Essay on The Media Effects American Culture - 1249 Words

The media is the means of communication, as radio and television, newspapers, and magazines that reach or influence people widely. The growth of the media has spread vastly over the years. The media is also known as a â€Å"channel of mass communication.† â€Å"Mass Media incorporates all those mediums through which information is distributed to the masses. These include advertisements, magazines, newspapers, radio, television, and the Internet† (Sebastian). The media introduces many new things to the public, both positive and negative. The media harms the American culture by creating these celebrity idols, the glorification of violence, sex, and drug and alcohol abuse. The media positively affects the American culture by the quick and easy flow of†¦show more content†¦People become consumed in this â€Å"fame and money† way of living that they will do whatever it takes to be just like the rich† (Coleman). The media puts the reality into things wit h a twist of any kind of story, quote, or anything that appeals to the public. This showed Americans that the media can negatively affect anyone’s life forever. â€Å"The glorification of violence, drug abuse and other unhealthy habits has a major role in the outburst of unfortunate incidents where children have gotten extremely violent and out of control. Be it the advertisements touting products that promise a fairer skin or bods-to-die for or the television shows and films, which portray violence, sexually explicit content and abusive language. There are music videos and rock bands that give out the message that alcohol; drugs and sex are an inevitable part of life. These ideals created by the media might not be necessarily appropriate† (Manohar). There is this â€Å"media frenzy† going on in America that not only teens are being affected, but also adults. There are misleading commercials or articles in the newspaper that lead people to believe things that are not true. Tabloids, television, and the internet will do anything to attract attention and for people to buy whatever they are selling. One the other hand, the media is a positive influence on the American culture as well. The media promotes education and learning,Show MoreRelatedThe Effects Of Mass Media On American Culture951 Words   |  4 PagesEffects of Mass Media Introduction Why is mass media influencing the American culture? This is what we are going to be discussing in this essay. It’s important that we understand where the media has come from and where it is now and the journey that it is taking the American culture in the last century. America has now explored what un-traditional media and it has a major impact on the culture called new media. What were the major developments in the evolution of mass media during theRead MoreThe Effects Of Mass Media On American Culture777 Words   |  4 Pages Effects of Mass Media Amanda Shock Media Influences on American Culture (HUM/186) 10/19/2015 Allyson Wells Effects of Mass Media There are many different effects of mass media. Where would the world be today without mass media? The world has evolved so much. From the written era all the way to the digital era, communication has changed so much. For instance, when the radio was invented it changed the way the news was communicated and provided entertainment. The television came soonRead MoreThe Effect of Mass Media on American Culture614 Words   |  2 PagesMass media is communication that reaches a large audience. This includes television, advertisement, the Internet, newspapers, and so on. Mass media is a significant effect in modern culture in America. It creates ideas and sustained within society not only send ideological messages out to the public but to advertise this ideas which are tend to manipulate our mantalities. The mass media interperts the views of the majority of the people, the working class, to have their greatest influence on individualsRead MoreMass Media Enslavement and Stupidity: Effects of Media on American Culture and Communication1782 Words   |  8 PagesAlthough Americans have been concerned about the moral principles involved with mass media approaches, it hasn’t stopped our society from continually investing money and time into fueling the mass media fire. In Tom Cooper’s (2008) In Between the Summits: What Americans Think About Media Ethics, he states: While some concerns such as deception, invasion of privacy, advertising saturation, and excessive violence apply to multiple channels of communication, others are medium specific. For exampleRead MoreEssay about Impact of Mass Media on Individuals, Society, and Culture1178 Words   |  5 PagesImpact of Mass Media on Individuals, Society, and Culture Mass media, over the years, has had a profound effect on American society, on its culture, and on the individuals exposed to the media. Mass media is a form of socialization, having a long-term effect on each member of American society. While mass media targets the individual in short-term intervals, the overall influence on them has been established as the consumer moves from one impressionable age category to another. The long or short-Read MoreCoca Cola s Social Media Strategy Essay1459 Words   |  6 PagesCoca-Colonization is the spreading of American culture through popular products, especially the soft beverage Coca-Cola. Coca-Cola is an example of a cultural item that is repeatedly displayed in American television shows, movies, and other forms of media that are viewed throughout the world. For example, according to Kevin Shively, author of â€Å"Lessons from Coca-Cola’s Social Media Strategy: Cohesive Campaigns and Creative Content† on Simplymeasured.com, â€Å"Interbrand ranks them as the third largestRead MoreEssay on Mass Media Society1 080 Words   |  5 PagesImpact of Mass Media on Individuals, Society, and Culture Mass media, over the years, has had a profound effect on American society, on its culture, and on the individuals exposed to the media. Mass media is a form of socialization, having a long-term effect on each member of American society. While mass media targets the individual in short-term intervals, the overall influence on them has been established as the consumer moves from one impressionable age category to another. The long or short-Read MoreInfuence of Entertainment Essay961 Words   |  4 PagesEntertainment Media Latishia Weldon HUM/186 March 4, 2013 Brandale Mills Influence of Entertainment Media America’s have shaped our culture though entertainment for media proposes for years. Entertainment media is how Americans attract the way of life. The social influences relay on the media entertainment for positive and negative images to help transform the minds of people. The culture of Americans have always been through television, computers, and entertainment. The values of our culture haveRead MoreInfluence of Entertainment Media969 Words   |  4 PagesEntertainment Media Latishia Weldon HUM/186 March 4, 2013 Brandale Mills Influence of Entertainment Media America’s have shaped our culture though entertainment for media proposes for years. Entertainment media is how Americans attract the way of life. The social influences relay on the media entertainment for positive and negative images to help transform the minds of people. The culture of Americans have always been through television, computers, and entertainment. The values of our culture haveRead MoreMass Media and Popular Culture953 Words   |  4 PagesMass Media and Popular Culture March, 2009 Let us face the facts, mass media and popular culture need each other to coexist. Furthermore, in todays society the mass media serves the interest of popular culture. Moreover, it is the vehicle of free speech in a diverse, multicultural society. In addition, mass media refers to communication via radio, televisions, movie theaters, television, newspapers, magazines, and, etc; thereby, reaching out to the larger audience. On the contrary, popular

Human Resource Analysis Of Air National Free Essays

Introduction Air National, Europe’s largest airline company, dominated other carriers in the 1980s onward onto the late 1990s aided by a highly regulated civil aviation market in which competition was managed through harmonious inter-airline, competitor, and government relationships, which enabled the domination of markets by national carriers including AN. The mid 1980s however saw a change in AN’s fortunes with its privatization in 1986 amidst prolonged economic recession and deregulation of the civil aviation industry in Europe and North America. These changes reduced the old corporation’s potential political influence, and necessitated a restructuring to make the company attractive to sceptical investors which entailed downsizing of assets and workforce, an endeavour which required the planning and implementation of a new set of business and human resource management strategies. We will write a custom essay sample on Human Resource Analysis Of Air National or any similar topic only for you Order Now This paper investigates AN’s competitive and HR strategy basing its analysis on relevant theories. Human resource management is an approach to the management of an organization’s employees both individually and collectively (its workforce), as valued assets contributing to the attainment of its objectives (Purcell 2003). Its main responsibilities are the selection, training, assessment and rewarding of employees and oversight on the organization’s leadership and culture. The primary focus of the human resource theories and practice is the aligning of people and organizations better for their mutual benefit (Purcell 2005). Issues affecting AN’s business strategy shift The issues that necessitated a change in AN’s competitive strategy and the re-engineering of the company include external factors such as the prolonged recession, deregulation in the civil aviation industry, the heightening of the industry-wide price wars with the emergence of discount airlines and a costly battle for market share, and the effect of terrorism which has had a huge adverse effect on international air travel; as well as, internal factors such as its privatization, huge debts, labour costs, and resultant losses. These factors affected AN’s business and it therefore had to find new ways to better its competitive advantage so as to sustain itself and maintain its market share in both domestic and international passenger traffic. AN’s initial transformation strategy seeking to adopt a low-cost competitive structure failed forcing a change to the differentiation (â€Å"added-value†) strategy which entails the prioritization of high quality customer service and the reorganization of management structure with greater focus on operational issues, and the launch of its discount airline operated as a separate company, to cover market demand for discount airlines. The improvement of HR policies at Air National to better manage its staff contributing to its improved performance can be applied to John Storey’s distinguishing features relating to people management (Storey 1989), broadly categorized into four outlines distinguishing the various elements. Among these outlines is the beliefs and assumptions which characterize AN’s HR policies which are focused on business need with values placed on the objectives of the company rather than on customs, procedures and norms, characteristic of personnel management and industrial relations (Storey 1989). AN’s restructuring features a heightened focus on the â€Å"customer-first† programme which prompted reviews of their employee management and customer interface to enhance this focus. This new strategy entails renewed emphasis on empowerment of employees and their commitment, with the foundation being its recognition that being a service industry, its people are its most impo rtant asset on which its survival depends upon. Conflicts within the company are de-emphasized with managers required to give up control adopting shared power, a consensus approach to decision making which seeks to enhance employee participation and thereby improve their performance. This restructuring also entailed the removal of demarcations between craft groups with consequent reorganization into integrated workgroups and multi-skilled teams with harmonized functions enhancing focus on operational issues and key tasks rather than on rules, customs and management direction inherent in its earlier structure. In the strategic aspects outline (Storey 1989), key relations within AN are integrated to focus on the â€Å"customer-first† strategy, AN’s central corporate plan, with the scrapping of hitherto detached piecemeal initiatives characterizing its old structure. The application of the line management outline with regard to managerial role applies to the management of AN transformed through its new visionary leaders focused on the new strategic shift, which differs from its initial form of management which was mainly transactional and focused on demarcations of duties and responsibilities (Storey 1989). Management was re-focused on route divisions each led by a general manager with authority over business development and particularly, marketing. A prized management skill (Storey 1989) in the new structure was facilitation of employees towards the realization of overall objectives, with the company investing on training programs for senior management based on the importance of trust, motivation and visionary leadership. Looking at the key levers outline in John Storey’s distinguishing features (Storey 1989), AN initiated a profit-related pay system in its transformed strategy so as to motivate its staff better, enhance their performance, job engagement and commitment, ensuring that employees are rewarded for their input, skill levels and competence (Purcell 2005). This pay strategy was reached at through comprehensive consultations with the union to which senior management has developed an open relationship and strategic partnerships, characterized by team briefings and regular formal consultation meetings with its representatives. Communication in AN’s new structure is increased with the encouragement of consensus building and joint decision making which further enhances performance. Training and development is enhanced with investment and the institution of training series for staff and senior management on key business development issues. The company’s conflict handling is also improved with wide ranging foci of attention through the engagement of unions and active involvement of management. Disputes in this new arrangement are quickly resolved through AN’s management reminding its employees of the company’s commitment to job security, their training and development. It is however not an entire success as much of it is left at short term truce with management often throwing money at the problem to kill the conflict, in essence postponing the issues. Key human resource planning issues Human resource management overall is intended to enable an organization achieve its success through people, prime assets who give it its distinct character through a combination of intelligence, skills and expertise, the source of its capabilities essential for its long term survival (Purcell et al, 2005). Research has shown that human resource practices can significantly impact performance of a firm and therefore, AN’s HRM strategies should aim to support programs that improve its organizational effectiveness through the development of deliberate policies that would characterize clear vision and integrated values (Fombrun et al, 1984). The company should also focus on its human capital management in its human resource planning as the company’s success is depended upon employee input. AN’s HRM strategy should seek to ensure that the company obtains and retains a skilled, committed and motivated workforce through the assessment of the company’s people need for selection, the development of the people’s capabilities through nurturing, continuous training and development overall linking them to the needs of the business (Boxall 1992). Other key issues that should be incorporated in AN’s human resource planning to enhance workforce empowerment, commitment and overall company efficiency include knowledge management to enhance performance, reward management to express value for people’s contribution and competence, creation of harmonious relationships to reduce negative conflict and its effect on performance and efficiency, meeting of the diverse needs of the workforce, and bridging gaps between such plans and translated action to bring these policies to life (Sisson 1995). Models of human resource management that best fit AN’s approaches AN’s approach best fits the matching model of HRM, a concept of the Michigan school (Fombrun et al, 1984) which holds that, as its name suggests, an organization’s HR systems and structure should be managed in congruence with its strategy through four generic processes or functions including; selection which entails the matching of human resources to jobs; appraisal which entails performance management; rewards which are motivation schemes developed for the workforce; and, development inherent in the enhancement of the quality of employees. Also fitting is the Harvard framework model founded by the Harvard school (the fathers of HRM), which has its basis on the demand for a broad, comprehensive and strategic perspectives, laying central importance on line managers in ensuring alignment of competitive strategy with HR policies, and the importance of set policies governing workforce activities (Boxall 1992). This model recognizes a range of stakeholders and the importance of interest trade-offs, as well as, widening HRM context adding on the influence of employees among other influences. Conclusion Transformation through its re-engineering brought AN back to profitability in the first quarter of 1998 from its depth of debt in the late 1980s which is a clear testimony to the importance of strategic integration of human resource management which was the main strategy for its transformation to which this success can be attributed. AN, however, later suffered a loss in the last quarter of 2001 and first quarter of 2002 but the company endeavours is to manage the 21st century realities concerning air travel and to maintain its market share in passenger traffic both domestic and international. References Boxall, P., 1992. â€Å"Strategic HRM: A beginning, a new theoretical direction.† In: Human Resource Management Journal, 2(3), pp 61–79 Fombrun, C., N., Tichy, and M., Devanna, 1984. Strategic Human Resource Management. New York, Wiley. Purcell, J, K., Kinnie, Hutchinson, B., Rayton, and J., Swart, 2003. People and Performance: How people management impacts on organizational performance. CIPD, London. Purcell, J., K., Kinnie, Hutchinson, J., Swart, and B., Rayton. 2005. Vision and Values: Organizational culture and values as a source of competitive advantage. CIPD, London. Sisson, K., 1995. â€Å"Human resource management and the personnel function.† In J Storey (ed.) Human Resource Management: A critical text. Routledge, London. Storey, J., 1989. â€Å"From personnel management to human resource management.† In Storey, J. (ed.) New Perspectives on Human Resource Management. Routledge, London. How to cite Human Resource Analysis Of Air National, Essay examples Human Resource Analysis Of Air National Free Essays Introduction Air National, Europe’s largest airline company, dominated other carriers in the 1980s onward onto the late 1990s aided by a highly regulated civil aviation market in which competition was managed through harmonious inter-airline, competitor, and government relationships, which enabled the domination of markets by national carriers including AN. The mid 1980s however saw a change in AN’s fortunes with its privatization in 1986 amidst prolonged economic recession and deregulation of the civil aviation industry in Europe and North America. These changes reduced the old corporation’s potential political influence, and necessitated a restructuring to make the company attractive to sceptical investors which entailed downsizing of assets and workforce, an endeavour which required the planning and implementation of a new set of business and human resource management strategies. We will write a custom essay sample on Human Resource Analysis Of Air National or any similar topic only for you Order Now This paper investigates AN’s competitive and HR strategy basing its analysis on relevant theories. Human resource management is an approach to the management of an organization’s employees both individually and collectively (its workforce), as valued assets contributing to the attainment of its objectives (Purcell 2003). Its main responsibilities are the selection, training, assessment and rewarding of employees and oversight on the organization’s leadership and culture. The primary focus of the human resource theories and practice is the aligning of people and organizations better for their mutual benefit (Purcell 2005). Issues affecting AN’s business strategy shift The issues that necessitated a change in AN’s competitive strategy and the re-engineering of the company include external factors such as the prolonged recession, deregulation in the civil aviation industry, the heightening of the industry-wide price wars with the emergence of discount airlines and a costly battle for market share, and the effect of terrorism which has had a huge adverse effect on international air travel; as well as, internal factors such as its privatization, huge debts, labour costs, and resultant losses. These factors affected AN’s business and it therefore had to find new ways to better its competitive advantage so as to sustain itself and maintain its market share in both domestic and international passenger traffic. AN’s initial transformation strategy seeking to adopt a low-cost competitive structure failed forcing a change to the differentiation (â€Å"added-value†) strategy which entails the prioritization of high quality customer service and the reorganization of management structure with greater focus on operational issues, and the launch of its discount airline operated as a separate company, to cover market demand for discount airlines. The improvement of HR policies at Air National to better manage its staff contributing to its improved performance can be applied to John Storey’s distinguishing features relating to people management (Storey 1989), broadly categorized into four outlines distinguishing the various elements. Among these outlines is the beliefs and assumptions which characterize AN’s HR policies which are focused on business need with values placed on the objectives of the company rather than on customs, procedures and norms, characteristic of personnel management and industrial relations (Storey 1989). AN’s restructuring features a heightened focus on the â€Å"customer-first† programme which prompted reviews of their employee management and customer interface to enhance this focus. This new strategy entails renewed emphasis on empowerment of employees and their commitment, with the foundation being its recognition that being a service industry, its people are its most impo rtant asset on which its survival depends upon. Conflicts within the company are de-emphasized with managers required to give up control adopting shared power, a consensus approach to decision making which seeks to enhance employee participation and thereby improve their performance. This restructuring also entailed the removal of demarcations between craft groups with consequent reorganization into integrated workgroups and multi-skilled teams with harmonized functions enhancing focus on operational issues and key tasks rather than on rules, customs and management direction inherent in its earlier structure. In the strategic aspects outline (Storey 1989), key relations within AN are integrated to focus on the â€Å"customer-first† strategy, AN’s central corporate plan, with the scrapping of hitherto detached piecemeal initiatives characterizing its old structure. The application of the line management outline with regard to managerial role applies to the management of AN transformed through its new visionary leaders focused on the new strategic shift, which differs from its initial form of management which was mainly transactional and focused on demarcations of duties and responsibilities (Storey 1989). Management was re-focused on route divisions each led by a general manager with authority over business development and particularly, marketing. A prized management skill (Storey 1989) in the new structure was facilitation of employees towards the realization of overall objectives, with the company investing on training programs for senior management based on the importance of trust, motivation and visionary leadership. Looking at the key levers outline in John Storey’s distinguishing features (Storey 1989), AN initiated a profit-related pay system in its transformed strategy so as to motivate its staff better, enhance their performance, job engagement and commitment, ensuring that employees are rewarded for their input, skill levels and competence (Purcell 2005). This pay strategy was reached at through comprehensive consultations with the union to which senior management has developed an open relationship and strategic partnerships, characterized by team briefings and regular formal consultation meetings with its representatives. Communication in AN’s new structure is increased with the encouragement of consensus building and joint decision making which further enhances performance. Training and development is enhanced with investment and the institution of training series for staff and senior management on key business development issues. The company’s conflict handling is also improved with wide ranging foci of attention through the engagement of unions and active involvement of management. Disputes in this new arrangement are quickly resolved through AN’s management reminding its employees of the company’s commitment to job security, their training and development. It is however not an entire success as much of it is left at short term truce with management often throwing money at the problem to kill the conflict, in essence postponing the issues. Key human resource planning issues Human resource management overall is intended to enable an organization achieve its success through people, prime assets who give it its distinct character through a combination of intelligence, skills and expertise, the source of its capabilities essential for its long term survival (Purcell et al, 2005). Research has shown that human resource practices can significantly impact performance of a firm and therefore, AN’s HRM strategies should aim to support programs that improve its organizational effectiveness through the development of deliberate policies that would characterize clear vision and integrated values (Fombrun et al, 1984). The company should also focus on its human capital management in its human resource planning as the company’s success is depended upon employee input. AN’s HRM strategy should seek to ensure that the company obtains and retains a skilled, committed and motivated workforce through the assessment of the company’s people need for selection, the development of the people’s capabilities through nurturing, continuous training and development overall linking them to the needs of the business (Boxall 1992). Other key issues that should be incorporated in AN’s human resource planning to enhance workforce empowerment, commitment and overall company efficiency include knowledge management to enhance performance, reward management to express value for people’s contribution and competence, creation of harmonious relationships to reduce negative conflict and its effect on performance and efficiency, meeting of the diverse needs of the workforce, and bridging gaps between such plans and translated action to bring these policies to life (Sisson 1995). Models of human resource management that best fit AN’s approaches AN’s approach best fits the matching model of HRM, a concept of the Michigan school (Fombrun et al, 1984) which holds that, as its name suggests, an organization’s HR systems and structure should be managed in congruence with its strategy through four generic processes or functions including; selection which entails the matching of human resources to jobs; appraisal which entails performance management; rewards which are motivation schemes developed for the workforce; and, development inherent in the enhancement of the quality of employees. Also fitting is the Harvard framework model founded by the Harvard school (the fathers of HRM), which has its basis on the demand for a broad, comprehensive and strategic perspectives, laying central importance on line managers in ensuring alignment of competitive strategy with HR policies, and the importance of set policies governing workforce activities (Boxall 1992). This model recognizes a range of stakeholders and the importance of interest trade-offs, as well as, widening HRM context adding on the influence of employees among other influences. Conclusion Transformation through its re-engineering brought AN back to profitability in the first quarter of 1998 from its depth of debt in the late 1980s which is a clear testimony to the importance of strategic integration of human resource management which was the main strategy for its transformation to which this success can be attributed. AN, however, later suffered a loss in the last quarter of 2001 and first quarter of 2002 but the company endeavours is to manage the 21st century realities concerning air travel and to maintain its market share in passenger traffic both domestic and international. References Boxall, P., 1992. â€Å"Strategic HRM: A beginning, a new theoretical direction.† In: Human Resource Management Journal, 2(3), pp 61–79 Fombrun, C., N., Tichy, and M., Devanna, 1984. Strategic Human Resource Management. New York, Wiley. Purcell, J, K., Kinnie, Hutchinson, B., Rayton, and J., Swart, 2003. People and Performance: How people management impacts on organizational performance. CIPD, London. Purcell, J., K., Kinnie, Hutchinson, J., Swart, and B., Rayton. 2005. Vision and Values: Organizational culture and values as a source of competitive advantage. CIPD, London. Sisson, K., 1995. â€Å"Human resource management and the personnel function.† In J Storey (ed.) Human Resource Management: A critical text. Routledge, London. Storey, J., 1989. â€Å"From personnel management to human resource management.† In Storey, J. (ed.) New Perspectives on Human Resource Management. Routledge, London. How to cite Human Resource Analysis Of Air National, Essay examples

Understanding GDP Structure & Its Phases

Question: Describe the GDP Sturcture and Its Phases? Answer: Introduction Understanding GDP Structure Its Phases GDP is the market value of all final goods and services produced within the domestic territory of the country in an accounting year. If we sum the gross value added of all the firms of the economy in a year, we get a measure of the value if aggregate amount of goods and services produced by the economy in a year. Such estimates called Gross Domestic Product (GDP) There are just two periods in the world history during which there was a sustained growth in living standards. The first occurred in China between the eighth and the twelfth centuries, where a modest rate of growth took living standards to a level not attained in Europe until the eighteenth century. The Chinese experience demonstrates that the initiation of a growth process does not entail its continuation indefinitely, in spite of its early experience of growth, China entered the post-Second World War period as one of the world's poorest countries.(Sultan Ayoub Meo, 2013) The second phase of sustained growth is a very recent phenomenon and began in Europe. A sustained increase in living standards started in Europe sometime after 1500, but it was initially very slow. During the first two centuries it averaged only about 0.1 per cent per annum, which translates into a 22 per cent increase in income per capita over the entire period. Economic progress slowly gathered momentum, averaging 0.2 per cent per annum during the 1700-1820 periods, while from the early nineteenth century it began to grow by about 1 per cent per annum, allowing for a doubling in the standard of living in seventy years. Growth rates that consistently reached above 1 per cent per annum were only recorded after 1870. Yet the century and a quarter of sustained growth since then has had spectacular effects, transforming life for people in the countries that have stepped on to the growth elevator and creating a yawning gap between the 'haves' and the 'have nots. Body The dramatic increase in world inequality is illustrated by the fact that in 1900, average income per head in Western Europe, the USA, and Japan was about five times higher than in Africa; now it is fifteen times higher.(Gregg Marland, 2014) Fig. 1.6 uses the Penn World Tables 6.1 square to look at the distribution of average per capita income across countries in the world in 1960 and 2000. GDP per head of the population is measured at constant prices and at purchasing power parity adjusted exchange rates to enable average living standards to be compared across countries. In fig. 1.6, country averages of GDP per capita are measured relative to the United States, i.e. the USA = 1. In 1960 the world's poorest country, Tanzania, had an average per capita GDP level of $382 per annum, while China's was $ 682 and the United States had per capita GDP of $ 12,273. Today, Tanzania is still the world's poorest country at $ 482 per capita GDP while the United States enjoys $ 33,293 per capita GDP.(Sheedy, 2010) Analysis of The Growth Rates Average growth rate in the United States was about 1.8 per cent per annum from 1870 to 2000. If average growth rate in the USA had been on percentage point from lower over that period, and thus comparable to those achieved by India or Pakistan (over most of that period), its per capita GDP in 2000 would have only reached about $ 9,000 which would have a meant a current level of economic performance roughly similar to that of Mexico or Poland. If on the other hand the USA had enjoyed growth rates only one percentage point higher than the actual one and thus comparable to the average growth rate of Japan or Taiwan for most of that period, it's GDP per capita levels would have been almost four times higher than they are now. These examples illustrate how small differences in growth rates produce large effects in terms of the standard of living when they persist for longperiods of time.(Arthur, 2013) Fig. 1.6 shows on the left the frequency distributions of the average GDP per capita of countries of the world in 1960 and 2000, where average GDP is measured relative to the USA (=1). It is immediately obvious that the vast bulk of countries are to be found with levels of average income way below that of the USA. The so called kernel distribution in the right-hand panel is different method of using the same information presented in the histograms on the left. Looking at the right hand panel, we can see the way the world cross-country income distribution has changed between 1960 and 2000. First we notice a bimodal pattern, meaning that it now looks as if it has two peaks at the ends, while in 1960 it had only one. We also notice that the distribution in 2000 is slightly wider than it was in 1960. These are signs that over time as some countries have become richer and others poorer, the world has become increasingly more clustered between rich and poor countries.(Zhu, 2013) Analysis Of Distribution of Income A different question is what happened to the distribution of income across the peoples of theworld, rather than across countries. In the past twenty years, some of the most populous countries such as China and India have grown faster than the rich countries and this has had the effect of pulling large numbers of people out of poverty.(Powers, 2012) This hints at powerful changes that occurred over the past four decades as the world witnessed both growth miracles and growth disasters, coupled with a profound transformationof the political landscape and the collapse of many African economies under the burden of the AIDS epidemic. The extent of economic inequality between today's world economies becomes even more striking when we are reminded that in the developing world over 790 million people do not have enough food to eat and 1.3 billion people do not have access to safe drinking water. Almost half of the world'spopulation survives on less than $2 a day. In Asia the number of people living in poverty, on less than $ 1 a day, fell from 420 million to around 280 million even when taking into account the financial meltdown of the late 1990s. In Eastern Europe on the other hand the number of people living on less than $ 1 a day has increased by a factor of twenty.(Downie, 2011) Role Of various countries around the Economy Today most of the OECD countries together with some of the Asian economies find themselves at the top of the world's income distribution. In 1960 however we witness Latin American countries like Argentina, Uruguay and Venezuela in the top 25 countries, whereas none are in the top 25 in 2000. Similarly, some Asian countries like China, India, Indonesia and Pakistan that were in the bottom 25 countries in 1960 experienced sufficient growth to move well outside this group. Differences in economic growth rates have ranged from 6 per cent per annum for Taiwan to -1.8 per cent per annum for Zambia and have dictated the winners and losers of the last few decades.(Lancieri, 2009) In fig. 1.7 we plot the relative per capita incomes of economies in 1960 and 2000 against the 45 degree line. Points that lie relatively close to the diagonal represent countries that have seen very little change in relative living standards over the past few decades compared to the USA. Points that lie above the diagonal represent countries that have experienced positive relative rates of economic growth. The plot also shows that within the cluster of points in the lower left corner, representing the poor countries of the world, many have experienced deterioration in their relative position. Only very few countries that have had relatively low incomes per capita in 1960 have seen a significant improvement in their relative living standards, and can thus be identified as growth miracles. These form the loose cluster of points to the left of the 45 degree line and include most of the Asian economies but also Botswana, Mauritius, Cyprus and Romania. Countries represented by points to t he extreme right of the 45 degree line correspond to economies that have seen a deterioration of their relative position over the past few decades and are thus labeled as growth disasters. Notable examples include Chad, Iraq and Venezuela. Prospects are for the evolution of the income distribution Given the varied performance of countries asshown in fig. 1.7, we naturally face the question of what the prospects are for the evolution of the income distribution in the future. Specifically, is there any hope that the world's poorest economies will catch up with the world's richest ones? We construct fig. 1.8 by plotting the growth rate in per capita GDP over the period 1960 to 2000 against the log value of per capita GDP in 1960. This plot is a simple example of an attempt to explore the concept of economic convergence and corresponds to an old economic hypothesis that countries which start off poor ought to grow faster and thus catch up with the richer ones. If the countries that are initially poor are to catch up, there should be a negative relationship in the graph, with countries on the left hand side ( poor at the outset ) having the high growth rates ( located at the top ) and vice versa for countries that are initially rich. We also have plotted the best fit line correspon ding to the sample regression and we observe a small positive slope. However, we should note that the points are widely dispersed, and indeed if we perform a statistical test we obtain the result that the slope parameter is not significantly different from zero. Thus, we cannot confidently conclude that there is divergence on the basis of this data, but there is clearly no sign of convergence across countries.(Zimmermann, 2009) However, if we were to perform the same analysis on sub samples of the data set, such that the countries that we include are relatively similar in terms of their economic, social, political or historical experience we will obtain a strong negative relationship between the growth rate of income and the initial starting position, thus confirming the convergence hypothesis. Inflation Unemployment Employment rates are lower for women and for older people: this is the outcome of a combination of lower participation rates and higher unemployment rates. This is a common feature across the OECD countries. Nevertheless, there are interesting cross-country variations, the shortfall of the women's employment rate below that of men is least in the Nordic countries at around 10 percentage points or less; the shortfall is highest in the Catholic Southern European countries and Ireland at nearly 30 per cent points or more. For older people aged 55-64, the emolument rate shortfall as compared with those between the ages of 25 and 54 is lowest in Japan and Switzerland and highest in the continental economies of Austria, Belgium and the Netherlands In the light of stylized empirical facts of economic growth we can turn to the theoretical models. One place to begin is to focus on what determines the level of output per worker. In our discussion of the short and medium run, we focused on a single factor of production, labor. We assumed that the amount of capital requirement available to the worker was fixed. When we move tothe long run, we would expect differences in levels of output per worker across countries to depend on the amount of capital equipment available. As we shall see, Humancapital should also be included. Human capital refers to the abilities and skills that people can acquire. The term human capital is used to highlight the analogy with physical capital: investment only takes place if current consumption is sacrificed and resources are devoted to acquiring capital goods instead. Similarly, resources and time must be devoted to the accumulation of human capital through education, training or learning on the job. In addition to the quantity of factors of production available per worker, both technology and efficiency will matter as well Concept Of GDP GDP is the market value of all final goods and services produced within the domestic territory of the country in an accounting year. If we sum the gross value added of all the firms of the economy in a year, we get a measure of the value if aggregate amount of goods and services produced by the economy in a year. Such estimates called Gross Domestic Product (GDP) GDP = sum total of gross value added of all the firms in the economy. GDP includes the market value of all the items produced in an economy and sold legally through the markets. It measures the market value of bananas, onions, potatoes, grapes, movies, health care, haircuts, etc. Goods and services: GDP includes both tangible such asfood, cloth, houses, cars, etc and intangible goods such as haircuts, health care and house cleaning. When an individual buys a book from a shop, he is buying a good and its purchase price is a part of GDP. When an individual pays to hear music by a famous group he is buying a service, and the ticket price is also a part of GDP. Produced: GDP includes goods and services produced currently. It does not include transaction in goods produced in the past. Within a country: GDP measures the value of production within the domestic territory of a country. When an Indian citizen works in Britain, his production is part of Britain's GDP. Thus, items are included in a country's GDP if these are produced domestically, regardless of the nationality of the producer. In given period of time: GDP measures the value of production that takes place within a specified period of time usually an accounting year. GDP measures the economy's flow of income and expenditure per annum. GDP is the output of all the Indian enterprises located in India and GNP is the output of all the Indian enterprises whether located on India or abroad Growth Rates Of GDP Steady state growth is characterized by a constant output ratio and constant wage and profit shares in GDP. There is no growth of per capita GDP. A rise in the savings or investments rate or fall in the population growth rate leads to a period during which the GDP per capita grows as a consequence of the increasing capital intensity of a production, but growth dies out because of the role of diminishing return to the capital. The level of output per capita is higher in the steady state is higher, the higher is the savings or investment share, and the lower, the rate of population growth. If the government is able to keep raising the savings or investments rate, there will come a point at which this reduces welfare in the economy, where this is measured by the steady-state level of consumption per head. The savings rate that maximizes consumption per head is known as the golden rule rate.(Landefeld, 2008) The Solow-Swan model must be modified if it is to be consistent with the stylized fact of steady growth in per capita GDP. This is accomplished by including Harrods-neutral technological progress in the model: i.e. it is assumed that the productivity of labor is enhanced by improvements in technology on the existing capital stock that take place at a constant exogenously given rate. This modification allows for balances growth with rising GDP per capita.(ichikawa, 1992) Conclusion Growth rate is measured by the GDP growth rate. In the 1990s, the rate of growth was around average 3.5 per cent. The rate was slightly higher than in the year 1980s, the home country growth rate was below the OECD average during the year 1950s and in the year 1960s. As with the US, the home country suffered physical and various other destruction during the World War II, so as the result of war, the post war economic growth of the country was not so high rather it was too slow. By the early 1990s, the GDP had fallen by around 8 per cent which was below the OECD average. In the early 1990s, due to various reform measures, there was a rapid economic growth which was accompanied with the low level of inflation and decline in the level of unemployment. Reform measures included the reduction in the tariff level and various other trade barriers, improving the remuneration and employment condition of employees. These reforms increase the level of productivity in the year 1990s, unlike the U S, the accelerate rate in the home countrys productivity growth was very little in comparison to the growth of information technologies goods, in spite of the fact that the home country is an intensive user of information technologies goods. The growth rate after 1990s showed a relative increase during the 2000s(Hannesson, 2009) References: Arthur, J. (2013). Advance Statistics of GDP by State for 2013 by NAICS Sector. Bureau of Economics Analysis , 1-6. Downie, J. (2011). Measuring GDP. World Economics , 2. Gregg Marland, T. L. (2014). GDP: No one metric can rule them all. nature , 1-9. Hannesson, R. (2009). "Energy and GDP growth. International Journal of Energy Sector Management , 1-2. ichikawa, y. (1992). Efficient chemical synthesis of GDP-fucose. The journal of organic chemistry , 1-5. Lancieri, E. (2009). omparison of GDP. World Economics , 2-6. Landefeld. (2008). Taking the Pulse of the Economy: Measuring GDP. Journal of Economic Perspectives , 22. Powers, W. (2012). Growth of GDP. World Economics , 2. Sheedy, K. D. (2010). Debt and Incomplete Financial Markets: A Case for Nominal GDP Targeting. IDEAS , 1-4. Sultan Ayoub Meo, 1. A. (2013). Impact of GDP, Spending on RD, Number of Universities and Scientific Journals on Research Publications among Asian Countries. PMC , 1-3. Zhu, J. Z. (2013). The generally held belief that Chinas consumption is too low is a myth based on inadequate theory, a misreading of official statistics. World Economics , 1-10. Zimmermann, H. (2009). Multi colored GDP. World Economics , 1-15.