Challenges Faced by Hr Management Essay

Challenges faced by HR management when significant staff cutbacks occur and how they should be addressed Downsizing is never easy on the Human Resource department. In fact, if not handled properly, it could be detrimental to the overall organization. Here are some challenges that come along with downsizing: Addressing the shifting morale and needs of the surviving employees, maintaining the productivity and profitability of the organization, and retaining skilled, and qualified employees. Staff cutbacks can leave the surviving employees feeling demoralized, bitter, angry, and in shock. One role of Human Resource Management is to act as an employee advocate. In a time of workforce reduction, communicating with employees as well as acknowledging their concerns and fears, can work to rebuild the employee’s sense of security in the workplace and help him/her to reengage in the culture of the organization. Through strategic Human Resource Management and planning, the shared values and beliefs of the organization can be reinforced to its employees and the collective value of the capabilities, knowledge, skills, life experiences, and motivation of the organizational workforce can be retained. Once there has been a major reduction in force within an organization, productivity and profitability becomes a main target of Human Resource management. One HR strategy would be to give more hours and responsibility to existing workers. However, eventually employees will become overworked and productivity will suffer. Utilizing alternative tactics such as hiring contingent or temporary workers is a strategic HR plan to maintain productivity and profitability while not having to pay the cost of benefits. Reducing turnover of qualified and skilled employees is an ongoing effort of Human Resource Management. Employees who survive workforce cuts tend to disengage the culture of the organization because they have lost faith in the organization being a lifetime employer. When an organization goes through a massive layoff process, the employee retention efforts of Human Resource Management could intensify. Employee retention efforts may include, constantly communicating with employees, and paying attention to surviving employees. As an example of a strategic Human Resource plan to hold on to skilled employees, an alternative work arrangement such as telecommuting might be offered to a worker. The functionality of Human Resources is always changing to meet the ever evolving needs of an organization. For example, when Xerox decided to downsize, the function of Human Resources became environmental scanning strategic planning. The restructuring goal however, included more than just a reduction in force. It was determined that the Human Resource entity needed to be streamlined and become a more efficient part of the organization. As a result, the use of technology, and maintaining employee retention was the core that developed HR into a more strategic part of the Xerox organization. There are two purposes that HR technology serves in an organization. The first is to improve the efficiency of employee data and HR activities collection. At Xerox, the use of HR technology has been instrumental in making HR services more accessible to their workforce. The second purpose of HR technology is to capture a greater degree of informational data that enables HR planning and managerial decision making. Again, Xerox made use of this aspect by supplying intranet employee surveys and tracking employee views on the company and HR. The information gathered allowed HR and managers to address areas that received lower scores on the survey. These efforts by the company and the HR department have had an effect on employee retention at Xerox. As stated earlier, reducing turnover of qualified and skilled employees is an ongoing effort of Human Resource Management. Xerox has made retaining especially high-potential employees a priority. Organizations have found that keeping good employees can be a challenge. However, in an effort to keep skilled and or high performing employees engaged and embracing the organizational culture and HR values of an organization, some employers will offer incentives. Employers, such as Xerox, will invest in employee training and development. Although this can be a double edge sword by potentially making an employee more marketable for other organizations, employers have found that when they invest in employees through job training and or monetary compensation, employee job satisfaction increases and employees are more likely to stay. In addition, employees who are engaged in an organization are more likely to be top performers and miss fewer work days. In summation, both technology and employee retention are key in HR development because they both lend to the culture of an organization. 1. Technology by improving the administrative efficiency of HR, and the responsiveness of HR to employees and managers. 2. Employee retention by maintaining employees who through their experience and loyalty to the organization, becomes a core competency and perpetuates the values and cultures to newer employees.

Hrs Contribution To Broad Organisational Objectives Commerce Essay

In Today ‘s fast paced planetary concern economic system, Organisations today have major duties to map, facilitate, array and promote corporate societal duty ( CSR ) . Administrations like this demand rethinking in their concern ends, aims and motivations, concentrating chiefly on merely doing net income to the corporate citizenship. Human rights, labor patterns, health care to environment, all these have bit by bit been impacted by the CSR which has easy began to be seen in the communities worldwide. State and worldwide, HR plays a really critical function such as taking and educating their houses with respects to the importance of CSR while at the same time strategically implementing HR direction patterns which so supports the Company on the whole and the CSR ends. The purpose of the study is to foreground and emphasize on the impact of the HR direction within The Humphrey Group. The CSR has developed such corporate policies which cover a scope of issues, including the CSR, but despite this no 1 makes certain they are adhered to, appraisal of staff consciousness and measuring their impact. This maybe the board ‘s present mission, aims and moralss do non reflect the values of staff ‘s chance of clients. This is HR ‘s best placed to use staff in such issues. These values have an consequence in the staffing issues such as enlisting, preparation assessments and other procedures such procurance. HR plays a critical function in guaranting that all this happens. Developing the procedure where concern aims are assessed and values are realigned to fit staff ‘s outlooks. One of the ways that HR section can assist lend to The Humphrey Group ‘s broader aim of CSR is that they can measure all the staffs ‘ public presentation and carefully see how much bonus an employee should acquire depending on the public presentation. Besides this has to be known to the full employee working within the administration, so that they know how much they will acquire depending on their patterned advance. This will be just to all the members of staff within the administration and will diminish any unfairness and fillip dirts. In the undermentioned article â€Å" Yes directors should be paid like administrative officials Frey Bruno.S, Osterloh, Margit states that corporate dirts, reflected in inordinate direction compensation and deceitful histories, cause great harm. Agency theory ‘s insisting to associate the compensation of directors and managers every bit closely as possible to steadfast public presentation is a major ground for these dirts. They can non be overcome by bettering variable wage for public presentation as selfish extrinsic motive is reinforced. Based on the common pool attack to the house, establishments are proposed, functioning to raise per se motivated corporate virtuousness. More importance is to be attributed to fixed wage and beef uping the legitimacy of governments by procedural equity, relational contracts, and organisational citizenship behavior. † The findings of this article support that employees should be paid reasonably and besides appraisals should be conducted for this practise to take topographic point. This will therefore stop populace examination. Excessive direction and the bureau theory both become a ground for these dirts. In some scenarios the board of The Humphrey Group may perchance hold integrated policies that cover a scope of issues including corporate societal duty, but no-one barely sticks to it to look into the staff consciousness, or analyze their impact. The ground for this may be that the board of The Humphrey Group ‘s current aim and values do n't reflect the values of staff. Human Resource section is placed to guarantee that they let all staff know of these issues. Human Resource section acts an of import function to guarantee that The Humphrey Group aims are assessed and values re-aligned to fit them with staff outlooks. Some of the ways that this can be done is to reexamine The Humphrey Group policy and processs to guarantee values are consistent and besides another manner that this can be done is to confer with and affect staff more in the running of the concern. â€Å" Turban, Daniel B and Greening, Daniel W province in their article corporate societal public presentation and administration attraction to prospective employees provinces that Pulling on propositions from societal individuality theory and signalling theory, we hypothesized that houses ‘ corporate societal public presentation ( CSP ) is related positively to their reputes and to their attraction as employers. Result indicate that independent evaluations of CSP are related to houses ‘ reputes and attraction as employers, proposing that a house ‘s CSP may supply a competitory advantage in pulling appliers. Such consequences add to the turning literature proposing that CSP may supply houses with competitory advantages. † The hypothesis survey of the corporate societal public presentation ( CSP ) demonstrates that occupation seeking population has increased as it yields in enticing human resources depending on the grade of occupation picks possessed by an person. The CSP is associated to employer magnetic attraction for persons seeking occupation with elevated degrees of employment picks but non allied for the public with low degrees meaning plus point to certain companies with surging degrees of CSP to pull the most qualified employees. As stated in Richard W. Beatty, Jeffrey R. Ewing and Charles G.Tharp article of HR function in corporate administration: present and position. This article states that â€Å" We have explored this issue from the position of the HR map through a study of the senior HR professionals who attended the Human Resources Forum. The study was augmented with focal point groups. Our intent was to understand current patterns, attitudes, and behaviors with regard to legal criterions and professional and ethical codifications. We besides explored the functions of the CEO, HR leading, and the HR map in minimising ethical breaches that have diminished investor and public trust. We hope to cast visible radiation on the duties, actions, and hazards of the HR map and its leading now and in the hereafter. † In decision this study concludes that has thrown visible radiation on how the HR section maps and grips Humphrey Group. It holds up the company by it being its anchor which in return has a heavy impact on the correct and procedural operation of Humphrey group. In add-on, the HR plays a critical function in keeping healthy staff client relationship along with instilling a well defined bond of public trust. The HR Department besides holds a steadfast aim of integrating societal duties and realining direction ends and compensation moralss of the company.

Magazines Analysis Assignment Example | Topics and Well Written Essays - 500 words

Magazines Analysis - Assignment Example The purpose here is to present the merits of one brand of old car. Finally Example (C) is called â€Å"Steer Clear of Consolidation Potholes† and is aimed at computer professionals. The purpose here is to give advice on approaching a typical workplace problem involving computer systems. Denotation is used in all three in relation to the main topic, for example, text (A) uses very simple and literal terms your child, and alternating male and female pronoun his and her. Parents are denoted from the point of view of the child : â€Å"†¦ being taken to bed by Mommy or Daddy at the same time every night can be the sequence of events†¦.†. Simple and repetitive commands are given such as speak quietly to your child †¦.then leave the room†¦then repeat the process†¦ continue in this fashion†¦let him cry and then leave†¦ use the same technique. This excessive ritualization is indicated both in the title of the article, and its repetitive structure. There is a clear bias towards this repetitive, organized parenting style, as opposed to, for example, a more free and easy response to the child’s sleeping habits. Example (B) uses less literal denotation, and prefers descriptions which have a masculine connotation for example: He saw shades of muscle car or very graphic metaphors such as Anthony polished a turd into something that redirects attention from standard hot rods†¦ This phrase is quite humorous, because it is a mixed metaphor, with two non-matching elements: polish and turd. The negative connotations of turd reflect the bias which this article has against ordinary cars which are not yet polished into hotrods by the typical readers. Example (C) displays the most complex use of language, and especially so when referring to technical matters. The statement a deployment strategy will help eliminate the number of gotchas is a reference to sport where a gotcha is a situation where a player is caught out. Another metaphor refers to

Hate CrimeAgainst Asian Americans Essay Example | Topics and Well Written Essays - 1750 words

Hate CrimeAgainst Asian Americans - Essay Example In the film, both Chin's and Ebens' families believed they were the victims of this hate crime, with Ebens' ascribing his mistakes to the crushing recession of the automotive industry, and Chin's family focusing on the American government's unfair justice system and considering this to be a pan-ethnic Asian American issue. The 1987 Academy Award-nominated documentary of Christine Choy and Renee Tajima shows the episodes leading up to the slay and following the trial's shocking and unexpected verdict. Above a simple regurgitation of the case, it sets out with the query presented by the film's title to illustrate the greater sociological background of the incident. Surveillance and interviews of the conditions of the people employed in the plants and knowledge of the effects of the Japanese automobile industry on Detroit, the documentary challenges to clarify why an incident like this could be surpassed. Conceivably, the most significant touch of the film's plot is that, in spite of the upsetting lack of emotional involvement of Ebens when interviewed, the filmmakers draw connections between Vincent's and Ronald's histories. Both men moved to Detroit in optimism, hopes of finding better jobs, managed to "fit in," and however intersected in a misfortune ("Who Killed Vincent Chin"). The Tragic Death of an Asian American: It was on June 19, 1982 in Detroit when two jobless autoworkers, Ronald Ebens and Michael Nitz, clubbed Chin to death, they neither knew him nor cared who he was as a person. It did not matter that he was a Chinese American, rather than Japanese or even Japanese American. As far as they were concerned, they regarded Chin as some "species" of Asian who had robbed them of their livelihood, and they were determined to take revenge by depriving him of his life (Wei). In 1982, Detroit's automotive business was in the middle of a financial crisis, losing the rivalry for customers to Japanese automakers who were manufacturing better-quality cars for the American market. Rather than condemn the American automakers for their failure to compete successfully, people blamed the Japanese people, triggering widespread anti-Japanese feeling (Wei). In this economic rivalry, Eben and Nitz had become two of the "losers" and were set wandering in American society. On the contrary, Chin was happily employed, working as a draftsman at a local engineering firm. Furthermore, he was a young man in the town celebrating his bachelor's party, a young man with his whole life ahead of him. It can only be explained as a fit of racial disgust deepened by envy when Ebens and Nitz hunted Chin down and murdered him for their personal dilemma (Wei). The similarly sad part of this execution was how Vincent's murderers were handled by the criminal justice system. Ebens and Nitz pleaded guilty to manslaughter and were sentenced to 3 years probation, fined $3,780 and obliged to pay $780 in court expenses (Wei). In a second trial, the Justice Department convicted Ebens with the violation of Vincent's civil rights and was sentenced to 25 years in prison. Nitz was acquitted. However, due to a technicality, new trial was ordered by a federal appeals court. At this retrial, whose jury consisted almost completely of White blue-collar men, both Ebens and Nitz were

Prepare a Business case in 2250 words for a proposed project for an Essay

Prepare a Business case in 2250 words for a proposed project for an organisation of your choice - Essay Example At this, ADB envisions to create or change most war torn countries in this region into developing nations while having citizens who enjoy quality life. There are 67 members around the globe, 48 from the region while the remaining 19 are from other parts of the world. The ADB raises its funds through issuing bonds in the world’s capital markets and effectively managing its members contribution and earnings from its lending system. As such, these sources have accounted for more than two thirds of ADB’s lending power (Vision and Mission, 2). With the growing interest and attention in global warming and other environmental issues, governments around the world with the help of financial institutions have set up numerous projects that would protect and preserve the various eco systems globally. In line with ADB’s goal, it has recently shown interest in protecting and preservation of the environment and its natural inhabitants, particularly in Qinling Mountains, China (Region and Countries, 2). According to Asian Development Bank (1), Qinling Mountain is biologically rich region in which most inhabitants are threatened, endangered animals while there are endemic plant species which could only be seen in the area that also imply preventive measures in order to protect them. The Shaanxi Qingling Biodiversity conversation and demonstration focuses on preventing the area from collapsing due to natural problems posed by global warming and human intervention (Environmental Conservation Beyond Borders, 4) With its natural gift of biodiversity, Qinling Mountain and its human habitants have long traded unequally. Along with it, the land surrounding the area have also been under heavy burden due to the people living in the region. At such, the ADB’s Biodiversity Conversation and Demonstration in the Qinling Mountain would cover most of the major environmental problems as

Cheshire Neighbours Credit Union Case Study Example | Topics and Well Written Essays - 3500 words

Cheshire Neighbours Credit Union - Case Study Example The study made three important findings. Firstly, Cheshire credit union unlike other financial institutions has but members and not customers. This has become part of the company's culture. To the company the institutions exist to cater for the needs of all the members. Secondly, we find out that the activities of the credit union are affected by all the environmental factors listed on the framework. Through the credit union principles of savings and loans, the company has been able to break through local market saturation, gain market potentials, and make financial gains. In addition, its continuous emphasis of savings and loans has created awareness for consumer's existing problem. Through this, new line of products is developed and with it effective marketing strategy the products are pushed to the customers through integrated marketing. Thus, through new products customers are pushed into recognising an existing problem. Today's business environment has increasingly become more turbulent, chaotic and challenging. To survive in this environment, it is vital that a firm can do something better than its competitors ( Wonglimpiyarat 2004:1). ... Globalisation has not only altered the natu and the intensity of competition but has had to dictate and shape organisations in terms of what consumers wants, how and when they want it and what they are prepared to pay for it (Hagan 1996:1). Kanter (1995:71) on his work of "Mastering Change" argues that success in the present day business is not for those companies that re-engineer the way they do things, or for those fixing the past. According to Kanter (1995) such an action will not constitute an adequate response. This is so because success is based on an organisation's ability to create, rather than predict the future by developing those products that will literally transform the way the world thinks and view it self and the needs (Kanter 1995:71). In business, environmental analysis is an appreciation of an organisations activities vis--vis its environment (Lin& Lee 2006). Such analysis has become imperatively necessary in the light of increase competition as present, subsequent operations and strategies direction will be dependent on the result (Lin& Lee 2006). According to wikipedia, it is a process by which a business gathers information from the environment to achieve a sustainable competitive advantage. In analysing the environment, the tool kits frequently used include The PESTLE Framework SWOT Analysis Porters five forces Competitors analysis Core competence This paper uses some of the above framework to gather information about Cheshire Neighbours Credit Union. The first part of the paper provides an overview about Cheshire credit union, while part two of the paper uses the PESTLE framework and Porters five forces framework to see how

Social context of Asian business Essay Example | Topics and Well Written Essays - 2500 words

Social context of Asian business - Essay Example This essay argues that Japanese business behaviour is largely influenced by four major forces, namely, sense of belonging, loyalty, perfection, and time. Japanese businesses can be depicted as big clans or extended families. The fact that approximately 30% of the total number of employees of major companies acquired their jobs through their personal networks reveals the significance of personal connections and referrals before employment (Hein, 2013, 48). Usually a business organisation hires apprentices referred by a university teacher or another, or by a higher-ranking employee. Khalid Mehtabdin (1986 as cited in Alston, 2005, 1) observed that the person who brought a prospective recruit to the company usually becomes the permanent guide of that recruit and is thus answerable to his/her actions or performance throughout his/her career. The higher-ranking guide trains the new recruit to observe ‘appropriate behaviour’ (Alston, 2005, 1). Employees do not choose an employer due to the appeal of a compensation package or a particular position. Employees are requested to become part of the company in general and they are not employed for a particular group of duties. The initial period of employment are devoted to the process of discovering where the employee can most productively or efficiently be positioned and where s/he will be the most successful or beneficial for the company (Hein, 2013). Hence, employees become a part of a corporate ‘family’. Regular task rotations and OJTs enhance the employee’s abilities and reveal where s/he should be positioned in the corporation, though individual or personal reasons are taken into consideration to a certain extent (Goldman, 1994). In Japan, the person is encouraged to adjust to the group instead of the other way around. The previous head of the Idemitsu Petroleum Company, Ishida, explained this image of the business organisation as family (Alston,

Review Research Paper Example | Topics and Well Written Essays - 500 words

Review - Research Paper Example dality of IMRI with CT and ultrasound to identify that IMRI presents no limitations when it comes to neurological imaging, the report does not lag behind in discussing the primarily important applications of IMRI. It is claimed by the report that with advancements made in IMRI systems over time, not only the scan time is reduced resulting in minimum patient exposure but the image quality in terms of contrast and resolutions has also dramatically enhanced. Starting with the GE Double Donut system which was the first ever IMRI system introduced, a question can definitely be raised about the advantages mentioned in the report about this system like if superior access to the patient and no patient movement required during the imaging procedure happen to be the reasons enough for the level of popularity this system amassed? Not enough credible facts related to imaging time and contrast quality are mentioned in the advantages of any of the systems talked about in the report, which leaves the readers doubtful to some extent about the advantages associated with IMRI systems available currently in terms of time and quality. Though there is much detail contained in the report about the core technicalities associated with IMRI systems like low field and high field systems, one would definitely like to get more information about the pulse sequences running in these systems. Also, some questions concerning the benefits of IMRI related to breast e xaminations and how it can be preferred over mammography for breast cancer detection remain unanswered. One of the most effective improvements which can be made to this report would be going into less detail about the IMRI magnets and hardcore physics of the low field and high field IMRI systems, while relying more on introducing the benefits in terms of image quality, exposure time, and how capable a certain IMRI system is of imaging a totally disabled person who cannot cooperate with the physician in any way possible. Another

American politics questions Essay Example | Topics and Well Written Essays - 500 words

American politics questions - Essay Example Moreover, the mighty state government can ask the central government to remain close to the people in state governments and to be more concerned with the needs and aspirations of the people especially relevant to small and isolated places. On the other hand, there are a number of demerits attributed to the states having a strong political role in America. As the state government is in warm relation with the central government, it is forced to obey even the one-sided decisions of the central government. It leads to duplication of government and inefficient, over-lapping or contradictory policies in such states. The unilateral policy making and decisions of the central government may lead to inequality between the states and thereby unhealthy competition and rivalry between them. The double ruling of the central as well as state government in the constituents may pave way for corruption. The phrase tyranny of majority means a situation in democracy where the party that gets majority of votes has the sole role in formulating policies and making decisions completely snubbing the interests and role of the minority. The term also indicates that the interests of the ruling party will be prevailed and this ignores individual interests; and such a situation can be regarded as the rule of a dictator or tyrant. Even if the decision taken by the ruling party has some evil effects, it will remain in force. Suppose the majority is 51% and the minority is 49%, a huge number of 49% people will have to suffer for the tyranny of a simple majority. To overcome the deficiencies of such a government Madison proposed the establishment of a new Constitutional republic government in which the scheme of representation takes place. According to him, it can avoid the tendency of â€Å"tyranny of majorities† that occurs in pure democracy through two basic means (Bardes, Shelley, and Schmidt, 45-47). In the first place, the representative

Communication Approaches Used by Corporate Essay

Communication Approaches Used by Corporate - Essay Example It is therefore important for the organizations to provide excellent and efficient means of communication to the people working in the organization to make sure that all the work that is done is of highest quality (Fritz, Narasiman & Ree 1998). Communication has become an important part of corporate planning. Specialist communication departments and Management Information Technology professionals have been recruited by organizations over the years to streamline its communication resources and flow. These specialist have also developed approaches of Corporate communications have been developed over the last few years to provide organizations around the world as a guide as to what is the best communication approach in the given scenario. There has also been good amount of research done in this field and many new approaches were innovated and test. Although there is no absolute answer as to which approach is the best, an organization is supposed to change its communication approaches ov er the years in order to obtain the best possible results. The process of communication these days is very different to what was practiced in the past. The developments of internet and cellular communication technologies have changed the entire paradigm of communication. The top level management, as a result of this, is more aware of what is happening at the production lines than they were before. This has improved the decision making as top level management is closer to the production level activities. This is a good thing and further development in the communication strategy and channels would lead to further streamlining of an organization’s operations. (Hax & Majluf 1984) A good example of corporate communication strategy and approach can be learned from the Shell/Royal Dutch Case. In 1995, the company decided to sink its Brent Spar in the Atlantic Ocean. This resulted in protests and a campaign against the company. Many customers boycotted the company’s products, most notably in Germany, The Netherlands and The United Kingdom. As a result, the company experienced massive drop in sales and was financially hurt badly. At first Shell responded stubbornly. It stated sink Brent Spar was the best decision and the accusation by conservationists and Greenpeace were wrong. This did not improve the company’s image and neither changed the public opinion against Shell resulting in further drop down of sales. Nine months down the road, Shell was involved in another controversial environment degradation activity in Nigeria. This time Shell responded more proactively. It invited stakeholders, environment experts, interest groups and other concerned parties for a debate. The change in communication style from Shell was evident this time around. Its communication strategy was changed from â€Å"Buffering† to â€Å"Bridging†. It was more willing to talk and hear the other side. Later that year Shell published an ethical report on its focu s on Corporate Social Responsibility and followed it up with another report. Meanwhile it continued to fund public projects and keep telling the public that it is a socially responsible company. Shell also acknowledge that the problem has arisen because in the past communication was not very open. It issued â€Å"Tell Shell† cards to the protestors to put forward their ideas and guide Shell what to do. This is an example of effective communication and it eased the problems that Shell was

Video game console Essay Example for Free

Video game console Essay A video game is an electronic game that involves human interaction with a user interface to generate visual feedback on a video device. The word video in video game traditionally referred to cathode ray tube (CRT) display device, but it now implies any type of display device that can produce two or three dimensional images. The electronic systems used to play video games are known as platforms; examples of these are personal computers and video game consoles . These platforms range from large mainframe computers to small handheld devices. Specialized video games such as arcade games, while previously common, have gradually declined in use. The input device used to manipulate video games is called a game controller, and varies across platforms. For example, a controller might consist of only a button and a joystick, while another may feature a dozen buttons and one or more joysticks. Early personal computer games often needed a keyboard for game play, or more commonly, required the user to buy a separate joystick with at least one button. Many modern computer games allow or require the player to use a keyboard and a mouse simultaneously. A few of the most common game controllers are gamepads, mouse, keyboards, and joysticks. Video games typically use additional means of providing interactivity and information to the player. Audio is almost universal, using sound reproduction devices, such as speakers and headphones. Other feedback may come via haptic peripherals, such as vibration or force feedback, with vibration sometimes used to simulate force feedback. The present era is the age of modern communication technology is an integral part of youth lives in the twenty first century. The world of electronic media however is changing dramatically; the vast majority of youth have access to multiple media. Most have internet and video game access and a significant portion have cellphones and iPads. Video games have been an important part of our culture (Sherry 2001). The term Video game in the broadcast possible sense is a form of computer based entertainment. Youth play video games for fun with the goal of progressing to the next Level (stage in playing games) and eventually conquering the opponent whether that’s another player or the computer. What’s more the social aspect sharing tactics experiences and explanation helps cement what they have learned. Opportunity for gaming are everywhere and teens are playing video games frequently. Educational video games, handheld device and media production tools can allow young students to see how complex language and other symbols systems attached to the world. From the first rock arrow heads to globe spanning communication network, human have attempted to use technology in improving length and quality of life. Video games are digital entertainment media that utilize both audio and visual channels to capture the audience attention and immense the in the developers vision. In many cases, this involves putting the player in the role of the avatar that interacts with the in game cases. In essence the player is the star of an interactive movie he sees his avatars action portrayed on screen for his entertainment. It logically follows that the aesthetics for video game should attain similar standards to that of a movie, the quality of both visuals and sound should be high. According to Anderson, Buckley and Gentile 2007; Anderson and Bushman 2001: Anderson Carnagey, Flangnan, Benjamin Eubanks and Valentine 2004; Anderson Dill 2000, Experimental and longitudinal and meta-analytic data indicate that playing violent video games increase aggression hostility and aggressive thoughts. According to Hannon, 2007 Epstein, Beeches, Graf and Roemmich 2007. Games with positive content show positive effect. For Example, playing a dancing Video Game can help children lose weight Konami Dance Revolution 2007. Today, sophisticated video games require players to pay constant attention to the game rather than passively watching a movie. This has both positive and negative impact on the player. 1. 2STATEMENT OF THE PROBLEM It’s worth thinking about video game habits. The rapidly evolving nature of video game graphics, violence, and realism cautions against any definitive statement about the impact of video games on social behavior. According to an article by Sheri Rauh (2006), â€Å"Video Game Addiction No Fun† addiction was defined by Dr.Michael Brody as, â€Å"The person needs more and more of a substance or behavior to keep him going. If the person does not get more of the substance or behavior, he becomes irritable and miserable. † According to the Report of the Council on Science and Public Health on the topic of Emotional and Behavioral Effects, Including Addictive Potential, of Video Games, (2007) the committee stated that they had engaged in a thorough study of how video games were affecting lives but had insufficient evidence that playing video games for more than two hours per day could be considered an addiction. However, they did recommend that two hours of screen time, television, video games and computers was the maximum amount of time that anyone should have every day. In Samaru, due to the establishment of many game centers, many youth that nowadays find freedom too early to laze around. Sometimes some of them sneak through tightened blockages to video centers to satisfy their craving which at the long run help them in derailing them from the path of morality. It does not only constitute distraction but loss of other invaluable assets like time, money and domestic disobedience. Therefore study becomes necessary in other to know what these youth gratify from by spending so much time in game centers playing games. 1. 3RESEARCH QUESTIONS The study shall seek answers to the following questions: 1. Does regular playing of the game teachesteach you how to play the game in reality? 2. What are the pleasures derived from playing the game? 3. Why do youth prefer playing soccer play station to other games available to them? 4. Does regular playing of the game divert them away from other pressing responsibilities? 1. 4RESEARCH OBJECTIVES. The aim of the study is mainly to provide for an empirical base for understanding what gratification do youth derive from constant playing of video games. As such, the specific objectives of the study are as follows: 1. To know the pleasure youth derive from playing video games. 2. To know if playing soccer play station teaches youth how to play football in real life 3. To know the reason why they prefer play station soccer to other available game. 4. To know if the game deviate them from their responsibilities. 1. 5SIGNIFICANCE OF THE STUDY. This research work will be of significance because it will know what the youth in Samaru gratify from playing video games specifically soccer play station and what impact does playing it have on them. The research will be able to show what intension they have when packaging the content and to let us know the regulatory body controlling video game content. Finally the research work will be adding to the academic knowledge. 1. 6SCOPE Video game has been and will continue to be a highly popular form of entertainment for the last 30years. They encourage player to become part of the games, sport games like soccer, wrestling motor and bike racing etc. These games consoles have different models e. g Play Station 1, Play Station 2, Play Station 3 and the newly xBox. Therefore this study will focus on the use and gratification of video games specifically soccer play station as regards to the joy they derive craving immorality and how the usage has increase socialization among youths in Samaru. 1. 7LIMITATION The research will have much limitation which will be made know at the end of the research work. 1. 8JUSTIFICATION OF THE STUDY The study is necessary or problematic because it is important for the community and the youth at large to know the effect of video games on their ward and to know how far they can follow the laid down rules given by the gaming regulatory bodies on the type of game that their ward can be exposed to. 1. 9DEFINITION OF TERMS Video Game: The term video game generally refers to interactive entertainment programs that are projected onto television-type screens, either by coin-operated arcade games or dedicated game-playing computers called video-game consoles. Electronic Games: Electronic Games, interactive hardware or software played for entertainment, challenge, or educational purposes. Emotions: Signifies a reaction involving certain physiological changes, such as an accelerated or retarded pulse rate, the diminished or increased activities of certain glands, or a change in body temperature, which stimulate the individual, or some component part of his or her body, to further activity. Gratification: The highest stage of Satisfaction, fulfillment, indulgence, enjoyment, pleasure, delight REFERENCE Asika (2002) Research Methodology in Behavioral Science. Ikeja Logoji Longman Nig Plc. American Medical Association. (2007). Report of the Council on Science and Public Health. (CSAPH Report 12-A-07). Retrieved from www. ama-assn. org/ama1/pub/upload/mm/467/csaph12a07. doc Rauh, S. (2006). Video Game Addiction No Fun. Retrieved from http://www. webmd. com/mental-health/features/video-game-addiction-no-fun Bushman, B. Anderson, C. (2002) Violent Video Games and Hostile Expectations: Test of the General Aggression Model. Personality and Social Psychology Bulletin, 28, 1979-1986. Braun C. and Giroux, J. (1989), Arcade video Games: Proxemic, Cognitive and content Analysis, Journal of Leisure Research, 21 92. Dill, K. E. , Dill, J. C. Video game violence: a review of the empirical literature Aggressive and Violent Behaviour, 3. 407 428 Microsoft  ® Encarta  ® 2009.  © 1993-2008 Microsoft Corporation. All rights reserved. Gentile, D. A. Anderson, C. A. (2003), Violent Video Games: The newest media violence hazard. In D. A. Gentile (Ed), Media Violence and Children. Westport, CT: Praeger Publishing.

History and Influences on South East Asia

History and Influences on South East Asia CHAPTER 1 INTRODUCTION If there were only two men in the world, how would they get on? They would help one another, harm one another, flatter one another, slander one another, fight one another, make it up, they could neither live together nor do without one another Philosophical Dictionary, 1764 Increasing role of China in South Asia has attracted the attention of the policy framers as well as scholars. Its foreign policy towards Southeast Asia has varied from indifference to hostility, but Chinese interest in the region has persisted since 1949. While India occupies a vital position in the Chinese calculation, there are discernible variations in Chinese policy towards other states in the region. The behaviour of Southeast Asian states towards China has also varied. Notwithstanding the persistence of the Indian factor in their perceptions, we observe different response to Chinese behaviour and policy in these states. Chinese foreign policy is undergoing a metamorphosis never seen in the history of the Peoples Republic (PRC). The country has enjoyed a more secure place in the world than before, yet it has remained dissatisfied with its international status. Chinas quest for international legitimacy and a positive image is tested by its pursuit of security interests and the power politics logic of its own and other states. Chinese foreign policy strategy has equally stressed the need to protect its national interest in a threatening world and the struggle to remold the international environment in line with its preferences. Clearly PRC foreign policy is complicated, dynamic, and consequential. China has managed to become a rising star in the international arena, both politically and economically. The bipolar world order lasting for nearly half a century came eventually to an abrupt end in the closing months of the 1980s as a result of dramatic changes in Eastern Europe and the so-called post cold w ar era began in the final decade of this century. China has some motivations in the Southeast Asia one of these is China is in pursuit of hegemony[1] in the region, another possibility is primarily defensive an attempt to neutralize the region while China focuses on internal priorities and the third possibility is to have a cooperative structure. India is seeking an expanded role in the international Geo-political arena which includes Asia and Southeast Asia. Indias growing economy ,common energy security interests, national interest, and power projection makes India China a Peer competitor. Beijings current goal in southeast Asia is to maintain a stable environment around its periphery to assure others that China is not threat, and to encourage economic ties that contribute to Chinas economic modernization and thus regime stability. The foreign policy instruments that Beijing has employed to secure its goals are constituent throughout most of Southeast Asia, but the priorities assigned to different strategic goals vary depending on Chinas interest in different part of the region. CHAPTER II METHODOLOGY STATEMENT OF THE PROBLEM To examine the current politico-economic influences in South east Asia and recommend measures for India to significantly expand its politico-economic strategic influence in the South East Asian region with a view to counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian Region.. Justification of the Study The most significant strategic development after the Cold War, is probably the sudden growth in Chinas economic potential and consequent national power. A rapid rise in power of a major country in the past has usually led to tension in the region, conflict with the neighbours and eventually a war. To make an assessment of Chinas posture well into the future is fraught with number of uncertainties. Equally, a projection of that role in the next century would, of necessity, demand an intimate acquaintance with how the Chinese have been involved in their dealings with this part of the world in the past. Above all, how that relationship has evolved, to the present day environment. Idea shall be to restrict the paper and sketch out important events in the near past, which have shaped the present and loom larger than the hoary past on the future that is yet in the limbo. The basic intention in writing this dissertation is To examine the current politico-economic influences in South east As ia and recommend measures for India to significantly expand its politico-economic strategic influence in the South East Asian region with a view to counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian . A direct question has been addressed whether or not China restricts India from emerging as a global player. Scope Axiomatically any meaningful discussion of Chinas role in Southeast Asia would imply an understanding of its relations with the Indian subcontinent as a whole. Of the worlds great powers, China is geographically the closest to the Southeast Asian countries. It has common borders with Myanmar, Thailand, Laos, Vietnam, Caombodia. There is significant cultural similarities far reaching political and strategic repercussions over the past couple of centuries, and has propelled the worlds most populous regions into interaction in a wide variety of ways. From a simple geographical perspective, qualitative changes in the Chinas foreign policy should be expected if China grows from a medium-sized power to superpower. At its present rate of economic growth, Chinas productive capabilities and total wealth will soon outstrip those of the other Asian powers. As a weaker power, Chinas dependence on the favour of its neighbours has been comparatively high. But increased relative capabilities make i t feasible for a rising great power to exert greater control over its surroundings. If the opportunity arises to establish a dominant role in the region, China can be expected to seize it. Thus the scope of this paper has been restricted to Chinese dominance in the Southeast Asian region, which will pose vexing problems for India . An attempt has been made to analyse, how India can focus and counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian. Organisation of Dissertation. The study is proposed to be dealt in the following sequence: Modern History strat influences in South East Asia. Political Economy of South East Asia. Chinese political and economical strategy in South East Asia. Indian political and economical strategy in South East Asia. Comparative Analysis of Indian Chinese politico-economic strategies in SE Asia. Recommended response of India to expand its influence in the region. CHAPTER III MODERN HISTORY AND STRATEGIC INFLUENCES IN SOUTHEAST ASIA The post-Cold War world is seeing in some areas a resurgence of nationalism and in others a greater emphasis on regionalism. These two tendencies will overlap. In Southeast Asia national and ethnic differences were significantly blunted by European colonialism and in some cases have been further submerged in the post-colonial period of new nation states. But what is new in Southeast Asia is the development of voluntary (as distinct from externally mandated) cooperation on a sub-regional or regional level. Most recently there is the assertion of an Asian identity, shared by Southeast Asians, which is sharply distinguished from Western value systems, social norms and economic models. It is too early to say how far that will be taken or how much it will influence the political and social development of Southeast Asia. The very important differences between and indeed even within the Southeast Asian countries induces some skepticism in academic circles about the existence of Asian values [2] etc. But there is no doubt that there is a perception in the region of some essential shared values or priorities, and a rejection of what are seen as Western individualistic and libertarian values. An embryonic sense of shared interests transcending ethnic or national groups emerged in colonial times between independence movements, student movements and other groups, including notably the various Marxist-inspired or communist movements in the region. But until after the Pacific War there was little connection across the region. The colonial empires were very separate and governed on different principles. It is a common observation nowadays that Australia, on the fringe of the region, only recently and belatedly become aware of and involved with its Southeast Asian neighbors. That is true, though with some qualifications. There was peripheral contact in the north even before the Europeans colonized Australia. But in the colonial era there was no steady development of contact or interest. The shifting patterns of alliance politics in Europe affected such contacts as there were between the colonial administrations in Southeast Asia and Australia, and indeed between the Southeast A sian colonial administrations themselves. Australia was not unique, or even unusual, in having little contact with its neighbors and in having its external links directed principally along the lines laid down by the metropolitan power. What are now the independent nations of Southeast Asia also had little contact with each other during the European colonial period. Just as the lines of communication and trade ran from Melbourne and Sydney to London, so did those between the French, Dutch, and other British colonies and the respective metropolitan powers in Europe. Right up to the Pacific War there was little or no communication between, for example, what are now Indonesia, Vietnam, Malaysia, and the Philippines. The links ran from Manila to the United States, from Batavia to the Netherlands, from Hanoi to France, and so on. It was the remarkable Japanese campaign which began at the end of 1941 which precipitated or accelerated the radical changes which took place between 1945 and the end of the Vietnam war. The sheer speed and success of the Japanese successes against numerically superior defending forces in Southeast Asia made a strong impression on opinion in the erstwhile colonies. The Japanese failed to capitalize on that in the sense that after early political successes in encouraging nationalist and pro-Japanese movements the appeal to shared Asian interests lost plausibility in the face of Japanese policies and actions which were exploitative or worse. Although Japan lost the war and left wounds in the region which are still not healed, the war precipitated the end of the moribund European colonial era, and accelerated the creation of independent states largely within borders established by the colonial empires. For some years trade and other economic links remained predominantly in the old colon ial grooves but with the economic supremacy of the United States and then with Japan embarked on decades of the highest rates of economic growth the world had yet seen, those patterns diversified. In the region the United States and Japan became the two most important outside powers and that was reflected inter alia by their leading roles in the setting up of the Asian Development Bank in 1966. By that time Australia[3] too had perforce diversified its trade away from Britain which had made it clear that it would seek its future economic arrangements in Europe and the Commonwealth arrangements which had supported much of Australias traditional export industry were phased out. Australia turned to Japan and others for new markets (a trade agreement with Japan had already been made in 1957). Australias development assistance programme had from the beginning concentrated on Southeast Asia and become and increasingly important instrument for involving this country with the region, especially as significant numbers of students from the region came to our universities and other institutions under the Colombo Plan and successor programmes.The failure of the attempted coup in Indonesia, the Gestapu of 30 September 1965, and the subsequent establishment of the New Order government there opened the way to overcome the regional or sub-regional strains produced by President Sukarnos eff orts to crush the newly-constructed Malaysia, as well as other tensions created or exacerbated by the Sukarno policies. In this climate ASEAN, the Association of South East Asian Nations, was established in 1967 and set out on its long and successful course of gradually building a sense of common interest and regional association among the six (originally five) members. ASEAN recently embarked on the development of AFTA, the ASEAN Free Trade Agreement. ASEAN has become the key institution in Southeast Asia not only because of its success in developing a sense of community among its very disparate members, and in finding a road for them to closer economic cooperation. It has also become the forum for discussion with the main world powers on a wide range of matters. This has come about through an annual mechanism of post-Ministerial consultations held after ASEANs own internal consultations through which ASEAN member governments, at Foreign Minister level, meet with their counterparts. These counterparts, termed dialogue partners, currently are Australia, Canada, the European Union, Japan, the Republic of Korea, New Zealand and the United States. In 1994 discussions on regional security were further developed with the establishment of the ASEAN Regional Forum (ARF) which groups ASEAN and its dialogue partners with Russia, China, Vietnam, Laos and Papua New Guinea. Looking at the recent evolution of Southeast Asia perhaps the most sig nificant thing has been the change that has occurred since the ending of the Cold War and the collapse of communism. Until relatively recently the centrally planned economy model had much attraction for many developing countries and there was up to the beginning of the eighties quite widespread aversion to capitalism and to the liberal market model as exemplified by the Western industrialized countries. Now virtually all of Southeast Asia is committed to market economics, albeit with more governmental political control than in the Western countries. There is a virtual unanimity about the commitment to economic development based on relatively open markets, private ownership and competition. With that has come a period of unprecedented economic growth. The major economies of Southeast Asia are all growing at rates previously thought unattainable for a sustained period. There are of course some uncertainties about the future; but there are few who doubt that Southeast Asia will early i n the twenty-first century be a major centre of economic power and influence. Southeast Asia has traditionally been a site of great power competition for regional dominance, due to its strategic location as a bridge between continental and maritime East Asia. To manage this competition and to enhance their own sub regional autonomy, the member states of the Association of Southeast Asian Nations (ASEAN) engaged in a number of regional institution building initiatives during the early 1990s. This institutionalism agenda led to speculation that ASEAN could become the hub of a nascent regional security community following the 1997 Asian financial crisis, however, the prospect that ASEAN could act as an autonomous entity to mitigate Sino-U.S. geopolitical pressures seemed increasingly tenuous. Weakened by political and economic instability, intra-regional disputes and a simultaneous expansion of its membership, ASEAN has come to question its own identity. This has only further undermined ASEAN-led regional security initiatives such as the ASEAN Regional Forum (ARF ). More frequently, Southeast Asian states have favored bilateralism and have looked to external powers to realize their security interests. These changing sub regional dynamics have, in turn, prompted renewed efforts by China and the United States to cultivate influence within Southeast Asia. Chinas attempts to gain support for its new security concept and US efforts to secure additional access and infrastructure agreements along the East Asian littoral are illustrative. To some extent, Sino-U.S. geopolitical competition has been modified by strategic cooperation resulting from the war on terror. China still remains wary of U.S. attempts to engage Southeast Asia in countering global terrorism. These trends have, in turn, compelled analysts to reconceptualize the Southeast Asian security landscape in a balance of power context. It is clear continental Southeast Asian states have aligned with China and maritime Southeast Asian states have aligned with the United States. The geographi c position of China and the United States, and the evolution of their interests and military capabilities accordingly, make it unlikely that either country would seek to project power into the others respective sphere. Southeast Asian states maintain a position of equidistance between the great powers. She attributes this to the ASEAN states general distrust of great powers and their desire to maintain the delicate Sino-U.S. regional balance. CHAPTER IV POLITICAL ECONOMY OF SOUTH EAST ASIA China sleeps, when she wakes, the World will tremble Napoleon The South east Asian countries over the past four decades has transformed itself from a region with enormous economic and political problems to one blessed with relative peace and prosperity. In particular the five ASEAN economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand , grew strongly in the 1960s with an average rate of 6 percent. This buoyant economic performance continued in the 1970s with 7.3 percent as they benefited from the massive inflows of the foreign exchange earnings due to sharp increase in the world price of primary commodities, including two oil shocks which benefited some of the members the same period. In the 1980s the region slowed down to an average growth rate of 6.1 percent. Regional economies experienced recessionary conditions due to high interest rate policy of the US Federal Reserve Bank, the consequent debt crisis in the region, the recession in the ASEANs major trading and investment partners, and the fall in the world prices of the primary commodities. But there was also a positive trend of influx of export- oriented foreign direct investment from Japan and the NIEs following the strong appreciation of their currencies. The recovery from 1991 to 1996 was followed by an economic contraction in 1997-98 due to the crisis which began in Thailand in July 1997 and spread to other parts of the region. In 1999-2000, the ASEAN economies staged a dramatic recovery with Singapore and Malaysia leading, things again turned sour with the September 11 attacks and the lackluster performance of the export sector. There was again a decrease in the economic growth due to the SARS, Iraq cri sis and terrorist related attacks, slump in the electronic market and collapse of the WTO talks in Cancun. The global economy is most rapid in emerging Asia where GDP accelerated to 7.2 percent in 2003, accounting for about 50 per cent of world growth. Looking forward, growth is projected to remain high at 7.4 per cent in 2004 and 7.0 per cent in 2005. The IMF stated that while domestic demand growth has increased significantly in emerging Asia, the regional current account surpluses remain very large, with exports supported by the rebound in the information technology (IT) sector as well as depreciating exchange rates. In the ASEAN-4, Thailand has shown the strongest expansion at 6.7 per cent in 2003, and is expected to remain high at 7 per cent in 2004 and 6.7 per cent in 2005. Cyclical considerations and high levels of public debt necessitate fiscal prudence for Thai authorities. The Malaysian economy is also recovering strongly and is expected to continue with inflation and unemployment remaining at low levels. However, the main policy priorities are the implementation of the announced fiscal consolidation to achieve a balanced budget by the year 2006 and greater exchange rate flexibility accompanied with suitable macroeconomic policies. Indonesias modest growth continues to be driven by private consumption, and has been accompanied with lower inflation. The Indonesian government should continue to implement its planned fiscal consolidation. Moreover, it needs to sustain banking, legal and judicial reforms in order to provide a better investment climate conducive to higher growth. As for the Philippines, uncertainties remain high even after the May 2, 2004 presidential elections. The main concerns of the Philippine government include increasing the tax revenues, restructuring the power sector, strengthening the banking sector, and improving the business system. Following the SARS crisis, the Singapore economy recovered in 2003 with supportive macroeconomic policies. To enhance its medium-term competitiveness and growth prospects, the IMF recommends a deepening and acceleration of reforms including further divestment of government  ­linked companies Issues and Challenges for Southeast Asian/ASEAN Domestic policy issues and challenges. On the domestic front, the growth prospects for ASEAN are very much dependent on various factors including the ability of their respective governments to provide economic, political and social stability, implement economic reforms, and diversify their economies. ASEAN policy makers thus face the following challenges: Sound macroeconomic environment. Following the 1997/98 economic crisis, government budget deficits relative to GDP have broadly increased and this is of serious concern for ASEAN governments, particularly for Malaysia and the Philippines. Price instability has become a serious concern for Indonesia and the Philippines. Exchange rates in Indonesia, Laos, the Philippines and Myanmar have weakened significantly. Moreover, the rising levels of foreign debt in the Philippines and Indonesia could create additional uncertainties. In terms of the current account surplus as a proportion of GDP, the six older ASEAN members have broadly shown higher levels relative to Cambodia, Laos, Myanmar and Vietnam (CLMV countries). Thus, in order to achieve a sound macroeconomic environment, ASEAN economies need to adopt a prudent fiscal policy, low inflation rates, stable exchange rates, and manageable levels of external debt and current account balance. Stable political and business environment. The political environment in some countries has been affected by military uprisings, kidnappings, bombings and other terrorist-related activities, peoples demonstrations, and elections. A 1997 survey of Japanese firms conducted by JETRO indicated that political stability is considered as the most significant determinant of Japanese investments in ASEAN. Thus Southeast Asian governments need to find ways and means towards achieving and maintaining a politically stable environment in order to encourage domestic and foreign investments. Social Harmony. ASEAN countries need to address issues such as conflicts between racial groups (e.g. the Chinese and pribumis in Indonesia, and the Chinese and bumiputras in Malaysia), between religious groups (e.g. the Muslims and Christians in Southern Philippines) and between the poor and rich. Despite all the policies and resources spent on alleviating poverty and reducing income inequality, unemployment, poverty and income inequality continue to be the major policy concerns of ASEAN governments. In reality, it is very difficult to reduce poverty and narrow the income gap given the interplay of politics, economics and industry, and the conflicting goals of the various interest groups in the economy like businesses, religious groups, the elite, farmers, small and medium entrepreneurs, etc. Thailands income gap between the rich and the poor was the widest in the world (Bangkok Post, 2S Aug 2003). In the Philippines, Gerard Clark and Marites Sison (2003) in their study titled liDo t he well-off really care about the plight of the poor? revealed that majority of the respondents suggested that some elite people cared while others did not; and those who did care did too little or acted primarily out of self-interest. In fact, there are some people in the superior group like the elite who wish the poor to remain poor because of the benefits that can be derived from their poverty. For instance, politicians often depend on the poor at elections time for support that propels them to political office. Economic Reforms. Southeast Asian governments need to continue implementing economic reforms that include market opening, trade, investment and financial liberalization. These reforms are particularly crucial for the CLMV countries as they undergo transition from centrally planned to market  ­oriented economies and for the crisis-hit countries especially Indonesia and Thailand. In the case of Indonesia, there was a lack of seriousness on the part of the political leadership to undertake economic reforms. For example, there were delays in the removal of tariff control and the privatization of state assets and enterprises, so that the process of reforms is reverting to protectionism. Furthermore, a delay in the IMFs financial assistance added to the ineffectiveness of Indonesias recovery programme. Thailand completed its 34-month Stand-By Arrangement from the IMF that formed part of an international financial package worth US$17.2 billion from multilateral and bilateral lenders. Outs tanding obligations at end-June 2002 amounted to US$6.4 billion and repayment was finally completed on July 31,2003, some two years ahead of schedule a significant achievement on the part of the Thai government. Economic Diversion. Various factors impel ASEAN economies to continue to diversify their economies: volatile and broadly declining primary commodity prices, depletion of non-renewable primary resources such as oil and gas, and the high costs of production. Following the decline in crude oil prices in the 1980s, Brunei and Indonesia have begun to diversify their economies from oil towards non-oil products and services (finance, tourism). Because of the high costs of production (e.g. high labour costs), Singapores economy has emphasised the significant contribution of the services sector (IT, education, tourism, finance). The services sector has accounted for about 60-70 per cent of Singapores GDP. Moreover, to improve the competitiveness of Singapores manufactured products and services, several cost-cutting measures have been implemented, namely, cuts in contribution rates for mandatory saving, reduction in corporate taxes, and reduction in utility charges. Long-run policies include t raining and re-training programmes for workers and greater focus on RD activities for innovations and improvement in technology. In Singapore, there are more than 600,000 workers with secondary education or lower. As such, it is extremely important that these workers upgrade their skills and learn new tasks to be more productive and to be more employable in the future. There are also other schemes such as the job re-design programmes implemented by the Singapore Productivity and Standards Board which involves changing both job content and arrangement to encourage workers to become more productive. Other ASEAN countries can learn from Singapores experiences with regard to cost-cutting measures, training and re-training programmes, and RD activities to improve productivity and competitiveness. Multi-Ethnic States. Multi-ethnicity is a dominant feature of the region and therefore stable inter-state ties and intra-state ethnic stability are closely intertwined. The region has to work toward the stability and security of strong, secular, federal multi- ethnic states if it is to remain secure and stable in the coming years. The Challenge of Democratisaton. The other key political challenge that confronts South East Asian nations is how to build stable, democratic state structures in condition of a rising tide of expectations for better life and greater liberty. Through much of Asia, the struggle between pressures for democratization against existing authoritarian state structures or oppressive socio-political conditions is a reality. Human rights abuses are common in many of the states. In Myanmar and Indonesia there is a rising pressure for political change and expansion of political rights. Militancy, insurgency and terrorism have wracked many parts of ASEAN region in the past and continue to do so even now. Only through steady democratization, decentralization and provision of caring and efficient governance can the integrity of state structures and stability be preserved. CHAPTER V Chinese political and economical strategy in South East Asia. China perceives itself as a central power on Earth. The rest of the World is an array of greater and lesser powers which neither have unified structure nor a single head Macnall Mark[4] Chinas political and economic strategy are interlinked with the security relation that China shares with the Southeast Asia as a region. China embraced the Southeast Asian regionalism and of multilateralism with Southeast Asia is part of broader decision to jettison Chinas old confrontational policy and style. Chinese leaders officials turned this approach to South east Asia on its head replacing the assertiveness that characterized pre 1997 Chinese policy with accommodation. This concerted campaign assuaged South east Asian fears but also paved the way for South east Asian and Chinese to participate in and profit from this rapidly expanding economic ties. Chinese leaders and officials smoothly employed diplomacy in innumerable meeting with South east Asian counterparts to slowly and carefully win greater influence in south east Asia. The Chinese foreign policy community made a concerted effort to represent Chinas reemergence as a regional power. It portrayed recent trends as aligne d with the economic and security interests of its southern neighbors. China convinced the neighbors that it is not a threat. China employed the same set of instruments of Chinese national security policy at both multilateral level with ASEAN and bilateral level with individual ASEAN states albeit with differing effects in the countries concerned depending on their individual circumstances. It places contentious issues temporarily to the side, places processes before product and welcomes efforts to build EAST ASIAN community. Beijing binds the South East Asean countries with a spectrum of economic, political and cultural and security proposals. As Beijing courted its southern neighbors, it supplemented diplomacy with economic ties in terms of trade and economic investment. China opened China to overseas ethnic Chinese and invited ethnic Chinese Southeast Asians to invest in China and subsequently invited Southeast Asians. Rapid increases in the Southeast Asian- China trade led to ove rcome the financial crisis. Chinas economic success has been as impressive as its diplomatic campaign, because china and Southeast Asian countries have been competitors both FDI and for developed markets in Japan,Europe and the United States. Beijing has worked assiduously tp provide Southeast Asian economies with a stake in Chinas economic expansion thus stabilizing Chinas periphery and contributing to Chinas own economic growth. Chinas turn to multilateralism diplomacy was to compliment its intense bilateral diplomacy was timely. ASEAN grew during the 1990 and accommodated new countries and also in the due course of time it had not been able to respond to the financial crisis and also the turmoil in East Timor. Chinas help to ASEAN gave a new appearance to ASEAN. Multilateral diplomacy provided a two way street for ASEAN countries and China and provided measures to forge new bonds. ASEAN also History and Influences on South East Asia History and Influences on South East Asia CHAPTER 1 INTRODUCTION If there were only two men in the world, how would they get on? They would help one another, harm one another, flatter one another, slander one another, fight one another, make it up, they could neither live together nor do without one another Philosophical Dictionary, 1764 Increasing role of China in South Asia has attracted the attention of the policy framers as well as scholars. Its foreign policy towards Southeast Asia has varied from indifference to hostility, but Chinese interest in the region has persisted since 1949. While India occupies a vital position in the Chinese calculation, there are discernible variations in Chinese policy towards other states in the region. The behaviour of Southeast Asian states towards China has also varied. Notwithstanding the persistence of the Indian factor in their perceptions, we observe different response to Chinese behaviour and policy in these states. Chinese foreign policy is undergoing a metamorphosis never seen in the history of the Peoples Republic (PRC). The country has enjoyed a more secure place in the world than before, yet it has remained dissatisfied with its international status. Chinas quest for international legitimacy and a positive image is tested by its pursuit of security interests and the power politics logic of its own and other states. Chinese foreign policy strategy has equally stressed the need to protect its national interest in a threatening world and the struggle to remold the international environment in line with its preferences. Clearly PRC foreign policy is complicated, dynamic, and consequential. China has managed to become a rising star in the international arena, both politically and economically. The bipolar world order lasting for nearly half a century came eventually to an abrupt end in the closing months of the 1980s as a result of dramatic changes in Eastern Europe and the so-called post cold w ar era began in the final decade of this century. China has some motivations in the Southeast Asia one of these is China is in pursuit of hegemony[1] in the region, another possibility is primarily defensive an attempt to neutralize the region while China focuses on internal priorities and the third possibility is to have a cooperative structure. India is seeking an expanded role in the international Geo-political arena which includes Asia and Southeast Asia. Indias growing economy ,common energy security interests, national interest, and power projection makes India China a Peer competitor. Beijings current goal in southeast Asia is to maintain a stable environment around its periphery to assure others that China is not threat, and to encourage economic ties that contribute to Chinas economic modernization and thus regime stability. The foreign policy instruments that Beijing has employed to secure its goals are constituent throughout most of Southeast Asia, but the priorities assigned to different strategic goals vary depending on Chinas interest in different part of the region. CHAPTER II METHODOLOGY STATEMENT OF THE PROBLEM To examine the current politico-economic influences in South east Asia and recommend measures for India to significantly expand its politico-economic strategic influence in the South East Asian region with a view to counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian Region.. Justification of the Study The most significant strategic development after the Cold War, is probably the sudden growth in Chinas economic potential and consequent national power. A rapid rise in power of a major country in the past has usually led to tension in the region, conflict with the neighbours and eventually a war. To make an assessment of Chinas posture well into the future is fraught with number of uncertainties. Equally, a projection of that role in the next century would, of necessity, demand an intimate acquaintance with how the Chinese have been involved in their dealings with this part of the world in the past. Above all, how that relationship has evolved, to the present day environment. Idea shall be to restrict the paper and sketch out important events in the near past, which have shaped the present and loom larger than the hoary past on the future that is yet in the limbo. The basic intention in writing this dissertation is To examine the current politico-economic influences in South east As ia and recommend measures for India to significantly expand its politico-economic strategic influence in the South East Asian region with a view to counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian . A direct question has been addressed whether or not China restricts India from emerging as a global player. Scope Axiomatically any meaningful discussion of Chinas role in Southeast Asia would imply an understanding of its relations with the Indian subcontinent as a whole. Of the worlds great powers, China is geographically the closest to the Southeast Asian countries. It has common borders with Myanmar, Thailand, Laos, Vietnam, Caombodia. There is significant cultural similarities far reaching political and strategic repercussions over the past couple of centuries, and has propelled the worlds most populous regions into interaction in a wide variety of ways. From a simple geographical perspective, qualitative changes in the Chinas foreign policy should be expected if China grows from a medium-sized power to superpower. At its present rate of economic growth, Chinas productive capabilities and total wealth will soon outstrip those of the other Asian powers. As a weaker power, Chinas dependence on the favour of its neighbours has been comparatively high. But increased relative capabilities make i t feasible for a rising great power to exert greater control over its surroundings. If the opportunity arises to establish a dominant role in the region, China can be expected to seize it. Thus the scope of this paper has been restricted to Chinese dominance in the Southeast Asian region, which will pose vexing problems for India . An attempt has been made to analyse, how India can focus and counterbalance the overwhelming Chinese politico – economic dominance in the South East Asian. Organisation of Dissertation. The study is proposed to be dealt in the following sequence: Modern History strat influences in South East Asia. Political Economy of South East Asia. Chinese political and economical strategy in South East Asia. Indian political and economical strategy in South East Asia. Comparative Analysis of Indian Chinese politico-economic strategies in SE Asia. Recommended response of India to expand its influence in the region. CHAPTER III MODERN HISTORY AND STRATEGIC INFLUENCES IN SOUTHEAST ASIA The post-Cold War world is seeing in some areas a resurgence of nationalism and in others a greater emphasis on regionalism. These two tendencies will overlap. In Southeast Asia national and ethnic differences were significantly blunted by European colonialism and in some cases have been further submerged in the post-colonial period of new nation states. But what is new in Southeast Asia is the development of voluntary (as distinct from externally mandated) cooperation on a sub-regional or regional level. Most recently there is the assertion of an Asian identity, shared by Southeast Asians, which is sharply distinguished from Western value systems, social norms and economic models. It is too early to say how far that will be taken or how much it will influence the political and social development of Southeast Asia. The very important differences between and indeed even within the Southeast Asian countries induces some skepticism in academic circles about the existence of Asian values [2] etc. But there is no doubt that there is a perception in the region of some essential shared values or priorities, and a rejection of what are seen as Western individualistic and libertarian values. An embryonic sense of shared interests transcending ethnic or national groups emerged in colonial times between independence movements, student movements and other groups, including notably the various Marxist-inspired or communist movements in the region. But until after the Pacific War there was little connection across the region. The colonial empires were very separate and governed on different principles. It is a common observation nowadays that Australia, on the fringe of the region, only recently and belatedly become aware of and involved with its Southeast Asian neighbors. That is true, though with some qualifications. There was peripheral contact in the north even before the Europeans colonized Australia. But in the colonial era there was no steady development of contact or interest. The shifting patterns of alliance politics in Europe affected such contacts as there were between the colonial administrations in Southeast Asia and Australia, and indeed between the Southeast A sian colonial administrations themselves. Australia was not unique, or even unusual, in having little contact with its neighbors and in having its external links directed principally along the lines laid down by the metropolitan power. What are now the independent nations of Southeast Asia also had little contact with each other during the European colonial period. Just as the lines of communication and trade ran from Melbourne and Sydney to London, so did those between the French, Dutch, and other British colonies and the respective metropolitan powers in Europe. Right up to the Pacific War there was little or no communication between, for example, what are now Indonesia, Vietnam, Malaysia, and the Philippines. The links ran from Manila to the United States, from Batavia to the Netherlands, from Hanoi to France, and so on. It was the remarkable Japanese campaign which began at the end of 1941 which precipitated or accelerated the radical changes which took place between 1945 and the end of the Vietnam war. The sheer speed and success of the Japanese successes against numerically superior defending forces in Southeast Asia made a strong impression on opinion in the erstwhile colonies. The Japanese failed to capitalize on that in the sense that after early political successes in encouraging nationalist and pro-Japanese movements the appeal to shared Asian interests lost plausibility in the face of Japanese policies and actions which were exploitative or worse. Although Japan lost the war and left wounds in the region which are still not healed, the war precipitated the end of the moribund European colonial era, and accelerated the creation of independent states largely within borders established by the colonial empires. For some years trade and other economic links remained predominantly in the old colon ial grooves but with the economic supremacy of the United States and then with Japan embarked on decades of the highest rates of economic growth the world had yet seen, those patterns diversified. In the region the United States and Japan became the two most important outside powers and that was reflected inter alia by their leading roles in the setting up of the Asian Development Bank in 1966. By that time Australia[3] too had perforce diversified its trade away from Britain which had made it clear that it would seek its future economic arrangements in Europe and the Commonwealth arrangements which had supported much of Australias traditional export industry were phased out. Australia turned to Japan and others for new markets (a trade agreement with Japan had already been made in 1957). Australias development assistance programme had from the beginning concentrated on Southeast Asia and become and increasingly important instrument for involving this country with the region, especially as significant numbers of students from the region came to our universities and other institutions under the Colombo Plan and successor programmes.The failure of the attempted coup in Indonesia, the Gestapu of 30 September 1965, and the subsequent establishment of the New Order government there opened the way to overcome the regional or sub-regional strains produced by President Sukarnos eff orts to crush the newly-constructed Malaysia, as well as other tensions created or exacerbated by the Sukarno policies. In this climate ASEAN, the Association of South East Asian Nations, was established in 1967 and set out on its long and successful course of gradually building a sense of common interest and regional association among the six (originally five) members. ASEAN recently embarked on the development of AFTA, the ASEAN Free Trade Agreement. ASEAN has become the key institution in Southeast Asia not only because of its success in developing a sense of community among its very disparate members, and in finding a road for them to closer economic cooperation. It has also become the forum for discussion with the main world powers on a wide range of matters. This has come about through an annual mechanism of post-Ministerial consultations held after ASEANs own internal consultations through which ASEAN member governments, at Foreign Minister level, meet with their counterparts. These counterparts, termed dialogue partners, currently are Australia, Canada, the European Union, Japan, the Republic of Korea, New Zealand and the United States. In 1994 discussions on regional security were further developed with the establishment of the ASEAN Regional Forum (ARF) which groups ASEAN and its dialogue partners with Russia, China, Vietnam, Laos and Papua New Guinea. Looking at the recent evolution of Southeast Asia perhaps the most sig nificant thing has been the change that has occurred since the ending of the Cold War and the collapse of communism. Until relatively recently the centrally planned economy model had much attraction for many developing countries and there was up to the beginning of the eighties quite widespread aversion to capitalism and to the liberal market model as exemplified by the Western industrialized countries. Now virtually all of Southeast Asia is committed to market economics, albeit with more governmental political control than in the Western countries. There is a virtual unanimity about the commitment to economic development based on relatively open markets, private ownership and competition. With that has come a period of unprecedented economic growth. The major economies of Southeast Asia are all growing at rates previously thought unattainable for a sustained period. There are of course some uncertainties about the future; but there are few who doubt that Southeast Asia will early i n the twenty-first century be a major centre of economic power and influence. Southeast Asia has traditionally been a site of great power competition for regional dominance, due to its strategic location as a bridge between continental and maritime East Asia. To manage this competition and to enhance their own sub regional autonomy, the member states of the Association of Southeast Asian Nations (ASEAN) engaged in a number of regional institution building initiatives during the early 1990s. This institutionalism agenda led to speculation that ASEAN could become the hub of a nascent regional security community following the 1997 Asian financial crisis, however, the prospect that ASEAN could act as an autonomous entity to mitigate Sino-U.S. geopolitical pressures seemed increasingly tenuous. Weakened by political and economic instability, intra-regional disputes and a simultaneous expansion of its membership, ASEAN has come to question its own identity. This has only further undermined ASEAN-led regional security initiatives such as the ASEAN Regional Forum (ARF ). More frequently, Southeast Asian states have favored bilateralism and have looked to external powers to realize their security interests. These changing sub regional dynamics have, in turn, prompted renewed efforts by China and the United States to cultivate influence within Southeast Asia. Chinas attempts to gain support for its new security concept and US efforts to secure additional access and infrastructure agreements along the East Asian littoral are illustrative. To some extent, Sino-U.S. geopolitical competition has been modified by strategic cooperation resulting from the war on terror. China still remains wary of U.S. attempts to engage Southeast Asia in countering global terrorism. These trends have, in turn, compelled analysts to reconceptualize the Southeast Asian security landscape in a balance of power context. It is clear continental Southeast Asian states have aligned with China and maritime Southeast Asian states have aligned with the United States. The geographi c position of China and the United States, and the evolution of their interests and military capabilities accordingly, make it unlikely that either country would seek to project power into the others respective sphere. Southeast Asian states maintain a position of equidistance between the great powers. She attributes this to the ASEAN states general distrust of great powers and their desire to maintain the delicate Sino-U.S. regional balance. CHAPTER IV POLITICAL ECONOMY OF SOUTH EAST ASIA China sleeps, when she wakes, the World will tremble Napoleon The South east Asian countries over the past four decades has transformed itself from a region with enormous economic and political problems to one blessed with relative peace and prosperity. In particular the five ASEAN economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand , grew strongly in the 1960s with an average rate of 6 percent. This buoyant economic performance continued in the 1970s with 7.3 percent as they benefited from the massive inflows of the foreign exchange earnings due to sharp increase in the world price of primary commodities, including two oil shocks which benefited some of the members the same period. In the 1980s the region slowed down to an average growth rate of 6.1 percent. Regional economies experienced recessionary conditions due to high interest rate policy of the US Federal Reserve Bank, the consequent debt crisis in the region, the recession in the ASEANs major trading and investment partners, and the fall in the world prices of the primary commodities. But there was also a positive trend of influx of export- oriented foreign direct investment from Japan and the NIEs following the strong appreciation of their currencies. The recovery from 1991 to 1996 was followed by an economic contraction in 1997-98 due to the crisis which began in Thailand in July 1997 and spread to other parts of the region. In 1999-2000, the ASEAN economies staged a dramatic recovery with Singapore and Malaysia leading, things again turned sour with the September 11 attacks and the lackluster performance of the export sector. There was again a decrease in the economic growth due to the SARS, Iraq cri sis and terrorist related attacks, slump in the electronic market and collapse of the WTO talks in Cancun. The global economy is most rapid in emerging Asia where GDP accelerated to 7.2 percent in 2003, accounting for about 50 per cent of world growth. Looking forward, growth is projected to remain high at 7.4 per cent in 2004 and 7.0 per cent in 2005. The IMF stated that while domestic demand growth has increased significantly in emerging Asia, the regional current account surpluses remain very large, with exports supported by the rebound in the information technology (IT) sector as well as depreciating exchange rates. In the ASEAN-4, Thailand has shown the strongest expansion at 6.7 per cent in 2003, and is expected to remain high at 7 per cent in 2004 and 6.7 per cent in 2005. Cyclical considerations and high levels of public debt necessitate fiscal prudence for Thai authorities. The Malaysian economy is also recovering strongly and is expected to continue with inflation and unemployment remaining at low levels. However, the main policy priorities are the implementation of the announced fiscal consolidation to achieve a balanced budget by the year 2006 and greater exchange rate flexibility accompanied with suitable macroeconomic policies. Indonesias modest growth continues to be driven by private consumption, and has been accompanied with lower inflation. The Indonesian government should continue to implement its planned fiscal consolidation. Moreover, it needs to sustain banking, legal and judicial reforms in order to provide a better investment climate conducive to higher growth. As for the Philippines, uncertainties remain high even after the May 2, 2004 presidential elections. The main concerns of the Philippine government include increasing the tax revenues, restructuring the power sector, strengthening the banking sector, and improving the business system. Following the SARS crisis, the Singapore economy recovered in 2003 with supportive macroeconomic policies. To enhance its medium-term competitiveness and growth prospects, the IMF recommends a deepening and acceleration of reforms including further divestment of government  ­linked companies Issues and Challenges for Southeast Asian/ASEAN Domestic policy issues and challenges. On the domestic front, the growth prospects for ASEAN are very much dependent on various factors including the ability of their respective governments to provide economic, political and social stability, implement economic reforms, and diversify their economies. ASEAN policy makers thus face the following challenges: Sound macroeconomic environment. Following the 1997/98 economic crisis, government budget deficits relative to GDP have broadly increased and this is of serious concern for ASEAN governments, particularly for Malaysia and the Philippines. Price instability has become a serious concern for Indonesia and the Philippines. Exchange rates in Indonesia, Laos, the Philippines and Myanmar have weakened significantly. Moreover, the rising levels of foreign debt in the Philippines and Indonesia could create additional uncertainties. In terms of the current account surplus as a proportion of GDP, the six older ASEAN members have broadly shown higher levels relative to Cambodia, Laos, Myanmar and Vietnam (CLMV countries). Thus, in order to achieve a sound macroeconomic environment, ASEAN economies need to adopt a prudent fiscal policy, low inflation rates, stable exchange rates, and manageable levels of external debt and current account balance. Stable political and business environment. The political environment in some countries has been affected by military uprisings, kidnappings, bombings and other terrorist-related activities, peoples demonstrations, and elections. A 1997 survey of Japanese firms conducted by JETRO indicated that political stability is considered as the most significant determinant of Japanese investments in ASEAN. Thus Southeast Asian governments need to find ways and means towards achieving and maintaining a politically stable environment in order to encourage domestic and foreign investments. Social Harmony. ASEAN countries need to address issues such as conflicts between racial groups (e.g. the Chinese and pribumis in Indonesia, and the Chinese and bumiputras in Malaysia), between religious groups (e.g. the Muslims and Christians in Southern Philippines) and between the poor and rich. Despite all the policies and resources spent on alleviating poverty and reducing income inequality, unemployment, poverty and income inequality continue to be the major policy concerns of ASEAN governments. In reality, it is very difficult to reduce poverty and narrow the income gap given the interplay of politics, economics and industry, and the conflicting goals of the various interest groups in the economy like businesses, religious groups, the elite, farmers, small and medium entrepreneurs, etc. Thailands income gap between the rich and the poor was the widest in the world (Bangkok Post, 2S Aug 2003). In the Philippines, Gerard Clark and Marites Sison (2003) in their study titled liDo t he well-off really care about the plight of the poor? revealed that majority of the respondents suggested that some elite people cared while others did not; and those who did care did too little or acted primarily out of self-interest. In fact, there are some people in the superior group like the elite who wish the poor to remain poor because of the benefits that can be derived from their poverty. For instance, politicians often depend on the poor at elections time for support that propels them to political office. Economic Reforms. Southeast Asian governments need to continue implementing economic reforms that include market opening, trade, investment and financial liberalization. These reforms are particularly crucial for the CLMV countries as they undergo transition from centrally planned to market  ­oriented economies and for the crisis-hit countries especially Indonesia and Thailand. In the case of Indonesia, there was a lack of seriousness on the part of the political leadership to undertake economic reforms. For example, there were delays in the removal of tariff control and the privatization of state assets and enterprises, so that the process of reforms is reverting to protectionism. Furthermore, a delay in the IMFs financial assistance added to the ineffectiveness of Indonesias recovery programme. Thailand completed its 34-month Stand-By Arrangement from the IMF that formed part of an international financial package worth US$17.2 billion from multilateral and bilateral lenders. Outs tanding obligations at end-June 2002 amounted to US$6.4 billion and repayment was finally completed on July 31,2003, some two years ahead of schedule a significant achievement on the part of the Thai government. Economic Diversion. Various factors impel ASEAN economies to continue to diversify their economies: volatile and broadly declining primary commodity prices, depletion of non-renewable primary resources such as oil and gas, and the high costs of production. Following the decline in crude oil prices in the 1980s, Brunei and Indonesia have begun to diversify their economies from oil towards non-oil products and services (finance, tourism). Because of the high costs of production (e.g. high labour costs), Singapores economy has emphasised the significant contribution of the services sector (IT, education, tourism, finance). The services sector has accounted for about 60-70 per cent of Singapores GDP. Moreover, to improve the competitiveness of Singapores manufactured products and services, several cost-cutting measures have been implemented, namely, cuts in contribution rates for mandatory saving, reduction in corporate taxes, and reduction in utility charges. Long-run policies include t raining and re-training programmes for workers and greater focus on RD activities for innovations and improvement in technology. In Singapore, there are more than 600,000 workers with secondary education or lower. As such, it is extremely important that these workers upgrade their skills and learn new tasks to be more productive and to be more employable in the future. There are also other schemes such as the job re-design programmes implemented by the Singapore Productivity and Standards Board which involves changing both job content and arrangement to encourage workers to become more productive. Other ASEAN countries can learn from Singapores experiences with regard to cost-cutting measures, training and re-training programmes, and RD activities to improve productivity and competitiveness. Multi-Ethnic States. Multi-ethnicity is a dominant feature of the region and therefore stable inter-state ties and intra-state ethnic stability are closely intertwined. The region has to work toward the stability and security of strong, secular, federal multi- ethnic states if it is to remain secure and stable in the coming years. The Challenge of Democratisaton. The other key political challenge that confronts South East Asian nations is how to build stable, democratic state structures in condition of a rising tide of expectations for better life and greater liberty. Through much of Asia, the struggle between pressures for democratization against existing authoritarian state structures or oppressive socio-political conditions is a reality. Human rights abuses are common in many of the states. In Myanmar and Indonesia there is a rising pressure for political change and expansion of political rights. Militancy, insurgency and terrorism have wracked many parts of ASEAN region in the past and continue to do so even now. Only through steady democratization, decentralization and provision of caring and efficient governance can the integrity of state structures and stability be preserved. CHAPTER V Chinese political and economical strategy in South East Asia. China perceives itself as a central power on Earth. The rest of the World is an array of greater and lesser powers which neither have unified structure nor a single head Macnall Mark[4] Chinas political and economic strategy are interlinked with the security relation that China shares with the Southeast Asia as a region. China embraced the Southeast Asian regionalism and of multilateralism with Southeast Asia is part of broader decision to jettison Chinas old confrontational policy and style. Chinese leaders officials turned this approach to South east Asia on its head replacing the assertiveness that characterized pre 1997 Chinese policy with accommodation. This concerted campaign assuaged South east Asian fears but also paved the way for South east Asian and Chinese to participate in and profit from this rapidly expanding economic ties. Chinese leaders and officials smoothly employed diplomacy in innumerable meeting with South east Asian counterparts to slowly and carefully win greater influence in south east Asia. The Chinese foreign policy community made a concerted effort to represent Chinas reemergence as a regional power. It portrayed recent trends as aligne d with the economic and security interests of its southern neighbors. China convinced the neighbors that it is not a threat. China employed the same set of instruments of Chinese national security policy at both multilateral level with ASEAN and bilateral level with individual ASEAN states albeit with differing effects in the countries concerned depending on their individual circumstances. It places contentious issues temporarily to the side, places processes before product and welcomes efforts to build EAST ASIAN community. Beijing binds the South East Asean countries with a spectrum of economic, political and cultural and security proposals. As Beijing courted its southern neighbors, it supplemented diplomacy with economic ties in terms of trade and economic investment. China opened China to overseas ethnic Chinese and invited ethnic Chinese Southeast Asians to invest in China and subsequently invited Southeast Asians. Rapid increases in the Southeast Asian- China trade led to ove rcome the financial crisis. Chinas economic success has been as impressive as its diplomatic campaign, because china and Southeast Asian countries have been competitors both FDI and for developed markets in Japan,Europe and the United States. Beijing has worked assiduously tp provide Southeast Asian economies with a stake in Chinas economic expansion thus stabilizing Chinas periphery and contributing to Chinas own economic growth. Chinas turn to multilateralism diplomacy was to compliment its intense bilateral diplomacy was timely. ASEAN grew during the 1990 and accommodated new countries and also in the due course of time it had not been able to respond to the financial crisis and also the turmoil in East Timor. Chinas help to ASEAN gave a new appearance to ASEAN. Multilateral diplomacy provided a two way street for ASEAN countries and China and provided measures to forge new bonds. ASEAN also