), reprinted in Bazyler, supra note 1, at 571. 11 Richard B. Lillich, Preface to Humanitarian Intervention and the United Nations xii, xii (Richard B. Lillich ed. 1973). 397 8

nations began to distrust one another, the permissibility of the use of force began to dwindle. From the time period of the First World War to the end of the second, the policy and core of the language by which the community sought to deprive nations of the unlimited use of self-help were arguably put in place. In the Atlantic Charter, both the U.S. and U.K. declared, “(We) believe that all nations of the world, for realistic as well as spiritual reasons must come to the abandonment of the use of force.” 12 Conventional international law of the period following the formation of the League of Nations slowly began to tilt towards prohibiting the unilateral use of force by states. The Kellogg-Briand pact of 1928 was an attempt to prohibit the use of force. It “condemned recourse to war”13 and declared that all settlements “shall never be sought except by pacific means.” Hence, the commentators, as usual, did not agree on the effect of the treaties in the early twentieth century. Other commentators, however, disputed that conclusion. The minority view in the pre-World War II era rejected the legality of humanitarian intervention because “(t)he acts of inhumanity, however condemnable they may be, as long as they do not affect nor threaten the rights of other States, do not provide the latter (an intervening state) with a basis for lawful intervention. . . .” In addition, some commentators concluded a unilateral right did not exist because cases used to support such claims were not really humanitarian at all but facades for self-interested intervention.14 Such a conclusion does not follow from the evidence because the existence of self-interested interventions does not mandate a prohibition on humanitarian interventions but merely indicates a lack of information to determine whether humanitarian interventions were legal. As discussed above, ample evidence suggesting a right to unilateral humanitarian intervention existed prior to World War II. At this juncture in history, the status of customary law on the unilateral use of force for humanitarian interventions was murky. Six hundred years of legal humanitarian interventions had recently encountered roughly twenty-five years of mild opposition. The U.N. Charter aimed at providing the guiding light for international behavior. The creation of the U.N. Charter, however, continued the trend of the early part of the twentieth century by failing to clearly express the state of the law regarding humanitarian intervention.

CREATION OF THE U.N. AND IMPLICIT TENSIONS OF THE CHARTER

The creation of the United Nations in 1945 brought with it a multilateral treaty. Nations have not questioned the pacta sunt servanda of the U.N. charter.15 The problem, however, is determining the precise meaning of the Charter and balancing some of the Charter's provisions against others. The U.N. Charter's purposes include both “maintaining international peace and security, and . . . taking effective collective measures . . . for the suppression of acts of aggression . . . “ 16 and “promoting and encouraging respect for human rights and for fundamental freedoms for all. . . .” The Charter's provisions have created implicit tensions between international law concepts of sovereignty, non-intervention, and human rights. In fact, the U.N. system creates a paradox. If one nation allows a second nation to violate the human rights of a second nation's citizens, the first nation has violated Article 55 by failing to promote human rights whereas if the first nation intervenes, she has violated Article 2(4) by using force and possibly article 2(7) by interfering in another nation's internal affairs. This raises the question of how this predicament can be resolved. Before this debate can be resolved, however, the concepts of 12

Atlantic Charter, Aug. 14, 1941, U.S.-U.K., 55 Stat. 1603, E.A.S. No. 236. Kellogg-Briand Pact, Aug. 27, 1928, Art. 1, 46 Stat. 2343, T.S. No. 796, 94 L.N.T.S. 57. 14 Frank & Rodley, supra note 9, at 283-85. 15 Vienna Convention on the Law of Treaties, opened for signature, May 23, 1969, (entered into force January 27, 1980) 1155 U.N.T.S. 331, reprinted in 8 I.L.M. 679 (1969) (hereinafter Vienna Convention). 16 U.N. Charter art. 1, _ 1. 398 13

sovereignty, non-intervention, and human rights must to be understood in order to determine whether the unilateral intervention for humanitarian purposes is permitted or prohibited under the U.N. Charter. Respecting Sovereignty The notion that a sovereign shall be able to govern her own land without interference from outside nations is a well known and long-standing concept within customary international law. In 1849, the Supreme Court of France insisted, “the reciprocal independence of states is one of the most universally respected principles of international law.”17 The British courts were of the same opinion as the French, “the absolute independence of every sovereign authority, and of the international comity . . . induces every sovereign state to respect the independence and dignity of every other sovereign state. . . .” By the beginning of the twentieth century this right became somewhat more limited, but the public acts of one sovereign were still not to be questioned by other nations. It appears clear the creators of the U.N. wanted to assure all nations of this customary right to independence, the undisturbed enjoyment of autonomy within their own territory, and their right to be left alone.18 This independence of nations to decide for themselves, how to govern was incorporated into the U.N. Charter: “nothing contained in the present Charter shall authorize the United Nations to intervene in matters which are essentially within the domestic jurisdiction of any state. . . .”19 Thus, the Charter makes quite clear its aim to prohibit intervention in domestic matters of a nation when the consequences fall solely within the borders of the decision- making state. The Non-Intervention Principle At the inception of the U.N., its creators had just witnessed the atrocities of the second of two world wars in a span of under thirty years. They decided one paramount value of the new world was peace. Universal agreement existed at the end of World War II demanding that the status quo of territorial boundaries prevailing at that time must not be changed by any use of force. Many parts of the U.N. Charter reflect this desire for a prohibition on the use of force. Three provisions are devoted to emphasizing the desire for eliminating the use of force. First, article 2(3) states, “all Members shall settle their international disputes by peaceful means. . . .”20 Second, article 2(4) states “all members shall refrain . . . from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations.”21 In addition, article 2(7) states all nations are to respect all others' decisions that affect solely their internal affairs. All three parts of the Charter's second paragraph clearly emphasize the desire for peace over war. In addition, in order to prevent hasty decisions by a single state that might jeopardize the peace, the Charter emphasizes the need for collective over unilateral action. The Charter stresses that “effective collective measures” be taken to ensure peace.22 In order to enhance the possibility of collective action, the Charter created the Security Council which consists of five permanent members and ten members serving two year terms. 23 The creators of the U.N. conferred on the Security Council, “primary responsibility for the maintenance of international peace and security. . . .”24 One major responsibility involves determining when breaches of the peace may transcend article 2(7)'s domestic affairs provision and hence become matters of international concern. In case of breaches of the peace, “if the Security Council deems that the continuance of the dispute is in fact likely to endanger the maintenance of international peace and security, it shall decide whether to take action” 25 Further, “the Security Council shall determine the existence of any threat to the peace, breach of the peace, or act of

17

(quoting Spanish Government v. Lambige et Pejol, D.P.I. 5, 9 (1849). Louis Henkin, The Use of Force: Law and U.S. Policy in Right v. Might 39 (L. Henin et al. eds. 1991). 19 U.N. Charter art. 2, _ 7. 20 U.N. Charter art. 2, _ 3. 21 U.N. Charter art. 2, _ 4. 22 U.N. Charter art. 1, _ 1. 23 U.N. Charter art. 23 24 U.N. Charter art. 24 25 U.N. Charter art. 37, _ 2. 399 18

aggression and shall make recommendations, or decide what measures shall be taken.” 26 Emphasis on Human Rights The protection of human rights through international legislation was a revolutionary idea at the time of the Charter because traditional international law had no place for it at all. Yet, after World War II, the world, through the Nuremberg Trials, realized the heinousness of the atrocities committed against human beings and vowed never to let those crimes happen again. The U.N. Charter emphasizes the tremendous importance in recognizing and promoting human rights world-wide. Article 55 of the Charter is devoted solely to human rights, “the United Nations shall promote . . . universal respect for . . . and observance of, human rights. . . .” 27 Article 56 provides “all members pledge themselves to take joint and separate actions in co-operation with the Organization for the achievement of the purposes set forth in Article 55.” Several other provisions are also related to the protection of human rights. 28

Unilateral Humanitarian Intervention and Article 2(4) of the Charter Subject and Method of Interpretation It has been suggested that unilateral humanitarian intervention is compatible with Article 2(4)29 of the Charter. Under this theory, such intervention violates neither the territorial integrity nor the political independence of any State, as its objective is to stop the atrocities and not to annex part of the State's territory or create a dependent colonial government. Furthermore, unilateral humanitarian intervention is not “inconsistent with the purposes of the United Nations,” as stated in the preamble of the Charter. The Charter is sometimes called the “constitution” of the international community. This conclusion is usually made for three reasons. First, the Charter “is a constituent instrument defining the structure of the Organization . . . and the rights and duties of its members. Second, it was intended to endure not just for present, or for foreseeable future, but for ‘succeeding generations.”’ 30 Third and finally, pursuant to Article 103, it provides for its own primacy over other treaties. 31 In spite of its importance, the Charter is technically a multilateral treaty subject to regular treaty interpretation according to customary international law. The Vienna Convention cannot be applied retroactively pursuant to its article 4,32 but articles 31 and 32 can be taken to reflect customary

26

U.N. Charter art. 39 U.N. Charter art. 55. 28 Article 13 authorizes the General Assembly to make studies and recommendations about human rights. Article 62 authorizes the Economic and Social Council to make recommendations to promote human rights. Article 68 requires the Economic and Social Council to st up commissions to promote human rights. Article 76 makes the promotion of human rights one of the basic objectives of the trusteeship system. 29 U.N. Charter art. 2, para. 4 (“The Organization and its Members, in pursuit of the Purposes stated in Article 1, shall act in accordance with the following Principles: ... 4. All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations.”). 30 Blaine Sloan, The United Nations Charter as a Constitution, 1 Pace Y.B. Int'l L. 61, 116 (1989). 31 U.N. Charter art. 103 (“In the event of a conflict between the obligations of the Members of the United Nations under the present Charter and their obligations under any other international agreement, their obligations under the present Charter shall prevail.”). 32 Vienna Convention, supra note 11, art. 4 (“Without prejudice to the application of any rules set forth in the present Convention to which treaties would be subject under international law independently of the Convention, the Convention applies only to treaties which are concluded by States after the entry into force of the present Convention with regard to such States.”). 400 27

international law; such view was affirmed by the ICJ.33 In addition, article 5 of the Vienna Convention states that it applies to “any treaty which is the constituent instrument of an international organization.”34 Textual Interpretation The key words of Article 2(4) of the Charter are the terms “territorial integrity” and “political independence.” Pursuant to article 31(1) of the Vienna Convention, a treaty shall be interpreted “in accordance with the ordinary meaning to be given to the terms of the treaty.” And “the usual method of ascertaining this “ordinary meaning” is by recourse to dictionaries.” The Oxford English Dictionary defines “integrity” as “the condition of having no part or element taken away or wanting; undivided or unbroken state.” 35 These words imply that the term of integrity has to be read as inviolability. 36 “Independence,” pursuant to The Oxford English Dictionary definition, means “the condition or quality of being independent; the fact of not depending on another; exemption from external control or support; freedom from subjection, or from the influence of others; individual liberty of thought or action.” Black's Law Dictionary states that “independence” is “a country's freedom to manage all its affairs, whether external or internal, without control by other countries.” 37 This expansive approach to Article 2(4) of the Charter was also taken by the ICJ in the Corfu Channel case: The United Kingdom argued that a minesweeping operation “threatened neither the territorial integrity nor the political independence of Albania. Albania suffered thereby neither territorial loss nor any part of its political independence.” Though the argument was not specifically addressed in the judgment, the Court's finding that the operation violated Albanian sovereignty impliedly rejects it. The second question is how to interpret the second, ambiguous part of Article 2(4) of the Charter. The words “or in any other manner inconsistent with the Purposes of the United Nations” might have an inclusive meaning, that any other use of force is also illegal, or an exclusive one, that the use of force consistent with the purposes of the UN is legal. Under a purely textual interpretation, both conclusions are possible. Systematic Interpretation Systematic interpretation is based on the “context” of other treaty provisions. Together with Article 2(4), other Charter articles must be analyzed. Unilateral humanitarian intervention must be matched with the obligation to settle disputes by peaceful means pursuant to Article 2(3), with the notion of domestic jurisdiction pursuant to Article 2(7), with General Assembly declarations, and also with the powers of the Security Council pursuant to Article 24(1). The relations of unilateral humanitarian intervention with the purposes of the UN according to Articles 1(3) and 55 and the preamble of the Charter will be examined in the section on teleological interpretation. Article 2(3) of the Charter imposes on UN members the duty to settle their disputes by peaceful means, “in such a manner that international peace and security, and justice, are not endangered.”38 Nevertheless, sometimes a state, through genocide or other crimes under international law, endangers “international peace and security, and justice,” and refuses to settle the problem “by peaceful means.” Since Article 2(3) deals with “international peace and security, and justice,” it would make no sense to interpret this provision as a shield for those who commit these crimes and endanger “peace, security, and justice.” In a situation where all diplomatic means have been exhausted, ius cogens rules concerning the basic rights of human beings must take precedence over Article 2(3), according to the general principle of lex superior derogat inferiori. 33

Malcolm N. Shaw, International Law 839 (2003). Vienna Convention, art. 5. 35 Oxford English Dictionary 1066 (J. A. Simpson & E. S. C. Weiner eds., 1989). 36 See Albrecht Randelzhofer, Article 2(4), in The Charter of the United Nations: a Commentary 106, 117 (Bruno Simma ed., 1994). 37 “Independence,” in Black's Law Dictionary 785 (8th ed., 2004). 38 U.N. Charter art. 2, para. 3 (“All Members shall settle their international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered.”). 401 34

Article 2(7) of the Charter prohibits the UN from intervention “within the domestic jurisdiction of any state.” This provision, related to the doctrine of state sovereignty, deals only with the relationship between the UN and the States. Therefore, Article 2(7) itself is not a legal impediment to unilateral humanitarian intervention, which is by definition conducted by one or more States against another State without UN participation. Nonetheless, unilateral humanitarian intervention is in conflict with the international customary law principle of non-intervention, the General Assembly's 1970 Declaration on Friendly Relations, and the 1981 Declaration on the Inadmissibility of Intervention. 39 These resolutions cover relations among States. The often-cited Declaration on Friendly Relations contains “the principle concerning the duty not to intervene in matters within the domestic jurisdiction of any State, in accordance with the Charter.” The language of the Declaration seems to be analogous to Article 2(7) of the Charter, but in fact, “it clearly goes beyond the various Charter provisions of Article 2.”40 In particular, the Resolution defines more broadly the scope of domestic jurisdiction. 41 Under the Resolution, unilateral humanitarian intervention is prima facie illegal. But is this Resolution consistent with current customary international law? “The concept of domestic jurisdiction signifies an area of internal State authority that is beyond the reach of international law.” There is no doubt that the “area of internal State authority . . . beyond the reach of international law” is much smaller today than it was in 1945. Surprisingly, it is hard today to find an internal affair of a State that would be completely beyond the reach of international law. There are certainly matters that still fall under the category of domestic jurisdiction, and matters that are in a “grey zone,” and matters that are no longer considered a domestic-jurisdiction issue at all, such as genocide. In this extreme situation, however, the defense of domestic jurisdiction or state sovereignty does not work. Perhaps the most important part of the Charter that must be read together with Article 2(4) is Article 24(1), as well as all of Chapter VII. Article 24(1) of the Charter provides for the Security Council's “primary responsibility for the maintenance of international peace and security.” A unilateral action within the multilateral system of the Charter is highly controversial under current circumstances. Speaking for what the law is, the power to authorize humanitarian interventions belongs to the Security Council and not to a group of states. Therefore, Article 24(1) makes unilateral humanitarian intervention incompatible with the Charter. Nevertheless, what the law ought to be, customary international law or interpretation through practice may enable bypassing of the Security Council in the future. There are some international legal trends that cannot be ignored. When the ICJ dealt with Article 24 of the Charter in the Nicaragua case, it held that “the Charter accordingly does not confer exclusive responsibility upon the Security Council for the purpose.” The ICJ meant responsibility within the UN constitutional system in this case, but in an extreme situation, when the Security Council is unwilling or unable to protect the victims of genocide, Article 2(4) may allow transfer of part of this responsibility back to states that are willing and able to act. The subject of transfer would not be the broad “responsibility for the maintenance of international peace and security,”42 but rather a new “responsibility to protect” the people from serious human rights violations, which was endorsed by the High-level Panel on Threats, Challenges and Change as the “emerging norm.”43 39

Declaration on the Inadmissibility of Intervention and Interference in the Internal Affairs of States, G.A. Res. 103, U.N. GAOR, 36th Sess., U.N. Doc. A/RES/36/103 (Dec. 9, 1981). 40 Anthony D'Amato, Domestic Jurisdiction, in 1 Encyclopedia of Public International Law 1090, 1093 (R. Bernhardt ed., 1992). 41 See Declaration on Friendly Relations, supra note 35 (“No State or group of States has the right to intervene, directly or indirectly, for any reason whatever, in the internal or external affairs of any other State. Consequently, armed intervention and all other forms of interference or attempted threats against the personality of the State or against its political, economic and cultural elements, are in violation of international law.”). 42 U.N. Charter art. 24, para. 1. 43 Report of the High-level Panel on Threats, Challenges and Change, 57, para. 203, U.N. Doc. A/59/565 (2004), available at http:// www.un.org/secureworld/report.pdf. 402

The concept of the “responsibility to protect” was first recognized by the International Commission on Intervention and State Sovereignty (ICISS) and embraces three specific responsibilities: “to prevent,” “to react,” and “to rebuild.”44 The ICISS was an independent body, intended to support the UN, funded by the governments of Canada, the United Kingdom, and Switzerland, and various foundations. Its mandate was to promote a comprehensive global debate on the relationship between intervention and state sovereignty. The ICISS reported back to the UN Secretary-General and the international community on this issue in December 2001.45 The ICISS report relies on two principles: A. State sovereignty implies responsibility and the primary responsibility for the protection of its people lies with the state itself. B. Where a population is suffering serious harm, as a result of internal war, insurgency, repression or state failure, and the state in question is unwilling or unable to halt or avert it, the principle of non-intervention yields to the international responsibility to protect.

ACTIONS TAKEN BY STATES SINCE 1945

The actions taken by states since the implementation of the Charter are an important indication of whether or not states believe they still possess the customary right to unilaterally intervene for humanitarian purposes. These actions states have taken must be examined when trying to determine whether the U.N. Charter regards unilateral humanitarian intervention as lawful or unlawful.46 Rescue Missions The easiest unilateral humanitarian interventions to justify are those that are classified as “true” rescue missions. A “true” rescue mission occurs when a third nation has captured nationals of other nations and at least one other nation takes swift, immediate action to recapture the hostages and return the former hostages and all forces back to their homeland as quickly as possible while doing as little damage and spilling as little blood as possible. The general rule for the protection of nationals is there must be an imminent threat of injury to one's nationals, a failure on the part of the targeted state to protect the nationals, and the intervention must be narrowly construed to limit injury and death.47 Proportionality is often also considered an important element in validating a rescue mission. Rescue missions are the exception to that rule as both sides generally agree that humanitarian rescue missions remain a nation's right and will not be condemned unless the mission is undertaken in an improper manner. Israel in Entebbe The most classic rescue mission occurred in 1976 when many Israeli citizens aboard an Air France airplane were hijacked by Palestinian terrorists who forced the place to land at the Entebbe Airport in Uganda. Israeli commandoes stormed the airport, rescued those hijacked, including non-Israelis, and immediately returned to Israel. The essential features of this intervention were that it was a limited armed intervention, both narrowly construed to only saving the hostages and proportional to the threat, with only one aim rescuing nationals being held as hostages in a foreign country whose lives were at substantial risk of death or serious harm while the government of the target country 44

Responsibility to Protect: Report of the International Commission on Intervention and State Sovereignty, at XI (Dec. 2001) [hereinafter ICISS Report], at http://www.iciss.ca/pdf/Commission-Report.pdf. 45 See International Commission on Intervention and State Sovereignty website, http://www.iciss.ca/mandate-en.asp. 46 Vienna Convention, at Art. 31, _ 3(b). 47 William C. Gilmore, The Grenada Intervention: Analysis and Documentation 59 (1984). 403

refused to intervene on their behalf. In this type of rescue situation, “the legal community has widely accepted that the Charter does not prohibit humanitarian intervention by use of force strictly limited to what is necessary to save lives.” U.S. in Grenada Even though the legal community has accepted the legality of unilateral rescue missions as humanitarian interventions, some “rescue” missions have failed to meet the basic requirements of a rescue mission and have been condemned by the world community because of the failure to limit the mission. One classic example of such a case occurred in 1983, when the U.S. sent over 8,000 troops to the island of Grenada partly to protect 1,000 Americans living on the island. The international reaction condemning the invasion was relatively swift. A Security Council resolution strongly condemning the armed intervention failed only because the U.S. exercised its veto power.48 A nearly identical resolution passed the General Assembly with 108 votes in favor, 9 against, and 27 abstentions. The most basic reason why the world community condemned the invasion is because this “rescue” mission clearly fell outside the bounds of the requirements for a proper rescue mission. First, the U.S. troops remained in Grenada for several months after the invasion and the evacuation, demonstrating they did not narrow this rescue mission to saving the lives of American nationals. This mission was so broadly construed that the U.S. troops remained on the island until after the establishment of a new government. Second, the armed intervention did not appear to be necessary to save lives of the American citizens. In short, the Grenada intervention did not meet the standards for a legitimate rescue mission and was appropriately sanctioned by the U.N. General Assembly. Non-Rescue Unilateral Humanitarian Interventions Interventions that do not qualify as rescue missions are more difficult to validate either under the U.N. Charter or through state action since the implementation of the Charter. This is partly due to the classicist-realist schism. Classicists maintain although nations sometimes have argued for a humanitarian intervention exception, even this benign exception to article 2(4) has never been accepted. Virtually every use of force in years since the Charter has been clearly condemned by virtually all states and all justifications except for self-defense have been rejected, classicists contend. According to these classicists, neither the claiming behavior of the intervenor nor the international community's response to claims and facts lends any support to the view that unilateral humanitarian intervention now enjoys any tolerance. Classicists point to modern day cases, especially India in East Pakistan and Tanzania in Uganda, in which humanitarian intervention seemed to have been the best method to justify the intervention. Both intervenors had solid grounds to assert a humanitarian justification for their actions, but their failure to even assert a humanitarian intervention defense, classicists claim, demonstrates that such a defense must not exist. French in the Central African Republic At least one unilateral humanitarian intervention was never condemned and stands for the proposition that the right to unilaterally intervene for humanitarian purposes does exist if done properly. Jean-Bedel Bokassa was the emperor of the Central African Republic (“C.A.R.”), and the atrocities his regime committed were well known. In 1979, Bokassa ordered the torture and execution of several schoolchildren. In response, 1,800 French troops combined with a group of C.A.R. citizens overthrew Bokassa in a bloodless coup. Only three nations voiced their objection to the intervention. Even classicists acknowledge this intervention “could be accepted as humanitarian in intent and effect. . .” This intervention can only be justified as a unilateral humanitarian intervention permitted by international law as self-defense and rescue cannot in any way pertain to this particular example. This intervention provides a paradigm of how an intervening nation must act in order to legally intervene unilaterally for humanitarian reasons. The lessons to be learned from this intervention provide that a nation must be driven by humanitarian motives to intervene for humanitarian purposes. Second, the targeted nation must be grossly violating its citizens' human rights. Third, the mission must be narrowly targeted to the human rights violations with as little blood 48

J.S. Davidson, Grenada 145 (1987). 404

as possible spilled in the process of liberating people from those human rights abuses. Fourth, the territory of the former nation must not be conquered or annexed by the intervening nation. Fifth, the intervening army must pull out as quickly as possible after the purposes of the mission have been completed. According to this invasion and the response of the international community, if all these conditions are met, then the unilateral humanitarian intervention is lawful. India and East Pakistan Not all unilateral interventions for humanitarian purposes are clearly as lawful or as accepted as the French invasion of C.A.R. In 1971, in response to a massacre of East Bengalis by the Pakistani government, the Indian government unleashed a large-scale military force in East Bengal to stop the perpetuation of the massive human rights violations occurring in East Bengal. Commentators' reaction to this intervention painted two completely different pictures of the intervention and the result. One side vigorously challenged the lawfulness of India's intervention for human rights. Some commentators vigorously challenged the legality of the intervention by relying mainly on the danger of abuse arguments. 49 Other commentators, by noting the 104-11-10 vote in the General Assembly, believed the world strongly condemned India for their actions in Pakistan. 50 Classicists believe the world condemned this intervention and believe this intervention cannot possibly stand for the proposition that unilateral humanitarian intervention measures are lawful. Others argued the majority of states, rather than condemning India for violating article 2(4) actually implicitly acknowledged an exception to article 2(4) in this particular unilateral humanitarian intervention example. The Security Council failed to adopt any resolutions regarding this violation of human rights and intervention. The General Assembly's resolution, contrary to classicist interpretation, called for Pakistan to stop the human rights atrocities occurring within Pakistan and for both sides to cease all hostilities. In this view, the General Assembly refused to take sides in this matter and actually balanced human rights violations and the need for peace not by outwardly condemning either of the parties but by calling for a restoration of the peace which included the cessation of human rights abuses in Pakistan. In short, the U.N. complied with the Charter by calling for an end to both the human rights violations and the armed conflict between India and Pakistan. Analyzing this intervention in terms of the C.A.R. lawful humanitarian intervention reveals that this is a borderline case of a lawful intervention. First, India certainly had humanitarian motives for their invasion. Although the Pakistani atrocities forced many to flee Pakistan and enter India giving rise to economic reasons for intervening, India's primary motivation was humanitarian. There can be no dispute that Pakistan was grossly violating the human rights of its citizens. This intervention could plausibly be challenged on the ground that the Indian government did not narrowly tailor its intervention to the human rights abuses or possibly did not pull out fast enough. Further, even though the Indian government itself did not capture any territory from this intervention, the nation of Bangladesh was formed as a result of this armed conflict. Despite these possible flaws in claiming a lawful intervention, this author believes the General Assembly's response was an indication that the world community agreed in principle with India's actions. Tanzania and Uganda Another example of a questionably lawful humanitarian intervention occurred between Tanzania and Uganda. In 1978, President Amin's troops from Uganda invaded its neighbor Tanzania, captured and annexed over 700 square miles of formerly Tanzanian territory before retreating back to Uganda within the month. After a precarious two-and-one-half month negotiation session, Tanzania took the offensive and attacked Amin's troops and continued to attack well after Amin offered peace settlements. Amin's government, over the eight years he ruled Uganda, was clearly responsible for a brutal and repressive regime that killed an estimated 300,000 Ugandans. Neither the Security Council

49

Frank & Rodley, supra note 9, at 275-76. Thomas M. Franck, Of Gnats and Camels: Is There a Double Standard at the United Nations? 78 Am. J. Int'l L. 811, 816-17 (1984) 405 50

nor the General Assembly condemned Tanzania's use of force. Similarly, the leaders of the African nations were silently thankful that Amin was overthrown. In this type of case, when the leader of a country is overthrown, classicists can always point to the “political independence” clause of article 2(4) to denounce the otherwise lawful humanitarian invasion. The U.N. community's refusal to denounce this invasion shows that if the atrocities of a government are so overwhelmingly heinous, then even if a humanitarian intervenor oversteps some bounds, the international community will not condemn the invasion. Somalia The Security Council's evaluation of the situation in Somalia resulted in Resolution 794, which found that the unfolding human rights crisis in Somalia and the obstacles to the delivery of humanitarian assistance constituted threats to international peace and security. 51 Accordingly, the Resolution authorized all necessary means to establish a secure environment for relief efforts. 52 The causes and effects of the crisis in Somalia appeared to be entirely internal, a fact reflected in the language of the Resolution, the statements preceding its adoption, and the Secretary General's letter. 53 Although regional instability54 was cited as a justification for intervention, the thrust of the Resolution and the rationale supporting the use of force centered around Somalia's internal human rights crisis and the impediments to humanitarian assistance efforts. The Council's objective in authorizing the use of force was to create a secure environment for international aid agencies to deliver humanitarian assistance such as food and medicine. The use of force was limited to securing a safe environment for this assistance, thus satisfying the principle of proportionality. The operation in Somalia may also be another step towards mandating the delivery of humanitarian aid without the consent of the sovereign state. Given the absence of any centralized authority in Somalia, there was, of course, no entity from which to obtain consent. The governmental void in Somalia presented a unique situation, a fact echoed by the members of the Security Council.55 The void undoubtedly made this course of action more palatable and perhaps even possible. Hence, the impact of this resolution on the concept of sovereignty is difficult to discern. Haiti The Haitian scenario was arguably not a humanitarian intervention. Though both the General Assembly and the Security Council voiced concerns over human rights abuses by the de facto government of Haiti,56 addressing these abuses was not at the heart of the Security Council's resolution to use force in this situation.57 U.N. Resolution 940 expressed grave concern regarding Haiti's deteriorating social order and, in particular, noted the systematic violations of civil liberties and the desperate plight of Haitian refugees. Yet, in authorizing the use of force under Chapter VII, the express purposes of the U.N. intervention were to facilitate the departure of the Haitian military leadership, to secure the prompt return of the elected Haitian President, and to restore the legitimate authorities of the Haitian

51

S.C. Res. 794, at 1. The Security Council relied upon the Secretary General's evaluation of the situation in Somalia and his recommendations for a solution to the crisis. 52 In U.N. parlance, this authorization meant the use of force. 53 S.C. Res 794, U.N. Doc. S/PV.3145, supra note 28; Letter Dated 29 November 1992 from the Secretary-General Addressed to the President of the Security Council, U.N. SCOR, 47th Sess., U.N. Doc. S/24868 (1992) [hereinafter Letter Dated 29 November]. 54 U.N. Doc. S/PV.3145 55 U.N. Doc. S/PV.3145 56 G.A. Res. 48/151, U.N. GAOR, 48th Sess., U.N. Doc. A/RES/48/151 (1993); G.A. Res. 48/27, U.N. GAOR, 48th Sess., Supp. No. 49, at 30, U.N. Doc. A/RES/48/49 (1993); G.A. Res. 47/143, U.N. GAOR, 47th Sess., Supp. No. 49, at 219, U.N. Doc. A/RES/47/49 (1992); G.A. Res. 47/20, U.N. GAOR, 47th Sess., Supp. No. 49, at 21, U.N. Doc. A/RES/47/49 (1992); G.A. Res. 46/138, supra note 57, at 211; G.A. Res. 46/7, supra note 57; S.C. Res. 841, U.N. SCOR, 48th Sess., 3238th mtg. at 2, U.N. Doc. S/RES/814 (1993). 57 S.C. Res. 940, U.N. SCOR, 49th Sess., 3413th mtg. at 23, U.N. Doc. S/RES/940 (1994) [hereinafter S.C. Res. 940]. 406

government. While these objectives were designed to remove the de facto government that was the root cause of the human rights abuses, the actual goal appeared to be the reinstatement of Haiti's elected government. Unlike Resolution 794 on Somalia, Resolution 940 did not authorize the use of force specifically to deal with the humanitarian aspects of the crisis. Nor was the goal of Resolution 940 to end government repression, as was the case in Resolution 688 on Iraq. Therefore, the Security Council's operation in Haiti cannot be termed a humanitarian intervention, unless humanitarian intervention is defined to include the use of force to restore a democratically elected government--a proposition for which there is no evidence in international law. 58 U.S. in Afghanistan and UN Resolution 1368 The U.S. was offered nearly undisputed support regarding retaliatory efforts against these attackers. Beginning on 11 September, Security General Kofi Annan, released a statement condemning the attacks and included the statement that: “In such moments, cool and reasoned judgment is more essential than ever. We do not know yet who is behind these acts, or what objective they hope to achieve. What we do know is that no just cause can be advanced by terror.” 59 The Security Council met on September 12th, 2001, where it unanimously adopted UNSCR 1368. A brief summary of UNSCR 1368 states that the UN: Unequivocally condemns in the strongest terms the horrifying terrorist attacks which took place on 11 September 2001 in New York, Washington (D.C.) and Pennsylvania and regards such acts, like any act of international terrorism, as a threat to international peace and security (emphasis remains from original documentation). On 7 October 2001, the U.S. retaliation for the September 11th attacks led it to invade Afghanistan, under what the U.S. government termed the ‘War on Terrorism’. The UN Security Council went on to pass UNSCR 1378 which condemns “the Taliban for allowing Afghanistan to be used as a base for the export of terrorism by the Al-Qaida network and other terrorist groups and for providing safe haven to Osama Bin Laden, Al-Qaida and others associated with them, and in this context supporting the efforts of the Afghan people to replace the Taliban regime.” Additionally, UNSCR 1378 reiterated its support of international efforts to root out terrorism as established in UNSCR 1368. U.S. in Iraq The transition by the U.S. from having multilateral support against invading Afghanistan to combat al-Qaeda into the U.S. deciding it had the authority to invade the sovereign state of Iraq, only further promotes the reality that a state, and not the UN, remains the supreme voice in the decision to use force. While numerous member states supported the reaction of the U.S. government against Afghanistan, sovereign states in the Middle East spoke out against the U.S. government and their use of force, stating that they were concerned that the U.S. would stretch Article 51. These states were worried that the U.S. government would use force against any other Middle Eastern sovereign state that the U.S. suspected of supporting al-Qaeda. In this case and the others examined in this thesis, states justify their illegal use of force against another sovereign state by arguing that another state is a threat to security in a way that the UN is unable to stop. Due to the mounting historical examples of UN failure to prevent terrorist attacks, states are deciding that it is worth violating the UN Charter to achieve their own safety. These Middle Eastern states were concerned that the U.S. would establish its own connection between those who carried out the September 11th attacks and the states that they believed harbored these NSA.

58

One very prominent scholar has argued for an emerging human right to democratic governance. Thomas M. Franck, The Emerging Right to Democratic Governance, 86 Am. J. Int'l L. 46 (1992). He does not argue, however, that such governments are to be installed by the use of force. 59 Statement by Kofi Annan, 2001. Press Release (11 Sept. 2001), available at http://www.un.org/News/Press/docs/2001/SGSM7948.doc.htm 407

Summary of State Action

Some argue in continuing the right, the world must realize states will not lightly risk their international relations on behalf of the human rights of a third nation's citizens. Such interventions, they contend, undoubtedly would be undertaken with great prudence and infrequency, at most when there is a serious breach on a widespread scale and a consistent pattern of serious violations. Although perhaps comforting, this author also believes if this right could be exercised on an absolute basis, then, as the classicists painstakingly argue, humanitarian intervention could act as an open invitation for the stronger nations to use humanitarian intervention as a facade to intervene militarily into weaker nations at any time. In order to prevent those types of abuses and to promote the Charter's goal of peace, the U.N. ought to delineate some requirements or limitations on this right before a nation may justify a unilateral intervention via the defense of humanitarian intervention.

LIMITATIONS ON THE UNILATERAL RIGHT

The following is a list of requirements, borrowed from many international law scholars, that a nation ought to be required to take before intervening unilaterally for humanitarian purposes. First, before undertaking any unilateral action, unless completely futile, the Security Council must be consulted and fail to authorize collective action. Since one basis for unilateral intervention is the failure of the collective system, the Security Council must actually have knowledge of a situation and fail to act before the system can be declared a failure and unilateral action can be authorized. Second, time permitting, all measures to remedy the situation short of the use of force must be attempted unless it can be known that such efforts will be futile. Before acting unilaterally, a nation must adhere to the principles of the Charter. Since one of the pillars of the Charter is a desire for peace, other measures, such as diplomatic and economic measures, must be attempted before allowing a nation to intervene by using force. Third, a claim of humanitarian intervention must be examined in light of the record of human rights of the intervening country. This will limit the number of countries permitted to intervene for humanitarian purposes, but it will also prevent the absurd situation of abusive nations taking the position that they are more concerned about the condition of nationals in other counties than they are of nationals in their own country. Nations can rely on U.N. human rights records to determine if they are eligible to intervene unilaterally to prevent gross violations of human rights. Fourth, intervention must be done in proportion to the violation so as to prevent wide-scale abuse by the intervening nation from occurring. In order for an intervention to adhere to the proportionality principle, the number of nationals being abused must be significant. This will ensure that a nation refrains from deploying thousands of troops to stop single abuses as the U.S. did in Panama. Fifth, the intervention must be done for overriding humanitarian motives. In most circumstances, with ample scrutiny in our highly integrated world community, some self-interest can inevitably be found; however, if objectively a nation intervenes for humanitarian motives, the fact that some self-interest may arise should not prevent the nation from promoting human rights. 408

To ensure overriding humanitarian motives, nations must be required to focus their intervention narrowly on the abuses in the second nation which will probably be found with that nation's government. This requirement will be a tricky one because of the possibility of tinkering with a nation's “political independence.” A nation must not be able to use this right to implement a more friendly government but only to eliminate the gross human rights violations in other nations. Sixth, the U.N. delegate from Singapore and the former Secretary-General of the U.N. have both suggested that “like cases (of human rights violations) must be treated alike.” In principle, this is a great idea because it prevents discrimination from playing a role in humanitarian interventions. Unfortunately, with half the world suffering from human rights abuses, such a rule would be a death knell for all humanitarian interventions. Adoption of such a provision would be tantamount to prevention of intervention on the basis of humanitarian intervention and, at this time, must be rejected. Finally, the length of the intervention must be no longer than is necessary to eradicate the human rights violations. These conditions will enable nations to promote human rights while limiting the abuse of the doctrine. This requirement will help insure that a nation remains politically independent. After the intervention has eradicated the human rights violations, it is conceivable that the U.N. would agree to oversee governmental elections. In sum, all of these limitations are designed to prevent a nation from using unilateral humanitarian intervention as a facade for aggression aimed against the intervene nation. As all situations will be different factually, these requirements must be read in light of their purpose which is the elimination of human rights abuses while simultaneously not allowing nations to overstep their bounds by controlling smaller, weaker nations. In light of this, the intervention in Uganda, since the Amin government was extremely repressive, was correctly not condemned by the U.N. even though the Tanzanian troops continued to liberate Ugandan nationals after Amin acquiesced to holding additional peace talks.

Bibliography           

Jean-Pierre L. Fonteyne, The Customary International Law Doctrine of Humanitarian Intervention(1974) Annan, K. ‘We the Peoples,’ The Role of the United Nations in the 21st Century,(2000) p.48.Available from: http:// www.un.org/millennium /sg/report/full.htm [accessed 22 November 2007]. Blair, T., ‘Doctrine of the International Community’ Available from: http://www.number10.gov.uk/output/Page1297.asp [accessed 2 December 2007]. Bretherton, C., ‘Security after the Cold War: Towards a Global paradigm?’ in Charlotte Bretherton and Geoffrey Ponton ed., Global Politics: An introduction (Blackwell, Oxford, 1996). Brown, C and K. Ainley., Understanding International Relations, Third Edition Revised and Updated. (Palgrave Macmillan, Basingstoke, 2005). Buchanan, A., ‘Reforming the International Law of Humanitarian Intervention,’ in J. L. Holzgrefe and Robert O. Keohane ed., Humanitarian Intervention: Ethical, Legal, and Political Dilemmas (Cambridge University Press, new York, 2003). Farer, T. J., ‘Humanitarian Intervention before and after 9/11.’ in J. L. Holzgrefe and Robert O. Keohane ed., Humanitarian Intervention: Ethical, Legal, and Political Dilemmas (Cambridge University Press, New York, 2003). International Commission on Intervention and State Sovereignty Report (Online). Available from: http://www.iciss-ciise.gc.ca/pdf/Commission-Report.pdf. Pugh, M., ‘Peacekeeping and Humanitarian Intervention’ In Brian White, Richard Little and Michael Smith (Third Ed.). Issues in World Politics (Palgrave Macmillan, Basingstoke 2005). Roberts, A., ‘The United Nations and Humanitarian Intervention,’ in Jennifer M. Welsh ed., Humanitarian Intervention and International relations (Oxford University Press, New York, 2006). Wittman, A., Humanitarian Intervention in a Global Age, The World Today, Vol. 64 No.1 January 2008. 409

             

Rudi Guraziu, Is humanitarian military intervention in the affairs of another state ever justified?, Middlesex University, January 2008. Chan, Steve. International Relations in Perspective: The Pursuit of Security, Welfare, and Justice. New York: Macmillan, 1984. Nardin, Terry, and Melissa S. Williams, eds. Nomos Xlvii: Humanitarian Intervention. New York: New York University Press, 2006. Prost, Miriam Reidy. "'Humanitarian Intervention': An Ethical Dilemma." WCC Feature (April 17, 2000): http://www.wcc-coe.org/wcc/news/press/00/03feat-e.html. Slater, Jerome, and Terry Nardin. "Nonintervention and Human Rights." The Journal of Politics 48, no. 1 (Feb., 1986). Francis Kofi Abiew, The Evolution of the Doctrine and Practice of Humanitarian Intervention. The Hague/Boston: Kluwer Law International, 1999. Antonio Cassese, "Ex iniuria ius oritur: Are We Moving Towards International Legitimation of Forcible Humanitarian Countermeasures in the World Community?," in: European Journal of International Law, vol. 10 (1999). H. S. Fairley, "State Actors, Humanitarian Intervention and International Law: Reopening Pandora’s Box," in: Georgia Journal of Comparative Law, vol. 10 (1980). John Harriss (ed.), The Politics of Humanitarian Intervention. London-New York: Pinter, 1995. Stanley Hoffmann (ed.), The Ethics and Politics of Humanitarian Intervention. With contributions by Robert C. Johansen, James P. Sterba, and Raimo Väyrynen. (Notre Dame Studies on International Peace.) Notre Dame, Indiana: University of Notre Dame Press, 1996. Hans Köchler, The Use of Force in the New International Order. On the Problematic Nature of the Concept of Humanitarian Intervention. Occasional Papers Series No. 4. Vienna: International Progress Organization, 2000. Peter Malanczuk, Humanitarian Intervention and the Legitimacy of the Use of Force. [Inaugural Lecture, University of Amsterdam, 22 January 1993.] Amsterdam: Het Spinhuis, 1993. Fernando R. Tesón, Humanitarian Intervention. An Inquiry into Law and Morality. Irvington, N.Y: Transnational Publishers, 2nd ed. 1997. Abriew, Francis K.: Accessing Humanitarian intervention in the post cold War period, International Relations, Vol.14 No 2, August 1998.

410

Management I Pullman Bangkok King Power, DELTA 2013/1/26 Saturday 13:00-14:30 Session Chair: Prof. Jagdeep Jassel

B085 Integrated Framework: Creation of Causal Model of Ethical Organizational Climate, Lmx Quality, Career Commitment, and Turnover Intention Kijpokin Kasemsap︱Suan Sunandha Rajabhat University B086 Unified Framework: Developing a Causal Model of Transactional Leadership, Team Identity, Team Cooperation, and Team Innovation Kijpokin Kasemsap︱Suan Sunandha Rajabhat University B128 Believability and Consumer Perceptions of Scarcity Signals: Effects on Purchase Intentions Hsuan-Hsuan Ku︱Soochow University B265 Non-hospitable Policies in the Hospitality Industry: A Societal Analytical Study in Malaysian Hotels Jagdeep Jassel︱INTI International University Sandra Corlett︱Northumbria University Fiona Robson︱Northumbria University B329 Exploratory positive analysis about the measure intention to the Ecological Issue of Small and Medium-sized enterprises in Japan Masahiro Maruyama︱Meijigakuin University

411

B403 Mergers and Acquisitions in the Turkish Retail Sector Ibrahim Akgobek︱Selcuk University

412

B085 Integrated Framework: Creation of Causal Model of Ethical Organizational Climate, Lmx Quality, Career Commitment, and Turnover Intention Kijpokin Kasemsap Faculty of Management Sciences, Suan Sunandha Rajabhat University, Bangkok, Thailand E-mail address: kijpokinkasemsap@yahoo.com

Abstract Research objectives were to determine an integrated framework and to create a causal model of ethical organizational climate, LMX quality, career commitment, and turnover intention of aluminum plant employees in Thailand. The study reported the responses of 577 operational employees from 23 aluminum plants operating in different parts of Thailand. Data were analyzed with descriptive statistics using SPSS (version 11.5) and assessed with confirmatory factor analysis to confirm the heterogeneity of all constructs and path analysis to test the cause and effect relationships among main constructs of the study using LISREL (version 8) on a structured questionnaire containing standard scales of ethical organizational climate, LMX quality, career commitment, and turnover intention to determine the relationships of ethical organizational climate, LMX quality, career commitment, and turnover intention. Research findings indicated that dimensions of ethical organizational climate, LMX quality, and career commitment have mediated negative effect on turnover intention. Ethical organizational climate and LMX quality are positively linked to career commitment. Career commitment fully mediates the relationships between ethical organizational climate and turnover intention and between LMX quality and turnover intention. Keywords: Career Commitment, Ethical Organizational Climate, LMX Quality, Turnover Intention

Introduction Commitment phenomena have attracted considerable attention from academics and practitioners. Many observers have noted that employee commitment can be an important explanatory variable to worthwhile outcomes for organization [8] [35] [64]. Looking at competitive organizational climate, organizations seek to enhance employee performance and use different type of employment practices. On the other side, employee shows higher levels of expectations and requirements from organization with which they have forged relationships. Career commitment seems to be an important factor for career progression and development that is relevant to practical concerns of individual and organization to excel in their occupations or jobs. Moreover, career commitment involves self-generated goals and commitment to one’s own career which is influenced by number of factors such as personal, behavioral, and environmental decisions [46]. In organizational terms, commitment has been used to understand employee behaviors, thinking, and attitudes toward organization or work [55]. It is defined as one’s motivation to work in a particular vocation or as an act of commitment to trust or pledge to something or someone [30]. Apparently, commitment to career is important in that it involves the development of personal career goals and also gives identification and involvement with those goals [11]. Although there may be a conflict between organizational commitment and career commitment, the simultaneous occurrence of high levels of both forms of commitment may be desirable for organizations. As organizational commitment refers to the degree of loyalty shown by employees toward their organization, career commitment is related to employees’ motivation to work in a chosen vocation or in a chosen career role [9]. The two forms of commitment are not only compatible but they also can act as check and balance tool for each other [6]. Leader-member exchange (LMX), as developmental relationship between leader and member, can be a socioemotional resource for facilitating empowerment among employees. LMX theory focuses on the relationship between a supervisor and each individual subordinate [25].

413

Relationship between superior and subordinate develops because of their workplace interactions [24] [25] [26] [27] [39]. The leader can develop close relationships with only a few of his/her key subordinates (the high-quality LMX), while, sustaining a formal relationship with the rest of his/her group (the low-quality LMX) on the continuum basis. However, one implicit assumption of research exploring LMX theory is that, once developed, the quality of LMX remains relatively stable. Empirical findings indicated that the quality of LMX could stabilize in as early as two weeks [44] or two months [14]. High quality working relationship is sometimes referred to as partnership demonstrated by a high degree of mutual positive affect, loyalty, respect, and proficiency in their work. In contrast, the low quality working relationships are mainly governed by their work contract [41]. Superiors and subordinates in high quality working relationships receive superior’s support and guidance. Furthermore, subordinates who have high quality working relationships with their superior demonstrate higher levels of subordinate satisfaction and performance, lower levels of turnover intention and most importantly, better quality of assignments. On the other hand, superiors and subordinates in low quality working relationships may result in simple contractual relations, higher levels of supervisory control and directives, lower levels of subordinate satisfaction, higher levels of subordinate turnover and less desired assignments [39] [40]. A cornerstone of LMX theory is that supervisors have different relationships with each of their subordinates. The type of leader-member exchange with each subordinate can vary from low quality relationships (out-group members) to high quality relationships (in-group members). Thus, subordinates who are in-group members interact frequently with their leaders and have their leaders’ support, confidence, encouragement, and consideration, and they take on added duties or expend extra effort to achieve workgroup goals beyond contractual or transactional expectations [65] [73]. A positive relationship between LMX and preparedness for change is based on the idea that supervisors can provide opportunities for mastery experience, serve as role models, and support members’ career, which could give employees self-confidence needed to change jobs or task content within or between companies [60] [62]. Supervisory career support significantly predicts career satisfaction in their study of offshore outsourced IT firms in Sri Lanka [75]. Thus, it is likely that perceived good relationship with a supervisor will lead to higher career satisfaction. Four dimensions of LMX quality [17] [41]: affect (how much leader and member like each other), professional respect (the amount of respect they have for each others’ professional competences), loyalty (the extent to which leader and member would defend the other in front of others), and contribution (the follower makes to the performance of the team). In empirical studies, LMX – the quality of relationship between supervisor and subordinate – has shown to be related to employees’ perceived quality of HR practices: for example, in-group members are likely to have given more enriched work opportunities [36] and have more feelings of psychological and structural empowerment [37] than out-group members. Therefore, it is not surprising that LMX also positively influences employee satisfaction, commitment [21], justice perceptions [14] [56] [58]. On the other hand, LMX is negatively related to turnover [22] and intention to quit [71]. Supervisor-related antecedents play a critical role in employee turnover [52]. Constructing and maintaining good relationships between supervisors and subordinates provide a disincentive for employees to quit [52]. LMX examines the relationship quality between superiors and subordinates and specifies factors that determine the quality of relationship [42] [48]. Bad LMX is highly related to incongruence of values between supervisors and employees [68]. Quality of LMX is negatively related to intended turnover [21] and actual turnover [29]. Poor LMX has viewed as an undesirable attribute in an employment relationship and has observed to explain employees’ turnover decisions [28] [52]. As a consequence, when employees’ commitment is shattered, undesired turnover can occur [66]. Supervisory support (that could be seen as an outcome of LMX) is positively associated with affective commitment toward organization and negatively associated with turnover intentions [32]. Subsequently, ethical organizational climate describes organizational conditions and practices, based on the presence of power, trust, and role flexibility. Thus, as a reference for employee behavior, it can influence on employees’ ethical practice at the workplace. Ethical organizational climates in an organization are observable and they can also provide a basis for employees’ perception of acceptable and ethical behavior [2] [34] [70]. As such, organizational climate involves prevailing attitudes about an organizational standard concerning appropriate conduct within organization. This construct has received much attention since the development of a measure by [72]. They argued a number of different types of ethical organizational climates are possible to exist in organizations and classified them into several different sub-types from their empirical research [20] [53]. Ethic studies have utilized these elements and validated the measure of ethical organizational climates [13] [16] [38]. It is reasonable to argue that ethical organizational climate also affects career commitment. The link 414

between two constructs can be explained by the fairness heuristic theory [45]; that is, employees’ perceptions of fairness in one area can influence their perceptions of fairness in another area. Accordingly, an ethical organizational climate, which can affect employees’ justice judgments, plays an important role in how employees commit to their occupation and give a priority to develop their own career goals. For example, when organizations have principled, climate employees are more likely to feel they are given a fair opportunity for promotion or movement. Such perceptions, in turn, will stimulate a stronger commitment and a more positive attitude toward their personal career. Career commitment is a component of subjective dimension of career. It is defined as an affective concept which represents identification with a series of related jobs in a specific field of work and is behaviorally expressed in an ability to cope with disappointments in the pursuits of career goals [4]. One who shows more career commitment is able to persist in pursuing career goals, even if confronting obstacles and setbacks [11]. Career commitment has included in several integrative models of organizational bahavior to study its relationship with various work-related outcomes [4] [50] [57]. For example, it is positively and significantly related to both skill development [4] and job performance [15], whereas it is negatively related to actual turnover [7]. Leader-member exchange pertains to the quality of exchange relationship between an employee and his or her supervisor [17]. In general, this dyadic relationship is thought to range on a continuum from high to low quality and high quality exchanges are characterized by a higher level of trust, interaction, support, and rewards than low quality exchange [17]. For example, leaders in high quality LMX relationships rely heavily on subordinates to act in their stead [18] and encourage them to undertake more responsible activities [25]. Subordinates in such relationships interact frequently with their leaders and have their leaders’ support, confidence, encouragement, and consideration, and they take on added duties or expend extra effort to achieve workgroup goals beyond contractual or transactional expectations [65]. Many studies have shown that the strength of LMX relationships can predict organizationally significant outcomes including performance and attitudinal variables [21]. Effective LMX relations may be a function of being mentored by a leader and there is a direct connection with careers [23]. Employee turnover is a very critical issue since the direct and indirect costs of such movements can have a significant impact on the efficiency of organizations [1]. In several psychological models of turnover intentions, factors related to career commitment has been considered to be determinants of turnover intentions. Career satisfaction is relevant to this context. Individuals aimed at furthering career within organization associated with experience of organizational career management help [67]. Furthermore, if career commitment results from mentoring, the turnover will be decreased. Even though nowadays, it is reported that a careerist orientation is negatively related to internal work motivation and positively related to a disposition to change job [19]. Ethical organizational climate is strongly associated with career commitment [59] [63] [74]. LMX quality is a significant antecedent of career commitment [3] [11] [47] [61].

Material and Methods Data for this study were collected from 577 operational employees out of 7,346 operational employees working in the 23 aluminum plants in Thailand by using the Yamane formula [77] for a 96% confidence level with a 4% margin of error by the proportional random sampling method. All the constructs were operationalized using five-point Likert scales ranging from 1 (strongly disagree) to 5 (strongly agree). Data were analyzed with descriptive statistics using SPSS (version 11.5) and assessed with confirmatory factor analysis (CFA) to confirm the heterogeneity of all constructs and path analysis [33] to detect the cause-effect relationships among various dimensions of main constructs of the study using LISREL (version 8) on a structured questionnaire containing standard scales of ethical organizational climate, LMX quality, career commitment, and turnover intention, besides some demographic details like age, education, and tenure with the organization. Ethical organizational climate was measured using an eight-item scale developed by [13] comprising egoistic, benevolent, and principled climate. LMX qualtity was measured using a 12-item scale based on [41] comprising affect, loyalty, contribution, and professional respect. Career commitment was measured using a 12-item career commitment scale developed by [9] comprising career identity, career planning, and career resilience. Turnover intention was measured using a four-item scale based on [49] and [51].

415

Results An integrated framework and causal model were created. Research findings indicated that dimensions of ethical organizational climate, LMX quality, and career commitment have mediated negative effect on turnover intention. Ethical organizational climate and LMX quality are positively linked to career commitment. Career commitment fully mediates the relationships between ethical organizational climate and turnover intention and between LMX quality and turnover intention. EC

BC

PC

EOC

CRC

TOI

LEQ

AF

Fig. 1: Integrated Framework LY CT PR Key: EOC = Ethical Organizational Climate, EC = Egoistic Climate, BC = Benevolent

Climate, PC = Principled Climate, LEQ = Leader-Member Exchange Quality, AF = Affect, LY = Loyalty, CT = Contribution, PR = Professional Respect, CRC = Career Commitment, TOI = Turnover Intention

Discussion Regarding the integrated framework, there are lots of researchers studying the relationships of ethical organizational climate, LMX quality, career commitment, and turnover intention in a wide variety of fields. The integrated framework was positively compatible with the following research findings. Ethical organizational climate, LMX quality, and career commitment are positively linked to turnover intention. This recognition of career commitment as a mediator would presumably enhance managers’ ability to develop the appropriate strategies to combat the influences of bad LMX and poor ethical organizational climate on turnover intention. An interesting implication could be that, besides focusing on enhancing LMX and ethical organizational climate, all precursors of higher career commitment should receive more attention in order to reduce turnover intention. It may be because the organizations have not implemented career development programs or have made insufficient effort to institutionalize programs in their HR system. Thus, employees’ growth needs were hindered so far in company and their personal career commitment would provide significant impact in explaining their turnover intention. This suggests that when employees commit to their career in an organization lacking interest in employees’ careers, the employees appear to determine turnover intention. Managers and HR professionals can support employees’ career commitment by developing, improving, and delivering relevant practices, ensuring that the ethical organizational climate and LMX quality are such that career commitment can occur. Furthermore, organizations need to adopt strategies to enhance employees’ career satisfaction and potentially increase organizations’ ability to attract and retain these employees [5]. LMX quality and work outcome relationships are interpreted at the individual level of analysis [43]. LMX quality, group cohesiveness, and organizational climate exist at both individual and group level of analysis [10]. The link between transformational leadership and organizational commitment displays at both individual and group level [31]. Furthermore, the link between perceived supervisor support and commitment exists both at individual and at group level of analysis [69]. Leading employers are playing a large role in determining career paths of individuals through manpower planning, succession planning, job rotation, and company movers/transfers. While the role of organization has become more modest, there is a strong role for organization and career management. It includes things like meaningful job assignments, building developmental relationships, and helping people learn how to learn from their experiences and from others [54]. The availability of all practices in an organization can have high impact. Managers and HR professionals could adopt suggestions in such areas as 416

coaching/mentoring. The role of leader has changed from traditional hierarchical aspect to supportive aspect. Thus, coaching and mentoring have emerged as an important employee development methods. Specifically, managerial coaching, or manager-as-coach, is being emphasized in a number of organizations. HR professionals can effectively support managers by providing relevant practices and services. However, changing one factor alone will not help career commitment, if other factors are not in place. In other words, enhancing career commitment will require an integrated strategy, incorporating elements of culture management, leadership development, coaching/mentoring, and recruitment and selection. This is not an easy task, which is why organizations that are successful in building this type of career management systems are likely to have a sustainable competitive advantage.

Conclusion The purposes of this study were to determine an integrated framework and to create a causal model of ethical organizational climate, LMX quality, career commitment, and turnover intention for aluminum plant employees in Thailand. The findings showed that the ethical organizational climate, LMX quality, and career commitment have the strength to mediate negative effect on organizational performance. In relation to the integrated framework, this result was the extent to which ethical organizational climate, LMX quality, and career commitment have mediated negative effect on turnover intention. Ethical organizational climate and LMX quality are positively linked to career commitment. Career commitment fully mediates the relationships between ethical organizational climate and turnover intention and between LMX quality and turnover intention. Ethical organizational climates and trust relationships may be the most important factors to understand in order to explain and to predict the committed behavior of an employee. Employees need to be at least in working environment to get employees’ commitment having ethical procedures, policies, and interpersonal trust with supervisors. The influence of these factors is warranted within continued research on assessing effect of these contextual or relational factors for desired outcomes [53] [70]. By realizing full potential of ethical organizational climate and leader-member exchange within workplaces, managers and HR professionals could develop a complete picture of employee commitment and its outcomes. Career is considered in an internal labor market concerning low mobility. Managers and HR professionals can play a pivotal role in enhancing employees’ career satisfaction by providing supportive leadership such as coaching and mentoring and by facilitating improvement of ethical organizational climate and LMX quality to keep employee committed to the organization. Moreover, in today’s fast-paced business world, employees’ commitment to personal career needs to be understood and managed according to organizational characteristics in varying contexts. By doing so, managers and HR professionals will have new and different opportunities in their respective roles. In order to gain a better understanding of career commitment, researchers and practitioners need to take a perspective of social exchange. This follows from the possibility that individual’s career commitment may be a product of social exchange among employee and another party at work. For example, employee commitment and their outcomes in this study can be viewed as the result of a social exchange process in which employees perceive organization’s care and respect as consequence of ethical organizational climate and LMX quality. This study gives helpful guidance to HR professionals to implement strategy in which ethical organizational climate, LMX quality, and career commitment should be effectively utilized as a beneficial tool to reduce employees’ turnover intention and to improve organizational performance. Ethical organizational climate and LMX quality help organizations move toward lesser turnover intention through career commitment. Organizations aiming to decrease turnover intention and achieve business goals should focus on developing ethical organizational climate, LMX quality, and career commitment.

References [15] Abbsasi, S. M. and Hollaman, K. W., Turnover: The real bottom line, Public Personnel Management, 2000, pp. 333-342. [16] Appelbaum, S. H., Deguire, K. J. and Lay, M., The relationship of ethical climate to deviant workplace behavior, Corporate Governance, 2005, pp. 43-56. [17] Aryee, S. and Chay, Y. W., An examination of the impact of career-oriented mentoring on work commitment attitudes and career satisfaction among professional and managerial employees, British Journal of Management, 1994, pp. 241-249. [18] Aryee, S. and Tan, K., Antecedents and outcomes of career commitment, Journal of Vocational 417

Behaviour, 1992, pp. 288-305. [19] Barnett, B. R. and Bradley, L., The impact of organizational support for career development on career satisfaction, Career Development International, 2007, pp. 617-636. [20] Baugh, S. G. and Robers, R. M., Professional and organizational commitment among engineers: Conflicting or complementary? IEEE Transactional on Engineering Management, 1994, pp. 108-114. [21] Bedeian, A. G., Kemery, E. R. and Pizzolatto, A. B., Career commitment and expected utility of present job as predictors of turnover intentions and turnover behaviour, Journal of Vocational Behaviour, 1991, pp. 331-343. [22] Blau, G., A multiple study investigation of the dimensionality of job involvement, Journal of Vocational Behavior, 1985, pp. 19-36. [23] Carson, K. D. and Bedeian, A. G., Career commitment: Construction of a measure and examination of its psychometric properties, Journal of Vocational Behavior, 1994, pp. 237-262. [24] Cogliser, C. C. and Schriesheim, C. A., Exploring work unit context and leader-member exchange: A multi-level perspective, Journal of Organizational Behavior, 2000, pp. 487-511. [25] Colarelli, S. M. and Bishop, R. C., Career commitment: Functions, correlates, and management, Group and Organizational Studies, 1990, pp. 158-176. [26] Cullen, J. B., Parboteeath, K. P. and Victor, B., The effect of ethical climates on organizational commitment: A two-analysis, Journal of Business Ethics, 2003, pp. 127-141. [27] Cullen, J. B., Victor, B. and Bronson, W. J., The ethical climate questionnaire: Assessment of its development and validity, Psychological Reports, 1993, pp. 667-674. [28] Dansereau, F., Graen, G. B. and Haga, W. J., A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role-making process, Organizational Behavior and Human Performance, 1975, pp. 46-78. [29] Darden, W. R., Hampton, R. and Howell, R. D., Career versus organizational commitment: Antecedents and consequences of retail salespeople’s commitment, Journal of Retailing, 1989, pp. 80-106. [30] Deshpande, S. P., Ethical climate and the link between success and ethical behavior: An empirical investment of a non-profit organization, Journal of Business Ethics, 1996, pp. 315-320. [31] Dienesch, R. M. and Liden, R. C., Leader-member exchange model of leadership: A critique and further development, Academy of Management Review, 1986, pp. 618-634. [32] Dunegan, K. J., Duchon, D. and Uhl-Bien, M., Examining the link between leader-member exchange and subordinate performance: The role of task analyzability and variety as moderators, Journal of Management, 1992, pp. 59076. [33] Feldman, D. C. and Weitz, B. A., From the invisible hand to the glad hand: Understanding a careerist orientation to work, Human Resource Management, 1991, pp. 237-258. [34] Fritzsche, D. J., Ethical climates and ethical dimensions of decision making, Journal of Business Ethics, 2000, pp. 125-140. [35] Gerstner, C. R. and Day, D. V., Meta-analytic review of leader-member exchange theory: Correlates and construct issues, Journal of Applied Psychology, 1997, pp. 827-844. [36] Graen, G. B., Linden, R. C. and Hoel, W., Role of leadership in the employee withdrawal process, Journal of Applied Psychology, 1982, pp. 868-872. [37] Graen, G. B. and Scandura, T. A., A theory of dyadic career reality. In K. Rowland and G. R. Ferris (Eds.), research on personnel and human resource management (pp. 147-181). Greenwich, CT: JAI Press, 1986. [38] Graen, G. B. and Scandura, T. A., Toward psychology of dyadic organizing. In S. B. Cummings and L. L. Cummings (Eds.), research in organizational behavior (pp. 175-208). Greenwich, CT: JAI Press, 1987. [39] Graen, G. B. and Uhl-Bien, M., Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi domain perspective, Leadership Quarterly, 1995, pp. 219-247. [40] Graen, G. B. and Wakabayashi, M., Cross-cultural leadership making: Bridging American and Japanese diversity for team advantage. In H. C. Triandis, M. D. Dunnette and L. M. Hough (Eds.), Handbook of industrial and organizational psychology (pp. 415-446). New York, NY: Consulting Psychology Press, 1994. [41] Graen, G. B., Wakabayashi, M., Graen, M. R. and Graen, M. G., International generalizability of American hypotheses about Japanese management progress: A strong inference investigation, Leadership Quarterly, 1990, pp. 1-23. [42] Griffeth, R. W. and Hom, P. W., Retaining valued employees. Thousand Oaks, CA: Sage, 2001. [43] Griffeth, R. W., Hom, P. W. and Gaertner, S., A meta-analysis of antecedents and correlates of 418

[44] [45]

[46] [47] [48] [49] [50]

[51]

[52] [53] [54] [55] [56]

[57]

[58] [59]

[60] [61]

[62]

[63] [64] [65] [66]

[67] [68]

employee turnover: Update, moderator tests, and research implications for the new millennium, Journal of Management, 2000, pp. 463-488. Hall, T. D., A theoretical model of career subidentity in organizational settings, Organizational Behavior and Human Performance, 1971, pp. 50-76. Herold, D. M., Fedor, D. B., Caldwell, S. D. and Liu, Y., The effects of transformational and change leadership on employees’ commitment to change: A multilevel analysis, Journal of Applied Psychology, 2008, pp. 346-357. Ito, J. K. and Brotheridge, C. M., Does supporting employees’ career adaptability lead to commitment, turnover, or both? Human Resource Management, 2005, pp. 5-19. Joreskog, K. and Sorbom, D., LISREL 8: User’s reference guide. Chicago, IL: Scientific Software International, 1993. Key, S., Organizational ethical culture: Real or imagined? Journal of Business Ethics, 1999, pp. 217-225. Kwon, I. G. and Banks, D. W., Factors related to the organizational and professional commitment of internal auditors, Managerial Auditing Journal, 2004, pp. 606-622. Lapierre, L. M., Hackett, R. D. and Taggar, S., A test of the links between family interference with work, job enrichment and leader-member exchange, Applied Psychology: An International Review, 2006, pp. 489-511. Laschinger, H. K., Purdy, N. and Almost, J., The impact of leader-member exchange quality, empowerment, and core self-evaluation on nurse manager’s job satisfaction, Journal of Nursing Admistration, 2007, pp. 221-229. Leung, A. S., Matching ethical work climate to in-role and extra-role behaviors in a collectivist work setting, Journal of Business Ethics, 2008, pp. 43-55. Liden, R. C. and Graen, G. B., Generalizability of the vertical dyad linkage model of leadership, Academy of Management Journal, 1980, pp. 451-465. Liden, R. C., Graen, G. B. and Hoel, W., Role of leadership in the employee withdrawal process, Journal of Applied Psychology, 1982, pp. 662-674. Liden, R. C. and Maslyn, J. M., Multidimensionality of leader-member exchange: An empirical assessment through scale development, Journal of Management, 1998, pp. 43-72. Liden, R. C., Sparrowe, R. T. and Wayne, S. J., Leader-member enchange theory: The past and potential for the future, Research in Personnel and Human Resource Management, 1997, pp. 47-119. Liden, R. C., Wayne, S. J. and Sparrowe, R. T., An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships, and work outcomes, Journal of Applied Psychology, 2000, pp. 407-416. Liden, R. C., Wayne, S. J. and Stilwell, D., A longitudinal study on the early development of leader-member exchanges, Journal of Applied Psychology, 1993, pp. 662-674. Lind, E. A., The fairness heuristic: Rationality and ‘relationality’ in procedural evaluations, paper presented at the Fourth International Conference of the Society for the Advancement of Socioeconomics, Irvine, CA, 1992. London, M., Toward a theory of career motivation, Academy of Management Review, 1983, pp. 620-630. Major, D. A., Kozlowski, S. W., Chao, G. T. and Gardner, P. D., A longitudinal investigation of newcomer expectations, early socialization outcomes, and the moderating effects of role development factors, Journal of Applied Psychology, 1995, pp. 418-431. Maslyn, J. M. and Uhl-Bien, M., Leader-member exchange and its dimensions: Effects of self-effort and other’s effort on relationship quality, Journal of Applied Psychology, 2001, pp. 697-708. Mitchel, J. O., The effect of intentions, tenure and personal, and organizational variables on managerial turnover, Academy of Management Journal, 1981, pp. 742-751. Mobley, W. H., Griffeth, R., Hand, H. and Meglino, R., Review and conceptual analysis of the employee turnover process, Psychological Bulletin, 1979, pp. 493-522. Moore, J. E., Why is this happening? A causal attribution approach to work exhaustion consequences, Academy of Management Review, 2000, pp. 335-349. Morrow, P. C., Suzuki, Y., Crum, M. R., Ruben, R. and Pautsch, G., The role of leader-member exchange in high turnover work environments, Journal of Managerial Psychology, 2005, pp. 681-695. Mulki, J. P., Jaramillo, J. F. and Locander, W. B., Effect of ethical climate on turnover intention: Linking attitudinal- and stress theory, Journal of Business Ethics, 2008, pp. 559-574. Noe, R. A., Employee training and development, New York, NY: McGraw-Hill, 2002. 419

[69] Oliver, N., Rewards, investments, alternatives and organizational commitment: Empirical evidence and theoretical development, Journal of Occupational Psychology, 1990, pp. 19-31. [70] Piccolo, R. F., Bardes, M., Mayer, D. M. and Judge, T. A., Does high quality leader-member exchange accentuate organizational injustice? European Journal of Work and Organizational Psychology, 2008, pp. 262-273. [71] Price, J. L. and Mueller, C. W., A causal model of turnover for nurses, Academy of Management Journal, 1981, pp. 543-565. [72] Scandura, T. A., Rethinking leader-member exchange: An organizational justice perspective, Leadership Quarterly, 1999, pp. 25-40. [73] Schwepker, C. H., The relationship between ethical conflict, organizational commitment and turnover intentions in the salesforce, Journal of Personal Selling and Sales Management, 1999, pp. 43-49. [74] Schyns, B., The influence of occupational self-efficacy on the relationship of leadership behavior and preparedness for occupational change, Journal of Career Development, 2004, pp. 247-261. [75] Schyns, B., Paul, T., Mohr, G. and Blank, H., Comparing antecedents and consequences of leader-member exchange in a German working context to findings in the US, European Journal of Work and Organizational Psychology, 2005, pp. 1-22. [76] Schyns, B., Torka, N. and Gossling, T., Turnover intention and preparedness of change: Exploring leader-member exchange and occupational self-efficacy as antecedents of two employability predictors, Career Development International, 2007, pp. 660-679. [77] Sims, R. L. and Kroeck, K. G., The influence of ethical fit on employee satisfaction, commitment and turnover, Journal of Business Ethics, 1994, pp. 939-948. [78] Somers, M. J. and Birnbaum, D., Work-related commitment and job performance: It’s also the nature of the performance that counts, Journal of Organizational Behavior, 1998, pp. 621-634. [79] Sparrowe, R. T. and Liden, R. C., Process and structure in leader-member exchange, Academy of Management Review, 1997, pp. 522-552. [80] Steers, R. M., Antecedents and outcomes of organizational commitment, Administrative Science Quarterly, 1977, pp. 46-56. [81] Sturges, J., Conway, N., Guest, D. and Liefooghe, A., Managing the career deal: the psychological contract as a framework for understanding career management, organizational commitment and work behavior, Journal of Organizational Behavior, 2005, pp. 821-838. [82] Testa, M. R., National culture, leadership and citizenship: Implications for cross-cultural management, International Journal of Hospitality Management, 2009, pp. 78-85. [83] Vandenberghe, C., Bentein, K., Michon, R., Chebat, J. C., Tremblay, M. and Fils, J. F., An examination of the role of perceived support and employee commitment in employee-customer encounters, Journal of Applied Psychology, 2007, pp. 1177-1187. [84] Vardi, Y., The effect of organizational and ethical climates on misconduct at work, Journal of Business Ethics, 2001, pp. 325-337. [85] Vecchio, R. P. and Gobdel, B. C., The vertical dyad linkage model of leadership: Problems and prospects, Organizational Behavior and Human Performance, 1984, pp. 5-20. [86] Victor, B. and Cullen, J. B., The organizational bases of ethical work climates, Administrative Science Quarterly, 1988, pp. 101-125. [87] Wayne, S. J., Shore, L. M. and Liden, R. C., Perceived organizational support and leader-member exchange: A social exchange perspective, Academy of Management Journal, 1997, pp. 82-111. [88] Weeks, W. A., Loe, T. W., Chonko, L. B. and Wakefield, K., The effect of perceived ethical climate on the search for sales force excellence, Journal of Personal Selling and Sales Management, 2004, pp. 199-214. [89] Wickramasinghe, V. and Jayaweera, M., Impact of career plateau and supervisory support on career satisfaction: A study in offshore outsourced IT firms in Sri Lanka, Career Development International, 2010, pp. 544-561. [90] Williams, L. J. and Hazer, J. T., Antecedents and consequences of satisfaction and commitment in turnover models: A reanalysis using latent variable structural equation methods, Journal of Applied Psychology, 1986, pp. 219-231. [91] Yamane, T., Statistics – An introductory analysis. Tokyo, Japan: John Weatherhill, 1970.

420

B086 Unified Framework: Developing a Causal Model of Transactional Leadership, Team Identity, Team Cooperation, and Team Innovation Kijpokin Kasemsap Faculty of Management Sciences, Suan Sunandha Rajabhat University, Bangkok, Thailand E-mail address: kijpokinkasemsap@yahoo.com

Abstract Research objectives were to determine a unified framework and to develop a causal model of transactional leadership, team identity, team cooperation, and team innovation of leather company employees in Thailand. The study reported the responses of 563 operational employees from 35 leather companies operating in different parts of Thailand. Data were analyzed with descriptive statistics using SPSS (version 11.5) and assessed with confirmatory factor analysis to confirm the heterogeneity of all constructs and path analysis to test the cause and effect relationships among main constructs of the study using LISREL (version 8) on a structured questionnaire containing standard scales of transactional leadership, team identity, team cooperation, and team innovation to determine the relationships of transactional leadership, team identity, team cooperation, and team innovation. Research findings indicated that dimensions of transactional leadership, team identity, and team cooperation have mediated positive effect on team innovation. Team cooperation fully mediates the relationships between transactional leadership and team innovation and between team identity and team innovation. Keywords: Team Cooperation, Team Identity, Team Innovation, Transactional Leadership

Introduction There is a growing body of evidence that leadership style is among the key factors in promoting innovative performance, especially linked to the use of self-directed teams [1] [61]. The past decade has seen a dramatic increase in the application of work teams in organizations [12]. For teams to maintain and enhance effectiveness within this changing and challenging environment, innovation is critical [36] [55]. Although teams often have leaders who play an important role in ensuring team effectiveness, only a handful of studies have examined the relationship between leadership and team innovation in work settings [14] [27] [43] [48]. Transformational leadership is a major theme in previous innovation research [8] [16], the role of transactional leadership in team innovation is largely ignored. There is a strong evidence for the unique predictive power of transactional leadership on followers’ motivation, satisfaction, and leader effectiveness [26] [39]. In addition, transactional leadership represents an active form of strategic leadership that is an important ingredient for organizational effectiveness [52]. Moreover, prior studies have called for research to clarify how and why leadership influences followers’ outcomes [4] [21] [60]. The contingency perspective of leadership suggests that leadership is a social construct that can not be fully understood when examined in isolation from the context in which it occurs [44] [59]. Certain contextual factors might moderate the impact of leadership style on followers’ performance [6]. Transactional leadership builds the foundation for relationships between leaders and followers in terms of specifying expectations, clarifying responsibilities, negotiating contracts, and providing recognition and rewards in order to achieve the expected performance. Exhibiting transactional leadership means that followers agree with, accept, or comply with the leader in exchange for praise, rewards, and resources or in order to avoid disciplinary action. Rewards and recognition are contingent upon followers successfully carrying out their roles and assignments [8]. Moreover, transactional leadership tends to be based on an exchange process whereby followers are rewarded for accomplishing specified goals [19] [20] [47]. As such, team members are not expected to go beyond their team leaders’ initial expectations, nor are they motivate to try out creative solutions to change the status quo. Transactional leadership as one who operates within the existing system or 421

culture, has an inclination toward risk avoidance, and focuses on time constraints, standards, and efficiency. Transactional leaders may deal with deviations with harsh criticisms, resulting in the followers taking the well-trodden path of approaching problems rather than trying new methods for fear of reproach [36]. The understanding of the links between leadership styles and levels of innovation is limited [28]. Working in diverse teams helps organizations to bring together the array of information and knowledge needed to encourage innovation [38] [46]. Team members have to interact with each other and build a sense of identity that encourages the necessary sense of community, trust, and teamwork to turn creative ideas into innovative products and services [32] [46]. Furthermore, a critical set of roles are around leading teams to promote good team spirit, trust, and support, and to build group dynamics and processes that encourage the necessary teamwork to turn creative ideas into innovative products and services [32] [46] [49]. Leaders raise followers’ consciousness levels about the importance and value of designated outcomes and the ways of achieving it [3]. These leaders mostly operate in contexts that require followers to work toward vision of organization [3]. Leadership has a positive effect on innovation, team performance, and project success [29]. In addition, the style of leadership has considerable impact on raising levels of creativity and innovation [15] [28]. At the same time, there is a need for greater attention to be given to understand all processes through which such leader’s impact upon the work-related attitudes and outcomes of their followers [5]. Leaders influence how team members perceive themselves and they have the potential to influence their follower’s sense of belonging [31] [51]. Team identity involves the perception of belonging to a group [2], while creating a sense of identity in a group is an important aspect of leadership effectiveness [18]. Creating a sense of collective identity is at the essence of being a charismatic leader [45]. In other words, creating a sense of personal and social identification with a team is acknowledged as a key future of charismatic leadership [45]. The members’ participation is more meaningful when they are tied to a collective identity and consequently team’s potency is increased [45]. The influence on collective identification emerges by putting team before the self, inspiring higher levels of self-confidence and by focusing on a collective entity and shared values [45] [51]. Moreover, communication influenced by charisma shapes a more salient collective identity, whereas other aspects of leadership, such as individual consideration, make the personal identities of team members more important [42]. A transactional leadership style enhances followers’ interest in the collective and, consequently, levels of group cohesion are increased. As a result, the team members accept the group as a common source of identification, and this sense of identity is linked to the increased innovation in the team [24]. Cooperative teamwork involves using a strategy that emphasizes mutual goals, and efforts to understand the different positions of team members to find the best solution for the team [9]. Teams with stronger team relations are better at managing conflict cooperatively [50]. Leaders play a key role in building this sense of cooperation. Cooperation is influenced by the leader’s encouragement of in-group relations and their support of a sense of belonging to the team [10] [11]. By emphasizing a sense of belonging, leaders shift team members’ focus away from their personal interests toward the pursuit of group interests, thus fostering more cooperation within the group. Besides, the direct effect of the leader, leaders can influence team identity mediating the leader-cooperation relationship [10]. The influence of highly committed leaders is higher in groups with a strong social identity [10]. Leadership influences team members’ identification with the collective identity, and this sense of collective identity acts as a mediator for the effects of the leadership on the team members’ behaviors [51]. A strong sense of connection between group members is likely to result in a more productive team [37]. Cooperation behaviors are closely linked to innovation because they influence the thinking processes in groups to achieve more creative solutions [30]. Cooperation is considered the essence of innovation [30]. There is an importance of communication and cooperation in encouraging innovation and team performance [17] [41]. Team members should participate in open discussion, which is the most useful approach to managing conflict and to encourage teams to be innovative [53]. Teams that manage conflict productively are more likely to have higher performing teams in terms of effectiveness and innovation [9].

Material and Methods Data for this study were collected from 563 operational employees out of 5,592 operational employees working in the 35 leather companies in Thailand by using the Yamane formula [58] for a 96% confidence level with a 4% margin of error by the proportional random sampling method. Data were 422

analyzed with descriptive statistics using SPSS (version 11.5) and assessed with confirmatory factor analysis (CFA) to confirm the heterogeneity of all constructs and path analysis [25] to detect the cause-effect relationships among various dimensions of main constructs of the study using LISREL (version 8) on a structured questionnaire containing standard scales of transactional leadership, team identity, team cooperation, and team innovation, besides some demographic details like age, education, and tenure with the organization. Transactional leadership was assessed using the Multifactor Leadership Questionnaire (MLQ 5X-short) [7] consisting of a six-item scale [47] on a five-point Likert scale ranging from 1 (strongly disagree) to 5(strongly agree). Team identity was measured using five of the six items of the original scale developed by [40] on a six-point Likert scale ranging from 1 (strongly disagree) to 6 (strongly agree). Example items of team identity are “When somebody praises my team, it feels like a personal compliment” and “The team’s successes are my successes.” Team cooperation was measured using a five-item scale developed by [9] on a seven-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree). The team cooperation scale measures a strategy that emphasizes mutual goals, the understanding of everyone’s view, orientations toward joint benefit, and incorporates several different positions to find a good solution for the team. Example items of team cooperation are “Team members seek a solution that will be good for all of us” and “Team members combine the best positions to make an effective decision.” Team innovation was measured using a nine-item scale developed by [23] on a seven-point Likert scale ranging from 1 (never) to 7 (always). The team innovation scale includes the three stages of innovation, namely idea generation, idea promotion, and idea realization. Team innovation items invite respondents to indicate how often the team performed activities related to idea generation (generating original solutions to problems), idea promotion (mobilizing support for innovative ideas) and idea realization (transforming innovative ideas into useful applications).

Results A unified framework and causal model were developed. Research findings indicated that dimensions of transactional leadership, team identity, and team cooperation have mediated positive effect on team innovation. Team cooperation fully mediates the relationships between transactional leadership and team innovation and between team identity and team innovation. TSL IG

TIN

TCO

IP

IR

TID

Fig. 1: Unified Framework Key: TSL = Transactional Leadership, TID = Team Identity, TCO = Team Cooperation, TIN = Team Innovation, IG = Idea Generation, IP = Idea Promotion, IR = Idea Realization

Discussion Regarding the unified framework, there are lots of researchers studying the relationships of transactional leadership, team identity, team cooperation, and team innovation in a wide variety of fields. The unified framework was positively compatible with the following research findings. Transactional leadership, team identity, and team cooperation are positively linked to team innovation. By articulating clear standards and expectations for specific milestones achieved, transactional leaders may be able to establish the foundation for working together that prepares the team to the function of an environment where knowing what to do, when to do it, and with whom is essential to successful innovative performance. Using goal setting and clarification as aspects of transactional leadership, transactional leaders can make creative output part of the goal agreement; political benefits hinge on being creative to promote team innovativeness. As innovation is an incredibly significant key factor in 423

organizations’ ability to create a sustainable competitive advantage [33] and organizations often rely on teamwork [13] [22], it is important for management to know which kind of leadership should be adopted to facilitate team innovation. Transactional leadership is neither a destructive nor a fostering power of innovation; its effectiveness largely depends on the context in which it works. Indeed, transactional leaders can make active and intentional efforts to enhance followers’ innovation through the contingent reward and management by exception, and such effect on innovation depends on the emotional labor required by the job. When emotional labor is low, transactional leaders can focus on the appropriate exchange of resources and give followers something they want in exchange for something the leader wants [34] [47]. As a result, transactional leadership helps shape strategies and structures, reward subordinates’ efforts and commitment, and take action to correct mistakes and deviations from expectations, thereby helping to foster better team innovativeness. Leaders influence followers by affecting their sense of identity [10] [45] [51]. At the same time, this sense of identity influences how well teams adopt and follow a cooperative strategy to resolve issues and make decisions. The current study shows how these factors influence team innovation behavior. It provides further evidence of the importance of cooperative behaviors in teams. It is through cooperation among members and frequent communication that teams create an environment that fosters innovative behaviors. Open discussions and joint decision making are the strategies that are more likely to produce innovation [41] [53]. The present study adds to this body of research by suggesting that team identity and leadership style are the factors that can facilitate these cooperative interactions especially during a period of major change. In fact, this study provides evidence of a strong relationship between team identity and team cooperation. Team members who highly value their team membership and team outcomes tend to engage in more cooperative behaviors. Members in teams with a strong team identity are more likely to participate in shared decision making and to find solutions that are mutually beneficial for the members of the team. Furthermore, the results in this study add to previous research findings by providing evidence that high levels of cooperation mediate the relationship between team identity and team innovation. These findings imply that a team with a strong team identity fosters innovation. More specifically, it is through cooperation that teams with a strong identity are likely to show high levels of innovation. The influence of leaders provides a sense of purpose that is consistent with the underlying ethics and values of team members [3]. Strategies used by leaders to create cooperation and effective communication amongst team members are likely to produce innovation [61]. Leaders have the potential to influence an environment that supports cooperative approaches to discussion and an open and free climate [56] [61]. Leaders can influence the degree to which people collaborate with each other and participate openly in discussions to support the integration of different ideas, and how the team generates, promotes, and realizes ideas [17] [35].

Conclusion The purposes of this study were to determine a unified framework and to develop a causal model of transactional leadership, team identity, team cooperation, and team innovation for leather company employees in Thailand. The findings showed that the transactional leadership, team identity, and team cooperation have the strength to mediate positive effect on team innovation. In relation to the unified framework, this result was the extent to which transactional leadership, team identity, and team cooperation have mediated positive effect on team innovation. Team cooperation fully mediates the relationships between transactional leadership and team innovation and between team identity and team innovation. The preliminary model proposed in this study provides a satisfactory understanding of team leaders who have a leadership style can inspire and motivate team members to perform at their best [45]. This style of leadership in particular sets a clear direction and purpose for followers, and these leaders work on establishing an environment of mutual trust and respect in which members value their team membership [3] [42]. Most significantly, this type of leader seems to raise the chances of facilitating cooperative team behaviors that promote innovation even during a very challenging period of major restructuring process. Leaders in organization need to be aware of the importance of effective group processes and need to be active in promoting effective communication and discussion. Leaders through their position and style seem to have more influence in determining their team processes to make innovative outcomes successful. Transactional leadership and team identity help organizations move toward better team innovation through team cooperation. Organizations aiming to increase team innovation and achieve business goals should focus on developing transactional leadership, team identity, and team cooperation. 424

References [1] [2] [3] [4] [5]

[6] [7] [8] [9] [10] [11]

[12]

[13] [14]

[15] [16]

[17] [18] [19] [20] [21] [22] [23]

[24] [25] [26] [27]

Amabile, T. M., Schatzel, E. A., Moneta, G. B. and Kramer, S. J., Leader behaviors and the work environment for creativity: Perceived leader support, Leadership Quarterly, 2004, pp. 5-32. Ashforth, B. E. and Mael, F. A., Social identity theory and the organization, The Academy of Management Review, 1989, pp. 20-39. Avolio, B. J. and Bass, B. M., Multifactor Leadership Questionnaire: Third Edition and Sampler Set, Redwood City, CA: Mind Garden, 2004. Avolio, B. J. and Yammarino, F. J., Transformational Leadership: The Road Ahead, Oxford, UK: Elseveir Science, 2002. Avolio, B. J., Zhu, W., Koh, W. L. and Bhatia, P., Transformational leadership and organizational commitment: Mediating role of psychological empowerment and moderationg role of structural distance, Journal of Organizational Behavior, 2004, pp. 951-968. Bass, B. M., Leadership and Performance beyond Expectations, New York, NY: The Free Press, 1985. Bass, B. M. and Avolio, B. J., Multifactor Leadership Questionnaire. Redwood City, CA: Mind Garden, 2000. Bass, B. M. and Riggio, R. E., Transformational Leadership, Mahwah, NJ: Erlbaum, 2006. Chen, G. C., Liu, C. and Tjosvold, D., Conflict management for effective top management teams and innovation in China, The Journal of Management Studies, 2005, pp. 277-300. De Cremer, D. and Van Knippenberg, D., How do leaders promote cooperation? The effects of charisma and procedural fairness, Journal of Applied Psychology, 2002, pp. 858-866. De Cremer, D. and Van Vugt, M., Intergroup and intragroup aspects of leadership in social dilemmas: A relational model of cooperation, Journal of Experimental Social Psychology, 2002, pp. 126-136. Devine, D. J., Clayton, L. D., Philips, J. L., Dunford, B. B. and Melner, S. B., Teams in organizations: Prevalence, characteristics and effectiveness, Small Group Research, 1999, pp. 678-711. Dumaine, B., The trouble with teams, Fortune, 1994, pp. 86-92. Eisenbeiss, S. A., Van Knippenberg, D. and Boerner, S., Transformational leadership and team innovation: Integrating transformational leadership and team climate models, Journal of Applied Psychology, 2008, pp. 1438-1446. Elkins, T. and Keller, R. T., Leadership in research and development organizations: A literature review and conceptual framework, Leadership Quarterly, 2003, pp. 587-606. Garcia-Morales, V. J., Matias-Reche, F. and Hurtado-Torres, N., Influence of transformational leadership on organizational innovation and performance depending on the level of organizational learning in the pharmaceutical sector, Journal of Organizational Change Management, 2008, pp. 188-212. Hirst, G. and Mann, L., A model of R&D leadership and team communication: The relationship with project performance, R&D Management, 2004, pp. 147-160. Hogg, M. A., A social identity theory of leadership, Personality and Social Psychology Review, 2001, pp. 184-200. Hollander, E. P., Leadership Dynamics, New York, NY: The Free Press, 1978. House, R. J., A path-goal theory of leadership effectiveness, Administrative Science Quarterly, 1971, pp. 321-338. Hunt, J. G. and Conger, J. A., From where we sit: an assessment of transformational and charismatic leadership research, Leadership Quarterly, 1999, pp. 335-345. Ilgen, D. R., Hollenbeck, J. R., Johnson, M. D. and Jundt, D., Teams in organizations: From input-process-output models to IMOI models, Annual Review of Psychology, 2005, pp. 517-543. Janssen, O., Fairness perceptions as a moderator in the curvilinear relationships between job demands, and job performance and job satisfaction, Academy of Management Journal, 2001, pp. 1039-1050. Jaussi, K. S. and Dionne, S. D., Leading for creativity: The role of unconventional leader behavior, Leadership Quarterly, 2003, pp. 475-498. Joreskog, K. G. and Sorborn, D., LISREL 8: User’s reference guide. Chicago, IL: Scientific Software International, 1993. Judge, T. A. and Piccolo, R. F., Transformational and transactional leadership: A meta-analytic test of their relative validity, Journal of Applied Psychology, 2004, pp. 755-768. Jung, D. I., Transformational and transactional leadership and their effects on creativity in groups, Creativity Research Journal, 2001, pp. 185-195. 425

[28] Jung, D. I., Chow, C. and Wu, A., The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings, Leadership Quarterly, 2003, pp. 525-544. [29] Jung, D. I. and Sosik, J. J., Transformational leadership in work groups: The role of empowerment, cohesiveness, and collective-efficacy on perceived group performance, Small Group Research, 2002, pp. 313-336. [30] Kahai, S. S., Sosik, J. J. and Avolio, B. J., Effects of leadership style, anonymity, and rewards on creativity-relevant processes and outcomes in an electronic meeting system context, Leadership Quarterly, 2003, pp. 499-524. [31] Kark, R., Shamir, B. and Chen, G., The two faces of transformational leadership: Empowerment and dependency, Journal of Applied Psychology, 2003, pp. 246-255. [32] Keller, R. T., Transformational leadership, initiating structure, and substitutes for leadership: A longitudinal study of research and development project team performance, Journal of Applied Psychology, 2006, pp. 202-210. [33] Kim, Y., Min, B. and Cha, J., The roles of R&D team leaders in Korea: A contingent approach, R&D Management, 1999, pp. 153-165. [34] Kuhnert, K. W. and Lewis, P., Transactional and transformational leadership: A constructive developmental analysis, Academy of Management Review, 1987, pp. 648-657. [35] Kurtzber, T. R. and Amabile, T. M., From Guildford to creative synergy: Opening the blackbox of team level creativity, Creativity Research Journal, 2001, pp. 285-294. [36] Lee, J., Effects of leadership and leader-member exchange on innovativeness, Journal of Managerial Psychology, 2008, pp. 670-687. [37] Llorens Montes, F. J., Ruiz Moreno, A. and Garcia Morales, V., Influence of support leadership and teamwork cohesion on organizational learning, innovation and performance: An empirical examination, Technovation, 2005, pp. 1159-1172. [38] Lovelace, K., Shapiro, D. L. and Weingart, L. R., Maximizing cross-functional new product teams’ innovativeness and constraint adherence: A conflict communications perspective, Academy of Management Journal, 2001, pp. 779-793. [39] Lowe, K. B., Kroeck, K. G. and Sivasubramaniam, N., Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the MLQ literature, Leadership Quarterly, 1996, pp. 385-425. [40] Mael, F. A. and Ashforth, B. E., Alumni and their Alma Mater: A partial test of the reformulated model of organizational identification, Journal of Organizational Behavior, 1992, pp. 103-123. [41] Mann, L., Leadership, Management and Innovation in R&D Project Teams. Westport, CT: Praeger, 2005. [42] Paul, J., Costley, D. L., Howell, J. M., Dorfman, P. W. and Trafimow, D., The effects of charismatic leadership on followers’ self-concept accessability, Journal of Applied Social Psychology, 2001, pp. 1821-1844. [43] Paul, N., Maldonado, D., Callan, V. J. and Ayoko, O., Charismatic leadership, change and innovation in an R&D organization, Journal of Organizational Change Management, 2009, pp. 810-821. [44] Podsakoff, P. M., Niehoff, B. P., MacKenzie, S. B. and Williams, M. L., Do substitutes for leadership really substitute for leadership? An empirical examination of Kerr and Jermier’s situational leadership model, Organizational Behavior and Human Decision Processes, 1993, pp. 1-44. [45] Shamir, B., House, R. J. and Arthur, M. B., The motivational effects of charismatic leadership: A self-concept based theory, Organization Science, 1993, pp. 577-594. [46] Somech, A., The effects of leadership style and team process on performance and innovation in functionally heterogeneous teams, Journal of Management, 2006, pp. 132-157. [47] Song, L. J., Tsui, A. S. and Law, K. S., Unpacking employee responses to organizational exchange mechanisms: The role of social and economic exchange perceptions, Journal of Management, 2009, pp. 56-93. [48] Sosik, J. J., Kahai, S. S. and Avolio, B. J., Transformational leadership and dimensions of creativity: Motivating idea generation in computer-mediated groups, Creativity Research Journal, 1998, pp. 111-121. [49] Thamahin, H. J., Managing innovative R&D teams, R&D Management, 2003, pp. 297-311. [50] Tjosvold, D., Poon, M. and Yu, Z., Team effectiveness in China: Cooperative conflict for relationship building, Human Relations, 2005, pp. 341-367. [51] van Knippenberg, B., van Knippenberg, D., De Cremer, D. and Hogg, M. A., Leadership, self and identity: A review and research agenda, Leadership Quarterly, 2004, pp. 825-856. 426

[52] Waldman, D. A., Ramirez, G. G., House, R. J. and Puranam, P., Does leadership matter? CEO leadership attributes and profitability under conditions of perceived environmental uncertainty, Academy of Management Journal, 2001, pp. 134-143. [53] West, M. A., Developing Creativity in Organizations. Leicester, UK: British Psychological Society, 1997. [54] West, M. A., Sparkling fountains or stagnant ponds? An integrative model of creativity and innovation implementation in work groups, Applied Psychology: An International Review, 2002, pp. 355-387. [55] West, M. A. and Anderson, N. R., Innovation in top management teams, Journal of Applied Psychology, 1996, pp. 680-693. [56] West, M. A., Borril, C. S., Dawson, J. F., Brodbeck, F., Shapiro, D. L. and Haward, B., Leadership clarity and team innovation in health care, Leadership Quarterly, 2003, pp. 393-410. [57] West, M. A. and Hirst, G., Cooperation and teamwork for innovation. In M. West, D. Tjosvold and K. G. Smith (Eds.), International handbook of teamwork and cooperative working (pp. 257-279). Chichester, UK: John Wiley & Sons, 2003. [58] Yamane, T., Statistics – An introductory analysis. Tokyo, Japan: John Weatherhill, 1970. [59] Yammarino, F. J., Spangler, M. D. and Dubinsky, A. J., Transformational and contingent reward leadership: Individual, dyad, and group levels of analysis, Leadership Quarterly, 1998, pp. 27-54. [60] Yukl, G., An evaluation of conceptual weaknesses in transformational and charismatic leadership theories, Leadership Quarterly, 1999, pp. 285-305. [61] Zaccaro, S. J., Rittman, A. L. and Marks, M. A., Team leadership, Leadership Quarterly, 2001, pp. 451-483.

427

B128 Believability and Consumer Perceptions of Scarcity Signals: Effects on Purchase Intentions Hsuan-Hsuan Ku, Soochow University, Department of International Business, Taipei, Taiwan E-mail: hsuan@scu.edu.tw

Abstract Because of the widespread use of scarcity strategies, marketers’ scarcity signals may degenerate into communication noise. Consumers need reliable clues, to determine the authenticity of scarcity strategies. How different signal characteristics influence consumer perceptions and behavior are thus worthy of exploration. The study investigates the effect of three signal characteristics of marketers’ scarcity strategies – clarity, timing, and the reputation of the signaling firm – on consumer perceptions of the believability of scarcity strategies and of the symbolic benefits to be derived from possession of a scarce product, and on their purchase intentions. The results of analysis of data collected from 304 participants in a 2×2×2 between-subjects design show that unambiguous signals could engender intention to purchase by enhancing the perceived believability of the strategy. A firm’s reputation likewise affected purchase intentions via perceived believability. In addition, consumers who believe scarcity claims also accept the symbolic benefits associated with the product.

Introduction “Scarcity breeds value” has long been a watchword among consumers. The creation of product scarcity appeals can consequently be an important element of marketing strategy in many practical situations. For example, when Sony’s PlayStation 2 was launched in the Fall of 2000, an overflow of demand was engineered by restricting supply. Similarly, Nike released Air Jordan sneakers as a limited-edition line and Nokia used scarcity appeals in promotions of their new model 8850. Scarcity strategies can act as a signal of the quality of a limited product [1]. The implied uniqueness can furthermore enhance consumers’ perceptions of its value [2]. Many of the previous customer-focused studies of scarcity strategies have sought to explain how they influence consumers’ perceptions of value and their intentions to purchase. Approaching the subject from a psychological standpoint, studies have proposed that scarcity, combined with the expectation that higher prices mean higher quality and higher status, enhances consumer responses through associations with those symbolic benefits, e.g. [3] [4] [5] [6]. Paradoxically, the widespread use of contrived scarcity and its accompanying “hype” has converted scarcity signals into communication noise. A scarcity strategy that delivers such imperfect and asymmetric information will very probably raise doubts in consumers’ minds about the alleged scarcity. A strategy that is incapable of evoking sufficient confidence in its truthfulness to render it authentic will significantly lower the probability of eliciting the desired response, or at least greatly weaken its effectiveness [7]. On the other hand, it is logical to assume that, if consumers do find a scarcity strategy believable, they will begin to develop a perception of the symbolic benefits the product can deliver, which will in turn shape their purchase intentions. Research investigating the issue of authenticity in marketing more generally includes studies of consumer perceptions of advertising price offers, e.g. [8] [9], of the believability of price-matching guarantees, e.g. [10], and of the credibility of advertising claims e.g. [11] [12] [13]. There has been relatively little attention, however, to consumer assessments of the authenticity of the scarcity strategies deployed by marketers. Most marketers utilize scarcity strategies to stimulate market demand [1]. In practice, they therefore need to deliver powerful clues that can significantly increase the probability of purchase. If consumers rely on those as indicators of the authenticity of a scarcity strategy, and make their purchase decisions accordingly, then it is important for marketers who have limited-edition products in their range to understand how the various kinds of scarcity signal influence potential purchasers in practice.

428

The study reported here investigates the effect on consumer perceptions and behavior of three key attributes of the signal: its clarity, its timing with respect to the launch of the product in question, and the reputation of the source. Its aim is to improve practitioners’ and researchers’ understanding of scarcity strategies by developing and testing a model of consumer responses to the associated signals. To that end, we first propose seven research hypotheses based on the literature of marketing and consumer behavior, and then describe the design of an experiment to test them. The results are presented and discussed, with particular reference to their practical implications and the limitations of the research design. Directions for further research are suggested.

Literature Review and Hypotheses Scarcity Strategies The scarcity effect is a powerful social-influence principle used by marketers to increase the subjective desirability of products [14]. Scarcity may be engineered by limiting the volume of supply or the number of suppliers; manipulating the costs of obtaining or keeping a product, service or commodity, or of providing it; placing a limit on the number of buyers; and delaying delivery [4] [15]. To convey the scarcity message, advertisers typically make such claims as “limited release,” “only while supplies last”, “for a limited time only”, and “limit of one per customer” [2]. The strategic aim is to signal product quality to otherwise uninformed consumers and thereby create a “hot product” [1]. Several authors have studied the psychological effects of marketplace scarcity. A meta-analysis shows [2], following commodity theory [15], that scarcity enhances the value of anything that can be possessed. The utility of any “rarity good” to a current owner decreases as the number of other owners increases [16]. Similarly, it has been proposed that possession of scarce resources provides a valued sense of self-uniqueness [3] [17] and status [5]. Scarcity also leads to assumed expensiveness, which may increase the desirability by attributing quality or status, or both, to the product in question [6]. Scarcity influences consumers’ revealed preferences through perceptions of uniqueness and assessment of cost [4]. Recently, researchers have proposed an integrated model of the influence that scarcity has on consumers’ value perceptions and purchase intentions [18]. It is more complete than its predecessors in being the first to incorporate all four mediating mechanisms: assumed expensiveness, perceived quality, perceived symbolic benefits, and perceived monetary sacrifice. It has very recently been found that scarcity messages will interact significantly with the brand concept, in that a restricted offer will have a stronger effect on purchase intentions for a symbolic brand than for a functional brand [19]. As the employment of scarcity strategy increases, consumers have to rely on a wider range of information and cues to evaluate the believability of a given campaign. The conceptual model of consumer response to scarcity strategies proposed here takes the perspective that individuals will assess the likelihood of their purchasing a scarce product on the basis of the characteristics of the signals received: clarity, timing and reputation (of the source). It is hypothesized that these influence consumer perceptions of believability and symbolic benefits obtainable, which in turn drive purchase intentions. Signal Characteristics and Consumer Perceptions of Scarcity Strategies A “clear signal”, which is unambiguous and has a known cause, normally allows a receiver to make a causal attribution more precisely [20]. One that is unclear, ambiguous or random will be ignored or discarded, and will not influence the receiver’s decision [21]. In practice, consumers will very probably perceive unclear scarcity signals to be nothing more than devices to boost sales, or a simple promotional tactic, and will therefore have less confidence in the scarcity strategy. In the context of branding, signal clarity depends on an absence of ambiguity across the information conveyed by the brand’s past and present marketing mix strategies and associated activities [22]. Furthermore, clarity should affect signal credibility positively, because consumers are likely to believe that firms willing and able to offer the promised products would send out clear signals. Similarly, unambiguous signals as the announcing of the amount of a scarce product available expose marketers to deliberate and attentive scrutiny. Marketers can therefore be expected to be cautious about the claims made, and highly conscious of the need to protect their reputation. For all these reasons, consumers are likely to perceive a clearly signaled scarcity strategy as believable. It is therefore hypothesized that: H1: Signal clarity positively affects the believability of a scarcity strategy.

429

The next hypothesis relates signal clarity to consumers’ perceptions of the symbolic benefits of a scarce product. “Symbolic” describes those attributes of a brand or product that can link an individual to a desired group or role, or reinforce his or her self-image [23]. Symbolic product benefits thus contribute to a consumer’s construction of a visible, unique, and personal representation of himself or herself [24]. The symbolic construct has two facets, one focusing on the prestige of the brand or product and the other on its use as a means of expressing the user’s personality [25]. Consumers perceived a product’s capacity to express uniqueness, self-expression, and status as meaningful symbolic benefits, and that they credited scarce products with more value when the symbolic benefits were made explicit [18]. Consumers’ responses to scarcity signals are thus influenced positively by the association with symbolic benefits [4]. Specifically, those are that acquisition and possession of generally unavailable products provide a valued sense of self-uniqueness [3], and that the normal human expectation that scarce things will cost more leads to a belief that a higher price indicates quality and confers status [5]. It is therefore hypothesized that the clearer the signal, the more easily consumers will recognize not only the limited supply but also the symbolic benefits available, whereas an unclear signal would not prompt them to consider either the scarcity or the possible benefits of acquiring the scarce item. Thus: H2: Signal clarity positively affects perception of the symbolic benefits of a scarce product. The chosen scarcity signals may be communicated either before or after the product or service is launched. Many firms had found the introduction of new products and services before they are available to be an effective marketing strategy [26]. The rationale for pre-announcement is to influence buyer behavior [27]. Specifically, in a scarcity strategy, it aims to arouse buyers’ needs for uniqueness, build their curiosity and interest in the scarce product, and thereby stimulate demand. Pre-announced scarcity invites scrutiny of the claims and allows more potential customers to gain better familiarity with the scarce product or services than would otherwise be the case. Knowing this, marketers will be less likely to make dubious claims, engage in risky promotions, or renege on the promise of limited availability. The irreversibility of commitments will reinforce the believability of the scarcity strategy, whereas if the scarcity message were to follow on after the product had been launched, they could not have monitored sales beforehand, would not be able to validate the claimed scarcity, would be likely to attribute the signals to promotional tactics, and would therefore discount it. Thus, early scarcity signals are perceived to be more believable than late ones, and it is hypothesized that: H3: Signal timing negatively affects the believability of a scarcity strategy. An important characteristic of the signal is the sending firm’s history of living up to the claims and promises implied in the signals transmitted, which refers to “signaling reputation” [21]. A consistent track record in this respect will build a good signaling reputation, whereas the reputation will decline if signals go unfulfilled [28] [29]. This influences the signal receiver’s processing and interpretation of incoming information in a general way [20]. A positive reputation of this kind will yield consistent and positive expectations of its future actions and increase the likelihood that future signals are judged to be believable [30]. It is thus hypothesized that a firm with a good signaling reputation with respect to scarcity strategies is more likely to be trusted to do what it says in future than one that has sacrificed its signaling reputation by repeated failure to live up to its scarcity signaling. In short: H4: Signaling reputation positively affects the believability of a scarcity strategy. Consumer Perceptions of Scarcity Strategies and Purchase Intentions Previous research studies have shown that the believability of signals is directly related to their persuasiveness [31]. The present study proceeded on the assumption that scarcity strategies perceived to be more believable would enhance consumers’ perceptions of the symbolic benefits to be derived from scarce products by virtue of their expectation that the firm would honor the claims made in its signals. Those who could not be sure of the authenticity of claims would not weigh up the symbolic benefits of the product or service concerned. It is thus hypothesized that: H5: The believability of a scarcity strategy positively affects the perceived symbolic benefits of a scarce product. 430

Earlier research has also found that believability positively influences intention to purchase [32] and is the key to signaling effectiveness [33]. In general, consumers who believe marketers’ claims that the product will be in limited supply will be more likely to purchase the scarce product. Accordingly, it is hypothesized that: H6: The believability of a scarcity strategy positively affects purchase intentions. Lastly, previous studies of the psychological effects of scarcity offer abundant evidence that the influence of the availability of a product or service on consumers’ preferences and purchase intentions is mediated through their perceptions of symbolic benefits [2] [4] [14] [18] [34]. Therefore, it is hypothesized that: H7: The perceived symbolic benefits of a scarce product positively affect purchase intentions.

Methodology The study employed a 2×2×2 between-subjects design. The corresponding comparisons are between: high versus low signal clarity; early versus late signal timing; and high versus low signaling reputation. The dependent variables to be measured were the believability of the scarcity strategy, its perceived symbolic benefits, and the participants’ purchase intentions. Stimulus and Manipulation Typical limited-edition products were found to be: “designer” products; clothing and accessories; beauty products; watches; fashion products; cellular phones and other communication devices; and collector’s items and artworks. Four criteria guided the choice of the experimental stimulus object from those categories: the product class should continuously include limited-edition offerings; the product should have widespread high visibility; it should appeal equally to male and female consumers; and it should be within the test group’s discretionary purchasing power. Because participants in the experiment would be undergraduate students, it is logical to assume that their average monthly discretionary purchasing power precludes significant buying of non-essential items, the more costly categories were immediately excluded. Beauty products, fashion products, and clothing and accessories were also removed from consideration, because they are targeted mainly at a female market and would therefore introduce gender bias into the results After a pretest of three possible product stimuli – casual backpacks, watches, and cellular phones – administered to 50 undergraduates, a casual backpack was selected on for its best fit with the choice criteria. To exclude the effect of design on purchase decisions, no product specification was given. A gender-neutral fictitious name – Probag – was used for the limited-edition casual backpack. Signal clarity was manipulated to create variation in the extent to which the scarcity signals were clear, by stating or withholding the exact level of supply. Accordingly, the statement “300 limited-edition casual backpacks” was set as the high-clarity signal, while “limited-edition casual backpacks”, without the quantity, was the low-clarity alternative. A pretest involving 50 undergraduate students suggested the manipulation had been appropriately interpreted by respondents. Signal timing was manipulated by means of preannouncement (“Limited-edition casual backpacks coming soon”) versus post-launch promotion (“Limited-edition casual backpacks have arrived”). The level of signaling reputation was manipulated by stating the track record of the hypothetical firm employing the scarcity strategy. “The firm regularly offers limited-edition products, the availability of which is generally believed to be genuinely limited” manifested a high signaling reputation, while “The firm sometimes offers limited-edition products, the availability of which is generally believed to be not genuinely limited” corresponded to the level of the low-reputation alternative. A pretest was performed to ensure the effectiveness of signaling reputation manipulation. The 50 pre-test participants were asked to rate the two statements on the extent to which they thought the sender would have a high reputation for keeping to the promised supply of limited goods. The test values show that the signaling reputation manipulation worked as intended.

431

Sample and Procedure The experimental subjects were drawn from a sampling frame consisting of undergraduate students in various management classes at a large university in Taiwan. Participants were informed during class time that they would be taking part in an experiment on purchase intention relating to a casual backpack that was in short supply. Participants were randomly assigned to each condition. Usable data were gathered from 304 participants. Each participant was given one of 8 scenarios in which a hypothetical brand communicated a scarcity signal. Each scenario represented a unique combination of levels of the three manipulated independent variables. Participants were first given a description of the hypothetical brand and of its track record of employing the scarcity strategy. They were then exposed to advertisement of its limited-edition casual backpack. After reading through the descriptions, participants were asked to respond to the dependent measures and manipulation checks. The measures are discussed below. Dependent Measures The dependent measures consisted of nine items as multiple indicators for three latent constructs, all assessed by seven-point category rating scales. The three statements used to measure believability of scarcity strategy [10], and reflected the extent to which a respondent believed the claim of scarcity. To measure perceived symbolic benefits, four questions based on earlier research studies [18] were used, operationalizing the construct in terms of uniqueness, self-expression, self-enhancement, and conferred symbolic status. Two items measured purchase intention: respondent’s willingness to buy a scarce product and the probability that they would consider doing so [35] [36].

Results Manipulation Checks Analysis of the mean scores calculated from the questionnaire returns suggested that the manipulations of the three independent variables were perceived as intended. First, for signal clarity, the manipulation check was based on two Likert-scaled statements (“The statement tells me to the exact quantity of available”; “the quantity of supply is unambiguous”) anchored by 1 = strongly disagree and 7 = strongly agree. The Cronbach’s α coefficient was 0.87. The responses of participants allocated to the high signal-clarity group showed that they could clearly identify the quantity of limited-edition product released to the market (M high clarity = 5.37), while those from the low signal-clarity group indicated that signal was unclear and ambiguous (M low clarity = 3.04). A significant difference was found between the two groups (F (1, 302) = 160.62, p < 0.001). To verify that the manipulation of signal timing had been successful, respondents first identified whether the signal they had been exposed to was announced before or after the product had been launched, and then completed the statement “The timing of scarcity signal is ___.” by using a seven-point scale anchored by 1 = very early and 7 = very late. The outcome of this manipulation check showed that all respondents correctly identified the signal timing. In addition, those allocated to the early-signal condition perceived the timing to be significantly earlier than their counterparts in the late-signal group (M early signal = 3.28, M late signal = 5.24, F (1, 302) = 170.74, p < 0.001). Lastly, the check on manipulation of signaling reputation used statements [20]: “The firm has a good record in fulfilling prior signals of scarcity”; “The firm displays high consistency in its actions relating to scarcity strategies over time; and “The firm shows high commitment to signal fulfillment”. Respondents rated their agreement or disagreement on the usual seven-point Likert scale anchored by 1 = strongly disagree and 7 = strongly agree (Cronbach’s α coefficient = 0.93). Participants allocated to the high-reputation group recorded a higher mean score with respect to the firm’s good track record in carrying out past scarcity strategies (M high reputation = 5.26) than those in the low-reputation group (M low reputation = 3.38). The inter-group difference was significant, at F (1, 302) = 185.64, p < 0.001. Measurement Model Confirmatory factor analysis was employed to develop a measurement model that would achieve an acceptable fit to the data. The adequacy of the measurement models is evaluated on the criteria of overall fit with the data, convergent validity, discriminant validity, and reliability. The overall fit of the measurement model estimated by confirmatory factor analysis for a three-factor model is within acceptable levels (χ2 (24) = 101.26, p = 0.00, GFI = 0.93, CFI = 0.97, RMR = 0.043). The assessment of 432

the measurement properties of all three scales indicated that the factor-loading lambdas were high and significant (p < 0.001; all indicator t values between 15.14 and 22.10), which satisfies the criteria for convergent validity. An examination of the average squared multiple correlations for each construct indicated that a substantial amount of the variance in the measures is captured by the latent constructs (signal clarity = 0.85; symbolic benefits = 0.68; purchase intention = 0.83), which again demonstrates convergent validity [37]. It has been suggested that criterion for assessing discriminant validity between scales that the correlation between two latent constructs plus or minus two standard errors does not include one [38]. All three scales met this criterion. The Cronbach’s α coefficients for perceived signal believability, perceived symbolic benefits, and purchase intentions are all high enough to suggest that the measures are reliable, at 0.94, 0.89, and 0.91, respectively. Hypothesis Testing The overall fit of the structural model was determined initially by examining the  2 statistics, which were significant at the 0.001 level. This could indicate an inadequate fit (χ2 (50) = 146.30, p = 0.00, χ2 /df = 2.93), but because  ² is sensitive to sample size and model complexity, rejection of the model on the basis of this evidence alone is inappropriate [36]. Accordingly, other measures of fit compensating for sample size were also applied, and the results were encouraging. The goodness-of-fit index (0.92), the root mean square residual for the structural model (only 0.051), and the comparative fit index [39] (0.96) collectively indicate an adequate fit. Signal clarity was hypothesized to have a significant positive effect on consumer perceptions of the believability of a scarcity strategy, and the symbolic benefits of acquiring a limited-edition product. The results of the study show that it did indeed affect believability (γ = 0.09, t = 2.08, p < 0.05), supporting H1. Contrary to expectations, they show that signal clarity did not have a significant effect on perceived symbolic benefits (γ = 0.07), and H2 is therefore rejected. Thus, the believability of a scarcity strategy is enhanced when the quantity of the limited-edition product is clearly stated, but that signal does not lead directly to perception of the symbolic benefits of scarcity. The effect of signal timing on perceived believability hypothesized in H3 was not supported (γ = 0.01). Thus, the decision to announce the scarcity strategy before or after the scarce product is launched – that is, earlier or later in the strategic planning process – was found to have no effect on believability. Signaling reputation was found to have a significant effect on perceived believability of a scarcity strategy (γ = 0.55, t = 12.12, p < 0.001), confirming H4. Therefore, a strong reputation for living up to scarcity signals is advantageous in enhancing consumer confidence when scarcity strategies are implemented again in future. The study also investigated how believability influenced consumers’ perceptions of the symbolic benefits of a limited-edition offer. The results show that it had a significantly positive effect on perceived symbolic benefits (β = 0.48, t = 8.84, p < 0.001), as hypothesized (H5). Respondents who believed the claims made in the scarcity signal also thought the possession of a scarce product would deliver distinct symbolic benefits. Lastly, the research sought to determine how believability and symbolic benefits together affected purchase intentions. The results indicate that perceptions of both the scarcity strategy believability (β = 0.15, t = 2.52, p < 0.05) and symbolic benefits (β = 0.68, t = 9.62, p < 0.001) positively affected consumer purchase intentions, supporting H6 and H7.

Discussion Implied scarcity is often utilized as a means of enhancing perceived value [2], signaling product quality, and creating a hot product [1]. It is vital, for marketing planners who adopt such a strategy, to understand how the characteristics of the signals employed affect consumer perception and behavior. The study reported here set out to assess the efficacy of scarcity strategy by investigating the effects of signal characteristics on the perceptions and behaviors of a sample of potential purchasers of a backpack. Specifically, we incorporated three experimental variables – signal clarity, signal timing, and signaling reputation – directly into a causal model with purchase intentions as the tested outcome. We 433

also took into account two participant perceptions – the believability of the scarcity strategy and its perceived symbolic benefits – as mediators of the outcome, to clarify the efficacy of the scarcity messages that might be communicated with the aim of inducing purchase intentions. The results demonstrate that our model is effective in explaining buyers’ response to these scarcity signals and has important implications for successful implementation of scarcity strategy. The study provides evidence that a clear signal, namely specifying the exact quantity of the limited-edition product available, can engender positive perceptions of the believability of the strategy. Doing so serves as a form of guarantee to consumers, whose reaction is to be confident of the truthfulness of the strategic proposition, while not doing so risks their having suspicions about the scarcity of the product. Our model proposes two distinct pathways for the effect of signal clarity on perceived symbolic benefits: direct and mediated. However, the findings of our study suggest that consumers will perceive those benefits only when the clear signal is mediated by acceptance of the authenticity of the scarcity strategy itself. Similarly, it may be that the failure of signal timing to influence believability indicates the propensity of consumers to place importance on the claims of scarcity signal, but not on its timing. If there are no clues to the quantity of the limited-edition product available, no matter when the signal is sent, consumers are unlikely to believe the authenticity of the scarcity strategy. Furthermore, the internet disseminates such information more openly and quickly than in the past, so that potential purchasers will still have the opportunity to validate the rarity of a limited-edition product even if the signal is sent after it is formally launched. Thus, consumers may ignore signal timing in judging the believability of a scarcity proposition. The evidence for a significant relationship between the signaling firm’s reputation and perceived believability implies that a firm’s record of being true to its word when launching limited-edition offers will have a positive influence on consumer perceptions of the related promotions. When a good reputation in this respect is accumulated over time by subsequent actions, consumers’ attitudes toward future scarcity strategies will be reinforced. It follows that, if a scarcity claim is detected as false, the worth of the product will be damaged and potential purchasers will believe future claims reluctantly if at all. The findings of the study lastly suggest that consumers who believe scarcity claims also accept the symbolic benefits associated with the product and that these two positive responses together have a correspondingly positive direct influence on their purchase intentions. Managerial Implications The present study has a number of managerial implications. Most importantly, marketing planners choosing to utilize scarcity strategy in a highly competitive environment will not succeed in creating a “hot” product and enhancing its perceived value if they do not overtly state the amount of supply available; on the contrary, they will dampen consumers’ trust. Thus, to win consumer confidence, marketing managers must aim to clarify the limited-edition proposition. A second implication of the study’s findings is that signaling reputation (the reputation of the signaling firm for believability) plays a momentous part in the shaping of the ultimate outcome. Therefore, marketers must fulfill their scarcity promises when releasing limited-edition products. No matter what short-term benefits might accrue from a promotion, being unable to live up to their claims will result in serious longer-term consequences. In other words, when aiming to make a product “hot” by means of a scarcity strategy, marketing strategists must not add to the original supply recklessly. They need to recognize that such a move will dilute the market value of the scarce product. Potential purchasers will be skeptical about future initiatives, and the tactic will prove to be more of a loss than a gain in the long run, in damaging the company’s reputation. Last but not least, because the believability of a scarcity strategy is used by potential customers to evaluate a product’s symbolic benefits and form their eventual purchase intentions, marketing strategists are strongly advised to disclose as many product-supply clues as possible to enhance positive perceptions of the strategy. 434

Limitations and Future Research The acknowledged limitations of the present research study present various opportunities for future research in the area. First, a casual backpack was selected as a target product. However, to avoid potentially confounding influences, neither its specifications nor a real brand name was included in the scenario booklet read by the participants in the experiment. Both of these conditions vary significantly from the reality of shopping for a casual backpack. Furthermore, those participants were undergraduate students at one university in one country, which clearly limits the generalizability of the findings and conclusions. They are certainly indicative, but future studies could profitably widen the scope of the enquiry. Secondly, only two levels of each signal characteristics were examined, which precluded examination of the exact form of the hypothesized relationships. Likewise, only three of the signal characteristics that are routinely manipulated in practice were examined. Others, such as signal visibility and signal consistency in different media, should be included in future work, to build a more complete picture of the importance of individual signal characteristic in affecting consumer perceptions and purchase behavior in the context of scarce products. Finally, the strategy of limited supply was the only one to be investigated among an array of scarcity strategies available, such as limited purchases and delayed product launch. The effects of these could be usefully studied in future research.

References [1] Stock, A. and Balachander, S., The making of a “hot product”: A signaling explanation of marketers’ scarcity strategy, Management Science, 2005, 51, pp. 1181-1192. [2] Lynn, M., Scarcity effects on value: A quantitative review of the commodity theory literature, Psychology & Marketing, 1991, 8, pp. 43-57. [3] Snyder, C. R., Product scarcity by need for uniqueness interaction: A consumer catch-22 carousel, Basic and Applied Social Psychology, 1992, 13, pp. 9-24. [4] Verhallen, T. M. M. and Robben, H. S. J., Scarcity and preference: An experiment on unavailability and product evaluation, Journal of Economic Psychology, 1994, 15, pp. 315-331. [5] Lynn, M., The psychology of unavailability: Explaining scarcity and cost effects on value, Basic and Applied Social Psychology, 1992, 13, pp. 3-7. [6] Lynn, M., Scarcity’s enhancement of desirability: The role of naive economic theories, Basic and Applied Social Psychology, 1992, 13, pp. 67-78. [7] Kamins, M. A., Celebrity and non-celebrity advertisements in a two-sided context, Journal of Advertising Research, 1989, 29, pp. 34-42. [8] Blair, E. A. and Landon, E. L, Jr., The effects of reference prices in retail advertising, Journal of Marketing, 1981, 45, pp. 61-69. [9] Urbany, J. E., Bearden, W. O. and Weilbaker, D. C., The effect of plausible and exaggerated reference prices on consumer perceptions and price search, Journal of Consumer Research, 1988, 15, pp. 95-110. [10] Kukar-Kinney, M. and Walters, R. G., Consumer perceptions of refund depth and competitive scope in price-matching guarantees: Effects on store patronage, Journal of Retailing, 2003, 79, pp. 153-160. [11] Beltramini, R. F. and Stafford, E. R., Comprehension and perceived believability of seals of approval information in advertising, Journal of Advertising, 1993, 22, pp. 3-13. [12] O’Cass, A., Political advertising believability and information source value during elections, Journal of Advertising, 2002, 31, pp. 63-74. [13] Atkin, J. L. and Beltramini, R. F., Exploring the perceived believability of DTC advertising in the US, Journal of Marketing Communications, 2007, 13, pp. 169-180. [14] Jung, J. M. and Kellaris, J. J., Cross-national differences in proneness to scarcity effects: The moderating roles of familiarity, uncertainty avoidance, and need for cognitive closure, Psychology & Marketing, 2004, 21, pp. 739-753. [15] Brock, T. C., Implications of commodity theory for value change. In A. G. Greenwald, T. C. Brock, & T. M. Ostrom (Ed.), Psychological foundations of attitudes, 1968 (pp. 243-278). New York: Academic Press. [16] Koford, K. and Tschoegl, A. E., The market value of rarity, Journal of Economic Behavior & Organization, 1998, 34, pp. 45-57. [17] Eisend, M., Explaining the impact of scarcity appeals in advertising, Journal of Advertising, 2008, 37, pp. 33-40. 435

[18] Wu, C. and Hsing, S. S., Less is more: How scarcity influences consumers’ value perceptions and purchase intents through mediating variables, Journal of American Academy of Business, 2006, 9, pp. 125-132. [19] Aggarwal, P., Jun, S.Y. and Huh, J.H., Scarcity messages: A consumer competition perspective, Journal of Advertising, 2011, 40, pp.19-30. [20] Heil, O. and Robertson, T. S., Toward a theory of competitive market signaling: A research agenda, Strategic Management Journal, 1991, 12, pp. 403-418. [21] Herbig, P. and Milewicz, J., The impact of marketing signals on strategic decision-making ability and profitability, Marketing Intelligence and Planning, 1995, 13, pp. 37-46. [22] Erdem, T. and Swait, J., Brand equity as a signaling phenomenon, Journal of Consumer Psychology, 1998, 7, pp. 131-157. [23] Park, C. W., Jaworski, B. J. and MacInnis, D. J., Strategic brand concept-image management, Journal of Marketing, 1986, 50, pp. 135-145. [24] Keller, K. L., Conceptualizing, measuring and managing customer-based brand-equity, Journal of Marketing, 1993, 57, pp. 1-22. [25] Bhat, S. and Reddy, S. K., Symbolic and functional positioning of brands, Journal of Consumer Marketing, 1998, 15, pp. 32-43. [26] Lilly, B. and Walters, R., Toward a model of new product preannouncement timing, Journal of Product Innovation Management, 1997, 14, pp. 4-20. [27] Eliashberg, J. and Robertson, T., New product preannouncing behavior: A market signaling study, Journal of Marketing Research, 1988, 25, pp. 282-292. [28] Kreps, D. and Wilson, R., Reputation and imperfect information, Journal of Economic Theory, 1982, 27, pp. 253-279. [29] Milgrom, P. and Roberts, J., Predation, reputation, and entry deterrence, Journal of Economic Theory, 1982, 27, pp. 280-312. [30] Robertson, T. S., Eliashberg, J. and Rymon, T., New product announcement signals and incumbent reactions, Journal of Marketing, 1995, 59, pp. 1-15. [31] Herbig, P. and Milewicz, J., The relationship of reputation and credibility to brand success, Journal of Consumer Marketing, 1995, 12, pp. 5-10. [32] Boulding, W. and Kirmani, A., A consumer-side experimental examination of signaling theory: Do consumers perceive warranties as signals of quality? Journal of Consumer Research, 1993, 20, pp. 111-123. [33] Price, L. J. and Dawar, N., The joint effects of brands and warranties in signaling new product quality, Journal of Economic Psychology, 2002, 23, pp. 165-190. [34] Lynn, M., Scarcity effects on desirability: Mediated by assumed expensiveness, Journal of Economic Psychology, 1989, 10, pp. 257-274. [35] Dodds, W. B., Monroe, K. B. and Grewal, D., The effects of price, brand, and store information on buyers’ product evaluations, Journal of Marketing Research, 1991, 28, pp. 307-319. [36] Grewal, D., Monroe, K. B. and Krishnan, R., The effects of price-comparison advertising on buyers’ perceptions of acquisition value, transaction value, and behavioral intentions, Journal of Marketing, 1998, 62, pp. 46-59. [37] Garbarino, E. and Johnson, M. S., The different roles of satisfaction, trust, and commitment in customer relationship, Journal of Marketing, 1999, 63, pp. 70-87. [38] Anderson, J. C., An approach for confirmatory measurement and structural equation modeling of organizational properties, Management Science, 1987, 33, pp. 525-541. [39] Bentler, P. M., Comparative fit indexes in structural models, Psychological Bulletin, 1990, 107, pp. 238-246.

436

B265 Non-hospitable Policies in the Hospitality Industry: A Societal Analytical Study in Malaysian Hotels Jagdeep Jassel1 Faculty of Business, Communications and Law, INTI International University, Malaysia jagdeep.jassel@newinti.edu.my Sandra Corlett2 Newcastle Business School, Northumbria University, United Kingdom sandra.corlett@northumbria.ac.uk Fiona Robson3 Newcastle Business School, Northumbria University, United Kingdom f.robson@northumbria.ac.uk

Abstract This study addresses the government policies affecting Malaysian hotels at a time of rapid growth in the Malaysian tourism industry. Building on current debates on the quality and shortage of labour in the hospitality industry, this research explores the challenges faced by Malaysian hotels in attracting and retaining suitable human resource. A set of three semi-structured interviews, involving the Chief Executive Officer, HR professional and line manager, were conducted in five leading hotels. Three additional interviews were conducted to gain feedback from individuals with HR and/or hotel industry expertise. Data were analysed using a priori and data driven coding following King’s (2004) template analysis method. This research reveals challenges faced by Malaysian hotels at a societal level, including government policies relating to English language, education policy, and policies on labour. Although this exploratory research may not be generalisable to all Malaysian hotels, its insights into strategic labour challenges may be transferable to other similar hotels and resorts. Discussion of the practical implications of the study’s results highlight the actions recommended as necessary for the three target audiences, namely, Hotel Managers (which include CEOs/General Managers, HR professionals and line managers), the Malaysian Association of Hotels, and the Government, to improve professional practice pertaining to strategic human resource management in Malaysian hotels.

1.0

Introduction

Organisations need to comply with the labour laws of the countries they operate in and adapt to national economic conditions, including the availability of suitable labour in local markets. Societal analysis is about how organisations adapt to the characteristics of the societies in which they are located and whether they are wise to do so. With the launching of an Economic Transformation Programme (ETP) in 2010, Malaysia intends to transform into a high-income nation by the year 2020 [2]. With a focus on the tourism sector as one of the enablers of Malaysian economic development, the country needs to enable its hoteliers to generate sufficient returns to encourage re-investment into the sector as well as attract higher quality staff [2]. The tourism industry is rapidly growing in Malaysia and generated some 20 billion ringgit in revenue for 2010 alone [3]. As most hotels operating in Malaysia work towards ensuring that they are able to attract tourists, efforts are in place to ensure that effective business strategic plans are formulated and implemented to achieve this endeavour. This paper focuses on the societal level challenges of attracting and retaining employees in Malaysian Hotels.

2.0

Literature Review

2.1 Societal analysis: Malaysian Hospitality and Human Resources Landscape Successful implementation of the recently launched Economic Transformation Programme (ETP) is seen as a key driver in Malaysia’s aspiration to shift towards a service-based economy. The ETP identified 12 national key result areas (NKEAs) including one focused on ‘revving up the tourism industry’ [2, p.7]. With the tourism sector expected to be leading Malaysia’s economic development, and hotels playing a critical part, the government needs to support the hospitality industry, in particular the hoteliers, to ensure they are able to sustain and grow the sector. [2]. 437

A review of the literature suggests three key challenges for hoteliers: policy on hiring foreign workers, education policy, and the English language proficiency. 2.2 Policy on foreign workers With employment expanding faster than labour force growth, Malaysia is experiencing a near- to- full employment situation [2] and this attracts the influx of both legal as well as illegal foreign workers. Despite Malaysia’s relatively long history of cross-border migration, the post- independence Government of Malaysia seems ill-equipped to manage the inflow of foreign workers into the country (Kassim, 2005). Policies on the employment of foreign nationals are determined by the Cabinet Committee on Foreign Workers. Foreign workers are divided into two major categories: expatriates, comprising the managerial and professionals; and unskilled and semi-skilled workers. The unskilled/semi-skilled category is more challenging in terms of recruitment and employment [4]. In 2010, 10% of foreign workers were employed in the service sector, which includes general tourism activities, of which hotels are a small but significant part. The Malaysian government periodically reviews the selection of source countries of foreign workers. This selection is usually based on economic, social and political considerations [5]. In the last three decades preference was given to workers from neighbouring countries in the ASEAN region, including Indonesia, Vietnam, Myanmar, India, Pakistan and Bangladesh. As the demand for these workers increased, more countries were included in the list over the last ten years, including Cambodia, Vietnam and Nepal. However, Indonesians remains the largest contributor of foreign workers (70%), followed by Nepalese (7.8%), Bangladeshis (7.3%), Vietnamese (4.1%) and Myanmarese (3.3%) [3]. Despite the large presence of foreign workers in the country, the policies and laws regulating immigration are chaotic [7] [8]. Foreign worker policies are created as a short-term remedy to labour shortage problems, and a comprehensive policy on immigration is not available. The absence of such a policy, as an integral part of national strategies for economic growth, results in the failure to appreciate and recognise the critical importance and contributions of migrant workers over the longer term [8]. The Malaysian government has been introducing gradual controls to regulate and monitor the influx of foreign workers in Malaysia. Procedures on foreign workers are revised from time to time by the Cabinet Committee of Foreign Workers, responding to the social, economic or political challenges [5]. In January 2011, in a move to combat local unemployment, companies in the manufacturing and services industries were banned from recruiting foreign workers, while recruitment in other industries was gravely restricted. With the unemployment rate rising to 4% in the first quarter of 2011, this ban has the backing of the country’s unions which seeit as an opportunity to improve job security and to drive up wages [9]. However, as with previous similar bans on foreign workers, these measures are generally short-lived, and do not last more than a year [8]. Policies on the banning and deportation of foreign workers are normally reversed when employers’ voice their problems of labour shortage [8]. With the global economic downturn where although companies are finding ways to cut costs in response to the global economic downturn, strict enforcement on foreign workers’ recruitment might not benefit Malaysia’s long-term economy. The policy to restrict recruitment of foreign workers may give the Malaysian government short-term political mileage, but its ability to spur longer term structural change in the Malaysian economy is debatable [9]. 2.3 English language proficiency and tourism education English is fast becoming the lingua franca of the modern world, and ‘its global dominance encourages many speakers of other languages to gain at least a working use of the language in many fields’ [10, p.334]. English is important in any business, but more so in the hospitality industry where international guests communicate directly with service providers in the host country. A breakdown in communication because of language proficiency may affect the level of satisfaction the guests could enjoy during their experience [11]. In recognising English as the language of global communication, competency in English is therefore essential if Malaysia is to become an innovative and high income economy [12], in line with the government’s Economic Transformation Plan. There has been a wide coverage in the local media regarding the debate on the importance of improving the proficiency in English language in Malaysia [15] [12]. The challenge of English proficiency for Malaysia is made apparent by its third place ranking (out of five neighbouring 438

countries) in the English Language Assessment (ELA), with Singapore and the Philippines being first and second respectively [13]. , Malaysians seeking employment opportunities with the many multinational companies setting up in Malaysia need to have effective English language skills to be able to perform various tasks in their workplaces [14]. The challenge of English proficiency can be attributed to the quality of tourism tertiary education and the extent to which languages are being taught [11]. Many employers prefer not to hire Malaysian graduates because of their poor command of English language [16]. A further contributing factor to this problem is the shortening from four to three years of Malaysia’s tourism degree courses [11], a move introduced to overcome the shortage of skilled labour in the tourism industry. With the increasing demand for higher education, it is expected that the number of graduates produced will continue to rise, but this will not be in tandem with the employment prospects, given the current economic conditions [15]. For instance, of the 175,806 graduates leaving institutions of higher learning in Malaysia in 2008, only 55.1% of them found employment within half a year [16]. As more companies, especially hotels, seek to hire graduates with good English language skills, graduates with weak English language proficiency will find it more challenging to secure a job.

3.0

Research design

The data for this paper are drawn from a wider study where a set of three semi-structured interviews (involving the Chief Executive Officer, HR professional and line manager) were conducted in five leading hotels. Three additional interviews were conducted with HR and/or hotel industry experts. Data were analysed using a priori and data driven coding following King’s [18] template analysis method. Given the potential business growth within the Malaysian tourism industry, this research aims to explore the impact of government policy and tertiary education issues for Malaysian hoteliers. There are about 2,300 hotels and resorts in Malaysia [3]. However, narrowing down to 4-star and 5-star hotels, there are 135 and 87 respectively. The sample of this research consists of 4 and 5 star hotels. This research focuses on a classification scheme based on star ratings. In its official website, the Malaysian Association of Hotels (MAH) explains that star ratings for hotels are tantamount to a systematic and transparent method of gauging a hotel’s quality. This research employs purposive sampling, and hence hotels with star ratings of five and four were included in this study since most hotels that fall within these categories are either chain hotels or independently owned properties of large conglomerates. These hotels are expected to be familiar with and have exposure to strategy formulation and implementation, and therefore appreciate the societal impact on strategy. All interviews were tape-recorded, using a high quality device, and documentation of data in the form of verbatim transcription enhanced the transparency. 3.1 Data analysis TEMPLATE ANALYSIS WAS USED IN ANALYZING THE DATA IN THIS RESEARCH, AFTER THE INTERVIEWS WERE TRANSCRIBED. AN INITIAL TEMPLATE WAS CREATED AFTER THE FIRST THREE INTERVIEWS WERE CONDUCTED. UPON COMPLETING ALL 18 INTERVIEWS, THE INITIAL TEMPLATE WAS REVISITED AND MODIFIED TO REFLECT THE EMERGING THEMES FROM THE DATA. THEMES THAT ARE RELEVANT TO THE SOCIETAL ANALYSIS FOCUSED IN THIS PAPER ARE ENGLISH LANGUAGE CHALLENGE, EDUCATION POLICY, AND POLICIES ON LABOUR. The notation system for relating specific data extracts to the participants is explained in Table 5.1. CEO/GENERAL HR PROFESSIONAL LINE MANAGER MANAGER A1 A2 A3 HOTEL A B1 B2 B3 HOTEL B C1 C2 C3 HOTEL C D1 D2 D3 HOTEL D E1 E2 E3 HOTEL E INDUSTRY POLICY MAKER PROPERTY HR CONSULTANT EXPERTS COMPANY IE1 IE2 IE3 TABLE 3.1

NOTATION SYSTEM FOR RELATING SPECIFIC EXTRACTS TO THE RESEARCH PARTICIPANTS 439

4.0

HUMAN RESOURCES CHALLENGES FACED BY MALAYSIAN HOTELS

IN THEIR STRATEGIC ATTEMPTS TO RECRUIT BETTER QUALIFIED EMPLOYEES AT VARIOUS LEVELS [28], MALAYSIAN HOTELS GENERALLY STRUGGLE TO ATTRACT A SUFFICIENTLY LARGE POOL OF SUITABLY QUALIFIED APPLICANTS. SOME OF THE CONTRIBUTING FACTORS THAT LED TO THE CHALLENGE OF EMPLOYING QUALIFIED STAFF ARE APPLICANTS’ POOR COMMAND OF ENGLISH, AND THE GOVERNMENT’S EDUCATION AND LABOUR POLICY. 4.1 ENGLISH LANGUAGE CHALLENGE POOR COMMAND OF ENGLISH LANGUAGE AMONGST EMPLOYEES AND APPLICANTS WAS ATTRIBUTED TO THE EDUCATION POLICY IN MALAYSIA. TO ADDRESS THE CHALLENGE, HOTELS TRY TO HIRE FOREIGN UNSKILLED WORKERS, BUT THEY TOO HAVE POOR COMMAND OF ENGLISH. “THEN WE HAVE THE FOREIGN WORKERS. MOST OF THEM DON’T SPEAK ENGLISH. AT TIMES WE GET FED UP TRYING TO EXPLAIN SOMETHING TO THEM” (A2). REGARDLESS, WHETHER THEY ARE FOREIGN WORKERS OR MALAYSIAN FRESH GRADUATES, THE CHALLENGE IS SIMILAR. “I MUST SAY, IN TERMS OF QUALITY, YOU KNOW HERE I AM INTERVIEWING THE GRADUATES, WHO COULD HARDLY SPEAK ENGLISH. WHILE THEY STUDIED HOSPITALITY OR TOURISM ETC. BUT THEY HAVE NO IDEA OF THE CONDITIONS OF THE MALAYSIAN HOSPITALITY LANDSCAPE OR WHATSOEVER” (C1). ONE RESPONDENT SOUNDED WORRIED WHEN COMMENTING ON THIS ISSUE, “SO I THINK ACROSS MALAYSIA…WE HAVE THE PROBLEM IN RECRUITING FRONT-LINERS. AND BECAUSE OF OUR EDUCATION SYSTEM…NOWADAYS…NONE OF THEM SPEAK ENGLISH. YOU HAVE THEM COMING FOR INTERVIEWS AND THE MINUTE YOU ASK THEM A QUESTION AND THEY ASK YOU “CAN I SPEAK IN MALAY?” SHOULD WE BE EDUCATING OUR TOURISTS TO LEARN MALAY BEFORE THEY VISIT OUR COUNTRY?” (E3). SOME RESPONDENTS FELT THAT THE GOVERNMENT SHOULD DO SOMETHING ABOUT IT. “GOVERNMENT HAS TO COME IN TO HELP. THE PRIVATE SECTOR CAN’T DO MUCH. HOW MUCH CAN THEY DO? YOU GET WHAT I MEAN? WE CAN’T BE HAVING ENGLISH LESSONS WHEN WE ARE CONDUCTING RECRUITMENT. AS FAR AS HUMAN RESOURCES IS CONCERNED IN THE INDUSTRY, I THINK SOMETHING NEEDS TO BE DONE” (E3). Even if some employees have a reasonable or basic command of the language, they often panic when communicating with international guests. “And our people, particularly Malaysians, they feel like talking in English…they are trying their best…but yet when they see the guests they can’t talk. They get jammed” (C2). Another respondent had a similar observation, “When a guest asks them something with a ‘slang’ or with a longer sentence they will stare at the guest like aliens. I can understand the frustration the guests and tourists have. I am just asking you simple question and you are looking at me blankly. This is not only happening here…it happens in KL too” (E3). However, it was also noted that the expectations of proficiency by guests differ, “You see if it is a foreign customer, they would expect the level of English to be low. They can excuse you. If it is an Asian customer, worst still a Malaysian customer, they will complain about the level of English. They look at it as a five-star hotel and you are supposed to have staff that communicate well in English” (E2). THE PROCESS OF INTERVIEWING CAN BE FRUSTRATING FOR SOME MANAGERS. “I ADVERTISE IN THE NEWSPAPER AND I GOT 21 RESPONSES. ALL OF THEM UNEMPLOYED GRADUATES. AND THEY DID ALL KINDS OF FUNNY DEGREES AND ALL THOSE UNBELIEVABLE COURSES THAT THEY WILL NEVER FIND A JOB WITH. SO I GIVE THEM A CHANCE TO BE EMPLOYED AS A TELEPHONE OPERATOR, AT LEAST SOME DECENT INCOME…BUT CANNOT. I SPEAK TO THEM IN ENGLISH AND THEY REPLY IN MALAY. I TELL THEM YOU MUST LEARN TO SPEAK IN ENGLISH” (E2). ANOTHER RESPONDENT HAD SIMILAR A SIMILAR EXPERIENCE “THE MOMENT YOU UNDERSTAND MY SECOND QUESTION, I END THE INTERVIEW. THANK YOU FOR YOUR TIME. YOU KNOW…IT IS FRUSTRATING THAT YOU GO THOUGH THE WHOLE INTERVIEW PROCESS, INTERVIEWING 10 PEOPLE AND YOU GET ONLY ONE WHO SPEAKS REASONABLE ENGLISH” (E3).

440

4.2 EDUCATION POLICY THE EDUCATION POLICY AND SYSTEM TOO HAS FAULTS THAT NEED RECTIFICATION. THE FINDINGS SUGGEST THAT MOST HOTELIERS ARE NOT HAPPY WITH THE WAY STUDENTS ARE ENROLLED INTO HOTEL MANAGEMENT SCHOOLS AND COLLEGES, AND THE SUPPLY OF WORKFORCE FROM THESE COLLEGES IS NOT ENCOURAGING. “YOU SEE IN MY LAST CONVERSATION WITH THE DEAN OF A LOCAL UNIVERSITY…I TOLD HIM…YOU CANNOT ASK YOUR STUDENT WHY THEY FAIL…THEY FAIL BECAUSE WHEN YOU RECRUIT THEM, YOU ARE NOT RECRUITING THEM FOR THE BUSINESS THEY WANT TO BE IN. YOU ARE RECRUITING THEM FOR A COMMERCIAL EXERCISE THAT YOU ARE IN” (D1). ANOTHER GENERAL MANAGER COMMENTED “70% OF STUDENTS THAT COME OUT FROM HOTEL COLLEGES NEVER END UP IN HOTELS. THEY END UP IN ALL KINDS OF DIFFERENT THINGS. THE OTHER 30% END UP WITH FAST FOOD CHAIN AND STUFF LIKE THAT. MAYBE 4-5% ENDS UP HERE…BECAUSE WE DON’T HAVE A SUCCESS STORY TO TELL TO PEOPLE” (A1). ONE GENERAL MANAGER WAS BLUNT IN SAYING “YOU ARE ALSO IMPACTED BY…FORGIVE ME FOR SAYING THIS…A VERY POOR EDUCATION SYSTEM. MAYBE IT IS HIGH FOR CERTAIN PEOPLE…BUT IN THE CONTEXT OF INTERNATIONAL STANDARDS…IT IS VERY LOW” (E1). Ironically, these many private and public hotel management colleges do not produce enough graduates for the hospitality market. “Then I ask the question, where is the pool that is supposed to be supporting me? Where are the colleges? Where are the schools? Where are the students from all these places? Why are they not supporting me? How many hotel management programs are running in this country today? If you tell me there are 2-3 thousand students in the hotel programs churned out on an annual basis, then where are they going?” (E1). It is difficult to comprehend that these students don’t want to work for 5-star hotels after completing a course in hotel management. “If I am a hotel management student, my first priority will be… my dream will be to work in a 5-star hotel. Not on a 4-star…but I will come knocking on a 5-star hotel. How come I don’t get anybody?” (E1). The reason for this could be the reality check the students get after knowing what is to be expected of them in this industry, i.e. the hard work involved. “We get a lot of students from the hospitality schools. But you will be surprised that after they have graduated more than three quarters of them decide not to work in hotels. Especially so after their practical training. Because they did not know there is so much of hard work” (E3). The colleges enrol students from neighbouring countries and most students return to their countries upon completion of studies. “Most of their students are from Indonesia and other overseas countries. The students go back after graduating” (E2). The government-sponsored colleges are said to be attracting students who are not genuinely interested in hotel management. “The government-sponsored schools on the other hand attract students who don’t have any interests in the hospitality industry. The students enrol for the monthly allowance they receive as students. When they complete their studies, they are more than happy to return back to their villages” (E3). And hospitality courses are also seen as a fast track qualification route, “Many youngsters now take up hospitality courses because it is the shortest and the cheapest” (E2). As mentioned earlier, the education system needs attention. “These hospitality schools really need to filter before they take these students in. The students need to be told what is expected. This industry is not just glamorous as they think it is. Otherwise we are just wasting resources and a lot of money. Because a lot of these courses are subsidised by the government. And because of this we are having issues and problems in getting quality staff” (D1). Another respondent shared similar thoughts, “After you have trained them and they have decided that no…this is not what I want to do. In fact we get better quality staff from people who have never attended hospitality school” (A2). “One of the reasons being is whether it is our education system…whether it is the way we are investing in the hospitality courses…we need to be a little bit tighter. The filtering has to be there otherwise a lot of money is being wasted” (IE2). The lower school level education policy also needs some rethinking. “They have taken geography out from the education system. So kids, they go to school now, know nothing about tourism. So when you study geography…you learn about different countries and the world. The young people…they don’t even know capitals of the world outside Malaysia. When you ask them…what is capital of England…they say Manchester United!” (IE1). Students at younger age are not given the wider picture of the industry and the career potential related to it. “There is a career here and where you can join and you can be earning more than a doctor is earning. I mean, it depends on the individuals. 441

Everybody can become a GM but when is the first time a kid hears about hotel management? When they finish Form 6, go to education fairs and they look at the career options…and you give them one hour or half an hour to decide…Do you want to this? Everyone is bent on becoming engineers, doctors, lawyers. In school, that’s what they are taught” (IE1). 4.3

POLICIES ON LABOUR

A challenge that is directly related to the scarcity of labour and strategic recruitment is government policies on labour. Most hotels are dependent on foreign unskilled labour which is relatively more cost effective. However, the present government policies on hiring foreign labour are not supportive to hoteliers. “We are trying to get them in. The local laws are not so favorable” (B3). Another respondent commented, “Labour is an issue. The government is making it difficult for us to bring foreigners. If we bring them we cannot put them in front line. But you see the policy is not clear. Enforcement is a problem. So that’s a big challenge” (C1). Some hotels try to provide authentic services, in areas like yoga, and need to hire people from abroad if necessary, but their effort is futile, “I was looking for an Indian yoga instructor. A real Indian-Indian. I wanted to promote it as authentic. We have been working on this challenge for the last eight months, and we only got a partial approval” (C1). Providing authentic service is not the only reason why hotels hire foreign workers. There are other reasons for it, “You see generally, you talk about why they want to hire foreigners…the main reason we hire them is because we think these guys can work, do not get tired and all that. Because they come here to work and earn money. They have the passion. We have to train them too” (C3). However the government is once again called to look into the feasibility of allowing foreign workers to be hired in this industry. “But the government must do something” (D3). “Of course we have a challenge of recruiting foreign workers. We will be lying if we say we are not. That is because there is a lot to do with the government…the systems that they have” (D1). One participant commented that the government or ministry could play a more important role in the industry, “In fact the ministry (my personal opinion) plays a small role…they just come in to shake hands in the end” (E1). Other government policies on labour include that of internship. “The state government runs one (internship programme) which we all participate in…but they have become a little bit more demanding. Last time the state government used to pay RM250 and the interns or trainees used to get RM500 per month. Now the state government says they are not going to contribute the RM250. We have to pay RM500 by ourselves” (E2). Hence, the HR managers in this location are thinking of an alternative method of starting their own internship programme. “So we were talking about setting up under the MAH umbrella, an apprenticeship programme and then what we are supposed to do is to get the industry experts to be involved” (E2). If this does not work, then hoteliers in this location will be badly affected. “So it has come to a stage where the industry is in such a state in Sabah that we are picking people from the villages and all those places and we give them the skills required to work here. There is no choice. Sabah state government doesn’t allow for foreign workers. In fact the immigration rule doesn’t even allow us to hire West Malaysians. West Malaysian employed in Sabah must have a minimum monthly salary of RM2500. Our challenge here is more difficult” (E3). With the number of new hotels being built and if foreign workers are not supplied then the industry is going to be badly affected. “We need to churn out the graduates for the industry. This year alone three new resorts are to open here. I think the Ministry of Tourism and the government must really realise that we have an issue…if we want our tourism to bloom and we at a stage where we are short of talent” (E2). However, there are some ‘positives’ with government policies too. The government is running some economic corridor projects which provide opportunities for fresh graduates to acquire additional soft skills and to prepare for their career. “When I started doing a search and calling around people, and luckily the Northern Corridor Investment Agency (NCIA), they brought the funds, made our lives easier” (E1).

442

5.0

DISCUSSION

5.1 GOVERNMENT POLICIES ON LABOUR This research found that hotels are quite dependent on political support in implementing strategic labour plans. The inconsistency in policy enforcement by government creates a situation that allows for hotels to exercise their political influence on certain government agencies. This supports the conclusion of Sheehan et al. [29] that there is a relationship between the HR function’s access to avenues of political influence and perceived organisational performance. Hotels are dependent on government support which includes training [30] and recruitment of foreign general labour. To manage labour cost and to circumvent high attrition rate within the industry, Malaysian hotels employ a strategy to hire more cost effective general labour from other developing countries such as Nepal, Myanmar and Bangladesh. Recruiting foreign workers benefits Malaysian hotels in terms of providing authentic services, for example yoga (C1). Besides, foreign workers seem to be able to withstand the physical demands of the job, “These guys can work, do not get tired and all that” (C3). However, hotels find it difficult bringing in foreign workers as the policies on recruitment are not clear and enforcement is inconsistent as some hotels are successful in securing these workers while others are not. The government does not have a comprehensive policy on immigration [8], and temporarily banned the hiring of foreign workers in January 2011 to combat local unemployment. Such policies, built on the concept of short- term focus, are chaotic [7]. As a result, hoteliers are facing the consequences of such short-term and inconsistent policies, “The policy is not clear. Enforcement is a problem. So that’s a big challenge” (C1). These inconsistent policies could be due to the problems the Malaysian government faces in recruiting or employing unskilled foreign workers [4]. There is also an argument that foreign labour and Malaysian workers do not compete for the same jobs. In fact, restricting the recruitment of unskilled foreign workers could generate more unemployment amongst Malaysians as some hotels will find it difficult to operate and might just move their business elsewhere. While the impact of the foreign labour policy on Malaysian economy is debatable, the impact of this policy as a labour challenge within Malaysian hotels cannot be underestimated. Another government policy concerns internship and training. The state government runs an internship programme which it used to partially subsidise the monthly allowances paid to interns. However, the government’s recent decision to no longer subsidise the scheme has caused a setback to hotels. The policy on internship needs to be re-examined. The study also found that in selected parts of the country there are government sponsored ‘economic corridors projects’ being initiated. These projects offer graduate training schemes for new graduates to acquire additional industry-relevant skills and prepare them for a career in the hospitality industry. Hotels that have benefited from these schemes have embedded this initiative as part of their business strategy to acquire and train employees. 5.2 ENGLISH LANGUAGE CHALLENGE POOR COMMAND OF THE ENGLISH LANGUAGE, WHICH IS LINKED TO THE EDUCATION POLICY WITHIN MALAYSIA, WAS FOUND TO BE ANOTHER CHALLENGE AFFECTING SHRM IN MALAYSIAN HOTELS. THE LACK OF ABILITY TO SPEAK IN ‘REASONABLE’ ENGLISH, AMONGST MALAYSIAN OR FOREIGN WORKERS AND JOB APPLICANTS, IS SEEN AS A DRAWBACK IN ACHIEVING STRATEGIC INITIATIVES. WHILE THE MALAYSIAN GOVERNMENT ASPIRES TO ACCELERATE THE TOURISM INDUSTRY AS PART OF THE ECONOMIC TRANSFORMATION PROGRAMME, THE ‘GLOBAL DOMINANCE’ AND BUSINESS VALUE OF ENGLISH LANGUAGE CANNOT BE IGNORED [10, P.334]. RANKING THIRD OUT OF FIVE COUNTRIES WITHIN THE REGION IN THE ENGLISH LANGUAGE ASSESSMENT, THE ENGLISH LANGUAGE CHALLENGE IS NOT ONLY RESTRICTED TO THE HOSPITALITY INDUSTRY, AS MANY MULTINATIONAL COMPANIES SETTING UP THEIR BASE HERE [14]. AS GUESTS BECAME MORE DIVERSE, HOTELS REQUIRE EMPLOYEES TO CONVERSE IN ENGLISH, AND THIS HAS A DIRECT IMPACT ON THE LEVEL OF SATISFACTION THAT THE GUESTS ENJOY DURING THEIR STAY IN THESE HOTELS [11]. THE CHALLENGE IS THEN EXTENDED TO THE ISSUE OF LACK OF CONFIDENCE WHEN CONVERSING IN ENGLISH WITH INTERNATIONAL GUESTS, ESPECIALLY THOSE FROM EUROPE OR THE AMERICAS. 443

THE RESEARCH ALSO FOUND THAT APPLICANTS PERFORM BADLY IN JOB INTERVIEWS AS A RESULT OF POOR COMMAND OF THE LANGUAGE. SOME MANAGERS COMPLAINED THAT APPLICANTS ARE UNABLE TO UNDERSTAND EVEN BASIC QUESTIONS ASKED IN ENGLISH IN INTERVIEWS. THIS SLOWS DOWN THE RECRUITMENT AND SELECTION PROCESS, WITH MANAGERS TRYING TO UNDERSTAND AND COMPREHEND THE RESPONSES OF THE CANDIDATES WHO DO NOT ARTICULATE WELL IN INTERVIEWS (E3). THOUGH ENGLISH IS NOT THE MEDIUM OF INSTRUCTION IN MALAYSIA, IT IS WIDELY SPOKEN AS A SECOND LANGUAGE. OVER THE YEARS, DUE TO THE CHANGING POLITICAL AGENDA IN THE EDUCATION POLICY, THE STANDARD OF ENGLISH LANGUAGE HAS DETERIORATED. 5.3 EDUCATION POLICY THE DECLINE IN THE QUALITY OF HOSPITALITY COLLEGE GRADUATES IS ATTRIBUTED TO THE RATHER WEAK EDUCATION POLICY. MALAYSIAN HOTELS WONDER WHY HOSPITALITY COLLEGES ARE NOT PRODUCING ENOUGH GRADUATES FOR THE INDUSTRY. THE POSSIBLE REASONS ARE THE PERCEIVED UNATTRACTIVE IMAGE OF HOTEL WORK, THE POSSIBILITY OF INTERNATIONAL STUDENTS RETURNING TO THEIR COUNTRY UPON COMPLETION OF STUDY, AND GOVERNMENT-SPONSORED COLLEGES ATTRACTING STUDENTS WHO ARE NOT GENUINELY INTERESTED IN HOSPITALITY. POLICIES, IN PARTICULAR CONCERNING THE ADMISSION OF GENUINE STUDENTS INTO HOSPITALITY COLLEGES, ARE ISSUES THAT MALAYSIAN HOTELIERS WANT THE RELEVANT GOVERNMENT AUTHORITIES TO LOOK INTO. BESIDES DEALING WITH THE PROBLEM OF HOSPITALITY COLLEGES NOT SUPPLYING ADEQUATELY TO THE LABOUR DEMAND OF MALAYSIAN HOTELS, THE QUALITY OF THOSE WHO CHOOSE TO WORK IN HOTELS IS ALSO QUESTIONABLE. THE MALAYSIAN GOVERNMENT’S DECISION TO SHORTEN THE DURATION OF DEGREE COURSES FROM FOUR TO THREE YEARS COULD HAVE CONTRIBUTED TO THIS SITUATION [11]. BESIDES, THE GENERAL LACK OF INTEREST IN TOURISM BY YOUNGER MALAYSIANS MAY BE DUE TO THE FACT THAT GOVERNMENT EDUCATION POLICY HAS TAKEN GEOGRAPHY OUT OF THE SYLLABUS IN PRIMARY SCHOOLS, AS HIGHLIGHTED BY A POLICYMAKER RESPONDENT (IE1).

6.0

CONCLUSION

The paper has explored the societal challenges in strategic employee resourcing within the context of the Malaysian hotel industry from the perspectives of three levels of managers: CEO/General Manager, HR professional, and line manager. From a practice perspective, this research is timely since the hotel industry is growing in Malaysia. It is worth stating that the contributions made by this research are generated by data that is context-specific and consequently the findings and conclusions have greatest relevance and applicability within the scope of the selected Malaysian hotels. Other hotels, in Malaysia or elsewhere, may view the findings and conclusions as being relevant to their own situation, provided they are confident that an evaluation of the characteristics and culture of their own situation has resonance with those in this research. Therefore, although generalisability [31] is not an aim of this research, the findings may be transferable to other hotels.

References [1] Boxall, P. & Purcell, J. (2011). “Strategy and human resource management”. 3rd edition: Palgrave Macmillan. [2] Malaysia. Prime Minister’s Department (2010) Economic Transformation Programme (ETP) – Kuala Lumpur. [Online]. Available at http://www.kpkk.gov.my/pdf/tahukak anda/ETP bi/chapter10.pdf (Accessed: 19 April 2011). [3] Malaysian Tourism Board, (2011), [Online] Available at: http://www.tourism.gov.my/en/contact/overseas.asp (Accessed 28th February 2011). [4] Kassim,A. (2004). Public Responses to Foreign Workers in Sabah. Seminar Proceedings. Universiti Malaysia Sabah, Kota Kinabalu. 444

[5] Kassim, A. (2005). Filipio Refugees in Sabah: Ambiguous Position, Uncertain Future. Paper presented at UNHCR Rountable on Migration and Refugees Issues. United Nation High Commissioners for Refugees (UNHCR). Kuala Lumpur. 13 – 14 June. [6] Jomo, K..S. (2005). International Migration: Selected Issues. Paper presented at UNHCR Rountable on Migration and Refugees Issues. United Nation High Commissioners for Refugees (UNHCR). Kuala Lumpur. 13 – 14 June. [7] Lim ,T.G.(2009). A Malaysian Fantasy: Less dependence on foreign workers. CPI.[Online]. Available: http://en.cpiasia.net/index.php?option=com_content&view=article&id=1657%3Aa-malaysian-fant asy-less-dependence-on-foreign-workers&Itemid=156 (Accessed 10 December 2011). [8] Devadason, E. (2011). Policy chaos over migrant workers in Malaysia. East Asia Forum [Online]. Available at: http://www.eastasiaforum.org/2011/.../11/policy-chaos-over-migrant-work] (Accessed 10 December 2011). [9] Harding, S. (2009), Tighter Controls on Foreign Workers hit Malaysian Businesses. World Entrepreneur Society. [Online]. Available: http://www.nytimes.com/2009/09/01/business/global/01iht-labor.html (Accessed 10 December 2011). [10] Wilson, J. P. (2005). Human resource development: Learning and training for individuals and organizations (2nd ed.). London: Kogan Page. [11] Thitthongkam, T., and Walsh, J. C. (2011). Tourism Education at the Tertiary Level and Competitive Advantage: A Comparison between Thailand and Malaysia, Journal of Education and Vocational Research Vol. 1, No. 1, pp. 26-35. [12] Paul, R. (2011). Manufacturing Sector’s Mission to Help Workers Master English. [Online]. Available: http://www.bername.com/bername/v5/newsfeatures.php?id=628584 (Accessed 3 December 2011). [13] The Malay Mail (2011). English proficiency: Malaysia ranks third in South-East Asia. [Online]. Available: http://mmail.com.my/content/74270-english-proficiency-malaysia-ranks-third-southeast-asia (Accessed 3 December 2011). [14] Rajadurai, J. (2004). The faces and facets of English in Malaysia. English Today, 20 (4), 54-58. [15] Kaur, S. and Clarke, C.M. (2009). Analysing the English Language Needs of Human Resource Staff in Manufacturing Companies. English for Specific Purposes Issue 3 (24), Volume 8. [16] The Star (2009). The Grad Dilemma. [Online]. Available at: http:/thestar.com.my/news/story.asp?file=2009/4/12/education/36439938/sec=education (Accessed: 4 May 2009). [17] Patton, M.Q. (2002) Qualitative Research & Evaluation Methods (3rd ed), Thousand Oaks, CA, Sage. [18] King, N. (2004b) ‘Using templates in the thematic analysis of text’, in Cassell, C. and Symons, G. (eds.). Essential Guide to Qualitative Methods in Organizational Research, Sage, London, pp 256-270. [19] Kervin, J.B. (1999) Methods for Business Research (2nd edn), New York, HarperCollins. [20] Jacob, H. (1994) ‘Using published data: errors and remedies’, in Lewis-Beck, M.s. (ed), Research Practice, London, Sage and Toppan Publishing, pp. 339-89. [21] Patzer, G.L. (1996) Using Secondary Data in Market Research: United States and World-wide, Westport, CT, Quorum Books. [22] Saunders, M., Lewis, P., and Thornhill, A. (2007) Research Methods for Business Students. 4th ed. London: Pearson Education. [23] Miles, M., and A. Huberman. 1994. Qualitative data analysis. 2nd ed. Thousand Oaks, CA: Sage. [24] Flick, U. (2009) An Introduction to qualitative research, 4th Edn, Sage, London. [25] King, N. and Horrocks, C. (2010) Interviews in Qualitative Research, Sage, London. [26] Crabtree, B.F. and Miller, W.L. (1999) ‘Clinical Research: A Multimethod Typology and Qualitative Roadmap’, in Crabtree, B.F. and Miller, W.L. (eds.). Doing Qualitative Research, 2nd Edn, Sage, London, pp 3-30. [27] King, N. (1998) ‘Template Analysis’, in G. Symon and C. Cassell (eds.). Qualitative Methods and Analysis in Organizational Research, Sage, London. [28] Millmore, M. (2003). Just how extensive is the practice of strategic recruitment and selection Irish Journal of Management, 24(1), 87-108. [29] Sheehan, C., Cooper, B., Holland, P., & De Cieri, H. (2007). The relationship between HRM avenues of political influence and perceived organizational performance. Human Resource Management, 46(4), 611−629. 445

[30] Winterton, J. (2007). ‘Training, development and competence’. In Boxall, P., Purcell, J. and Wright, P. (eds) The Oxford Handbook of Human Resource Management. Oxford: Oxford University Press. [31] Lincoln, Y.S. and Guba, E.G. (1986). “But Is It Rigorous? Trustworthiness and Authenticity in Naturalistic Evaluation.” New Directions for Program Evaluation 30 (summer):73-84, Naturalistic Evaluation, edited by David D. Williams. San Francisco: Jossey-Bass.

446

B329 Exploratory positive analysis about the measure intention to the Ecological Issue of Small and Medium-sized enterprises in Japan Masahiro Maruyama, Meijigakuin University, Tokyo, Japan E-mail: maru1994@eco.meijigakuin.ac.jp

Abstract Introduction Ecological issue is an important social problem. As a factor by which a company tackles a social concern, regulation by law, execution of a corporate social responsibility (i.e. CSR), and the contribution to corporate earnings (e.g. exploitation of new business, cost reduction) can be considered. This study analyzes exploratively factors that Japanese small and medium-sized enterprises tackle an ecological issue. Method Positive analysis is conducted based on the raw data of the large-scale questionnaire (N=6,828) investigated for Japanese enterprises in 2010 (Before Great East Japan Earthquake and Nuclear Accident in 2011). The data for this secondary analysis, “The questionnaire about the measure for the ecological problem of small and medium-sized enterprises, Japan Finance Corporation Research Institute,” was provided by the Social Science Japan Data Archive, Center for Social Research and Data Archive, Institute of Social Science, The University of Tokyo. CHAID analysis, a type of decision tree technique, is adopted in this study because it is suitable for analyzing the causal relationship between nominal scale data exploratively. Statistical Software is SPSS(Ver20.0) Decision Trees. Study Companies which answered that “I would like to continue to expand the measure for an ecological issue” have the strong tendency answered that “developed new products or new business” and “improved the corporate image” by the old measure. And they have the strong tendency answered that “purchasing recycle products to carry out CSR or contribute to society or local area” For urging the measure to the ecological issue, therefore, it will be effective to notify of the measure contributes to execution of social responsibility, and contributes also to the business expansion of its company rather than exerting coercion by laws and regulations.

447

B403 Mergers and Acquisitions in the Turkish Retail Sector 1 ibrahim AKGÖBEK, Konya , Turkey E-mail: ibrahimakgobek@hotmail.com

Abstract Developments of the globalization and information technology which is the inevitable two tendency of the last century becomes a very effective especially in the economic arena and reshapes the phenomenon of competition. Increasing the pressure competition day by day when world is shrinking continuously, plays a role as the driving force in the growth which is the primary purpose of profit maximization of enterprises. A business combination is one of the most preferred growth strategies on the basis of all the assets and liabilities in a common pool To create a synergy of two or more activities of the entity. It can be said that to maintain the activities of competitors together by joining forces creates a positive impact on competitive advantage. This study is composed of two main parts. The process of transformation occurring in business structures is investigated by explaining the changing face of competition in the first part of the study within the framework of globalization and growth concept is described in detail that is fundamental dynamics of this transformation. Theoretical information that related to take business mergers and acquisitions are given as growth strategy on the second part.

Key Words: Globalization, Strategy, Growth, Mergers and Acquisitions

448

Management II Pullman Bangkok King Power, EPSILON 2013/1/27 Sunday 10:30-12:00 Session Chair: Prof. Anna Maria Vasquez Rivera B367 An Inventory Model with Imperfect Quality and Capital Investment Policy Tien-Yu Lin︱Overseas Chinese University B432 Exploring the Factors Effecting the Intention to Reaccess Mobile Application Store by University Students in Bangkok, Thailand Chayanee Sukawat︱Assumption University B434 A Study on the Relationship among Customer Loyalty Program, Relationship Commitment and Customer Loyalty, a Case of A Hypermarket in Bangkok, Thailand Achaya Klavaech︱Assumption University B435 Factors Influencing Intention to Reuse Alipay E-Payment of Working People in Qingxiu District, Nanning, China Xuefeng Li︱Assumption University B436 Factors affecting Thais organic food purchase behavior in Bangkok, Thailand Sasanun Kittipakdee︱Assumption University B620 Impact of Cooperatives to the Lives of Its Members: Basis for Extension Project of BAT State U Anna Maria Vasquez Rivera︱Batangas State University

449

B367 An Inventory Model with Imperfect Quality and Capital Investment Policy Tien-Yu Lin, Department of Marketing and Supply Chain Management, Overseas Chinese University, Taichung 407, Taiwan E-mail: admtyl@ocu.edu.tw

Abstract The issue of inventory has been studied by academic researchers and practitioners for a long time. One of the most important topics is economic order quantity (EOQ) model. Traditionally, EOQ models assumptions that all units produced are of good quality. Obviously, it is impractical in real applications because the production processes (including machines and operators) may be out of control. In general, the retailers perform a 100% inspection process when they received a batch items with imperfect quality. Many semiconductor industries provide good examples. This paper introduces the idea of capital investment to accelerate the inspection processes and thus set-up cost, the holding cost, and screening cost could be reduced. Therefore, an optimal inventory model with imperfect quality and capital investment policy will be conducted in this study. An efficient algorithm will develop to help managers making their decision quickly and accurately. Numerical example is given to illustrate all results obtained by this proposal and assess the profit enlargement by adopting capital investments. Managerial implications are also included. Keywords: Inventory; Imperfect quality; Capital investment; Overlapping order.

Introduction In recent years, the issue of economic order quantity with imperfect quality has received considerable attention from academicians and practitioners. Numerous studies have demonstrated that the production process may deteriorate and thus defective items may occur. Recently, Salameh and Jaber [1] developed an EOQ model with imperfect quality in which the defective items could be sold at a reduced price by the end of the screening process for each batch. Ever since the above model, which is more reasonable than the traditional EOQ model was developed, many extensions were developed. Cardenas-Barron [2] corrected an error appearing in the work of Salameh and Jaber [1]. Goyal and Cardenas-Barron [3] reconsidered the task done in Salameh and Jaber [1] and presented a simplified method to determine the optimal lot size. Chan, Ibrahim and Lochert [4] proposed a non-shortage model similar to that in Salameh and Jaber [1], wherein products can be classified as good quality, good quality after reworking, imperfect quality and scrap. With respect to the inventory model proposed in Salameh and Jaber [1], Chang [5] fuzzified the defective rate and the annual demand and then derived the corresponding optimal lot sizes. Huang [6] investigated a single-vendor single-buyer integrated production-inventory problem, where the buyer’s inventory policy follows the Salameh and Jaber’s model. Papachristos and Konstantaras [7] re-studied and developed the sufficient conditions for models given by Salameh and Jaber [1]. Eroglu and Ozdemir [8], Wee et al. [9], and Chang and Ho [10] further extended Salameh and Jaber’s work to the case in which shortage backordering is permitted. Building upon the work of Salameh and Jaber [1], Maddah and Jaber [11] employed renewal theory to correct the flaw in their work and extended the analysis by allowing several batches of defectives to be consolidated and shipped in a single lot. Jaber et al. [12] assumed the percentage defective in a shipment reduces in conformance with a learning curve and thus developed two models subject to learning effects. Maddah et al. [13] developed two models for newsvendor and EOQ-type inventory systems under random yield and items of different quality. More recently, Wahab and Jaber (2010) presented models based on Salameh and Jaber [1], Maddah and Jaber [11], and Jaber et al. [12] with different holding costs for good and imperfect items. Cardenas-Barron [14] considered a production system with backordered in which the defective items could be reworked. Khan et al. [15] extended Salameh and Jaber’s work to the EOQ model for items with imperfect quality with learning in inspection. Other related extensions include Huang [6], Chung et al. [16], and Lin [17] by focusing the 450

idea of imperfect quality into a supply chain topic. Note that all of the above researchers assumed there was no shortage during the screening duration. However, this assumption, as in Salameh and Jaber [1], may not be true because defective items may be screened out under several consecutive screenings, thus leading to shortages. Therefore, Papachristos and Koustantars [7] questioned the validity of the assumption appearing in Salameh and Jaber’s [1] work but failed to provide a correction for this defect. They merely concluded that there is no easy solution that guarantees the validity of this scenario. More recently, Maddah et al. [13] developed a practical alternative, an order “overlapping” scheme that allows meeting the demand during the screening process from the “previous order” to avoid shortages. Indeed, this method could efficiently eliminate the uncertainty of shortages because the good items provided in the previous order can be serviced during the screening period. Recent studied have begun to consider how to realize capital investment to reduce set-up cost and improve production quality. In general, production quality is usually a function of the state of the process. Thus, the relationship between production lot size and the quality of the product may. Porteus [18] studied the effects of quality improvement by further introducing the investing options. Porteu’s work actually has encouraged many researchers to deal with modeling the quality improvement issues. For example, Keller and Noori [19] extended Porteus’ work to the situation where the demand during lead time is probabilistic and shortages are allowed. Hong and Hayya [20] generalized Porteus’ work by including a budget constraint to study the economic benefits of reducing set-up cost and improving process quality. Lee et al. [21] studied investment in quality improvement in order to reduce the proportion of defective items and affect the inventory cost, profit loss, and internal and external failure costs. Hou and Lin [22] studied the effects of an imperfect production process on the optimal production run length when capital investment in process quality improvement is adopted. The optimal lot sizing and capital investment are appropriately determined, and relevant critical performance measures are also discussed. Lee [23] presented a cost/benefit model for investments in inventory and preventive maintenance in an imperfect production system in order to increase product and service quality. Lin and Hou [24] considered an inventory system with random yield in which both the setup cost and yield variability can be reduced through capital investment. They presented an iterative solution procedure to find the optimal order quantity and reorder point and then the optimal setup cost and yield standard deviation. However, for mathematical simplicity and practical convenience, the majority of above mentioned literature used a truncated Taylor series expansion for the exponential term to present the annual cost function. Consequently, they only derived an approximated solution which was not an optimal one and resulted in over value of total annual cost. The comprehensive overviews could be found at Yano and Lee [25], Sarker and Coates [26], Wright and Mehrez (27), Woo et al. [28], and Zhang et al. (29). Note that all of the above studies focused on the economic production quality (EPQ) model but neglected to discuss the economic order quality (EQQ) model with imperfect, which is needed to screening for each lot received. Based on the above arguments, this study is to develop a cost minimization model with capital investments to explicitly obtain the optimal lot sizing and investments in screening processes improvement. Specifically, this paper deals with the retailer’s inventory model for items with imperfect quality and capital investment in which the retailer could employ new screening process to short the inspection duration. The benefits caused by the less inspection duration are less screening cost, less holding cost of good and imperfect quality items, and more interest earned, which are also discussed in this paper.

Notation and assumptions The following notation and assumptions are adopted throughout this paper to develop the mathematical model. Notation Q order size D demand rate K ordering cost per order I interest/$/year p percentage rate of imperfect quality items in Q f(p) probability density function of p 451

x x0 v w d hg hd b i

original screen rate, x>D screen rate, x0  D unit selling price of perfect items unit salvage value of scrap items, wD. (3 The holding cost of good items stored in a specific warehouse is higher than that of imperfect items in another warehouse. (4) Shortages are not allowed (5) Relationship between screening rate, x, and capital investment in screening process improvement,  x , is described by

 x x  b lnx x0  1

Mathematical model Consider the inventory model with imperfect quality and let T be the ordering cycle duration, defined as the time between the placements of two orders. The 100% lot screening process is finished at time t. Unlike Salameh and Jaber’s [1] work, this paper assumes the retailer could make capital investment to accelerate its screening rate and thus four mainly advantages are found: (1) less screening cost (2) less holding cost of imperfect quality (3) less holding cost of good items (4) additional interest earned. The cycle time T is defined as perfect items are exhausted and can be expressed as

T  1  p Q/D

(1)

Let TR(Q,x) and TC(Q,x) be the total revenue and the total cost per cycle, respectively. TR(Q,x) includes the revenues from good items, imperfect items, and additional interest caused by imperfect sale earlier than the original one. Therefore, TR(Q,x) is expressed as

TRQ, x  vQ1  p   wQp  wQpI Q x0  Q x

(2)

TC(Q,x) consists of procurement cost per cycle, set up cost per cycle, screening cost per cycle, holding cost of good items, holding cost of imperfect quality, and the amortized total capital cost. Thus, TC(Q,x) could be expressed as follows. TCQ, x   cQ  K 

2 dQx0 Q 1  p hg   hd  hg x x



 pQ 2x

2



2     hg  Q1  p    i x x  , (3)  2D   

where  x x   bx x0   1 and  x x  denotes the investment cost of changing the screening rate form the level x0 to the level x, x  x0 . The total profit per cycle, TP(Q,x), can be expressed as

TPQ, x   TRQ, x   TCQ, x  452

 vQ 1  p   wQp  wQpI Q

x0  Q

dQx0 x   cQ  K  

Q 2 1  p hg

x

x

   pQ      hg  Q1  p    ib x  1 (4)  hd  hg     2D    x0   2x  The expected profit per unit time by the renewal reward theorem (Ross, 1996) is given by





2

2

ETPU Q, x  ETPQ, x ET  ,

(5)

where

2 dQx0 Q 1  E phg  x x

ETPQ, x   vQ 1  E p  wQE p  wQI T  Q x E p  K  2   2  E pQ 2      hg  Q E1  p    ib x  1  cQ ,  hd  hg  x     2 x 2 D  0     





and

ET   1  E pQ D . Thus, the expected profit per unit time is given from equation (5) as Dv  wE p  dx0 x  c  KD  Dibx x0  Dib Q ETPU Q, x   1  E p  









 

Q wIE p  DwIE  p x  Dhg  x  D hd  hg E p 2 x   hg E 1  p 2 2

(6) 1  E p Our objective is to minimize the integrated total cost by simultaneously determining the order quantity and the screen rate. To find the unique solution we need to show that the Hessian matrix of Eq. (6) is positively definite. However, it is not easy to determine the convexity of the Hessian matrix in Eq. (6). Thus, we employ an alternative procedure to obtain the profit function properties. We further develop an algorithm to determine the optimal solution.

Methodology and the algorithm To find the unique solution for the expected relevant profit E[TPU(Q,x)], the following property is needed. Property 1.

For fix Q, E[TPU(Q,x)] is concave in x.

According to Property 1, the optimal value of x can be determined by letting ETPU Q, x x  0 , which yields x* Q  

 









x0 Q 2 wIE p  hg 1  E p  hd  hg E p 2  dx0Q

(7) ib Substituting Eq. (7) into Eq. (6), we have the following expression of corresponding total expected profit ETPU Q : ETPU Q   





 

Dv1  E p  wE p  Q wIE p1  E p  hg E 1  p 2 2  KD  Dib Q



1  E p







 



2 D ib x0  wIE p  hg (1  E p)  hd  hg E p 2  dx0 Q  cD 1  E p

Equation (8) yields



2 2 ETPU Q  wIE p1  E p  hg E 1  p  2  KD  Dib Q   Q 1  E p

453

(8)











Dibd Q 2 ib x0  wIE p  hg (1  E p)  hd  hg E p 2  dx0 Q 1  E p

 2 1

(9)

   ETPU Q  D     2  4 2Q K  ib  ibd 2   ibd   2  2 , Q 2 Q 1  E p       where   ib x0  wIE p  hg (1  E p)  hd  hg E p 2  dx0 Q . 2

3

1





(10)





3  1      Equation (10) implies that E[TPU(Q)] is concave on Q if 2Q K  ib  ibd 2   ibd 2  2  2  0 .       Obviously, the closed form expression for Q* would not easily be shown. Fortunately, we can obtain the bounds of Q* by comparing it with the following values of Ql and Qu. These bounds could significantly enhance the searching procedure of Q*. The following proposition shows the bisection method based on the intermediate value theorem is employed to find Q*.

Proposition 1: Ql  Q*  Qu , where

Qu 



 



  12 



D K  ib  ibd ib wIE p  hg 1  E p  hd  hg E p 2  d x0





hg E 1  p 2 2  DwIE  p x0

,  1  2   D K  ib  ibd ib wIE p  hg 1  E p  hd  hg E p 2  dx0 x0 Ql  max 1,  hg E 1  p 2 2  DwIE  p x 0     The optimal capital investments in screening process improvement can be determined by following Eq. (11) when Q* is obtained:  x wQ2 IE  p  dx Q  Q 2 h 1  E  p  Q 2 E p h  h 2 ib    0 g d g * (11)  x  b 0  1 x0     Employing the bounds in Proposition 1, the following algorithm is developed to find the optimal order lot size and optimal screening rate such that the total expected profit is maximized.



 















 

 



Algorithm: Step 1. Find Q*  Ql , Qu  by bisection method such that Eq. (9) less than , where 0≤/ 30 years

61,6%

Validity Test Result Validity test use confirmatory factor analysis. Rule of thumbs for factor loading values is greater than or equal to 0,4. Table 1 shows taht all the item of questions are valid. Tabel Validation Test Result Item

Factor

Item

Loading

Factor

Item

Loading

Factor

Item

Loading

Factor

Item

Loading

Factor Loading

Co1

0,757

Co5

0,568

So4

0,698

AA4

0,753

Ct1

0,871

Co2

0,793

So1

0,662

AA1

0,627

Cv1

0,587

Ct2

0,936

Co3

0,702

So2

0,638

AA2

0,762

Cv2

0,882

Ct3

0,863

Co4

0.450

So3

0,762

AA3

0,787

Cv3

0,894

D3

0.855

D2

0.675

D3

0.897 *Co ; Concept orientation, So ; Socio orientation, AA: Atittude, Cv : Coviewing, D; Discuss, Ct; Control

Reliability Test Result Table 2 Reliability Test Results Item

Alpha Value

Criteria

Concept Orientation

0,690

Reliable

Social Orientation

0,648

Reliable

505

Attitudes toward Advertising

0,744

Reliable

Control TV

0,882

Reliable

Dicussion TV advertising

0,801

Reliable

Coviewing TV

0,759

Reliable

Construct reliability was measured using Cronbach's alpha values. Its reflecting the internal consistency of a measuring instrument. Rules of thumbs must be more or equal to 0,6 [19]. Table 2 shows that all the variable are reliable. Mean Comparison on Family Communication Pattern Tabel 3 shows that the family communication patterns that to be used in Yogyakarta is mostly pluralistic type. It means that mothers in Yogyakarta tend to give more children opportunity to build their consumer learning and give children opportunity to express their opinion. This result is confirm with Focus Group Discussion that held before doing this research. Participant of FGD are mothers in Yogyakarta who has children in pre operational stage (3-7 years). Table 3 Distribution of Family Communication Pattern Typology

Percentage (%)

Leissez faire

25,7

Protective

23,2

Pluralictic

27,4

Concensual

23,6

Table 4 Focus Group Discussion Variable

Result

Family Communication Pattern

Mothers give children an opportunity to develop their consumer learning but still give them guideline how to become good consumers

Attitude towards Advertising

Mothers have negative attitude toward advertising (many case they dont believe with TV advertising)

Coviewing

Mother did coviewing only when they have free time (weekend).

Discuss

Mothers discuss content of TV advertising to their children.

Control TV Viewing

Mothers give a rule to their children on how many hour, what kind of TV programme that they can watch.

506

Hypothesis Result The Hypothesis were tested in one way MANOVA with family communication as independent variable. The test of hypothesis is used SPSS 16.0, we use one way MANOVA with familiy communication as independent variable. The correlation from dependent varibel is ranged from ρ= 0,24 for control TV viewing and negative towards advertising to ρ= 0,40 for coviewing and negative attitude toward advertising. The next analysis is use univariate ANOVAa and Tukey HSD paired comparison. Family communication was related to all the dependent variable (Wilks’λ13.000 = .776, F= 8 .45, p .05). Thai students expected their relatives and school personnel and other related people outside of the schools to fill in the vacuum of a school psychologist significantly (p < .01) more than their Korean counterparts did in all roles and functions. KEY WORDS: roles; functions; school psychologist; Thai; Korean

Thai vs. Korean Students’ Perceptions on Roles/Functions of School Psychologists School psychologists are highly trained in both psychology and education work collaboratively with teachers, parents and other related professionals to provide supportive learning environments and improve students in behavioral, educational, and mental health/emotion aspects. Therefore, roles and functions of school psychologists generally include assessment, counseling students, intervention, consultation with teachers, and consultation with parents (Meacham and Peckham, 1978; Ford and Migles, 1979; Monroe, 1979; Violato et al., 1981; Bardon, 1982; Bahr, 1996; Watkins et al., 2001; Farrell et al., 2005; Farrell et al., 2007). It is important to compare different countries on their perceptions and practices of school psychology. School psychology can be understood best through its international dimensions since the field of school psychology continues to develop in many countries (Oakland and Jimerson, 2007; Jimerson et al., 2007) and it is most likely to be improved by learning on this matter from one another (Oakland, 2003). Many survey studies have been conducted concerning roles and functions of school psychologists internationally (Zins et al., 1995 as cited in Watkins et al., 2001) by comparing roles and functions of school psychologists in various countries. See, for example, Jimerson et al. (2004) compared roles and functions of school psychologists in five countries, i.e., Albania, Cyprus, Estonia, Greece, and Northern England. Jimerson et al. (2006) compared roles and functions of school psychologists in five more countries—Australia, China, Germany, Italy and Russia. Farrell et al. (2005) compared roles and functions, as perceived by teachers, of school psychologists among eight countries, i.e. Cyprus, Denmark, England, Estonia, United States, Greece, South Africa, and Turkey. Oakland and Cunningham (1992) compared 54 countries categorized into developed and developing countries on a 873

variety of aspects including roles and functions of school psychologists. Finally, Jimerson et al. (2007) provided descriptions of school psychology services to children and youth in 43 countries and compared roles and functions of school psychologists in these different countries. After reviewing research literatures on school psychology as well as roles and functions of school psychologists as mentioned above, it was clear that comparative studies in psychology mostly involved countries in Europe and North America. Little research has been conducted comparing countries in Asia where school psychology is relatively less mature. Actually, school psychological research in any Asian country is relatively rare. For example, more than 20 years ago in Thailand, Boonruangrutana (1987), in his article entitled School Psychology in Thailand, mentioned the assessment role of a guidance teacher whose roles and functions are similar to school counselors (not school psychologist). This is not surprising considering the fact that the profession of school psychologists in Thailand is currently at the very beginning stage. There is no official job title ‘school psychologist’ in Thailand. Only recently were there some studies examining roles and functions of a school psychologist in Thailand as seen by students and teachers if school psychologists are not available. Tangdhanakanond and Archawamety (2007) studied Thai college students’ perceptions of a school psychologist’s roles and functions to consider how important of each role and function rated by Thai college students. Moreover, Tangdhanakanond and Archawamety (2007) also examined students’ specification on who should serve the functions of school psychologists in the absence of school psychologists. Tangdhanakanond (2009) also did a further study on roles and functions of a school psychologist as perceived by Thai high school students. In addition, Archwamety et al. (2009) compared roles and functions of a school psychologist as perceived by college students in Thailand where the school psychology profession is in the initial stage and their counterparts in the U.S. where the profession is already at the mature stage. As for reviewing literatures on school psychology profession and the roles and functions of a school psychologist in South Korea, it was found that school psychology in South Korea is also in the initial stage (Chung and Shin, 2007). Like Thailand, there is no official job title ‘school psychologist’ in South Korea (Chung and Shin, 2007). However, in comparison with the current status of school psychology profession in Thailand, the infrastructure of school psychology profession in South Korea is more developed. That is evidenced by the establishments of the national school psychological association in 2002 in South Korea, as well as the issuance of the journals under the theme of school psychology to disseminate information advancing the knowledge and practice of school psychology (Chung and Shin, 2007). Additionally, it was found from Shin, Kim, and Lyu (2004)’s survey that assessment, intervention, and consultation were the necessary services perceived by Korean high school teachers. It was also indicated by Shin et al. (2004) that particularly, the level of perceived necessity for intervention services was higher than that of other school psychological services. Since research studies on school psychology in Asian countries (especially, comparative studies) so far have been limited, this provides a good opportunity to examine if roles and functions of school psychologists as perceived by Thai and Korean education students are different according to the different cultural contexts. The purpose of the present study was therefore to compare Thai and Korean college students on their perceptions of the roles and functions of school psychologists. More specifically, two research questions were posed, i.e., (a) Do Thai and Korean education students differ in their rating of the importance of the different roles and functions of a school psychologist? (b) Who do Thai and Korean education students think should perform the various functions of an unavailable school psychologist? Because South Korea, compared with Thailand, has a more developed infrastructure of a school psychology profession and research findings of Shin et al. (2004) indicated the necessity of school psychological services in South Korea as mentioned earlier, it was hypothesized that (a) Korean education students are more likely to rate roles and functions of a school psychologist as more important than their Thai counterparts, and (b) Thai education students are more likely to choose the related personnel to assume every functions in the absence of a school psychologist than their Korean counterparts.

Method Participants Four hundred thirty-one undergraduate students (sophomores and juniors) from the colleges of education in the leading universities of Thailand and South Korea served as participants of this study. The number of students was comprised of 193 Thai students (45 male and 148 female) and 238 Korean 874

students (82 males and 156 female). Multistage random sampling was employed to get the samples from each country. Stratified random sampling was firstly conducted using student status (sophomore and junior) as a stratum. Then, a simple random sampling was used to get the samples from sophomore and junior groups. Instrument A questionnaire entitled ‘Survey of Education Students on the Profession of School Psychologists’ was firstly written in Thai. Subsequently, the questionnaire was translated into Korean by a Thai-Korean bilingual, then back-translated by a different Thai-Korean bilingual for the validation. The questionnaire consisted of three parts. Part one asked respondents to supply their demographic information (i.e., students’ gender, status, major field of study, and age) by filling out the checklist. It also asked the respondents to rate their familiarity with the profession of school psychologists on a five-point rating scale. Part two in the questionnaire asked the respondents to rate on a five-point rating scale on the importance of each function of school psychologists (assessment, counseling students, intervention, consultation with teachers, and consultation with parents). As for part three, respondents were asked in the checklist to mark or specify who should perform those functions in the absence of a school psychologist. For assessment function, the administration of standardized achievement tests and that of psychological scales (i.e., IQ test, scholastic aptitude test, and personality test) were mentioned. As for counseling students, intervention, consultation with teachers, and consultation with parents functions, students’ behavioral, educational, and mental health problems were mentioned in each function (Jimerson et al., 2007). The reliability of the questionnaire determined by Cronbach’s generalizability (G) coefficient (see Cronbach et al., 1982) were 0.92 and 0.93 for the Thai and Korean versions, respectively. Procedure The questionnaires were administered to respondents in the Thai and Korean classrooms under the permission of all classroom instructors and their students in order to maximize the return rate. The respondents were allowed to complete the questionnaires in ten minutes before the end of the classes. A two-way analysis of variance with repeated measures on one factor was employed to compare Thai and Korean education students on the perceived importance of the various roles and functions of a school psychologist. The independent factor was group (Thai vs. Korean students), and the repeated-measure factor was the importance rating of the role/function of a school psychologist (assessment, counseling students, intervention, consultation with teachers, and consultation with parents). A chi-square analysis was employed to compare Thai and Korean education students on who they thought should perform the various roles and functions in the absence of a school psychologist.

Result Table 1 and Figure 1 show the mean importance ratings of the various roles and functions of a school psychologist by Thai and Korean education students and the standard deviations. Table 1 shows the overall mean importance rating of each role/function as well as mean ratings of its sub-roles/functions while Figure 1 shows only the overall mean importance rating of each role/function. It was found that Thai education students reported that counseling students was the most important role/function of a school psychologist (M = 4.36, SD = 0.67), followed by consultation with parents (M = 4.32, SD = 0.73), intervention (M = 4.31, SD = 0.66), consultation with teachers (M = 4.29, SD = 1.36), and assessment (M = 3.80, SD = 0.56), respectively. However, Korean education students perceived that consultation with parents was the most important role/function of a school psychologist (M = 3.96, SD = 0.78), followed by consultation with teachers (M = 3.90, SD = 0.74) intervention (M = 3.89, SD = 0.73), counseling students (M = 3.88, SD = 0.72), and assessment (M = 3.65, SD = 0.59), respectively. The interaction between group (Thai vs. Korean) and role/function of school psychologist (assessment, counseling students, intervention, consultation with teachers, and consultation with parents) was statistically significant, F(4,1716) = 4.992, p < .01. Note that Thai education students rated the counseling students, intervention, consultation with teachers, and consultation with parents significantly higher (p < .01) than their Korean counterparts. However, there was no significant difference between the two groups on the assessment role (p > .01)

875

----------------------------------------------Insert Table 1 and Figure 1 about here ----------------------------------------------The results on who should perform the various roles and functions of a school psychologist when a school psychologist is not available were as shown in Table 2. It was found that Thai students expected their relatives and school personnel and other related people outside of the schools to fill in the vacuum of a school psychologist significantly (p < .01) more than their Korean counterparts did in almost all roles and functions. Significant differences did not occur (p > .05) between Thai and Korean students regarding the opinion on teachers as the personnel who should (a) serve assessment services in the administration of psychological scales, (b) perform counseling student activities in educational and mental health aspects, and (c) carry out consultation with other teachers to help students solve their educational problems. ----------------------------------------------Insert Table 2 about here -----------------------------------------------

Discussion Note in Table 1 that both Thai and Korean students rated the assessment role as the least important role of school psychologists compared with other services (i.e., counseling students, intervention, consultation with teachers, and consultation with students). That may be because Thai guidance teachers and Korean school counselors (whose roles and functions are helping students overcome psychological and social problems in schools) are not authorized to administer the psychological tests. Generally, students suspected of having learning difficulties are sent to a psychiatrist for diagnosis by psychological tests. For this reason, students may think that assessment is under the responsibilities of a psychiatrist, not a guidance teacher (in the case of Thailand) or a school counselor (in the case of South Korea). This could make them rate assessment as the least important role. Interestingly, similar finding was found in the previous study of Archwamety et al. (2009) that reported assessment as the least important function of school psychologists perceived by the American college students. The result of this study also indicated that Thai education students rated the counseling students, intervention, consultation with teachers, and consultation with parents significantly higher than their Korean counterparts did. That finding rejected the hypothesis posted earlier. That may be because nowadays Korean education students pay more attention to prepare themselves for their future career as a school teacher due to a high competition in job acquisition in the teaching profession in South Korea (Soe, 2004). Therefore, the perceived importance of roles and functions of a school psychologist of Korean education students was lower than their Thai counterparts. The findings mentioned earlier provide implications for education colleges in Thailand and South Korea. The education colleges in both Thailand and South Korea should more heavily emphasize the assessment function in the educational psychology courses required for the undergraduate students. Additionally, counseling, intervention, and consultation services should also be more stressed in those courses of the education colleges in South Korea. The results on who should perform the various roles and functions of a school psychologist when a school psychologist is not available were consistent with the hypothesis posted earlier, i.e. Thai students expected their relatives and school personnel and other related people outside of the schools to fill in the vacuum of a school psychologist more than their Korean counterparts did in all roles and functions. This should not be surprising considering the fact mentioned earlier that the current status of school psychology profession in Thailand is less developed than that in South Korea. That could reasonably let to more needs of the Thai education students for receiving school psychological services from the related personnel. However, interestingly, significant differences did not occur between Thai and Korean students regarding their perceptions on teachers as the personnel who should serve assessment services in administration of psychological scales, perform counseling student activities in educational and mental health aspects, as well as carry out consultation with teachers function to help students solve their educational problems. That was probably because in general teachers are the school personnel who mostly deal with students in the schools (Kwan, 1970; Koh, 2009). Therefore, the significant differences did not exist between Thai and Korean students on teachers as the ones who should take up those services. 876

Finally, as mentioned earlier that the school psychology profession in Thailand and South Korea is in the initial state, a comparison of the changed perceptions of Thai and Korean students on various roles and functions of school psychologists as the profession in both countries matures would be interesting for the future study.

References [1] Archwamety, T., McFarland, M. and Tangdhanakanond, K. (2009) ‘How Important are Roles/functions of School Psychologists and Who Should Substitute Them in Their Absence? Comparing Thai and American Students’ Perception’, School Psychology International, 30(3): 255-264. [2] Bahr, M. (1996) ‘Are School Psychologists Reform-Minded?’, Psychology in the Schools, 33(4): 295-307. [3] Bardon, J. I. (1982) ‘School Psychology’s Dilemma: A Proposal for Its Solution’, Professional Psychology, 13(1): 955-968. [4] Boonruangrutana, S. (1987) ‘School Psychology in Thailand’, Journal of School Psychology, 25(3): 277-280. [5] Cronbach, L. J., Gleser, G. C., Nanda, H. and Rajaratnam, N. (1982) The Dependability of Behavioral Measurements: Theory of Generalizability of Scores and Profiles, New York: John Wiley. [6] Chung, H. and Shin, H. (2007) ‘School Psychology in South Korea’, in S. R. Jimerson, T. D. Oakland and P. T. Farrell (Eds.) International School Psychology, pp.373-380. Thousand Oaks, CA: Sage Publications, Inc. [7] Farrell, P., Jimerson, S. R., Kalambouka, A. and Benoit, J. (2005) ‘Teachers’ Perceptions of School Psychologists in Different Countries’, School Psychology International, 26(5): 525-544. [8] Farrell, P. T., Jimerson, S. R. and Oakland, T. D. (2007) ‘School Psychology Internationally: A Synthesis of Findings’, in S. R. Jimerson, T. D. Oakland and P. T. Farrell. (Eds.) The Handbook of International School Psychology, pp.501-509. Thousand Oaks, CA: Sage Publications. [9] Ford, J. D. and Migles, M. (1979) ‘The Role of School Psychologist: Teachers’ Preferences as a Function of Personal and Professional Characteristics’, Journal of School Psychology, 17(4): 372-378. [10] Jimerson, S. R., Graydon, K., Curtis, M. J. and Staskal. R. (2007) ‘The International School Psychology Survey: Insights from School Psychologists Around the World’, in S. R. Jimerson, T. D. Oakland and P. T. Farrell (Eds.) International School Psychology, pp.481-500. Thousand Oaks, CA: Sage Publications, Inc. [11] Jimerson, S. R., Graydon, K., Farrell, P., Kikas, E., Hatzichristou,C., Boce, E., et al. (2004) ‘The International School Psychology Survey: Development and Data from Albania, Cyprus, Estonia, Greece and Northern England’, School Psychology International, 25(3): 259-286. [12] Jimerson, S. R., Graydon, K., Yuen, M., Lam, S., Thurm, J., Klueva, N., et al. (2006) ‘The International School Psychology Survey: Data from Australia, China, Germany, Italy and Russia’, School Psychology International, 27(1): 5-32. [13] Jimerson, S.R., Oakland, T.D. and Farrell, P.T. (Eds.). (2007) The Handbook of International School Psychology. Thousand Oaks, CA: Sage Publications, Inc. [14] Koh, H. S. (2009) A Study in the Effect of Homeroom Teacher’s Educational Perspective Upon the Relationship Between Teacher and Students. Unpublished Master Thesis, Korea National University of Education, Seoul, South Korea. [15] Kwan, C. J. (1970) A Study of Effective Systematization and Management of Secondary School Teachers’ Duties and Responsibilities. Unpublished Master Thesis, Ewha Women’s University, Seoul, South Korea. [16] Meacham, M. L. and Peckham, P. D. (1978) ‘School Psychologist at Three-quarters Century: Congruence Between Training, Practice, Preferred Role and Competence’, Journal of School Psychology, 16(3): 195-205. [17] Monroe, V. (1979) ‘Roles and Status of Spsychology’, in G. D. Phye and D. J. Reschly (Eds.) School Psychology: Perspectives and Issue, pp.25-47. New York, NY: Academic Press. [18] Oakland, T. D. (2003) ‘International School Psychology: Psychology’s Worldwide Portal to Children and Youth’, American Psychologist, 58(11): 985-992. [19] Oakland, T. D. and Cunningham, J. L. (1992). ‘A Survey of School Psychology in Developed and Developing Countries’, School Psychology International, 13(2): 99-129. [20] Oakland, T, D. and Jimerson, S. R. (2007) ‘School Psychology Internationally: A Retrospective View and Influential Conditions’, in S. R. Jimerson, T. D. Oakland and P. T. Farrell. (Eds.) The 877

Handbook of International School Psychology, pp.453 - 462. Thousand Oaks, CA: Sage Publications. [21] Shin, H., Kim, I. and Lyu, J. (2004) ‘Current Status of School Counseling and the Necessity of School Psychological Services Perceived by Secondary School Teachers’, Korean Journal of School Psychology, 1(1): 53-77. [22] Soe, J. W. (2004) A Study on the Plan for Improving the Training Program and Employment of the Secondary School Teachers. Unpublished Master Thesis, University of Ulsan, Ulsan, South Korea. [23] Tangdhanakanond, K. and Archwamety, T. (2007) ‘Role and Functions of School Psychologists as Perceived by Undergraduate Students of the Faculty of Education, Chulalongkorn University’, Journal of Research Methodology, 20(3): 293- 310. [24] Tangdhanakanond, K. (2009) ‘Roles and Functions of School Psychologists as Perceived by Thai High School Students’, International Journal of Psychology: A biopsychosocial approach, 2(3): 71-90. [25] Violato, C., Rattan, G., Gornall, M. and Perks, B. (1981) ‘The Role of Canadian School Psychologists: Perceptions of a Sample from the General Public’, Journal of School Psychology, 19(3): 222-225. [26] Watkins, M. W., Crosby, E. G. and Pearson, J. L. (2001) ‘Role of the School Psychologist: Perceptions of School Staff. School Psychology International’, 22(1): 64-73.

Acknowledgement This work is supported by the Korea Foundation for Advanced Studies’ International Scholar Exchange Fellowship for the academic year of 2009-2010. Address to which requests for offprints may be addressed: Please send all paper correspondences to: Dr. Dong Hun Lee Department of Education Pusan National University Busan, South Korea 609-735 Please direct all e-mail messages to: dhlawrence05@gmail.com Table 1 Mean Importance Ratings (1=low, 5=high) of Various Roles/Functions of a School Psychologist by Thai and American Education Students and Standard Deviations Role/Function Thai (n = 193) Korean (n = 238) F M SD M SD 1. Assessment 3.80 0.56 3.65 0.59 2.90 1.1 Test 3.75 0.64 3.57 0.71 3.72 1.2 Scale 3.86 0.69 3.72 0.77 2.19 2. Counseling students 4.36 0.67 3.88 0.72 26.98** 2.1 Behavioral problem 4.33 0.78 3.92 0.83 19.65** 2.2 Educational problem 4.32 0.75 3.76 0.84 36.37** 2.3 Mental health problem 4.45 0.70 3.97 0.83 26.19** 3. Intervention 4.31 0.66 3.89 0.73 20.59** 3.1 Behavioral problem 4.29 0.70 3.88 0.86 19.21** 3.2 Educational problem 4.29 0.69 3.75 0.91 34.13** 3.3 Mental health problem 4.35 0.73 4.04 0.83 11.48** 4. Consultation with teachers 4.29 1.36 3.90 0.74 17.34** 4.1 Behavioral problem 4.20 0.68 3.99 0.82 5.10* 4.2 Educational problem 4.42 3.58 3.74 0.90 53.05** 4.3 Mental health problem 4.25 0.69 3.98 0.84 8.71** 5. Consultation with parents 4.32 0.73 3.96 0.78 14.94** 5.1 Behavioral problem 4.36 0.73 4.01 0.86 14.23** 5.2 Educational problem 4.31 0.76 3.85 0.92 23.69** 5.3 Mental health problem 4.29 0.87 4.03 0.87 8.15** * p< .05, ** p< .01 878

Table 2 Frequency Count and Percentage of Thai and Korean College Students on the Perceptions of Who Should Perform the Various Roles and Functions of a School Psychologist Roles/functions Thai (n = 193) Korean (n = 238) Person Freq % Freq % 1. Assessment 1.1 Test school principal teacher school counselor 1.2 Scale school principal teacher school counselor 2. Counseling students 2.1 Behavior problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister 2.2 Educational problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister 2.3 Mental health problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister

χ2

48 157 137

24.87 81.35 70.98

7 163 83

2.94 68.49 34.87

46.04** 9.22** 55.61**

27 101 156

13.99 52.33 80.83

2 131 117

0.84 55.04 49.16

29.36** .32 46.03**

37 95 162 144 172 108 99 43

19.17 49.22 83.94 76.61 89.12 55.96 51.30 22.98

3 12 173 152 137 33 46 10

1.26 5.04 72.69 63.87 57.56 13.87 19.33 4.20

40.61** 111.50** 7.79** 5.72* 52.30** 85.79** 48.79** 32.30**

39 37 176 118

20.21 19.17 91.19 61.14

2 10 210 117

0.84 4.20 88.24 49.16

46.44** 24.58** 1.36 6.17**

157 86 92 17

81.35 44.56 47.67 8.81

88 15 24 1

36.97 6.30 10.08 0.42

85.54** 86.94** 76.54** 18.74**

23 31 94 131 149 76 64 41

11.92 16.06 48.70 67.88 77.20 39.38 33.16 21.24

3 6 123 136 127 24 39 16

1.26 2.52 51.68 57.14 53.36 10.08 16.39 6.72

21.35** 24.90** .378 5.21* 26.303** 51.33** 16.49** 19.58**

879

Table 2 (continued) Roles/functions Person 3. Intervention 3.1 Behavioral problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister 3.2 Educational problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister 3.3 Mental health problem school principal assistant principal teacher school counselor parents older sister or brother other students monk, priest, or minister 4. Consultation with teachers 4.1 Behavioral problem school principal teacher school counselor university educational professor official from ministry of education 4.2 Educational problem school principal teacher school counselor university educational professor official from ministry of education 4.3 Mental health problem school principal teacher school counselor university educational professor official from ministry of education * p< .05, ** p< .01

Thai Freq

(n = 193) %

Korean (n = 238) Freq %

χ2

77 119 153 125 134 50 58 40

39.90 61.66 79.27 64.77 69.43 25.91 30.05 20.73

6 28 160 132 119 23 33 5

2.52 11.76 67.23 55.46 50.00 9.66 13.87 2.10

95.75** 118.00** 7.80** 3.83* 16.60** 19.99** 16.76** 39.54**

70 51 179 129 134 61 69 19

36.27 26.42 92.75 66.84 69.43 31.61 35.75 9.84

3 7 205 109 91 12 22 2

1.26 2.94 86.13 45.80 38.24 5.04 9.24 0.84

92.85** 50.47** 4.80* 20.90** 41.57** 53.46** 44.96** 18.64**

55 47 132 154 142 49 46 30

28.50 24.35 68.39 79.79 73.58 25.39 23.83 15.54

4 10 137 129 130 28 38 13

1.68 4.20 57.56 54.20 54.62 11.76 15.97 5.46

64.87** 37.71** 5.33* 30.96** 16.44** 13.48** 4.20* 12.06**

105 101 160 116

54.40 52.33 82.90 60.10

18 69 156 47

7.56 28.99 65.55 19.75

114.70** 24.31** 16.41** 73.81**

97

50.26

60

25.21

28.88**

90 95 139 119

46.63 49.22 72.02 61.66

15 96 115 68

6.30 40.34 48.32 28.57

94.07** 3.41 24.74** 47.50**

97

50.26

71

29.83

18.70**

80 85 151 95

41.45 44.04 78.24 49.22

7 54 157 30

2.94 22.69 65.97 12.61

98.10** 22.24** 8.41** 69.40**

81

41.97

32

13.44

44.82**

880

Table 2 (continued) Roles/functions Person 5. Consultation with parents 5.1 Behavioral problem school principal assistant principal teacher school counselor 5.2 Educational problem school principal assistant principal teacher school counselor 5.3 Mental health problem school principal assistant principal teacher school counselor * p< .05, ** p< .01

Thai Freq

(n = 193) %

Korean (n = 238) Freq %

χ2

63 131 168 141

32.64 67.88 87.05 73.06

10 19 175 152

4.20 7.98 73.53 63.87

61.72** 168.50** 11.98** 4.14*

59 64 182 131

30.57 33.16 94.30 67.88

8 10 188 127

3.36 4.20 78.99 53.36

60.10** 62.85** 20.56** 9.34**

65 81 162 152

33.68 41.97 83.94 78.76

5 5 152 139

2.10 2.10 63.87 58.40

78.12** 106.10** 21.71** 20.13**

Figure Caption Figure 1. Mean importance ratings of the various roles and functions of a school psychologist by Thai and Korean education students. The interaction between group (Thai vs. Korean) and role/function of school psychologist (assessment, counseling students, intervention, consultation with teachers, and consultation with parents) was statistically significant, p < .01.

881

Education II Pullman Bangkok King Power, 2F 2013/1/27 Sunday 10:00-12:00 I260 Education for the 21st Century - the Singapore Context Marc Jonet︱Breyer State University I212 Group Investigation in College English Program at a Chinese University:A Case Study Hao Liu︱Xian Jiaotong University I255 Digital images scaffolding the construction of disciplinary concepts Natasa Lackovic︱University of Nottingham Charles Crook︱University of Nottingham I194 Islamic schools in Seljuks period Masoud Farshidnia︱Islamic Azad University Sosan Rahmanian︱Islamic Azad University Sina Farshidnia︱Islamic Azad University I179 The case of study of Khalaji language in Iran Marziyeh Davari︱Islamic Azad University

882

I260 Education for the 21st Century - The Singapore context MARC JONET BREYER STATE UNIVERSITY, SINGAPORE Email: mrcjonet@gmail.com

Abstract This paper focuses on the dichotomy between the Singapore Ministry of Education’s stated desired outcome of education (DOE) and the realities faced by students and faculty alike. Since the British East India Company (EIC) established a trading post in Singapore in 1819 and despite the many reforms orchestrated by the Ministry of Education, which led Singapore’s education system to be described as world-leading, students have not received an education that allows them to develop the skills needed to survive in the newly defined economy, as students lack skills in the following areas : 1. Critical thinking and problem solving; 2. Collaboration across networks and leading by influence; 3. Agility and adaptability; 4. Initiative and entrepreneurialism; 5. Effective oral and written communication; 6. Accessing and analyzing information; 7. Curiosity and imagination. 8. In 1823, Sir Stamford Raffles established the Singapore Institution, which sought “to educate the sons of the higher order of natives and others, to afford the means of instruction in the native languages to such of the Company's servants and others they may desire it, to collect the scattered literature and tradition of the country...” (Raffles, 1819). This establishment built the foundation of the British educational policy in Singapore. Gopinathan (1997) characterized Singapore’s education as, “benign neglect, ad hoc policy making and indifference to consequences.” In fact, the main objective of education in the early nineteen century was to build a nation, and the education system was not specifically focused on people’s strength. Upon independence in 1965, developing workers who could operate machinery was at the core of the education system, which is why compulsory technical education was introduced in the 1960s. Singapore also needed to build its own infrastructures and had to modernize its economy. It had no natural resources and a high unemployment rate, and the diverse ethnic mix of Chinese, Malay, and Indians was threatened by communists. Following the Japanese occupation and the racial riots that took place in the early years of Singapore’s independence, it became clear to leaders that in order to survive, building a unified nation with a shared national identity was essential. The People’s Action Party (PAP), in power since 1959, understood very early how it could make use of education to serve the party’s agenda, which was to build a unified national system. Economically, the goal was to “provide a stock of basic education, skills and attitudes required for industrialization” (Sharpe & Gopinathan, 2002). The education system was centralized and brought under government control, moving an important ideological provision into government hands, in the name of patriotism (Kho, 2004). Since then, and despite the many reforms orchestrated by the Ministry of Education, many have criticized the system, stating that it is too rigid and elitist. Parents and educators often expressed concerns that there was little focus on creative thinking; the primary goal of the educational system was to score well on tests and be ranked at the top of international competitions. There have also been complaints about educational streaming and balloting, starting as early as primary school. Children who had not been able to attend the school of their choice could go to another school with remaining vacancies, but registration occurred on a first-come-first-served basis. Segregation at either 883

the best, normal, or foundation classes is the direct results of such a policy, and the foundation class was dedicated to students who were considered ungifted. The Convention on the Rights of Persons with Disabilities and its Optional Protocol was adopted on December 13, 2006 at the United Nations Headquarters in New York, and it was opened for signature on March 30, 2007. Unfortunately, out of the 10 country members of the Association of Southeast Asian Nations (ASEAN), Singapore and Myanmar decided not to sign the convention. The consequence of such decision is that “any child who is unable to attend any national primary school due to any physical or intellectual disability is excluded” (Singapore Ministry of Education, Compulsory Education Act, 2003). This means that those students are exempted from compulsory education, and there are no public schools for such children. The system itself, despite claiming to be inspired by the progressivism philosophical perspective–education should focus on the whole child–is, in fact, much more essentialist in its approach–common core knowledge must be transmitted to students in a systematic, disciplined way–and seems to be failing increasingly to prepare students for the 21 st Century and equip them with the seven necessary survival skills, as defined by business leaders.

Chapter 1 Introduction As the Greek philosopher, Heraclitus (535-475 BCE) declared, “There is nothing permanent except change,” and education, unfortunately, does not escape this trend. Education principles seem to head in one direction, but as soon as they do, there is a new wave of guidelines imposed on educators that tell them what they must do. Education, and many other broad concepts, has as many meanings as it has different contexts, and there is no real right or wrong definition of what education encompasses. The definition of education argument has been going on for ages. For Socrates, education was literally leading out, from the Latin e-ducere, what was within the pupils, but others felt it was necessary to give students the necessary tools to get a position, a job, in the city. For Plato, the purpose of education was “to develop in body and soul all the beauty and perfection of which they are capable” (Palmer, 2001). Since Plato, hundreds of individuals, like Maria Montessori, John I. Goodlad, Ralph Winfred Tyler, have had a tremendous influence on education, providing new ideas and new paradigms on what education should be. For most parents, though, education’s purpose is to develop children and give them the proper skills and tools to find a job and earn a living. At the end of the day, what seems to be the biggest issue in Singapore’s education is that it has not been the educators who have led the country into a bubble test, computer-scored obsession; it has been the political system. Education and schooling are parts of our society, and those in power make decisions that directly impact students and teachers daily. In order to assess if an education system is performing well, our Ministry of education recommended a series of characteristics, skills, and knowledge, known as desired outcomes of education (DOE), that each student should acquire upon the completion of formal education. In Singapore, a student going through the education system can expect to receive an education based on the following DOE:      

He has a good sense of self-awareness, a sound moral compass, and the necessary skills and knowledge to take on challenges of the future. He is responsible for his family, community and nation. He appreciates the beauty of the world around him, possesses a healthy mind and body, and has a zest for life. In sum, he is a confident person who has a strong sense of right and wrong, is adaptable and resilient. He knows himself, is discerning in judgment, thinks independently and critically, and communicates effectively. He is a self-directed learner who takes responsibility for his own learning, who questions, reflects and perseveres in the pursuit of learning. He is an active contributor who is able to work effectively in teams, exercises initiative, and takes calculated risks. He is innovative and strives for excellence; and, is a concerned citizen who is rooted to Singapore. 884



He has a strong civic consciousness, is informed, and takes an active role in bettering the lives of others around him.

In theory, these values are in line with the political movement called progressivism–referred to as progressive education because its ideas and practices intend to transform schools into effective agencies of a democratic society. In short, this implies that all citizens should actively participate in decisions that will affect all aspects of their lives, be it at the social, political, or economic level. In order to achieve this noble goal, two essential conditions need to be present: the respect of each individual and those individuals’ unique characteristics, such as cultural identity, interests, and abilities, and the development of a system that will engage each citizen in the development of his community while trying to achieve a common purpose. Unfortunately, this cannot be observed on a daily basis, resulting in the questioning of the education system in Singapore and whether it prepares students for the new economy.

Chapter 2 Review of literature 2.1 Philosophy of Education As previously illustrated, the desired outcome of education should be in line with a child-centered or learner-centered learning approach. However, if we take a close look at what is taking place in our classrooms, at the micro level, we notice what John Goodlad described in his book, A Place Called School, as the five basic patterns in classroom culture: 1.

2. 3.

4.

5.

The focus is not on the individual. The class is treated as a group, and the educator addresses it as a whole. We understand that this is probably the consequence of a need to keep a tight control of the group, but unfortunately, it leads to socialization; Such tight control does not promote natural burst of joy, enthusiasm, or anger, and the general atmosphere is rather neutral; The majority of the activities taking place in classes are comprised of listening to the educator, writing, and eventually, answering questions as well as taking tests at regular intervals. Subjects like art and physical education, where there is a little hands-on activity, are the exception; Since the main objective is to score well on final exams or in international competitions, the type of teaching becomes more and more rigid as the students progress through their schooling; and Very little, if anything, is done to encourage student’s natural curiosity, to encourage them to think outside the box and explore the world around them. At best, the basic memorization of facts is at the core of most activities.

The results of such a practice is clearly in opposition to the initial intent stated by the educational policy makers as it creates a system that produces people who can ace examinations; unfortunately, it does not encourage the development of the skills needed to make rigorous decisions on fundamental aspects of life. For Maria Montessori, the role of an education system is:    

Awaken the child's spirit and imagination; Encourage his normal desire for independence and high self-esteem; Help him develop the kindness, courtesy, and self-discipline that will allow him to become a full member of society; Help the child lean how to observe, question, and explore ideas independently.

These roles are similar to Piaget’s idea of constructivism or social constructivism, where he proposed, “children construct their own beliefs and understandings from their experiences.” Unfortunately, in Singapore, students have been spoon-fed information all their life, so when the students must think outside the box or when they are given the opportunity to express feelings and emotions, they are simply incapable of doing so. 885

At best, these students express feelings and emotions in a very bipolar fashion: I like; I do not like. It is as if we want students to build their knowledge, but they need the opportunity to make discoveries for themselves and practice their skills in real situations, which also includes learning through failures and making mistakes, values that are diametrically opposed to the core values of success and performance at the core of Singapore society. Jerome S. Bruner (1915) said, “Education is not simply a technical business of well-managed information processing, not even simply a matter of applying ‘learning theories’ to the classroom or using the results of subject-centered ‘achievement testing.’ It is a complex pursuit of fitting a culture to the needs of its members and their ways of knowing to the needs of the culture” (Jerome Bruner, ). However, Richard Stanley Peters (1919) claims that for education, distinct from other things like training or indoctrination, to take place, three criteria must be met. The criteria are that:  Education implies the transmission of what is worthwhile to those who become committed to it;  Education must involve knowledge and understanding and some kind of cognitive perspective that is not inert;  Education at least rules out some procedures of transmission, on the grounds that they lack willingness and voluntarism (Peters, 1966, p. 45, 119). Let’s have a look at those statements one by one. 2.1.1 Education implies the transmission of what is worthwhile to those who become committed to it. Depending on the sociopolitical background of a country, what is deemed worthwhile might have been determined by those in power in order to maintain better control over the population and the development of the nation. For instance, in Singapore, one of the most conservative South-East Asian countries, social values and education curriculum are highly dictated by the political system. As time progresses, radical shifts in the needs of the nation versus the needs of individuals may occur. Educational models from the past may no longer fit the needs of the present. If the education system is analyzed, a system under an extreme amount of control is easily visible. In such context, the system does not respect a Socratic view of education, which seeks to bring out what students had within. Instead, the current system tries to focus on what is worthwhile, without consideration for the individual or his strengths, aspirations, and motivations. It is clear that what is worthwhile may vary from year to year. If there is a need for doctors today, for instance, by the time they complete their education, there might be a plethora of doctors, and they would have wasted their time and might become unemployable. What is even more obvious and regrettable is that the system seems to have forgotten to ask the opinions of one group of major stakeholders: the educators themselves. Rarely do educators have the opportunity to voice their concerns and observations, and when they were given this opportunity, educators’ opinions are rarely well received. 2.1.2 Education must involve knowledge and understanding and some kind of cognitive perspective, which is not inert. Herein lies the concept of nature versus nurture. The cognitive perspective is by nature not inert, but at the same time, researchers–since Piaget’s research–agree that cognitive development depends on physiological maturation. The brain undergoes a series of genetically controlled changes during infancy, childhood, and adolescence that allow increasingly sophisticated thinking processes; hence, genetic make-up also has a part to play. Education is not all about nurturing and developing an individual to fulfill his full potential. Unfortunately, in today’s world, education is also seen as a business, and students are perceived as customers. Education is a service, lecturers are service providers and textbooks are like apparel. Institutions are more interested in the number of students that apply for their courses, making their institution number one in the country. Knowledge and understanding are no longer the main focus of education. The quantity of students receiving a passing grade is more valuable than the quality of education provided, and students’ zones of proximal development are rarely challenged. Lecturers are also no longer allowed to fail a student, except in extreme cases, and grades are shifted according to bell curves. Educators are constantly reminded to do their best to help students articulate their transition to universities by being more generous (give better grades) to the top performers as it will have an impact on their GPA. 886

Polytechnics (Tertiary Institutions) have also embraced the International Organization for Standardization (ISO) with all its consequences. Unfortunately, such quality control system only looks at processes rather than results, and at best, it provides the user with a series of tools that assess conformance, not performance. Educators spend hours formatting documents and filling in templates to ensure that the establishment stays ISO certified. But there hasn't been any correlative study that proves that ISO certification increases the number of students at a school or quality of students registering in these programs. Knowledge and understanding are, therefore, not assessed for the benefit of the person receiving the education. 2.1.3 Education rules out some procedures of transmission, on the grounds that they lack willingness and voluntarism. The methods of transmission used in education have nothing to do with any form of willingness and voluntarism. Students are at the mercy of an educator, and since he is the almighty in the eyes of most students, he is an authority to be respected. However, there is not much respect for teachers in classrooms any longer. From my observations, in some classrooms, teachers, lecturers, and professors promote the idea that they represent the knowledge. I do not see any willingness and voluntarism in that case. In general, students are the one who have to fit in and conform to the education system; the education system does not have to serve the needs of its students. Plato suggested that if children are allowed to learn about things they are genuinely interested in, a natural fit will be observed, and those children can be pushed in that direction. This is a reasonable claim. Plato also claimed that by enforcing learning, students are not actually being taught as the forced information will not stay in there mind, and they will miss the opportunity to learn about something they are generally interested in. Herein lies the dilemma and challenge of how to help students enjoy learning subjects and material that at first glance they felt no interest in. 2.2 From Education to the Business of Education If Plato had to be transported into today’s society, he would surely disagree with our pedagogic methods. In the U.S.A., for instance, funding of high school is in general based on test results. In better schools, more students pass tests with higher grades, which means they receive more funding. The result is a transformation of the schools into test-oriented entities. Students who are not interested in simply memorizing facts might slowly lose interest and become disconnected from what they have learned and even from school in general. These students might lose opportunities to further their education at a higher level, and they may be dismissed from the education system entirely. At the polytechnic level in Singapore, a similar phenomenon is observed. At these institutions, schools compete with each other to attract larger numbers of students, and these institutions create and offer new diplomas every year, but there is little concern for students’ support and welfare. In such environments, students rarely develop their thinking skills since they have been trained to memorize rather than apply concepts. These students lack natural curiosity, and if they find importance to some subjects, assessments, and so on, it is mostly because it would benefit them from an academic point of view; they are not interested in gaining the knowledge for personal growth. The result of such an educational philosophy is that more and more students who are only interested in going through the system are enrolled. These students are not necessarily slow learners, but these students tend to lack maturity–at both an intellectual and emotional level–and most of them simply wait to receive orders from their teachers to start thinking, so to speak. If society genuinely wants students entering polytechnics to be in line with the prescribed DOE, it is at primary school that the issues should be addressed. When sixteen or seventeen-year-old students enter their polytechnic life, cognitive patterns and methods for assessing issues have already been formatted in such way that it is a daunting challenge for students to shift their thinking patterns. If those issues are to be addressed, a review of philosophers or thinkers on education, like Montessori, Bereiter, Gardner, or Goodlad, who made several suggestions for improving schools in his book A 887

Place Called School (1984), should be conducted. For schools to be more successful, Goodlad provided a vision that encompasses the following principles: 13. 14. 15.

16. 17.

Promote in all youth the dispositions, skills, and knowledge that will allow them to fully participate in the social and political development of the nation; Ensure that all students have the same opportunity to learn, to learn how to learn and what they need to learn, regardless of their learning abilities; Education is not just a job but a responsibility; hence, it is vital to ensure that all educators are equipped with this intrinsic vocation. All students should understand the need to build a relationship and create a conducive environment to promote learning; Through personal experiences taking place at school, prepare students for democracy, allowing them to understand the rules and their rights and responsibilities as a citizen; and Classrooms should represent a microcosmic society where educators must be empowered to stand up for what they believe in. This is what Goodlad refers as the educator serving as a steward at school.

Going a step further, in his book, The Twelve Major Goals of American Schools (Goodlad, 1979), Dr Goodlad recommends twelve goals that he felt “are important to allow the students, parents and teachers to have a greater part in developing the school’s philosophy and working toward understanding the effect of social change in the schools.” Those goals are: A. Academic goals;  Mastery of basic skills or fundamental process because with technology at the core of all activities, it is vital for an individual to learn those basic skills in order to participate actively in the development of society; and  Intellectual development because with the emergence of global trends and the increasing level of sophistication and complexity of societies, individual intellectual development is vital. B. Vocational goals;  Career and vocational education because with an average of 40 hours spent at work each week, an individual will assess his level of satisfaction based mostly on how satisfied he is with his work. In order to make sound career choices, it is vital for individuals to assess their personal aptitudes and interests in regard to their career possibilities. C. Social, civic and cultural goals;  Enculturation because the present must be approached by understanding the past, which at the same time, gives a sense of identity and direction for every student;  Interpersonal relations because each child should learn how to appreciate his own ethnic group’s values as well as the values of other groups;  Autonomy because in order to survive in a fast–paced, changing world, schools should help children develop their capacity to assume the responsibility for their own needs;  Citizenship because the process of democratization and the development of a democracy require the constant involvement of citizens of all creeds at both the social and political levels;  Self-concept because this will serve as a feedback mechanism for personal goals and desires; it is also known as self-construction or self-perspective; and  Moral and ethical character because Goodlad refers to the role that schools need to play in nurturing the development of the capacity of the evaluation of right or wrong behavior as well as moral conduct and integrity. D. Personal goals.  Emotional and physical well-being because emotional stability and physical fitness are necessary for achieving the other goals;  Creativity and aesthetic perception because Goodlad refers to the ability to create meaning while appreciating the creations of others as an essential skill in self-realization and a skill that the society would benefit from; and  Self-realization because by making an effort to develop themselves, individuals will be more equipped to participate in the development of a better society. As Goodlad pointed out, too often the importance of learning is not at the core of our education system. Parents, with the possible exception of Japan where parents perceive the activity of going to school as similar to going to work, often express their concerns of a learner-centered school system, stating that in such a system, the teacher does not assume his responsibility and passes that responsibility on to the 888

student not realizing the value of self-discovery. If we want our students to be sensitive to the world around them, it is vital to cultivate and develop their sensibilities at a high level. They must be sensitive to one another, so they will have successful relationships with others. This can only take place, if educators are willing to play their part and actively participate in school rejuvenation, so to speak. For Dewey (1938), "…Experience is primarily an active-passive affair; it is not primarily cognitive…the pervasive emphasis on cognition and its separation from affect poses a threat to our society in that our educational institutions may produce cold, detached individuals, uncommitted to humanitarian goals. Certainly, a modern society cannot function without ever increasing orders of cognitive knowledge. Yet knowledge per se does not necessarily lead to desirable behavior…unless knowledge is related to an affective state in the learner, the likelihood that it will influence behavior is limited” (Dewey, 1938). From Dewey’s perspective, education has two purposes: societal and individual. Education should focus on the development of the individual as well as the development of the society. Dewey (1938) maintained that, “education should be progressive and experiential.” Dewey’s ideas can be summarized by saying that education is not preparation for life; education is life itself; He said, “Give the pupils something to do, not something to learn and if the doing is of such a nature as to demand thinking; learning naturally results.” The concept of education itself has been revisited many times under the influence of Greek philosophers and their followers. The students are now, or at least should be, at the center of the dialogue as they are assigned individual tasks, keeping in mind their individuality. 2.3 Education and Politics The question that remains is why this is not happening in Singapore. I believe that the structure of the political apparatus is where the answer lies. Singapore has an autocratic central government that has tight control over all aspects of life, be it economical, political, or social. This political situation minimizes individual rights while glorifying the nation. Lee Kuan Yew, the first Prime Minister of the Republic of Singapore who governed the country for three decades, does not even refute this statement. “I am often accused of interfering in the private lives of citizens. Yes, if I did not, had I not done that, we wouldn't be here today. And I say without the slightest remorse, that we wouldn't be here, we would not have made economic progress, if we had not intervened on very personal matters–who your neighbor is, how you live, the noise you make, how you spit, or what language you use. We decide what is right. Never mind what the people think” (Lee Kuan Yew, 1987). The main criticisms of Singapore’s political system are the practically nonexistent of balancing power between the opposition and the dominant party (PAP), the lack of freedom of press, and lack of human rights as Singapore still applies the death penalty. Despite these critiques, the economic success of Singapore did not take place by accident. Strategic planning and strong political will were the key factors contributing to the development of Singapore’s fast-growing economy, a modern city with high-tech infrastructures, a safe environment, and an organized country that is well maintained. However, none of this took place through public opinion. Although there have been several attempts to engage Singaporeans in discussions of issues about making Singapore a better place, more specifically through a campaign called Singapore 21 launched in August 1997 by Prime Minister Goh Chok Tong, political leaders have always urged caution because there is a limit to how much they are willing to be challenged. “In Singapore, the notion of citizens actively engaged in conflicts with the establishment is likely to be unacceptable” (Han, 2000, p. 69). Similarly, there was an absence of the critical thinking skills and procedural values that are generally considered crucial to active citizenship in the school curriculum (Han, 1997). Once again, it is democracy under tight control, and Lee Kuan Yew himself made a statement about democracy and voting.

889

“They say people can think for themselves? Do you honestly believe that the chap who can’t pass primary six knows the consequence of his choice when he answers a question viscerally, on language, culture and religion? But we knew the consequences. We would starve, we would have race riots. We would disintegrate.…With few exceptions, democracy has not brought good government to new developing countries…What Asians value may not necessarily be what Americans or Europeans value. Westerners value the freedoms and liberties of the individual. As an Asian of Chinese cultural background, my values are for a government which is honest, effective and efficient” (Lee Kuan Yew, 1997). One might find this situation quite astounding, but as the socialization processes took place simultaneously, be it from the primary socialization level at home (where norms and values are received); the secondary level, which is what takes place outside the home (where behavior specifics are learned); or formal and information socialization (the army or by copying others behavior), most Singaporeans simply learned to follow their leaders with few complaints and little resistance to what was imposed on them. No one is really starving in Singapore, despite a galloping inflation (housing rental for instance has raised by 100% in the last four years). Singapore is a stable country, if we compare it to its neighbors. The ruling party has significantly contributed to the growth of Singapore. As long as Singaporeans do not complain, the ruling party will continue to map their future, but this, unfortunately, results in creating an apathetic nation. If you take a taxi, you will hear the driver complaining about his living conditions and the fact that at 60 years old, he can’t retire as the cost of living has become a burden, and there is no social net. Complaints on social networks are prevalent, but since there is a lack of official channels that represent the people, such as unions, and the government has kept the nation in a state of fear for more than 40 years, no one dares to really say anything. At best, they express their dissatisfaction by leaving the country with the hope of a better future elsewhere. Also, with over 25% of its population above the age of 65, Singapore has one of the fastest aging populations in Asia. Despite the government’s measures to support family growth, the total fertility rate dropped from 1.6 in 2000 to 1.23 in 2010, far below from the 2.1 needed for the population to replace itself. The population growth rate also plunged from 3.54% in 2000 to 0.82% in 2011 (Index Mundi.com, 2011 ). There is hope, however, and the results of the last general election held on May 7 th can be used as an indication. The series of sudden protests following the last election also had an impact on education as we have seen an increasing number of Parliament sessions talking about issues regarding the education system in Singapore in the last few months. In a recent Parliament session, Dr. Intan Azura Mokhtar asked the Minister for Education if elitism still existed in schools, especially in better-performing schools or those having a majority of well-to-do students. Mr. Lawrence Wong (Minister of State, Ministry of Defense, and Ministry of Education) replied: “We recognize that every child is different and that learning needs and abilities are different. And that is why we have customized progression pathways that are different. Not just one single track, but multiple pathways to cater to the different abilities and needs of students. No single pathway is superior to another. That should not be the mindset. The diverse pathways are meant to cater to different learning needs and each one customized for people with different needs. Somebody may be academically slower and they may need a longer time to study and to progress in their pathway, but they may be a slow learner initially and a faster learner later on. So, what we also want to do is to have many bridges and ladders across the different pathways, so that as you progress along one pathway and as you do well subsequently, you can move on to a different pathway–adapted, again, and customized to the needs of that individual” (Parliament No 12, 2012). During another, more recent session, Mr. Yee Jenn Jong, a non-constituency member from the opposition party (The Workers' Party), asked the Minister for Education what progress had been made on the holistic assessment approach for education at the lower primary levels that places less emphasis on semestral examinations, as recommended in the 2009 Report of the Primary Education Review and Implementation (PERI) Committee. 890

The Senior Parliamentary Secretary to the Minister for Education (Ms. Sim Ann) stated: “Sir, one of the recommendations of the Primary Education Review and Implementation (PERI) Committee was to introduce more holistic assessment to support learning. Holistic Assessment comprises the use of a variety of age-appropriate assessment modes. The emphasis is on skills development and to provide constructive feedback for meaningful learning” (Parliament No 12, 2012). Changes do not to occur over night; however, it is clear that there are at least some debates taking place at the Parliament level, and since a summary of those debates is broadcast every time they take place, and with an opposition stronger than ever, changes might finally be instituted. 2.4 The Strawberry Generation On April 29, 2011, I had the opportunity to attend a seminar series entitled “Transforming Education for the 21st Century,” organized by Educare Singapore, which is a cooperative of the Singapore Teachers’ Union (STU). One of the seminars that caught my attention was “Leading, Learning, and Teaching in the 21st Century” presented by Tony Wagner, Ed.D., Innovation Education Fellow at the Technology and Entrepreneurship Center at Harvard. I could not have been more thrilled to see someone who spoke at length to the CEOs of major companies, asking them about the qualities they were looking for in future employees, and Dr. Wagner talked at length about the gap between what is taking place in our schools and global achievement. He was finally in Singapore to share his valuable insight. What Dr. Wagner refers to as the global achievement gap is the gap between what we are teaching and testing versus the skills the students will need for careers, college, and citizenship in the 21st Century. During the short two-hour session, Dr. Wagner also talked about what the seven survival skills, which were the core of his talk. These skills are as follows: 1. Critical thinking and problem solving; Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication that are used as a guide to belief and action (Scriven & Paul, 1987) 2. Collaboration across networks and leading by influence; “The biggest problem we have in the company as a whole is finding people capable of exerting leadership across the board…Our mantra is that you lead by influence, rather than authority” (Chandler,). In short, it is all about collaboration, instead of commanding and controlling, as organizations are becoming more and more global. 3. Agility and adaptability; This particular concept refers to how fast both organizations and people working in those organizations can adapt to the constantly changing environment. Adaptability is defined as the capability of reshuffling both the organization and the people working for it, in order to meet a different series of requests. 4. Initiative and entrepreneurship; The sense of initiative and entrepreneurship refers to an individual’s ability to turn ideas into action. It is all about being creative, innovative, and being a risk-taker as well as the ability to plan and manage projects in order to achieve objectives. 5. Effective oral and written communication; “The biggest skill people are missing is the ability to communicate: both written and oral presentations. It’s a huge problem for us” (Neal,). 6. Accessing and analyzing information; We can’t talk about information literacy without first considering the paradigm shift resulting from the role of technology in the delivery of and access to information. Technology provides us with the ability to acquire a higher volume of information faster. Learning has shifted from linear to hypermedia as students move back and forth between different sources of information in a non-sequential way. The question that remains is how to process, analyze, and make use of that information effectively. 891

7. Curiosity and imagination. Curiosity is an essential element of critical thinking. Michael Jung, senior consultant at McKinsey & Company stated, “The most successful worker will not merely adapt to working conditions that are given to him but be able to adapt in a way that creates a position that fits his own profile.” At first glance, it all makes perfect sense, and those so-called survival skills might have been at the core of the education system for a while, and they were probably implemented with some success. What has changed in the last decade, however, is the composition of students entering our institutions. Some called them the Net generation (Net Gen), others call them Generation Y, Generation Z, Millennial Generation, and Echo Boomers..In her book Educating the Net Generation, Diana G. Oblinger describe this generation with the following attributes: Digitally literate. Having been immersed into the world of technology since birth, the Net Gen is able to intuitively use a variety of information technology devices and navigate the Internet. Although most of them can intuitively make use of technology, their understanding of the technology itself and how to fully make use of it tends to be shallow. Connected. “As long as this generation has been alive, the world has been a connected place, and more than any preceding generation, they have seized the potential of networked media.” While highly mobile, moving from work to classes to recreational activities, the Net Gen is always connected. Immediate. They multitask, moving quickly from one activity to another, sometimes performing them simultaneously; unfortunately, this occurs with a limited attention span. Social. Despite not being at ease in face-to-face interactions, when it is time to share personal information, opinions, and comments on social networks, the Net Gen seems to be in their element. Clearly not understanding what public domain means, they talk about everything and nothing, without any form of restrain, and they label people they do not even know as friends. Teams. The Net Gen prefers to work in team, and we can often assist with a peer-to-peer approach, where students help each other. Often to their detriment, the Net Gen finds peers more reliable than teachers when they are selecting what is worth paying attention to. Structure. They want parameters and procedures, and they have a preference for clear structure and guidance rather than vague instructions. Engagement and experience. The Net Gen likes to receive information at a fast pace. In the classroom environment, this simply means that they will not pay attention if the educator does not make the lesson interactive and engaging or if the lesson is too slow. Unfortunately, this may also lead to a situation where they do not take the time to process and reflect on information. Visual and kinesthetic. According to Oblinger, in a study that replaced text-based instruction with graphic instructions, the refusal to do the assignment dropped while test scores increased. Things that matter. According to Jeffrey R. Young, when given a choice, this generation seems to prefer working on things that matter, such as addressing an environmental concern or a community problem (Young, 2003). In Asia, the Net generation has been labeled the strawberry generation. Addressing the Singapore Scout Association’s 100th anniversary dinner in February 2010, Senior Minister Goh Chok Tong described young Singaporeans as “fragile like strawberries.” This was in reference to the Taiwanese expression “Strawberry Generation” that described children as overly sheltered, insubordinate, spoiled, not able to withstand pressure, and apathetic about what happens around them. Like the strawberry, they tend to bruise very fast. 892

During the last thirteen years, a tremendous drop in the quality of students enrolling in our polytechnic has been observed. These students tend to lack commitment, they harbor an overall apathy for learning, and they tend to lack curiosity. I believe that they are not entirely at fault. They are, after all, the product of their society. A society, as we have seen, that has been controlling them since birth, telling them what to do, when to do it, how to do it, and certainly, not ask too many questions. It would, therefore, be quite unrealistic to expect them to suddenly develop all the qualities they need to enter the new millennium with grace. 2.5 The Need for Change in Leadership Styles Singapore is one of the most modern ASEAN cities. Its infrastructure is world class, its modes of transportation are efficient, its internet penetration is as high as it has ever been, its system of fiber optics is spreading to modest housing estates, and all its polytechnics are equally well equipped; they even have the capacity to conduct distance-learning. Everything has been done to satisfy the most demanding of our customers, also known as students. If all the technology and infrastructures are in place and if, without a single doubt, Singapore has an amazing pool of dedicated educators who never cease to try to perform better, be inventive in their classrooms, and give their best to the students they teach, then why is there such a gap between our DOEs, the seven core skills stated earlier, and what we actually observe on a daily-basis. I believe that it is in our management style that results in the bulk of the problem; more specifically, it is in the way our managers tend to comply with anything that comes their way, without asking too many questions. Compliance might produce managerial efficiency, but it does not promote a culture of inquiry. Leaders that intend to engage their employees need to encourage questions, debates, and dialogues. Unfortunately, most of those leaders tend to promote both a top-down managerial approach and an unchallenged buy-in. Although the top-down approach is still predominant in a number of corporations, the weaknesses of such an approach are becoming more and more obvious, leading corporations to mix both the top-down and bottom-up approaches. Too often, we assume that top-level managers are best suited to be influential and get things done. However, it is not necessarily true that these people have the ability to lead and changes things and with clear vision and an innovative approach. This particular style of management only promotes a detachment between the original objectives of the corporation and the daily practice of individuals who feel more and more disconnected from the top of the pyramid. Those small groups of individuals develop alternate ways of exercising management and develop their own micro-tasks, objectives, and visions. Although they practice all of the above very often with good intentions, they are seen as disloyal, dishonest, and difficult to manage simply because they are too challenging for the people in power. The challenge for top management is to see that in those isolated groups, there might be some valid strategic value that should be heard. If those same top managers were to apply a bottom-up managerial strategy, they would still provide the basic direction of the new initiative or policy they wanted to implement, but they would invite team members at lower level of management and end users to participate in each and every step of the management process. The entire team would work together, avoiding the need to enforce an unnatural buy-in. Each team member would then be allowed to come up with solutions and focus on practical ways of solving the problem or implementing the initiative, instead of being forced to apply abstract ideas. The reason such a managerial approach is more beneficial for all parties involved is because the more top-down, autocratic approach, usually causes resentment and often leads to little success. The laissez-faire approach does not promote sufficient monitoring of progress, which often leads to failure. This also often leads to confusion as the end user will always propose solutions to problems that were not clearly stated to start with. What seems to be missing in our schools is a more directed empowerment style of leadership. This leadership approach, described by Robert Waterman in The Renewal Factor: How the Best Get and Keep the Competitive Edge promotes autonomy and creativity (empowerment) within a systematic 893

framework that stipulates clear, non-discretionary priorities and parameters (directed). The reason corporate initiatives are very often not well received or simply fail, besides the fact that they are simply imposed on the educators, is because they are often not explained well, and the end user sees very little connection between what he has been forced to do or implement and the relevance to his work as educator. The directed empowerment approach would keep the educators’ practice in line with the original intended initiative, but it would provide a platform for both the administrative team and the team of educators to gather together in an effort to find a solution, to find practical ways to implement policies that would satisfy both parties. This is what Elmore called reciprocal accountability in his book School Reform from the Inside Out: Policy, Practice, and Performance (Richard F. Elmore, 2003). In order for such a practice to succeed, leaders need to learn how to let go, so they can help build the capability of each member of the group to accomplish the task they have been working on. The person at the top of the pyramid should ask himself the following question: “What can I do to give people in this organization the tools and skills to ensure their eventual success as they undertake this challenge?” In a country like Singapore, which still practices some form of Confucianism, where one prefers the harmony to the truth, the status quo to changes, and the leader tends to surround himself by yes men and yes women, which does not promote change, development, or creativity. Most often, people at the top of the pyramid “ignore the invisible leadership of lower-level staff members” (Murphy, 1988, p. 655). Promoting educators into leadership roles has been common practice for quite some time, and educators are promoted to positions such as department heads, curriculum developers, course managers, and section heads. In theory, those specific positions provide an opportunity for educators to promote their decision-making processes. According to Nickse (1977), there are four reasons why promoting educators as agents of change has a great opportunity for success: 1. 2. 3. 4.

Teachers have a vested interest. “They care about what they do and how they do it and feel a sense of responsibility for their efforts”; Teachers have a sense of history, they are “aware of the norms of their colleagues”; Teachers know the community, “have information concerning the values and attitudes of the community”; and Teachers can implement change. They “are where the action is…in the position to initiate planned change on the basis of need.”

However, it seems that despite the attempts to promote educators into leadership positions so they become leaders of change and extend their leadership’s roles, these educators do not see themselves as leaders simply because they are never consulted when it is time to develop new plans and initiatives. Their contribution is still limited to what they are allowed to contribute. Often, they feel pressured to comply with cumbersome of rules and regulations and fill out an increasing amount of unnecessary paperwork. Therefore, these educators feel that they have a title but no real power, and they are given very few opportunities to voice their real concerns. What I feel is lacking is, in fact, a personal vision, and without a vision, those so-called leaders are merely playing a role of managers. It is vital for all leaders to start with a personal vision as it will allow them to forge a shared vision with their coworkers and will empower their teams to act according to this common vision. Leaders of educational change have a clear picture of what they want to accomplish; they have the ability to visualize one’s goals. Their vision of their school or district provides purpose, meaning, and significance to the work of the school and enables them to motivate and empower the staff to contribute to the realization of the vision (Mazzarella & Grundy, 1989). According to Manasse (1986), vision includes the "development, transmission, and implementation of an image of a desirable future…sharing of a leader's vision may differentiate true leaders from mere 894

managers" (p. 151). Sergiovanni stated, “School leaders have not only a vision but also the skills to communicate that vision to others, to develop a shared vision, a shared covenant. The development, transmission, and implementation of a vision is the focus of leaders of educational change” (Sergiovanni, 1990). Sergiovanni has described this aspect of leadership as bonding; leader and followers have a shared set of values and commitment “that bond them together in a common cause” (p. 23) in order to meet a common goal. In Chrispeels's (1990) report of effective schools, she stated, “if a school staff has a shared vision, there is a commitment to change” (p. 39). The shared vision becomes a “shared covenant that bonds together leader and follower in a moral commitment” (Sergiovanni, 1990, p. 24). “These teachers’ visions included changes in the classroom, such as interdisciplinary curricula, varied student grouping patterns, and instruction that included basic literacy as well as critical thinking, creativity, inquisitiveness, and independence of thought” (Murphy, Everston, & Radnofsky, 1991, p. 144). Compared to the general adult population, who identify a good salary and job security (Feistritzer, 1986, p. iii) as the most satisfying aspects of a job; teachers identify the three most satisfying aspects of teaching as: 1. “A chance to use your mind and abilities”; 2. “A chance to work with young people–see young people develop”; and 3. “Appreciation for a job well done” (Feistritzer, 1986, p. iii). 4. According to Greenfield (1991), teachers’ work is not “motivated by bureaucratic mandate or directives from superiors, but by a moral commitment to children rooted in their awareness of the needs of these children and their belief about the significance of their roles as teachers, in these children's lives” (p. 8). “The primary rewards for most teachers come from students’ academic accomplishments–from feeling certain about their own capacity to affect student development” (Rosenholtz, 1987 p. 188). I can, without a doubt, agree with the last two statements as I have seen how proud and moved colleague educators were while attending a graduation ceremony of students they had in their classes. Unfortunately, the educators seem to be the only ones addressing the needs of students as students and not as customers. The rest of the structure around them seems to have only one objective, to please the customer by constantly finding new ways to entertain them–organizing events of all kinds–and prioritize the building of structures to accommodate their needs. Higher levels of management even turn against their educators if they feel the image of the school might be in danger. An educator may reprimand a student or exercise another form of discipline, and management may begin to turn against the educator in order to avoid losing face due to fear that the brand–the school–will suffer from bad publicity. This prioritization of students to academic staff has led many educators to the conclusion that they do not count, that the management team does not care about them, and they feel neglected. “To lead change the leader must believe without question that people are the most important asset of an organization” (Joiner, 1987, p. 2). This can only take place if, the leader first values the professional contributions of the staff, which depend on the leaders’ ability to relate to people. Finally, a good leader must be capable of fostering collaborative relationship. “One finding to emerge repeatedly in studies of leaders, including studies of educational leaders, is that leaders are people oriented” (Mazzarella & Grundy, 1989, p. 16). Gorton and McIntyre (1978) found that effective principals had “an ability to work with different kinds of people having various needs, interests, and expectations” as their strongest asset (Mazzarella & Grundy, 1989, p. 16). Niece (1989) found that “effective instructional leaders are people oriented and interactional" (p. 5). “Change must be initiated by leaders who are willing to risk their reputations for the future benefit of their companies” (Joiner, 1987 p. 4). A good leader should possess the following qualities:  Has a vision;  Believes that schools are for learning;  Values human resources;  Is a skilled communicator and listener;  Acts proactively; and  Is willing to take risks. 895

2.6 Top-Down Leadership Style and its Impact on Students Singapore’s school systems, with its top-down approach to discipline strategies, strongly encourages group identity and conformity. However, when the students graduate from these schools, they are expected to become creative, original in their approaches, and demonstrate unique characteristics. Too often, we stress conformity both in terms of behavior and in the approach to learning. Learning through taking risks and failures are definitely not encouraged, and often, students prefer to play-it-safe and obtain a passing grade instead of venturing outside the box and risking failing or acing a subject. If we want to fully embrace the 21st Century and its challenges, we need to develop a new attitude toward adversity. It is vital to help our students develop the ability to treat failures and mistakes as valuable experiences. As a fervent believer in the concept of synchronicity, dear to the Swiss Psychiatrist Karl Gustav Jung, I would say that there is no such thing as a coincidence. Everything is just a meaningful event taking place in time and space, from which we can learn valuable lessons. Jung invented the word synchronicity to describe what he called “temporally coincident occurrences of acausal events.” Synchronicity is, in fact, nothing less than a meaningful coincidence. If, for just one moment, we were to stop the constant noise taking place in our brain and start to analyze events taking place in our life using Jung’s theory, it might help our students: 1. 2. 3.

Understand that they only use a small percentage of their full capacity, which will enforce their self-belief, the idea that they can accomplish what they desire to accomplish and much more; Make use of their intuition and ability to innovate; Learn from each and every experience, be it a success or a failure, and learn how flexible they can be and how quickly they can adapt to changes and new environments.

Mastery of any skill creates a feeling of contentment. It makes us happy, and psychological and educational researchers from Abraham Maslow to Martin Seligman point out the intimate connection between our emotions and our ability to learn and remember. Also, certain types of learning make us happier, which helps us to learn more effectively. The top-down approach of management has nothing to do with what we are talking about here. As human beings, we develop our learning process through evolution, by interacting with our environment and by extending our zone of proximal development. In a time of such a high-level of complexity, with access to a never-ending flow of new information, schools will have to adapt their teaching pedagogy and offer new mode of learning while transforming and preparing learners to be more adaptive to the world unfolding in front of them. As Beetham and Sharpe (2007) found, this process involves engaging learners in apprenticeships for different kinds of knowledge practice, and it will require new processes of inquiry, dialogue, and connectivity. Innovative new teaching pedagogies will need to include: • Digital competencies that focus on creativity and performance; • Strategies for meta-learning, including learner-designed learning; • Inductive and creative modes of reasoning and problem-solving; • Learner-driven content creation and collaborative knowledge-building; and • Horizontal (peer-to-peer) learning and contributions to communities of learning. Pedagogy 2.0 - a framework derived from Web 2.0 - offers a series of guidelines to promote effective learning: • Content should consist of micro units of content that augment thinking and cognition and may include a wide variety of learner-generated resources that are accrued from students creating, sharing, and revising ideas; • Curriculum should not be fixed but dynamic, open to negotiation and learner input, consisting of bite-sized modules, and interdisciplinary in focus, and it should blend formal and informal learning; • Communication where students are offered multiple opportunities for open, social, peer-to-peer, and multi-faceted forms of visual, verbal, and auditory communication using multiple media types to achieve relevance, immediacy, and clarity; 896

• Learning processes should be situated, contextualized, reflective, integrated with thinking processes, iterative, dynamic, and performance and inquiry-based; • Resources should include multiple informal and formal sources that are media rich, interdisciplinary, and global in reach; • Platforms, through a network of peers, teachers, experts, and communities, should be open to students; • Learning tasks should be authentic, personalized, experiential, learner-driven and designed, and enable the creation of content and innovative ideas from learners. These principles represent the intersection between established instructional design principles for the creation of constructivist, student-centered learning environments. In Nine Characteristics of High-Performing Schools, G. Sue Shannon and Pete Bylsma (2007), offer resources to improve student learning. In 2002, specialists from the Office of the Superintendent of Public Instruction (OSPI) reviewed more than 20 studies on successful schools. All the successful schools had the following attributes in common: 1. A clear and shared focus is required, so everybody knew where they are going and why. The focus was on achieving a shared vision, and all – be it educators or administrators - understand their role in achieving the vision. The focus and vision are developed from common beliefs and values, creating a consistent direction for everyone involved; 2. High standards and expectations for all students where teachers and staff believe that all students can learn and meet high standards are required. While recognizing that some students must overcome significant barriers, these obstacles are not seen as insurmountable. Students are offered an ambitious and rigorous course of study; 3. Effective school leadership where effective instructional and administrative leadership is required to implement change processes. Effective leaders are proactive and seek help when it is needed. They nurture an instructional program and school culture conducive to learning and professional growth. Effective leaders have different styles and roles–teachers and other staff, including those in the district office, often have leadership roles; 4. High levels of collaboration and communication are required, so there is strong teamwork among teachers across all grades and with other staff. Everybody is involved and connected to each other, including parents and members of the community, to identify problems and work on solutions; 5. Curriculum, instruction, and assessments aligned with state standards are necessary, so the planned and actual curricula are aligned with the essential academic learning requirements (EALRs). Research-based teaching strategies and materials are used. Staff understands the role of classroom and state assessments, what the assessments measure, and how student work is evaluated; 6. Frequent monitoring of learning and teaching are necessary, and a steady cycle of different assessments identify students who need help. More support and instructional time are provided, either during the school day or outside normal school hours, to students who need more help. Teaching is adjusted based on frequent monitoring of student progress and needs. Assessment results are used to focus and improve instructional programs; 7. Focused professional development is necessary, so a strong emphasis is placed on training staff in areas that are in needed the most. Feedback from learning and teaching focuses on extensive and ongoing professional development. The support is also aligned with the school or district vision and objectives; 8. Supportive learning environment is necessary, so the school has a safe, civil, healthy, and an intellectually stimulating learning environment. Students feel respected and connected with the staff and are engaged in learning. Instruction is personalized and small learning environments increase student contact with teachers; and 9. A high level of family and community involvement is required, so there is a sense that everyone has a responsibility to educate students, not just teachers and staff in schools. Families and community also play a vital role in this effort. In our new world of constantly shifting possibilities and opportunities, the problems we are preparing our students for might not be the ones they will encounter in real life. It is no longer important for them to state what they know; it is more likely that what they can do with what they know will be required in their curriculum vitae.

897

As David Chiem and Brian Caswell so brilliantly stated in their book The 3-Mind revolution; in order to survive in our new economy, the students will need to learn how to develop what they call the champion mind, the learning mind and the creative mind. The champion mind is simply a different way of thinking, made of equal parts of emotional intelligence, communication skills, self-awareness, and self-confidence. As for the learning mind, if we can develop it so that we maintain our natural curiosity about the world around us, to store and make use of information effectively, we will be able to identify how we learn. If we can develop the creative mind and apply creativity to the problems we face, and if we strive to give creativity the emphasis it deserves in our schools, we might be able to give each and every child the opportunity to contribute to the world around them. 2.7 Summary and Conclusion Fortunately and unfortunately, the dichotomy between the stated DOE from the Singapore Ministry of Education and the reality faced by students and faculty is not unique to Singapore, and neither is the global achievement gap between what we should teach our children and what is really covered in our curriculum, or how we teach. However, in conservative Asian societies, it is probably the top-down approach that constitutes the biggest of all challenges. Colleague educators from Singapore and neighboring countries have all shared the same feelings of disconnect between what they face on a daily basis and the policies dictated by their Ministry of Education, the President of their university, their Boards of Trustees, and other decision makers. Our school leaders seem to fail to provide the educators with adequate tools to carry out their missions, focusing most of their time on key performance indicators, the success of ISO certification, and other irrelevant statistics that, at best, demonstrate some level of conformity but do not say much about performance. Compliance, as we have seen, is a bureaucratic tendency, but it does not promote or enable the intellectual inquiry and engagement required for sustainable improvement. At best, it promotes a climate of resentment, cynicism, and sarcasm. To become architects of change, educators need to be fully engaged in educational improvement efforts; they need to be allowed to voice out their concerns, ideas, and disagreement in a supportive climate without fear of reprisal. We need a new kind of leader; one that is willing to focus on helping the team share knowledge, one that is willing to give the team members a voice. we need a new kind of administrator; one that can both run our schools and understand the challenges faced by educators on a daily basis. Leaders should stop spending their time with other leaders, focusing on strategic issues. Sure, strategic plans are important, but over time, leaders become out of touch with the reality and problems faced by educators who are the ones that get the work done. By isolating themselves, leaders become out of sync with reality and tend to focus on and cater solely to issues related to other leaders and managers.

Slowly things are changing, and there are an increasing number of educators expressing the same message. Unfortunately, we have not yet reached a critical mass. Educators need to stand united and dare to express their concerns while offering solutions. Let’s not be passive-aggressive but pro-active and work together to develop a new way of addressing the issues we face in our classrooms and with our managers. For some, teaching is just a job, but for most, it is a vocation, a calling. Things will not change overnight, but without a doubt, it starts with a reflection, followed by some concrete action. Transformation education is an ongoing task, but it has already started through the work we are doing every day. “We‘ve bought into the idea that education is about training and success,” which is defined monetarily rather than by the students’ ability to think critically and to challenge. We should not forget that the true purpose of education is to make minds, not careers. A culture that does not grasp the vital interplay between morality and power, which mistakes management techniques for wisdom and fails to understand that the measure of a civilization is its compassion not its speed or ability to consume, condemns itself to death”. (Chris Hedges, 2009).

898

References [1] (2008). Heraclitus-Fragments (English and Greek Edition). New York: Penguin. [2] (2009). The Montessori Principles and Practice: A Book For Parents and Teachers. Culverwell, Edward Parnall, 1855-1931. : Cornell University Library. [3] Bellon, T. & Beaudry, J. (1992). Teachers' perceptions of their leadership roles in site-based decision making. Paper presented at the Annual Meeting of the American Educational Research Association, San Francisco, CA. [4] Bereiter, C. (1968). Psychology and Early Education, in D.W. Brison and J. Hill (Eds.), Psychology and Early Childhood Education, Monograph Series No.4. (pp.61-78)Toronto, Ontario: Institute for Studies in Education. [5] Blumberg, A. & Greenfield, W. (1980). The Effective Principal: Perspectives on School Leadership. Boston: Allyn & Bacon. [6] Blumberg, A. & Greenfield, W. (1986). The Effective Principal: Perspectives on School Leadership. 2nd Edition. Boston: Allyn & Bacon. [7] Boles, K. & Troen, V. (1992). How teachers make restructuring happen. Educational Leadership, 49 (5), 53-56. [8] Bruner, J. (1996). The Culture of Education. Cambridge, MA: Harvard University Press. [9] Chiem D. & Caswell, B. (2009). The 3-Mind Revolution. Singapore:Marshall Cavendish International (Asia) Private Limited. [10] Chrispeels, J.A. (1990). Achieving and Sustaining School Effectiveness: A Five Year Study of Change in Elementary Schools. Paper presented at the Annual Meeting of the American Educational Research Association, Boston, MA. [11] Dewey, J. (1966). Democracy and Education. An Introduction to the Philosophy Of Education, New York: Free Press. [12] Elmore R.F. (2004). School Reform From the Inside Out: Policy, Practice, and Performance. Cambridge, MA 02138:Harvard Education Press. [13] Feistritzer, C.E. (1986). Profile of Teachers in The U.S. Washington DC: National Center for Education Information. [14] Glasman, N.S. (1984). Student achievement and the school principal. Educational Evaluation and Policy Analysis, 6(3), 283-296. [15] Goodlad, J. I., (1984). A Place Called School. New York: McGraw-Hill. [16] Goodlad, J.I. (1994) Educational Renewal: Better Teachers. Better Schools. San Francisco:Jossey-Bass Publishers. [17] Gopinathan S. (1975). Towards a National System of Education in Singapore, 1945-73 (Oxford in Asia Current Affairs). (pp. 86). Singapore. Oxford University Press. [18] Hedges, C. (2009). Empire of Illusion: The End of Literacy and the Triumph of Spectacle. New York: Nation Books. [19] Greenfield, W.D. (1991). The micropolitics of leadership in an urban elementary school. Paper presented at the Annual Meeting of the American Educational Research Association, Chicago, IL. [20] Hallinger, P., Bickman, L., & Davis, K. (1990). What Makes A Difference: School Context, Principal Leadership, and Student Achievement. : The National Center for Educational Leadership, Occasional Paper No. 3, Harvard Graduate School of Education, Cambridge, MA 02138 [21] Hord, S.M. (1992). Facilitating Leadership: The Imperative for Change. Austin, TX: Southwest Educational Development Laboratory. [22] Howey, K.R. (1988). Why teacher leadership? Journal of Teacher Education, 34(1), 28-31. [23] Kho, E.M. (2004). Construction of femininity: Girls' education in Singapore, 1959-2000. (Unpublished doctoral dissertation.) National University of Singapore, Singapore. (LC2410.S55 Kho). [24] Krug, S.E., Scott, C., & Ahadi, S. (1990). An Experience Sampling Approach to the study of principal instructional leadership I: Results from the Principal Activity Sampling Form. Urbana, IL: The National Center for School Leadership, University of Illinois at Urbana-Champaign. [25] Leithwood, K.A. & Montgomery, D.J. (1984). Patterns of growth in principal effectiveness. Paper presented at the Annual Meeting of American Educational Research Association, New Orleans. [26] Manasse, A.L. (1986). Vision and leadership: Paying attention to intention. Peabody Journal of Education, 63(1), 150-173. [27] Mazzarella, J.A. & Grundy, T. (1989). Portrait of a leader. In S.C. Smith & P.K. Piele (Eds.), School Leadership: Handbook for Excellence Second Edition. (pp. 9-27). Washington, DC: Office of Educational Research and Improvement. [28] Mazzarella, J.A. & Smith, S.C. (1989). Leadership Styles. In S.C. Smith & P.K. Piele (Eds.), 899

[29]

[30]

[31] [32] [33] [34] [35] [36] [37]

[38] [39] [40] [41] [42] [43] [44] [45] [46] [47]

School Leadership: Handbook for Excellence Second Edition. (pp. 28-52). Washington, DC: Office of Educational Research and Improvement. McLoughlin, C. & Lee, M.J.W. (2008). Web 2.0: The three p’s of pedagogy for the networked society: personalization, participation, and productivity. International Journal of Teaching and Learning in Higher Education, 20(1), 10-27. Murphy, J., Everston, C.M., & Radnofsky, M. L. (1991). Restructuring schools: Fourteen elementary and secondary teachers' perspectives on reform. The Elementary School Journal, 92(2), 135-148. National Council for Excellence in Critical Thinking. Retrieved from http://www.criticalthinking.org/pages/defining-critical-thinking/410 Nickse, R.S. (1977). Teachers as Change Agents. Washington, DC: National Education Association. Palmer, J. (Ed.). (2001). Fifty Major Thinkers on Education: From Confucius to Dewey. London and New York: Routledge. Parliament of Singapore–SESSIONS. Retrieved from http://www.parliament.gov.sg/publications-singapore-parliament-reports Pejza, J.P. (1985). The Catholic school principal: A different kind of leader. Paper presented at the Annual Meeting of the National Catholic Educational Association, St. Louis, MO. Seeley, D.S. (1992, April). Visionary Leaders for Reforming Public Schools. Paper presented at the Annual Meeting of the American Educational Research Association, San Francisco, CA. Sergiovanni, T.J. (1989). The leadership needed for quality schools. In T.J. Sergiovanni & J. H. Moore (Eds.), Schooling for Tomorrow: Directing Reforms to Issues That Count. (pp. 213-226). Boston: Allyn and Bacon. Sergiovanni, T.J. (1990). Adding value to leadership gets extraordinary results. Educational Leadership, 47(8), 23-27. Shannon, G. S. and Bylsma P. (2007). Nine Characteristics of High-Performing Schools. Olympia, WA: Office of Superintendent of Public. Sharpe, L. & Gopinathan, S. (2002). After effectiveness: New directions in the Singapore school system. Journal of Educational Policy Study, 17(2), 151-166. Sirotnik, K. A. (2001). Renewing Schools & Teacher Education: An Odyssey In Educational Change. Washington, DC: AACTE Publication, p. 28. Program folder. SOCIALBAKERS. Retrieved from http://www.socialbakers.com/facebook-statistics/singapore (May 2012) Stamford, T. (2009). Minute by Sir T.S. Raffles on the establishment of a Malay College at Singapore Raffles, Thomas Stamford, Sir, 1781-1826. Wasley, P.A. (1991). Teachers Who Lead: The Rhetoric of Reform and the Realities of Practice. New York: Teachers College Press. Waterman, R. (1998). The Renewal Factor: How The Best Get And Keep The Competitive Edge. New York:Bantam Books. Waugh, R.F. & Punch, K.F. (1987). Teacher receptivity to systemwide change in the implementation stage. Review of Educational Research, 57(3), 237-254. Young, J.R. (2003). A new take on what today's students want from college. Chronicle of Higher Education

900

I212 Group Investigation in College English Program at a Chinese University: A Case Study Hao Liu Jiaotong University, Xian City, China Email: liuhao@mail.xjtu.edu.cn

Abstract This study investigated the application and the effect of Group Investigation, a technique of Cooperative Learning, in College English Program in a Chinese University. 15 second-year-undergraduates taking a course titled Sources of European Culture participated. A qualitative case study method was used to perceive the GI system used by Chinese instructors and the achievements acquired and challenges met by the participants. Participants needed to give a presentation on what they had explored in small groups after class on the topic pertaining to the course in the Group Investigation. Interviews, observations, documents were used to collect the data. Data analysis showed Chinese instructors applied a GI technique similar to what discussed by Johnson and Johnson (1999), GI in the Chinese context demanded more efforts from the teacher to design task and to provide help either in PPT presentation or in utilization of English. Besides, although participants used mother tongue at some stages, their autonomy of English learning was activated and horizons in the course content were broadened. Keywords: group investigation; College English program; teaching method; efficacy; case study Note：This research was supported by China Foreign Language Education Fund and by the Subject of Shaanxi Province Educational Science Eleventh Five Years Plan （SGH10016）.

Introduction College English Program in China has been in operation at the tertiary level for over 30 years. Since the operation of the College English program, the teaching and learning of English had been mainly focused on reading and writing. With the trend of globalization, emphasizing listening and speaking of English with the help of a computer has been continually reformed for the past six years as required by the Chinese Ministry of Education. New objective has been set for College English Program: The objective of College English is to develop students’ ability to use English in a well-rounded way, especially in listening and speaking, so that in their future studies and careers as well as social interactions they will be able to communicate effectively, and at the same time enhance their ability to study independently and improve their general cultural awareness so as to meet the needs of China’s social development and international exchanges. (Ministry of Education, 2007, p25) To accomplish this goal, College English teachers have applied various cooperative learning approaches to involve students in English learning. First, those approaches could involve as many students as possible in large classes; Most importantly, interaction in a cooperative learning situation is basically characterized by positive goal interdependence with individual accountability (Johnson and Johnson, 1994, 1998). This paper aims to address the GI system in two second-year college English classes and to explore the challenges encountered and achievements acquired with a cooperative learning approach in a Chinese university context.

Literature review According to Johnson and Johnson (1998), Cooperative Learning refers to a group of instructional methods in which small groups of students work together and aid each other in completing academic 901

tasks. According to Tan (2006), an extensive body of research has been done in the field of cooperative learning in many countries such as USA, UK, Australia, and Israel. The systematic procedures for using CL, and its many apparent virtues, have been sufficiently documented. Specifically, Slavin (1982) has classified instructional techniques of CL mainly as Student Team-Achievement Divisions (STAD), Team-Game-Tournaments (TGT), Team-Assisted Individualization (TAI), Cooperative Integrated Reading and Composition (CIRC), Jigsaw, Learning Together, and Group Investigation (GI). While when briefing the three basic ways (competitive, individualistic, and cooperative) that students can interact with each other as they learn, Johnson and Johnson (1998) listed the four advantages of CL suggested by research: achieve more; be more positive about school, subject areas, and teachers or professors; be more positive about each other; be more effective interpersonally. In addition, Sharan, Y. and Sharan, S. (1999) emphasized and elaborated the role of the instructor in GI in details. Nevertheless, Asian countries lagged behind both in the application and research in this field. Only in recent years, “Asian countries such as Singapore and Malaysia are at an initial stage of learning about the possibilities and problems of implementing cooperative learning in their educational systems” (Tan, 2006, p65). Researchers (Holt,1993; Jacobs & McCafferty, 2006; Jacobs & Goh, 2007) argued that the integration of CL into second language classrooms is considered likely to facilitate optimum development of a learner’s ability to communicate in the target language because it provides increased opportunities for comprehensible input, real-life experience of language use, and positive peer interaction. Research has also found that CL structures generated substantially more language output from Chinese tertiary EFL learners than unstructured group work and whole-class lecturing (Jacobs and McCafferty op.cit.; Ning 2007). However, the GI system in language classes in China and its efficacy haven’t been sufficiently discussed yet. This study aims to provide a detailed discussion of the GI activity applied in College English classes which is supposed to enhance students’ cooperation and English learning. The following research questions provide the specific focus for the study: 1. 2. 3.

What is the GI system used by the instructors in the sample university? What are the challenges the participants confronted in the process of GI? What have the participants achieved in this activity?

Methodology A qualitative inquiry paradigm was utilized for this study. Since the task of the study was to raise people to a level of true consciousness about the phenomenon, this paradigm helped the researchers in this study construct beliefs on the teaching activity explored through the experiences of the participants. This research was designed as a case study methodology because researchers were to give “an intensive, holistic description and analysis of a single instance, phenomenon, or social unit” (Merriam, 1998, P.27). The particular social unit in this study was two second year classes in a College English program in a Chinese University which located in a big city of northwest China. A purposeful sample of 15 participants from those two classes was chosen since “the logic and power of purposeful sampling … leads to selecting information-rich cases for study in depth” (Glesne, 2011, p44, from Patton, 2002, p 46). Interviews, observations, students’ reflexive journals, and documents were collected as the data. During the progress of the course, two out of five groups were interviewed as a pilot to the research before their class presentations, which generated broad categories. Five post-presentation interviews were carried out to obtain more information. Both rounds of interviews were done in small focus groups in the researchers’ office. These interviews were to determine participants’ views on the Group Investigation activity utilized in the course. Besides, two instructors of the classes were interviewed when the GI activities were finished to triangulate participant’s performance in the activity. Five observations were conducted during the teacher-tutoring sessions and two two-hour observations were audio recorded during the students’ class presentations. Thirty nine student reflexive diaries were collected after the class presentation. 2 teachers’ and 39 students’ evaluation sheets (Appendix A) were the documents collected on the student presentation activity. These data were analyzed through repeated reading, simple color coding and unitization of data to determine categories and themes that emerged. With constant comparison among those data sources, researchers developed a set of student perceptions of this Group Investigation activity. The credibility of 902

this qualitative inquiry (Guba and Lincoln, 1985) was ensured by researchers’ prolonged engagement and persistent observation. They were involved with their instructors and students for a full semester and did 7 formal observations on the classes. Prior to the semester beginning, researchers talked with the two instructors to make sure they would use the same procedures during the presentation activity. Well before the data collection, researchers had drawn a detailed research plan including sub-research questions, data to collect, analysis procedures, results to expect to make sure each step of the research was credible and dependable. Interview questions and guided questions (Appendix B) for participants’ reflexive diary were also discussed among the researchers to triangulate the sources of the information. Besides observations, interviews, and participants’ reflexive diary, documents including evaluation sheets from both the instructors and the participants were also collected as a triangulation of the data. Thick descriptive data were collected in this study from purposive sampling to serve the purpose of transferability. An audit trail of the process of the analysis and a thick description of the finding in the study made the study dependable.

Context of the study As part of the reform mentioned in the introduction part, instead of the traditional Comprehensive English, many universities have been providing a set of advanced courses for second year undergraduates such as News English, Academic Writing, American Culture, Business English, etc. to cater to the students with increasing English proficiency. In this sample university, all the second year students could choose from 10 English courses to earn their second year College English program credits. Group Investigation activity is one of the major activities used by most of the second-year College English program teachers to encourage students to be actively involved in English learning. In this activity, instructors provided broad topics related to the course for students to choose from, and then students worked in small groups after class on their specific sub-topics. Students should have experienced information searching, group discussing, teacher tutoring, and rehearsing before they presented their reports in 15-20 minute class presentations. During the class presentation, students were required to fill in the evaluation sheet on other groups’ work to gain their score on this activity. This activity usually took 5-6 weeks from assigning the topics until the final presentation. Two classes from the course of Origins of European Culture were chosen for the present study. There were 19 and 20 students in class 1 and 2 respectively. Fifteen students were purposefully chosen from those two classes to be participants in this study. Participants’ presentation groups were the same as focus groups in the interviews as showed in Table 1. Table 1. Focus groups’ profiles

Data analysis and findings The three research questions of the present study had put forward three pilot categories: GI system, achievements and challenges. With these three pilot categories in mind, researchers found the following themes while coding from the interviews, observations and documents: instructors’ guidance in topic decision, convenience in communicating with familiar group members, Chinese in information sources, benefits from sorting the materials, chance to practice English, the positive and negative description of using a PPT. 903

Thereafter, the presentation of the data was organized around these themes and they were discussed in turn with reference to the participants and teachers’ own explanations or analytic commentary on them; it was through an analysis of these explanations and commentary that the key features of GI system emerged, students achievements appeared and the challenges protruded. This form of presentation mirrored and made transparent to readers the processes of data analysis that was central to this study; it also ensured that all assertions in the account were clearly grounded in the data from which they emerged. 1. Instructor’s guidance in topic decision In instructor interviews, both instructor C and P mentioned that students needed their guidance in choosing the broad topics. What they and the participants said suggested that teacher’s guidance assured the smooth going of the GI. For one thing, European culture was new to Chinese students; it was not an easy task for them to choose an appropriate topic in this field; For another, the participants’ interviews indicated that they would like to accept the instructor’s advice, which echoed Chinese’ character to abide the teacher. Excerpt 1 C: While I asked students what their interested topics were, they said they knew little about the field of study and would like me to give them some guidance. So, I talked with other colleagues, and decided several broad research topics for students to choose from. (Instructor Interview, Line 5) Excerpt 2 Participant 4: We are not familiar with European culture and we did not know what to do, and do not have much time to think about it, so when our instructor gave us 3 broad topics, we just chose one from them. (Participant Interview 6, Page 1, Line 9) Due to the limitation on the subjects and on their study schedule, all of the participants preferred guidance from the instructor at the very beginning of doing the group investigation. 2. Convenience in communicating with familiar group members When interviewed about the way to form their small groups, 12 out of 15 participants agreed to stay with familiar group members as proved by Participant 3: Excerpt 3: Participant 3: If we worked with unfamiliar people or people from a different major, there would be a problem of communication. … You may not know the person’s ability. If each group member did one part of the research, you were not sure about his character or his attitudes towards this assignment. In case this person was not serious about the work, it would not be well done. (Participant Interview 2, Page 1, line16) They had their reasons to worry about the conflicts in discussing their topics with unfamiliar members and the difficulty in contacting them. They would take the distance from their classmates and the accountability for the task into consideration. Contrary to the worries, other participants explained a different thinking: Excerpt 4 Participant 7: If not familiar, it may be efficient to discuss. … We could decide a place to discuss and probably meet at Kangqiao (the main dining hall). Everyone has had some ideas and we came together and communicated and put forward a general plan and left. It’s highly efficient. …We would be off the subject now and then if very familiar to each other. ( Participant Interview 2, Page 3, Line 3-5) Participants showed their variables on choosing group members, while most of them generally would accept the familiar students as their group members because of convenience. 3. Chinese in information sources Data analysis showed that Internet, library and textbook were the major information sources for the students. All of them used Baidu, a Chinese search engine. Besides, 5 of them also used Google, and 3 of them used the University library. Participants 6, 7 and 13 mentioned using part of their textbook. Most of them admitted using Chinese in much of their work while a few mentioned using English. Participant 10 said “I have entered an English data base of our library, but just a few times. Still I have to search the information in Chinese, and then translate. It’s indeed a bit difficult to do English reading 904

in this field.” (Participant Interview 3, Page 4, Line 17). Although 10 of 15 participants have passed CET-6, most of them preferred reading in Chinese and then later reported in English. The fact that the subject is new to them could be one reason, while researchers assumed that the more time spent on reading English and students’ laziness would mainly account for the reason why they chose Chinese. 4. Benefits from sorting the materials. All of the participants talked about information searching and sorting positively although several of them used “troublesome” to describe the process. Data coding showed most of the participants have learned how to sort materials, and some of those have realized the importance of doing it. Still others have found the information searching procedure has helped them expand their vision both on the topic and the course, and helped them sort the contents they have learned in the course. Excerpt 5 Participant 13: It’s difficult to collect and sort the materials, esp. sort the data. So much information. I did a PPT first, and then, added new information according to the PPT. I searched again when I felt something missing or I felt I needed more information. (Participant Interview 4, Page 2, Line 30) Excerpt 6 Participant 3: The whole process is a reducing and simplifying one. We kept reducing some plot of the story and focused on the main conflict. (Reflective Diary P3, Line12) Excerpt 7 Participant 12: I was amazed at my team members’ strong ability to outline and summarize the information. They could conclude the key points from the sea of information and display them logically. (Reflective Diary P12, Line 6-7) Most of the participants showed that they had done a more or less active job in data sorting making it the most beneficial part to their thinking in this activity. 5. The chance to practice English As participant 10 said in the interview: “Doing presentation is sure to help practice speaking English in Public. There is not much chance usually.”(Participant Interview 3, page 4, Line 5). In the pilot interviews, participants expressed a high possibility of using Chinese in their after-class discussions which cast a shadow on the practice of English in this activity. In post-interviews it was found that participants discussed their topic in the GI mostly in Chinese as assumed before. When they were asked about their opinion about their using Chinese in this activity in post-interviews, they didn’t take the situation seriously. They believed that it was efficient to discuss in Chinese and regarded the GI as a good chance to practice English (Participant Interview 7, Page 2; Participant Interview 3, page 4) Generally, 14 of the participants suggested that this activity provided them a good chance to practice English and a good chance to arouse their interest in learning English. The only one who had a different idea on this activity hadn’t passed the CET-4 exam, which may account for his failure in CET-4. Data mining in the document (Student and Teacher Evaluation sheets) on this activity reported that 14 out of 39 students could not present in public without script. Participants’ answers to the question “Why did you have to read the script instead of speaking in the presentation?” in the post-interviews showed that two situations existed: three participants said their English proficiency was not high enough to meet the task of presentation; the rest mentioned they hadn’t done enough work before the presentation. (Participant Interview7, Page 3; Participant Interview 5, Page 3) 6. The positive and negative description of using a PPT As computer technology has become widespread in educational context in China, participants in the present research were required to present their research topic with the help of Power Point. Although most of the groups could accomplish the task of making a PPT, and they had claimed an improvement in the skill of making a PPT, three negative sub-themes still emerged concerning using Power Point: unclear background, long scripts on one page and the inconsistent PPT style of each speaker in a group. When instructor C tutored Group 4, she used the term “colorful” to indicate the need of refining the background of the PPT (Teacher Tutor 1, Page 1, Line 13), which had a similar meaning to the words “ambiguous” or “ unclear” used by students in their evaluation sheets.

905

As another modern technology, video clips were sometimes used to attract their peers in the presentation, but how to use it remained a dilemma. Student Evaluation Sheet (SES) 2 read “using some piece of movie to attract students” and SES 6 wrote “There is a video program; the content is abundant, impressive.” On the contrary, when evaluating the video clips used by the same group mentioned above, SES3,5,8 and 17 commented that there were too many video clips and they were not practical to illustrate the central topic.

Discussion 1. GI system As a review of CL, Sharan, Y. and Sharan, S. (1999) explained that students formed small interest groups, planned and implemented their investigation, synthesized information to produce a final product, and participated in the class presentation in GI technique. Data analysis showed a similar procedure in Chinese context. In the instructor interview, both of the two instructors described the stages of this activity as the following: grouping; deciding topics; searching and sorting information; group discussing; doing a PPT; rehearsing; presenting their findings; evaluating other’s presentations. However, a big difference lied between the GI discussed by Sharan, S. (1994) and the GI utilized by the two Chinese instructors: the GI was carried out after class due to the limit of class hours in the Chinese context, which might not guarantee that all the procedures expected by the instructors were experienced by the students. “Rehearsing” in Group 5 was sacrificed in the name of a busy schedule (Participant Interview 4). The required 3 small group discussions were reduced to one by Group one for the same reason (Participant Interview 5). The focus of both the instructor and the students was put on the final stage, class presentation, while researchers regarded the stage of “rehearsing” in GI as especially critical in a language learning course. Students would naturally choose Chinese in after-class discussions, which is unavoidable in the Chinese context without supervision. However, rehearsal appeared to be the rare occasion in which students were forced to use English with their peers. Discussions pertaining to information sorting and content choosing helped participants understand the logic of their topics; whereas in the rehearsal, the goal to achieve a high evaluation from the teacher and their peers would motivate students to polish their language and to refine their way of speaking in public, which was considered by the researchers as the most important stage for a CL activity applied in the language learning field. The interaction hypothesis (Hatch 1978a; Long 1981) emphasized the role of the learner in social interaction, especially how he or she was able to exert agency over language input. Only the changes in input that resulted from negotiation were thought to lead to acquisition. Therefore, students would achieve more than a smooth speech in the final presentation from this stage. Group 3 and 4 reporting “rehearsed several times” (Participant interview 7 and 8) showed a more positive attitude towards English learning and were thought to have spoken “fluent English” by their peers and the instructor in the Evaluation Sheets. 2. Achievements The present study proved the broad advantages suggested by Johnson and Johnson (1998) without exception. More specifically, among the six themes, “Convenience in communicating with familiar group members” would not suggest any benefits of the activity directly. What was between the lines was that students had more chances to talk about the topic and even the whole course, which added to their improvement in course learning as shown in data analysis. Similarly, Liang (2004) discussed the benefits of GI with subject matter among Chinese immigrant students in a Canadian high school. Furthermore, this activity gave students the chance to try to locate what they needed in the sea of information and put those elements in a logical order in a real task. It could contribute to their way of thinking, especially critical thinking, which was generally regarded as an ability of purposeful and self-regulating judgment (APA, 1990). In the information processing, participants had experienced inducing, deducing, reducing and adding of the information (Excerpt 5-7); they also had to accept or defend opinions in their discussion. Those activities had much to do with the critical thinking. Furthermore, as discussed in GI system, participants’ interests in western culture were aroused and a positive attitude towards English learning was nurtured due to this cooperative learning. Although they used Chinese in the after-class stages, they still believed the activity afforded a good chance to practice English, especially a chance to use English actively. 3. Challenges As the theme “Chinese in information sources” implied, using Chinese both in information sources and in small group discussion had become the most serious challenge in the Chinese context (Excerpt 8-11). Data exploration into the participant interviews on the reasons of using the mother tongue indicated 906

that for one thing, the topics pertaining to European culture were complex and profound; for another, participants didn’t have the appropriate pool of vocabulary to support the discussion or their information reading. In the era of Internet, the varieties of information sources required strong ability of information searching and sorting. Without the help of mother tongue, the discussion would float superficially and students would lose interests eventually. Therefore, using English should not be the priority at this stage, and the purpose of discussing a topic concerning western culture would necessarily add to students’ use of English. Now that using mother tongue was unavoidable in a non-English context, a stage when students had to apply their English must be designed. Under the situation of applying computer technology required by Chinese Ministry of Education (College English Teaching Requirements, 2007), the “rehearsal” could be either carried out in Multimedia Network Classroom in students auto-study period under the supervision of an instructor or recorded by themselves after class as part of their tasks to be graded. Thus, there could be an environment of learning English in GI in a Chinese context. Sharan, S. and Sharan, Y (1999) had listed the role of the instructor in the six stages of GI, but in the present study, the biggest part of the GI was carried out after class; the limited face-to-face GI supervision of the instructor would necessarily reduce the role of the instructor in the GI, so the design of the activity became vital to its success. Furthermore, to ensure the success of the task in this situation, the role of the instructor has to be reinforced. For one thing, with most parts of the activity done after class, they had to come up with a rigid design of the task, which would be the prerequisite for success; otherwise, some procedures would be skipped in the excuse of a busy schedule. For another, instructors had to be ready to provide students guidance on how to present their findings properly with the help of a PPT. The other problem met in the GI by Chinese English learners was that most of their reports were evaluated as too general by either the instructor or their peers (the words “too general” or “void” appeared 26 times together in Teacher Tutoring observations and Students Evaluation Sheets). Leading the discussion to a more profound direction could be a challenge both for the students and the instructor with language a big obstacle. This could indicate two things: for one thing, Chinese sophomores lacked the ability of cracking down a research problem; for another, they needed guidance in academic English. To accomplish the task of GI in EFL, there would be much need for instructors to prepare both on the language and on the topic, and to provide the sources of the information, and the research method, whereas all of these were missing in the data. The last to be discussed here could both be a technology problem and an academic one: doing a PPT. Comments such as “vague background,” “long scripts,” “inconsistent style of PPT,” and “improper use of video clips” were obtained either from Student Evaluation Sheets or from the Teacher Tutoring observations. “Vague background” could be solved by lectures on how to do a PPT presentation well before or together with the assignment of the GI. The other three themes showed that participants didn’t grasp the key points in using a PPT, and they didn’t do enough discussion on the relation between the key points and supporting materials. Interviews (Participant Interview 4 &5) showed that Groups One and Five divided their tasks after deciding their topic and combined them together just before the presentation. They lacked cooperation with each other in the activity which was similar to Liang’s findings (2004). Liang reported that Chinese immigrant students in a Canadian high school “wanted to complete the task rather than spend time reasoning about why they were doing the work in a particular way and discussing different opinions” in the action discourse of group work.

Conclusion This study was undertaken to localize the practice of CL technique—Group Investigation on the Chinese EFL learners and investigate, with a qualitative case study, its effectiveness. The study also sought to explore the achievements and the challenges that participants acquired and met in this activity. The limitations are apparent in terms of the present study’s representation of population, the questions used in the interviews, and the teaching styles of the two instructors. Specifically, the difference in the elements of participants’ critical thinking before and after the activity hadn’t been explored; participants’ improvements in English hadn’t been measured yet. However, it is hoped that findings from this small-scale but in-depth investigation of the GI would shed light on the application of cooperating learning methods in a Chinese English-learning context. The results obtained can be considered as illuminating guidelines first and foremost for language teachers; the findings can also be helpful to EFL teachers either involved in CL practice or aiming to implement CL to maximize its benefits in classrooms. 907

References [1] Charmaz, K. 2006. Constructing grounded theory. California: Sage Publications. [2] Clandinin, D. J. & Connely, F. M. 2000. Narrative inquiry—experience and story in qualitative research. San Francisco: Jossey Bass Publishers. [3] Corbbin, J. M. & Strauss, A. L. 2011. Grounded theory -an overview. In Denzin, N. K. & Lioncoln, Y. S. (Ed.), Hand book of qualitative research. California: Sage Publications. (pp273-285) [4] Corbbin, J. M. & Strauss, A. L. 2008; 1998. Basics of qualitative research. California: Sage Publications. [5] Deng, X. 2007. Promotion of interaction in cooperative learning task. Sino-US English Teaching 47: 8–13. [6] Denzin, N. K. & Lioncoln, Y. S. (Ed.) 2011. Hand book of qualitative research. California: Sage Publications. [7] Erlandson, D. A. & Harris, E. L. 1993. Doing naturalistic inquiry. California: Sage Publications. [8] Guba, E. G. & Lioncoln, Y. S. 1985. Naturalistic inquiry. California: Sage Publications. [9] Holt, D. D.(ed.) (1993). Cooperative Learning: A response to Linguistic and Cultural Diversity. McHenry, IL: Centre for Applied Linguistics. [10] Jacob, G. M., & C. C. Goh. 2007. Cooperative learning in the language classroom. Singapore: SEAMEO regional Language Centre. [11] Jacob, G. M., & McCafferty, S.G. 2006. Connections between cooperative learning and second language learning and teaching. In S.G. McCafferty, G. M. Jacobs, & C. D. [12] Iddings (Eds.), Cooperative learning and second language teaching (pp.18-29). Cambridge, England: Cambridge University Press. [13] Johnson, D.W., Johonson, R. T., 1994. An overview of cooperative learning. In Thousand, J., Willa, A., Nevin, A. (Eds.), Creativity and collaborative learning. Brook Press, Baltimore, pp. 1-20. [14] Johnson, D.W., Johson, R.T., Smith, K.A., 1998. Cooperative learning returns to college. Change 30(4), 26-35 [15] Liang, X. 2004. Cooperative learning as a sociocultural practice. The Canadian Modern Language Review. 60(5), 637-668 [16] Merriam, S. B. 1998. Qualitative research and case study application in education. San Francisco, CA: Jossey-Bass Inc. [17] Ministry of Education. 2007. National curriculum of college English teaching. Shanghai: Shanghai Foreign Language Education Press. (p27). [18] Ning, H. 2011. Adapting cooperative learning in tertiary ELT, ELT Journal 65(1), 60-70 [19] Slavin, R.E. 1982. Cooperative Learning: Students Teams. What Research Says to the Teacher: National Education Association, Washington, DC. [20] Sharan, Y., Sharan, S., 1999. Group investigation in the cooperative classroom. In Sharan, S. (Ed.), Handbook of Cooperative Learning Methods, 2nd ed. Greenwood, Westport, CT, pp. 97–114. [21] Tan, I. G, Sharan, S, Lee, C. K. 2006. Investigation and student Learning: an Experiment in Singapore Schools, Singapore: Marshall Cavendish Academic.

908

Appendix A : Student and teacher evaluation sheet Theme and logic

Fluency

Accuracy

Interaction

PPT

Cooperation

Group1 score Merits and shortcomings(or limitation of group1) Group 2 score

Merits and shortcomings of group 2 Group 3 score Merits and shortcomings of group 3 Group 4 score

Merits and shortcomings of group 4 Group 5 score

Merits and shortcomings of group 5 Appendix B: Guided questions for reflexive diary 1. 2. 3. 4. 5. 6. 7. 8.

What did you do in your group investigation? What were your findings in your investigation? What were the problems you had encountered in this activity? What did you learn from your group members? What did you learn from other groups? What were the problems found in other students that you would avoid in your future study? On which aspect may this activity help you in your course study? Why? How could this activity be improved or what are the limitations of this activity?

909

Total

I255 Digital images scaffolding the construction of disciplinary concepts Natasa Lackovic1,*, Charles Crook2 Learning Sciences Research Institute, University of Nottingham, Nottingham, UK E-mail address: psxnl1@nottingham.ac.uk

1

2

, Learning Sciences Research Institute, University of Nottingham, Nottingham, UK E-mail address: Charles.crook@nottingham.ac.uk

ABSTRACT Postgraduate students are expected to cultivate increasingly articulated understandings of the core concepts in their discipline. Often the pursuit of such a challenge is achieved through conversational exchanges. In these exchanges partners may explore the meaning of these core concepts through language alone. In this study we report a form of conversational exchange in which doctoral students are encouraged to explore conceptual understanding through the mediation of digital images. These images are recruited in parallel with conversation through the resources of an internet search engine. Our concern was with understanding how access to such a corpus of tagged images could scaffold the active exploration of conceptual knowledge. To this end, 18 doctoral students in the social sciences were invited to articulate the meanings of ‘empiricism’ as a representative core disciplinary concept in their field. This took place within informal exchanges carried out with access to a networked computer. The students’ understanding was explored conversationally. However, they were invited to search for images that resonated with their evolving representation of the concepts.in conversation. The trajectories taken in these explorations are characterized here in terms of a series of ‘maps’. Theset offer visual representations of the cognitive narratives pursued by these students. We argue that access to visual material serves as a potent resource for helping the students shape a semantic space that characterizes the core concept. This allows distinctive and personalized representations of such concepts and a strong sense of ownership. We also suggest that this form of visual mapping provides a valuable approach to the characterization of the cognitive construction of complex concepts. The argument reinforces the notion that learning depends on the use of specific tools designed to mediate it and the developing acts of communication with and around them (Säljö, 2010) which positions educators to seek for tools that would help students externalise their thoughts and organise their activities around and with them. This idea is rooted in socio-cultural theory of tool mediation. Finally, it is also suggested that a visually-structured scaffold of this kind would prove a significant general resource for the orchestration of small group discussion in less experienced (but advanced) students. A scenario will be sketched that suggests the form such a form of pedagogic practice might take. Keywords: Education, teaching, educational psychology, technology enhanced learning, conceptual understanding, visual scaffolding

REFERENCES Saljo, R (2011) Learning in a sociocultural perspective, in V. Grover Aukrust (Ed.) Cognition in Education, Oxfor, Elsevier

910

Learning and

I194 Islamic schools in Seljuk period Masoud Farshidnia *, Sosan Rahmanian ** * Education in Iran, Jahrom, ** Education in Iran, Jahrom

Email: Masoud_farshidnia@yahoo.com

Abstract The purpose of this paper is to discuss about establishing of Islamic schools in Seljuk dynasty and specify the role of Khaje Nezam al-molk , the minister of Seljuk government , in it. Seljuk period is one of the longest periods in the history of Islamic world in particular the eastern Islamic which has various features. This time is a period of extensive and long-term development and evolution of bureaucracy with deep historical roots in which its tradition has been linked with Muslim Iranian people .Since the time that Seljuk Turks converted to Islam , they accepted Islam as their intellectual support . On the other hand, Khaje Nezam al-molk had an active role in consolidation of this period and important impacts on establishing Islamic educational institutions. He wanted to set up Islamic schools in Sunni eastern world immediately and then aligned them with institutions in Spain”Omavi”and Egypt “Fatemi”.Khaje Nezam al-molk was seeking to advance his political objectives by creating a network of these schools associated to himself. One of the most important impacts of these schools was connection between religion and government. These schools were supposed to be used for training of people who were in charge of religion hierarchy or the court. Key words: Schools, Nezamieh (are a group of the medieval institutions of higher education established by Khaje Nezam al-molk in the eleventh century in Iran) Seljuk dynasty, Khaje Nezam al-molk , Sunni Muslim

Nizam al-Mulk motivated the establishment of schools (Nizamiyas) One major innovation was the Seljuks established the school. The Government will support schools It was trying to establish links with religious institutions. It seems that Nizam al- MULK desired to speed Up the provision of educational institutions within the castern Sunni world and to make them comparable with those still flourishing in Umayyad Spain and Fatimid Egype. There is some controversy about his exact motives in founding these madras, or colleges of higher learning, which were named Nizamiyas in his honour, Did he to create a network of these institutions personally dependent on himself, meaning to further his own political plants; or was his aim the more general one of raising intellectual standards throughout eastern, non-fatimid Islam, whit the madrasas fitting into a pattern of state-supported education( G.makdisi.1961,pp.1-56) the latter view is probably the more likely one in the context of contemporary events. The sunni madrasa-building movement had begun in the second half of the 4th/Roth century and was in full swing well before nezam al-mulk’s time, it was a response first to the challenge of mu’tazili thought, and subsequently to the fatimid institutions for training shi’Ie’is or propagandists; i.e. the azhar mosque of the fatimid general jauhar and the Caliph al-mu’izz (founded in 359/970), the Dar al-Hikma (“House of Learning”) of the Caliph al-Hakim (founded in 395/1005), and the various local dar al-dawas, or rallying-place and centres for propaganda.To implement Nizam al- Mulk’S administrative policies throughout the saljuq empire required the training of reliable personnel as secretaries and officials, and herein probably lies the key to his motives, moreover, not only was madrasa education free, as of course it was in other educational institutions, but generous living allowances were allotted to students at the Nizamiyyas(subki,1905,p.137).

Influence of religion in school (Nizamiyas) education Taj al-dinal-Subki, the 8th/14th centures to Nizam al-Mulk the foundation of a madrasa in every important city of Iraq and iran , he Specifically mentions nince of them : The once at Baghdad and Nisapur (the two most famous Nizamiyyas) , and those at Balkh, Herat, Marv, Amulin Gurgan, Isfahan, Basra, and Mosul. this prominence of khurasanian cities may not be fortuitous. 911

During the 5th/11th century sunni scholarship in khurasan was at its most brilliant. It had behind it a long tradition of political and culture orthodoxy, stretching back through the Ghaznavids and samanids to the Tahirids, whereas central and western iran were for a long time in the saljuq period still politically and religiously suspect because of their association with heterodox dailami dynasties. Nizam al-mulk regarded the appointment of sutiable scholars to tezch at his nizamiyyas as a personal responaibility. Hen the bagdad nizamiyya opened in 459/1067, he took considerable paint to secure for it the scholar Abu Ishaq al-shirazi, and later, in 484/1091, he brought the theologian and philosopher Abu Hamid al-Ghazali to lecture there when the latter was only thirty-three and little known outside his native khurasan. On malik-shah’s first visit to baghdad in 479-80/1081, after the conclusion of the campaign in northern syria, nizam al-mulk personally lectured on baditb or tradition at his madrasa and dictated to the student there- (ibn al-jauzi,1938,pp.36-55). The use of scholars from khurasan is bound up with another controversial aspect of nizam al-mulks’s educational policy; the dengree and to which he specifically hoped to further his own shafi’I law school and Ash’ari kalam. Many of the sources may have overemphasized the shafi’I and Ash’ari nature of the teaching at the nizamiyyas. Before the great vizier achived such power in the saljuq state, these doctrines were very suspect to men such as Toghril and his minister kunduri(Ibn khallikan ,1843,pp.297-8 ) and nizam al-mulk’s support for the doctrines did not guarantee their acceptance and recognition, especially outside khurasan. In baghdad and the western provinces they were anathema to conservative religious circle, Hanafi as well as Hanbali, who regarded them as alien, khurasanian imports. If the nizamiyyas were institutions for the propagation of shafi’ism and Ash’arism, they failed in Iraq and western Iran. Although the ‘Abbasid caliphs were shafi’is, the saljuq sultans themselves remained staunch Hanafis, and the fervent Hanafi Ravandi, who wrote his history of the saljuqs in the opening years of the 13th century, still couples togheter for denunciation the Rafidis (i.e. the extremist shi’is and Isma’ilis) and the Ash’aris. Imad al-Din stresses the violent Hanafi partisanship shown by several of sultan Masud b.muhammad’s ghulam amirs. Between the years 536/1141-2 and 542/1147-8 he speaks of the perscution and expulsion of shafi’I scholars by saljuq governors and commanders in baghdad, Ray, and Isfahan, where some shafi’is found it politic to change to Hanafism.( bundari,1889,pp.193-4 ) In baghdad the nizamiyya decline in the 6 th/12th century, and it was the Hanbali colleges which were intellectually the most vital in baghdad at this time. But perhaps the most significant piece of wvidence which we have against any undue partisanship by nizam al-mulk is his soothing pronouncement, as reported by the fiercely Hanbali Ibn al-Jauzi, when the Hanbalis of Baghdad were protesting against the public teaching of Ash’arism : The sultan’s policy and the dictates of justice require us not to incline to any one rite (madbbad) to the exclusion of others; we aim at strengthening orthodox belief and practice (al-sunan) rather than at fanning sectarian strife. We have built this madrasa (i.e. the nizamiyya) only for the protection of scholars and in the public interest, and not to cause controversy and dissension.( Ibn Al-jauzi ,1938 ,p.312 ) Nizam al-mulk was not by any means the sole person to busy himself with founding madrasas. Makdisi has drawn up an impressive list of the Hanafi, shafi’I, and Hanbali colleges which were flourishing in Baghdad at this time , and he has pointed out that the madrasa built around the shrine of the Imam Abu Hanif (this was built in 457-9/1065-7 under the authority of Alp-arslan’s mustaufi, sharaf al-mulk Abu sa’d Muhammad) was doubtless of equal importance to the Nizamiyya, though less publicized in the souces(Ibn al-Athir,1851,p.23). Nizam al-mulk’s example stimulated other leading figures to found educational institutions; in 480-2/1087-9 his own great enemy, the mustaufi Taj al-mulk Abu’l-Ghana’im, founded a shafi’I madrasa in Baghdad, the Tajiyya, where Abu Bakr al-shashi and Abu Hamid’s brothers Abu’l-futug al-Ghazali both taught( Ibn al-jauzi, 1938,pp. 38-46.)

Conclusion Limiting the educational system to a “school” type of system with provision of manpower for the government and religious institutions caused to these two institutions to link to each other and is not clear whether this education system could be successful in creating a new organization of the Court or not,. “School “education in its territory as far as its principle guidance was used, specified ideological distinction between religion and government and strengthened the trend toward outlining the government’s institution just from political view which specified by Abasian primary class teachers .”school “education with emphasis on format , style and ,on top of that ,the profit oriented 912

didn’t consider the principle ideological definition from a scientific prospective. Although the education system was not always successful in provision of qualified jury ,official relationship between religion and government and Seljuk interest to Sunni Islamic revival created opinionated governing class proportional to the religion and culture. Approving and encouragement by Seljuk’s school system has been done to the following reasons: 1Seljuks were in competition with Fatemion 2Seljuk were seeking support from clergymen to gain support of local residents. Seljuks were looking to create a bureaucracy to Islamic Sunni that contained new idea and principles court??

REFERENCES 1

- for these two views see the article of G.makdisi “Muslims institutions of learning in Eleventh-century Baghdad”, B.S.O.A.S. pp. 1-56; and A. L. tibawi, “Origin and character of al-madrasah”, B.S.O.A.S. pp.225-38 [2] Tibawi’s standpoint is nearer to that of the earlier, classic writers on the subject; see Goldziher, “Education-Muslim”, and Encyc. Of Religion and Ethics; and Pedersen, “masdjid”, Encyc. Of Islam (1st ) [3] 1 - subki, tabaqat al-shafi’iyya al-kubra, vol. ǀǀǀ , p.137, rightly refutes the assertion made in many sources, that the great vizier was the first person to build madrasas; but, says subki, he may have been the first to assign allowances to the students. However, even this is dubious. [4] - see his article on nizam al-mulk, op, cit. vol . ǀǀǀ, pp. 135-45 [5] 1 - ibn al-jauzi, al-muntazam, vol. ǀX, pp. 36, 55 ; ibn al-Athir, al-kamil, vol. X, p.104; subki, vol. ǀV, pp. 193-4; cf. W. Montgomery watt, Muslims intellectual, a study of al-Gbazali (Edinburgh, 1963), pp. 22-3. [6] - kunduri’s hatred for and persecution of the ash’aris are stressed in several of the sources, e.g. in Ibn khallikan, W afayat al-a’yan, vol. ǀǀǀ, pp.297-8. [7] 1 - bundari. Zubdat al-nusr, pp.193-4 – 220-ǀ; ravandi rahat al-sudur pp.30-2 . [8] 1 - Ibn Al-jauzi, vol, vǀǀǀ, p. 312. [9] 1 - B.S.O.A.S. (1961), pp. 17-44; Ibn al-Athir, vol. x, p. 23 . [10] 1 - al-kamil, vol. x, pp. 120,147: Ibn al-jauzi, pp. 38-46. [1]

Bibliography [1] Ibn Al-jauzi, al-muntazam fi tarikhe al-mlouk val’omam, Vol ǀǀǀ, Heydar Abad, 1938 . [2] Ibn al-Athir, al-kamil, vol. X, Leiden, 1851-76. [3] bundari. Zubdat al-nusr, ed M.T hotesm: Recueil de textes relatifs a I’Histoire des seljoucides, ǀǀ, leiden, 1889. [4] Ibn khallikan, W afayat al-a’yan, vol. ǀX, paris, 1843-70. [5] subki, tabaqat al-shafi’iyya al-kubra, vol. ǀǀǀ, ghahereh, 1905-6. [6] Tibawi, A. L. « origin and character of al-Madrasah.» B. S. O. A. S. , xol XXV, 1961 . [7] Makdisi, G « Muslim institutions of learning in eleventh-century Baghdad.» Bulletin of the school of Oriental and African studies, vol. XXIV. 1961. [8] Ravandi, Muhammad b. ‘Ali b. sulaiman, Rahat al-sudur wa ayat al-surur, ed. Muhammad Iqbal, leiden and London, 1921.

913

1

1

I179 The case of study of Khalaji language in Iran Marzieh Davari Master student, Islamic Azad University, Tehran North branch. Email: Marziyeh.davari@gmail.com

Abstract Khalaji Turkic languages or languages of the Altai and the only family member Argo Khalaji (Argoo) is a Turkish family. Argo ancient Turkish dialect is in fact more Khalaji. Khalajs came from Central Asia to the West and one of the first Turkish tribe who crossed the AmuDarya and went to western parts .they settled in Iran's central province and Ghaznain ofAfghanistan, and more. Historical clues indicate that the Khalajs are Turkish that likely Aryan race and a group of people who were Socas in Central Asia. Khalaj people are of Iranian culture. Khalaji now endangered languages and their place among the new generation has to Persian Khalaji. The new generation only in the comprehension of the language is familiar with and others do notuse this language in their among. According Atnoloog site, the number of 42 100 people in Iran are Khalaji language dialect. According to Professor Gerhard Doerfer most important feature is that many of the characteristics ofTurkish Khalaji in the ancient Turkish voices have been preserved. Also, Professor Doerfer with some common features Khalaji Turkish and Turkish to come to theconclusion that old Argo Khalajs are the children of central Iran. Khalaj tribe or clan that appears to leave the race in Western Turkestan Islamic pre‐Mughal period,and then lived in eastern Afghanistan. Muslim geographers on the third and fourth Centuries AH (ninth and tenth AD) Khalaj the tribes have left.Therefore Ibn Khordad beh, they left the steppes of Central Asia has a number of tribes. According to him, their winter homes is located in the area of sea in Talas the vicinity of Qrlqland. Key words: Khalaji, Argo, tribe

914

Law Pullman Bangkok King Power, 2F 2013/1/26 Saturday 10:00-12:00 B318 NPT’s Purpose: Nonproliferation or Exclusive Proliferation? Maziyar Shokrani ︱Xiamen University

Management Pullman Bangkok King Power, 2F 2013/1/27 Sunday 14:00-16:00 B126 Bidding, Bargaining and Royalty in Public-Private-Partnerships Chao-Chung Kang︱Providence University Tsun-siou Lee︱National Taiwan University Ssu-Chi Huang︱National Taiwan University

Psychology Pullman Bangkok King Power, 2F 2013/1/27 Sunday 10:00-12:00 B297 The Impact of Workplace Gossip on Employee Effectiveness: Insights from the Employment Relationship Perspective Chien-Chih Kuo︱National Chengchi University Chiu-Yi Lu︱Chung Yuan Christian University 915

B318 NPT’S PURPOSE: NONPROLIFERATION OR EXCLUSIVE PROLIFERATION? Maziyar Shokrani School of Law, Xiamen University, Xiamen, P. R. China E-mail: Maziyar.Shokrani@gmail.com

Abstract Right after devastating use of nuclear weapons in 1945, negotiations for putting limitations on proliferation and use of such weapons began among the superpowers which resulted in conclusion of several treaties and agreements on this field. The 1968 Treaty on the Non-Proliferation of Nuclear Weapons (NPT), is considered as cornerstone among the international instruments on non-proliferation and application of safeguards. The terms of this treaty mainly follow three purposes: nonproliferation, peaceful uses of nuclear energy and disarmament. In this paper the author will discuss how did the Powers enjoy the terms of the treaty to ensure that there will be no more horizontal proliferation and how did they ignore some other terms of treaty e.g. disarmament to maintain superiority over the world. Finally the author conclude that the only way to achieve a nuclear-weapon-free-world which is desired by NPT is to observe its terms fully and by all of the member states without discrimination as well as expanding the coverage of its enforcement to non-members by rule of international law. Key Words International Law, Nuclear Law, Non-Proliferation, Disarmament, Peaceful Uses, Nuclear Energy, Nuclear Weapons

Introduction The discovery of nuclear energy was milestone and it can bring numerous benefits to human life however, it can turn to nuclear weapon and wipe out the world at the same time. Since its discovery, the nuclear energy has been used primarily for arms purposes. The proliferation of nuclear weapons has been developed both horizontally and vertically. The idea for stopping the further proliferation began by US President’s “atom for peace” and continued by adopting several treaties and documents and establishment of International Atomic Energy Agency (IAEA). Today the treaty on the nonproliferation of nuclear weapons [1] (NPT) which is known as the chief among international instruments for nonproliferation requires that nuclear-weapon states not to help non-nuclear -weapon states acquire atomic weaponry and non-nuclear-weapon states not to pursue the acquisition or development of nuclear weapons. Furthermore it guarantees for all states the peaceful uses of nuclear energy and finally requires the nuclear-weapon states to take effective measures relating to the cessation of the nuclear arms race and to nuclear disarmament. However the purpose of the nuclear-weapon states for drafting and adopting NPT resulted in discriminatory mechanism, vagueness of the key articles and misinterpretation of the treaty to prevent further horizontal proliferation.

Development of Atomic Bombs The earliest warning about the vast destructive power of atomic bomb might be found in the enclosures of a letter to American President Franklin D. Roosevelt in 1939 when the physicists, Leo Szilard and Eugene Wigner warned the potential construction of "extremely powerful bombs of a new type" that was signed by Albert Einstein. This letter also demonstrated its concern and fear that the Nazi Germany works on uranium from Czechoslovakian mines which Germans already took over and apparently meant that they could construct atomic bomb first. After intensive scientific research through the socalled Manhattan Project, led by the United States with participation of the United Kingdom and Canada finally the first atomic bomb was produced and successfully tested during World War II. Later the incapability of the League of Nations in exercising its power to stop the war and taking action under the Covenant of the League of Nations due to the withdrawal of Japan, Germany and Italy and 916

then expulsion of the Soviet Union made the US using the atomic bomb against civilians in order to put an end to the World War II by dropping them on Hiroshima (August 6, 1945) and three days later on Nagasaki (August 9, 1945). This incident remains as the most controversial issue in the modern human’s history and international law which led to the killing 150,000 to 246,000 people. The use of atomic bombs on Japan received great support from American people. Public opinion tolls taken shortly after the use of the weapons indicated 80 percent support, 10 percent opposition. Roughly one-quarter of the American public regretted that the surrender came so soon that only two atomic bombs could be used on Japan [2]. Soon the Soviet Union started working on its bombs because it was satisfied that the United States was already building one. The Hiroshima bombing shocked the world in general and the Soviet Union in particular. Stalin said: “The balance has been broken. Build the bomb; it will remove the great danger from us” [3]. In August 1949 the Union Soviet and then in October 1952 the Great Britain conducted their first fission weapon tests and joined the nuclear club of three States. After Britain tested its first nuclear bomb on October 3, 1952 (Hurricane) in Western Australia, less than one month later the United States tested Ivy Mike on November 1, 1952 in the Pacific Ocean and then Castle Bravo on March 1, 1954 at Marshall Islands. The Soviet Union tested the first fusion weapon on August 12, 1953 (Joe 4) in Kazakhstan and then the first staged thermonuclear weapon on November 22nd 1955 (RDS-1) again in Kazakhstan. It was the last tests undergone before the establishment of the IAEA. So far most of the tests were conducted outside the main lands of the operators. The tests raised not only security questions but also a range of environmental issues. The globalization of the Cold War in 1950s and the East-West ideological conflict were reasons for superpowers to continue their proliferation programs. Some incidents like the “hot war” in Korea, membership of the Federal Republic of Germany in NATO, establishment of “Warsaw Pact” were clear signs of the Cold War which lead to the expansion of superpower nuclear arms race in 1950s. After successful development of the Soviet Union atomic bomb and breaking the monopoly of the United States over nuclear arms, Americans launched their “massive retaliation” policy. The term “massive retaliation” was coined by U.S. secretary of State John Foster Dulles in a speech on January 12, 1954. He mentioned: Needs allies and collective security. Our purpose is to make these relations more effective, less costly. This can be done by placing more reliance on deterrent power and less dependence on local defensive power [4]. The main consequence of this policy was implementation of huge American nuclear weapons proliferation and development of lightweight nuclear warheads and acquiring of intercontinental ballistic missiles. On the other side, the Soviet Union, under Khrushchev leadership, was concerned with the American nuclear proliferation and new technological achievements. Khrushchev viewed the massive retaliation as a great nuclear threat to Soviet Union. As a consequence they developed a nuclear arsenal of 400 atomic and thermonuclear weapons. The acquisition of nuclear weapon capability by France and China was increased to five states by 1964. The superpowers continued proliferation of nuclear weapons from 1963 to 1975 where the nuclear arms race evolved without control and this process continued up to the end of the cold war.

Evolution of the Nuclear Nonproliferation In January 1946, the United Nations General Assembly established the UN Atomic Energy Commission (UNAEC) by passing a resolution [5]. The target of the UNAEC was to make proposals for the elimination of nuclear weapons and the use of nuclear energy for peaceful purposes under international control. Further, General Assembly Resolution 41 entitled the ‘Great Charter of Disarmament’ recognized in Article 11 of the Charter both the necessity of an early general regulation and reduction of armaments and armed forces. The role of Security Council in relation to disarmament was not denied: “In pursuance of Article 11 of the Charter and with a view to strengthening international peace and security in conformity with the Purposes and Principles of the United Nations… The General Assembly recommends that the Security Council gives prompt consideration to formulating the practical measures, according to their priority, which are essential to provide for the general regulation and reduction of armament and armed forces will be generally observed by all participants and not unilaterally by only some of the participants…” [6]. Shortly after establishment of the UNAEC, on 14 June 1946 the United States submitted the so-called “Baruch Plan” to meet the purposes of UNAEC. The fact behind Baruch Plan was that in postwar years Americans were trying to keep their monopoly over atomic bombs. The Baruch Plan would have given the agency under jurisdiction of UNSC a monopoly to research about the ways to make nuclear 917

explosive and power, free of veto and backed up by military force if necessary, to conduct inspections in other countries to make sure they were not making nuclear weapons. The United States, however, would not surrender its weapons to the agency until inspectors were on duty in the Soviet Union and in other countries with nuclear potential. The Soviet Union rejected this approach [7]. In fact the Soviet Union was already developing its own nuclear arms program. With acceptance of the Soviet Union, the United States could turn over all its enriched uranium and its atomic weapons to the United Nations. The lesson from Baruch Plan is that cooperation between the States is necessary for concluding agreements on non-proliferation and disarmament. Although we can never be assured that dream of a world without nuclear weapons could come true if the Soviet Union would accept the plan and cooperate with the United States however, at least there could be the earlier efforts to build a non-proliferation regime. Furthermore the law making mechanism of international law could prevent a larger number of States to build or become capable of building nuclear bomb. After the bombing of Hiroshima and the undergone nuclear tests by United States, Soviet Union and Great Britain, the balance of power in the world entered a new phase. The devastating and strategic power of atomic bombs were now clear to all of the States and raised concerns to those countries who realized the necessity of developing bombs either for defensive or preventive reasons. The most important helpful element for them was that there still was no express prohibition by international law to build and use a bomb. At this stage where the world concerns were about military use of atomic energy, Americans proposed their new plans for the forgotten side of this energy. “Atoms for peace” was the title of speech made by U.S. President Dwight D. Eisenhower to the U.N. General Assembly on December 8, 1953. In this speech President Eisenhower informed the UN General Assembly that he will submit to American Congress, with every expectations of approval, any such plan that mainly would encourage world-wide investigation into the most effective peace time uses of fissionable material and diminish the potential destructive power of the world's atomic stockpiles [8]. The language used in this speech was a quite promising and comforting to a world which was terrified by horror of atomic bombings of Hiroshima and Nagasaki and the arms race between the two super powers. It was obvious that the main purpose of the speech was not to give any hope to non-nuclear and non-developed countries to have access to nuclear energy, but was to break the cold relations with the Soviet Union and offer a proposal to open cooperation and harmonization in the field of nuclear activities both peaceful and non-peaceful. Fifty years after the speech, President Eisenhower’s granddaughter, Susan Eisenhower mentions: The “Atoms for Peace” speech had a number of objectives, but its over arching goal was to propose a set of ideas, a number of strategy, which would call on the soviets in discussions on nuclear matters at a time when arms control talks had stalled [9]. Although the speech was beginning of negotiations that several years later led to establishment of the IAEA, the Soviet Union criticized it that states possessing nuclear weapons should stop proliferation and not wait for a global agreement: The Soviet Union consistently struggles for the ban of atomic weapon and at the same time for a considerable reduction in all other types of armaments [10]. The Soviet Union in his Note on Eisenhower proposal made the counter-proposal which can be considered the first proposal in the history of non-proliferation which seeks a complete nuclear disarmament which of course such goal is yet to be achieved. The counter proposal reads: The achieving of an international agreement on this question could be an important step on the road to the complete withdrawal from armaments of states of all atomic, hydrogen, and other weapons of mass extermination together with the establishment of a strictly international control which would insure the fulfillment of the agreement on the ban of the use of atomic energy for military ends. [10, p.54]. During this period, the main achievements of the nations were establishments of Nuclear Weapon-Free Zones (NWFZ). The UN General Assembly resolution 3472 B (1975) defines an NWFZ as: “…any zone recognized as such by the General Assembly of the United Nations, which any group of States, in the free exercises of their sovereignty, has established by virtue of a treaty or convention whereby: (a) The statute of total absence of nuclear weapons, to which the zone shall be subject, including the procedure for the delimitation of the zone, is defined; An international system of verification and control is established to guarantee compliance with the obligations deriving from that statute [11].

918

According to the above definition, States establishes such zones in the free exercise of their sovereignty which means they voluntarily give up their right to develop nuclear weapon programs on a regional basis. It could be a great and appreciable contribution to peace and security of firstly, a region and secondly, the globe. But still these treaties were unable to remove the danger of nuclear of nuclear weapons from the world. It seems the purpose of such treaties were to limit number of nuclear weapon states which resulted in strengthening monopoly over nuclear weapons. From 1963 to mid 1970s (so called as Disarmament Decades) United Nations made a number of proposals with purpose of general and complete disarmament however, the unlawfulness of using nuclear weapons was never included in any multilateral treaty. The fact is that by the period except Soviet Union, no other state in the nuclear arms club was interested in a ban on producing and using nuclear weapons. The Soviet Union submitted a draft convention to the United Nations in 1967 under which the parties would agree to refrain from using or threatening to use nuclear weapons. In the same year the General Assembly adopted the Soviet Union draft in resolution 2289 [12] however the Western powers rejected the Soviet draft convention. In fact Soviet Union introduced to the world the chance to eliminate nuclear weapons the fear of using the bomb. This was the lost chance that will never come back for decades.

Negotiating the NPT From the beginning of the nuclear age and detonating the first nuclear bomb, the risk and fear of several additional countries acquiring nuclear weapon were present. Several States from the most volatile areas showed their ambitions to develop nuclear arms programs. It’s clear that it could have disastrous consequences if they extend their possibly acquired nuclear weapons in to the regional hostilities. It was assumed that there are two possible ways for acquiring nuclear weapons: (i) building nuclear weapons through an indigenous research program and, (ii) transfer of nuclear weapons from those countries which already acquired nuclear weapons to those who did not yet developed the nuclear weapon or were not capable of doing so. To prohibit these two ways of acquiring nuclear weapons for those countries who had not yet built at least a nuclear bomb, made the main idea and foundations of drafting the NPT. During late 1950s Ireland introduced resolutions in the General Assembly supporting a ban on international transfer of nuclear weapons. In 1961, a similar resolution was passed by General Assembly [13]. The distinction between nuclear weapon states and non-nuclear weapon states were appeared in these resolutions expressly. At the same day the General Assembly made another resolution [14] called upon all States and in particular upon the States at present possessing nuclear weapons, to use their best endeavors to secure the conclusion of an international agreement containing provisions under which the nuclear States would undertake to refrain from relinquishing control of nuclear weapons and from transmitting the information necessary for their manufacture to States not possessing such weapons, and provisions under which States not possessing nuclear weapons would undertake not to manufacture or otherwise acquire control of such weapons. The resolutions clearly show that the negotiators of a non-proliferation treaty never desired a complete nuclear disarmament and just at max could go for giving up further proliferation and increasing number of nuclear weapons by those who possessed it at the time. Although finally a complete and gradual disarmament clause was finally included in NPT, however that clause was never observed seriously. Right after China had its first explosion in 1965, and following to the vote of United Nations Commission [15], negotiations for a treaty on non-proliferation of nuclear weapons began. The Eighteen Nation Disarmament Committee (ENDC), which was an autonomous body outside the United Nations, devoted its major efforts to negotiate the NPT. The ENDC was made up of eight states from non-aligned movement, five states from Eastern bloc and five states from Western bloc including Brazil, Burma, Ethiopia, India, Mexico, Nigeria, Sweden, the United Arab Republic, the Soviet Union, Czechoslovakia, Poland, Romania, Bulgaria the United States, the United Kingdom, Canada, France, Italy which was a political composition of the United Nations in 1960s. 919

In the period that the ENDC was negotiating the terms of a nonproliferation treaty, eight countries formed a group what was known as the “group of eight” was including Brazil, Burma, Ethiopia, India, Mexico, Nigeria, Sweden and the United Arab Republic on the Committee sharing common views on disarmament issues. This group issued a series of Joint Memoranda describing such views in some detail. One such memorandum, dated 15 September 1965, stated that a “treaty on non-proliferation of nuclear weapons is not an end in itself but only a means to an end”—namely, the achievement of nuclear disarmament. Throughout these years, India’s representative in the ENDC argued that a true non-proliferation treaty must cover both the improvement or expansion of existing arsenals (that is, vertical proliferation) and the spread of such weapons to additional states. This view was actively supported by the other members of the group of eight [16]. On November 23, 1965, the General Assembly adopted resolution 2028 (XX) [17] on the basis of the Eight-States joint memorandum which included a call for the conclusion of a treaty on nuclear nonproliferation and asked the ENDC to assume and carry out this legal task. The General Assembly noted in the resolution with satisfaction the efforts of the eight-nation memorandum to achieve the solution of the problem of non-proliferation of nuclear weapons, as contained in their joint memorandum of 15 September 1965. The General Assembly urged all states to take all steps necessary for the early conclusion of a treaty to prevent the proliferation of nuclear weapons and called upon the ENDC to give urgent consideration to the question of nonproliferation of nuclear weapons and, to that end, to reconvene as early as possible with a view to negotiating an international treaty to prevent the proliferation of nuclear weapons, based on the following main principles: (a) The Treaty should be void of any loop-holes which might permit nuclear or non-nuclear Powers to proliferate, directly or indirectly, nuclear weapons in any form; (b) The treaty should embody an acceptable balance of mutual responsibilities and obligations of the nuclear and non-nuclear Powers; (c) The treaty should be a step towards the achievement of general and complete disarmament and, more particularly, nuclear disarmament; (d) There should be acceptable and workable provisions to ensure the effectiveness of the treaty; (e) Nothing in the treaty should adversely affect the right of any group of States to conclude regional treaties in order to ensure the total absence of nuclear weapons in their respective territories; The above principles which were considered as the fundamental legal objectives of the treaty were all ignored in drafting the desired treaty on nonproliferation of nuclear weapons. The NPT finally lacked effectiveness to achieve a general and complete nuclear disarmament. It had loop-holes to allow some non-nuclear weapon states to undergo clandestine nuclear arms programs. Finally NPT could not maintain the balance of mutual responsibilities and obligations since it divided the member states into two categories with totally different obligations.

Adoption of Discriminative NPT The draft treaty was finally submitted to the General Assembly on March 1, 1968. The draft was adopted by General Assembly on June 12, 1968 by a 95-4 vote with 21 abstentions. The NPT was opened to signature on July 1, 1978 and entered into force on March 5, 1970. NPT’s articles I and II divide member states into two categories of Nuclear Weapon States (NWS) and Non-Nuclear Weapon States (NNWS). They read as: “Each nuclear-weapon State Party to the Treaty undertakes not to transfer to any recipient whatsoever nuclear weapons or other nuclear explosive devices or control over such weapons or explosive devices directly, or indirectly; and not in any way to assist, encourage, or induce any non-nuclear-weapon State to manufacture or otherwise acquire nuclear weapons or other nuclear explosive devices, or control over such weapons or explosive devices” and, “Each non-nuclear-weapon State Party to the Treaty undertakes not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly; not to manufacture or otherwise acquire nuclear weapons or other nuclear explosive devices; and not to seek or receive any assistance in the manufacture of nuclear weapons or other nuclear explosive devices.”

920

According to Articles I and II, different sets of obligations are undertaken by both NWS and NNWS where the discriminatory character of the NPT becomes clear. Receiving nuclear weapons or other explosive devices and manufacturing or otherwise acquiring such weapons or devices or seeking assistance to manufacture such devices is only prohibited to NNWS. Briefly speaking, according to Article I and II: 1- Nuclear Weapon States are bound NOT to help non-nuclear weapon states acquire atomic weaponry and; 2- Non-nuclear weapon states agree NOT to pursue the acquisition or development of nuclear weapons. For the definition of a nuclear-weapon State, Article IX provides: “This Treaty shall enter into force after its ratification by the States, the Governments of which are designated Depositaries of the Treaty, and forty other States signatory to this Treaty and the deposit of their instruments of ratification. For the purposes of this Treaty, a nuclear-weapon State is one which has manufactured and exploded a nuclear weapon or other nuclear explosive device prior to January 1, 1967” By categorizing the states into nuclear and non-nuclear, Article IX legitimizes the de facto status of those states which acquired nuclear weapons before January 1, 1967. Such kind of “legal discrimination” imposed by NPT against those countries which did not acquired nuclear weapons before that date raised a number of issues. It may give the impression to non-nuclear weapon states that main reason that NPT was drafted was not really banning the spread of nuclear weapons or disarmament but to legitimize the nuclear hegemony and monopoly of few countries while prohibiting other states to acquire nuclear weapons. The demand of the non-nuclear weapon states to establish an effective direct and conditional legal link between their obligation to renounce the acquisition of nuclear weapon capabilities themselves, and the commitment of the nuclear weapon states to cease their nuclear arms race and achieve their nuclear disarmament, do not seem to have been legally recognized by the NPT. Indeed, the NPT fails to create balanced legal obligation between these two categories of states. The treaty fails to embody an acceptable balance of mutual responsibilities and obligations between the nuclear and non-nuclear-weapon states in relation to the ultimate goal of the nuclear disarmament of the nuclear powers and the preservation of the non-nuclear status of the non-nuclear weapon states, on the basis of their legal obligations under Article II as compared to the obligations of the nuclear powers under Article IV, are at a legal disadvantage [18]. The nuclear-weapon states did their job well. Articles I and II were exactly what they needed to keep their own proliferation and stop the horizontal proliferation. It was their dream since the beginning of the nuclear arms age. But for non-nuclear-weapon states, the situation was quite different. The terms of the treaty were far away from their expectations. The treaty was supposed to be an instrument towards the immediate and general and complete disarmament. Even the treaty did not meet the security assurances. There was no obligation for nuclear weapon states to guarantee defending the non-nuclear weapon states against a potential nuclear attack and also there was no obligation not to attack the member states by nuclear weapons. Indeed later the world observed that the United Sates threatened a member state to use nuclear weapons against it. President Obama said in his declaration in April 2010: “The United Sates will pledge not to use nuclear weapons against most non-nuclear countries –no matter what they use against us- but keep all options on the table for nations like North Korea and Iran”. Although the NPT strictly prohibits the horizontal proliferation, still some hopes were there for vertical nonproliferation. Article VI provides that: “Each of the Parties to the Treaty undertakes to pursue negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and to nuclear disarmament, and on a Treaty on general and complete disarmament under strict and effective international control”. The terms of this Article are not on the basis of an immediate action but rather provide a gradual process without a timeline. As of today (more than forty years after entry into force of the NPT) still no serious action is made towards general and complete disarmament and so far the efforts to adopt a universal treaty to ban testing and use of nuclear weapons were all failed.

921

Conclusions Since the development and military use of nuclear weapons, the destructive power of such weapons which can destroy the physical integrity of our planet are witnessed by all. Most of the plans and proposals on non-proliferation of nuclear weapons were failed due to lack of cooperation and mutual understanding among the powers. NPT as the main document on nonproliferation of nuclear weapons failed to stop spread of such weapons both horizontally and vertically and so far there is in neither customary nor conventional international law any comprehensive and universal prohibition of the threat or use of nuclear weapons [19]. Therefore not only nuclear weapon states will not have any benefit or obligation in giving up their nuclear ambitions but also more countries will be encouraged to join the nuclear arms club and become a de facto nuclear weapon state for either defensive or preventive purposes. As the primary step, In order to prevent further proliferation, the terms of NPT’s article VI shall be implemented towards a universal and complete disarmament. Negotiations to draft and adopt a comprehensive treaty on banning possess, any kind of test, use and threat to use of nuclear weapons should be launched in an effective way by using all of the political and legal capacities. Perhaps it’s not that late.

References [1] INFCIRC/140, IAEA, Vienna (1970) [2] Bernstein, Barton, Why the USD Dropped Atomic Bombs on Japanese Cities, Towards A Nuclear-Weapon-Free-World, Proceedings of the Forty-Fifth Pugwash Conference on Science and World Affairs, World Scientific, Singapore, New Jersey, London, Hong Kong, 1995, pp. 190-195. [3] Lewis Gaddis, John, We Know Now: Rethinking Cold Was History, Oxford, 1997, p.96. [4] Foster Dulles, John, The Evolution of Foreign Policy, Department of State, Press Release No. 81, 1954. [5] A/RES/1(I), 24 January 1946, entitled “Establishment of a Commission to Deal with the Problems” [6] A/PV.63, 14 December 1946, entitled “Principles governing the general regulation and reduction of armaments”. [7] Bunn, George, the Nuclear Nonproliferation Treaty, History and Current Problems, Arms Control Today, December 2003. [8] President Eisenhower’s “Atoms for Peace” Speech, December 8, 1953, Before the General Assembly of the United Nations on Peaceful Uses of Atomic Energy. [9] Eisenhower, Susan, Atoms for Peace Plus 50, IAEA Bulletin, 45/2, 2003 [10] Bulletin of the Atomic scientists, Feb 1945, Vol. 10 Issue 2, p.46. [11] A/PV.2437 11 Dec. 1975 82-10-36 [12] A/RES/2289(XXII) A/PV.1623 07 Dec. 1967 [13] A/RES/1664(XVI) A/PV.1070 04 Dec. 1961 [14] A/RES/1665(XVI) A/PV.1070 04 Dec. 1961 [15] Resolution DC/225, adopted by the U.N. Disarmament Commission on June 15, 1965 [16] Dutarte, Sergio, Towards a World Free of Nuclear weapons, Conference Commemorating 20th Anniversary of the Rajiv Gandhi Action Plan, Delhi, India, 2008 [17] A/PV.1382, 19 Nov. 1965 93-0-5 [18] Athanasopulos, Haralambos, Nuclear Disarmament in International Law, McFarland & Company, Inc., Publishers, Jefferson, North California, and London, 2000, p.48 [19] ICJ, Nuclear Weapon case, Advisory Opinion, ICJ Reports 1996, p.226, Legality of the threat or use of nuclear weapons was an advisory opinion delivered by the International Court of Justice (ICJ) accordingly the ICJ stated that: There is in neither customary nor conventional international law any specific authorization of the treat or use of nuclear weapons; There is in neither customary nor conventional international law any comprehensive and universal prohibition of the threat or use of nuclear weapons as such;

922

B126 Bidding, Bargaining and Royalty in Public-Private-Partnerships Chao-Chung Kanga, Tsun-siou Leeb, Ssu-Chi Huangc a Department of Business Administration and Graduate Institute of Management, Providence University. 200, Chung-Chi, Rd., Shalu, Taichung 433, Taiwan Fax: +886-4-26328001, Ext. 13312, E-Mail: cckang@.pu.edu.tw b Department of Finance, National Taiwan University. Tel: +886-2-23630231 ext 2963. E-mail: tsunsiou@mba.ntu.edu.tw. c Ph, D. Department of Finance, National Taiwan University. E-mail: d95723003@ntu.edu.tw.

Abstract This study presents a transformed three-stage first-price sealed-bid auction with independent private values, including a bidding phase and a bargaining phase, to determine equilibrium royalties and subsidies in Public-Private-Partnerships. The model implies that royalty is influenced by the true values bidders assign to a target project and the payoff received by a government from taking up its outside options instead of the bargaining power of the government. In addition, the payoff received by the government from taking up its outside options is vulnerable to collusion. A real case is also detailed to illustrate how the presented model is applied in the real world. Keywords: Public-Private-Partnerships, Royalty, Subsidy, Bidding, Bargaining

1.

Introduction

Private sector is introduced to numerous infrastructure development projects worldwide to relax public sector’s financial constraints and to enhance efficiency (Finnerty, 1996). Such cases include the Eurotunnel project, the Euro Disneyland in France, the High-Speed Rail BOT project and the Taipei Port Container Logistic BOT project in Taiwan (Public Construction Commission, 2001), the north–south highway in Malaysia, and the Tribasa Toll Road project in Mexico (Walker and Smith, 1996; Finnerty, 1996). In literature, Tang et al. (2010) pointed out that financing, risks, and relationships are the three mainstream research issues in Public-Private-Partnerships (PPP) area. Financial viability is a critical factor for the success of a franchised infrastructure project (Chen et al., 2002; Chiou and Lan, 2006; Finnerty, 1996). Allowing franchisees earning excessive premium may cause social controversy since the property right of the franchised projects belong to public sector originally; on the other hand, bailouts are necessary once franchisees go bankrupt for that suspending services causes the tremendous loss in finance or economic benefit of society. Therefore, the government expects to collect royalties from the concessionaires with excessive profit gained from ‘‘public goods’’; on the other hand, it would subsidize the concessionaires with deficits to improve the financial viability of the franchised projects. Royalties and subsidies thus play a significant role in the financial viability of franchised projects. However, the authorities seem to have various myths about how to decide the optimal amounts of royalties and subsidies. One common myth is that they can effectively make a one-sided decision on the amounts of royalties and subsidies (Chiou and Lan, 2006; Kang, Feng, and Huang, 2003, 2007). Another one is that, even negotiation is considered, some tactics could help the authorities with bargaining for more royalty (Kang, Feng, and Kuo, 2012). In order to clarify these myths, this study presents a theoretical model to explain how royalties and subsidies are determined under a present allocation procedure. While the allocation procedure varies in various projects, the one presented in this study is typical and popular. The presented model is a transformed three-stage first-price sealed-bid auction with independent private values, involving a bidding game in the first stage and a bargaining subgame in the second stage. 923

In literature, Engel, Fischer, and Galetovic (2003) criticized that the BOT contract is an imperfect and incomplete privatization approach because that the franchise holder will shift the losses of operation to tax payers using the concession contract renegotiation or the minimum income guarantee method. To avoid the mentioned above flaw, they pointed that the BOT franchises should be awarded through the Present-Value-Revenue auction (PVRA) rather than the fixed-term franchise auction. They also proposed the relationship between PVRA and subsidy scheme for franchise holder. However, their model and analysis framework do not cover the interactive behavior like bargaining. Unlike Engel, Fiscal, and Galetovic (2003), this study contributes to the literature for that it considers not only bidding but also bargaining behavior in franchising approach. Some implications derived from our model can offer suggestions for the authorities and policy makers to facilitate PPP contracting. First, royalty is influenced by the true values bidders assign to the target project and the payoff received by the government from taking up its outside options instead of the bargaining power of the government. So the way the government raise royalty is to increase its payoff from outside options; to alter its bargaining power is helpless, such as introducing a short list of multiple applicants into bargaining. How to increase its payoff from outside options is a further issue for the government. To restructure the organization or to redesign compensation scheme may be helpful to improve public administration efficiency and, therefore, the profitability of state-owned-enterprises. Next, the payoff received by the government from outside options is vulnerable to collusion, especially when the few qualified contractors and project promoters control the critical technique of the target infrastructure. If they form a cartel to prevent the government from accessing to the critical technique, the government will face limited options to build and execute the infrastructure project by itself, resulting in its lowered payoff from outside options and distorted royalties and subsidies further. This implication differentiates this study from literatures on collusion in tenders for infrastructure projects or government procurement (Anandalingam, 1987; Hendricks and Porter, 1989; Weber, 1997; Cramton and Schwartz, 2000; Grimm and Wolfstetter, 2003; Timothy, 2004) and literatures on bidding rings in common auction forms (Robinson, 1985; Krishna, 2002; Graham and Marshall, 1987; Mailath and Zemsky, 1991; McAfee and McMillan, 1992) since none of those studies considered the possibility of distorted payoff received by the government from outside options. A real case is also detailed to illustrate how the presented model has practical applications to explain how reported signals and royalties are determined in different cases and to detect potential collusion in real world. The sensitivity analysis indicates that the bargaining power of the government has influence on the signal rather than the royalty; furthermore, the stronger the bargaining power of the government, the less the reported signal. In addition, the payoff of the government from taking up its outside options matters in a collusive tender, while it might be insignificant in a competitive tender. The rest of this study is organized as follows. Section 2 presents the model of a three-stage game. Section 3 describes the effects of collusion on royalties and subsidies. Subsequently, Section 4 details a case study. Finally, Section 5 presents conclusions.

2.

The Model

A government privatizes an infrastructure project according to the following procedure. A government initiates a privatized infrastructure project and calls for bidders. It declares that the bidder whose plan is most profitable or the bidder who requires the least financial aids from government is going to be granted the concession. Bidders then submit their investment programs and detailed business plans related to the target project. The government selects a concessionaire from the cases submitted in the tender; then, it bargains with the concessionaire for royalties if the concessionaire’s business plan implies profitability. The concession contract is signed after they reach an agreement in the two-sided negotiation. On the other hand, the government commits to compensate the concessionaire without negotiation if the concessionaire’s business plan implies loss. These business plans submitted by the bidders are unique, which differ in the scope of business, service type, service level etc., and even infrastructure technology. These unique business plans endow the target project with an independent private-value property since different business plans introduce different target project values to bidders and a bidder’s true estimation of cash flows corresponding to her plan is unknown to the government in advance. 924

Under this procedure, a three-stage game is proposed, which is a transformed three-stage first-price sealed-bid auction with independent private values, involving a bidding game in the first stage and a bargaining subgame in the second stage. During Stage 1, a single target project is auctioned to N potential bidders. The bidders report their signals regarding the present values of the estimated future cash flows of the target project as their messages (bids). The auction rules require that the bidder with the highest signal wins the bidding game and becomes the concessionaire2. Also, the auction rules3 require the government and concessionaire to bargain in the next stage for royalty (the payment) according to the signal reported by the concessionaire if the signal implies project profitability. In contrast, the government should commit to offer sufficient loss subsidy if the signal implies project loss; consequently, the bargaining stage is skipped. Payoffs are realized in Stage 3. Time t 1 Bidding

2 Bargaining

3 Payoff realized

Fig. 1 Timing of the game

The players, government and bidders, are assumed to be risk neutral, and time cost is normalized to zero. The game is then solved by backward induction. 2.1 The Bargaining If and only if the signal reported by the winning bidder (the concessionaire) in the first-stage game (the bidding game) is positive, the winning bidder and government will enter into the second-stage subgame—the bargaining subgame. Thus, Section 2.1 only considers a scenario of a positive signal reported by the winning bidder. During Stage 2, following the auction rules, the government and concessionaire bargain for royalty according to the signal given by the concessionaire regarding the estimated cash flows of the target project. The bargaining is thus regarded as a complete information game since both players recognize the signal given by the concessionaire as the size of the target object being bargained for4. This study modifies the bilateral alternating-offers model of Rubinstein with outside options (Rubinstein, 1982; Binmore, 1985; Muthoo, 1999) to describe the bargaining subgame. Two players, the government and concessionaire, bargain over the partitioning of the premium of size X, where X>0. Notably, X represents the signal reported by the concessionaire in the first-stage game (the bidding game) but the subscript is omitted in Section 2.1. The objective of the government during the bargaining stage is assumed to be maximizing its share of the premium. Meanwhile, the concessionaire seeks to minimize the share of the premium taken by the government. The infinite horizon bilateral alternating-offers model of Rubinstein requires the discount rates of the two players during the bargaining stage to reflect their bargaining costs. Let rg and rp denote the discount rates of the government and concessionaire respectively during the bargaining stage. Moreover,  g and  p denote the discount factors of the government and concessionaire respectively during the bargaining stage, that is,  p  exp( rp ) , 0<  p 0. When one of the players quits bargaining, the government has outside options including nullifying the tender invitation and executing the infrastructure project by itself. When the government takes up its

2 If there is more than one bidder reporting the highest signal, the concession is assumed to go to the winning bidders with equal probability. 3 The reasons behinds these auction rules will be discussed in Section 2.2, Footnote 4, and Section 2.4. 4 The true value of the concessionaire is revealed after the bidding game closes; therefore, there is indeed no information asymmetry between the two players while bargaining.

925

outside options, it obtains a payoff of W g , where Wg  X . In contrast, the concessionaire has no outside option. Furthermore, the payoff received by each player from outside options is assumed to be common knowledge. In addition, the impasse point of the bilateral alternating-offers model of Rubinstein (g , p )  (0,0) , which is defined as the payoff pair obtained by the players if each player always neither accepts any offer made to her nor quits after receiving any counteroffer. Let Rin (i=g, p) denote the offer that player i makes at time n , where n  0,1,2, . An offer is the share of the premium to the proposer, and X minus the offer is therefore the share to the responder. That is, if an agreement is reached on Rin at time n , player i’s payoff is  in Rin , and player j’s (j ≠ i) payoff is  nj ( X  Rin ) . Proposition 1 states the equilibrium of the bargaining subgame following a competitive bidding game. Proposition 1. The unique subgame perfect Nash equilibrium (SPNE) of the bargaining model with outside options and discounting is as follows. (i) The government always offers R g *0 . Furthermore, the government always accepts counteroffer R p if and only if R p  R*p0 ; meanwhile, the government always quits after receiving counteroffer

R p  R*p0 if and only if  g Rg*0  Wg . (ii)

The concessionaire always offers R p *0 . The concessionaire always accepts counteroffer R g if

and only if Rg  Rg*0 . Where

 g X Rg*0    p Wg  (1   p )  X

if Wg   g   g  X if Wg   g   g  X ,

p  X

R*p0    X  Wg

(1)

if Wg   g   g  X if Wg   g   g  X

, with  g  (1   p ) /(1   g  p ) and  p  (1   g ) /(1   g  p ) .

( 2 )

In the limit, as the time intervals between offer and counteroffer approach zero, Corollary 1 can be obtained by observing Proposition 1 directly. Corollary 1. In the limit, as   0 , the unique SPNE of the government R g *1 converges to

 g  X Rg*1   Wg

if Wg   g  X if Wg   g  X

. ( 3 ) *1 where  g  rp /(rg  rp ) . Meanwhile, the unique SPNE of the concessionaire R p converges to X  Rg *1 .

Proposition 1 states the equilibrium bargaining strategies of the two players in the bargaining subgame. Furthermore, in the limit, as the time intervals between offer and counteroffer in the bargaining subgame approach zero, the equilibrium bargaining strategies in Proposition 1 approach to those in Corollary 1. Corollary 1 shows that, in equilibrium, the government always offers R g *1 , and the concessionaire always offers R p *1 . As a result, the agreement is reached at time 0 no matter who *1

makes the first offer, and the concessionaire will submit a royalty R g

to the government as her

payment if she has won the bidding game during stage 1 with a positive signal. According to Equation (3), the most significant features of the bilateral alternating-offers model of Rubinstein with outside options are: (1) royalty is critically influenced by the government’s bargaining 926

power and the payoff received by the government from outside options; and (2) royalty must be at least as large as the payoff received by the government from outside options. In the equilibrium of the bilateral alternating-offers model of Rubinstein with outside options, the agreement is reached at time 0, and the outcome is Pareto efficient. This seems surreal since negotiations take time in most real cases. One should keep in mind that the model of Rubinstein is only proper for the highly simplified game composed of a transformed auction with a single-issue bargaining game of complete information in this study. In most real cases, negotiations are multiple-issue games of incomplete information since the bidding strategies are multi-dimensional and there are so many contract terms needed to be negotiated. Such bargaining games involve considerations of agenda and information asymmetries; therefore, the equilibrium outcome would be inefficient in practice. 2.2 The Bidding Foreseeing the equilibrium of the second-stage subgame, we can turn back to solve the first-stage bidding game. Stage 1 involves a single-target project for which N potential bidders are bidding. Bidder i assigns a value of X it to the target project. Each X it is independently and identically distributed on a certain interval [ X t , X t ] according to the increasing distribution function F. Only bidder i knows the realization xit of X it . Bidders are requested to report signal X i in the bidding game. The auction rules require that the bidder with the highest X i wins the bidding game and becomes the concessionaire. If the highest signal X i is positive, the government and concessionaire will bargain in the next stage for royalty according to the highest signal X i . In contrast, if the highest signal X i is non-positive, the auction rules require the government to offer sufficient subsidy that amounts to the absolute value of the highest signal. Furthermore, the reported signal X i is a function of the true value xit , which is the bidding strategy used in the bidding game. The symmetric equilibrium bidding strategy used in the proposed model is modified from the traditional model of first-price sealed-bid auctions with independent private values (Vickrey, 1961, 1962; Myerson, 1981; Riley and Samuelson, 1981). Suppose that there is a symmetric and increasing equilibrium of the proposed three-stage auction such that the expected payment of a bidder with value Max[Wg , X t ] is the same as that in a first-price sealed-bid auction. According to the Revenue Equivalence Principle, this symmetric equilibrium of the proposed auction yields the same expected revenue to the seller as a first-price sealed-bid auction. Foreseeing the equilibrium of the second-stage bargaining subgame according to Corollary 1, the symmetric equilibrium of the first-stage bidding game can be easily inferred from the symmetric equilibrium of a first-price sealed-bid auction. Proposition 2. A symmetric equilibrium bidding strategy for any bidder i with value xit  Wg is to report signal5 1  t t  X i    h( xi ) if h( xi )  0 g   t if h( xit )  0  X i  h( xi )

( 4 )

r

5 p is assumed to be fixed for all bidders; that is, all the bidders bear the same bargaining cost during the bargaining stage, provided that any one of them could win the auction and enter the bargaining game. Consequently,

g

is fixed for all bidders, too. This assumption is made for that the auction rules requiring the

bidder with the highest signal

Xi

win ensure an efficient auction. Under this assumption, in the symmetric and

increasing equilibrium, the bidder with the highest true value will report the highest signal highest royalty if the highest signal is positive.

927

X i implying the

Where h( xit )  E(max[Y1 ,Wg ] | Y1  xit ) and Y1 is the highest value of the other N-1 bidders6.

h( xit ) is the symmetric equilibrium bidding strategy of bidder i in a first-price sealed-bid auction (see Krishna, Chap. 2). According to Proposition 2, if h( xit ) is positive, bidder i will report a positive signal X i during Stage 1 and expect to bargain with the government for royalty according to the signal X i during Stage 2 if she wins the bidding game. In contrast, if h( xit ) is non-positive, bidder i will report a non-positive signal X i during Stage 1 and expect the government to offer subsidy that amounts to the absolute value of X i if she wins the bidding game. Proposition 2 implies that both the proposed three-stage auction and first-price sealed-bid auction are corresponding to the same direct mechanism with the same allocation rule and payment rule; therefore, the two standard auctions yield the same expected revenue to a seller. Furthermore, the difference between the true value of bidder i, xit , and her payment (royalty or subsidy) is her information rent. With a positive signal X i , which determines the size of the premium being bargained for, the information rent of bidder i equals to ( xit  g  X i ) . In contrast, with a non-positive signal X i , the information rent of bidder i equals to ( xit  X i ) . In addition, the payment of the winner of this three-stage auction, h( xit ) , must be at least as large as the payoff received by the government from outside options; that is, t t h( xi )  E(max[Y1 ,Wg ] | Y1  xi )  Wg in Proposition 2. Expecting this, the bidders will report signals to make the payment be at least as large as the payoff received by the government from outside options. While h( xit ) is positive, bidder i will report signal X i such that  g  X i  h( xit )  Wg ; consequently, the unique SPNE of the government R g *1 always converges to Rg*1   g  X i in the bidding subgame according to Corollary 1 and thus royalty always equals the limiting share of the government according to the model of Rubinstein without outside options. Nevertheless, royalty, the positive payment of the transformed auction, is not determined by the government’s bargaining power as mentioned in section 2.1; instead, it is indeed determined by the true values bidders assign to the target project and the payoff received by the government from outside options since Rg*1  E(max[Y1 ,Wg ] | Y1  xit ) and the signal X i can be manipulated. Therefore, the way the government tries to raise royalty is to increase its payoff from outside options; its to alter bargaining power is helpless. How to increase its payoff from outside options is a further issue for the government. To restructure the organization or to redesign compensation scheme may be helpful to improve public administration efficiency and, therefore, the profitability of state-owned-enterprises. 2.3 Summary In sum, in a competitive tender, anticipating the equilibrium of the second stage of the auction (the bargaining subgame) stated in Corollary 1, bidders report signals X i following the equilibrium bidding strategies stated in Proposition 2 during the first stage of the auction (the bidding game). The bidder with the highest signal wins the bidding game and becomes a concessionaire. Then, if the highest signal is positive, the concessionaire and government bargain according to the highest signal during the second stage; in the limit, as the time intervals between offer and counteroffer approach zero, the equilibrium bargaining strategy of the government converges to Rg*1   g  X i , and that of the concessionaire converges to R*p1  X i  Rg*1 . As a consequence, the government receives a royalty

6 The distribution function of

Y1

is

F ( y) N 1

.

928

 g  X i . In contrast, if the highest signal is non-positive, the government offers sufficient loss subsidy that amounts to the absolute value of the highest signal | X i | . 2.4 Discussion of the Model The auction rules in the proposed model require the government either to negotiate for royalty or to subsidize the concessionaire according to the signal communicated by the concessionaire. Some may wonder why the government could not utilize the information of the true value xit of the concessionaire after bidding game closed since it can extract the information from the highest bid the according to Proposition 2. The reason why the government could not subsequently either to bargain regarding the royalty or to subsidize the concessionaire according to the true value of the concessionaire is that the proposed symmetric separating equilibrium fails to exist in such a case. Supposing there is a symmetric and increasing equilibrium of the bidding game during Stage 1, consider an alternative auction rule that requires the government to bargain for the royalty according to the true value of the concessionaire if the highest signal is positive, the payment of the winner of the transformed auction becomes  g xit under the circumstance, which contradicts to the Revenue Equivalence Principle. For efficiency, the government designs the auction rules to ensure a symmetric separating equilibrium of the bidding game. A symmetric separating equilibrium enables the government to distinguish and then select the bidder the highest value as the concessionaire since the signal X i is increasing in with the true value xit as Proposition 2 shows. The government needs to stick by the commitment not to use information of the true value of the concessionaire in the subsequent bargaining process or in the subsidy policy formulation; otherwise, the symmetric separating equilibrium will fail in the future repeated play in practice. Next, consider a scenario that a government selects a short list of multiple applicants, not only a single applicant, via the bidding game. Some argue that selecting a short list of applicants is a threat strategy of the government for . However, as Proposition 2 shows, the bid of the bidder with the bargaining highest value has already taken account of the second highest value ex-ante. Since royalty is the payment of the transformed three-stage auction and is not merely decided by the second-stage bargaining subgame, a change in the second-stage bargaining subgame; for instance, a short list of bidders instead of a single one to be bargained with, causes a corresponding change in the symmetric separating equilibrium of the first-stage bidding game according to the Revenue Equivalence Principle. As a result, the expected revenue to the government remains unchanged. Therefore, a short list of multiple applicants would not be useful for the government aiming to increase its expected revenue in the proposed game of this study. Third, comparing to past studies, this study complements the literature for it considers not only bidding but also bargaining behavior in franchising approach. As Chiou and Lan (2006), Kang, Feng, and Huang (2003, 2007) the royalty computation formulas, they ignored that royalty should be developed determined through auction and negotiation of the two players. Likewise, Engel, Fiscal, and Galetovic (2003) proposed Present-Value-Revenue auction but did not consider bargaining behavior of the government and the bidders in their model. This study considers bidding and bargaining behavior of the government and bidders in one model, offering an unique theory to describe the equilibrium bidding and bargaining strategies of the players in franchising approach.

3.

The Extended Model—Manipulation

If bidders form a cartel and report distorted signals that imply a more unprofitable target project, the government may perceive that the target project is of low value and then ask for a smaller royalty or offer more loss subsidy. Knowing that such collusive incentive exists in every infrastructure tender, the government still seems to be naïve provided that no collusion is detected and prosecuted since it could not distinguish the low-value outcome in a competitive tender from a collusive equilibrium outcome for information asymmetry7. 7 Note that such collusion is legally prohibited. The cartel will thus collude clandestinely and never signal its

929

For simplicity, consider an all-inclusive cartel during the bidding stage. The bidder with the highest value pays side payments to the other members of the cartel to make them submit non-serious bids. The only bidder to submit a serious bid is that with the highest value, i.e., the representative of the cartel. The functioning of the ring, for example a first-price preauction knockout (PAKT), has been explored in studies on bidding rings in first-price auctions (McAfee and McMillan, 1992). The criminal agreement is assumed to be enforced by repeated play, which makes sense for a small pool of qualified contractors and project promoters. Suppose the representative of the cartel reports distorted signal under collusion. In addition, suppose the cartel could play tricks to decrease the payoff of the government from taking up its outside options, which might happen when it controls the critical technique of the target infrastructure. If these few qualified contractors and project promoters form a cartel and prevent the government from accessing to the critical technique of the target infrastructure, the government will face limited options to build and execute the project by itself, which may influence its payoff from taking up infrastructure its outside options. Let Wg' be the payoff received by the government from taking up its outside options under collusion, and Wg'  Wg . Then the bidding strategy for the representative of the cartel with value x t  Wg' is to report signal

 ' 1 ' '  X    Wg if Wg  0 g  X '  W ' if Wg'  0 g 

( 5 )

If Wg' >0, consequently, in the limit, as   0 , the unique SPNE of the second-stage bargaining subgame converges to Rg*2   g  X ' ,

(6)

 (1  g )  X . (7) Unlike Proposition 2 and Corollary 1 giving the equilibrium bidding and bargaining strategies of the government and bidders in a competitive tender, Equation (5) to (7) give those in a collusive tender. Comparing Eq. (4) in Proposition 2, Eq. (5) shows that the winning bidder will report a lower signal during the bidding stage since h( xit )  Wg  Wg' and therefore X '  X . Furthermore, comparing to R*p2

'

Corollary 1, Eq. (6) and (7) show that royalty will be lower under collusion since Rg*2   g  X ' and

X'  X .

4.

Case Study

4.1 The Background of A Target Project A target project consists of both BOT and OT8 parts associated with an underground railway station project in Taiwan. The underground railway station project comprises a new underground railway station including a railway platform at B3, a high-speed railway platform at B1, and a corridor at B2 connecting the underground station with the metro system. Above the underground station is a vacant lot zoned for construction with an area of 42,610.16 square meters. The target BOT plus OT project involves four new buildings on the vacant lot. The government constructed the underground railway station and one of the new buildings. Meanwhile, the concessionaire constructed the other three new buildings, and will operate all four buildings to generate revenue. Thus the new building built by the government is involved in the OT part of the franchised project, while the three buildings built by the concessionaire are involved in the BOT part of the project. The building involved in the OT part of the project was completed and delivered to the concessionaire with the vacant lot at the end of Oct., 2009. For data constraints, we have access to the investment program and detailed business plan of the winning bidder only. If the related information of the other bidders will be available in the future, future studies may offer more detailed analysis of this case further. private information to the government as in the case of bargaining with one-sided incomplete information. 8 “BOT” is the abbreviation of “Build-Operate-Transfer”, which is a type of PPP. “OT” is the abbreviation of “Operate-Transfer”, which is another one type of PPP. Generally speaking, in BOT model, the concessionaire builds a facility, operates the facility for a concession period, and then transfers the facility to the public agency at the end of the concession period. As for OT model, the concessionaire just operates a facility for a concession period without building it, and then transfers the facility to the public agency at the end of the concession period.

930

According to business plan of the winning bidder9, these four buildings are planned as compounded buildings for transportation and business use. The building involved in the OT part will be used for a SPA center, bookstore, and restaurants. Regarding the three buildings involved in the BOT part, one will be used as a parking lot; while the other two will be used for intelligent offices, a conference center, a medium-sized hotel, and a shopping mall. The concession duration for the OT part runs from 2010 to 2059. Meanwhile, the concession duration for the BOT part comprises a construction period of 3 years, from 2011 to 2013, and an operating period of 46 years, from 2014 to 2059. The nominal construction cost of the three buildings involved in the BOT part of the project is USD 156,638,53310. Regarding revenue, the winning bidder plans to lease these four buildings to tenants for pre-arranged purposes rather than operating the businesses directly. The revenue thus will all come from rentals. The annual rental revenue equals the area for lease, multiplied by the occupancy level, multiplied by the monthly rental per square meter, multiplied by 12 months. Additionally, the discount rate of the winning bidder is assumed to be 5.92%. All present values are discounted to 2010. Finally, this study uses the minimum royalty required by the government in the tender as the proxy of the payoff received by the government from taking up its outside options. 4.2 The Model Solutions According to the business plan of the winning bidder, the net present value of the project, that is, the reported signal X11 is USD 76.8684 millions. According to our assumption made in Section 4.1, that is, the minimum royalty required by the government in the tender is used as the proxy of the payoff of the government from taking up its outside options, the payoff of the government from taking up its outside options Wg is USD 55.6367 millions, which is discounted by 5.92%. Meanwhile, the present value of royalties R g*1 is USD 61.3941 millions, which is also discounted by 5.92%. The tender is inferred to be competitive since the value of royalties is significantly higher than the payoff received by the government from taking up its outside options. Furthermore, according to corollary 1, Rg*1   g  X as mentioned in section 2.3, that is, 61.3941   g * 76.8684 , the bargaining power of the government

 g is inferred to be 0.7987. The results are summarized in Table 1- Panel A. Next, suppose the existence of an all-inclusive cartel during the bidding stage. In this case we don’t consider the possibility of manipulation of the payoff received by the government from taking up its outside options because there is no critical technique for the government to execute the construction and operation of new buildings on the vacant lot above the underground station by itself which may be controlled by the bidders; so the payoff of the government from outside options under collusion remains unchanged, that is, Wg'  Wg  55.6367 . According to Equation (5)—(7),

X' 

1

g

Wg' 

1 55.6367  69.6598 if Wg'  0 by Eq. (5), 0.7987

Rg*2   g  X '  (0.7987)(69.6598)  55.6367 by Eq. (6),

R*p2  (1  g )  X '  (1  0.7987)(69.6598)  14.0232 by Eq. (7). So we know that, if the bidders had formed a cartel, the representative of the cartel would have underestimated the size of the premium X ' to USD 69.6598 millions, and the unique SPNE of the government in the bargaining subgame R g *2 would thus have decreased to USD 55.6367 millions, while that of the concessionaire, R p *2 , would have been USD 14.0232 millions. The model solutions are summarized in Table 1- Panel B.

9 Since the business plan is confidential, the details of the plan have been modified as necessary. 10 The exchange rate of the N.T. Dollar against the U.S. Dollar, NTD/USD, used in this section is 30.00. 11 X=The net present value of the target project=

931

Table 1 The model solutions (Unit: USD million) Panel A-- In the originally competitive tender The signal X The observable variables

76.8684

The payoff of the government from outside options Wg The unique SPNE of the government in bargaining

Rg

The unique SPNE of the concessionaire in bargaining The estimated variable

The bargaining power of the government  g

55.6367

*1

Rp

61.3941 *1

15.4743 0.7987

Panel B-- In an imaginatively collusive tender The distorted signal X ' The unique SPNE of the government in bargaining R g *2

69.6598

The unique SPNE of the concessionaire in bargaining R p *2

14.0232

55.6367

4.3 Sensitivity Analysis (1) Relative Bargaining Power First, this study presents a sensitivity analysis that considers different levels of relative bargaining power since we estimate the bargaining power of the government  g  0.7987 from the observable variables R g*1 and X in Section 4.2 rather than using its definition  g  rp /(rg  rp ) as mentioned in Corollary 1. The bargaining power of the government might be 0.5, 0.6, 0.7, 0.75, 0.7987, 0.85, 0.9, or 1.0 respectively in this specific case. In the competitive tender, the equilibrium payment of the winning bidder in the auction equals that in a first-price sealed-bid auction, that is, Rg*1  E (max[Y1 ,Wg ] | Y1  xit ) as mentioned in Section 2.2, the payment of the winning bidder would not change with various level of the bargaining power of the government. Therefore, the winning bidder would have adjusted the signal X according to the equation Rg*1   g  X as mentioned in section 2.3 if the bargaining power of the government had been in different levels. First, suppose the bargaining power of the government had been 0.75. According to Corollary 1, Rg*1   g  X  61.3941  0.75  X , is inferred to be 81.8588. Furthermore, X

R*p1  X  Rg*1  81.8588  61.3941  20.4647 . In other words, if the bargaining power of the government had decreased slightly to 0.75, the winning bidder would have submitted the same royalty USD 61.3941 millions, and the signal X would have increased to USD 81.8588 millions, and the unique SPNE of the concessionaire in bargaining R *p1 would have increased to USD 20.4647 millions. Next, suppose the bargaining power of the government had been 0.85. According to Corollary 1, Rg*1   g  X  61.3941  0.85  X , is inferred to be 72.2284. Furthermore, X

R*p1  X  Rg*1  72.2284  61.3941  10.8343 . In other words, if the bargaining power of the government had increased slightly to 0.85, the winning bidder would have submitted the same royalty USD 61.3941 millions, and the signal X would have decreased to USD 72.2284 millions, and the unique SPNE of the concessionaire in bargaining R *p1 would have decreased to USD 10.8343 millions. The above logic can be applied to various levels of relative bargaining power, and detailed results of the sensitivity analysis in the competitive tender are shown in Table 2- Panel A. On the other hand, in an imaginatively collusive tender, the representative of the cartel would have submitted a royalty which has equaled the payoff of the government from outside options under collusion by Equation (5) and (6), that is, Rg*2   g  X '  Wg' , the royalty would have not changed with various level of the bargaining power of the government. Furthermore, the royalty 932

Rg*2  55.6367 since Wg'  Wg  55.6367 in this case. First, suppose the bargaining power of the government had been 0.75. According to Equation (5)—(7), 1 ' 1 X'  Wg  (55.6367)  74.1823 if Wg'  0 by Eq. (5), g 0.75

Rg*2   g  X '  (0.75)(74.1823)  55.6367 by Eq. (6), R*p2  (1  g )  X '  (1  0.75)(74.1823)  18.5456 by Eq. (7). So we know that, if the bargaining power of the government had decreased slightly to 0.75, the winning bidder would have submitted the same royalty USD 55.6367 millions, and the distorted signal X ' would have increased to USD 74.1823 millions, and the unique SPNE of the concessionaire in bargaining R *p2 would have increased to USD 18.5456 millions. Next, suppose the bargaining power of the government had been 0.85. According to Equation (5)—(7), 1 ' 1 X'  Wg  (55.6367)  65.4549 if Wg'  0 by Eq. (5), g 0.85

Rg*2   g  X '  (0.85)(65.4549)  55.6367 by Eq. (6),

R*p2  (1  g )  X '  (1  0.85)(65.4549)  9.8182 by Eq. (7). So we know that, if the bargaining power of the government had increased slightly to 0.85, the winning bidder would have submitted the same royalty USD 55.6367 millions, and the distorted signal X ' would have decreased to USD 65.4549 millions, and the unique SPNE of the concessionaire in bargaining R *p2 would have decreased to USD 9.8182 millions. The above logic can be applied to various levels of relative bargaining power, and detailed solutions of the sensitivity analysis in an imaginatively collusive tender are shown in Table 2- Panel B. Table 2

Sensitivity Analysis-- Relative Bargaining Power (Unit: USD million) Panel A—In an competitive tender

The bargaining power of the government  g The signal X

0.5

0.6

0.7

0.75

0.7987

0.85

0.9

1

122.78 82

102.32 35

87.705 9

81.858 8

76.868 4

72.228 4

68.215 7

61.394 1

10.834 3

6.8216

0

The unique SPNE of the government in bargaining R g *1 The unique SPNE of the concessionaire in bargaining R p *1

61.3941 61.394 1

40.929 4

26.311 8

20.464 7

15.474 3

Panel B—In an imaginatively collusive tender The bargaining power of the government  g The distorted signal X' The unique SPNE of the government in bargaining R g *2 The unique SPNE of the concessionaire in bargaining R p *2

0.5

0.6

0.7

0.75

0.7987

0.85

0.9

1

111.27 34

92.727 8

79.481 0

74.182 3

69.659 1

65.454 9

61.818 6

55.636 7

9.8182

6.1819

0

55.6367

55.636 7

37.091 1

23.844 3

933

18.545 6

14.022 4

(2) The payoff of the government from taking up its outside options Then we present a sensitivity analysis that considers the different levels of the payoff of the government from outside options. Notice that Wg going upward may change the observed royalty for

Rg*1  E (max[Y1 ,Wg ] | Y1  xit ) =61.3941>55.6367; to avoid a misleading conclusion due to the absence of related information of other bidders, only downward Wg is considered here. In the competitive tender, since the equilibrium payment of the winning bidder is greater than the payoff of the government from outside options, that is, *1 t Rg  E(max[Y1 ,Wg ] | Y1  xi )  61.3941  55.6367  Wg , the payment of the winning bidder is determined by other bidders’ expected valuations rather than the payoff of the government from outside options. Thus, the payment of the winning bidder R g*1 would not change with downward Wg , so do the signal X and the unique SPNE of the concessionaire in bargaining R *p1 . The results of the sensitivity analysis in the competitive tender are summarized in Table 3- Panel A. On the other hand, in an imaginatively collusive tender, the representative of the cartel would have submitted a royalty which have equaled the payoff of the government from outside options under collusion by Equation (5) and (6), that is, Rg*2   g  X '  Wg' . Furthermore, for Wg'  Wg in this case, the royalty would have changed with various level of the payoff of the government from outside options. For example, suppose the payoff of the government from outside options had decreased 10% to be USD 50.0730 millions. According to Equation (5)—(7), 1 ' 1 X'  Wg  (50.0730)  62.6939 ,if Wg'  0 by Eq. (5), g 0.7987

Rg*2   g  X '  Wg'  0.7987(62.6938)  50.0730 by Eq. (6), R*p2  (1   g )  X '  (1  0.7987)(62.6939)  12.6208 by Eq. (7). If the payoff of the government from outside options had decreased 10%, the winning bidder would have reported a distorted signal X ' USD 62.6939 millions, and the unique SPNE of the government in bargaining Rg*2 would have decreased to USD 50.0730 millions, and the unique SPNE of the concessionaire in bargaining R*p2 would have decreased to USD 12.6208 millions. The above logic can be applied to various levels of the payoff of the government from outside options, and detailed solutions of the sensitivity analysis in an imaginatively collusive tender are shown in Table 3- Panel B. Table 3

Sensitivity Analysis-- Payoff from outside options Panel A-- In an competitive tender

The change of the payoff of the government from outside options The payoff of the government from outside options Wg

(Unit: USD million)

0%

-10%

-20%

-30%

55.6367

50.0730

44.5094

38.9457

The signal X

76.8684

The unique SPNE of the government in bargaining R*g1 The unique SPNE of the concessionaire in bargaining

Rp

61.3941 *1

15.4743

Panel B-- In an imaginatively collusive tender The change of the payoff of the government from outside options under collusion The payoff of the government from outside options under collusion Wg' (Wg'  Wg ) The distorted signal X ' The unique SPNE of the government in bargaining R g *2 The unique SPNE of the concessionaire in bargaining R p 934

*2

0%

-10%

-20%

-30%

55.6367

50.0730

44.5094

38.9457

69.6599

62.6939

55.7279

48.7619

55.6367

50.0730

44.5094

38.9457

14.0232

12.6208

11.2185

9.8162

4.4 Discussion of the Case Table 1 shows that the royalty and signal in the competitive tender are significantly different from those in an collusive tender. The differences indicate that the presented model has practical applications to explain how reported signals and royalties are determined in different cases and to detect potential collusion in real world. In such a complete case, the equilibrium royalties and reported signal are both observable, so we can use these variables to estimate the relative bargaining power although in the model the bidders should estimate the relative bargaining power by its definition and then use it to determine the reported signal and equilibrium royalties. The sensitivity analysis on relative bargaining power shows that, no matter the tender is competitive or not, the reported signal and the unique SPNE of the concessionaire in bargaining are both decreasing in the bargaining power of the government, while royalty remains constant. The results imply that the bargaining power of the government has influence on the signal rather than the royalty; furthermore, the stronger the bargaining power of the government, the less the reported signal. In addition, the sensitivity analysis on the payoff of the government from outside options shows that, in the competitive tender, the signal and the unique SPNE of the government and concessionaire in bargaining all remain unchanged with the downward payoff of the government from outside options. In contrast, in a collusive tender, the reported signal and the unique SPNE of the government and concessionaire in bargaining are all increasing in the payoff of the government from outside options. The results indicate that the payoff of the government from outside options matters in a collusive tender, while it may be insignificant in a competitive tender. The last but not least importantly, royalty and subsidy are not isolated issues in practice; these are often considered with variations in the length of concession period. Extending concession period can be considered as a way to subsidize a concessionaire; likewise, shortening concession period may be a way to levy royalty. Some literatures like Engel, Fischer, and Galetovic (2003) and Shen, Bao, and Lu (2007) focused on concession period rather than royalty and subsidy. It is easy to convert our model to determine the equilibrium concession period or to extend our model to discuss royalty, subsidy and concession period together.

5.

Conclusions

This study presents a transformed three-stage first-price sealed-bid auction with independent private values to determine equilibrium royalties and subsidies under a present allocation procedure. It contributes to the literature for its uniqueness in considering not only bidding but also bargaining behavior in franchising approach. Furthermore, some implications derived from this model can offer suggestions for the authorities and policy makers to facilitate PPP contracting. First, royalty is influenced by the true values bidders assign to the target project and the payoff received by a government from taking up its outside options instead of the bargaining power of the government. Therefore, to increase its payoff from outside options is essential for the government to raise royalty; to alter its bargaining power is helpless. To restructure the organization or to redesign compensation scheme may be helpful to improve the profitability of state-owned-enterprises and, therefore, the payoff received by the government from outside options. Next, the payoff received by the government from outside options is vulnerable to collusion, especially when the few qualified contractors and project promoters control the critical technique of the target infrastructure. If they form a cartel to prevent the government from accessing to the critical technique, the government will face limited options to build and execute the infrastructure project by itself, resulting in its lowered payoff from outside options and distorted royalties and subsidies further. This study also details a case study to illustrate how the presented model is applied to a real case. The sensitivity analysis indicates that the bargaining power of the government has influence on the signal rather than the royalty; furthermore, the stronger the bargaining power of the government, the less the reported signal. In addition, the payoff of the government from taking up its outside options matters in a collusive tender, while it might be insignificant in a competitive tender. For data constraints, we have access to the investment program and detailed business plan of the winning bidder only. If the related information of the other bidders will be available in the future, future studies may offer more detailed analysis of this case further. 935

Finally, this study considers a simplified game composed of a transformed auction with a single-issue bargaining game of complete information. An extended model involving multiple-issue games of incomplete information could be considered in future studies to include more than two contract terms to be determined.

Appendix Proof of Proposition 1. In the infinite horizon alternating-offers model of Rubinstein with outside options (Rubinstein, 1982; Binmore, 1985), the unique SPNE satisfies two properties: (1) No Delay (A player’s equilibrium offer is accepted by the other player whenever she has to make an offer.), and (2) Stationarity (In equilibrium, whenever a player has to make an offer, she makes the same offer.). That is, player i is indifferent between accepting and rejecting player j’s (j ≠ i) equilibrium offer. This situation  X  R*p0  max( g Rg*0 ,Wg )  leads to  . *0 *0 *0   X  Rg  max( p R p ,0)   p R p *0

The unique solution R g 、 R p

*0

of the above simultaneous equations is the unique SPNE, stated as

Proposition 1. Q.E.D. Proof of Proposition 2. Suppose that there is a symmetric and increasing equilibrium of the proposed two-stage auction such that the expected payment of a bidder with value Max[Wg , X t ] is the same as that in a first-price sealed-bid auction. According to the Revenue Equivalence Principle, this symmetric equilibrium of the proposed auction yields the same expected revenue to the seller as the first-price sealed-bid auction. Next, consider the symmetric and increasing equilibrium stated in Proposition 2. If 1 1  h( xit )  0 According to the auction h( xit )  0 , the bidder reports X i equals  h( xit ) , where

g

g

rules and Corollary 1, the bidder and the government will bargain for royalty according to X i if the bidder wins and the government will receive a royalty equals  g  X i since

 g  X i  h( xit )  E(max[Y1 ,Wg ] | Y1  xit )  Wg . Note that  g  X i  h( xit ) ; that is, the expected royalty in the proposed auction is the same as the expected payment in a first-price sealed-bid auction since h( xit ) is the symmetric equilibrium bidding strategy of bidder i in a first-price sealed-bid auction (see Krishna, Chap. 2). On the other hand, if h( xit )  0 , the bidder reports X i equals h( xit ) where X i  h( xit )  0 According to the auction rules, the expected (negative) payment in the proposed auction is the same as the expected payment in a first-price sealed-bid auction. In sum, the expected payment in the equilibrium of the proposed auction is the same as that in a first-price sealed-bid auction. Q.E.D. Acknowledgments: The authors would like to thank the National Science Council of the Republic of China for financially supporting this research under Contract No. NSC 99 –2410–H-126-033-MY3.

References [1] Anandalingam, G., 1987. Asymmetric Players and Bargaining for Profit Shares in Natural Resource Development. Management Science 33, 1048-1057. [2] Binmore, K., 1985. Bargaining and Coalitions. in A. Roth (ed.), Game-Theoretic Models of Bargaining, Cambridge University Press, Cambridge. [3] Chen A., Subprasom, K., Chootinan, P., 2002. Assessing financial feasibility of a Build-Operate-Transfer project under uncertain demand. Transportation Research Record 1771, 124-131. [4] Chiou, Y. C. and L. W. Lan, 2006. The Royalty Models for Transport Infrastructure BOT Projects. Transpormetrica 2, 175-197. [5] Cramton, P. and J. Schwartz, 2000. Collusive Bidding: Lessons from the FCC Spectrum Auctions. Journal of Regulatory Economics 17, 229-252. [6] Engel, E. Fischer, R. and Galetovic, A., 2003. Highway franchise in Latin America: Is this the right model?. Conference on Sector Reform in Latin America, Stanford Center for International 936

Development and Stanford Institute for Economic Policy Research, November 13-15, 1-29. [7] Finnerty, J. D., 1996. Project Financing: Asset-Based Financial Engineering, Hohn Wiley & Sons, Ins., Toronto, Canada. [8] Graham, D. and R. Marshall, 1987. Collusive Behavior at Single-Object Second-Price and English Auctions. Journal of Political Economy 95, 1217-1239. [9] Grimm, V., F., Riedel and E. Wolfstetter, 2003. Low Price Equilibrium in Multi-unit Auctions: The GSM Spectrum Auction in Germany. International Journal of Industrial Organization 21, 1557-1569. [10] Hendricks, K. and R. Porter, 1989. Collusion in Auctions. Annales d’Economie et de Statistique, 15-16, 217-230. [11] Kang, C. C., Feng, C. M., Huang, S. C., 2007. A new financial engineering model for analyzing the royalty of BOT projects: the Taiwan case. Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management, 277- 281, Singapore. [12] Kang, C. C., Feng, C. M., Huang, S. C., 2003. The new finance model of BOT projects. Journal of the Eastern Asia Society for Transportation Studies 5, 2920-2931. [13] Kang, Chao-Chung, Cheng-Min Feng, and Chiu-Yen Kuo, 2012. Comparison of royalty methods for build–operate–transfer projects from a negotiation perspective. Transportation Research Part E: Logistics and Transportation Review 48:4, 830-842. [14] Krishna, V., 2002. Auction Theory, Elsevier Science, USA. [15] Mailath, G. and P. Zemsky, 1991. Collusion in Second Price Auctions with Heterogeneous Bidders. Games and Economic Behavior 4, 467-486. [16] McAfee, R. Preston and McMillan, John, 1992. Bidding Rings, American Economic Review 82, 579-599. [17] Muthoo, A., 1999. Bargaining Theory with Application, Cambridge University Press, UK. [18] Myerson, R., 1981. Optimal Auction Design. Mathematics of Operations Research 6, 58-73. [19] Public Construction Commission, 2001. Report of Financial Planning of the Private Participation in Infrastructure. Taipei, Taiwan. [20] Riley, J. and W. Samuelson, 1981. Optimal Auctions. American Economic Review 71, 381-392. [21] Robinson, M., 1985. Collusion and the Choice of Auction. Rand Journal of Economics 16, 141-145. [22] Rubinstein, A., 1982. Perfect Equilibrium in a Bargaining Model. Econometrica 50, 92-109. [23] Shen, L. Y., Bao, H. J., Lu, W. S., 2007. Using bargaining-game theory for negotiating concession period for BOT-type contract. Journal of Construction Engineering and Management 133(5), 385-392. [24] Tang, LiYaning, Shen, Q., Cheng, Eddie W. L., 2010. A review of study on public-private partnership projects in the construction industry. International Journal of Project Management 28, 683-694. [25] Timothy, C. S., 2004. Preventing Collusion Among Firms in Auctions. in M.C.W. Janssen (ed.), Auctioning Public Assets: Analysis and Alternatives. Cambridge: Cambridge University Press, 80-107. [26] Vickrey, W., 1961. Counterspeculation, Auctions and Competitive Sealed Tenders. Journal of Finance 16, 8-37. [27] Vickrey, W., 1962. Auctions and Bidding Games. in Recent Advances in Game Theory, Princeton Conference Series, 29, Princeton, NJ: Princeton University Press, 28, 15-27. [28] Walker, C., Smith, A. J., 1996. Privatized Infrastructure: the Build Operate Transfer Approach, Thomas Telford publication, Lindon. [29] Weber, R., 1997. Making More from Lessons: Strategic Demand Reduction in the FCC Spectrum Auctions. Journal of Economics and Management Strategy 6, 529-548.

937

B297 The impact of workplace gossip on employee effectiveness: Insights from the employment relationship perspective 1

Kuo chien-chih, 2Lu chiu-yi National Chengchi University, Department of Psychology, Taipei, Taiwan E-mail:cckuo@nccu.edu.tw

1

2

Chung Yuan Christian University, Department of Psychology, Taipei, Taiwan E-mail:g9964008@cycu.edu.tw

Abstract Although the significant impact of workplace gossip on organization effectiveness, seldom has it been a topic of management research. Little empirical studies focused on workplace gossip and its impacts on employee behaviors in the past few years. Therefore, this study examined the effects of workplace gossip on employee effectiveness, including affective organizational commitment, organizational citizenship behavior, perceived organizational attractiveness, organizational identity, and organizational cynicism. Moreover, this study explored the antecedents of workplace gossip based on the employment relationship perspective, tested the relationship between abusive supervision, psychological contract breach and workplace gossip. The data were collected from 455 employees in the several industries, such as Semiconductor, Manufacture, and Chemistry in Taiwan. Three major findings manifest in the results. First, workplace gossip had a significant predictability for employee effectiveness. Compare to interpersonal-related gossip, the effects of task-related gossip on employee effectiveness (affective organizational commitment, organizational citizenship behavior, perceived organizational attractiveness, organizational identity, and organizational cynicism) were larger. It suggests that task-related gossip has more influence on the employees’ behaviors and attitudes in workplace than the influence of interpersonal-related gossip. Secondly, employment relationship (abusive supervision and psychological contract breach) had significant predictability for the employees’ workplace gossip under the condition of controlling the employees’ demographic variables and organizational attributes. It shows that employees who experienced the abusive supervision and psychological contract breach would be more likely to spread the workplace gossip. Thirdly, we found that employment relationship affects employee effectiveness through its impact on workplace gossip. In particular, abusive supervision and psychological contract breach had positive effects on workplace gossip, in turn, workplace gossip affect the affective organizational commitment, organizational citizenship behavior, and organizational cynicism. In summary, workplace gossip mediates the relationship between employment relationship and employee effectiveness. The study demonstrates the important role of employment relationship in workplace gossip and that workplace gossip may have significant influence on employee effectiveness. Further discussion focuses on theoretical and practical implications of the observed outcomes. Keywords: employee effectiveness, employment relationship, workplace gossip

i

Issues that were presented by the students of Masters’ in Social Work (MSW) in the Group Conference (GC) which were faced during their practicum of the 1st /2nd/3rd/ 4th semester . ii Recommendations made and reflections given by other participants of the GC by linking with social work theories, principles as well as tools and techniques.

938