Immigration in Lebanon Essay Example

Immigration in Lebanon Paper Term Paper of English 102 Causes of Immigration In Lebanon Ahmad C. Halwany ID#: 2008 03 653 Lebanese American University Abstract For a great period of time emigrants from Lebanon have been establishing communities throughout the world , and have been talking a lot about migration, until the number of Lebanese people outside Lebanon became greater than the double the number of Lebanese citizens. The Lebanese migration seems to have several principal causes. The first one is the economic causes based on the lack of work opportunities and poverty. The second one is the social cause that concerns the overpopulation, the insecurity and the lack of security programs. The third one is the weakness of the academic level in Lebanon where the attraction of the destination countries to the Lebanese people and the lack of experimental fields and the presence of poor managements in the domain. Hence, how are those causes really affecting the Lebanese migration? Leaving his country is it the solution? Migration is a very old action practiced internationally, where people migrate carrying a message to other populations or searching for better conditions of survival. According to Elizabeth,B (2003), â€Å" Arabs are not the only people to leave their land searching for new chances in life†(p. 17). By our century, the rule of migration was set to be that people of the third world are the immigrants to the rich states. This truth is the case of the Lebanese immigrants that are expanded in a lot of foreign lands such as the United States of America, We will write a custom essay sample on Immigration in Lebanon specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Immigration in Lebanon specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Immigration in Lebanon specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Australia , Arab Gulf region , European countries and others. Hence, immigration in Lebanon is induced by reasonable factors based on economic, social and academic levels. First of all, one of the important causes of immigration in Lebanon is the economic cause. It includes two essential points like the lack of work opportunities and the poverty in the country. Starting with the fact that the standard Lebanese wage of a normal employee is relatively not enough for a man to afford a good lifestyle for his family and himself. The opposite conditions in the rich countries will attract him for migration. According to Douglas, S. (1990), â€Å"Because of low work opportunities in poor countries and the fact that relatively the wages in the rich countries are higher that in the third world immigration is to be the best resolution for survival. † (p. 60). Equally important, the statistics of Lebanese that migrated for the same reason as preceded are high. â€Å"The total number of Lebanese s who migrated to the USA from 1991 to 2000 is hundred and two thousands Lebanese students† (Tabbara,R, 2001. )(Method 3 section, table 1). In addition to the number of immigrants, the percentage of jobless people is far above the ground, where more than half of the Lebanese are unemployed and they consist of two groups of people, whether they are not working and searching for work or they are not occupied and not looking for a job. According to Thomas, E. (2003),† In a sample of 200 people, the percentage of unemployed people is more than 50 %†. ( Disable people and employment section, table 1). Still, one of the causes of unemployment and then a cause of migration is the truth a lot of foreigners occupy the job market in Lebanon. They come from different surrounding countries and are preferred by the Lebanese employer because they are less salaried than a Lebanese worker. According to Haddad, (1996),† The labor market in Lebanon is somehow opened to foreigners more than Lebanese especially in the construction field and in informal services sectors†. (Employment Section, para . 1). Furthermore, concerning the other crucial sub cause, poverty plays an important role as an inducer for migration in Lebanon. It seems to be an important situation of misery that pushes the poor person to search for a way to exit his environment. And Lebanon appears to have a lot of regions with extreme poverty , and this region is not only concentrated in only one region but a lot more, and statistics of poor people living in these areas are also elevated. As for Haddad, (1996), . † Poor people living in the urban regions such as Beirut, Tripoli, Zahle , and others work in the civil service ( 31% that live under the poverty line), in industry ( 26%) . They are about 750,000 where 90,000 of them are extremely poor. â€Å"(employment Section, para . 1). Last , as for poverty, salaries differ from a country to another because of life style , life demands and needs. However, in Lebanon, the average wage that a family earns monthly does not seem to be sufficient for the whole demands. For example transportation, eating, clothing, lodging, etc. This is true essentially because almost everything is getting more expensive while the salary is remaining unchanged. This alone is not a major problem facing the reality that a lot of people earn even less than this average income. For illustration and according to Haddad, A. (1996), â€Å"In Lebanon , the average wage for a family of five persons that lives moderately is 618$ per month; however, a high percentage of Lebanese people earn less and are considered as poor. (employment Section, para . 1). Second of all, Lebanese immigration is also caused by some social causes based on population matters, instability and deficiency of some security programs. Lebanon, comparing to other countries is an overpopulated country especially in its capital Beirut and some of the suburbs. They have a relatively high p ercentage of the population density, the fact that is supported by the claim of Korfali, (2007), â€Å"The overpopulation of the Lebanese capital and its suburbs is relatively high where its residence is up to 33% of the Lebanese population † (Abstract section, para. ). Not only in these regions, but the density of the population in Lebanon are also high in other sections of the country â€Å"The disproportional extend of the population between the capital of Lebanon, Beirut, and the coastal regions is permitting hazardous crisis in the population density, causing a dreadful public consequence on the Lebanese citizens is believed that population densities vary from 1,610 person/km2 in the coast, 440 person/km2 in Mount Lebanon, and 260 person/km2 in the South, to 120 person/km2 in Bekaa. Social Aspects of Sustainable Development in Lebanon,1997). † (Status section, para. 1). Additionally, instability is also one of the major social causes of the immigration. In fact, t he forced migration is a part of this instability where people had problems and critical situations during the wars period in order not to broaden these problems. In 1989, Abou-rjaili,k. claims that â€Å" The type of migration that took place after the 1975’s war in Lebanon is a forced migration , and it was done in order to avoid some fights and problems †. Abstract section, para. 1). Besides, Lebanon witnessed a lot of wars for example the last war were in the 2006 and a lot of before. The point is that these wars were almost all against Israel , the country that has the same borders with Lebanon. Being till now the Lebanese enemy , Israel keeps on being an element of threatening to the Lebanese stability. Actually, the last warning aimed to Lebanon was lately, â€Å" In the sixth of August 2009, Barak threatened Lebanon of attacking it in case if Hezbollah was a member in the new Lebanese government. (The Israeli Warnings to Beirut , 2009). (Para. 1). Moreover, th e presence of multi religions in Lebanon seems to be another social cause of our topic in some places. That may be true because of the fact that the Lebanese war of 1975 was between Lebanese but from different religions. And this can be named as a cause based on the declaration of Faour, D. (2007), â€Å" The diversity and the wide variety of religions in Lebanon tend to create certain unsteadiness. (Para. 4). † As well as , Lebanon as a government has an important scarcity towards the Lebanese population. This shortage can be named as a chief cause of the Lebanese immigration. For example , the Lebanese people do not benefit from security programs such as unemployment programs where the government is responsible of taking care of the unemployed citizens. In addition, one of these programs that lacks in Lebanon is the old-age security program where the government takes charge of the old persons after their retirements. The same as Sibai, A. declared in 2004, â€Å"Lebanon still lacks the universal old-age security programs. † ( health care and insurance section, para. 3). At last, immigration is highly influenced by the academic level in Lebanon which is relatively feeble in comparison to the educational level in other developed countries. This can be easily shown by the high number of the Lebanese travelling in order to study abroad. For illustration, two out of five of my brothers are migrants to the United States of America for studying. One of them just wanted to reach a better degree in order to come across a better position in his career. The other one left his country because the major he wanted is not available in none of the Lebanese universities and it is the aeronautical mechanical engineering. Two out of five is a high ratio relatively. And a study done by Tabbara,(2001) show that the number of migrating student is high â€Å"The total number of Lebanese students who migrate to the USA from 1991 to 2000 is above hundred and two thousands of Lebanese students†. (Method 3 section, table 1). Besides, many of these graduates or undergraduates students in Lebanon get out of their homeland targeting countries with best universities in the world. Such as we can conclude from the â€Å"2010 WORLD UNIVERSITY RANKING† ,(2010), â€Å"In the 2010 ranking of the best 200 universities of the, none of the Lebanese universities was listed†. PP. 1-7). Next to this fact is the truth of travelling to countries which are stabilized in their security in order to easily find a job after graduating, and not waiting a long period of time being a jobless. Namely, â€Å"noting that the Lebanese country is not very stable in its security, affecting negatively the job market, Le banese students take the choice to continue studying abroad in order to immediately work after graduation†. (Canada gladly accepts highly qualified refugees from Lebanon,2006 para. 2). Away from this cause, the poor managements and the lack of experimental fields reside to be another factor encouraging the immigration of the Lebanese students. As university students in Lebanon, we almost all plan to continue our higher studies in one of the best universities of the developed countries. My brother is an example of these planners, but when he left seeking for a Masters in Business in London , he had a lot of offers from the United Arab Emirates that attracted him to work with them after graduation. And so he did. Now he is one of the immigrants and he doesn’t come to Lebanon unless for few days a year. This is the case of a lot of Lebanese that migrate for better education. Rachel,M. F. reinforce this statement by saying â€Å"More benefits and additional education are acquired while studying abroad. (2000). (para. 1 ). Not only a high education is acquired out of the country but also a better experience in a job. A lot of students migrate just for having a experience in his job field and end in staying there. As the case of my cousin who went into the petroleum studies in Lebanon and went to the Kingdom of Saudi Arabia for experience, and now he has been working there for years. Lack of experiment fields also affects the Medical students. As Elie,(2006), explains â€Å"Training abroad, of the Lebanese Medical students, will give them a better advantage than training in Lebanon. The experience acquired will oversupply the job market in Lebanon†. (abstract section, para. 1 ). The last, sub cause exists in the lack of sufficient knowledge about a certain background. There are several jobs in Lebanon that are not given a good consideration in order to ameliorate the career. The same is the fact of the nursing in Lebanon. According to El-Jardali,F. 2008), â€Å"The cause of migration of the Lebanese nurse students is a weak management and a lack of knowledge about the context†. (abstract section, para. 1). In conclusion, the Lebanese migration has several foundations based on many of economic causes such as unemployment and poverty, social causes like the overpopulation, the instability of the country’s security and the shortage in the securi ty programs, in addition to the academic level limitations based on the strengths of the destination countries and the poor management accompanied with the lack of the experimental fields of this level. Now as almost a lot of the crucial causes of the Lebanese migration are diagnosed and knowing that it’s very difficult to stop this migration, will the Lebanese government assisted by the Lebanese people be able to find solutions to these causes in order to at least lessen from the bad consequences? REFERENCES BOOK 2 Boosahda, E. (2003). Arab-American faces and voices : The origins of an Immigrant Community. Austin , TX , USA : University of Texas Press . Muhammad A. F. (2007). Religion, demography, and politics in Lebanon Middle Eastern . . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Studies. Volume 43 , issue 6, pp 909-921. DATABASES: 5 El-jardali, F. ; Dumit , N. ; Jamal,D ; mouro,G. October,2008. Migration of Lebanese nurses : A questionnaire Survey and secondary data analysis . Vol. 10 . pp 1490-1500. Retrieved march 4/2010 from academic search Premier from http://web. ebscohost. com 15 Abou-rjaili, K. ( September,1989). The forced migration of population inside Lebanon , 1975-1986. Retrieved April 8, 2010 from PubMed from http://www. ncbi. nlm. nih. gov/pubmed/12179328 19 Lakkis , S. (April,2003). Disability and livelihoods in Lebanon. Retrieved April 8,2010 from http://web. bscohost. com 17 Unknown. (August 2009). The Israeli warnings to Beirut. Retrieved April 8, 2010 from †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Powersearch Document from www. Galegroup. com 24 Akl, E. A. (November 2006). Why are you draining your brain? factors underlying decisions of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . graduating Lebanese medical students to migrate. Retrieved on April 22,2010 from †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Science Direct from www. sciencedirec t. com 26 Unknown. (August,2006). Canada gladly accepts highly qualified refugees from Lebanon from www. workpermit. com WEBSITES: 8 Massey, DS. (1990). The social and economic origins of immigration. Retrieved March 4/2010 from www. jstor. org 9 Freiedlberg, R. M. (2000). You can’t take it with you? Immigrant assimilation and the portability Of human capital. vol18. num 2. (journal) 10 †¢Facts about Lebanese emigration(1991-2000) by Information International. (November,1-7/2001). Retrieved March 30,2010 from http://www. information- international. com/pdf/emigration_report_english-1. pdf 11 University Web Ranking. (2010). Top 200 Colleges and Universities in the world. Retrieved March 31, 2010 from http://www. 4icu. org/top200/ 12 Haddad, A. (summer 1996). The Poor in Lebanon. Retrieved April 1,2010 , from http://www. lcps-lebanon. org/pub/tlr/96/sum96/poor_in_lebanon. html#RTFToC2. 18 Korfali, S. ( December, 2007). Assessment of domestic water quality: case study, Beirut, Lebanon. Retrieved April 8, 2010 from http://www. springerlink. com/content/r421w23j50161r6j/ 20 Sibai, A. M. (2004). Population ageing in Lebanon: current status, future prospects and Implication from policy . Retrieved April 13, 2010 from www. who. com 21 Unknown. (April 1997). Social aspects of sustainable development in lebanon. Retrieved April 13, 2010 from www. un. org

Australia WW1, WW2 essays

Australia WW1, WW2 essays With reference to World War 1 and World War 2, evaluate the extent to which they have been important in shaping Australian Australian society before the "Great War" was a mixed society, consisting of mainly Anglo Saxon and Aboriginal decent. It was mainly made up of primary production and it was very basic, but hard living. There was a strong belief in social and political democracy. Australia was seen as a land, where hard work and equal opportunity could overcome class distributions and enable the individual to gain a rightful place in society. There were many people who struggled to survive in the coutry and some had to move into the cities, but because hard labour was valued, most decided to stay. Australian women weren't the fancy dress and dance party type. They worked hard and often were exploited. Due to this egalitaraianisam there were fewer social classes and barriers which meant that the aristocrats were unpopular. Australia was still very loyal to Britain and saw her as the "Mother Country" which needed help. In 1914 Andrew Fisher announced that Australia would support Britain to "the last man and the last shilling." Ten days later the Australian Imperial Force (AIF) was formed and basically consisted of volunteers under the command of the British commanders. The Australians fought in The Pacific, the Middle East and the Western Front. Australia entered WW1 as a united nation and left, a divided nation, Australia entered WW2 a divided nation and left united nation. WW1 plays a big role in shaping the Australian image both at home and aboard. Both WW1 and WW2 effected the shaping of Australian society so much so that it made us the coutry that we are today. The "Great War", almost bound to happend caused australia great casualties ...

How to write a dissertation Assignment Example | Topics and Well Written Essays - 3000 words

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Discuss the rationale for investing in nutrition for the under 5s. Does this lead us to the conclusion that it is not worth investing in education interventions for older children - Essay Example Most are also likely to have experienced illnesses and then died at an early age. The research also shows that this lead to income loses in their lifetime. This may lead one to believe that investing in older children’s education is also worth as compared to nutrition. This paper will discuss the rationale for investing in nutrition for the under 5’s and argue that this does not lead to the conclusion that it is not worth investing in education interventions for older children. Healthy children get smart brains. Hence, they get educated well and bring income to a country. When the younger generation is educated, it may invest in the future businesses of a country. This may lead to the creation of a higher national income in the economy. Another advantage would be a reduction of poverty in the future. This is because as this is a younger generation when grown up they would be well prepared to create businesses. Investing in older children’s education should thus be encouraged (Naudeau, 2011:3). Investing on nutrition of children under the age helps children are healthy to be healthy and prevents mental retardation. Mental illnesses bring adult diseases to these individuals when they grow older later in their lives and makes children to be slow learners. Research evidence shows that adult illnesses are more prevalent among those who experienced adverse problems when they were young. This thus shows early life interventions among children should be done to promote heath of individuals. Apart from retardation, bad health also leads to physically challenged children. This hence makes them reluctant to work thus reducing how they work. This issue in turn makes them fail to bring income to a country and to themselves too (Kogali & Krafft, 2015:3). It also helps in preventing certain illnesses that may affect them in future. An example of the illnesses that are associated with poor early childhood nutrition is obesity. The

Introductory chapter needs some more info Essay

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Regulatory Frameworks of Indias Industrial Policies

Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave Regulatory Frameworks of Indias Industrial Policies Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave

Death of a Saleman †Happy Loman Essay

Happy shares none of the poetry that erupts from Biff and that is buried in Willy—he is the stunted incarnation of Willy’s worst traits and the embodiment of the lie of the happy American Dream. As such, Happy is a difficult character with whom to empathize. He is one-dimensional and static throughout the play. His empty vow to avenge Willy’s death by finally â€Å"beat[ing] this racket† provides evidence of his critical condition: for Happy, who has lived in the shadow of the inflated expectations of his brother, there is no escape from the Dream’s indoctrinated lies. Happy’s diseased condition is irreparable—he lacks even the tiniest spark of self-knowledge or capacity for self-analysis. He does share Willy’s capacity for self-delusion, trumpeting himself as the assistant buyer at his store, when, in reality, he is only an assistant to the assistant buyer. He does not possess a hint of the latent thirst for knowledge that prov es Biff’s salvation. Happy is a doomed, utterly duped figure, destined to be swallowed up by the force of blind ambition that fuels his insatiable sex drive. Character Analysis Happy might as well be Willy Jr., because this apple hasn’t fallen far from the tree. Though he is relatively successful in his job, he has his dad’s totally unrealistic self-confidence, and his grand dreams about getting rich quick. Like Biff, but to a lesser extent, Happy has suffered from his father’s expectations. Mostly, though, his father doesn’t pay that much attention to him. Willy was always a bigger fan of Biff. Happy, maybe because he always felt second best, has more of a desire to please his father. Despite his respectable accomplishments in business, and the many, many notches on his bedpost, Happy is extremely lonely. Happy is competitive and ambitious, but these feelings are misdirected. Unable to compete on his own terms in the business world, Happy blindly pursues women – taken women – purely for the sake of doing so. Looks like he’s taken his sense of competition to the realm of sex. Of course, this, much like the world of business, fails to satisfy him. Most disturbing for Happy is the fact that he can’t figure out why all this isn’t working. He’s followed the rules, done all the right things, yet Happy just isn’t happy. His name highlights the irony of his predicament. If you consider the fact that parents name their children, you could say that Willy foolishly bestowed the nickname on his son in yet another display of misguidance and delusion. Nice. Just as the saddest part of Willy’s suicide is his continued delusion, the saddest part of Happy’s ending is his own persistent misbelief. Still driven by what he feels he should want (money, a wife), he sticks to Willy’s foolish dreams to the bitter end. Happy Loman Hap is the Loman’s youngest son. He lives in an apartment in New York, and during the play is staying at his parent’s house to visit. Hap is of low moral character; constantly with another woman, trying to find his way in life, even though he is confident he’s on the right track. Hap has always been the â€Å"second son† to Biff and tries to be noticed by his parents by showing off. When he was young he always told Willly, â€Å"I’m losin’ weight pop, you notice?† And, now he is always saying, â€Å"I’m going to get married, just you wait and see,† in an attempt to redeem himself in his mother’s eyes. Hap also tries to be on Willy’s good side and keep him happy, even if it means perpetuating the lies and illusions that Willy lives in. In the end of the play, Hap cannot see reality. Like his father, he is destined to live a fruitless life trying for something that will not happen. â€Å"Willy Loman did not die in vain,† he says, â€Å"†¦He had a good dream, the only dream a man can have – to come out number one man. He fought it out here, and this where I’m gonna win it for him.† Death of a Salesman By Arthur Miller Character Analysis Happy Loman Happy is a young version of Willy. He incorporates his father’s habit of manipulating reality in order to create situations that are more favorable to him. Happy grew up listening to Willy embellish the truth, so it is not surprising that Happy exaggerates his position in order to create the illusion of success. Instead of admitting he is an assistant to the assistant, Happy lies and tells everyone he is the assistant buyer. This is Willy’s philosophy all over again. Happy also relishes the fact that â€Å"respectable† women cannot resist him. He has seduced the fiancà ©es of three executives just to gain a perception of pleasure and power. He thrives on sexual gratification, but even more than that, Happy savors the knowledge that he has â€Å"ruined† women engaged to men he works for and also despises. He states, â€Å"I hate myself for it. Because I don’t want the girl, and, still, I take it and — I love it!† Happy is similar to Willy in two ways. Both deny their positions and exaggerate details in order to aggrandize themselves, and sexual interludes are the defining moments of both of their lives. Willy’s life revolves around his attempt to forget his affair with the Woman, while Happy’s life revolves around an active pursuit of affairs with many women. Death of a Salesman addresses loss of identity and a man’s inability to accept change within himself and society. The play is a montage of memories, dreams, confrontations, and arguments, all of which make up the last 24 hours of Willy Loman’s life. The three major themes within the play are denial, contradiction, and order versus disorder. Each member of the Loman family is living in denial or perpetuating a cycle of denial for others. Willy Loman is incapable of accepting the fact that he is a mediocre salesman. Instead Willy strives for his version of the American dream — success and notoriety — even if he is forced to deny reality in order to achieve it. Instead of acknowledging that he is not a well-known success, Willy retreats into the past and chooses to relive past memories and events in which he is perceived as successful. For example, Willy’s favorite memory is of Biff’s last football game because Biff vows to make a touchdown just for him. In this scene in the past, Willy can hardly wait to tell the story to his buyers. He considers himself famous as a result of his son’s pride in him. Willy’s sons, Biff and Happy, adopt Willy’s habit of denying or manipulating reality and practice it all of their lives, much to their detriment. It is only at the end of the play that Biff admits he has been a â€Å"phony† too, just like Willy. Linda is the only character that recognizes the Loman family lives in denial; however, she goes along with Willy’s fantasies in order to preserve his fragile mental state. The second major theme of the play is contradiction. Throughout the play, Willy’s behavior is riddled with inconsistencies. In fact, the only thing consistent about Willy is his inconsistency. From the very beginning of Act I, Scene 1, Willy reveals this tendency. He labels Biff a â€Å"lazy bum† but then contradicts himself two lines later when he states, â€Å"And such a hard worker. There’s one thing about Biff — he’s not lazy.† Willy’s contradictions often confuse audiences at the beginning of the play; however, they soon become a trademark of his character. Willy’s inconsistent behavior is the result of his inability to accept reality and his tendency to manipulate or re-create the past in an attempt to escape the present. For example, Willy cannot resign himself to the fact that Biff no longer respects him because of Willy’s affair. Rather than admit that their relationship is irreconcilable, Willy retreats to a pre vious time when Biff admired and respected him. As the play continues, Willy disassociates himself more and more from the present as his problems become too numerous to deal with. The third major theme of the play, which is order versus disorder, results from Willy’s retreats into the past. Each time Willy loses himself in the past, he does so in order to deny the present, especially if the present is too difficult to accept. As the play progresses, Willy spends more and more time in the past as a means of reestablishing order in his life. The more fragmented and disastrous reality becomes, the more necessary it is for Willy to create an alternative reality, even if it requires him to live solely in the past. This is demonstrated immediately after Willy is fired. Ben appears, and Willy confides â€Å"nothing’s working out. I don’t know what to do.† Ben quickly shifts the conversation to Alaska and offers Willy a job. Linda appears and convinces Willy that he should stay in sales, just like Dave Singleman. Willy’s confidence quickly resurfaces, and he is confident that he has made the right decision by turning down Ben’ s offer; he is certain he will be a success like Singleman. Thus, Willy’s memory has distracted him from the reality of losing his job. Denial, contradiction, and the quest for order versus disorder comprise the three major themes of Death of a Salesman. All three themes work together to create a dreamlike atmosphere in which the audience watches a man’s identity and mental stability slip away. The play continues to affect audiences because it allows them to hold a mirror up to themselves. Willy’s self-deprecation, sense of failure, and overwhelming regret are emotions that an audience can relate to because everyone has experienced them at one time or another. Individuals continue to react to Death of a Salesman because Willy’s situation is not unique: He made a mistake — a mistake that irrevocably changed his relationship with the people he loves most — and when all of his attempts to eradicate his mistake fail, he makes one grand attempt to correct the mistake. Willy vehemently denies Biff’s claim that they are both common, ordinary people, but ironically, it is the univers ality of the play which makes it so enduring. Biff’s statement, â€Å"I’m a dime a dozen, and so are you† is true after all. Miller often experiments with narrative style and technique. For example, Miller includes lengthy exposition pieces that read as stage directions within The Crucible. At first glance, it seems that an audience must either read the information in the program or listen to a long-winded narrator. Upon further inspection however, it becomes apparent that Miller’s inclusion of background material allows actors and directors to study character motivation and internalize the information, thereby portraying it in the performance. Miller provides audiences with a unique experience when it comes to Death of a Salesman. In many ways, the play appears traditional. In other words, there are actors who interact with one another, there is a basic plot line, and the play contains standard dramatic elements such as exposition, rising action, conflict, climax, and so forth. However, Miller’s manipulation of time and space creates a very non-traditional atmosphere that is unsettling but effective because it mirrors Willy’s mental state, thereby allowing the audience to witness his mental instability and take part in it. Stage directions call for a complete house for the Lomans. An audience will not simply watch the action take place in the kitchen but can observe several rooms within the home. This sounds as if it would be distracting since an audience can view several things at once. After all, what should the audience look at? If more than one character is on stage, whom should the audience pay attention to? Miller solves this problem through lighting. Only characters that are talking or involved in direct action are lit on stage, all other rooms, characters, and props remain in shadow. The result is a vast number of rooms and props that can be utilized immediately. The audience does not have to wait while a new set is erected or an old one torn down, but instead moves directly and instantaneously into the next scene. Such movement without the benefit of time delays or dialogue transitions produces a disjointed and fragmented sequence of events, much like a dream. In fact, the stage directions in Act I describe the house as follows: â€Å"An air of the dream clings to the place, a dream arising out of reality.† Miller does not stop there. Even though the action of the play can shift from one part of the house to another without delay, the action is still limited to the present. Willy’s dreams, memories, or recollections of past events must be revealed in a manner that is distinct from actions taking place in the present. This is important for two reasons: First, the audience must be able to differentiate between the present and the past in order to follow the action of the play; second, Willy’s increased agitation must be apparent to the audience, and there is no better way to reveal it than to have the audience observe his inability to separate the past from the reality of the present. Miller achieves this effect by manipulating the space and boundaries of the rooms. When action takes place in the present, characters observe wall boundaries and enter and exit through the doors. During Willy’s recollections of the past, characters do not observe wall boundaries, and the action generally takes place in the area at the front of the stage, rather than inside the house. As a result, the audience can distinguish present events from Willy’s memories. For example, in Act I, Scene 3, Willy pours a glass of milk in the kitchen, sits down, and begins to mumble to himself. He is in the present. He then remembers a past conversation with the teenage Biff and resumes the conversation. Since this is a past event, Willy directs his speech through the wall to a point offstage. This cues the audience that Willy is digressing in the past. Sound is also used to create a dreamlike state for both Willy and the audience. A flute melody is associated with Willy, Ben has his own music, laughter cues the Woman, and so forth. Once the sound is introduced with the appropriate character, the audience automatically associates the sound with that same character. As a result, Miller is able to prompt reactions and expectations from the audience, whether they are aware or not. For example, in Act II, Scene 14, it appears that things have finally been settled between Willy and Biff. Even though Biff is leaving in the morning, he and Willy have reconciled. This puts the audience at ease, but once Ben’s music is heard, it is evident that the play has not reached its final conclusion. In fact, Ben’s appearance may create anxiety for the audience because it suggests an alternate, more disturbing, end to the play. As the play progresses, the action shifts to the front of the stage. In other words, the audience becomes increasingly aware that the majority of the action is taking place inside Willy’s head. It is difficult enough to watch an individual lose his or her identity. It is extremely unsettling and disturbing to be forced to experience the individual’s memories, illusions, or perhaps delusions resulting in mental instability. Miller takes that into consideration and then pushes his audiences to the extreme. As Willy’s mental state declines, the audience is forced to watch and to react. As a result, the play may be called Death of a Salesman, but it is a death observed and experienced by every member of the audience.