Cultural competence Essay

This paper explores the Hmong people’s views toward medicine within the lens of their culture. It will take into account their history and also seek to explain the natural aversion these people have to most modern techniques in medicine. The Hmong people have a large immigrant population in the United States and represent unique challenges to most medical practitioners that can be used as a model to teach new methods of treating patients who may not understand western medicine. Understanding the Hmong is the first step in devising better techniques for nurses and other health professionals who seek to provide the best standard of care to all peoples in a safe, professional and cooperative way. Medical Views of the Hmong People: The Importance of Cross-Cultural Understanding As the United States becomes a more racially and ethnically diverse nation, health care systems and providers must adapt to be able to better care for patients’ with regard to their perspectives, values, and cultures. Failure to understand and manage social and cultural differences may have significant health consequences to the patient and could lead to ineffectual practices in the delivery of care. This is particularly significant in the treating of patients from the Hmong ethnic group. Whose cultural beliefs and practices are often opposed to the methods of modern U. S. Medicine. The Hmong people are made up of peoples from China, Vietnam, Laos, and Thailand. Indigenous to South East Asia, many of them resided in Laos until 1975 when Pathet Lao came into power and began to persecute them for their involvement (on behalf of the United States) in Vietnam. As a result of this political crackdown many Hmong fled Laos and have been accepted as refugees in many western countries including the United States. Although they are a largely diaspora population they have managed to hold onto their cultural traditions as well as assimilated (partially) to the culture s of their home countries. These traditions are passed down from elders to youth and are a strong pillar through which the Hmong are able to maintain their history and community. Currently there are 245,000 Hmong people residing in the United States, most of which live in California, Minnesota and Washington. As their numbers grow so does the importance of dynamic care practices that can better suit their medical needs. The Hmong are a primarily Shamanistic culture, with a strong reverence for ancestral spirits. Their beliefs in spirits are not regulated to simply deceased family members, but in all things both animate and inanimate. These spirits reside in a mirrored Spirit realm, where the spirits of their ancestors and also that of trees dwell. The individual is thought to have multiple spirits residing in them that regulate both the spiritual and physical health of the person. Illness is thought to come from evil spirits who attempt to harm the native spirits that reside in individual’s body. These spirits are the cause of all illness and exist in the spirit realm. It is to be noted that these spirits exist on the same plane as regular mortals, however the deity Saub made us blind to them after conflicts between the spirits and the mortals. It is only through the utilization of shamans that we may access them, and treat illness. As the malevolent spirits descend on the body, they may cause the native spirits to leave their human host, this is thought to be manifested in the physical world as serious illness. The Hmong believe that illness is intrinsically linked with a spiritual imbalance, therefore the Shaman is called upon to conduct rituals to bring back the wayward spirit and to discern the cause of its leaving. These beliefs can be in direct opposition to the belief of modern medicine, which relies heavily on scientific and empirical evidence. The simple diagnosis of illness can be greatly impeded when the patient believes that their rash comes from evil spirits as opposed to the contact of a poisonous material. Also this can breed a general distrust of western medication, when for centuries the answers to illness have always lied with the shaman and not with pills and elixirs. The language barrier also is challenging, but in a novel way, whole concepts in the Hmong culture are untranslatable, and the nuances in regional practices of the Hmong make each group individual in their phrasings and pronunciations. Even with the assistance of a native translator many concepts remain completely lost in translation, especially for American nurses who are often the first line of care for these people. Traditionally when a Hmong person becomes sick they are taken to see the community Shaman. The Shaman is considered a very important member of Hmong society as they are able to communicate and travel with spirits. They serve the role of both doctor and priest in that they care for the physical and spiritual wellbeing of the person. Because of the link between spiritual and physical illness, it is held that the main means to achieve health wellness is through ritual to appease the spirits. This can be dangerous to the person as their illness may go undiagnosed and untreated as the afflicted wait for the results of the ritual to affect them. Among the largest problems with treating the Hmong is noncompliance, as their tradition may prevent them from actually utilizing the medicine given to them from western hospitals and pharmacies. The treatment of psychological disorders in the Hmong people also poses a unique challenge to western health professionals. In the Hmong tradition those with unexplained psychological illnesses such as bi-polar disorder, schizophrenia, multiple personality disorder, and some neurological disorders (i. e. epilepsy) are considered to be chosen to become shamans. The symptoms with these maladies are often closely associated with spiritual intervention such as: multiple personalities exhibited being the manifestation of different spirits attempting to possess the body, or epileptic seizures being a communication from spiritual forces. This has caused these disorders to be revered in the Hmong tradition and have led to many of them going undiagnosed. The usual protocol for such episodes are for the child (as these ailments often present themselves in childhood) to be blessed and sent to learn with a shaman teacher, so that they may use their gifts for the community and become a shaman themselves. As shamans are highly respected and important members of the community any attempt to stifle or diminish their gifts can be construed as going against the wishes of ancestral spirits. To have a shaman in ones family is considered one of the highest honors, thus creating a situation where the illness goes both undiagnosed and untreated. Interactions between American health professionals and the Hmong people have even been documented in the book The Spirit Catches You and You Fall Down by Anne Fadiman where culture clashes between ignorant parents and culturally insensitive medical staff ends very tragically for a young girl diagnosed with epilepsy. The combination of the Hmong parents unwillingness to trust the medicines of the Merced doctors and doctors unwillingness to understand the culture of the Hmongs and to tailor the care of the daughter unfortunately end in the girl in a vegetative state. This book goes through the history of the Hmong and makes the reader understand the nature aversion they have to medicines. To them healing is their religion, and to these people the American method of medicine is entirely too invasive. They feel we cut and defile bodies, we take too much blood and we cause dramatic personality changes with our drugs. This failure to understand these concerns is damning for Lia Lee (the little girl) and led to both noncompliance and also fear about regarding possible surgeries for the very young child. This book is assigned reading for many medical programs and is compelling read, The importance of its theme of cultural understanding cannot be stressed enough. When Lia was brought to the emergency room for the last time, the staff at the hospital assumed that she had a big seizure because of her parent’s unwillingness to give her seizure medications that had been prescribed. They all silently agreed that it was just a matter of when. It was to the disappointment of many and a shock to Neil Ernst and his wife Peggy Philp when another neurologist who had treated Lia previously announced that it was septic shock and not under medication that had caused the â€Å"big one†. The fact that Neil Ernst did order a septic workup on Lia indicated that he was not treating her symptoms but was had used previous experience with the parent’s noncompliance as all- purpose explanation that blinded him from seeing exploring other more obvious possibilities of Lia illness. The role of the nurse as educator is paramount in these situations. A nurse when performing her role in the health care setting always has the opportunity to bridge the gap between the patient and the physcians. Anne Fadiman after researching the book for eight years ascertains that â€Å"We do not know if Lia would be able to walk and talk today had she been treated by Arthur Kleinman instead of by Neil Ernst and Peggy Philp. However, I have come to believe that her life was ruined not by septic shock or noncompliant parents but by cross-cultural misunderstanding. † In modern medicine there has been an increased prominence put in patient education and understanding. What could have saved Lia’s life is a more tailored course of treatment that both respected her families beliefs while also allowing for the benefits of modern medicine. When helping patients it is always important to respect their cultures and traditions, but it is more important to build understanding between their traditions and what will best allow them to get better. Nurses can play the greatest role in building cross-cultural trust, when they (as the first line of care) educate patients on their medications and dietary recommendations. In a more diverse America we will need more Nurses to be able to not only respect cultural boundaries, but foster cultural cooperation to better treat all patients.

Challenging Obstacle

Ray Pyle November 18, 2012 Essay #5 College Entry Essay 9:40-Sect. 46; 11:10-Sect. 69 Most Challenging Obstacle: The Death of My Father Most people would say that high school and resisting peer pressure would be the most difficult task that they have ever faced. Well the most challenging obstacle that I had to overcome was the death of my father. My life was turned upside down when it all happened. It greatly impacted me on a physical and mental level. Luckily this challenge taught me to cherish life. It even brought me closer to God and to understand that he has a plan for all of us.It pushed me to become more determined and motivated in any activity I partake in. Our family is much closer now then we were before. His death opened my eyes and my mind to accept the idea that you must live life to the fullest. Not only did it teach me to live life but it showed me how to be confident, strong, respectable to everyone and everything, and how to appreciate the little things in life. This would definitely be the hardest obstacle that I ever had to face in my life. Ever since that faithful day my views on life have changed dramatically. Now I have become more an optimistic individual.Yes, I am more optimistic because now I see the true beauty of the world that I always overlooked. When I see pictures of nature it releases a feeling of sanctity or even solace. I don’t take life for granted anymore, now I strongly believe that every life is precious even the pesky bugs. His leaving revealed that instead of rushing life I should stop every once in a while and take a gander at nature. Like a moment to soak it all in and embrace the true beauty that so much people fail to see. Now I live in the moment instead of worrying what the future brings.This ordeal has brought me a lot more near to God. In my prayers I learned that God needed him and that my father had fulfilled his purpose. I know it sound cliche but it is the truth and no one can tell me differently. Inste ad of resorting to drug I turned to God and he helped me through the pain. In a way God has taken the role of a fatherly figure and I am grateful. I go to church more often and I feel more alive and refreshed. This trial has shown me the love that God has to offer and how he will take care of you when your love ones are gone.God has become an important factor in my life after my dad died. My determination is at the highest point it could be. I have this motivation to strive to become the best I can. I do these things to make my father proud and to honor his legacy. To be honest, if my father was alive today I wouldn’t have fathom the idea of taking Advanced Placement courses. I would have relied on my dad to do everything for me including finding and paying for my college. Now I can proudly say that with this newfound determination I can succeed on my own.For once in my life I am actually studying and pushing myself to the limit on how much I can learn and retain. I was able to turn such a negative situation into a positive by using it to fuel my dreams. When all was finished this traumatic event created a feeling of togetherness. Our family became tighter and closer together. Now we set up family nights where it would either be Mexican night meaning we make Mexican dishes or game night where we battle it out on the Wii. On certain Saturday’s we all would go out to any restaurant mostly Chili’s and sit-down and talk about how our week was.In a sense we come together and evaluate our week and sometimes we even reminisce about him. It is better to remember the good times than to remember what happened that cold December night. His death brought our family together and taught individual to enjoy the times we have left on Earth because you never know when it is your time. The experience I gained was how to be confident in everything I do. I learned how to be strong in times of great distress. I now have the utmost respect for every living thin g. Also, his death allowed me to see how important life is and how we must make the most of it.You always live like it is you last day and always be willing to aid those in need. My father passing away gave me lesson that I hope to pass onto my children. Seeing my father go would have to be the hardest thing that I ever had to overcome. Thanks to God I am standing here stronger than ever. Instead of using this as an excuse I am using this as fuel to empower me. This situation has impacted me physical and mental but I won’t ever let it hold me down. In my heart I know that my father will never accept less so I will aim for the highest peak and ride it out to the end.

Hematology Coursework Example | Topics and Well Written Essays - 1750 words

Hematology - Coursework Example Neutrophils contain primary (azurophilic) and secondary granules. Primary granules contain a enzymes and molecules that play a role in killing microbes, including hydrolases, elastase, myeloperoxidase, cationic proteins, defensins, and bactericidal/permeability-increasing protein. Secondary granules contain unique molecules such as lactoferrin, vitamin B12–binding protein, NADPH oxidase (which produces hydrogen peroxide), and chemoattractants receptors. The nucleus of neutrophils normally contains up to four segments, which is why they are also known as polymorphonuclear (PMN) cells. Neutrophils are phagocytes that perform the functions of immune surveillance and in situ elimination of microorganisms and cell debris. They circulate in the blood and also line vascular endothelium. They are the first immune cells to arrive at the site of inflammation through chemotaxis, and rapidly extravasate into the surrounding tissues. In the tissues, they release the degradative enzymes in their secondary granules that kills bacteria but also causes tissue destruction. They carry out phagocytosis to engulf opsonized cell debris and microorganisms that they come in contact with. The vacuole with the phagocytosed organism is fused with the primary granules, causing the oxidative and antimicrobial enzymes to access and kill the ingested microorganism. Neutrophils self-destruct after a life of 1-4 days in tissues. - Lymphocyte There are two main types of lymphocytes: B cells and T cells. They are round cells with a large, round nucleus and scant cytoplasm. Lymphocytes govern the acquired arm of immunity, they are responsible for mounting a specific host immune response targeted against a particular invading organism. B cell precursors are produced in the bone marrow, but they migrate to the peripheral lymphoid organs, where they undergo maturation with antigen exposure to plasma cells. An important function of plasma cells is to produce immunoglobulins (Igs). A major func tion of immunoglobulins is to act as antibodies. Antibodies help degrade and clear foreign substances by binding to specific microorganisms’ molecules called antigens, a process termed opsonization, and produce specific results including antibody-mediated cellular toxicity and activation of the complement system that destroys foreign cells. There are hundreds of thousands of different B cells in the body at a time, each is capable of producing an immunoglobin specific to a microbe, this arsenal of B cells makes the body capable of mounting an antibody response against nearly every possible virus, bacteria, fungus and protozoa that can be encountered. T cells similarly undergo maturation in peripheral lymphoid organs and the thymus, they produce ‘T cell receptors’ specific to foreign microbes. Activation of T cells requires interaction of the T cell receptor with an antigen-presenting cell; activated T cells are responsible for delayed-type immunity. There are 2 m ain types of T cells: CD4 cells, called T helper cells, which produce cytokines that activate B cells (by IL-4 and IL-5), macrophages (by IFN-gamma) and other immune cells. CD8 cells, also called T cytotoxic cells, destroy cells with intracellular microorganisms such as M. tuberculosis, virus-infected cells, tumor cells and allografts. - Monocyte Monocytes are circulating agranulocytes with a kidney-shaped nucleus. They have two main functions: phagocytosis of microorganisms, and presentation of antigens to T cells to activate the acquired arm of immunity. They are released from the bone marrow and circulate in blood for about 72 hours before migrating into tissues to transform into macrophages to carry out their functions. They have surface receptors that can recognize bacteria, such as Toll-like

The Catholic church did not help the Jewish people during the Essay

The Catholic church did not help the Jewish people during the Holocaust - Essay Example It has been estimated that during the Holocaust approximately nine million Jews occupied Europe but almost two thirds lost their lives through Holocaust. Pope Pius XII was the catholic Pope during the time of the Holocaust1. Various controversies surrounded the position of the Pope in advocating against the Holocaust. The Pope took a more neutral position; he only made statements that condemned the injustices done against humanity, without coming boldly to condemn the Nazis for the massacre. The Pope failed in his authority and demonstrated that the Catholic Church had no firm position on the Holocaust. The Catholic Church’s main representative to the modern age is the Pope, During the Holocaust; Pope Pius XII was besieged to help the Jews to no avail. The Jews were constantly killed throughout every collaborating country in Europe. The Pope has continued to hold a supreme authority and was seen to influence political situations. Around 1941, the Cardinal of Vienna, Cardinal Theodor Innitzer took time to speak with the Pope on the issue of Jews that were deported from Spain to Germany where they were killed. In addition, there was pressure from a delegation from the United States to have the Pope condemn the killings2. However, the Pope took a very undefined position and was not bold and vocal in condemning the attacks. The argument by the Pope was that condemnation of the atrocities would have negative implications on the catholic faithfuls in Germany. This reason made the Pope to take a more neutral position. When a Ukrainian citizen, Andrej Septyckyj wrote to the Pope poi nting out to the ruthless nature of the German government, surprisingly the Pope replied with a verse from the Bible asking Andrej to bear adversity with patience3. There were opportunities for the voice of the church leaders to be heard but the neutrality aspect made the Pope and his cardinals to remain mum. Around 1940,

To What Extent Were Women Victims of National Socialism Essay

To What Extent Were Women Victims of National Socialism - Essay Example The era is also criticised and condemned for confining the role of the women from social, economic and corporate fields to the four walls of their houses, where they were meant to conceive the children of this superior German race, and to serve and soothe their husbands on their return from the jobs and battlefields as well. Kolingsky (1993) submits to state that the woman under Nazi Germany had been assigned the only task of sustaining and maintaining their beauty in order to attract their husbands or lovers for conceiving children. It was not a novel thing for the females, as â€Å"the female bird preens herself for the male, and hatches the egg for him. In return, the male provides the food.† Before embarking upon the topic under analysis, it would be advisable to look into the history of inclusion and exclusion of women in professional activities outside their homes. German Women 1871—1933: The disintegrated Prussian states had launched a long and dedicated struggle in order to turn the dream of united Germany into reality. They had to win three successive battles against Denmark, Austria-Hungary, and France in 1864, 1866 and 1871 respectively in order to accomplish the arduous unification process of the shattered Prussian states under one banner and in one unit. German Iron-Chancellor Otto von Bismarck (1815-1898) was determined to make his country as the leader of the world in all aspects. Consequently, he assured the active participation of men and women in various occupations. Bismarck had played the decisive role in the upsurge of the German nation, and Kaiser Wilhelm II turned the country into a tremendous military and economic giant of the entire region for the future years to come. He did not confine the flow of progress to men only; on the contrary, he invited women folk too to step forwards and render their valuable contributions to their nation on the basis of their educational qualifications, experiences, and skills. As a result, w omen started working shoulder to shoulder with the male folk in the health, education and nursing sectors, and even military services of the country too. Imperial Germany, under the Reichstag, promoted an active female role as teachers, nurses, soldiers and political activists (Mahajan, 2002). Although the courageous and dauntless political and strategic policies devised by the then German leadership during 1871 to 1914 turned the country into a marvellous state of Europe, and invited and included all strata of society, including men, women, young and old into nation-building programmes, yet the entire developments made by the political leadership in order to make Germany as unchallenged created rivalries against the constantly rising economy. However, rapid industrialization also invited the high crime rate, urbanization and prostitution etc in its wake. The disquiet caused by these factors was simultaneously exacerbated in Germany by the increasingly vociferous demands of the Germ an women’s movement which emerged most strongly at the turn of the century. (Rowe, 1995)  

Disability and Workability with Diabetes Coursework

Disability and Workability with Diabetes - Coursework Example This research appraisal aims to broaden the awareness of the health care providers of the latest status and trends in nursing research and practice, specifically on: (1) identifying the similarities and differences of the qualitative and quantitative research designs, (2) to identify the implications of the three studies in relevance to the nursing practice particularly in the perspective of occupational health nursing, and (3) to gather information on the proper nursing management of clients with diabetes at work, their legal rights as to the limitations set forth on the Disability Discrimination Act of London (1995) in order to make their activities of daily living more meaningful in spite of having diabetes. Appraised for this purpose are the three recent research studies on diabetes conducted by the renowned medical and nursing research teams in the United Kingdom. These are: (1) Disability & Workability: Diabetes – An Occupational Health Nursing Case Study (NHS Education for Scotland, 2004, pp.21-24) – a qualitative research; (2) The Socio-Economic Factors and Outcomes in Type 2 Diabetes (Coates, et al., January 2008, pp. 1-113) – a quantitative research; and (3) Effectiveness of Self-Management Intervention in Patients with Screen-Detected Type 2 Diabetes (Thoolen, et al., November 2007, pp. 1-6) – a quantitative research. This case study highlights some of the issues to be considered in the workplace for an employee with newly diagnosed insulin-dependent diabetes. It also illustrates the need for collaborative working between the multidisciplinary professionals caring for the employee in the community and occupational health services. The implications of this study for nursing practice, particularly to occupational health nurse, are as follows: Be aware of what illnesses and disabilities are taken into account under the Disability Discrimination Act (1995) and ask your client if his or her disability affects the ability to carry out tasks at work.

Brand management Essay Example | Topics and Well Written Essays - 2750 words

Brand management - Essay Example Specifically that brand aims at reaching out for the professional class, which can afford to purchase and maintain this brand of vehicle (Spiggle, Nguyen, & Caravella, 2012). The company has diversified its models to fit the various demands of their target customers by manufacturing small and bid body size cars, all body types. Apart from being a part top-class vehicle, Mercedes model is preferred for its safety features. Mercedes-Benz has invested a lot on the safety of their vehicles by considering its high quality brakes, stable body structure and installation with airbags for sensitive impacts. This makes it ideal for its target class, who consider safety as a priority while selecting a vehicle brand. The originality of the vehicle makes its one of the most unique automobile brands in the automobile industry. For instance, its body type is unique and different from that of competitor companies. As depicted in the company’s website, the model takes the body of a â€Å"chicken† that is complex to define and hence unique only to the company. Uniqueness is a feature that the upper-class associated with style and fashion of an automobile (Whitson, R 2013). This is the major reason why this brand has received a lot of favoritism from the professional class. Over 80% of the purchases of the Merc edes-Benz brand prefer it for its optimal fashion design. Quality is an important aspect of the Mercedes-Benz brand that makes its preferable by its target customers. Although its repair and maintenance are expensive, it does not demand for frequent repair and maintenance, hence giving a desirable service to its users. The physical appearance makes it a likeable brand. Mercedes-Benz has a shiny appearance that reflects its classy design and style which makes it admirable from a far. Technology is another important aspect of the brand that makes it a favorite for the youths in the middle. For instance the

RISK MANAGEMENT Essay Example | Topics and Well Written Essays - 1000 words

RISK MANAGEMENT - Essay Example Strong leadership defines the risk culture and shares that vision with management. Leadership acts as if it believes in its vision. In the feedback cycle, leadership listens to new risks identified and responds with a course of action consistent with the culture of risk. (Marks and Rassmussen, 2010) (Hopkin, 2010) Management commits to the leadership vision and manages to that standard. Teamwork is essential throughout the workforce and it is management that provides the regulation of the team. Management trains employees to respond properly to risks, for example, wearing safety equipment or using machinery correctly. Management monitors the results of risk management tactics and accounts for poor risk taking behaviors. Management establishes quantitative analysis tools to measure risk culture compliance. Any problem areas are reported to leadership, discussed and a mutually agreed upon intervention occurs. (Marks and Rassmussen)(Hopkin, 2010) Strong financial risk cultures identify key risks inherent in the business; these may include currency exchange, interest rates, diversification issues, fluctuating suppliers’ prices and raw commodity pricing. The key financial risks order by primacy from largest concern to least impactful. The financial risk manager reviews the company risk tolerance and manages the priorities accordingly, implementing strategies and tactics to reduce risk where desired. These tactics usually involve the derivative markets, like interest rate swaps and commodity trading. Risk management is a repetitive process, so the financial risk manager monitors the markets of concern and refines his strategy as needed. (Horcher, 2005) (Das, 2006) Operational risk management concerns both management and measurement of risk. Traditionally, operations risk management involved all the company processes and systems, all employees for management and training, and any external event, such as political interference. A strong culture identifies, measu res and implements a strategy consistent with overall company goals. Of course, on-going stewardship is required as with the financial risk management. (Abkowitz, 2008) Weak Risk Culture Weak risk cultures begin with resistant leadership, sometimes arrogant leadership. Management is either not told goals or communications are not transparent. Leadership and management must believe in and be committed to the same vision of risk culture. New risks are not identified on a timely basis, on-going stewardship is an essential part of a strong risk culture. Underutilizing personal or improper training creates a weak risk culture operationally. Only considering risk avoidance and mitigation rather than proactively seeking profitable means to deal with risk is a characteristic of a weak risk culture financially. For instance, trading in derivatives can be profitable by trading risky interest rate situations for more time sensitive hedges. Weak risk cultures do not do what strong ones do. (And erson and Schroder, 2010) Risk-Return/Risk-Reward The financial risk manager observes the risk-reward behavior of financial instruments in order to determine the least risk available for the highest return. If all instruments shared the same risk, the investor would choose the highest reward. If all risks had the same reward, investors would choose the lowest risk. This balance is achieved through diversification of investments and managing the volatility of an investment

Indian Book Retail Industry Essay Example for Free

Indian Book Retail Industry Essay The Indian book retail industry is estimated to be over Rs 3,000 crore, out of which organised retail accounts for only 7 per cent.The industry is expected to grow by approximately 15 per cent a year.Book retail contributes only about 1 per cent to the overall retail industry. Text and curriculum books account for about 50 per cent of the sales. Second-hand books are also a big chunk of the book retail market. In the past few years, several large format book store chains have come up, such as Landmark, Crossword and Om Book Shop etc . More than 75 per cent stores of these large chains are in top eight cities. These Organized Book retailers are focusing on improved customer experience. Many book stores have also introduced coffee shops and provide a library-like atmosphere where customers can sit and read, while sipping coffee. Besides this online channel is also significant with players like Flipkart, Indiaplaza, Infibeam etc. With the printed word considered an endangered species in much of a rapidly digitizing world, India now represents one of the best book markets in the world. â€Å"There has definitely been a huge jump in the size of the industry in terms of book sales and the number of books being published,† said Mita Kapur, the founder of Siyahi, a literary agency, who says the number of books published in English is growing by 30 percent a year. Vikrant Mathur, associate director of Nielsen Book, India, said the volume of book sales grew by 45 percent during the first half of 2011. For the entire year, Nielsen, a global information provider, documented English-language book sales of 3.28 billion rupees – about $62 million – from more than 12 million books sold. And that is probably only a fraction of true total sales, since Nielsen only measures about 35 percent of the total market. â€Å"Where physical books are concerned India right now is a very, very big market,† said Priyanka Malhotra, director of Full Circle Publications. â€Å"There is a whole younger generation coming up from BPOs who are starting to read in English, which is where a lot of new demand is coming from.† Online retail have also spurred growth in the industry. To summarize India’s book retail industry is broadly divided into 3 sectors : 1. Organized 2. Unorganized 3. Online The organized sector has big names such as : crosswords, OM book shop , landmark etc to name a few. On the other hand unorganized sector is huge and highly fragmented, with shops spanning from local book stores to road side book shanties to red light book sellers etc. This sector is also filled with piracy and pirated copies of original books (which is a serious threat to the sales of organized sector) Online sector is the newest of them all and has just started to takeoff in sales since last 3-4 years. The major advantage of such a format is the wide variety of offerings under one roof and ease of access for the users. Thus this is the fastest growing sector among all of them. The prominent players in this category are Flipkart.com, Infibeam.com etc. Unorganized sector (Golden book depot) Golden book depot is a typical book store among many in the unorganized sector of the india book retail industry. This store is loacated in the vicinity of our target organized sector store ( OM book shop) i.e. Ber Sarai ( adjacent to IIT) in south Delhi. As can be seen in the photograph, this is a small shop , almost 1/10th of the size of om book shop and most of the products are available behind the counter, with only magazine stand placed just outside the store. As magazines as a category has most no of impulse purchase. On an average around 50-70 customers come to this book store, and this tore has a footfall conversion of over 85% which is very high as compared to the organized sector (OM book shop) . The reason for this behavior is that most of the products in these kind of shops are behind the counter and it doesn’t provide the luxury to the customer to stroll around and search and read a book as in the case of organized sector. Therefore almost all of the customers coming to these shops like golden book depot are aware of what they want and demand that directly from the shop keeper who then searches the book in the shop and hands over to the customer. Besides having a smaller area , less variety of books and behind the counter selling, the sales (in terms of no. of books sold) is still higher in golden book depot as compared to OM book shop . The reason for that being : 1. Availability of educational books , i.e. educational course materials and  competitive exam preparation books. These books constitute the majority of the portion of these book shops in unorganized sector. These kind of books , especially course materials for various courses such as MBA, B.Tech, BCA etc . are not available at book stores like OM book shop. As they (Organized) focus more on selling of novels and leisure read books. 2. Many of the popular shops in unorganized sector offer a facility to bring the old books and exchange them with the new books at a discounted rate or return the old books at a discounted rate in form of cash return. This is a major reason why price conscious middle class Indian customers prefer unorganized sector over organized sector. 3. Perception in the minds of Indian customers that these small shops will offer the same product at cheaper rate than the organized sector shops, which have flashy interiors and huge shop floor. This perception is true also upto some extent as these shopkeepers in these small shops have the control over their margins and not guided by any company policy ( as in the case of OM book shop) that means these shop keepers can even squeeze their margins from around 10% to as low as 1-2% to attract or retain a customer by offering them the cheapest bargain. Organized sector (OM BOOK SHOP ) About Om Book Shop Retailer and Publishing House: Om Book Shop is a part of Om Books International, a leading English language trade publisher in the subcontinent, and is a prominent player in the Indian book industries. The book retailing chain has a significant presence across the Delhi-NCR region. Besides stocking books, movies, magazines and CD ROMs, Om Book Shop is also a major distributor of books of many leading international imprints. OBI began publishing in 1993. Collection: With a strong focus on children books and coffee-table books, the store has a diverse collection including books on Lifestyle, Nature and Wildlife, Fashion, Bollywood, Heritage and Culture, Management, Health Fitness, Cookery, Architecture and Interiors, pictorial books for children etc. Children section is a major thrust area for the company and OBI publishes children’s titles under the Om Kids imprint: illustrated classics, mythology, folk tales, encyclopaedias etc. Loyalty programs and other salient features: Other salient features Om Book Shop currently holds about 50 thousand registered customers with the Om Book Privilege Loyalty Programme which offers points, discounts other offers to its loyal customers. OBS aims to popularize the Gift -a- book idea across its stores and delivers services like Dial-a-book which allows the customers to shop from their homes; and the efficient and helpful staffs in the book stores assists them in finding the right book or the right gift for the right occasion. Overview: Product, Category and Store Product Category: ‘Books’ Retail Format: Category Specialists Customer segments: In terms of demographics, the Om Book shop customer can be a child/adult from any age group, gender, income class (reasonably well off) etc. Store: Om Book Shop is located in DLF Promenade Mall in Vasant Kunj. The store is located on the 2nd floor of the mall and the floor plan is provided in Figure1. The store is strategically located in a way that it falls on one of the 2 ways to the food court and movie theatre. Figure 1: Floor Plan of Om Book Store STORE PHILOSOPHY * Layout * Ambience/dà ©cor * Sale program * Loyalty Store layout structure Om book store has a very functional and efficient physical layout. Mall sq. foot area is very expensive so there seems to be an effort on part of the book store to utilize as much area as possible. Hence the layout may be a bit crammed for some customers. The bird’s eye view of the layout is as follows: The front view of the store is a transparent glass window through which a passerby can easily see into the store. The poster’s on display from the  front view are only of â€Å"OM publisher’s† in different categories like kids books, cook books, and biography (Amir Khan’s â€Å"I’ll Do it My Way†. The most popular and eye-catchy book categories are positioned near the entrance of the store. The largest selling categories, Children’s books, Fiction, and New Arrivals are placed in shelves that a customer encounters as soon as he enters the store. These sections also have the largest impulse buy and are therefore kept at the forefront. Om book’s self published books in the kids category is displayed in big piles on the ground straight in the line of path of a customer who walks into the store. Since the child often runs about choosing his/her own story books and activity (colouring/mask) books and heavily influencing the purchase decision of the parent so the children books of the OM publisher has been strategically kept within reach of the child on the ground to woo the him/her. Other publications in the same Children’s category have been kept on the shelf and in â€Å"sideway† display to decrease their exposure to the child/parent. Om Publication’s in any other category when placed on the shelf have been given a frontal full display to encourage sales. Management books being the next most popular category, they have been placed right after the popular categories when comparing in terms of â€Å"distance from entrance†. Categories pertaining to work or hobby like gardening, travelling, cooking etc / or specific topics of interest like astrology, philosophy, poetry, etc have been grouped towards the end of the store, furthest away from the entrance. This is because these categories can usually not create impulse purchase and so every customer need not pass through these segments/aisles. People who do buy these books are targeted shoppers and will anyhow walk to the back end of the shop to pick up his/her book. These categories are not as popular as the others and have loyal customer following. The impulse buy accessories are lined along the passage on either side from the entrance to the cash counter. It is further seen that the counter is placed at the other end from the entrance to ensure that a customer has to walk through all the impulse purchase offerings before he/she can buy the book. The products on offer in this so called â€Å"impulse accessory† shopping segment are: pens (parker and waterman), magazines, cookbooks, horoscope books, key rings, bookmarks, marble-paper/wrapping paper, and bestsellers in each category. It can further be noticed that the best seller section just prior to the cash  counter is dedicated solely to Om publication. Additional aspects of the Store Layout The layout is no doubt very functional keeping in mind the profit maximization philosophy of the store and the main agenda of pushing its own publication to the shopper. However the spacing of shelves is crammed with little walking space, hardly any sitting space (only 2-3 stools), and only 1 book stand. The entire focus is on 1 product offering i.e. books. Unlike competitors in the organised sector like Landmark, it is not focussing on the entire shopping experience, (no coffee, no other items on offer like stationary etc, no sitting space). Store Ambience and Decor The bookshelves were made of engineered wood like particle wood. This created a unique and rich traditional effect. Plastic or metal bookshelves were not used since they do not look expensive and give a modern feel, which was not something the book store wanted. Furthermore the particle wood was coloured a light shade of brown to give a bright and roomy/spacious look to the store. However the bookshelves were placed too close and for a particular section of customers who prefer the comforts of abundant seating arrangement, coffee facility, and walking space (as provided by Landmark), the sheer functional design of the store might be interpreted as a crammed. This might not work well for a particular segment of customers whose involvement with the shopping experience is as high as, if not higher than the involvement with the product itself. Furthermore the store works on the philosophy that it will focus on selling books alone and not encourage customers to spend hours just reading in the store. This is unlike some of its contemporaries like Landmark that encourage customers to sit and read inside the store. Hence at OM book stores some customers may complain that the staff hover close to them and make them feel uncomfortable if they stay too long. The store plays light and slow English instrumental music to suit the taste of the higher-strata of people who usually visit the Promenade Mall and create a relaxed atmosphere in the store. Instrumental music is  played since a song with wordings would disturb the concentration of a customer reading the epilogue/back-cover of a book. This gives a contemporary feel to the store. Store Sale Programs The store’s maximum profit comes from its Children’s section. Hence the sale period coincides with the summer and winter vacation in schools in Delhi. December to Mid-January and May to June are the respective winter and summer sales. The store is also receptive to mall trends in sale. Since almost every other shop in the mall had a sale in July, so the store too announced a sale to cash in on the increased footfall to the mall during the sale-period. There was no Flat Sale offer. Discount amounts were graded on the basis of demand. Books with high demand had low sale; New Arrival, Top 20 Fiction/Non-Fiction, general Fiction, and bestsellers had only 10% discount. The store felt that irrespective of the price these books would sell and so gave negligible discount on them. However on the kids section the discount was higher, around 20%, and even higher discounts on children’s books published in-house by Om Publications. This is because the store believes that parents during the sale period buy in bulk and a higher sale would induce them to buy more and yet it would not affect your margins. Furthermore parents are price conscious when buying for little kids since the books cannot be added to a collection later on and mostly become irrelevant in a short time after the child has outgrown them. The sale on OM publication was the highest because they already had the highest margins on it due to the absence of a middleman, and therefore could easily afford a large discount on those books. By touting the large discounts they aim to attract consumers to their publication and yet make the largest profit on the same sales. The books with the largest discounts (say more than 50%) were displayed in piles on the floor. This was due to the belief that even if the books weren’t displayed at eye-level, even then the mammoth sale amount would encourage the shoppers to make the effort of bending down to pick up the book. To publicise the sale big red stickers were pasted on the glass walls of the store which can be viewed by the casual shopper passing by the store. Inside the store the discount for each section was  mentioned separately through stickers and pointers. Store Loyalty Program A book is generally a product category where the consumer’s involvement with the product (i.e. the book itself) is much higher than his involvement with the store. Even if a person might have store preferences, yet his/her loyalty lies with the book and not with the store. Hence a consumer would not really care much as to whether he bought his/her book at OM Book stores or at Landmark, which is a stones throwaway. Thus in order to boost retention of loyal customers Om book stores has come up with a loyalty program, a privilege card holder concept which is as follows: * 1 point for every Rs.10 purchase. * Minimum points for redemption are 500 points. * 1 point equals Rs 1 reduction in bill amount. 60-70% of walk-in customers were privilege card holders and the store already has 4500 privilege card holders. The scheme is a moderate success. Store Timings | 11 A.M to 10 P.M ( For Mall)11 A.M to 8 P.M ( For standalone shop not the store we studied)| Working days| All 7 Days of the week| Peak days| Saturday and Sunday| Peak hours| Evenings post 6:00 pm| Staff| 10-12 members including the manager. Manager stands behind the counter at one of the two cash registers. He is accompanied by 2 staff members whose work is to: 1. Use the second cash register for quick transactions during peak hour to prevent long queuing period 2. To get a book for a customer if he/she directly comes to the counter and asks for a specific book.| Floor Staff responsibilities| * Taking care of the specific three to four sections assigned to them. * keeping a track of inventory * Filling the requisition form for the replenishing of stock * Guiding the customers if required * Sticking the barcode behind each new book before placing them on the shelf.| Shifts| There are no shifts; each staff member works throughout the day from 11:00 AM -8:00pm (fixed) and from  8:00pm-10:00pm (variable) depending on the rush. Hence post 8:00 pm the retained staff is paid on overtime basis.| Showrooms (strategic positioning)| NCR – 5 in malls and 2 stand aloneMumbai – 1 stand aloneThe store we studied was in the Promenade mall beside DT cinemas movie ticket counter on the 2nd floor.| Revenues| 1.5 to 2 Lakhs on weekdays3 to3.5 Lakhs on weekendsChildren, Fiction – highest selling category (80% of sales)| CONSUMER BUYING BEHAVIOUR The product category is such that it involves Limited-Decision Making by the customers. The reasons for purchase of a book from the store can be: * Buying for self- Leisure * Buying for self Knowledge * Buying for Others- Regular * Buying for Others- Situational The greater the motivation to make an optimal decision, the more likely an attribute-based choice will be made. Thus, attribute-based processing is more likely for an expensive book purchase than it is for an inexpensive magazine. The easier it is to access complete attribute-by-brand information, the more likely attribute-based processing will be used. A variety of situations influence which choice approach is most likely. A book bought with the intention of a gift purchase is assigned more importance than a purchase for oneself. Thus, gift purchases would be more likely to produce attribute-based decision processes. Time pressure is a major determinant of choice process used, with increasing time pressures producing more use of attitude-based decisions. Thus, we can identify 3 major clusters of customers that visit Om Book Shop. Category I: DEDICATED READER This is the kind of person who feels complete with a book in his hand. For him, the behaviour is governed by his choices alone and it is solely his decision. He is always trying to find the time to get back to his book. He is convinced that the world would be a much better place if only everyone read more. His primary information search happens within the store only. Category II: LITERATE GOOD CITIZEN This is the kind of person who usually buys a book after reading it review by a critic or an expert. Such a person does more information search before coming to the store. For our respondent group, the most dominant sources for this information were reviews and Bestseller lists published in newspapers, magazines or online blogs and sites likes Amazon.com. Category III: FAD READER This is the kind of person who only reads the popular books/ latest bestsellers so he can be up to date on what other people are talking about and be seen by others as someone who is well read. He often reads for the social credit he can get out of it. His primary information search is more through his friend circle or his group of colleagues from whom he might hear the latest ‘fads’ in terms of books. Such a person could also go in for information search in popular newspapers/magazines or the shares on social media websites.

Descartes First Trademark Argument Essay Example for Free

Descartes First Trademark Argument Essay Descartes argues that our idea of God is innate, meaning it is something inside us from birth, something that has always been there and will always be there. He believed that everybody has an idea of God being a supremely perfect being, and comes to the conclusion in his argument, that God himself put this idea there, he even said that our idea of God is like â€Å"the mark of the craftsman stamped on his work† – us being the work, the mark being our knowledge of God himself. For Descartes, the fact that everybody has this innate idea of a supremely perfect God is in itself, proof of his existence; and the fact that this is an a priori argument, makes this argument appealing for all rationalists, as it relies on knowledge, and not sense experience – which Descartes never trusted. The foundation for Descartes argument is the causal adequacy principle, this is the idea that something (for example, A cannot exist unless it is produced or caused by something else that contains formally or eminently everything that is found in A. Formal reality refers to the basic properties that a thing possesses. However, this alone would cause problems for Descartes argument, because God obviously does not possess all of the properties, of all of the objects on earth, take for example a stone, its properties are hard, round, rough. God is not these things. The way Descartes gets round this is by saying that something say again, a stone, can be caused by something that contains the properties eminently. To contain something eminently, means for the cause to not necessarily have the same properties as the effect, but to have a greater property. So God may not possess the qualities of a stone (say hardness) however he possesses a quality greater then this. In other words, the causal adequacy effects means the cause of something can be no less then the effect. Descartes then takes this principle, and believes he can apply it to ideas, in particular the idea of God as a maximally/supremely perfect being, the cause of this idea, must therefore must contain formally or eminently maximum perfection, so therefore the cause of the idea of God must itself be maximally perfect. Descartes then uses deductive reasoning to decide where the idea came from, he first asked, could he be the source of the idea? However concludes that he can’t be, because he himself is not supremely perfect, and therefore he can’t be the cause of a supremely perfect being. He then considers if the idea of a supremely perfect being could have come through his senses, however he decides this isn’t possible, as he knows he has never seen (heard, smelt, tasted) a supremely perfect being. He then asks if he could have imagined a supremely perfect being, again he concludes he couldn’t have, because his idea of God is too clear and distinct to have come from his imagination. He therefore deducts that the cause of the idea of a supremely perfect being, is actually an existing supremely perfect being who ‘placed’ this idea in his mind; so therefore, God exists. There are however, a number of criticisms to this argument, firstly, many philosophers have raised doubts as to whether the causal adequacy principle is actually true to real life, as there are a number of examples in everyday situations where the cause at least appears to be less then the effect, for example, a match causing a roaring bonfire, or a whisper causing an avalanche. Further examples include chaos theory – the idea that a flutter of a butterfly’s wing can cause an earthquake. If indeed causal adequacy principle isn’t true, Descartes’ whole argument is flawed, as if the cause can be less great then the effect, then Descartes indeed could have created him himself. The second criticism is David Hume’s argument, that you cannot know a cause a priori, but only by experience. He says you cannot determine the cause of something, simply by using reasoning, for example, if a window is broken, you know it must have been something big enough to produce enough force to break it by our past experiences, not by using a priori reasoning. He concludes that you have to have to have observed the cause and the effect to truly know what happened, and therefore the cause must be in existence. The third criticism questions whether we can actually have an idea of a supremely perfect being, Thomas Aquinas doubts our imaginings of God, because he is too great, and that it is impossible for us to understand some of his qualities, particularly the idea of God being infinite, as it is beyond out understanding to understand what such qualities actually mean, and therefore we don’t have a genuine idea of God. The forth criticism of Descartes’ argument is that the idea of God is incoherent, there are attributes which appear to be just plain contradictory, for example God is both immanent and transcendent. There is also doubt raised over Gods supposed omnipotence, can he make a rock so heavy that he can’t lift it? It seems either way his omnipotence will be compromised. There is also the problem of evil, if God is all good, omniscient and omnipotent, then why does he allow suffering in the world? It would therefore seem that the idea of God is unclear, and if so it is likely the cause isn’t that great, and so would make sense that the cause could in fact have been Descartes himself. Another criticism is that the idea of God is not universal, as many other religions do not have an idea of one all powerful God, and therefore the idea of God cannot be innate, as if it was, it would be inside all of us. Also, it is put that the idea of omnipotence cannot be divine, as it can be traced back to having historical routes as tribes fought over who had the greatest God, they would start with ‘our God is powerful’ until one tribes got to ‘our God is maximally powerful’ – and therefore cannot be beaten by the other tribe. Descartes would argue that the fact other religions don’t acknowledge one maximally perfect God does not mean the innate idea is not in us, it just means they have chose to ignore it, or haven’t been made aware of it. He compares it to maths, in the way that we may not have used its truths and laws (i. e. that a triangles interior angles add up to 180) however they are still truths none the less. The last criticism is the empiricists account for the idea of God, that we have experienced attributes such as power, knowledge and goodness in people around them and simply extended them to the idea of God, therefore the cause is less great then the effect, and the idea is not innate. One thing it has in it’s favor, is that it is an a priori argument, and therefore uses reasoning, something rationalist would find very appealing, it means that if the premise can be accepted that it can give 100% certainty. Overall, I feel Descartes’ argument has too many valid criticisms for it to be considered as a successful argument, and its foundation- casual adequacy principle, is itself flawed, leaving the whole argument to fail.

Chinas String of Pearls Strategy

Chinas String of Pearls Strategy CHAPTER I INTRODUCTION String of Pearls Chinas String of Pearls strategy is the name given to a geopolitical strategy adopted by China arising as foreign oil becomes a center of gravity critical to Chinas energy needs.[1] This policy on the face of it appears to be an attempt by China to have an increased access to various ports and airfields in the South Asian region and at the same time to developing special diplomatic relations with these countries. This seems to be a strategic move as China is establishing these pearls or a series of nodes[2] of military and economic power thus enhancing its overall influence in these regions. A question posed by the String of Pearls is the uncertainty of whether Chinas growing influence is in accordance with Beijings stated policy of peaceful development, or if China one day will make a bid for regional primacy[3]. China gives the impression that it is interested in having a more powerful role to play on the global stage and thus evoking concerns in its neighbours, especially India, as being threatening. However, Chinas development of these strategic geopolitical pearls has been non-confrontational[4], with no evidence of imperial or neocolonial ambition, whatsoever. Extension of the Pearls The pearls extend[5] from the coast of mainland China through the littorals of the South China Sea, the Strait of Malacca, across the Indian Ocean, and on to the littorals of the Arabian Sea and Persian Gulf. However, looking at the progress that China has made in the last couple of years it may not be too erroneous to say that it is now trying to extend these pearls by making a foray into the African continent and the Central Asian regions. In light of this, it is imperative to focus on the abovementioned issue and the concerned predicament in the minds of the other world power players as to the real design and intention of China and the consequence that this might have on the energy and economic security of these nations, particularly India and the US. Emergence of Strategic Players The rise of this strategy has not only shifted focus on China and its growing energy needs but also has brought to limelight those smaller nations in which China is trying to gain foothold and develop these pearls. Nations like Myanmar, Bangladesh, Thailand and recently, countries like Sudan, Egypt Nigeria etc which are rich in energy resources, have come to play a major role in the worlds energy needs. These nations are fast becoming the centre of the worlds energy playing field and are emerging as the strategic centres around which this game of energy security will be played out in the coming future. Hence, it becomes essential for fast developing countries like India and Brazil, who need their share of this energy market, to progress ahead in order to counter Chinas strategy at the earliest. These nations need to evolve their own strategy if they do not want to be left behind because not acting at this point in time may have a huge impact on their economies in the coming future. METHODOLOGY Statement of the Problem This paper seeks to study and analyse the impact of Chinas string of pearls policy on the energy security of the worlds major players in general and India in particular. Hypothesis Chinas String of Pearls policy does not have security implications for India militarily but will have definite implications on the energy security particularly that of India and US. Justification of the study China, in the past decade has influenced the behaviour of its neighbouring nation states to quite an extent. In continuing with its stated policy of economic reforms, it had to secure all the energy resources that it could in the available time frame. Although the name String of Pearls was a name coined by a minor pentagon analyst[6] but certainly it does indicate Chinas quest for securing its energy needs by occupying certain areas of influence in and around its neighbourhood. China, in recent past, has started making headway into the vast energy resources of Africa and Central Asian regions apart from the resources in Myanmar, Spratlys and Paracel islands. Hence, a detailed study is required to look into the effects that may be caused by Chinas incursions into these yet untouched and somewhat unexplored regions. The world took some time to wake up to the vast amount of energy resources that these countries had and China had a headstart in this regard over other nations in these regions. This study tries to bring out the effect that the existing pearls have on the energy security of India and other nations and examines the new pearls and their effects on the energy security of these nations. Scope This study concentrates on the specific issue of string of pearls policy and the impact of this policy on the energy security of India in particular. The study also tries to bring out the aspect of Chinas inroads into the African Countries and the Central Asian Regions as an extension of this policy. The aspects of Chinas military modernization as an offshoot of this policy have been kept out of this discussion. Operational definitions Methods of data collection Organisation of the dissertation Rising China: Implications for India by Major General (Retd) Dhruv Katoch SM, VSM, USI journal July September 2009. www.wisegeek.com/what-is-a-string-of-pearls-strategy.htm www. U.S.-China Commission, 2005 Report to Congress. Rising China: Implications for India by Major General (Retd) Dhruv Katoch SM, VSM, USI journal July September 2009. www. M K Bhadrakumar, India and its troublesome Neighbours, The Hindu, 02 Nov 2009 CHAPTER II HISTORICAL BACKGROUND HOW CHINA TRANSFORMED IN THE LAST DECADE? Before we begin to discuss the String of Pearls policy in detail, lets take a look at how China has transformed itself economically in the last 10 years. China is the third largest economy in the world after the US and Japan. China has had the fastest-growing major economy for the past 30 years with an average annual GDP growth rate above 10%[7]. In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reforms. In an effort to awaken a dormant economic giant, it encouraged the formation of rural enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. By nearly all accounts, the strategy has worked spectacularly. Chinas economy regained momentum in the early 1990s. In early 1992, China made a series of political pronouncements designed to give new impetus to and reinvigorate the process of economic reform. Along with cContinuity in the political system, but a bolder reform was announced in the economic system were announced as the a hallmarks of the 10-year development plan for the 1990s. Although capital accumulation, i.e., the growth in the countrys stock of capital assets, such as new factories, manufacturing machinery, and communications systems, was important, as so were the number of Chinese workers., a A sharp, sustained increase in productivity (that is, increased worker efficiency) was the driving force behind thise economic boom. China has really come very far in the last ten years. Chinas growth as an economy wont flow smoothly from the bottom-left to the upper-right side of the chart. But the fact remains that China will be the biggest, fastest-growing economy in the world in the twenty-first century[8]. In fact, it is interesting to note that when China began its reforms , Deng Xiaoping put military last on the list forro modernization[9]. Chinas economy is gathering momentum and gaining speed. After a period of a double -digit growth in the post-Tiananmen period of the early 1900s, the law of large numbers would have predicted that thisat kind of growth couldnt happen again. But China has defied conventional wisdom. Already one of the largest economies, China grew by at least 10 percent in 2003, 2004, 2005, 2006 and 2007. The country had $21 billion in foreign reserves in 1993; ten years later, in 2003, China was adding $200 billion or more of reserves into its coffers each year. By the end of 2006, China had more than $1 trillion in foreign currency reserves, an unprecedented amount that was growing by $50 billion each month. Chinas leaders are traveling the world negotiating long-term supply contracts with oil-producing countries. China doesnt have enough of its own energy reserves, and obtaining enough energy to fuel its economy is a very real concern. Quest for Energy South Korea, Taiwan, Thailand, Hong Kong, and Singapore were dubbed Asian Tigers as they sustained rapid economic growth and industrialization from the 1960s through the 1990s. Chinas rise in the 21st century, the rise of the Asian Dragon, has the potential to surpass greatly the growth of the Asian Tigers. Since the beginning of economic reforms under Deng Xiaoping, China has averaged an annual gGross dDomestic pProduct (GDP) growth rate of 9.4 percent. Since 1978, foreign trade has grown from a fraction of a percent of the world economy, or $20.6 billion, to over 4 percent, or $851 billion in 2005. Chinas GDP is the worlds third largest at roughly 1/7th that of the United States, yet because of its population of 1.3 billion, on a per capita basis, China is ranked roughly 100th in the world and considered a low-income developing country. Many economists believe that with the latent potential of a rapidly emerging middle class, China has the potential to continue its impressive growt h for many years to come. An ever-increasing demand for energy fuels Chinas growth. Chinas Energy Needs The majority of Chinas energy requirement, 70 percent, is currently met by coal — China is the worlds largest producer and consumer of coal. Although coal will remain preeminent, oil consumption is expected to grow at an average annual rate of 5.8 percent for the next 10 years. In 1985, China was East Asias largest petroleum exporter; in 1993, China became a net oil importer; and in 2004, China leapfrogged Japan to become the worlds second largest oil importer. Roughly 40 percent of all new world oil demand is attributable to Chinas rising energy needs. Secure access to foreign oil resources will be necessary both for continued economic growth and, for the survival of the Chinese Communist regime because since growth is the cornerstone of Chinas domestic stability., for the survival of the Chinese Communist regime. http://en.wikipedia.org/Swiki/Economy_of_the_Peoples_Republic_of_China Jack Perkowski, Managing the Dragon Robyn Meredith, The Elephant and the Dragon CHAPTER III THE PEARLS AND THEIR STRATEGIC SIGNIFICANCE A few strategists in India and US have been using the term String of pearls to designate those areas where China is establishing its bases. These bases have been given the term pearls. Each pearl in the string is a nexus of Chinese geopolitical influence or military presence, which stretches from Hainan Island to Gwadar[10]. GWADAR, PAKISTAN Gwadar port is a small fishing village, 450 miles west of Karachi and 75 km east of Iran border , and was identified by Pakistan as a potential port location in 1964 but lacked the means to develop. It is a deep sea , warm water port situated in the Balochistan province of Pakistan at the apex of Arabian sea and entrance of Persian gulf. The port facility at Gwadar is a win-win prospect for both China and Pakistan. The port at Karachi currently handles 90 percent of Pakistans sea-borne trade, but because of its proximity to India, it is extremely vulnerable to blockade. This happened during the India-Pakistan War of 1971 and was threatened again during the Kargil conflict of 1999. The port is strategically located between three important regions Oil rich Middle East, heavily populated Pakistan and the Central Asian Region. A modern port at Gwadar would enhance Pakistans strategic depth along its coastline with respect to India. For China, the strategic value of Gwadar is its 240-mile distance from the Strait of Hormuz.[11] China has funded a majority of the $1.2 billion project and provided the technical expertise of hundreds of engineers. Since construction began in 2002, China has invested four times more than Pakistan and contributed an additional $200 million towards the building of a highway to connect Gwadar with Karachi. This port accrues the following advantages for China :- It can serve as a potential Chinese Naval Anchor. It serves as an energy transport hub to carry oil from Gwadar to its western region of Xinjiang by an oil pipeline. It helps insulate the Chinese imports from interdiction in case of any major war. It benefits by having access to international trade routes. Use of rail network is also a major advantage although the access in this case may be hampered due to the difference in gauge between China , Pakistan and CAR nations. Shanghai port is approximately 16000 kms from Chinese industrial areas and sea travel adds another 2-3 months whereas Gwadar is only 2500 Kms and will work throughout the year. It also provides Beijing with a listening post from where it can monitor US, India and US-India Maritime cooperation. As Admiral (retd) Sureesh Mehta[12] said It has a serious strategic implication for India, being only 180 Nm from the exits of Strait of Hormuz, would enable Pak to take control over the world energy jugular interdiction of Indian tankers. Hambantota, SriLanka Hambantota is a rural town in the SE coast of Srilanka. As per the 2007 agreement, development of Hambantota included[13]:- Developing a container port Developing a bunkering system Establishing an oil refinery Setting up an airport and other facilities The approximate expenditure in setting up Hambantota was $1 Bn of which 85% will be financed by China over the next fifteen years. A question that comes to mind is that although there seems to be not much economic significance of this pearl to China, then why is it investing so heavily here. Possibly the following answers come to mind:- There is a potential for Navy as a Port of Call. The port can be used for refueling purposes. The port will act as a Listening post and watch tower on Indias nuclear, space and naval establishments in South India. At present, there is no military component here but Chinas involvement here would make much more sense from a military perspective. Chittagong, Bangladesh Chittagong is the largest seaport in Bangladesh. China is developing a container port facility a Chittagong[14]. However, it is important to note here that there has been no further word on this development probably because of the regime change in Bangladesh which is India friendly. Sittwe, Myanmar Among the many ventures of China in Myanmar, the following two are the most crucial:- The gas pipeline from Myanmars West Arakan state to Yunnan province. Using Sittwe Port as a sea gateway. According to the 1992 agreement, China was ready to modernize Myanmars naval facilities in return for the permission to use the Coco Islands. China undertook building a deep sea port (Kyaukpyu)[15]; road construction from Kunmig to Sittwe for which a feasibility study was done in 2005 and is also funding the road construction from Rangoon to Akyab. From 2013, Chinese oil tankers from the Middle East and Africa will be able to cross the Bay of Bengal to dock at Myanmars Sittwe and Kyaukphyu ports from where their cargo will be transported through pipelines to Yunnan. The transport time of fuel that bypasses the Malacca Strait in this way will be cut by a week. A recent article in the Outlook[16] explained the significance of Chinese Vice-President Xi Jinpings Dec 09 visit to Myanmar, one of the key reasons being Chinas determination to go ahead with the construction of the parallel oil and gas pipelines from the Arakan area of Myanmar to Yunnan. He accorded a greater priority to the A rakan-Yunnan pipeline as compared to the Gwadar-Xinjiang pipeline proposed by the Pakistan Government citing the reason that the Chinese Government was more confident about the Myanmar Army taking care of the security of parallel pipelines passing through Myanmar than about the Pakistan Government for security of a pipeline passing through Pakistan. Moreover, the first stage of the pipeline connecting Xinjiang with the Central Asian Republics has been recently commissioned, thereby reducing the urgency of a Gwadar-Xinjiang pipeline. There is another added advantage of the Arakan-Yunnan pipelines over the pipeline from Gwadar. The former has a two-fold benefit it will help carrying oil brought by Chinese tankers from West Asia and Africa thereby reducing present Chinese dependence on Malacca Strait transporting the gas procured locally in Arakan by Chinese companies The pipeline from Gwadar can only be used to carry oil/gas from West Asia. Pakistan does not have any oil or gas to sell to China . As per the Indian analysts, Chinese presence may allow it to interdict regional SLOCs. On this account, Myanmar is emerging as the single largest threat to Indian strategic interests in SE Asia. Coco Islands Coco islands are a pair of strategically important islands located in the East Indian oceanOcean politically administered by Burma under Yangon division. The Great Coco Islands (102) and Small Coco Islands (51) are separated from each other by Alexandra Channel. They are separated from the Andaman by Coco Channel; Myanmar 300 km N Historically, these islands were a part of India under British rule but due to lack of close supervision, they were transferred to Myanmar. These islands were supposedly leased to the Peoples Republic of China since 1994, according to various amateur sources[17]. The government of Burma and that of the Peoples Republic of China do not comment on such manner. China has helped in carrying out the following activities here:- Establishing a SIGINT and ELINT int gathering station (supposedly 92) Oon the Great Coco Island. Building a maritime base on the little Coco Island. Development of airfield, radar dish, ae, jetty and a number of buildings. However, there are no signs of a large base here. Strategic importance of this pearl for China:- Monitoring Indian Naval activity Monitoring movement of other navies and ships esp between Bay of Bengal and Malacca Strait. May be used to monitor the activities at the launch site of ISRO at Sriharikota and DRDO at Chandipur on sea. According to Indian analysts, this may pose a threat to Indian tri-service command at Port Blair (190 Nm away). If seen in toto, this completes the maritime encirclement of India. Strait of Malacca Strait of Malacca is a narrow 805km stretch of water between Peninsular Malaysia and Indonesian island of Sumatra. At the Philips Channel, this Strait narrows down to 2.8 km, thus becoming one of the worlds most significant choke points. Straits of Malacca and Hormuz have become crucial waterways for China. Close cooperation with Myanmar and Pakistan thus also becomes a crucial issue[18]. From economic and strategic perspectives, Strait of Malacca is one of the most important shipping lanes of the world. This Strait is economically significant for China in that 50,000 vessels pass through it each year and almost 80% of Chinas oil passes through this Strait. In essence, whoever controls Malacca threatens Chinas oil supply route. China gave a statement indicating that it would use its naval might to ensure that these sea lanes remain open. In President Hu Jintaos own words[19], Malacca dilemma is the key to Chinas energy security. Hu also hinted that various powers (including US) had tried to enlarge their scope of influence in the Straits of Malacca by either controlling or trying to control navigation in the Straits of Malacca. It is interesting to note here that Indias naval base in the Andaman and Nicobar islands puts India in an advantageous position. Kra Canal Kra Canal or the Thai Canal is actually a plan for a large canal that would cut through Southern Thailand to enable improved transportation in the region. China had planned to construct this over ten years employing 30,000 workers with an estimated cost of $20-25 Bn. However, initially the plan seemed to have been dropped owing to environmental concerns but recently there have been signs of revival of this plan since there are economic benefits for China and a threat of piracy in the Strait of Malacca. The plan was tentatively approved in 2007 but Singapore and US showed their dissent for obvious reasons. Another alternative to this plan is to build a pipeline across the Isthmus to carry oil to ships waiting on the other side. South China Sea South China Sea is located south of China and Taiwan, west of Philippines, North West of Malaysia, North of Indonesia and East of Vietnam. The region has proven oil reserves 7.7 billion barrels (28 bn estimated) and its natural gas reserves are estimated at 7500 km3. A significant part of this region is the Spratly Islands where oil was discovered in 1968. It has been estimated by the Geology and Mineral Resources Ministry[20] of Peoples Republic of China that Spratly islands may have oil reserves to make them the fourth largest reserve bed in the world. Hence, there is intensification by PRC to claim these islands. Woody Islands Woody Islands are a part of the Paracel Islands occupied by PRC. This node acts as a Chinese Emergency Rescue Centre served by an artificial harbour and an airfield with a 2350m runway. The centre was occupied in 1956 and also has oil tanks, gun emplacements and ammunition storage bunkers. The islands may be used as a staging point to sp offn ops in the Spratlys. There are also reports of the existence of Silkworm anti-ship cruise missile installations on the Woody Islands. In mid 95, a new SIGINT station was established on the Rocky Island, north to Woody Island. Since it is the highest point, there is good signal interception is obviously good. Hainan Islands These 200 islands form the smallest province of PRC and are home to the PLAN strategic nuclear submarine naval harbour that is capable of hiding upto 20 nuclear submarines from spy satellites. The harbour houses nuclear ballistic missile subs and is large enough to accommodate aircraft carriers. PLAN has developed Sanya Naval Base (Yulin) in Southern part to op Jin class subs (SSBNs) and Shang class subs (SSNs) (replaced Han Class). Rising China : Implications for India by Major General (Retd) Dhruv Katoch SM,VSM ,USI journal July September 2009. Source: http://intellibriefs.blogspot.com/2008/01/gwadar-port-has-strategic-implications.html Source: http://intellibriefs.blogspot.com/2008/01/gwadar-port-has-strategic-implications.html Source: http://www.marinebuzz.com/2007/11/02/china-funds-sri-lanka-hambantota-port-development-project/ Dilip Ghosh,Chinas String of Pearls encircling India , Asia Defence News Vol IV , Issue 12 , 15 Dec 2009. Dilip Ghosh,Chinas String of Pearls encircling India , Asia Defence News Vol IV , Issue 12 , 15 Dec 2009. Source: http://www.outlookindia.com/article.aspx?263531 Source: http://en.wikipedia.org/wiki/Coco_Islands Amardeep Athwal, China India relations contemporary Dynamics Source: The Straits of Malacca: the Rise of China, America s Intentions and the Dilemma of the Littoral States by Mokhzani Zubir, Researcher, Centre for Maritime Security Diplomacy Source: http://en.wikipedia.org/wiki/Spratly_Islands CHAPTER IV POSSIBLE MOTIVATIONAL FACTORS BEHIND THIS STRATEGY Chinas development during the past decade, from its expanding economy and increased global influence to its growing military might and demand for energy, presented tremendous challenges to their leaders as they managed the turmoil of massive structural, technological, and social changes. The governing three key worries of the Chinese government have been:-elites of China had three overarching concerns:- Regime survival. Territorial integrity. Domestic stability. In the succeeding paragraphs these three concerns and their impact on the economy have been highlighted. The relation between the economy and the string of pearls strategy has also been shown. Regime Survival Regime survival was has always been and will shall remain the foremost concern of the ruling Chinese Communist Party (CCP). The party leadership is It is aware that their survival depends upon the satisfaction of the Chinese people and their ability how well they are able to protect Chinese national interests. The collapse of the When Soviet Union collapsed and the end of the Cold War ended, Communism was exposed deduced as a communism as a bankrupt ideology with a flawed economic system[21]. To avoid the same fate as had befallen the erstwhile USSR, the Chinese adopted a socialist market economy. Although a lot of economic and social reforms have taken place but , in the middle of it the CCP has maintained a strict authoritarian control. The CCP is aware of the fact that as long as the economy is thriving the populace willl be satisfied and hence there would not be a serious threat to the current regime. Territorial Integrity China has in the recent past adopted a strategy of befriending its neighbours with the notable exceptions being India and Taiwan and in the process has met with considerable success too. Although certain contentious issues still remain with the countries such as Japan over some disputed islands but more or less China has successfully demilitarized its land borders in the nNorthern and the cCentral aAsia. On the central Central asian Asian front, China has become more influential under the support of the Shanghai Cooperation Organization (SCO), whose member states consist of China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan, along with the observer members of India, Pakistan, Iran, and Mongolia. It is slowly but surely laying to rest the dispute over Tibet although in a more subtle way. The only spanner in the wheel that remains is its relations and territorial disputes with India which are not showing any signs of fast progress. However, the relations with India have been more of a sine curve with statements against one another coming from both sides. India has more or less recognized Chinas claims to Tibet and China has reciprocated by recognizing Indias claim to the Himalayan state of Sikkim. Even with respect to Taiwan, Chinese policy attempts to balance the stick of diplomatic and military pressure with the carrot of mutually beneficial cross-strait economic ties. With the last elections in Taiwan throwing some startling results in favour of cChina, the day is not far off when it will come into some sort of agreement with Taiwan also. What has made China want to have good relations with its immediate neighbours . neighbours. The one thing that comes to mind is economy. It seems that the ever increasing demands of increased economic development are the driving forces behind Chinas improved relations with her neighbors. Domestic Stability Again successful economic development is perceived as key to Chinas third area of strategic concern, domestic stability. CCP is focused inward, and primarily domestic politics drive Chinas foreign and economic policies. Changes to the economic system and the decision to embrace globalization are causing major shifts in Chinese society[22]. The Chinese government is aware that although it is moving towards becoming an economically prosperous nation but everything is not in order inside their house. ThHere are large disparities between the economy of the people who are living in the coastal cities such as Shanghai and the people who are living in the interior less developed regions which have not seen the effects of the information revolution. Due to this class distinction due as a result of theto economic stratification, the government is wary and knows that if there are anti government demonstrations they cannot be repressed as was done earlier, the famous example being of the Tianan men Square crackdown of June 1989. Thus to address this issue the regime is aware that it needs to bring economic parity to its provinces such as Yunnan and Xinjiang. In meeting this challenge, the government must foster economic prosperity to satisfy the demands and expectations of the Chinese people. Link with Energy All these three abovementioned factors, as have been shown in the preceding paragraphs, are inescapably linked with the economic prosperity of China. The government iof China is aware that the greatest strength of cChina as also its greatest vulnerability is the its economy and hence it has based its national policy and strategy on economyaround this key factor. For its economy to continue thriving, as is with the case of all nations, China knows that it has to rely upon continued and sustained import of energy. Since energy provides the foundation of the economy, Chinas economic policy depends on the success of its energy policy. As the energy resources available within the country are quite limited and cannot ascribe to the full economy; hence it China, therefore, has to rely in a big way on the external sources of energy and raw materials. To import these energy resources and raw materials, it has to have a good and effective transportation system both on land and at sea is required. The three major problems that were faced by China in importing energy via land based routes were that firstly, most of the energy rich nations are either not connected by land; secondly, it would take a major effort and would not be cost effective to connect them with land and thirdly, even if these nations were connected, their links pass through other natio ns which may be a risk keeping in mind the fluid world order and changing equations. Hence, it was important that the Sea Lines Of Communications , which were importing the major chunk of energy be secured . Securing Sea Lines of Communications for energy and raw materials supports Chinas energy policy and is the principal motivation behind the String of Pearls. This is how and why the String of Pearls relates to Chinas Grand National Strategy. Protection of SLOCs The question that arises here is that from whowhom is the protection is required, if at all.? Whom does China fear? Over 70 percent of the total oil imports of China come from either the Middle East or the African countries majority of which is transported through sea and this will remain so for the foreseeable future. Hence, China has a long-term commitment to these supply sources due to which it has been trying to build up better relations with these countries whether that comes as monetary help or in some other form. For eg, Saudi Arabia is Chinas largest crude oil supplier, and the Saudi national oil company, Aramco, is a 25 percent investor in Chinas String of Pearls Strategy Chinas String of Pearls Strategy CHAPTER I INTRODUCTION String of Pearls Chinas String of Pearls strategy is the name given to a geopolitical strategy adopted by China arising as foreign oil becomes a center of gravity critical to Chinas energy needs.[1] This policy on the face of it appears to be an attempt by China to have an increased access to various ports and airfields in the South Asian region and at the same time to developing special diplomatic relations with these countries. This seems to be a strategic move as China is establishing these pearls or a series of nodes[2] of military and economic power thus enhancing its overall influence in these regions. A question posed by the String of Pearls is the uncertainty of whether Chinas growing influence is in accordance with Beijings stated policy of peaceful development, or if China one day will make a bid for regional primacy[3]. China gives the impression that it is interested in having a more powerful role to play on the global stage and thus evoking concerns in its neighbours, especially India, as being threatening. However, Chinas development of these strategic geopolitical pearls has been non-confrontational[4], with no evidence of imperial or neocolonial ambition, whatsoever. Extension of the Pearls The pearls extend[5] from the coast of mainland China through the littorals of the South China Sea, the Strait of Malacca, across the Indian Ocean, and on to the littorals of the Arabian Sea and Persian Gulf. However, looking at the progress that China has made in the last couple of years it may not be too erroneous to say that it is now trying to extend these pearls by making a foray into the African continent and the Central Asian regions. In light of this, it is imperative to focus on the abovementioned issue and the concerned predicament in the minds of the other world power players as to the real design and intention of China and the consequence that this might have on the energy and economic security of these nations, particularly India and the US. Emergence of Strategic Players The rise of this strategy has not only shifted focus on China and its growing energy needs but also has brought to limelight those smaller nations in which China is trying to gain foothold and develop these pearls. Nations like Myanmar, Bangladesh, Thailand and recently, countries like Sudan, Egypt Nigeria etc which are rich in energy resources, have come to play a major role in the worlds energy needs. These nations are fast becoming the centre of the worlds energy playing field and are emerging as the strategic centres around which this game of energy security will be played out in the coming future. Hence, it becomes essential for fast developing countries like India and Brazil, who need their share of this energy market, to progress ahead in order to counter Chinas strategy at the earliest. These nations need to evolve their own strategy if they do not want to be left behind because not acting at this point in time may have a huge impact on their economies in the coming future. METHODOLOGY Statement of the Problem This paper seeks to study and analyse the impact of Chinas string of pearls policy on the energy security of the worlds major players in general and India in particular. Hypothesis Chinas String of Pearls policy does not have security implications for India militarily but will have definite implications on the energy security particularly that of India and US. Justification of the study China, in the past decade has influenced the behaviour of its neighbouring nation states to quite an extent. In continuing with its stated policy of economic reforms, it had to secure all the energy resources that it could in the available time frame. Although the name String of Pearls was a name coined by a minor pentagon analyst[6] but certainly it does indicate Chinas quest for securing its energy needs by occupying certain areas of influence in and around its neighbourhood. China, in recent past, has started making headway into the vast energy resources of Africa and Central Asian regions apart from the resources in Myanmar, Spratlys and Paracel islands. Hence, a detailed study is required to look into the effects that may be caused by Chinas incursions into these yet untouched and somewhat unexplored regions. The world took some time to wake up to the vast amount of energy resources that these countries had and China had a headstart in this regard over other nations in these regions. This study tries to bring out the effect that the existing pearls have on the energy security of India and other nations and examines the new pearls and their effects on the energy security of these nations. Scope This study concentrates on the specific issue of string of pearls policy and the impact of this policy on the energy security of India in particular. The study also tries to bring out the aspect of Chinas inroads into the African Countries and the Central Asian Regions as an extension of this policy. The aspects of Chinas military modernization as an offshoot of this policy have been kept out of this discussion. Operational definitions Methods of data collection Organisation of the dissertation Rising China: Implications for India by Major General (Retd) Dhruv Katoch SM, VSM, USI journal July September 2009. www.wisegeek.com/what-is-a-string-of-pearls-strategy.htm www. U.S.-China Commission, 2005 Report to Congress. Rising China: Implications for India by Major General (Retd) Dhruv Katoch SM, VSM, USI journal July September 2009. www. M K Bhadrakumar, India and its troublesome Neighbours, The Hindu, 02 Nov 2009 CHAPTER II HISTORICAL BACKGROUND HOW CHINA TRANSFORMED IN THE LAST DECADE? Before we begin to discuss the String of Pearls policy in detail, lets take a look at how China has transformed itself economically in the last 10 years. China is the third largest economy in the world after the US and Japan. China has had the fastest-growing major economy for the past 30 years with an average annual GDP growth rate above 10%[7]. In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reforms. In an effort to awaken a dormant economic giant, it encouraged the formation of rural enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. By nearly all accounts, the strategy has worked spectacularly. Chinas economy regained momentum in the early 1990s. In early 1992, China made a series of political pronouncements designed to give new impetus to and reinvigorate the process of economic reform. Along with cContinuity in the political system, but a bolder reform was announced in the economic system were announced as the a hallmarks of the 10-year development plan for the 1990s. Although capital accumulation, i.e., the growth in the countrys stock of capital assets, such as new factories, manufacturing machinery, and communications systems, was important, as so were the number of Chinese workers., a A sharp, sustained increase in productivity (that is, increased worker efficiency) was the driving force behind thise economic boom. China has really come very far in the last ten years. Chinas growth as an economy wont flow smoothly from the bottom-left to the upper-right side of the chart. But the fact remains that China will be the biggest, fastest-growing economy in the world in the twenty-first century[8]. In fact, it is interesting to note that when China began its reforms , Deng Xiaoping put military last on the list forro modernization[9]. Chinas economy is gathering momentum and gaining speed. After a period of a double -digit growth in the post-Tiananmen period of the early 1900s, the law of large numbers would have predicted that thisat kind of growth couldnt happen again. But China has defied conventional wisdom. Already one of the largest economies, China grew by at least 10 percent in 2003, 2004, 2005, 2006 and 2007. The country had $21 billion in foreign reserves in 1993; ten years later, in 2003, China was adding $200 billion or more of reserves into its coffers each year. By the end of 2006, China had more than $1 trillion in foreign currency reserves, an unprecedented amount that was growing by $50 billion each month. Chinas leaders are traveling the world negotiating long-term supply contracts with oil-producing countries. China doesnt have enough of its own energy reserves, and obtaining enough energy to fuel its economy is a very real concern. Quest for Energy South Korea, Taiwan, Thailand, Hong Kong, and Singapore were dubbed Asian Tigers as they sustained rapid economic growth and industrialization from the 1960s through the 1990s. Chinas rise in the 21st century, the rise of the Asian Dragon, has the potential to surpass greatly the growth of the Asian Tigers. Since the beginning of economic reforms under Deng Xiaoping, China has averaged an annual gGross dDomestic pProduct (GDP) growth rate of 9.4 percent. Since 1978, foreign trade has grown from a fraction of a percent of the world economy, or $20.6 billion, to over 4 percent, or $851 billion in 2005. Chinas GDP is the worlds third largest at roughly 1/7th that of the United States, yet because of its population of 1.3 billion, on a per capita basis, China is ranked roughly 100th in the world and considered a low-income developing country. Many economists believe that with the latent potential of a rapidly emerging middle class, China has the potential to continue its impressive growt h for many years to come. An ever-increasing demand for energy fuels Chinas growth. Chinas Energy Needs The majority of Chinas energy requirement, 70 percent, is currently met by coal — China is the worlds largest producer and consumer of coal. Although coal will remain preeminent, oil consumption is expected to grow at an average annual rate of 5.8 percent for the next 10 years. In 1985, China was East Asias largest petroleum exporter; in 1993, China became a net oil importer; and in 2004, China leapfrogged Japan to become the worlds second largest oil importer. Roughly 40 percent of all new world oil demand is attributable to Chinas rising energy needs. Secure access to foreign oil resources will be necessary both for continued economic growth and, for the survival of the Chinese Communist regime because since growth is the cornerstone of Chinas domestic stability., for the survival of the Chinese Communist regime. http://en.wikipedia.org/Swiki/Economy_of_the_Peoples_Republic_of_China Jack Perkowski, Managing the Dragon Robyn Meredith, The Elephant and the Dragon CHAPTER III THE PEARLS AND THEIR STRATEGIC SIGNIFICANCE A few strategists in India and US have been using the term String of pearls to designate those areas where China is establishing its bases. These bases have been given the term pearls. Each pearl in the string is a nexus of Chinese geopolitical influence or military presence, which stretches from Hainan Island to Gwadar[10]. GWADAR, PAKISTAN Gwadar port is a small fishing village, 450 miles west of Karachi and 75 km east of Iran border , and was identified by Pakistan as a potential port location in 1964 but lacked the means to develop. It is a deep sea , warm water port situated in the Balochistan province of Pakistan at the apex of Arabian sea and entrance of Persian gulf. The port facility at Gwadar is a win-win prospect for both China and Pakistan. The port at Karachi currently handles 90 percent of Pakistans sea-borne trade, but because of its proximity to India, it is extremely vulnerable to blockade. This happened during the India-Pakistan War of 1971 and was threatened again during the Kargil conflict of 1999. The port is strategically located between three important regions Oil rich Middle East, heavily populated Pakistan and the Central Asian Region. A modern port at Gwadar would enhance Pakistans strategic depth along its coastline with respect to India. For China, the strategic value of Gwadar is its 240-mile distance from the Strait of Hormuz.[11] China has funded a majority of the $1.2 billion project and provided the technical expertise of hundreds of engineers. Since construction began in 2002, China has invested four times more than Pakistan and contributed an additional $200 million towards the building of a highway to connect Gwadar with Karachi. This port accrues the following advantages for China :- It can serve as a potential Chinese Naval Anchor. It serves as an energy transport hub to carry oil from Gwadar to its western region of Xinjiang by an oil pipeline. It helps insulate the Chinese imports from interdiction in case of any major war. It benefits by having access to international trade routes. Use of rail network is also a major advantage although the access in this case may be hampered due to the difference in gauge between China , Pakistan and CAR nations. Shanghai port is approximately 16000 kms from Chinese industrial areas and sea travel adds another 2-3 months whereas Gwadar is only 2500 Kms and will work throughout the year. It also provides Beijing with a listening post from where it can monitor US, India and US-India Maritime cooperation. As Admiral (retd) Sureesh Mehta[12] said It has a serious strategic implication for India, being only 180 Nm from the exits of Strait of Hormuz, would enable Pak to take control over the world energy jugular interdiction of Indian tankers. Hambantota, SriLanka Hambantota is a rural town in the SE coast of Srilanka. As per the 2007 agreement, development of Hambantota included[13]:- Developing a container port Developing a bunkering system Establishing an oil refinery Setting up an airport and other facilities The approximate expenditure in setting up Hambantota was $1 Bn of which 85% will be financed by China over the next fifteen years. A question that comes to mind is that although there seems to be not much economic significance of this pearl to China, then why is it investing so heavily here. Possibly the following answers come to mind:- There is a potential for Navy as a Port of Call. The port can be used for refueling purposes. The port will act as a Listening post and watch tower on Indias nuclear, space and naval establishments in South India. At present, there is no military component here but Chinas involvement here would make much more sense from a military perspective. Chittagong, Bangladesh Chittagong is the largest seaport in Bangladesh. China is developing a container port facility a Chittagong[14]. However, it is important to note here that there has been no further word on this development probably because of the regime change in Bangladesh which is India friendly. Sittwe, Myanmar Among the many ventures of China in Myanmar, the following two are the most crucial:- The gas pipeline from Myanmars West Arakan state to Yunnan province. Using Sittwe Port as a sea gateway. According to the 1992 agreement, China was ready to modernize Myanmars naval facilities in return for the permission to use the Coco Islands. China undertook building a deep sea port (Kyaukpyu)[15]; road construction from Kunmig to Sittwe for which a feasibility study was done in 2005 and is also funding the road construction from Rangoon to Akyab. From 2013, Chinese oil tankers from the Middle East and Africa will be able to cross the Bay of Bengal to dock at Myanmars Sittwe and Kyaukphyu ports from where their cargo will be transported through pipelines to Yunnan. The transport time of fuel that bypasses the Malacca Strait in this way will be cut by a week. A recent article in the Outlook[16] explained the significance of Chinese Vice-President Xi Jinpings Dec 09 visit to Myanmar, one of the key reasons being Chinas determination to go ahead with the construction of the parallel oil and gas pipelines from the Arakan area of Myanmar to Yunnan. He accorded a greater priority to the A rakan-Yunnan pipeline as compared to the Gwadar-Xinjiang pipeline proposed by the Pakistan Government citing the reason that the Chinese Government was more confident about the Myanmar Army taking care of the security of parallel pipelines passing through Myanmar than about the Pakistan Government for security of a pipeline passing through Pakistan. Moreover, the first stage of the pipeline connecting Xinjiang with the Central Asian Republics has been recently commissioned, thereby reducing the urgency of a Gwadar-Xinjiang pipeline. There is another added advantage of the Arakan-Yunnan pipelines over the pipeline from Gwadar. The former has a two-fold benefit it will help carrying oil brought by Chinese tankers from West Asia and Africa thereby reducing present Chinese dependence on Malacca Strait transporting the gas procured locally in Arakan by Chinese companies The pipeline from Gwadar can only be used to carry oil/gas from West Asia. Pakistan does not have any oil or gas to sell to China . As per the Indian analysts, Chinese presence may allow it to interdict regional SLOCs. On this account, Myanmar is emerging as the single largest threat to Indian strategic interests in SE Asia. Coco Islands Coco islands are a pair of strategically important islands located in the East Indian oceanOcean politically administered by Burma under Yangon division. The Great Coco Islands (102) and Small Coco Islands (51) are separated from each other by Alexandra Channel. They are separated from the Andaman by Coco Channel; Myanmar 300 km N Historically, these islands were a part of India under British rule but due to lack of close supervision, they were transferred to Myanmar. These islands were supposedly leased to the Peoples Republic of China since 1994, according to various amateur sources[17]. The government of Burma and that of the Peoples Republic of China do not comment on such manner. China has helped in carrying out the following activities here:- Establishing a SIGINT and ELINT int gathering station (supposedly 92) Oon the Great Coco Island. Building a maritime base on the little Coco Island. Development of airfield, radar dish, ae, jetty and a number of buildings. However, there are no signs of a large base here. Strategic importance of this pearl for China:- Monitoring Indian Naval activity Monitoring movement of other navies and ships esp between Bay of Bengal and Malacca Strait. May be used to monitor the activities at the launch site of ISRO at Sriharikota and DRDO at Chandipur on sea. According to Indian analysts, this may pose a threat to Indian tri-service command at Port Blair (190 Nm away). If seen in toto, this completes the maritime encirclement of India. Strait of Malacca Strait of Malacca is a narrow 805km stretch of water between Peninsular Malaysia and Indonesian island of Sumatra. At the Philips Channel, this Strait narrows down to 2.8 km, thus becoming one of the worlds most significant choke points. Straits of Malacca and Hormuz have become crucial waterways for China. Close cooperation with Myanmar and Pakistan thus also becomes a crucial issue[18]. From economic and strategic perspectives, Strait of Malacca is one of the most important shipping lanes of the world. This Strait is economically significant for China in that 50,000 vessels pass through it each year and almost 80% of Chinas oil passes through this Strait. In essence, whoever controls Malacca threatens Chinas oil supply route. China gave a statement indicating that it would use its naval might to ensure that these sea lanes remain open. In President Hu Jintaos own words[19], Malacca dilemma is the key to Chinas energy security. Hu also hinted that various powers (including US) had tried to enlarge their scope of influence in the Straits of Malacca by either controlling or trying to control navigation in the Straits of Malacca. It is interesting to note here that Indias naval base in the Andaman and Nicobar islands puts India in an advantageous position. Kra Canal Kra Canal or the Thai Canal is actually a plan for a large canal that would cut through Southern Thailand to enable improved transportation in the region. China had planned to construct this over ten years employing 30,000 workers with an estimated cost of $20-25 Bn. However, initially the plan seemed to have been dropped owing to environmental concerns but recently there have been signs of revival of this plan since there are economic benefits for China and a threat of piracy in the Strait of Malacca. The plan was tentatively approved in 2007 but Singapore and US showed their dissent for obvious reasons. Another alternative to this plan is to build a pipeline across the Isthmus to carry oil to ships waiting on the other side. South China Sea South China Sea is located south of China and Taiwan, west of Philippines, North West of Malaysia, North of Indonesia and East of Vietnam. The region has proven oil reserves 7.7 billion barrels (28 bn estimated) and its natural gas reserves are estimated at 7500 km3. A significant part of this region is the Spratly Islands where oil was discovered in 1968. It has been estimated by the Geology and Mineral Resources Ministry[20] of Peoples Republic of China that Spratly islands may have oil reserves to make them the fourth largest reserve bed in the world. Hence, there is intensification by PRC to claim these islands. Woody Islands Woody Islands are a part of the Paracel Islands occupied by PRC. This node acts as a Chinese Emergency Rescue Centre served by an artificial harbour and an airfield with a 2350m runway. The centre was occupied in 1956 and also has oil tanks, gun emplacements and ammunition storage bunkers. The islands may be used as a staging point to sp offn ops in the Spratlys. There are also reports of the existence of Silkworm anti-ship cruise missile installations on the Woody Islands. In mid 95, a new SIGINT station was established on the Rocky Island, north to Woody Island. Since it is the highest point, there is good signal interception is obviously good. Hainan Islands These 200 islands form the smallest province of PRC and are home to the PLAN strategic nuclear submarine naval harbour that is capable of hiding upto 20 nuclear submarines from spy satellites. The harbour houses nuclear ballistic missile subs and is large enough to accommodate aircraft carriers. PLAN has developed Sanya Naval Base (Yulin) in Southern part to op Jin class subs (SSBNs) and Shang class subs (SSNs) (replaced Han Class). Rising China : Implications for India by Major General (Retd) Dhruv Katoch SM,VSM ,USI journal July September 2009. Source: http://intellibriefs.blogspot.com/2008/01/gwadar-port-has-strategic-implications.html Source: http://intellibriefs.blogspot.com/2008/01/gwadar-port-has-strategic-implications.html Source: http://www.marinebuzz.com/2007/11/02/china-funds-sri-lanka-hambantota-port-development-project/ Dilip Ghosh,Chinas String of Pearls encircling India , Asia Defence News Vol IV , Issue 12 , 15 Dec 2009. Dilip Ghosh,Chinas String of Pearls encircling India , Asia Defence News Vol IV , Issue 12 , 15 Dec 2009. Source: http://www.outlookindia.com/article.aspx?263531 Source: http://en.wikipedia.org/wiki/Coco_Islands Amardeep Athwal, China India relations contemporary Dynamics Source: The Straits of Malacca: the Rise of China, America s Intentions and the Dilemma of the Littoral States by Mokhzani Zubir, Researcher, Centre for Maritime Security Diplomacy Source: http://en.wikipedia.org/wiki/Spratly_Islands CHAPTER IV POSSIBLE MOTIVATIONAL FACTORS BEHIND THIS STRATEGY Chinas development during the past decade, from its expanding economy and increased global influence to its growing military might and demand for energy, presented tremendous challenges to their leaders as they managed the turmoil of massive structural, technological, and social changes. The governing three key worries of the Chinese government have been:-elites of China had three overarching concerns:- Regime survival. Territorial integrity. Domestic stability. In the succeeding paragraphs these three concerns and their impact on the economy have been highlighted. The relation between the economy and the string of pearls strategy has also been shown. Regime Survival Regime survival was has always been and will shall remain the foremost concern of the ruling Chinese Communist Party (CCP). The party leadership is It is aware that their survival depends upon the satisfaction of the Chinese people and their ability how well they are able to protect Chinese national interests. The collapse of the When Soviet Union collapsed and the end of the Cold War ended, Communism was exposed deduced as a communism as a bankrupt ideology with a flawed economic system[21]. To avoid the same fate as had befallen the erstwhile USSR, the Chinese adopted a socialist market economy. Although a lot of economic and social reforms have taken place but , in the middle of it the CCP has maintained a strict authoritarian control. The CCP is aware of the fact that as long as the economy is thriving the populace willl be satisfied and hence there would not be a serious threat to the current regime. Territorial Integrity China has in the recent past adopted a strategy of befriending its neighbours with the notable exceptions being India and Taiwan and in the process has met with considerable success too. Although certain contentious issues still remain with the countries such as Japan over some disputed islands but more or less China has successfully demilitarized its land borders in the nNorthern and the cCentral aAsia. On the central Central asian Asian front, China has become more influential under the support of the Shanghai Cooperation Organization (SCO), whose member states consist of China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan, along with the observer members of India, Pakistan, Iran, and Mongolia. It is slowly but surely laying to rest the dispute over Tibet although in a more subtle way. The only spanner in the wheel that remains is its relations and territorial disputes with India which are not showing any signs of fast progress. However, the relations with India have been more of a sine curve with statements against one another coming from both sides. India has more or less recognized Chinas claims to Tibet and China has reciprocated by recognizing Indias claim to the Himalayan state of Sikkim. Even with respect to Taiwan, Chinese policy attempts to balance the stick of diplomatic and military pressure with the carrot of mutually beneficial cross-strait economic ties. With the last elections in Taiwan throwing some startling results in favour of cChina, the day is not far off when it will come into some sort of agreement with Taiwan also. What has made China want to have good relations with its immediate neighbours . neighbours. The one thing that comes to mind is economy. It seems that the ever increasing demands of increased economic development are the driving forces behind Chinas improved relations with her neighbors. Domestic Stability Again successful economic development is perceived as key to Chinas third area of strategic concern, domestic stability. CCP is focused inward, and primarily domestic politics drive Chinas foreign and economic policies. Changes to the economic system and the decision to embrace globalization are causing major shifts in Chinese society[22]. The Chinese government is aware that although it is moving towards becoming an economically prosperous nation but everything is not in order inside their house. ThHere are large disparities between the economy of the people who are living in the coastal cities such as Shanghai and the people who are living in the interior less developed regions which have not seen the effects of the information revolution. Due to this class distinction due as a result of theto economic stratification, the government is wary and knows that if there are anti government demonstrations they cannot be repressed as was done earlier, the famous example being of the Tianan men Square crackdown of June 1989. Thus to address this issue the regime is aware that it needs to bring economic parity to its provinces such as Yunnan and Xinjiang. In meeting this challenge, the government must foster economic prosperity to satisfy the demands and expectations of the Chinese people. Link with Energy All these three abovementioned factors, as have been shown in the preceding paragraphs, are inescapably linked with the economic prosperity of China. The government iof China is aware that the greatest strength of cChina as also its greatest vulnerability is the its economy and hence it has based its national policy and strategy on economyaround this key factor. For its economy to continue thriving, as is with the case of all nations, China knows that it has to rely upon continued and sustained import of energy. Since energy provides the foundation of the economy, Chinas economic policy depends on the success of its energy policy. As the energy resources available within the country are quite limited and cannot ascribe to the full economy; hence it China, therefore, has to rely in a big way on the external sources of energy and raw materials. To import these energy resources and raw materials, it has to have a good and effective transportation system both on land and at sea is required. The three major problems that were faced by China in importing energy via land based routes were that firstly, most of the energy rich nations are either not connected by land; secondly, it would take a major effort and would not be cost effective to connect them with land and thirdly, even if these nations were connected, their links pass through other natio ns which may be a risk keeping in mind the fluid world order and changing equations. Hence, it was important that the Sea Lines Of Communications , which were importing the major chunk of energy be secured . Securing Sea Lines of Communications for energy and raw materials supports Chinas energy policy and is the principal motivation behind the String of Pearls. This is how and why the String of Pearls relates to Chinas Grand National Strategy. Protection of SLOCs The question that arises here is that from whowhom is the protection is required, if at all.? Whom does China fear? Over 70 percent of the total oil imports of China come from either the Middle East or the African countries majority of which is transported through sea and this will remain so for the foreseeable future. Hence, China has a long-term commitment to these supply sources due to which it has been trying to build up better relations with these countries whether that comes as monetary help or in some other form. For eg, Saudi Arabia is Chinas largest crude oil supplier, and the Saudi national oil company, Aramco, is a 25 percent investor in