The Implementation Of Austerity Measures Economics Essay

The Implementation Of Austerity Measures Economics Essay The implementation of Austerity measures in Europe resulted into a recession in 2010/2011. However, Germanys economy continued with growth over the years 2011 and 2012 and although the Germany government has been known as a great advocate of Austerity measures, it has at times increased its expenditure but its growing revenue has worked to moderate the deficit unlike in many other European countries. In addition, Germany was able to maintain growing revenue to moderate expenditure increase as it never sought to stimulate its economy through tax cuts becoming a model of fiscal prudence which moderates deficits by keeping revenues high. (Euro stat, 2013) Germany is one of the largest economies in the Euro zone with a growing economy and low unemployment. The country was able to pull itself out of the global financial crisis and has maintained a booming economy and advocates Austerity measures for the peripheral economies in Europe. However, the country is currently experiencing high inflation due to its bid to aid the peripheral economies and having its economy currently stalling with stagnated industry sales and reduced foreign demand for its products. Five year trends Year GDP Billion Euros Unemployment % Inflation % National debt As % of GDP National deficit As % of GDP HICP % 2012 2,643.90 81.70 2011 2,592.60 6.00 2.30 80.50 -0.80 2010 2,496.20 7.40 1.10 82.50 -4.10 2009 2,374.50 7.50 0.30 74.50 -3.10 2008 2,473.80 7.80 2.70 66.80 -0.10 Source: Euro stat 149/2012. Debt vs. deficit and Austerity Debt refers to the amount that a government borrows to sustain its expenditure in the case where its spending are in excess of its revenue while deficit is the excess of budget spending above the available revenue. In relation to Austerity, deficit is more critical as the measures are sought to directly control the government spending hence the deficit by cutting on the expenditure. How Germany got into the situation For Germany, being in the current financial and fiscal crisis is both by bad luck and poor choices. When a common European currency was created in 1992, the control of Banking, Finance and Fiscal policy was left in hands of national governments; a system that succeeded in generating massive economic growth in Germany and Euro zone. However, the massive buying of the sub-prime loans system in US by the European Banking including Germany was one cause of the problem as the Germanys banks kept on buying on the US system even when the sub-prime market was collapsing in 2007. On the other hand, the inability of the other European peripheral countries to deal with the financial crisis resulted to the problems spill over to the Germans economy. This has negatively affected the country as it seeks to aid the economies out of the situation sometimes paying higher prices in terms of inflation. Who holds most of the debt With its total current debt as a percentage of GDP at 278%, Germanys non financial corporations and financials are the greatest holders of the debt with 87% each while the governments debt is 83%. On the other hand, households debt stands at 49%. This means that the largest holders of the Germanys debt are Financials and non financial Corporations followed by the government while households are the least debt ridden. Recommended steps: Finding a solution to the fiscal challenge facing Germany and other European countries has resulted to various remedies being fronted by different stakeholders ranging from the governments to the lenders and other European leaders. For Germany, the following has been recommended. Germany government The Germanys government in the leadership of Angela Markelel under the conservative Christians Democrat has since 2005 been adamantly insistent of Austerity programs. For instance, there was a proposed budget cut in 2009 in a bid to reduce the budget deficit by 80 billion Euros to a 3% of the GDP by 2014. The proposal involved reduction on welfare spending over a period of four years as well as raising taxes on nuclear plants operators and air travel. There was also a proposed cut on public sector payroll to a tune of 15,000 by the year 2014 as well as a reduction on military spending by cutting the armed services by up to 40,000 troops. In addition, the Germany government advocates the fiscal compact in which all the European countries are meant to maintain balanced budgets in order to stabilize the regions economy. (Pietras, 2009) Opposition Germans opposition has been against Austerity measures and in alternative recommending increased efforts to create jobs and spur economic growth in Germany and Europe as a whole by increasing government spending but retaining high government revenue. (Boston, 2012) Euro leaders European leaders are opposed to the Austerity measures and recommends implementation of fiscal policies that provide growth incentives that should accompany the budget slashing rather than the Austerity measures advocated by the Germany government. (Boston, 2012) European Central Banks/IMF/International banking houses /lenders Germans reaction to proposed Austerity package The Austerity measures have been faced with great resistance both from within Germany and outside. The Social democrats who are Germany governments opposition are opposed to the proposed Austerity measures as well as the ratification of the Austerity fiscal package for the European countries. The possible results of the measures including reduced welfare benefits and cut on jobs are facts that Germans take into consideration in their opposition to the programs which would deny welfare benefits to those who need them most at time when it is most needed. The wage earners are also likely to be the most affected hence their great opposition for the measures. Resistance for Austerity measures has also been widely felt from other countries like Greece where there were widespread street demonstrations as people voiced their opposition to the measures. In addition, elections in Italy were highly bent on voting out the proponents of the Austerity measures and voting in those who spoke out aga inst the measures. Outcome prediction and fairer effective alternatives recommendations Some of the limitations of the Austerity measures are the likely results including reduced GDP growth hence resulting to even great debt GDP ratio which undermines the countrys ability to service its debts hence the liquidity problems being likely to escalate to more solvency crisis. Austerity measures would also result into high unemployment as the programs advocates cutting several jobs in the civil service while the cuts on jobless benefits would negatively impacts on the welfare of the jobless. In addition, it would result to some stimulus such as business subsidies being done away with negatively impacting on Germanys competitiveness in the international market. Austerity measures would also result into low income in short-term while wage earners suffer most and long-term unemployment. Alternative fairer measures would be stimulus programs which would increase government spending hence debt but with continued retention of high revenue. By keeping the GDP growing, the debt GDP ratio would remain constant without hurting the economy and its people. Another alternative to the Austerity measures would be focus on investments in public infrastructure like health and education and jobs creation which should be funded through fair and reasonable taxation.

Bodyshop Brand and Branding Essay

1.Brand Overview The Body Shop is famously known for its ethical approach to business, fair trade, 100% vegetarian products and being against animal testing (thebodyshop.co.uk, n.d.). The company believes in following their five core values which are: to support community fair trade – using small medium sized suppliers, defend human rights – create an awareness of domestic dispute and child abuse, against animal testing, activate self-esteem – looking after their customers and their employees and lastly protecting the planet – reducing CO2 levels, electricity, gas and water (thebodyshop.co.uk, n.d). The Body Shop has also created their own charity, The Body Shop foundation that was launched in 1990, emphasising on their 5 core values. 1.1. Brand History Anita Roddick, a human rights activist and environmentalist founded the company in the United Kingdom in 1976. The first store was opened in Brighton; the store was on a small scale and only sold 25 different products. A spirit of environmental friendliness dominated the brand by encouraging its customers to recycle; this philosophy would remain its motto till present (thebodyshop.co.uk, n.d.). The Body Shop experienced rapid growth early on and its first overseas store was introduced in Belgium in 1978, by 1982 its growth increased to a rate of two stores opening per month. In 1984 the company entered the stock market and its shares grew in value at a very high rate, being nicknamed â€Å"The shares that defy gravity† (Entine J, 2007). In 1985 the company sponsored posters for Greenpeace, starting its own campaign â€Å"save the wale† a year later also for Greenpeace. In 1990 The Body Shop Foundation was introduced that funded human rights and environmental groups (The Body Shop International plc, 2012). These activities went to further establish its reputation as an environmentally conscious company, already cemented by its prohibition of animal testing on its products and successfully making animal testing illegal in the UK in 1998. By 1990 the company first opened in the United States, it had already expanded to 39 countries and had 2500 applications for a franchise. In 1994 the company launched its direct selling section, The Body Shop at home, expanding to other territories in later years. In 2006 the company was purchased by L’Oreal for  £652.3 million, the company was no longer independent, but managed to maintain its operation independently from the company. (The Body Shop International plc, 2012). 1.2.Product category The Body Shop sells a collection of 900 natural beauty products with the â€Å"inspired by nature† slogan (The Body Shop, n.d.). The Body Shop has a range of products, meeting various demands of customers. Products, which make up this range for women are, skincare, make-up, hair products, fragrance and body care, i.e. body butters. Men’s products consist of body care, skincare, fragrance, shaving and deodorant. The following report will be focusing on The Body Shop’s body butter, as some may regard the brand for being most famous for there body butters. The product category, which most suits The Body Shop as a brand, is health and beauty. A reason why The Body Shop gained such huge success in the health and beauty market since it began could be the reasoning of 100% vegetarian products that are free from animal testing (thebodyshop.co.uk, n.d). Other products, which are included in their portfolio, are seasonal products, for example, winter make-up products and limited addition Christmas body butters which carry fragrances such as ginger and cranberry. The brands online store indicates that the body butters are among their ‘best sellers’ (thebodyshop.co.uk, n.d). The Body Shop is classified as a high street retailer rather than a luxury brand retailer locating their stores in town centers, along with other high street retailers in beauty and cosmetics such as Boots, Superdrug and The perfume Shop. Competitors that pose a direct threat to The Body Shop are brands that promote environmental values such as, Origins, L’Occitane, Space, Molton Brown and Lush. 2.Brand Owning Organization The Body Shop was sold to L’Oreal in 2006 for an estimated sum of  £625 million (BBC, 2007), The Body Shop would directly work with the chairman of L’Oreal himself. Annual financial reports and forecasts would be presented as part of the L’Oreal annual reports alongside other businesses that the company owns. By L’Oreal having ownership of The Body Shop it has questioned the brands identity on the basis of their values, and this has affected the performance of The Body Shop which has been evidenced in L’Oreal’s 2012 annual report, In June The Body Shop had a total of 2,781 stores across the world; this had consisted of stores operating in Western Europe, North America and new markets (loreal-finance.com, 2012). Looking into the sales that The Body Shop have made in 2012, in the first half of 2012 they had made â‚ ¬373.9 million, however in the second half they have performed substantially lower that previous, totaling to â‚ ¬193.5 million (loreal-finance.com, 2012). The operating Profit of The Body Shop has come to a total sum of â‚ ¬11.6 million in 2012 (loreal-finance.com, 2012). Having shown the overall financial performance of The Body Shop from the previous year to the present, The Body Shop has shown some indication of lack of performance with a decreased sum of sales and profits. 3. Brand Value Proposition The Body Shop’s strategy has remained intact since the L’Oreal take over in 2006; unexpectedly considering L’Oreal is not associated with strong natural credentials. The Body Shop adopts a multi channel strategy which spans across stores, online and direct selling, prides itself on being â€Å"Green† and has five core values, against animal testing, using community fair trade, to activate self-esteem, defend human rights and protect the planet (thebodyshop.co.uk, n.d.). The Body Shop’s customers are more biased to women and to the under 25’s and the 45 – 54’s, who seek natural and healthy products. (Mintel.co.uk, 2008) Body care products such as the famous Body Butters are promoted to give functional benefits such as 24-hour hydration, leaving skin softer and smoother and providing a scent for the skin. Benefits of using their products on an emotional level could be your input to helping the environment, supporting communities in third world countries, moisturizing your skin with natural ingredients, which are good for the skin, and the idea of using a product, which is more exclusive than a brand such as Nivea. The overall perceived brand value of The Body Shop however differs from their brand identity, if you consider The Body Shop’s competitor Origins, they use potent plants, organic ingredients and 100% natural oils (Origins.co.uk, n.d.). L’Occitane uses ingredients sourced from local farming communities and sustainable development programs and uses packaging materials, which are the least polluting or already recycled (L’Occitane.com, n.d.). Lush’s green message seems ingrained in everything the company does, reflected in the minimizing packaging (Guardian.co.uk, 2011). This research shows that the body shop is not doing anything its competitors aren’t, the packaging the company uses is not recycled and the products are not as natural as they make out with artificial smelling scents and packaging which has not previously been recycled. The body shop is an established brand, being the first company to introduce fair trade to the beauty industry and prohibit testing on animals and has retained many of its loyal customers. The Body Shop doesn’t undertake huge advertising campaigns and promotions are narrowed to the retail outlets and online. The Body Shop’s essence or aura could be defined as beauty with a heart; they pride themselves on their values being at the heart of everything they do. (Bodyshop.co.uk, n.d.) The word ‘ethical’ would describe what The Body Shop stands for as it represents the brands values and identity. 4. Brand Communications Audit The Body Shop in relation to its body butter product line currently makes use of a number of communications channels, which are both internal and external in nature. The audit will now list the key communications with an indication of the detailed considerations underpinning the methods used: Corporate Website * The main internal communication for the body butter range may be seen as the corporate website. Here the communications are aimed at driving web-based sales as well as providing product information to both external customers and internal staff. Key information includes the features and benefits of the product; ingredients used and tips to maximising the benefits of the product. The website also allows customers to communicate with one another sharing reviews and tips. In addition, the website also features a number of key marketing â€Å"campaigns† which are aimed at driving awareness of the brands ethical values and policies as opposed to sales revenue. (thebodyshop.co.uk, n.d). Social Media Communications * One of the core communications to be used by The Body Shop in recent years is those, which take place through social media communication channels. In this case The Body Shop makes use of four major channels including Facebook, Twitter, YouTube and Tumbler. Product communities launched within Facebook have provided significant communications of the brands underlying values associated with ethical sourcing and production. In addition, the method also encourages electronic word of mouth communications (EWOM) to take place (Belch and Belch, 2012), with consumers being able to share reviews and information about key product lines such as the body butter range. In this case, again the communications method used may be seen as adopting an integrated approach to communications (Yeshin, 2006) with social media channels being linked to the company’s website and vice versa. Television Advertising * To date, Body Shop has maintained a policy of minimising television advertising, partly due to the underlying beliefs of the founder of the business who believed that such advertising came into conflict with the ethical message of the brand (Rusch, 2012, Marketing Week, 2010). This may however be an element, which changes in the future since the acquisition of the Body Shop on the behalf of L’Oreal, a company that uses significant levels of television advertising. Key communication campaigns have seen the use of an integrated approach to marketing with the use of a mixture of in store advertising material and outdoor printed materials such as poster hoardings and billboards. Such communications mix was adopted in the recent â€Å"love your body† campaign, which aimed to tap into the public debate on the issue of female self esteem and the perception of the physical body. In this case, the underlying message was designed to encourage consumers to enjoy life regardless of physical appearance (Thumped, 2012). 5. Product Category Audit The table above shows the market value sales of body care within UK. As you can see from the chart above the market for body care has declined since 2010 and a further decrease is expected in 2012 by 2.1%, which makes it  £326m equal to 2009 figures (Mintel, 2011). However the prediction for the market is bright as you can see the sale figures are due to increase by 2017 reaching  £346million. The weakening sales of the body care market could be due to difficult economy and slowing of spending, it also seems as though consumers would substitute spending on body care for beauty products seen as more essential such as facial care, hair care and especially make up (Mintel, 2012). The Body shop is a specialist cosmetic and toiletries brand and the market share for body shop within this market is 6.4% which makes them fourth largest within the market behind Superdrug, The Perfume Shop and Savers H&B. The Body shop is not only a body care brand, so within the 6.4% of the market share they offer many different kinds of products such as hair care, facial care, fragrances and more. The latest method The Body Shop used in an aim to increase their market share was partnering with Sephora in order to increase brand awareness within the market. (Mintel, 2011) Since L’Oreal took over The Body Shop as a brand, it has shown no growth within the market, suggesting L’Oreal fails to show any devotion to make The Body Shop a leading or major player within the health and beauty market. The Lily Cole Cruelty Free Makeup Collection is one of the latest developments of The Body Shop, which they are hoping can give them an edge over their competitors. The Body Shop has also recently introduced a loyalty card scheme in order to maintain their competitiveness in the market. The increase in ethical consumerism has resulted in rising environmentally friendly brands entering market; therefore customers are expecting more from companies who are ethical. The change that may affect the market in coming years is technology because companies such as Boots are already adapting to the changes for example a â€Å"Click and Collect† where the customer can purchase a product online and collect it from a store of there choice free of charge (Boots.co.uk,n.d.).

Law Reform on Native Title Essay

Indigenous people as defined by the Cobo report (1987) are â€Å"a group having a historical continuity in pre-colonisation societies with a distinct culture now a minority in society today†. Throughout history and times of colonization change has been seen in a plethora of ways. Importantly for Australia has been the take over of land by the British under the doctrine of Terra Nullius, which means meant that if land was populated by â€Å"backward peoples†, as in it was â€Å"unoccupied† it was considered as if it were unpopulated, as there was no formal organised system of living or Government. The common law term for this is acquisition of settlement. There are many cases in our history that have been both effective and ineffective: The Gove Land Rights Case, Mabo I & II and the Native Title & Amendment Acts, which have had the purpose of creating justice, and just outcomes through law reform, with a particular focus on Native Title. The Bark Petition and Gove Land rights case sought to have land rights recognised by the Australian Government (1971). The argument provided was that the yolngu people had a complex social and legal system, a Government of laws, not of men. Justice Blackburn rejected the argument, as Australia had been settled and established by the British, so the Doctrine of Reception existed. With no case of this type in Australia’s history, it was a huge step forward in creating justice, but also meant there was nothing comparable to it. Consequently, it was a big step forward as it was the first time a Legal Fiction of Terra Nullius, which overturned many previous assertions and provided a way forward and a path for the Mabo cases. This was the first step in a long law reform process, none the less providing a developing just and effective outcome for Aboriginal people. Restriction on movement for Aboriginal people provided many problems, including loss of connection to land, spirituality and ancestors. In the eyes of Eddie Mabo, this was an infringement of his basic human rights. In 1982, Fr. David Passi, James Rice and Eddie Mabo began an action, which saw a case before the High Court of Australia in Mabo v. Queensland (No.2). Mabo v. Queensland (No.1) saw the 3 men declare that: the Meriam people were entitled to the Murray Islands and that the State of Queensland had no right to extinguish the Meriam people’s title to the Murray Islands, and that a  system of Native Title had been established, against the Queensland Coast Islands Declatory Act (1985), which attempted to extinguish Native Titles. The final decision in Case1 did not address the issue of whether native title existed, but found Queensland was trying to restrict the land rights because of their race. Mabo v. Queensland (No.2) required the court to consider that: if Australia was truly terra nullius at the time of settlement, then the Islanders had no case, on the other hand, if the English had ‘invaded’, then the original inhabitants would be recognised. The ruling showed a majority of six to one, and the High Court ruled that the Murray Islanders had the right to the possession, occupation and enjoyment of traditional lands. This was based on two key points: firstly that the declaration of Terra Nullius was not valid, so native title could not exist, and secondly that native  title existed wherever Indigenous people had occupied the land prior to European settlement. This was a major step forward in Australia’s history as well as in creating and effectively achieving justice in regard to native title. As apart of a broader picture and a law reform process, it showed a big step toward the future as it meant that Terra Nullius was overturned which meant furt her reform could take place, setting precedent for the overall goal of achieving justice as well as the broader society in terms of recognition. Following Mabo v. Queensland (No.2), the Commonwealth Government passed the Native Title Act (1993), which saw the official recognition of native title. Native Title is defined in Section 61 of the Act as the rights and interests of Aboriginal and Torres Straight Islanders observed under traditional custom and recognised by the common law of Australia. This important step in changing Australian law and achieving justice for Aboriginal people was followed by the Native Title Amendment Act (1998), which saw changes to The Native Title Act after a push by the Howard Government in regards to the response to the Wik case and meant it harder to make registration of a claim and to increase interests of miners and pastoralists. This was met with much criticism, including the United Nations committee, on the Elimination of All forms of Racial Discrimination that found they breached the International Convention on the Elimination of all Forms of Racial Discrimination. This is an example of law reform once again,  to fir with changing attitudes, values and behaviours, as well as to reinforce and clarify parts of the act such as pastoral lease’s. It shows elements of positive and negative reform, as on one hand it shows a continuing, effective process, and on the other hand shows a change in the original intention. The effectiveness of law reform process in achieving just outcomes in regard to native title has shown to be effective through a constant law reform process. This process has seen the development of new ways, beliefs and values, as well as the abolishment of the doctrine of terra nullius, creating justice for Indigenous Australians then, now and into the future.

The Definition of Deviance Amplification

Deviance amplification is a process, often performed by the mass media, in which the extent and seriousness of deviant behavior is exaggerated. The effect is to create a greater awareness and interest in deviance which results in more deviance being uncovered, giving the impression that the initial exaggeration was actually a true representation. Leslie T. Wilkins originally reported on the process of deviant amplification in 1964 but it was popularized by Stanely Cohens book  Folk Devils and Moral Panic,  published in 1972. What Is Deviant Behavior? Deviant behavior is a broad term because it covers anything that goes against social norms. This could mean anything from minor crimes like graffiti  to more serious crimes like robbery. Adolescent deviant behavior is often a source of deviance amplification. Local news will sometimes report on a something like a new teen drinking game, implying it is a popular trend instead of the actions of one group. This kind of reporting can sometimes start the trends they were reporting on although each new act will add credence to the initial report.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Deviant Amplification Process Deviant amplification usually starts when one act that is either illegal or against social morals that wouldnt normally be worth of media attention becomes newsworthy. The incident is reported on as being part of a pattern. Once an incident becomes the focus of the media, other similar stories that normally wouldnt make the news fall under this new media focus and become newsworthy. This begins to create the pattern that was initially reported on. The reports can also make the action seem cool or socially acceptable, leading to more people to try it, which reinforces the pattern. It can be hard to prove when deviant amplification is happening because each new event seems to validate the initial claim.   Sometimes citizens will pressure law enforcement and government to take action against the perceived  deviant threat. This can mean anything from the passage of new laws to harsher punishments and sentences on existing laws. This pressure from the citizens often requires  law enforcement to put more resources into an issue that it actually warrants. One of the main problems with deviance amplification is that it makes a problem seem much larger than it is. Which in the process can help create a problem where there was none.  Deviance amplification can be part of a moral panic but they do not always cause them.   This hyper-focus on minor issues can also cause communities to miss larger issues they need to be focusing attention and resources on. It can make social issues harder to solve because all of the focus is going to an event that was artificially created. The deviant amplification process can also cause certain social groups to be discriminated against if the behavior is tied to that group.