Land reform under Estrada administration (1998–2001)

It wanted to reduce uncertainties in land market in rural places to help farmers'

efficiency and private investment to grow. ... Since President Estrada lasted only 2.5
years as president, the total beneficiaries of CARP was only 0.18 million or 10 percent.

Comprehensive Agrarian Reform Program

From Wikipedia, the free encyclopedia
Jump to navigationJump to search
The Comprehensive Agrarian Reform Program, more commonly known as CARP, is an agrarian
reform law of the Philippines whose legal basis is the Republic Act No. 6657, [1]otherwise known as
the Comprehensive Agrarian Reform Law (CARL).[2] It is the redistribution of private and public
agricultural lands to help the beneficiaries survive as small independent farmers, regardless of the
“tenurial” arrangement. Its goals are to provide landowners equality in terms of income and
opportunities, empower land owner beneficiaries to have equitable land ownership, enhance
agricultural production and productivity, provide employment to more agricultural workers, and put an
end to conflicts regarding land ownership.

Background[edit]
The agrarian reform is part of the long history of attempts of land reform in the Philippines. [3] The law
was outlined by former President Corazon C. Aquino through Presidential Proclamation 131 and
Executive Order 229 on June 22, 1987, [4] and it was enacted by the 8th Congress of the Philippines
and signed by Aquino on June 10, 1988. In 1998, which was the year that it was scheduled to be
completed, the Congress enacted Republic Act No. 8532 [5] to allocate additional funds for the
program and extending the automatic appropriation of ill-gotten wealth recovered by the Presidential
Commission on Good Governance (PCGG) for CARP until the year 2008. [6]
An amendatory law, CARPER or the Comprehensive Agrarian Reform Program Extension with
Reforms or the Republic Act. 9700 was passed. It extended the deadline of distributing agricultural
lands to the farmers for an additional five years. This law also amends other provisions and
regulations formerly stated in the CARP. It was signed into law on August 7, 2009 and was set to be
accomplished by the year 2014.[7]

Key components[edit]
This section may require cleanup to meet Wikipedia's quality standards.
The specific problem is: appears to be pasted from legal
document Please help improve this section if you can. (July 2015) (Learn
how and when to remove this template message)

The implementation of the Comprehensive Agrarian Reform Program relies heavily on

the Department of Agrarian Reform (DAR). As the lead implementing agency, the DAR has the
responsibility in carrying out the principal aspects of the program, which are Land Tenure
Improvement (LTI), Program Beneficiary Development (PBD), and the Agrarian Justice Delivery
(AJD).
The Land Tenure Improvement is highly recognized as the most integral aspect of the program.
This component seeks to secure the tenurial status of the farmers and farmworkers. The DAR
implements this component through Land Acquisition and Distribution (LAD) or Non-land Transfer
Schemes.
The Land Acquisition and Distribution involves the redistribution of private and government-
owned land to landless farmers and farm workers. Under Section 6 of RA 9700 ( Section 16 of RA
6657 as amended) regarding Land Acquisition, the DAR identifies lands that are eligible for
distribution under the CARP with accordance to the law, acquires the land by delivering a notice
containing the offer with its corresponding value to the owner should he choose to accept the
payment. Following the acquisition of lands under Section 11 of RA 9700(Section 26 of RA 6657 as
amended) the DAR distributes these to the qualified beneficiaries, who then pay for the land through
the Land Bank of the Philippines or directly to their former owners. [8]
Under the CARP, a total target of 10.3 million hectares of land was programmed to be distributed
over a span of ten years. Out of the total land, 6.5 million hectares of public disposal lands and
Integrated Social Forestry areas are to be distributed by the Department of Environment and Natural
Resources (DENR) while 3.8 million hectares of private agricultural lands are to be distributed by the
DAR. From July 1987 to June 1992, the DAR was able to distribute 1.77 million hectares benefiting .
933 million beneficiaries, while the DENR has distributed 1.88 million hectares to .760 million
farmers.[9]
Leasehold Operations is the alternative non-land transfer scheme that covers all tenanted
agricultural lands in retained areas and in yet to be acquired or distributed lands. Under this
component, the DAR mediates between the landowners and tenants so that their share tenancy
arrangement could be turned into a leasehold agreement, whereby the beneficiaries will pay a fixed
fee based on their own historical production records instead of paying a large percentage share of
their produce to the landowner.[10]
The Program Beneficiaries Development is a support service delivery component of CARP. It aims
to aid the agrarian reform beneficiaries by providing them necessary support services to make their
lands more productive, and enable them to venture in income generating livelihood projects in
accordance to Section 14 of RA 9700(Section 37 of RA 6657 as amended) . [11] Under the support
service delivery programs, the Presidential Agrarian Reform Council(PARC) ensures that agrarian
reform beneficiaries are provided with support services such as land surveys and tilting, construction
of infrastructures, marketing and production assistance, credit and training. [8]
Agrarian Justice Delivery provides agrarian legal assistance and oversees the adjudication of
cases. Under Section 19 of RA 97600 (Section 50 of RA 6657 as amended), the DAR is hereby
vested with the primary jurisdiction to determine and adjudicate agrarian reform matters and shall
have exclusive original jurisdiction over all matters involving the implementation of agrarian reform
except those falling under the exclusive jurisdiction of the Department of Agriculture (DA) and the
Department of Environment and Natural Resources (DENR).[2]
The Agrarian Legal Assistance is under the Bureau of Legal Assistance (BALA). The BALA
provides legal assistance to the beneficiaries affected by agrarian cases, particularly those whose
legal rights as ARB’s are challenged by landowners.
The Adjudication of Cases involves the adjudication of cases by the Department of Agrarian
Reform Adjudication Board (DARAB). The adjudication of cases deals with disputes pertaining to
tenancy relations; valuation of lands acquired by DAR under compulsory acquisition mode; rights
and obligations of persons, whether natural or juridical, engaged in the management cultivation and
use of all agricultural lands; ejectment and dispossession of tenants/leaseholders; review of
leasehold rentals; and other similar disputes. [10]

Development[edit]
At the end of the 20th century, the population of the Philippines increased rapidly to 75.32 million in a
country of 297,410 square kilometers, with an average family size of six, making the Philippines
known for high population density. In addition to this, with a population growth of 2.02 per year, the
Philippine population is expected to double in the span of 25 years. 60 percent of the Philippine
population is rural, and over 12 million Filipinos make a living directly from agricultural cultivation.
Around 9.5 million hectares of land across the Philippines are used to plan various crops. In terms of
landlessness, the number of landless agricultural families rose up from 5 million to 11.32 million
families. Out of these 11.32 families, 4.6 million make a living from lands they don’t own. 0.70 million
are rented, 2 million are laborers, while 1.9 million are farming as tenants. [9]

Land reform under Aquino administration (1986–1992)[edit]

During the start of President Corazon Aquino’s term in 1986, the Constitutional Commission
approved Section 21 under Article II, which states that “The State shall promote comprehensive rural
development and agrarian reform.” This led to the drafting of CARP, which took the Congress a year
to make. On June 10, 1988, Republic Act No. 6657, also known as the Comprehensive Agrarian
Reform Law (CARL), was passed to promote social justice and industrialization. Although it was still
a product of adherence to democratic principles, this law was found to have many flaws. Because of
much dissatisfaction with the agrarian reform law, proposals from peasant groups and non-
government organizations grew in order to implement an alternative program that was more
advantageous to them. However, this did not succeed.
CARP recognizes not only farmers but all landless workers as beneficiaries with the condition that
they cultivate the land. The two main departments in charge of this program are Department of
Agrarian Reform (DAR) and Department of Environment and Natural Resources (DENR). Aside from
the land distribution, it also provides the delivery of support services and security to the farmers.
Under the Aquino administration, a total of 898,420 landless tenants and farmers became recipients
of land titles and support services. Even with this, it can be considered unsuccessful because it only
accomplished 22.5 percent of land distribution in 6 years. This was due to the fact that Aquino
assigned 4 different DAR secretaries. The major setback for CARP was Aquino’s Hacienda Luisita’s
Stock Distribution Option, which says that she was the first landlord to evade CARP on a grand
scale.

Land reform under Ramos administration (1992–1998)[edit]

The policies on agrarian reform under the Ramos administration focused on accelerating the direct
land transfer and non-land transfer through adopting more rational, fair and inexpensive settlements.
It encouraged landowners to invest in rural-based industries that are connected to agriculture. It
made an amendment to Section 63 of CARL to increase the fund of this project to 100 billion.
Salaries of workers and members of DAR board were increased to motivate them for more
successful results as well.
The target land to be given to farmer beneficiaries under this Administration was 3.4 million hectares,
4.7 million or 60 percent of which was successfully distributed. It achieved more than double the
output of the Aquino administration. It focused on “less contentious landholdings and acquisition
modes,” where they chose to work with autonomous NGOs and peasant organizations. However,
controversies were unavoidable as they encountered landlords openly harassing peasants with guns
and forcing them out of the lands.

Land reform under Estrada administration (1998–2001)[edit]

This administration focused on fast tracking land acquisition and distribution. It wanted to reduce
uncertainties in land market in rural places to help farmers’ efficiency and private investment to grow.
It encouraged joint ventures, corporative, contact farming and other marketing arrangements to
protect the status of stakeholders and promotion of agri-industrialization. They also improved the
databases of the implementing agencies of DAR and DENR to fully record and update the lands
covered. Estrada highlighted that there was a need to conceptualize new approaches in doing things
to build a new social agreement where producers, government and private sectors work with a
common goal.
The program encountered some problems such as strong landowners' resistance. Tenants also
complained on the limited amount of fund allocation provided by the government for the project. It
aimed to complete 7.8 million hectares by 2004. Since President Estrada lasted only 2.5 years as
president, the total beneficiaries of CARP was only 0.18 million or 10 percent. [12]

Comprehensive Agrarian Reform Program Extension with Reforms

(CARPER)[edit]
Comprehensive Agrarian Reform Program Extension with Reforms, known also
as CARPER or CARPer, (Republic Act 9700)[13] is the amendatory law that extends again the
deadline of distributing agricultural lands to farmers for five years. It also amends other provisions
stated in CARP.
In December 2008, the budget for CARP expired and there remained 1.2 million hectares of
agricultural land waiting to be acquired and distributed to farmers. CARPER was signed into law on
August 7, 2009 by Gloria Macapagal Arroyo and was set to expire on June 30, 2014.[14] However
the program of distributing lands to farmer-beneficiaries continued even after June 2014. Section 30
of RA 9700 or CARPER law states that cases on the matter which are still pending “shall be allowed
to proceed to its finality and be executed even beyond such date.” [15]

Beneficiaries[edit]
Beneficiaries of CARPER are landless farmers, including agricultural lessees, tenants, as well as
regular, seasonal and other farmworkers. In a certain landholding, the qualified beneficiaries who are
tenants and regular farmworkers will receive 3 hectares each before distributing the remaining land
to the other qualified beneficiaries like seasonal farmworks and other farmworkers (Section 22 of
CARL). The Department of Agrarian Reform (DAR) identifies and screens potential beneficiaries
and validates their qualifications. Beneficiaries must be least 15 years old, be a resident of the
barangay where the land holding is located, and own no more than 3 hectares of agricultural land. [16]
The CARPER law has bias for organized farmers to be beneficiaries because the Congress believes
that the success rate of organized farmers is high and can make their awarded lands productive. [citation
needed]

Significant provisions[edit]

 Gender-Sensitive Agrarian Reform – Section 1 of the CARPER law states that "The State
shall recognize and enforce, consistent with existing laws, the rights of rural women to own and
control land, taking into consideration the substantive equality between men and women as
qualified beneficiaries, to receive a just share of the fruits thereof, and to be represented in
advisory or appropriate decision-making bodies. These rights shall be independent of their male
relatives and of their civil status." Rural women will have a representative in the highest policy
making body of DAR – the Presidential Agrarian Reform Council (PARC).
 Budget – Section 21 amending Section 63 for CARL state that the budget allocated for the
5-year extension is 150 Billion pesos which will be sourced from three funds: Agrarian Reform
Fund, General Appropriations Acts (GAA) and other sources of funding like privatization of
government asset, foreign donors, etc. This budget is the largest per year in the history of CARP.

 Creation of a Congressional Oversight Committee – Section 26 of the CARPER law

created a joint Congressional Oversight Committee to oversee and monitor the implementation
of the act, which will be composed of the Chairpersons of the Committee on Agrarian Reform of
both Houses of Congress, three Members of the House of Representatives, and three Members
 of the Senate of the Philippines, to be designated respectively by the Speaker of the House of
Representatives and the President of the Senate of the Philippines. The chairpersons of the
COCAR are the Chairpersons of the Committees on Agrarian Reform of the House of
Representatives and of the Senate of the Philippines. The term of the COCAR will end six
months after the expiration of the extended period of five years. The COCAR is provided with
twenty-five million pesos (P25,000,000.00) every year.

 CARPER as a Continuing Program – Section 30 of the CARPER law mandates that “any
case and/or proceeding involving the implementation of the provisions of Republic Act No. 6657,
as amended, which may remain pending on June 30, 2014 shall be allowed to proceed to its
finality and be executed even beyond such date". Section 30 of CARPER law provides a way to
legally continue the implementation of pending CARP cases after the 5-year extension by filling
the initiatory process of CARP.

 Policies in Converting Agricultural Lands – Section 73 of the CARPER law: "Any

conversion by any landowner of his/her agricultural land into any non-agricultural use with intent
to avoid the application of this Act to his/her landholdings and to dispossess his/her bonafide
tenant farmers." Failure to comply will result in an imprisonment of 6 to 12 years and/or a penalty
of 200,000 pesos to 1 million pesos. The CARPER law prohibits any conversion of irrigated and
irrigable lands and mandates the National Irrigation Administration to identify these. CARPER
law also states that non-implementation of the conversion plan will result to automatic coverage
of the subject by CARP.

Achievements[edit]
In 2003, 15 years into the program, studies funded by the United Nations Development Programme
(UNDP), AsDB, FAO, European Union (EU) and the Philippine Government, had shown that poverty
incidence among program beneficiaries declined from 47.6 to 45.2 percent, while increasing among
their non-participating counterparts from 55.1 to 56.4 percent. [17]
The Official Gazette released an update on the accomplishments in the field of agrarian reform as of
June 30, 2014.
"As of December 31, 2013, the government has acquired and distributed 6.9 million hectares of land,
equivalent to 88% of the
total land subject to CARP." Of this area, the Aquino administration has distributed a total of 751,514
hectares, or 45% of the total landholdings to be distributed to the farmer beneficiaries left under this
administration. From this, DAR has distributed 412,782 hectares and DENR has already distributed
338,732 hectares.[16]
In 2014 – 2016, Department of Agrarian Reform still needs to acquire 771,795 hectares (187,686
hectares in 2014; 198,631 hectares in 2015; and 385,478 hectares in 2016). The Department of
Environment and Nation Resources still needs to acquire 134,857 hectares — a total of 906,652
hectares.

References[edit]

1. ^ Republic Act No. 6657 (10 June 1988), An act instituting a comprehensive agrarian reform
program to promote social justice and industrialization, providing the mechanism for its
implementation, and for other purposes, retrieved 5 December 2015
2. ^ Jump up to:a b "What is CARP RA 6657 - Comprehensive Agrarian Reform
Program". dar.gov.ph. Retrieved 18 October 2015.
 3. ^ http://dirp3.pids.gov.ph/ris/wp/pidswp9113.pdf

4. ^ Presidential Proclamation 131 and Executive Order 229

5. ^ Republic Act No. 8532

6. ^ "English - Department of Agrarian Reform". dar.gov.ph. Retrieved 18 October 2015.

7. ^ "CARPER RA 9700 - Comprehensive Agrarian Reform Program Extension with

Reforms". dar.gov.ph. Archived from the original on 23 September 2015. Retrieved 18 October 2015.

8. ^ Jump up to:a b "R.A. 9700". lawphil.net. Retrieved 18 October 2015.

9. ^ Jump up to:a b Leones & Moreno 2012.

10. ^ Jump up to:a b Navarro, Conrado S., “Institutional Aspects of Policy Implementation and
Management of the Philippine Comprehensive Agrarian Reform Program” Paper presented at the
Policy Dialogue on Agrarian Reform Issues in Rural Development and Poverty Alleviation, Manila,
Philippines, May 30, 2007.

11. ^ "Technical Advisory Support Services". dar.gov.ph. Retrieved 18 October 2015.

12. ^ Ri YuE Yap. "Comprehensive Agrarian Reform in the

Philippines". comprehensiveagrarianreform.blogspot.com. Retrieved 18 October 2015.

13. ^ "Archived copy". Archived from the original on 2013-09-21. Retrieved 2013-09-20.

14. ^ "English - Department of Agrarian Reform". www.dar.gov.ph. Retrieved 2015-07-03.

15. ^ "Republic Act No. 9700 | Official Gazette of the Republic of the Philippines".
Retrieved 2015-07-03.

16. ^ Jump up to:a b "Q and A: The Comprehensive Agrarian Reform Program | Official Gazette of
the Republic of the Philippines". Retrieved 2015-07-03.

17. ^ Guardian 2003.

Land reform in the Philippines

From Wikipedia, the free encyclopedia

Jump to navigationJump to search

Land reform in the Philippines has long been a contentious issue rooted in the
Philippines's Spanish Colonial Period. Some efforts began during the American Colonial Period with
renewed efforts during the Commonwealth, following independence, during Martial Law and
especially following the People Power Revolution in 1986. The current law, the Comprehensive
Agrarian Reform Program, was passed following the revolution and recently extended until 2014
History[edit]
Much like Mexico and other Spanish colonies in the Americas, the Spanish settlement in the
Philippines revolved around the encomienda system of plantations, known as haciendas. As the 19th
Century progressed, industrialization and liberalization of trade allowed these encomiendas to
expand their cash crops, establishing a strong sugar industry in the Philippines, especially in
the Visayan island of Negros.

American period[edit]
The United States of America took possession of the Philippines following the Spanish–American
War in 1898 and after putting down the subsequent rebellion in the Philippine–American War.
The Second Philippine Commission, the Taft Commission, viewed economic development as one of
its top three goals.[1] In 1901 93% of the islands' land area was held by the government and William
Howard Taft, Governor-General of the Philippines, argued for a liberal policy so that a good portion
could be sold off to American investors.[1]Instead, the United States Congress, influenced by
agricultural interests that did not want competition from the Philippines, in the 1902 Land Act, set a
limit of 16 hectares of land to be sold or leased to American individuals and 1,024 hectares to
American corporations.[1] This and a downturn in the investment environment discouraged the
foreign-owned plantations common in British Malaya, the Dutch East Indies, and French Indochina.[1]
Further the U.S. Federal Government faced the problem of much of the private land being owned by
the Roman Catholic Church and controlled by Spanish clerics. The American government—officially
secular, hostile to continued Spanish control of much of the land of the now-American colony, and
long hostile to Catholics—negotiated a settlement with the Church handing over its land.
The 1902 Philippine Organic Act was a constitution for the Insular Government, as the U.S. civil
administration was known. This act, among other actions, disestablished the Catholic Church as the
state religion. The United States government, in an effort to resolve the status of the friars,
negotiated with the Vatican. The church agreed to sell the friars' estates and promised gradual
substitution of Filipino and other non-Spanish priests for the friars. It refused, however, to withdraw
the religious orders from the islands immediately, partly to avoid offending Spain. In 1904 the
administration bought for $7.2 million the major part of the friars' holdings, amounting to some
166,000 hectares (410,000 acres), of which one-half was in the vicinity of Manila. The land was
eventually resold to Filipinos, some of them tenants but the majority of them estate owners. [2]

Commonwealth Period[edit]
During the American Colonial Period, tenant farmers complained about the sharecropping system,
as well as by the dramatic increase in population which added economic pressure to the tenant
farmers' families.[3] As a result, an agrarian reform program was initiated by the Commonwealth.
However, success of the program was hampered by ongoing clashes between tenants and
landowners.
An example of these clashes includes one initiated by Benigno Ramos through
his Sakdalista movement,[4] which advocated tax reductions, land reforms, the breakup of the large
estates or haciendas, and the severing of American ties. The uprising, which occurred in Central
Luzon in May 1935, claimed about a hundred lives
Rice Share Tenancy Act of 1933[edit]
When the Philippine Commonwealth was established, President Manuel L. Quezon implemented the
Rice Share Tenancy Act of 1933. [5] The purpose of this act was to regulate the share-tenancy
contracts by establishing minimum standards.[5] Primarily, the Act provided for better tenant-landlord
relationship, a 50–50 sharing of the crop, regulation of interest to 10% per agricultural year, and a
safeguard against arbitrary dismissal by the landlord. [5] The major flaw of this law was that it could be
used only when the majority of municipal councils in a province petitioned for it.[5] Since landowners
usually controlled such councils, no province ever asked that the law be applied. Therefore, Quezón
ordered that the act be mandatory in all Central Luzon provinces.[5] However, contracts were good
only for one year. By simply refusing the renew their contract, landlords were able to eject tenants.
As a result, peasant organizations agitated in vain for a law that would make the contract
automatically renewable for as long as the tenants fulfilled their obligations. [5]
In 1936, this Act was amended to get rid of its loophole, but the landlords made its application
relative and not absolute. Consequently, it was never carried out in spite of its good intentions. In
fact, by 1939, thousands of peasants in Central Luzon were being threatened with wholesale
eviction.[5] By the early 1940s, thousands of tenants in Central Luzon were ejected from their
farmlands and the rural conflict was more acute than ever.[5]
Therefore, during the Commonwealth period, agrarian problems persisted. [5] This motivated the
government to incorporate a cardinal principle on social justice. Dictated by the social justice
program of the government, expropriation of landed estates and other landholdings commenced.
Likewise, the National Land Settlement Administration (NSLA) began an orderly settlement of public
agricultural lands. At the outbreak of the Second World War, major settlement areas containing more
than 65,000 hectares were already established. [5]

Roxas Administration[edit]
When the Philippines gained its independence in 1946, much of the land was held by a small group
of wealthy landowners. There was much pressure on the democratically elected government to
redistribute the land. At the same time, many of the democratically elected office holders were
landowners themselves or came from land-owning families.
In 1946, shortly after his induction to Presidency, Manuel Roxas proclaimed the Rice Share Tenancy
Act of 1933 effective throughout the country.[5] However problems of land tenure continued. In fact
these became worse in certain areas.[5] Among the remedial measures enacted was Republic Act
No. 1946 likewise known as the Tenant Act which provided for a 70–30 sharing arrangements and
regulated share-tenancy contracts.[5] It was passed to resolve the ongoing peasant unrest in Central
Luzon.[5]
As part of his Agrarian Reform agenda, President Elpidio Quirino issued on 23 October 1950
Executive Order No. 355 which replaced the National Land Settlement Administration with Land
Settlement Development Corporation (LASEDECO) which takes over the responsibilities of the
Agricultural Machinery Equipment Corporation and the Rice and Corn Production Administration. [6]

Ramon Magsaysay administration[edit]

President Ramon Magsaysay at the Presidential Study, Malacañan Palace

To amplify and stabilize the functions of the Economic Development Corps (EDCOR),
President Ramon Magsaysay worked[7]for the establishment of the National Resettlement and
Rehabilitation Administration (NARRA),[7] which took over from the EDCOR and helped in the giving
of some sixty-five thousand acres to three thousand indigent families for settlement purposes.
[7]
Again, it allocated some other twenty-five thousand to a little more than one thousand five hundred
landless families, who subsequently became farmers.[7]
As further aid to the rural people, [7] the president established the Agricultural Credit and Cooperative
Administration (ACCFA). The idea was for this entity to make available rural credits. Records show
that it did grant, in this wise, almost ten million dollars. This administration body next devoted its
attention to cooperative marketing. [7]
Along this line of help to the rural areas, President Magsaysay initiated in all earnestness the
artesian wells campaign. A group-movement known as the Liberty Wells Association was formed and
in record time managed to raise a considerable sum for the construction of as many artesian wells
as possible. The socio-economic value of the same could not be gainsaid and the people were
profuse in their gratitude.[7]
Finally, vast irrigation projects, as well as enhancement of the Ambuklao Power plant and other
similar ones, went a long way towards bringing to reality the rural improvement program advocated
by President Magsaysay.[7]
President Ramón Magsaysay enacted the following laws as part of his Agrarian Reform Program:


Republic Act No. 1160 of 1954 – Abolished the LASEDECO and established the National
Resettlement and Rehabilitation Administration (NARRA) to resettle dissidents and landless
farmers. It was particularly aimed at rebel returnees providing home lots and farmlands in
Palawan and Mindanao.

Republic Act No. 1199 (Agricultural Tenancy Act of 1954) – Governed the relationship
between landowners and tenant farmers by organizing share-tenancy and leasehold system.
The law provided the security of tenure of tenants. It also created the Court of Agrarian
Relations.

Republic Act No. 1400 (Land Reform Act of 1955) – Created the Land Tenure Administration
(LTA) which was responsible for the acquisition and distribution of large tenanted rice and corn
lands over 200 hectares for individuals and 600 hectares for corporations.

Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) –
Provided small farmers and share tenants loans with low interest rates of six to eight percent. [6]

Macapagal administration[edit]
Land Reform Code[edit]
Main article: Agricultural Land Reform Code

The Agricultural Land Reform Code (RA 3844) was a major Philippine land reform law enacted in
1963 under President Diosdado Macapagal.[8]
The code declared that it was State policy

1. To establish owner-cultivatorship and the economic family-size farm as the basis of

Philippine agriculture and, as a consequence, divert landlord capital in agriculture to
industrial development;
2. To achieve a dignified existence for the small farmers free from pernicious institutional
restraints and practices;
 3. To create a truly viable social and economic structure in agriculture conducive to greater
productivity and higher farm incomes;

4. To apply all labor laws equally and without discrimination to both industrial and agricultural
wage earners;

5. To provide a more vigorous and systematic land resettlement program and public land
distribution; and

6. To make the small farmers more independent, self-reliant and responsible citizens, and a
source of genuine strength in our democratic society.

and, in pursuance of those policies, established the following

1. An agricultural leasehold system to replace all existing share tenancy systems in agriculture;
2. A declaration of rights for agricultural labor;

3. An authority for the acquisition and equitable distribution of agricultural land;

4. An institution to finance the acquisition and distribution of agricultural land;

5. A machinery to extend credit and similar assistance to agriculture;

6. A machinery to provide marketing, management, and other technical services to agriculture;

7. A unified administration for formulating and implementing projects of land reform;

8. An expanded program of land capability survey, classification, and registration; and

9. A judicial system to decide issues arising under this Code and other related laws and
regulations.

Marcos administration[edit]
On 10 September 1971, President Ferdinand E. Marcos signed the Code of Agrarian Reform of the
Philippines into law which established the Department of Agrarian Reform, effectively replacing the
Land Authority.
In 1978, the DAR was renamed the Ministry of Agrarian Reform.
On 26 July 1987, following the People Power Revolution, the department was re-organized through
Executive Order (EO) No. 129-A.
In 1988, the Comprehensive Agrarian Reform Law created the Comprehensive Agrarian Reform
Program which is also known as CARP.

Corazon Aquino administration[edit]

President Corazon Aquino envisioned agrarian and land reform as the centerpiece of her
administration's social legislative agenda. However, her family background and social class as a
privileged daughter of a wealthy and landed clan became a lightning rod of criticisms against her
land reform agenda. On 22 January 1987, less than a month before the ratification of the 1987
Constitution, agrarian workers and farmers marched to the historic Mendiola Street near
the Malacañan Palace to demand genuine land reform from Aquino's administration. However, the
march turned violent when Marine forces fired at farmers who tried to go beyond the designated
demarcation line set by the police. As a result, 12 farmers were killed and 19 were injured in this
incident now known as the Mendiola massacre. This incident led some prominent members of the
Aquino Cabinet to resign their government posts.
In response to calls for agrarian reform, President Aquino issued Presidential Proclamation 131 and
Executive Order 229 on 22 July 1987, which outlined her land reform program, which included sugar
lands. In 1988, with the backing of Aquino, the new Congress of the Philippines passed Republic
Act No. 6657, more popularly known as the Comprehensive Agrarian Reform Law." The law paved
the way for the redistribution of agricultural lands to tenant-farmers from landowners, who were paid
in exchange by the government through just compensation but were also allowed to retain not more
than five hectares of land.[9] However, corporate landowners were also allowed under the law to
"voluntarily divest a proportion of their capital stock, equity or participation in favor of their workers or
other qualified beneficiaries", in lieu of turning over their land to the government for redistribution.
[10]
Despite the flaws in the law, the Supreme Court upheld its constitutionality in 1989, declaring that
the implementation of the comprehensive agrarian reform program (CARP) provided by the said law,
was "a revolutionary kind of expropriation." [11]
Despite the implementation of CARP, Aquino was not spared from the controversies that eventually
centered on Hacienda Luisita, a 6,453-hectare estate located in the Province of Tarlac, which she,
together with her siblings inherited from her father Jose Cojuangco (Don Pepe).[12]
Critics argued that Aquino bowed to pressure from relatives by allowing stock redistribution under
Executive Order 229. Instead of land distribution, Hacienda Luisita reorganized itself into a
corporation and distributed stock. As such, ownership of agricultural portions of the hacienda were
transferred to the corporation, which in turn, gave its shares of stocks to farmers. [12]
The arrangement remained in force until 2006, when the Department of Agrarian Reform revoked
the stock distribution scheme adopted in Hacienda Luisita, and ordered instead the redistribution of
a large portion of the property to the tenant-farmers. The Department stepped into the controversy
when in 2004, violence erupted over the retrenchment of workers in the Hacienda, eventually leaving
seven people dead.[12]

Ramos administration[edit]
President Fidel V. Ramos speeded the implementation of the Comprehensive Agrarian Reform
Program (CARP) of former President Corazon Aquino in order to meet the ten-year time frame.
However, there were constraints such as the need to firm up the database and geographic focus,
generate funding support, strengthen inter-agency cooperation, and mobilize implementation
partners, like the non-government organizations, local governments, and the business community.
[5]
In 1992, the government acquired and distributed 382 hectares of land with nearly a quarter of a
million farmer-beneficiaries. This constituted 41% of all land titles distributed by the Department of
Agrarian Reform (DAR) during the last thirty years. But by the end of 1996, the DAR had distributed
only 58.25% of the total area it was supposed to cover. From January to December 1997, the DAR
distributed 206,612 hectares. That year, since 1987, the DAR had distributed a total of 2.66 million
hectares which benefited almost 1.8 million tenant-farmers.[5]
One major problem that the Ramos administration faced was the lack of funds to support and
implement the program.[5] The Php50 million, allotted by R.A. No. 6657 to finance the CARP from
1988 to 1998, was no longer sufficient to support the program. To address this problem, Ramos
signed R.A. No. 8532 to amend the Comprehensive Agrarian Reform Law (CARL) which further
strengthened the CARP by extending the program to another ten years. [5] Ramos signed this law on
23 February 1998 – a few months before the end of Ramos' term. [5]

Arroyo administration[edit]
On 27 September 2004, President Gloria Macapagal-Arroyo, signed Executive Order No. 364, and
the Department of Agrarian Reform was renamed to Department of Land Reform. This EO also
broadened the scope of the department, making it responsible for all land reform in the country. It
also placed the Philippine Commission on Urban Poor (PCUP) under its supervision and control.
Recognition of the ownership of ancestral domain by indigenous peoples also became the
responsibility of this new department, under the National Commission on Indigenous Peoples
(NCIP).[13]
On 23 August 2005, President Gloria Macapagal Arroyo signed Executive Order No. 456 and
renamed the Department of Land Reform back to Department of Agrarian Reform, since "the
Comprehensive Agrarian Reform Law goes beyond just land reform but includes the totality of all
factors and support services designed to lift the economic status of the beneficiaries." [14]
When President Noynoy Aquino took office, there was a renewed push to compete the agrarian
reform. The Department of Agrarian Reform adopted a goal of distributed all CARP-eligible land by
the end of Pres. Aquino's term in 2016. [15] As of June 2013, 694,181 hectares remained to be
distributed, according to DAR.[15]
Hacienda Luisita, owned by the Cojuangco family, which includes the late former President Corazón
C. Aquino and her son, former President Benigno Simeon Cojuangco Aquino III, has been a notable
case of land reform.[16]

Comprehensive Agrarian Reform Program[edit]

See also: Comprehensive Agrarian Reform Program

The Comprehensive Agrarian Reform Program is the current law under which land reform is
conducted. Large land-holdings are broken up and distributed to farmers and workers on that
particular hacienda. The crops grown on such haciendas include sugar and rice. Each farmer is
giving a "certificates of land ownership award" or CLOA for their new property. [15] Under the law, a
landowner can only retain 5 hectares, regardless of the size of the hacienda. [15] Conflict can arise
between previous landowners and "beneficiaries" and between competing farmers' groups that have
conflicting claims.[15]
In December 2008, CARP expired and the following year CARPer was passed. CARPer stands for
"Comprehensive Agrarian Reform Program Extension with Reforms". CARPer expired in 2014.

References[edit]

1. ^ Jump up to:a b c d "Ronald E. Dolan, ed. Philippines: A Country Study. Washington: GPO for
the Library of Congress, 1991". Retrieved 1 July 2013.
2. ^ Seekins, Donald M. (1993), "The First Phase of United States Rule, 1898–1935", in Dolan,
Ronald E. (ed.), Philippines: A Country Study (4th ed.), Washington, D.C.: Federal Research Division,
Library of Congress, retrieved 25 December 2007

3. ^ "Philippine history American Colony and Philippine Commonwealth (1901–1941)". Windows

on Asia. MSU. Archived from the original on 10 October 2007. Retrieved 11 February 2007.

4. ^ Roces, Luna & Arcilla 1986, p. 140.

5. ^ Jump up to:a b c d e f g h i j k l m n o p q r s Manapat, Carlos, et al. Economics, Taxation, and

Agrarian Reform. Quezon City: C&E Pub., 2010.Print.

6. ^ Jump up to:a b Department of Agrarian Reform (DAR) – Organizational Chart

7. ^ Jump up to:a b c d e f g h Molina, Antonio. The Philippines: Through the centuries. Manila:
University of Sto. Tomas Cooperative, 1961. Print.
 8. ^ "Republic Act No. 3844 : The Agricultural Land Reform Code of the Philippines". 8 August
1963.

9. ^ "Section 6, Comprehensive Agrarian Reform Law". Web.archive.org. Archived from the

original on 23 August 2007. Retrieved 13 March 2010.

10. ^ "Section 31, Comprehensive Agrarian Reform Law". Web.archive.org. Archived from the
original on 23 August 2007. Retrieved 13 March 2010.

11. ^ Association of Small Landowners v. Luz, 175 SCRA 343, 386 (Supreme Court of the
Philippines 14 July 1989).

12. ^ Jump up to:a b c Russell Arador (4 May 2007). "Life once 'sweeter' at Hacienda
Luisita". Philippine Daily Inquirer. Archived from the original on 5 October 2008. Retrieved 25
March 2008.

13. ^ Executiver Order No. 364

14. ^ Executive Order No. 456

15. ^ Jump up to:a b c d e Yap, DJ (29 June 2013). "4 haciendas distributed; 270 sugar farmers
cheer". Philippine Daily Inquirer. Retrieved 29 June 2013.

16. ^ It is notable enough to have its own Wikipedia article.

Agrarian Reform History

Pre-Spanish Period

“This land is Ours God gave this land to us”

Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays
ruled by chiefs or datus. The datus comprised the nobility. Then came the maharlikas
(freemen), followed by the aliping mamamahay (serfs) and aliping saguiguilid (slaves).
However, despite the existence of different classes in the social structure, practically
everyone had access to the fruits of the soil. Money was unknown, and rice served as the
medium of exchange.

Spanish Period

“United we stand, divided we fall”

When the Spaniards came to the Philippines, the concept of encomienda (Royal Land
Grants) was introduced. This system grants that Encomienderos must defend his
encomienda from external attack, maintain peace and order within, and support the
missionaries. In turn, the encomiendero acquired the right to collect tribute from the
indios (native).

The system, however, degenerated into abuse of power by the encomienderos The
tribute soon became land rents to a few powerful landlords. And the natives who once
cultivated the lands in freedom were transformed into mere share tenants.

First Philippine Republic

“The yoke has finally broken”

When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo
declared in the Malolos Constitution his intention to confiscate large estates, especially
the so-called Friar lands.

However, as the Republic was short-lived, Aguinaldo’s plan was never implemented.

American Period

“Long live America”

Significant legislation enacted during the American Period:

 Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and
corporations may acquire: 16 has. for private individuals and 1,024 has. for corporations.
 Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive registration
of land titles under the Torrens system.

 Public Land Act of 1903 – introduced the homestead system in the Philippines.

 Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between
landowners and tenants of rice (50-50 sharing) and sugar cane lands.
The Torrens system, which the Americans instituted for the registration of lands, did not
solve the problem completely. Either they were not aware of the law or if they did, they
could not pay the survey cost and other fees required in applying for a Torrens title.

Commonwealth Period

“Government for the Filipinos”

President Manuel L. Quezon espoused the "Social Justice" program to arrest the
increasing social unrest in Central Luzon.

Significant legislation enacted during Commonwealth Period:

 1935 Constitution – "The promotion of social justice to ensure the well-being and
economic security of all people should be the concern of the State"
 Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13,
1936 – Provided for certain controls in the landlord-tenant relationships

 National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and
corn thereby help the poor tenants as well as consumers.

 Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and
only with the approval of the Tenancy Division of the Department of Justice.

 Rural Program Administration, created March 2, 1939 – Provided the purchase and lease
of haciendas and their sale and lease to the tenants.
Commonwealth Act No. 441 enacted on June 3, 1939 – Created the National Settlement
Administration with a capital stock of P20,000,000.

Japanese Occupation

“The Era of Hukbalahap”

The Second World War II started in Europe in 1939 and in the Pacific in 1941.

Hukbalahap controlled whole areas of Central Luzon; landlords who supported the
Japanese lost their lands to peasants while those who supported the Huks earned fixed
rentals in favor of the tenants.

Unfortunately, the end of war also signaled the end of gains acquired by the peasants.
Upon the arrival of the Japanese in the Philippines in 1942, peasants and workers
organizations grew strength. Many peasants took up arms and identified themselves
with the anti-Japanese group, the HUKBALAHAP (Hukbo ng Bayan Laban sa Hapon).

Philippine Republic

“The New Republic”

After the establishment of the Philippine Independence in 1946, the problems of land
tenure remained. These became worst in certain areas. Thus the Congress of the
Philippines revised the tenancy law.

President Manuel A. Roxas (1946-1948) enacted the following laws:

 Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-
tenancy contracts.
 Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary
ejectment of tenants.

Elpidio R. Quirino (1948-1953) enacted the following law:

Executive Order No. 355 issued on October 23, 1950 -- Replaced the National Land
Settlement Administration with Land Settlement Development Corporation (LASEDECO)
which takes over the responsibilities of the Agricultural Machinery Equipment
Corporation and the Rice and Corn Production Administration.

Ramon Magsaysay (1953-1957) enacted the following laws:

 Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and established the National
Resettlement and Rehabilitation Administration (NARRA) to resettle dissidents and
landless farmers. It was particularly aimed at rebel returnees providing home lots and
farmlands in Palawan and Mindanao.
 Republic Act No. 1199 (Agricultural Tenancy Act of 1954) -- governed the relationship
between landowners and tenant farmers by organizing share-tenancy and leasehold
system. The law provided the security of tenure of tenants. It also created the Court of
Agrarian Relations.

 Republic Act No. 1400 (Land Reform Act of 1955) -- Created the Land Tenure
Administration (LTA) which was responsible for the acquisition and distribution of large
tenanted rice and corn lands over 200 hectares for individuals and 600 hectares for
corporations.
  Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing
Administration) -- Provided small farmers and share tenants loans with low interest rates
of six to eight percent.

President Carlos P. Garcia (1957-1961)

Continued the program of President Ramon Magsaysay. No new legislation passed.

President Diosdado P. Macapagal (1961-1965) enacted the following law:

Republic Act No. 3844 of August 8, 1963 (Agricultural Land Reform Code) -- Abolished
share tenancy, institutionalized leasehold, set retention limit at 75 hectares, invested
rights of preemption and redemption for tenant farmers, provided for an administrative
machinery for implementation, institutionalized a judicial system of agrarian cases,
incorporated extension, marketing and supervised credit system of services of farmer
beneficiaries.

The RA was hailed as one that would emancipate Filipino farmers from the bondage of
tenancy.

President Ferdinand E. Marcos (1965-1986)

Proclamation No. 1081 on September 21, 1972 ushered the Period of the New Society.
Five days after the proclamation of Martial Law, the entire country was proclaimed a
land reform area and simultaneously the Agrarian Reform Program was decreed.

President Marcos enacted the following laws:

 Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 -- Created
the Department of Agrarian Reform and the Agrarian Reform Special Account Fund. It
strengthen the position of farmers and expanded the scope of agrarian reform.
 Presidential Decree No. 2, September 26, 1972 -- Declared the country under land
reform program. It enjoined all agencies and offices of the government to extend full
cooperation and assistance to the DAR. It also activated the Agrarian Reform
Coordinating Council.

 Presidential Decree No. 27, October 21, 1972 -- Restricted land reform scope to tenanted
rice and corn lands and set the retention limit at 7 hectares.

President Corazon C. Aquino (1986-1992)

The Constitution ratified by the Filipino people during the administration of President
Corazon C. Aquino provides under Section 21 under Article II that “The State shall
promote comprehensive rural development and agrarian reform.”

On June 10, 1988, former President Corazon C. Aquino signed into law Republic Act No.
6657 or otherwise known as the Comprehensive Agrarian Reform Law (CARL). The law
became effective on June 15, 1988.

Subsequently, four Presidential issuances were released in July 1987 after 48 nationwide
consultations before the actual law was enacted.

President Corazon C. Aquino enacted the following laws:

 Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-
beneficiaries covered by PD 27. It also determined the value remaining unvalued rice and
corn lands subject of PD 27 and provided for the manner of payment by the FBs and
mode of compensation to landowners.
 Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of
the Comprehensive Agrarian Reform Program (CARP).

 Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the
government. It provided for a special fund known as the Agrarian Reform Fund (ARF),
with an initial amount of Php50 billion to cover the estimated cost of the program from
1987-1992.

 Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and
operations of the DAR.

 Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act
which became effective June 15, 1988 and instituted a comprehensive agrarian reform
program to promote social justice and industrialization providing the mechanism for its
implementation and for other purposes. This law is still the one being implemented at
present.

 Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the
responsibility to determine land valuation and compensation for all lands covered by
CARP.

 Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of
agricultural lands, pasture lands, fishponds, agro-forestry lands and other lands of the
public domain suitable for agriculture.

President Fidel V. Ramos (1992-1998)

When President Fidel V. Ramos formally took over in 1992, his administration came face
to face with publics who have lost confidence in the agrarian reform program. His
administration committed to the vision “Fairer, faster and more meaningful
implementation of the Agrarian Reform Program.

President Fidel V. Ramos enacted the following laws:

 Republic Act No. 7881, 1995 – Amended certain provisions of RA 6657 and exempted
fishponds and prawns from the coverage of CARP.
 Republic Act No. 7905, 1995 – Strengthened the implementation of the CARP.

 Executive Order No. 363, 1997 – Limits the type of lands that may be converted by
setting conditions under which limits the type of lands that may be converted by setting
conditions under which specific categories of agricultural land are either absolutely non-
negotiable for conversion or highly restricted for conversion.

 Republic Act No. 8435, 1997 (Agriculture and Fisheries Modernization Act AFMA) –
Plugged the legal loopholes in land use conversion.

 Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an additional Php50
billion for CARP and extended its implementation for another 10 years.

President Joseph E. Estrada (1998-2000)

“ERAP PARA SA MAHIRAP’. This was the battle cry that endeared President Joseph
Estrada and made him very popular during the 1998 presidential election.

President Joseph E. Estrada initiated the enactment of the following law:

Executive Order N0. 151, September 1999 (Farmer’s Trust Fund) – Allowed the voluntary
consolidation of small farm operation into medium and large scale integrated enterprise
that can access long-term capital.

During his administration, President Estrada launched the Magkabalikat Para sa

Kaunlarang Agraryo or MAGKASAKA. The DAR forged into joint ventures with private
investors into agrarian sector to make FBs competitive.

However, the Estrada Administration was short lived. The masses who put him into
office demanded for his ouster.

President Gloria Macapacal-Arroyo (2000-2010)

The agrarian reform program under the Arroyo administration is anchored on the vision
“To make the countryside economically viable for the Filipino family by building
partnership and promoting social equity and new economic opportunities towards
lasting peace and sustainable rural development.”

Land Tenure Improvement - DAR will remain vigorous in implementing land acquisition
and distribution component of CARP. The DAR will improve land tenure system through
land distribution and leasehold.

Provision of Support Services - CARP not only involves the distribution of lands but also
included package of support services which includes: credit assistance, extension
services, irrigation facilities, roads and bridges, marketing facilities and training and
technical support programs.

Infrastrucre Projects - DAR will transform the agrarian reform communities (ARCs), an
area focused and integrated delivery of support services, into rural economic zones that
will help in the creation of job opportunities in the countryside.

KALAHI ARZone - The KALAHI Agrarian Reform (KAR) Zones were also launched. These
zones consists of one or more municipalities with concentration of ARC population to
achieve greater agro-productivity.

Agrarian Justice - To help clear the backlog of agrarian cases, DAR will hire more
paralegal officers to support undermanned adjudicatory boards and introduce quota
system to compel adjudicators to work faster on agrarian reform cases. DAR will respect
the rights of both farmers and landowners.

President Benigno Aquino III (2010-2016)

President Benigno Aquino III vowed during his 2012 State of the Nation Address that he
would complete before the end of his term the Comprehensive Agrarian Reform
Program (CARP), the centerpiece program of the administration of his mother, President
Corazon Aquino.

The younger Aquino distributed their family-owned Hacienda Luisita in Tarlac. Apart
from the said farm lots, he also promised to complete the distribution of privately-
owned lands of productive agricultural estates in the country that have escaped the
coverage of the program.
Under his administration, the Agrarian Reform Community Connectivity and Economic
Support Services (ARCCESS) project was created to contribute to the overall goal of rural
poverty reduction especially in agrarian reform areas.

Agrarian Production Credit Program (APCP) provided credit support for crop production
to newly organized and existing agrarian reform beneficiaries’ organizations (ARBOs)
and farmers’ organizations not qualified to avail themselves of loans under the regular
credit windows of banks.

The legal case monitoring system (LCMS), a web-based legal system for recording and
monitoring various kinds of agrarian cases at the provincial, regional and central offices
of the DAR to ensure faster resolution and close monitoring of agrarian-related cases,
was also launched.

Aside from these initiatives, Aquino also enacted Executive Order No. 26, Series of 2011,
to mandate the Department of Agriculture-Department of Environment and Natural
Resources-Department of Agrarian Reform Convergence Initiative to develop a National
Greening Program in cooperation with other government agencies.

President Rodrigo Roa Duterte (2016 – present)

Under his leadership, the President wants to pursue an “aggressive” land reform
program that would help alleviate the life of poor Filipino farmers by prioritizing the
provision of support services alongside land distribution.

The President directed the DAR to launch the 2nd phase of agrarian reform where
landless farmers would be awarded with undistributed lands under the Comprehensive
Agrarian Reform Program (CARP).

Duterte plans to place almost all public lands, including military reserves, under agrarian
reform.

The President also placed 400 hectares of agricultural lands in Boracay under CARP.

Under his administration the DAR created an anti-corruption task force to investigate
and handle reports on alleged anomalous activities by officials and employees of the
department.

The Department also pursues an “Oplan Zero Backlog” in the resolution of cases in
relation to agrarian justice delivery of the agrarian reform program to fast-track the
implementation of CARP.
Presidency of Joseph Estrada
From Wikipedia, the free encyclopedia

Jump to navigationJump to search

The lead section of this article may need to be rewritten. Please discuss this
issue on the article's talk page. Use the lead layout guide to ensure the section
follows Wikipedia's norms and to be inclusive of all essential details. (October
2017) (Learn how and when to remove this template message)

Presidency of Joseph Estrada

June 30, 1998 – January 20, 2001

President Joseph Estrada

 Party LAMP

Seat Malacañang Palace, Manila

← Ramos presidency • Macapagal Arroyo presidency →

The Presidency of Joseph Estrada, also known as the Estrada Administration in

the Philippines spanned for 31 months from June 30, 1998 to January 20, 2001. Estrada reached
the pinnacle of his political career when he was elected President of the Republic in the May 11,
1998 national elections. With almost 11 million Filipinos writing his name on the ballot, his margin of
victory was the biggest ever registered in Philippine electoral history.
Speaking before millions gathered at his inaugural address in Manila, the newly elected chief
executive said his presidency would serve the Filipino masses whose welfare had long been
neglected. A line from his speech, "Walang kaibigan, walang kumpare, walang kamag-anak", was a
stern warning against anyone who would attempt to undermine his administration with influence-
peddling. Determined to bring his pro-poor platform to every facet of the government's operations, he
immediately ordered the removal of all sovereign guarantees on contracts for public projects which
would require the sovereign Filipino people to assume the financial losses of private companies
doing business with the government. Records will show that until January 20, 2001, he did not sign a
single government contract with a sovereign guarantee. Committed to cleaning the bureaucracy of
undesirable elements, he ordered the immediate relief of corrupt officials in the military and police
hierarchy. He ordered a wide-ranging investigation of all government contracts entered into by the
previous administration to ensure these were above-board and directly advantageous to the
citizenry. He ordered the investigation of suspected big-time tax evaders even if some of these
individuals had contributed to his presidential campaign. His pro-poor program of government bore
fruit in less than two years, with a significant improvement in the country's peace and order situation.
This likewise elicited a proportionate rise in the approval rating of the Philippine National Police. The
Estrada administration undertook an aggressive housing program on a national basis, targeting low-
cost homes for poor, Agriculture received greater priority, while the national government likewise took
steps to bring down the cost of medicine. Foreign investments grew exponentially, benefiting greatly
from the unsullied and esteemed reputation of the best and the brightest chosen to be part of his
Cabinet, and even more from his reputation as a strongly nationalistic yet progressive president.
The Senate impeachment trial, a constitutional process initiated to determine the truth behind the
allegations of corruption hurled by the false witness, ended abruptly in mid-January 2001 when
prosecutors staged a walk-out after senators voted against the opening of a document which had no
bearing whatsoever on the cases filed before the tribunal. With the second highest official of the land
and her husband working secretly with this group and courting the military sector's support, things
came to a head on 20 January 2001 with the leave of absence filed by Joseph Estrada and his
temporary departure from Malacañang. Following the Supreme Court's decision upholding the
legality of the Macapagal-Arroyo presidency, he was arrested at his San Juan home in the afternoon
of April 25, 2001 on the strength of a warrant of arrest issued by the Sandiganbayan for the crime of
plunder filed by his political enemies.

Overview[edit]
Estrada was inaugurated on June 30, 1998 in the historical town of Malolos in Bulacan province in
paying tribute to the cradle of the First Philippine Republic. That afternoon the new president
delivered his inaugural address at the Quirino Grandstand in Luneta. He assumed office amid
the Asian Financial Crisis and with agricultural problems due to poor weather conditions, thereby
slowing the economic growth to -0.6% in 1998 from a 5.2% in 1997. [1] The economy recovered by
3.4% in 1999 and 4% in 2000. [2] In 2000 he declared an "all-out-war" against the Moro Islamic
Liberation Front and captured its headquarters and other camps.[3][4] However, allegations of
corruption spawned an impeachment trial in the Senate, and in 2001 Estrada was ousted from
power after the trial was aborted. The unmitigated corruption during his administration would cause
him to be charged and convicted for plunder.
In his Inaugural Address, Estrada said:

One hundred years after Kawit, fifty years after independence, twelve years after EDSA,
“ and seven years after the rejection of foreign bases, it is now the turn of the masses to
experience liberation. We stand in the shadow of those who fought to make us free- free
from foreign domination, free from domestic tyranny, free from superpower dictation, free
from economic backwardness.[5]
”
Major issues of presidency[edit]
Estrada's speeches[edit]

 Inaugural Address, (30 June 1998)

 First State of the Nation Address, (27 July 1998)

 Second State of the Nation Address, (26 July 1999)

 Third State of the Nation Address, (24 July 2000)

Major acts as President[edit]

Major treaties[edit]

 Second RP-US Visiting Forces Agreement

Major legislation signed[edit]

 Philippine Clean Air Act of 1999 (Republic Act No. 8749) – designed to protect and preserve
the environment and ensure the sustainable development of its natural resources.
 Incentives for Regional Headquarters of Foreign Multinationals (Republic Act No. 8756) –
The measure grants a host of incentives to multinational firms establishing their regional hubs in
the country. It also provides a tax- and duty-free operating environment for them, and multiple
entry visas to expatriates and their families, as well as a flat income tax rate of 15%.

 Retail Trade Liberalization Act (Republic Act No. 8762) – The bill dismantles 40 years of state
protectionism over the country's retail trade industry and opens the sector to big foreign players.
With the retail trade liberalization, well-known foreign players like France's Carrefour and Casino
Group as well as the U.S.' Wal-Mart and JC Penney are already in the process of negotiating
with local partners.

 New General Banking Act (Republic Act No. 8791) – The measure opens up the local
banking industry to foreign players after almost 50 years of having it exclusively reserved and
 protected for Filipino nationals. With the industry's liberalization, at least 10 foreign banks have
already established their presence in the Philippines.

 Electronic Commerce Act of 2000 (Republic Act No. 8792) – Outlaws computer hacking and
provides opportunities for new businesses emerging from the Internet-driven New Economy.

 New Securities Act (Republic Act No. 8799) – This law liberalizes the securities market by
shifting policy from merit regulation to full disclosure. With its strengthened provisions against
fraud, the measure is expected to pave the way for the full development of the Philippine
equities and securities market.

Bacteriological water analysis

From Wikipedia, the free encyclopedia

Jump to navigationJump to search

E. coli culture on a Petri dish

Bacteriological water analysis is a method of analysing water to estimate the numbers

of bacteria present and, if needed, to find out what sort of bacteria they are. It represents one aspect
of water quality. It is a microbiological analytical procedure which uses samples of water and from
these samples determines the concentration of bacteria. It is then possible to draw inferences about
the suitability of the water for use from these concentrations. This process is used, for example, to
routinely confirm that water is safe for human consumption or that bathing and recreational waters
are safe to use.
The interpretation and the action trigger levels for different waters vary depending on the use made
of the water. Whilst very stringent levels apply to drinking water, more relaxed levels apply to marine
bathing waters, where much lower volumes of water are expected to be ingested by users.
 Contents

 1Approach
 2Methodologies

o 2.1Multiple tube method

o 2.2ATP Testing

o 2.3Plate count

o 2.4Membrane filtration

o 2.5Pour plate method

 3Pathogen analysis

 4Types of nutrient media used in analysis

 5See also

 6References

Approach[edit]
The common feature of all these routine screening procedures is that the primary analysis is for
indicator organisms rather than the pathogens that might cause concern. Indicator organisms are
bacteria such as non-specific coliforms, Escherichia coli and Pseudomonas aeruginosa that are very
commonly found in the human or animal gut and which, if detected, may suggest the presence
of sewage. Indicator organisms are used because even when a person is infected with a more
pathogenic bacteria, they will still be excreting many millions times more indicator organisms than
pathogens. It is therefore reasonable to surmise that if indicator organism levels are low, then
pathogen levels will be very much lower or absent. Judgements as to suitability of water for use are
based on very extensive precedents and relate to the probability of any sample population of
bacteria being able to be infective at a reasonable statistical level of confidence.
Analysis is usually performed using culture, biochemical and sometimes optical methods. When
indicator organisms levels exceed pre-set triggers, specific analysis for pathogens may then be
undertaken and these can be quickly detected (where suspected) using specific culture methods
or molecular biology.[1]

Methodologies[edit]
The most reliable methods are direct plate count method and membrane filtration method. mEndo
Agar is used in the membrane filtration while VRBA Agar is used in the direct plate count method.
VRBA stands for violet red bile agar. A media that contains bile salts which promotes the growth of
gram negative and has inhibitory characteristic to gram positive although not complete inhibitory.
These media contain lactose which is usually fermented by lactose fermenting bacteria producing
colonies that can be identified and characterised. Lactose fermenting produce colored colonies while
non lactose fermenting produce colorless ones. Because the analysis is always based on a very
small sample taken from a very large volume of water, all methods rely on statistical principles. [2]
Multiple tube method[edit]
One of the oldest methods is called the multiple tube method. [3] In this method a measured sub-
sample (perhaps 10 ml) is diluted with 100 ml of sterile growth medium and an aliquot of 10 ml is
then decanted into each of ten tubes. The remaining 10 ml is then diluted again and the process
repeated. At the end of 5 dilutions this produces 50 tubes covering the dilution range of 1:10 through
to 1:10000.
The tubes are then incubated at a pre-set temperature for a specified time and at the end of the
process the number of tubes with growth in is counted for each dilution. Statistical tables are then
used to derive the concentration of organisms in the original sample. This method can be enhanced
by using indicator medium which changes colour when acid forming species are present and by
including a tiny inverted tube called a Durham tube in each sample tube. The Durham inverted tube
catches any gas produced. The production of gas at 37 degrees Celsius is a strong indication of the
presence of Escherichia coli.
ATP Testing[edit]
An ATP test is the process of rapidly measuring active microorganisms in water through
detection adenosine triphosphate (ATP). ATP is a molecule found only in and around living cells, and
as such it gives a direct measure of biological concentration and health. ATP is quantified by
measuring the light produced through its reaction with the naturally occurring enzyme firefly
luciferase using a luminometer. The amount of light produced is directly proportional to the amount
of biological energy present in the sample.
Second generation ATP tests are specifically designed for water, wastewater and industrial
applications where, for the most part, samples contain a variety of components that can interfere
with the ATP assay.
Plate count[edit]
The plate count method relies on bacteria growing a colony on a nutrient medium so that the colony
becomes visible to the naked eye and the number of colonies on a plate can be counted. To be
effective, the dilution of the original sample must be arranged so that on average between 30 and
300 colonies of the target bacterium are grown. Fewer than 30 colonies makes the interpretation
statistically unsound whilst greater than 300 colonies often results in overlapping colonies and
imprecision in the count. To ensure that an appropriate number of colonies will be generated several
dilutions are normally cultured. This approach is widely utilised for the evaluation of the effectiveness
of water treatment by the inactivation of representative microbial contaminants such as E.
coli following ASTM D5465.[4][5]
The laboratory procedure involves making serial dilutions of the sample (1:10, 1:100, 1:1000, etc.) in
sterile water and cultivating these on nutrient agar in a dish that is sealed and incubated. Typical
media include plate count agar for a general count or MacConkey agar to count Gram-negative
bacteria such as E. coli. Typically one set of plates is incubated at 22 °C and for 24 hours and a
second set at 37 °C for 24 hours. The composition of the nutrient usually includes reagents that
resist the growth of non-target organisms and make the target organism easily identified, often by a
colour change in the medium. Some recent methods include a fluorescent agent so that counting of
the colonies can be automated. At the end of the incubation period the colonies are counted by eye,
a procedure that takes a few moments and does not require a microscope as the colonies are
typically a few millimetres across.
Membrane filtration[edit]
Most modern laboratories use a refinement of total plate count in which serial dilutions of the sample
are vacuum filtered through purpose made membrane filters and these filters are themselves laid on
nutrient medium within sealed plates.[6] The methodology is otherwise similar to conventional total
 plate counts. Membranes have a printed millimetre grid printed on and can be reliably used to count
the number of colonies under a binocular microscope.
Pour plate method[edit]
When the analysis is looking for bacterial species that grow poorly in air, the initial analysis is done
by mixing serial dilutions of the sample in liquid nutrient agar which is then poured into bottles which
are then sealed and laid on their sides to produce a sloping agar surface. Colonies that develop in
the body of the medium can be counted by eye after incubation.
The total number of colonies is referred to as the total viable count (TVC). The unit of measurement
is cfu/ml (or colony forming units per millilitre) and relates to the original sample. Calculation of this is
a multiple of the counted number of colonies multiplied by the dilution used.

Pathogen analysis[edit]
When samples show elevated levels of indicator bacteria, further analysis is often undertaken to look
for specific pathogenic bacteria. Species commonly investigated in the temperate zone
include Salmonella typhi and Salmonella Typhimurium. Depending on the likely source of
contamination investigation may also extend to organisms such as Cryptosporidium spp. In tropical
areas analysis of Vibrio cholerae is also routinely undertaken.

Types of nutrient media used in analysis[edit]

MacConkey agar is culture medium designed to grow Gram-negative bacteria and stain them for
lactose fermentation. It contains bile salts (to inhibit most Gram-positive bacteria), crystal violet dye
(which also inhibits certain Gram-positive bacteria), neutral red dye (which stains microbes
fermenting lactose), lactose and peptone. Alfred Theodore MacConkey developed it while working
as a bacteriologist for the Royal Commission on Sewage Disposal in the United Kingdom.
Endo agar contains peptone, lactose, dipotassium phosphate, agar, sodium sulfite, basic fuchsin and
was originally developed for the isolation of Salmonella typhi, but is now commonly used in water
analysis. As in MacConkey agar, coliform organisms ferment the lactose, and the colonies become
red. Non-lactose-fermenting organisms produce clear, colourless colonies against the faint pink
background of the medium.[7]
mFC medium is used in membrane filtration and contains selective and differential agents. These
include rosolic acid to inhibit bacterial growth in general, except for faecal coliforms, bile salts inhibit
non-enteric bacteria and aniline blue indicates the ability of faecal coliforms to ferment lactose to
acid that causes a pH change in the medium. [8]
TYEA medium contains tryptone, yeast extract, common salt and L-arabinose per liter of glass
distilled water and is a non selective medium usually cultivated at two temperatures (22 and 36 °C)
to determine a general level of contamination (a.k.a. colony count).

See also[edit]

 Water portal

 Water testing

 Water quality
References[edit]
1. ^ William Bento, The University of Zambia +260972476538[self-published source]
2. ^ "Performance Verification Testing" (PDF). US EPA. 2014-08-06. Retrieved June 17, 2017.

3. ^ U.S. Environmental Protection Agency (EPA), Washington, D.C. (October 2002). "Method
1680: Fecal Coliforms in Biosolids by Multiple-Tube Fermentation Procedures." Draft. Document no.
EPA-821-R-02-026.

4. ^ Hanaor, Dorian A. H.; Sorrell, Charles C. (2014). "Sand Supported Mixed-Phase

TiO2 Photocatalysts for Water Decontamination Applications". Advanced Engineering
Materials. 16 (2): 248–254. arXiv:1404.2652. doi:10.1002/adem.201300259.

5. ^ Hanaor, D.; Michelazzi, M.; Leonelli, C.; Sorrell, C.C. (2011). "The effects of firing conditions
on the properties of electrophoretically deposited titanium dioxide films on graphite
substrates". Journal of the European Ceramic Society. 31 (15): 2877–
2885. arXiv:1303.2757. doi:10.1016/j.jeurceramsoc.2011.07.007.

6. ^ EPA (2002). "Method 1106.1: Enterococci in Water by Membrane Filtration Using

membrane-Enterococcus-Esculin Iron Agar (mE-EIA)." Document no. EPA 821-R-02-021.

7. ^ Neogen Corporation, Lansing, MI (2011). "m-Endo Agar (7724)." Product information sheet
no. PI 7724, Rev 1.

8. ^ U.S. Geological Survey. Ohio Water Microbiology Laboratory, Columbus, OH. (January
2007). "mFC agar method for fecal coliforms." Analytical Methods.

SSC13

Argumentative Essay: Negative

Effects of Globalization
November 25, 2016 Julie Petersen
Globalization isn’t a new process. It’s actually been around for thousands of years. It’s the process of
interaction between people and integration among each other. This includes integration of
companies, governments, nations and processes used in the trade across the world. It is a process
that has effects on the entire society, environment, politics and culture, as well as the economic
development of the world. This can also influence wealth, prosperity and physical well-being of
people in the world. Because globalization means that people from great distances buy and sell
goods from each other, it also means people have invested in other countries and their companies
for centuries. It sounds like there are no negative sides to this collaboration. However, there are bad
effects of globalization that might have a stronger influence on the society than the benefits of
globalization.

Starting off with the one of the first of negative impacts of globalization, it increase the emissions of
CO2. How exactly? The fact is, the companies and enterprises require more and more goods, which
means factories burn more coal quickly, thus increasing the release of carbon dioxide into the
environment. Needless to say, this has a terrible effect on the environment, causing global warming
to speed up and endanger our overall existence in a couple of decades. The more goods and
service countries and people require, and the more affordable prices are due to the competitive
nature of companies, the higher the negative impact will be on the environment. This is not
something companies usually consider as their priority, but is one of the major factors why we are
faced with global warming.

Globalization also influences employment in many countries. This process has led to a transfer of
jobs from develop, and highly-successful countries to those that are less developed. This means
that, less developed countries, that have lower wages overall, inexpensive coal, light rules when it
comes to pollution are able to create an atmosphere where other countries can’t possibly compete.
Just in the US, the percentage of employed citizens has drastically dropped, especially since China
joined the World Trade Organization. However, the globalization negative effects can be seen all
around the world, not just in the USA. So many countries are hiring help off shore due to employees
who are willing to do the same job, at lower prices, which actually influences the economy of a
country in a negative way.

Another one of the negatives of globalizations that ordinary citizens can actually notice is the tax
changes. With big companies that can move around to locations where the taxes are lower, citizens
feel the changes in taxes the most. People can’t move from location to location, due to their jobs and
personal lives. There’s also the fact that with the lack of jobs caused by globalization, communities
are basically competing with each other, in the sense who will give more tax breaks to their
employers. This in essence means, globalization is transferring taxes over to the ordinary citizens,
away from the corporations.

It is a fact that globalization has created a very competitive environment in the entire world. Each
country strives to sell as many goods and services, at the lowest price possible. The prices are
important, because the lower and more affordable the prices are among competitors, the bigger the
demand, because the people are always going for what’s ultimately cheaper. This has triggered the
so-called currency race to the bottom. This makes every country drop the value of its currency. And
this isn’t the only effect of globalization, when value is concerned. Another way companies cut down
on costs and sell at the lowest price is by paying lower wages to their employees, using cheaper
fuels that pollute the environment more, and essentially let more pollution into the air causing global
warm to become more intense.

One of the major negative consequences of globalization revolved around independence. Or for that
matter, the lack of it in certain countries. In a certain way, globalization has encouraged the
dependence on certain goods and services in some countries. Certain countries may rely on import
more than on the production process overall. This leads to countries stopping to produce their own
goods, such as clothing and food, and import it entirely from other countries, putting their well-being
into the hands of another country. So far the system has worked, but what happens when dependent
countries are left without resources, because the system starts to fail. And this dependence isn’t just
on food and clothing, but on technology as well. If a country doesn’t produce their own goods, they
are in high risk of a crisis, if these resources potentially stop functioning.

Last but not least, globalization is a process that enables countries to collaborate with each other
through integration of systems, making these countries not just possibly dependent on each other
but tied together tightly, creating a chain. This chain can mean, if a country collapses due to a certain
reason, it is likely to influence other countries it is connected through the system of globalization,
endangering all countries it’s connected to. There have been many examples like this in history.
Civilizations that started off small, grew and eventually over-utilized their resource base, after which
it ended up collapsing. Although this has happened in the past, and our systems have evolved, we
are still involved in a very similar situations, if not potentially more dangerous now, because of the
large number of countries who are linked together through globalization.

Globalization is an inevitable process that has been around for thousands of years and has
continued to develop further using all the resources possible to make trade more efficient. With all of
the above mentioned negative effects of globalization, it leads us to the conclusion that if
globalization had a negative impact on civilizations and countries before, causing them to collapse
completely, this event is bound to happen again in the future. The question is just when.

Positive and negative effects of

Globalization
4819 words (19 pages) Essay in Economics
10/01/17 Economics Reference this Globalisation

Disclaimer: This work has been submitted by a student. This is not an example of the
work produced by our Essay Writing Service. You can view samples of our professional
work here.

Any opinions, findings, conclusions or recommendations expressed in this material are

those of the authors and do not necessarily reflect the views of UK Essays.

EXECUTIVE SUMMARY.
Business management is the act of getting people together to accomplish desired goals
and objectives. Globalization in short, points to the whole effort towards making the
world global community as a one village. Globalization on business management is
interconnection of international markets and managing businesses in a global industry.
This includes foreign investments whereby a company expands its business and invest in
foreign countries.

Globalization makes business management easier and efficient for the company.

Based on my research, Globalization simplifies business management in the world. This

is due to the advancement in technology, transport, communication, education, and
regulations of trade that makes trade fair to all parties. This attracts more people to
engage in international business and international trade. Managers within the global
face a lot of challenges due to high competition in the industry, good decisions must be
made in order to satisfy and maintain their customers and attract more customers for
their products. Companies enjoy economies of scale in the business due to reduction of
cost in the management.

This report explores a range of interlinking questions, starting with what is globalization,
what are the effects of globalization in developing countries and developed countries,
this is in terms of positive and negative effects. Globalization is something that affects
all of us, no matter what our profession or interest is.

Globalization is a very wide and a very important focus of discussion. I spent time
researching what it is and the effects it has in developed countries and developing
countries. So in this report I will define what globalization is and the effects according
based on my research. Globalization despite having benefits to the world, it also has a
negative effects of it.
INTRODUCTION.
Globalization in short, points to the whole effort towards making the world global
community as a one village. Goods that were only found in western countries can now
be found across the globe. Now under developed areas can enjoy the benefits of
scientific advances and industrial progress available in developed countries for the
improvement and growth of their areas.

Because of globalization the economies of the world are being increasingly integrated,
example mobile phones and internet have brought people closer. The world is
becoming a smaller place. Work can be outsourced to any part of the world that has an
internet connection because of improvements in traffic infrastructure one is able to
reach one’s destination in a short time.

Globalization can also be defined as an ongoing process by which regional economies,

societies and cultures have become integrated through a globe-spanning network of
communication and trade. The process of globalization includes a number of factors
which are rapid technology developments that make global communications possible,
political developments such as the fall of communism, and transportation developments
that make traveling faster and more frequent. These produce greater development
opportunities for companies with the opening up of additional markets, allow greater
customer harmonization as a result of the increase in shared cultural values, and provide
a superior competitive position with lower operating costs in other countries and access
to new raw materials, resources, and investment opportunities.

Globalization through global communications, global markets and global production

have promoted and facilitated by a fourth area of global activity in relation to money.
For example, the American dollar, the Japanese yen, Euro and other major national
currencies circulate globally. They are being used anywhere on earth and moving
electronically and via air transport anywhere in effectively no time. Most bankcards can
extract cash in local currency from the thousands of automated teller machines (ATMs)
across the world. Also credit cards like Visa, MasterCard and American Express can be
used for payments in almost every country in the globe (Scholte J.A., 2000).

People can move from one country to another, trade restrictions are reducing, domestic
markets are opening up for foreign investments, telecommunications are better
established and the countries that are leading the innovations are passing on their
technologies to other countries in need (Kulkami A., 2009).
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN
DEVELOPED COUNTRIES.
Globalization has brought benefits in developed countries as well as negative effects.
The positive effects include a number of factors which are education, trade, technology,
competition, investments and capital flows, employment, culture and organization
structure.

POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has
had on the world at large. But still, here are some of the positive effects of globalization
and the positive impacts they have had on so many demographic segments of society.

Global market.
Most successful emerging markets in developed countries are a result of privatization of
state owned industries. In order for these industries to increase consumer demand many
of them are attempting to expand and extend their value chain to an international level.
The impact of globalization on business management is seen by the sudden increase of
number of transactions across the borders. In protecting yields and maintaining
competitiveness, businesses are continuing to develop a wide range of their footprint as
it lowers cost and enjoys economies of scale (Shah A.,2009)

Multinational corporations is a result of globalization. They occupy a central role within

the process of globalization as evidenced through global foreign direct investment
inflows. Their concentrations within Europe in western economies has led to size
constraints, therefore there is a need for new geographical areas to operate whereby
they will face a lot of competition in the market. Through this they will enlarge their
market and enjoy economies of scale as globalization facilitates time space
compression, economies compete at all levels including that of attracting investors
(Smith V.A and Omar M.,2005).

Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are
the only people who are affluent enough to buy many of the products available in the
global marketplace. Highly educated and wealthy people from different backgrounds
interact within a westernized milieu. Western styles, since are symbols of affluence and
power, the elite often embraces western styles of products and pattern of behavior in
order to impress others. Today Western culture and patterns of behavior and language
are staples of international business (Asgary N. and Walle A.H.,2002).

United states seems to have powerful impact upon many other countries and societies.
The world today has a popular cultural force. The popular consumer culture of the
economically dominant West is relentlessly and inevitably transforming other regions,
cultures, nations and societies. In addition, such perspective imply that technological
change, mass media, and consumer oriented marketing campaigns work in tandem to
remake whatever they touch in their own image. Even attitudes and ideas about society,
religion and technology are transformed by cultural diffusion brought by globalization.
Example, in America McDonalds represent fast, cheap and convenient food while it is
not the same worldwide. It’s of high price in other countries like China and Russia where
it involves cultural experience (Walle A.H, 2002)

Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were
only found in developed countries can now be found in other countries across the
world. People can now get whatever they want and from any country. Through this
developed countries can export their goods to other countries. Countries do business
through international trade, whereby they import and export goods across the global.
These countries which export goods get comparative advantages. Organizations have
been established with a view to control and regulate the trade activities of the countries
in the world so to have fair trade. World trade organizations emerged as a powerful
international organization capable effectively influencing individual governments to
follow international trade rules, copyrights, policies on subsidies, taxes and tariffs.
Nations can not break rules without facing economic consequences (Piaseck R. and
Wolnicki M., 2004) .

The number of nations that are dependent on trade, foreign capital, and the world
financial markets increased greatly. Countries engaged in foreign trade enjoy
comparative advantage. The post Recardian trade theories predicted that specialization
in labor and capital intensive goods would bridge enormous wage gaps between the
poor and the rich countries, that is the developing and developed countries, sparing the
latter from massive labor immigration (Gerber J., 2002).

Resource Imperative
Developed countries need natural and human resources of the developing countries
while developing countries need capital, technology and brainpower of the wealthier
countries. Developed countries’ economies are increasingly dependent on the natural
and human resources of the developing nations. Growing interdependence of nations
and their activities on one another fostered by the depletion of natural resources; as well
as overpopulation (Harris P.R.,2002).

Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign
capital. A lot of companies have directly invested in India, by starting production units in
India, but what we also need to see is the amount of Foreign Investment Inflow that
flows into the developing countries. Indian companies which have been performing well,
both in India and off the shores, will attract a lot of foreign investment, and thus pushes
up the reserve of foreign exchange available in India. This is also one of the positive
effects of globalization in US and other developed countries as developing countries
give them a good investment proposition.

Managers’ objectives might not be the same with those of stockholders in some
situations. The more complex the corporation the more difficult it is for shareholders to
monitor management’s actions whereby it provides the managers more freedom to act
in their own self interest at the expense of shareholders. Multinational firms are more
complex than national firms. Managers might favor international diversification because
it reduces firm specific risk or adds to their prestige. These goals might be of little
interest to shareholders. This divergence of interests between shareholders and
managers, might reduce the value of multinationals relative to domestic firms
(Saudagaran S.M.,2002)

Competition
One of the most visible positive effects of globalization is the improved quality of
products due to globe competition. Customer service and the ‘customer is the king’
approaches to production have led to improved quality of products and services. As the
domestic companies have to fight out foreign competition, they are compelled to raise
their standards and customer satisfaction levels in order to survive in the market.
Besides, when a global brand enters a new country, it comes in riding on some goodwill,
which it has to live up to. This creates competition in the market and a survival of the
fittest situation.

Culture
The positive effects of globalization on culture are many! Not all good practices were
born in one civilization. The world that we live in today is a result of several cultures
coming together. People of one culture, if receptive, tend to see the flaws in their
culture and pick up the culture which is more correct or in tune with the times. Societies
have become larger as they have welcomed people of other civilizations and
backgrounds and created a whole new culture of their own. Cooking styles, languages
and customs have spread all due to globalization. The same can be said about movies,
musical styles and other art forms. They too have moved from one country to another,
leaving an impression on a culture which has adopted them.

Legal Effects
Increased media coverage draws the attention of the world to human rights violations.
This leads to improvement in human rights. Global economic growth does not
necessarily make people happier, worldwide free trade, should also benefit humanity as
well as protect nature, not just reward managers and stockholders. Those who would be
authentic leaders need to address inequalities. Globalization should promote openness
and information along with exchange with greater democracy and prosperity (Harris
P.R., 2002).

Gone are the days where the limited jurisdiction became a hindrance in the prosecution
of criminals. These days due to international courts of justice, these criminals can no
longer seek asylum in a foreign country, but will be brought forward and there will be
justice. Due to globalization, there is also an understanding between the security
agencies and the police of two or more different countries who will come together to
curbglobal terrorism. Hence, it is now possible to catch the perpetrators of crime
irrespective of which country they choose to hide in. This is undoubtedly one of the
greatest positive effects of globalization on society.

NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some
factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency,
capital flows and so on.

JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs.
Developed nations have outsourced manufacturing and white collar jobs. That means
less jobs for their people. This is because the manufacturing work is outsourced to
countries where the costs of manufacturing goods and wages are lower than in their
countries. They have outsourced to developing countries like China and India. Most
people like accountants, programmers, editors and scientists have lost jobs due to
outsourcing to cheaper locations like India.

Globalization has led to exploitation of labor. Safety standards are ignored to produce
cheap goods. “In practice, however, the recent experience in Latin America has been that
many such open-handed multinationals moved their operations to, for example, China
or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki
M., 2004).

FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed
countries are forced to lower down their prices for their products, this is because other
countries like China produce goods at a lower cost that makes goods to be cheaper
than the ones produced in developed countries. So, in order for the developed countries
to maintain their customers they are forced to reduce prices of their goods. This is a
disadvantage to them because it reduces the ability to sustain social welfare in their
countries.

EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN

DEVELOPING COUNTRIES.
POSITIVE EFFECTS.
“I know that globalization has also created many negative effects, but I believe it’s
always better to look to the future with optimism and hope. Tomorrow, hopefully, we
will be able to minimize or even eradicate the evil forces that give globalization a bad
name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)

Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty
reduction in developing countries. In deed most developed countries experienced
reduction in poverty in the proportion of their living below the poverty line, including
fast developing countries like China, India, Vietnam. While other countries like Sub-
Saharan Africa registered an opposite trend (Lee E., 2006).

Employment situation.
Through globalization, people from different countries are provided with jobs
opportunities within the global. It has created the concept of outsourcing. Developed
countries prefer to provide work to developing countries where costs are cheap. Work
such as customer support, software development, accounting, marketing and insurance
are given to developing countries like India. Therefore the country that is given the work
enjoys by getting jobs.

It has given an opportunity to invest in the emerging markets and tap up the talent
which is available there. In developing countries, there is often a lack of capital which
hinders the growth of domestic companies and hence, employment. In such cases, due
to global nature of the businesses, people of developing countries too can obtain
gainful employment opportunities (Pillai P.,2008).

Technology
This is a powerful force that drives the world toward a converging commonality. It has
proletarianized communication, transport, and travel. People from different places
everywhere wants all the things they have heard about, seen, or experienced through
technology. Organizations through its managements can obtain knowledge from
different places in the world that can be used in the organization.

Television and medias played a big role in influencing the perception of the world, from
a relatively small national unity and reality, into a global market and international
concerns. As multinationals establish subsidiaries in new locations, they transfer know
how from the parent to the local operation. Knowledge flows from one unit to another
as a whole organization benefits from development activity. One of the ways that
organizations use in knowledge transfer is the movement of personnel, which takes
place within multinationals. This build up a bank of knowledge about working in
different situations with people from different cultures and this represents a stock of
knowledge that could be developed and used to benefit the organization (Kamoche,
1997).

Education.
Globalization from the point of view has positive effects as well as negative effects. It
has increased the access of higher education example universities and reducing the
knowledge gap in developing countries, it equally has negative aspects which can
seriously threaten universities in those countries. From point of view it has brought
more positive effects to developing countries through increasing access to higher
learning institutions. Today you can move in the search of the best educational facilities
in the world including developing countries without any hindrance. This is due to
increased output from secondary schools, greater participation of women in higher
education, a growing private sector demand for graduates, and the exorbitant costs of
acquiring education in foreign countries, especially those in the nort (Mohamedbhai G.,
2002).

Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most
significant effect it has brought to developing countries is Trade. Before people used to
exchange goods for goods or services for services but now people can trade goods for
money. This is mostly through International trade whereby people exports and imports
goods within countries. Globalization has led to reduction of costs in trade within the
globe. It has led to reduction of tax of importation of goods.

According to economic theory, foreign trade is in principle, beneficial to any country

engaged. The international division of labor allocates the resources more efficient
whereby it increases the economic welfare of all countries engaged in foreign trade in
long run (Kaitilia V and Kotilainen M., 2002).

Foreign investment
Foreign investment is a direct result of globalization. Foreign investment is always
welcomed as it provides resources, capital and technology to a country that will support
economic development of the host country. This improves employment as in direct and
indirectly. Increases exports to a country and thereby improves the current account and
therefore will help to the repayment of foreign debt. This however has some criticisms
for leading to too much foreign control (Kaitilia V and Kotilainen M., 2002).

Developing countries can use general or specific industrial and trade policies to be more
or less welcoming to foreign direct investments, capital and foreign tourist services.
They can directly and indirectly shape their participation in the economic activities in the
globe (Piasecki R. and Wolnicki M., 2004).

Market sector
Globalization of markets in developing countries is growing so fast. The emergence of
global markets for standardized consumer products on a previously unimagined scale of
magnitude. This brought benefits which are economies of scale in production, reduced
world prices, distribution, marketing and management (Levitt T., 1983)

IKEA is one of the company that is growing fast in developed countries. Its market is
increasing within the global. It has become the world’s largest home furnishings retailer.
The managers are facing a lot of challenges in managing them (Nanda A., 1990). IKEA
can now be found in so many places in the world example Malaysia.

NEGATIVE EFFECTS
Globalization is a tool that benefits all sections of mankind. We cannot ignore the
negative effects it has in developing world.

Unemployment
Globalization is a blame to world’s unemployment situation though it brought some
jobs opportunities. Despite the fact that it brought jobs opportunities to the global but
it is still a blame to the current situation. “It ‘s true that global economic integration and
increased travel have resulted in increased competitiveness at the national and
enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and
raise productivity”(Kigundu M.N.,2002).

“The most important factor to determine the level of employment during 1980-2000
was national or regional macroeconomic policies which were implemented and
sustained. In addition those countries with liberal macroeconomic reforms, pursued
politics promoting flexible labor markets and employment practices, decentralized
industrial relations systems, and judicious enforcement of labor. On the other hand,
countries with employment laws, regulations, and policies experienced higher level of
employment because they were not able to attract and retain as many new
jobs”(Kiggundu M.N.,2002).
For example ,Indonesia faced unemployment and poverty that grew to levels not
experienced in two decades, health conditions worsened, and the natural environment
degraded (Piasecki R and Wolnicki M.,2004)

Spread of fast foods chain.

Fast foods chain is growing very fast. But some of the most rapid growth is occurring in
the developing countries, where it’s real changing the way people eat. “Kentucky Fried
Chicken(KFC) is the largest, fastest growing, and highest potential units” (Bartlett
C.,1986).

Most people prefer to buy fast foods because it’s cheap and quick. This replaces home
cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to
sodas, burgers, and other highly processed and standardized items that have a lot of fat,
sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic
diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops
and herds of livestock for easy processing, eliminating agricultural diversity.

Western culture.
Globalization has led to the spread of western culture and influence at the expense of
local culture in developing countries like Africa. Most people now in developing
countries cop what people in developed countries do. So, its like they ignore their own
culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and
eating habits, language. All these can affect management in one way or another
example it can cause misunderstandings because of language barrier.

Trade
Average tariff rates continue to be high in many developing countries, including some
that have recently implemented trade reforms. Example,India. Trade policy continues to
be an important aspect in globalization at least in some of the lower income developing
countries.

widespread use of

computers, faxes and mobile phones, introduction of the internet and

e-commerce, and quicker and cheaper means of transportation in some cases

offered opportunities to developing countries, but in many cases deepened the

gap between global firms and traditional industries

globalization opened up new opportunities for developing

countries to create jobs and expand exports. In practice, many developing

countries competing for foreign investors offered longer tax holidays,

costly subsidies, and various incentives for multinationals. The

competition among developing nations reduced positive net effects of

globalization or, at best, delayed them.

REFERENCES.
 http://www.oxfamblogs.org/fp2p/?p=1872
 http://www.unescap.org/esid/hds/issues/GlobalizationHealth.pdf

 http://www.un.int/turkey/3.pdf least developed countries

 Lee E,2006…..Poverty Alleviation, from http://ftp.iza.org/dp1925.pdf ILO,GENEVA

 (Foreign trade) How does globalization affect developing countries economically, article
3/2002 from http://www.etla.fi/files/918_FES_02_3_developing_countries.pdf

 FOREIGN INVESTMENT, from

http://www.etla.fi/files/918_FES_02_3_developing_countries.pdf

 Impacts of globalization from www.emeraldinsight.com

 Does globalization affect growth? http://129.3.20.41/eps/dev/papers/0210/0210004.pdf

 http://www.oit.org/wcmsp5/groups/public/—dgreports/—
integration/documents/publication/wcms_079177.pdf

 http://books.google.com/books?q=effects+of+globalization&btnG=Search+Books

 Effects of financial globalization on developing countries by Eswar S. Prasad, Kenneth

Rogoff, Shang-Jin Wei, and M.Ayhan Kose, International Monetary Fund, Washington
DC,2003 from http://books.google.com/books?
id=eBcFQ3DUcQEC&printsec=frontcover&dq=effects+of+globalization&cd=1#v=onepa
ge&q=&f=false

 Global Employment situation, Managing globalization on developing countries, by

Moses N. Kiggundu,2002 ….United States Of America from
http://books.google.com/books?id=OejvLdnW-
oMC&pg=PA293&dq=effects+of+globalization+on+developing+countries&cd=2#v=on
epage&q=effects%20of%20globalization%20on%20developing%20countries&f=false

 http://books.google.com/books?
id=BU9sU7sG3DoC&pg=PA131&dq=effects+of+globalization+on+developing+countri
 es&lr=&cd=12#v=onepage&q=effects%20of%20globalization%20on%20developing
%20countries&f=false

 Managing globalization on developing countries, by Moses N. Kiggundu ,2002 ….United

States Of America from http://books.google.com/books?id=OejvLdnW-
oMC&pg=PA293&dq=effects+of+globalization+on+developing+countries&cd=2#v=on
epage&q=effects%20of%20globalization%20on%20developing%20countries&f=false

 Effects of globalization in Latin American countries http://books.google.com/books?

id=ilL3tOo8My0C&pg=PA139&dq=effects+of+globalization+on+developing+countries
&cd=3#v=onepage&q=effects%20of%20globalization%20on%20developing
%20countries&f=false

 Jobs opportuinities in devpng countries,by Prabhakar Pillai,2008,

http://www.buzzle.com/articles/negative-effects-of-globalization.html

 Positive effects of globalizationhttp://www.buzzle.com/articles/positive-effects-of-

globalization.html

 Negative Effects of globalization in developing

countrieshttp://global_india1.tripod.com/negative.htm

 Technology in developing countries from

http://www.freeonlineresearchpapers.com/how-globalization-effects-third

 Effects of globalization, global market in developed countires

http://www.globalissues.org/article/768/global-financial-crisis

 Smith V.A and Omar M.,2005, effects of globalization,

www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0540170105.

 Effects of globalization in developing countries,infranstructure from by Smith V.A and

Omar M.,2005 from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0540170105.

 Cross cultural management in developed countries, Nader Asgary and Alf H. Walle,
volume 9, 2002 from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldabstractonlyarticle_pdf_1360090303.

 Foreign Investmet in developed countries,A review of the literature on the market

Valuation of Multinational Firms, by Saudagaran S.M., vol 28 No. 3, 2002 from
www.emeraldinsight.com_Insight_ViewContentServle_contentType=Article&Filename=pu
blished_emeraldabstractonolyarticle_pdf_0090280301.
  Unemployment situation in developing countries, Piasecki R and Wolnicki M.,2004 from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0060310306.

 International Trade in developed countries, Piasecki R and Wolnicki M.,2004 from

www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0060310306.

 Jobs insecurity in developed countries, the evolution of development economics and

globalization, by Piasecki R. and Wolnicki M.,vol. 31 No.3, 2004 from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0060310306.

 Effects of globalization, Globalization and Its Implications on Universities in developing

countries by Mohamedbhai G.,2002 from
www.emeraldinsight.com_MohamedbhaIGoolam2.pdf

 Effects of globalization in developed countries, developing global organization, by Harris

P.R vol 14 No. 6, 2002 pp 416-425 from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0540140603.

 http://www.indianmba.com/Faculty_Column/FC954/fc954.html

 http://books.google.com/books?
id=e2b8TvlNxJ0C&pg=PA41&dq=definition+of+globalization&cd=1#v=onepage&q=d
efinition%20of%20globalization&f=false

 Impact of globalization on developing countries by Goyal K.A, Issue 5, 2006 from

http://www.eurojournals.com/IRJFE%206%20goyal.pdf

 Ricardo D.(1911) as cited in Piasecki R. and Wolnicki M., Vol. 31 No. 3, 2004, evolution of
development economics and globalization from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0060310306.

 Kamoche K. (1996) as cited in Kidger P.J., Vol 24 No. 1, 2002 pp.69-85, Management
structure in multinational enterprises Responding to globalization from
www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_
published_emeraldfulltextarticle_pdf_0190240104.

Is Globalization Good or Bad Essay

3242 words (13 pages) Essay in Politics

05/07/17 Politics Reference this Globalisation

Disclaimer: This work has been submitted by a student. This is not an example of the
work produced by our Essay Writing Service. You can view samples of our professional
work here.

Any opinions, findings, conclusions or recommendations expressed in this material are

those of the authors and do not necessarily reflect the views of UK Essays.

Through the global interconnectedness among people, globalization has been

appeared. Globalization refers the integration of global economies, societies and
cultures through the communication, transportation and trade. During this period of this
process, one question has been raised whether is globalization bad or good? And
according to this question, it is proved that globalization is playing a fundamental role
to make progress to many sections including economies, culture and religion, public
services and living standard, and technology.

In economics, Globalization refers to the increasing interdependence of world

economies as a result of the growing scale of cross-border trade of commodities and
services, flow of international capital and wide and rapid spread of technologies. It
shows the market expansion and integration, and it is an unchangeable tendency for
international economic development. In economy, globalization is playing a significant
role to make advancement to this sector over the world.

Globalization has created widely the international economy, integration of markets and
the flow or movement in the world, all of which make escalations in global movement.
There are many importance of globalization on economy for many years. Improvement
in technology has a essential effect in decreasing the costs of transportation,
communication and commodity also lowering the price of data processing and
information storage. There is a sign of the modern technology like electric mail, the
internet, and World Wide Web. And with technological development, laptop computer
in contemporary time is more powerful than the very large powerful computer in twenty
five years ago and the price level in 1990 was only about 1/125 compared to that in
1960. Later on in 1998, the computer price wars reduced about 80% more. Furthermore,
because of the advancement of technological innovation, we see that the price of ocean
transportation is only a half compared to that in 1930, recent aircraft transportation 1/6,
and cost only 1% in telecommunication today. At the same time, the price of
international trade and investment are decreased by the effect of improvement of
technological creativity. Thus, global production is available to manage and coordinate.
For instance, Ford’s Lyman car is designed in Germany, its gearing system made in
Korea, pump in USA and machine in Australia. It is undeniable that the development of
technology make available of these global commodity. Moreover, a large number of
enterprises are grown rapidly with the progressing of networking-based economy,
making unimportant of the principle of national boundaries and distance of economic
action (Michael, 2003).

Globalization makes trade liberalization or economic liberalization available and this has
reduced the trade protection and become liberal world economic system. In World War
II and the Great Depression this process has been delayed severely. And later on, after
the end of World War II through the tendency to trade liberalization and the
participation of General Agreement on Tariffs and Trade(GATT) that has developed into
the World Trade Organization (WTO), this trade liberalization happened again. With this
reemergence, the tax and many barriers were decreased to make ease to the goods
transportation and services. Furthermore, liberalization has a active role to increase the
capital flow and production movement. It has been recommended by some economists
and historians that world economy in this contemporary time is not better than that in
late nineteenth century and early twentieth century. During that period of time, many
economic countries relied on the international trade and business as part of colonial
system. As a result, with the openness of the border, there was a great migration of
people and large international capital movements. This is an opinion of British scholars
during the British occupation as a colonial power over world economy. However, in this
late nineteenth century did not prove the advancement of technology that makes the
world economy globalized like today (Michael, 2003).

Globalization has made important effects on national economies. First is the

development of foreign direct investment (FDI) at the incredible rate that is more
significant than the growing of international trade. In fact, the technological movement,
industrial organizing and the creation of world enterprises which have a marvelous
effect on national economies have been stimulated by the foreign direct investment.
Second is the effect of globalization on the advancement of technology. As indicated
before, technological progress acts in an active role in globalization, but technology has
become more progressive and widespread rapidly because of globalization and
encouragement of marketing competition in foreign direct investment. Third is the
acceleration of services, concluding financial, legal, managerial and information services.
And this has become the most important section of the international business. In 1970,
the service exportation in foreign direct investment was less than compared to that
today and it is anticipated to increase further in the future. During the growth of services
in national and international market, some people called this period “the age of
competence” that underline the educational significance and human capital business in
economic sector of every countries.

However, globalization also makes some problems on international economies.

Globalization creates regional or world economic fragility and vulnerability because of
mutual interconnectedness of economies on the world. For instance, downturn in
finances and exchange rate that started from Thailand 1997 had a bad impact on
Southeast Asian economies and even Southeast Korea. But this problem above can be
solved effectively by the improvement of new institution, many organization and
international cooperation. Many institutions especially the International Monetary Fund
(IMF) could mitigate even address efficiently on this problem through the promotion to
the countries that have faced or discovered the national economic fragility and
instability. For example, in the period of peso crisis in Mexico, IMF played a critical role
to help as well as promote on this nation. Furthermore, during financial recession in East
Asia, IMF made an accord to support South Korea. Thus IMF increased substantially its
resources to ensure that these problems could be addressed in transparency.
International cooperation also plays a valuable role to the practice of Tobin Tax that is a
small tax on foreign exchange business. Tobin Tax has an effect on the limitation on the
trading of weak currency. Meanwhile, Tobin Tax also allocates the fund to the
international organization.

Globalization has promoted to the escalation of the marketing competition on the

international economies. We see that the marketing competition brings many
advantageous purposes in resulted in the augmentation of quantity and quality of
production. On the market system, Adam Smith and many classical economists stated
that the specialization and the division of labor were formed by the marketing
expansion the rivalry. With specialization and the division of labor, production is
augmented not only in a country, but also in the international basis. Other importance
of specialization and division of labor is the decrease of the costs of commodities and
services, and this condition allows the continual advancement in economic sector. With
the advantage of globalization, both parties such as individuals, firms other
organization, nation, trading bloc, continents or other entities can get benefits in the
economic exchange. For many years, globalization has promoted the augmentation of
productivity through the rationalization of production on a world scale, the
technological expansion and creativity-needed competition on the international basis.

In general, globalization has formed the marketing competition that has significant
influence in enhancing all groups’ position, with the scope of increased yield or better
salaries and higher living standard. Thus, with these benefits, the potential of human
welfare has been improved worldwide.
On the other hand, globalization has been proved as unpleasant impact on the
sovereign government. It has been stated that the globalization forces are jeopardizing
the sovereign nation because the management of the national economic sector has
been changed from national government to other institutions, including multinational or
international companies and international institution or organization. This
transformation can make a sovereign state lose its capacity to determine on policies of
its economies. However, the globalization requires not making loss to the national
sovereignty. In fact, sovereignty of a country or state and the proper duty of the political
leaders remain stable because of the international cooperation. It is like the side being
divided separately into two sides. One side for the governmental leaders and other side
for international organization, multinational or international company. Moreover, the
presence of these institution in addressing the problems or risks stemming by the
globalization forces has supported the government leaders especially in politics to keep
and even to determine its position in the world economic society. Furthermore,
cooperation between the sovereign state and international institution can lead to the
progressing through cooperative action. In general, there are many methods of
cooperation in addressing with the problems of globalization. First is the keep the
existing organization and institution stable and strong. Second is the formation of new
institution, as in the case of the World Trade Organization (WTO), to settle the
disagreement especially stemming from the globalization. Third is the foundation of
larger institution such as the European Union (EU), G-8 or the Asian Pacific Economic
Cooperation (APEC). Thus, according to the proof of globalization benefits mentioned
above, we can conclude that the process of globalization is really fundamental in
promoting the economic advancement not only in a nation but also in the whole world.

Globalization also has a lot of impacts on culture and religion around the world. It
spreads from countries to another through Medias and import of production. The
media, of course, owned by developed countries that tried to introduce their culture
into the other countries around the world. This spread of cultural treads is the most
effective way than the others. Ex, people amazed, interested, and inspired by the foreign
culture through TV, radio, and especially internet; people, especially teenager, around
the world quickly adopted the foreign cultures. Globalization also introduced the
“Modernization” into developing countries which made them consume more luxury
production. Those demands of production required the import of other production into
their countries. This trade of production also helped to spread foreign culture into other
countries too. Ex, the uses of other production differed from their culture would made
them try to adapt to the natural culture of the production, such as the way they eat in
luxury restaurant, the use of mobile phone, etc. Moreover, Globalization also suggested
“Democracy” to other countries too. Democracy promotes human rights, equality
among men and women, freedom of press and expression, and the rights to vote to
choose their leaders. Because of these prosperities and freedom of Democracy, it
attracted millions of people to realize and demand for justice, freedom, and changes in
policy of autocratic states. Ex, In Burma, people hate the autocratic system of
government and they love democracy, so they protest against the government to
change the system or resign from the position. This spread of foreign cultures also
affected the indigenous religions that had been rooted thousands of years ago in most
Asian countries. Most people can’t stand the cruel treat of some religion that have done
to them, so they wanted to let go of their religion and adopt foreign culture or religion.
Ex, In Islamic states, women have to wear mask to hide their face when they go out in
public. And other example is that men can marry as many wives as they want too. Most
Islamic people in Iraq and Afghanistan believed that become the suicide bomber for the
sake of their country will bring them to heaven to live with god. All of these treatment to
people is cruel and unfair for them that why people want to change and get away from
it. All in all of the effects of globalization in culture helped to promote peace,
cooperation and unity among people around them by understanding each other
through the same culture. However, some people believed that the spread of
globalization gradually made them lost their cultural identities. Of course, the spread of
globalization changed some of their culture and belief but globalization didn’t force
them to do so. It is all up to people choices to choose their way to live their life. People
adapted only the culture that they believed to suit them well and they forbad the
inappropriate culture. Some other people continued to argue that globalization made
Asian people disrespect the elder and tended to commit more crimes. But these
activities got nothing to do with globalization, in fact, controlling the behavior of people
and children are the duty of their parents and government.

Living standard also promoted by globalization through the education and health care.
Education is necessary for people to sharing experiences, skills and intellectual assets.
According to Sadegh and Shajar (2006), globalization is creating opportunities for
sharing knowledge, technology, social values, and behavioral norms and promoting
developments at different level including individual, organization, communities and
societies across different countries and culture. Moreover, people can articulate human
right through the education. If all people can know clearly about human right, it will
decrease the violation in the country. As Sadegh and Dhajar stated that, education also
means that populations became aware of their right and obligation as citizens and
management of life in their communities. In addition, globalization leads to have
modern materials for people to study. Nowadays, people can search books or any
topic of assignments through the internet, it facilitates student to reduce
time for going to the libraries. By using LCD, it can make teachers to explain more
easily and it doesn’t waste time to write on white board. As well as, globalization can
increase access to education for women and poor people, unlike the history that women
cannot go to school or go outside, they can do only housework. According to United
Nations, to follow the role of UNDP, government ought to build up human capital
through education and ensuring that the poor have access to education (2001). But
Bloom said that, the need for higher education in developing countries is going largely
unmet. In much of the developing world, higher education delivery is woefully unsuited
to the demands of globalization (2002). Furthermore, another point that can improve
living standard is health care service. Because of globalization, people can get advance
technology of surgery ad innovative medical.  When the health care increase, people
can consult for their health easily, improve treatment and prevention of all kinds of
illness and disease. These also lead to increase life expectancy. Moreover, through
globalization, the country open freely for all organization to set up there. Some
organizations are providing health care to people like WHO. The World Health
Organization aims to assist government to strengthen health service and its role is
promoting health to all men kind by providing technical support and building
sustainable institutional capacity. However, some author stated that globalization
promoted health care for people, but it’s also the one who spread diseases. Like
Woodward, Drager, Beaglehole and Lipson response that globalization offers the
potential both to improve the health effects of globalization itself and to provide
broader benefits to health worldwide. Thus, education and health care offers vast
potential for improving living standard through globalization.

As we move further and further into the 21st century, we can clearly see that technology
is changing into a new dimension. Technology plays an important and significant role of
globalization through its many ways. Technology promotes the development of a global
telecommunications infrastructure and greater cross-border data flow by using Internet,
communication satellites, fiber optic cable and wireless technology. We can see the
advantages of globalization in the Internet. The integration and merging the people of
the world have been emerged over the past decade and make the true global
communication exist through the Internet technology. For example, someone in the
United States can talk or email to someone in Cambodia. “…the emergence of the
Internet as a tool of low-cost global connectivity…This sudden revolution in
connectivity constituted a major flattening force” (Friedman, 2007). Internet allows us to
take our own digital contents and send it anywhere at very low cost or sometimes for
free so that people around the world could share whatever they want to share to the
world. Through the Internet technology, social media such as social networking and
online conference also bring a big impact on globalization. Social networking such as
Facebook and Twitter has integrated people around the world and their community with
many advantages for them. For instance, some people have formed new business,
enhanced their existing business and sold products through marketing on social
networking. Some people also received assistance from their friends or others when
they are in trouble, and they also make new friends and improve the friendship through
chatting, commenting, posting, calling and video calling. They could also read news and
join any contests available on the social media. In addition, the impacts of technology
on globalization also include modernization and business field on a global base
(Zunairah, 2008). The process of electronic transaction is being improved with business
integration, and broadcasting of information over the Internet makes people gain
instant access to new information and communication technologies. In business, many
companies are enjoying many benefits from the technological research and innovation.
For example, business meeting or business production process can be communicated
through the Internet and it is possible to communicate with other people and
companies across the continents and oceans. The Internet turned into an important part
of doing business. Instead of face to face meeting with clients, the managers or
chairman could see communicate remotely to their clients via the Internet. However, if
there are any mistakes on the communication process through the Internet, many
people will suffer and lost benefits from their business. According to BBC News, Skype,
which is the most dominant software that many companies use it to communicate with
their clients, was crashed by the software bugs and server overloading. Millions of Skype
users around the world cannot log in for several hours and it was very disappointing to
those users because they suffered and lost some process of their business. That’s why
the communication through the Internet is very important for business. Open-sourcing
also integrates the people of the world. It involves self-organizing communities or
groups that modify and improve open software so that it can be accessed by anyone
around the world. For example, Wikipedia uses the open-sourcing principle so that
anyone is able to add and edit it. Linux or Mozilla’s Firefox web browser is also open
source software that is free to download. It also has the power of cooperation that
everybody can work together to solve a given problem. However, globalization on
technology cannot reach or benefits the less developing countries. They don’t have
Internet connection or sometimes telecommunication. Therefore, these disadvantages
can be reduced if the flow of the Internet and Information Technology are introduced to
those less developing countries and they can develop their progress in the future. There
can be a wonderful impact on globalization as communication process between
individuals, institutions and states in different areas of the world and promote the
political, social, economic, and cultural aspects of a state.

In conclusion, globalization has critical effects on the advancement on economies,

culture and religion, public services and living standard, and technology not only in a
nation but also in the whole world. Although globalization shows a manifestation of
disadvantage effects, the benefits of globalization still remain as priority in the
international society.
 The Impact of Globalization on Economic
Growth
 Share
 Pin
 Email

•••

BY JUSTIN KUEPPER

Updated July 29, 2019

The aim of globalization is to benefit individual economies around the world by making
markets more efficient, increasing competition, limiting military conflicts, and spreading
wealth more equally.

The Balance

Globalization Benefits World Economies

The Milken Institute’s "Globalization of the World Economy" report of 2003 highlighted
many of the benefits associated with globalization while outlining some of the
associated risks that governments and investors should consider. The principles of this
report still remain relevant.

Some of the benefits of globalization include:

 Foreign Direct Investment: Foreign direct investment (FDI) tends to increase at a

much greater rate than the growth in world trade, helping boost technology transfer,
industrial restructuring, and the growth of global companies.
  Technological Innovation: Increased competition from globalization helps stimulate
new technology development, particularly with the growth in FDI, which helps improve
economic output by making processes more efficient.

 Economies of Scale: Globalization enables large companies to realize economies of

scale that reduce costs and prices, which in turn supports further economic growth,
although this can hurt many small businesses attempting to compete domestically.

Some of the risks of globalization include:

 Interdependence: Globalization leads to the interdependence between nations, which

could cause regional or global instabilities if local economic fluctuations end up
impacting a large number of countries relying on them.
 National Sovereignty: Some see the rise of nation-states, multinational or global firms,
and other international organizations as a threat to sovereignty. Ultimately, this could
cause some leaders to become nationalistic or xenophobic.

 Equity Distribution: The benefits of globalization can be unfairly skewed towards rich
nations or individuals, creating greater inequalities and leading to potential conflicts both
nationally and internationally as a result.

Writing in the quarterly Milken Institute Review in late 2017, Dani Rodrik, author of
“Straight Talk on Trade: Ideas for a Sane World Economy,” argued that a rebalancing of
globalization is necessary to restore more voice to labor and its needs for job and
income stability while focusing attention globally on where the biggest economic gains
can be made.

Tariffs and Other Forms of Protectionism

The 2008 economic crisis led many politicians to question the merits of globalization.
Global cross-border capital flows shrank by 65% between 2007 and 2016, according to
a McKinsey Global Institute analysis of data from the International Monetary Fund. The
decrease from $12.4 trillion to $4.3 trillion in those nine years includes declines in
lending, FDI, and equity and bond purchases.
In the U.S. and Europe, new banking regulations were introduced that limited capital
flows. Tariffs have been put in place at times to protect domestic industries seen as vital,
such as a 127% U.S. tariff on Chinese paper clips or Japan’s 778% tariff on imported
rice. In Brazil—where import tariffs run between 10% and 35%—the new government
announced in May 2019 that it plans to reduce them by 10 percentage points over the
next four years.

The 2016 election of Donald Trump in the United States and the British vote to leave the
European Union (known as the Brexit) have also contributed to the anti-globalization
movement. These trends have been driven by anti-immigration sentiments in Europe,
although 2018 election results veer more pro- than anti-globalization.

The Picture in 2019 Is Blurry

Economists suggest cross-border investments in 2019 are not being made so much to
build capital infrastructure as they are to seek countries with the lowest taxes.

Some form of globalization may be inevitable over the long-run, but the historic bumps
spurred by economic crises and other consequences suggest the only reliable constant
is change.

Escalated U.S. tariffs on Chinese imports raised $20.8 billion through mid-July 2019,
according to U.S. Customs and Border Protection. American farmers hurt by China
diverting crop purchases to other countries were promised $28 billion in federal
compensation, making it an overall net loss.
 ow could
biotechnology
improve your life?

25 Feb 2013

1. Sang Yup LeeDistinguished Professor, Korea Advanced Institute of

Science and Technology (KAIST)
Predictions for 2030: What if
we get things right?

Read the series

Most Popular

Here’s what you need to know about Bangladesh’s rocketing economy

Katharine Rooney 19 Nov 2019

These four countries are the happiest in the European Union

Johnny Wood 19 Nov 2019

This university student created a plastic alternative out of fish waste

Stuart McDill ∙ Reuters 18 Nov 2019

More on the agenda

Explore context

Climate Change
Explore the latest strategic trends, research and analysis

Experts on the World Economic Forum’s Council on

Biotechnology have selected 10 developments which they
believe could help not only meet the rapidly growing demand
for energy, food and healthcare, but also increase productivity
and create new jobs, should issues such as regulatory
certainty, public perception and investment be tackled
successfully. In this blog post, the council members make
their case for each of these technologies and highlight their
potential benefits:

1. Bioproduction of sustainable chemicals, energy and other

materials
Over the past 100 years, humans have depleted about half the
world’s known reserves of fossil fuels. These reserves, which
took more than 600 million years to accumulate, are non-
renewable, and their extraction, refining and burning are a
major cause of greenhouse gases and the warming of the
planet. One of the most promising hopes in the sustainability
field is artificial biosynthesis, a process whereby living
organisms, such as bacteria, fungus or plants, are used to
create fuels, chemicals and other materials.

2. Genetically modified crops to increase sustainable food

production

The continuing increase in our numbers and affluence are

posing growing challenges to the ability of humanity to
produce adequate food and animal feed, as well as meet the
new demands for biofuel. Although controversial, genetic modification of
crops can help to solve this problem. The evidence shows that, in places where they
are allowed, modern GM crops are contributing to the growth of agricultural
productivity. In 2011, for instance, 16.7 million farmers grew biotech crops on almost
400 million acres in 29 countries, including 19 developing countries. Existing GM
commodity crops also contribute to crop sustainability by permitting the use of less
pesticide and decreasing the need for erosion-promoting tillage. Such crops also
contribute to human and animal welfare by increasing farm productivity and reducing
fungal contamination of grain.

3. Seawater bioprocesses to produce fuel and chemicals

More than 70% of the Earth’s surface is covered by seawater,

and it is the most abundant water source available on the
planet, but we are only starting to tap its potential. For
instance, new bioprocesses can turn some types of seaweed
grown in the oceans into biofuels, potentially providing an
energy solution to countries that lack arable land and access
to freshwater. Additionally, bacteria and microalgae that live
and grow in seawater can be engineered to grow more
efficiently and be used to produce chemicals, fuels and
polymeric materials.

4. Zero-waste bio-processing

Environmentalists have long dreamed of a zero-waste society

and new bio-processing techniques could help to make this a
reality. Biorefineries – facilities that integrate biomass
conversion processes and equipment to produce fuel, power,
heat and value-added chemicals from biomass – can turn
industrial waste streams into chemicals and fuels, thereby
closing the production loop. Recent advances include using
less-costly inputs in the bio-process, such as carbon dioxide,
methane and waste heat. Other advances are also simplifying
the waste streams, reducing their toxicity and moving society
closer to the goal of zero waste.

5. Carbon dioxide as a raw material

Carbon dioxide and other carbon molecules are seen as a

culprit in global warming, and the environmental
consequences of more of these compounds entering the
atmosphere is becoming increasingly clear. Recent advances
are rapidly increasing our understanding of how living
organisms consume and use carbon dioxide. By harnessing the
power of these natural biological systems, scientists are
engineering a new wave of approaches to convert waste
carbon dioxide and other molecules into energy, fuel,
chemicals, and materials that may help the world meet its
needs.

6. Regenerative medicine to create new organs

Many societies that are grappling with the challenge of a

rapidly ageing population are increasing the demand for
regenerative medicine, which holds the promise of growing
tissue and organs in the laboratory and allows surgeons to
safely implant them when the body is unable to heal itself.
Traffic accidents and war amputations are also spurring
interest in the field. Scientists are already able to engineer
tissue using various biomaterials, and believe that stem cells,
especially ones called induced pluripotent stem cells (adult
cells that have been genetically reprogrammed to an
embryonic stem cell-like state) provide another significant
opportunity in this field.

7. Rapid and precise development and manufacturing of medicine

and vaccines

The ability of therapeutics and vaccines to treat and prevent

diseases has been well documented. Biotechnology has been
central to these advances, progressively offering the ability to
make more complicated medicines and vaccines, opening up
the treatment and prevention of a broader set of diseases. The
leading edge of biotechnology is now offering the potential to
rapidly produce therapeutics and vaccines against virtually
any target. These technologies – including messenger
therapeutics to stimulate the body’s natural ability to produce
therapeutic proteins; targeted immunotherapies to boost or
restore the ability of the immune system to fight diseases by
targeting specific cells; conjugated nanoparticles, which
combine antibodies and nanoparticles – have already produced
potential treatments with substantial promise to improve
human health globally.

8. Accurate, fast, cheap, and personalized diagnostics and

prognostics

One of the most real and serious threats to the human race is
a potential global pandemic. Biotechnology has the potential
to provide the platforms needed for rapid identification of
biological threats, development of potential cures and global
manufacturing of the solutions. Identification of better targets
and combined use of nanotechnology and information
technology are making it possible to develop rapid, accurate,
personalized and inexpensive diagnostics and prognostics
systems.

9. Biotech improvements to soil and water

Arable land and fresh water are two of our most important, yet
limited, resources. Sustained abuse and misappropriation have
threatened these resources, much as the demand on them has
increased. Advances in biotechnology have already yielded
technologies that are beginning to restore the vitality and
viability of these resources. A new generation of developing
technologies, such as bioremediation to use microbial
metabolism to remove pollutants, bioregeneration to renew or
restore life-supporting resources using biological processes,
and bioaugmentation to introduce a group of natural microbial
strains or a genetically engineered variant to treat
contaminated soil or water, offers great promise to not only
further restore these resources but also to augment their
potential.

10. Advanced healthcare through genome sequencing

It took more than 13 years and US$1.5 billion to sequence the

first human genome and determine the precise order of the
building blocks in our genetic information. Today, we can
sequence a complete human genome in a single day for less
than US$1,000. When we analyse in such a sequence the
roughly 3 billion base pairs, which are the building blocks of
the genome, we find that we differ from each other in several
million of these base pairs. In the vast majority of cases these
differences do not cause any issues, but in rare cases they
cause disease or susceptibility to disease. New research and
medicine will increasingly be driven by our understanding of
such genetic variations and their consequences.

Author: This list has been compiled by the World Economic

Forum’s Global Agenda Council on Biotechnology, of which Lee
Sang Yup is currently chair. For a full list of the Council’s
members see here.

BENEFITS & RISKS OF

BIOTECHNOLOGY
“This is a whole new era where we’re moving beyond little edits on single genes
to being able to write whatever we want throughout the genome.”
-George Church, Professor of Genetics at Harvard Medical School
Click here to see this page in other languages: Japanese Russian

WHAT IS BIOTECHNOLOGY?
How are scientists putting nature’s machinery to use for the good of
humanity, and how could things go wrong?
Biotechnology is nearly as old as humanity itself. The food you eat and the pets
you love? You can thank our distant ancestors for kickstarting the agricultural
revolution, using artificial selection for crops, livestock, and other domesticated
animals. When Edward Jenner invented vaccines and when Alexander
Fleming discovered antibiotics, they were harnessing the power of
biotechnology. And, of course, modern civilization would hardly be imaginable
without the fermentation processes that gave us beer, wine, and cheese!
When he coined the term in 1919, the agriculturalist Karl Ereky described
‘biotechnology’ as “all lines of work by which products are produced from
raw materials with the aid of living things.” In modern biotechnology,
researchers modify DNA and proteins to shape the capabilities of living
cells, plants, and animals into something useful for humans.
Biotechnologists do this by sequencing, or reading, the DNA found in
nature, and then manipulating it in a test tube – or, more recently, inside
of living cells.
In fact, the most exciting biotechnology advances of recent times are occurring
at the microscopic level (and smaller!) within the membranes of cells. After
decades of basic research into decoding the chemical and genetic makeup of
cells, biologists in the mid-20th century launched what would become a multi-
decade flurry of research and breakthroughs. Their work has brought us the
powerful cellular tools at biotechnologists’ disposal today. In the coming
decades, scientists will use the tools of biotechnology to manipulate cells with
increasing control, from precision editing of DNA to synthesizing entire genomes
from their basic chemical building blocks. These cells could go on to
become bomb-sniffing plants, miracle cancer drugs, or ‘de-extincted’ wooly
mammoths. And biotechnology may be a crucial ally in the fight against climate
change.
But rewriting the blueprints of life carries an enormous risk. To begin with, the
same technology being used to extend our lives could instead be used to end
them. While researchers might see the engineering of a supercharged flu
virus as a perfectly reasonable way to better understand and thus fight the flu,
the public might see the drawbacks as equally obvious: the virus could escape,
or someone could weaponize the research. And the advanced genetic tools that
some are considering for mosquito control could have unforeseen effects,
possibly leading to environmental damage. The most sophisticated
biotechnology may be no match for Murphy’s Law.
While the risks of biotechnology have been fretted over for decades, the
increasing pace of progress – from low cost DNA sequencing to rapid gene
synthesis to precision genome editing – suggests biotechnology is entering a
new realm of maturity regarding both beneficial applications and more
worrisome risks. Adding to concerns, DIY scientists are increasingly taking
biotech tools outside of the lab. For now, many of the benefits of biotechnology
are concrete while many of the risks remain hypotheticals, but it is better to be
proactive and cognizant of the risks than to wait for something to go wrong first
and then attempt to address the damage.

HOW DOES BIOTECHNOLOGY HELP

US?
Satellite images make clear the massive changes that mankind has made to the
surface of the Earth: cleared forests, massive dams and reservoirs, millions of
miles of roads. If we could take satellite-type images of the microscopic world,
the impact of biotechnology would be no less obvious. The majority of the food
we eat comes from engineered plants, which are modified – either via modern
technology or by more traditional artificial selection – to grow without pesticides,
to require fewer nutrients, or to withstand the rapidly changing climate.
Manufacturers have substituted petroleum-based ingredients with biomaterials
in many consumer goods, such as plastics, cosmetics, and fuels. Your laundry
detergent? It almost certainly contains biotechnology. So do nearly all of
your cotton clothes.
But perhaps the biggest application of biotechnology is in human health.
Biotechnology is present in our lives before we’re even born, from fertility
assistance to prenatal screening to the home pregnancy test. It follows us
through childhood, with immunizations and antibiotics, both of which have
drastically improved life expectancy. Biotechnology is behind blockbuster drugs
for treating cancer and heart disease, and it’s being deployed in cutting-edge
research to cure Alzheimer’s and reverse aging. The scientists behind the
technology called CRISPR/Cas9 believe it may be the key to safely editing DNA
for curing genetic disease. And one company is betting that organ transplant
waiting lists can be eliminated by growing human organs in chimeric pigs.

WHAT ARE THE RISKS OF

BIOTECHNOLOGY?
Along with excitement, the rapid progress of research has also raised questions
about the consequences of biotechnology advances. Biotechnology may carry
more risk than other scientific fields: microbes are tiny and difficult to detect,
but the dangers are potentially vast. Further, engineered cells could divide on
their own and spread in the wild, with the possibility of far-reaching
consequences. Biotechnology could most likely prove harmful either through the
unintended consequences of benevolent research or from the purposeful
manipulation of biology to cause harm. One could also imagine messy
controversies, in which one group engages in an application for biotechnology
that others consider dangerous or unethical.

1. Unintended Consequences
Sugarcane farmers in Australia in the 1930’s had a problem: cane beetles were
destroying their crop. So, they reasoned that importing a natural predator, the
cane toad, could be a natural form of pest control. What could go wrong? Well,
the toads became a major nuisance themselves, spreading across the continent
and eating the local fauna (except for, ironically, the cane beetle).
While modern biotechnology solutions to society’s problems seem much more
sophisticated than airdropping amphibians into Australia, this story should serve
as a cautionary tale. To avoid blundering into disaster, the errors of the past
should be acknowledged.
 In 2014, the Center for Disease Control came under scrutiny
after repeated errors led to scientists being exposed to Ebola, anthrax, and
the flu. And a professor in the Netherlands came under fire in 2011 when his
lab engineered a deadly, airborne version of the flu virus, mentioned above,
and attempted to publish the details. These and other labs study viruses or
toxins to better understand the threats they pose and to try to find cures, but
their work could set off a public health emergency if a deadly material is
released or mishandled as a result of human error.

 Mosquitoes are carriers of disease – including harmful and even deadly

pathogens like Zika, malaria, and dengue – and they seem to play no
productive role in the ecosystem. But civilians and lawmakers are raising
concerns about a mosquito control strategy that would genetically alter and
destroy disease-carrying species of mosquitoes. Known as a ‘gene drive,’ the
technology is designed to spread a gene quickly through a population by
sexual reproduction. For example, to control mosquitoes, scientists could
release males into the wild that have been modified to produce only sterile
offspring. Scientists who work on gene drive have performed risk
assessments and equipped them with safeguards to make the trials as safe
as possible. But, since a man-made gene drive has never been tested in the
wild, it’s impossible to know for certain the impact that a mosquito extinction
could have on the environment. Additionally, there is a small possibility that
the gene drive could mutate once released in the wild, spreading genes that
researchers never planned for. Even armed with strategies to reverse a rogue
gene drive, scientists may find gene drives difficult to control once they
spread outside the lab.
 When scientists went digging for clues in the DNA of people who are
apparently immune to HIV, they found that the resistant individuals had
mutated a protein that serves as the landing pad for HIV on the surface of
blood cells. Because these patients were apparently healthy in the absence
 of the protein, researchers reasoned that deleting its gene in the cells of
infected or at-risk patients could be a permanent cure for HIV and AIDS. With
the arrival of the new tool, a set of ‘DNA scissors’ called CRISPR/Cas9, that
holds the promise of simple gene surgery for HIV, cancer, and many other
genetic diseases, the scientific world started to imagine nearly infinite
possibilities. But trials of CRISPR/Cas9 in human cells have produced
troubling results, with mutations showing up in parts of the genome that
shouldn’t have been targeted for DNA changes. While a bad haircut might be
embarrassing, the wrong cut by CRISPR/Cas9 could be much more serious,
making you sicker instead of healthier. And if those edits were made to
embryos, instead of fully formed adult cells, then the mutations could
permanently enter the gene pool, meaning they will be passed on to all
future generations. So far, prominent scientists and prestigious journals are
calling for a moratorium on gene editing in viable embryos until the risks,
ethics, and social implications are better understood.

2. Weaponizing Biology
The world recently witnessed the devastating effects of disease outbreaks, in
the form of Ebola and the Zika virus – but those were natural in origin. The
malicious use of biotechnology could mean that future outbreaks are started on
purpose. Whether the perpetrator is a state actor or a terrorist group, the
development and release of a bioweapon, such as a poison or infectious disease,
would be hard to detect and even harder to stop. Unlike a bullet or a bomb,
deadly cells could continue to spread long after being deployed. The US
government takes this threat very seriously, and the threat of bioweapons to
the environment should not be taken lightly either.
Developed nations, and even impoverished ones, have the resources and know-
how to produce bioweapons. For example, North Korea is rumored to have
assembled an arsenal containing “anthrax, botulism, hemorrhagic fever, plague,
smallpox, typhoid, and yellow fever,” ready in case of attack. It’s not
unreasonable to assume that terrorists or other groups are trying to get their
hands on bioweapons as well. Indeed, numerous instances of chemical or
biological weapon use have been recorded, including the anthrax scare shortly
after 9/11, which left 5 dead after the toxic cells were sent through the mail. And
new gene editing technologies are increasing the odds that a hypothetical
bioweapon targeted at a certain ethnicity, or even a single individual like a world
leader, could one day become a reality.
While attacks using traditional weapons may require much less expertise, the
dangers of bioweapons should not be ignored. It might seem impossible to make
bioweapons without plenty of expensive materials and scientific knowledge, but
recent advances in biotechnology may make it even easier for bioweapons to be
produced outside of a specialized research lab. The cost to chemically
manufacture strands of DNA is falling rapidly, meaning it may one day be
affordable to ‘print’ deadly proteins or cells at home. And the openness of
science publishing, which has been crucial to our rapid research advances, also
means that anyone can freely Google the chemical details of deadly
neurotoxins. In fact, the most controversial aspect of the supercharged influenza
case was not that the experiments had been carried out, but that the
researchers wanted to openly share the details.
On a more hopeful note, scientific advances may allow researchers to find
solutions to biotechnology threats as quickly as they arise. Recombinant DNA
and biotechnology tools have enabled the rapid invention of new vaccines which
could protect against new outbreaks, natural or man-made. For example, less
than 5 months after the World Health Organization declared Zika virus a public
health emergency, researchers got approval to enroll patients in trials for a DNA
vaccine.

THE ETHICS OF BIOTECHNOLOGY

Biotechnology doesn’t have to be deadly, or even dangerous, to fundamentally
change our lives. While humans have been altering genes of plants and animals
for millennia — first through selective breeding and more recently with
molecular tools and chimeras — we are only just beginning to make changes to
our own genomes (amid great controversy).
Cutting-edge tools like CRISPR/Cas9 and DNA synthesis raise important ethical
questions that are increasingly urgent to answer. Some question whether
altering human genes means “playing God,” and if so, whether we should do
that at all. For instance, if gene therapy in humans is acceptable to cure disease,
where do you draw the line? Among disease-associated gene mutations, some
come with virtual certainty of premature death, while others put you at higher
risk for something like Alzheimer’s, but don’t guarantee you’ll get the disease.
Many others lie somewhere in between. How do we determine a hard limit for
which gene surgery to undertake, and under what circumstances, especially
given that the surgery itself comes with the risk of causing genetic damage?
Scholars and policymakers have wrestled with these questions for many years,
and there is some guidance in documents such as the United Nations’ Universal
Declaration on the Human Genome and Human Rights.
And what about ways that biotechnology may contribute to inequality in
society? Early work in gene surgery will no doubt be expensive – for example,
Novartis plans to charge $475,000 for a one-time treatment of their recently
approved cancer therapy, a drug which, in trials, has rescued patients facing
certain death. Will today’s income inequality, combined with biotechnology tools
and talk of ‘designer babies’, lead to tomorrow’s permanent underclass of
people who couldn’t afford genetic enhancement?
Advances in biotechnology are escalating the debate, from questions
about altering life to creating it from scratch. For example, a recently announced
initiative called GP-Write has the goal of synthesizing an entire human genome
from chemical building blocks within the next 10 years. The project organizers
have many applications in mind, from bringing back wooly mammoths to
growing human organs in pigs. But, as critics pointed out, the technology could
make it possible to produce children with no biological parents, or to recreate
the genome of another human, like making cellular replicas of Einstein. “To
create a human genome from scratch would be an enormous moral gesture,”
write two bioethicists regarding the GP-Write project. In response, the organizers
of GP-Write insist that they welcome a vigorous ethical debate, and have no
intention of turning synthetic cells into living humans. But this doesn’t
guarantee that rapidly advancing technology won’t be applied in the future in
ways we can’t yet predict.

WHAT ARE THE TOOLS OF

BIOTECHNOLOGY?
1. DNA Sequencing
It’s nearly impossible to imagine modern biotechnology without DNA
sequencing. Since virtually all of biology centers around the instructions
contained in DNA, biotechnologists who hope to modify the properties of cells,
plants, and animals must speak the same molecular language. DNA is made up
of four building blocks, or bases, and DNA sequencing is the process of
determining the order of those bases in a strand of DNA. Since the publication of
the complete human genome in 2003, the cost of DNA sequencing has dropped
dramatically, making it a simple and widespread research tool.
Benefits: Sonia Vallabh had just graduated from law school when her mother
died from a rare and fatal genetic disease. DNA sequencing showed that Sonia
carried the fatal mutation as well. But far from resigning to her fate, Sonia and
her husband Eric decided to fight back, and today they are graduate students at
Harvard, racing to find a cure. DNA sequencing has also allowed Sonia to
become pregnant, since doctors could test her eggs for ones that don’t have the
mutation. While most people’s genetic blueprints don’t contain deadly
mysteries, our health is increasingly supported by the medical breakthroughs
that DNA sequencing has enabled. For example, researchers were able to track
the 2014 Ebola epidemic in real time using DNA sequencing. And
pharmaceutical companies are designing new anti-cancer drugs targeted to
people with a specific DNA mutation. Entire new fields, such as personalized
medicine, owe their existence to DNA sequencing technology.
Risks: Simply reading DNA is not harmful, but it is foundational for all of modern
biotechnology. As the saying goes, knowledge is power, and the misuse of DNA
information could have dire consequences. While DNA sequencing alone cannot
make bioweapons, it’s hard to imagine waging biological warfare without being
able to analyze the genes of infectious or deadly cells or viruses. And although
one’s own DNA information has traditionally been considered personal and
private, containing information about your ancestors, family, and medical
conditions, governments and corporations increasingly include a person’s DNA
signature in the information they collect. Some warn that such databases could
be used to track people or discriminate on the basis of private medical records –
a dystopian vision of the future familiar to anyone who’s seen the
movie GATTACA. Even supplying patients with their own genetic information has
come under scrutiny, if it’s done without proper context, as evidenced by
the dispute between the FDA and the direct-to-consumer genetic testing service
23andMe. Finally, DNA testing opens the door to sticky ethical questions, such
as whether to carry to term a pregnancy after the fetus is found to have a
genetic mutation.

2. Recombinant DNA
The modern field of biotechnology was born when scientists first manipulated –
or ‘recombined’ – DNA in a test tube, and today almost all aspects of society are
impacted by so-called ‘rDNA’. Recombinant DNA tools allow researchers to
choose a protein they think may be important for health or industry, and then
remove that protein from its original context. Once removed, the protein can be
studied in a species that’s simple to manipulate, such as E. coli bacteria. This
lets researchers reproduce it in vast quantities, engineer it for improved
properties, and/or transplant it into a new species. Modern biomedical research,
many best-selling drugs, most of the clothes you wear, and many of the foods
you eat rely on rDNA biotechnology.
Benefits: Simply put, our world has been reshaped by rDNA. Modern
medical advances are unimaginable without the ability to study cells and
proteins with rDNA and the tools used to make it, such as PCR, which
helps researchers ‘copy and paste’ DNA in a test tube. An increasing
number of vaccines and drugs are the direct products of rDNA. For
example, nearly all insulin used in treating diabetes today is produced
recombinantly. Additionally, cheese lovers may be interested to know that
rDNA provides ingredients for a majority of hard cheeses produced in the
West. Many important crops have been genetically modified to produce
higher yields, withstand environmental stress, or grow without pesticides.
Facing the unprecedented threats of climate change, many researchers
believe rDNA and GMOs will be crucial in humanity’s efforts to adapt to
rapid environmental changes.
Risks: The inventors of rDNA themselves warned the public and their
colleagues about the dangers of this technology. For example, they feared
that rDNA derived from drug-resistant bacteria could escape from the lab,
threatening the public with infectious superbugs. And recombinant
viruses, useful for introducing genes into cells in a petri dish, might
instead infect the human researchers. Some of the initial fears were
allayed when scientists realized that genetic modification is much trickier
than initially thought, and once the realistic threats were identified – like
recombinant viruses or the handling of deadly toxins – safety and
regulatory measures were put in place. Still, there are concerns that
rogue scientists or bioterrorists could produce weapons with rDNA. For
instance, it took researchers just 3 years to make poliovirus from
scratch in 2006, and today the same could be accomplished in a matter of
weeks. Recent flu epidemics have killed over 200,000, and the malicious
release of an engineered virus could be much deadlier – especially if
preventative measures, such as vaccine stockpiles, are not in place.

3. DNA Synthesis
Synthesizing DNA has the advantage of offering total researcher control over the
final product. With many of the mysteries of DNA still unsolved, some scientists
believe the only way to truly understand the genome is to make one from its
basic building blocks. Building DNA from scratch has traditionally been too
expensive and inefficient to be very practical, but in 2010, researchers did just
that, completely synthesizing the genome of a bacteria and injecting it into a
living cell. Since then, scientists have made bigger and bigger genomes, and
recently, the GP-Write project launched with the intention of tackling perhaps
the ultimate goal: chemically fabricating an entire human genome. Meeting this
goal – and within a 10 year timeline – will require new technology and an
explosion in manufacturing capacity. But the project’s success could signal the
impact of synthetic DNA on the future of biotechnology.
Benefits: Plummeting costs and technical advances have made the goal of
total genome synthesis seem much more immediate. Scientists hope
these advances, and the insights they enable, will ultimately make it
easier to make custom cells to serve as medicines or even bomb-sniffing
plants. Fantastical applications of DNA synthesis include human cells that
are immune to all viruses or DNA-based data storage. Prof. George Church
of Harvard has proposed using DNA synthesis technology to ‘de-extinct’
the passenger pigeon, wooly mammoth, or even Neanderthals. One
company hopes to edit pig cells using DNA synthesis technology so that
their organs can be transplanted into humans. And DNA is an efficient
option for storing data, as researchers recently demonstrated when
they stored a movie file in the genome of a cell.

Risks: DNA synthesis has sparked significant controversy and ethical concerns.
For example, when the GP-Write project was announced, some criticized the
organizers for the troubling possibilities that synthesizing genomes could evoke,
likening it to playing God. Would it be ethical, for instance, to synthesize
Einstein’s genome and transplant it into cells? The technology to do so does not
yet exist, and GP-Write leaders have backed away from making human genomes
in living cells, but some are still demanding that the ethical debate happen well
in advance of the technology’s arrival. Additionally, cheap DNA synthesis could
one day democratize the ability to make bioweapons or other nuisances, as one
virologist demonstrated when he made the horsepox virus (related to the virus
that causes smallpox) with DNA he ordered over the Internet. (It should be
noted, however, that the other ingredients needed to make the horsepox virus
are specialized equipment and deep technical expertise.)
4. Genome Editing
Many diseases have a basis in our DNA, and until recently, doctors had very few
tools to address the root causes. That appears to have changed with the recent
discovery of a DNA editing system called CRISPR/Cas9. (A note on terminology –
CRISPR is a bacterial immune system, while Cas9 is one protein component of
that system, but both terms are often used to refer to the protein.) It operates in
cells like a DNA scissor, opening slots in the genome where scientists can insert
their own sequence. While the capability of cutting DNA wasn’t unprecedented,
Cas9 dusts the competition with its effectiveness and ease of use. Even though
it’s a biotech newcomer, much of the scientific community has already caught
‘CRISPR-fever,’ and biotech companies are racing to turn genome editing tools
into the next blockbuster pharmaceutical.
Benefits: Genome editing may be the key to solving currently intractable genetic
diseases such as cystic fibrosis, which is caused by a single genetic defect. If
Cas9 can somehow be inserted into a patient’s cells, it could fix the mutations
that cause such diseases, offering a permanent cure. Even diseases caused by
many mutations, like cancer, or caused by a virus, like HIV/AIDS, could be
treated using genome editing. Just recently, an FDA panel recommended a gene
therapy for cancer, which showed dramatic responses for patients who had
exhausted every other treatment. Genome editing tools are also used to make
lab models of diseases, cells that store memories, and tools that can detect
epidemic viruses like Zika or Ebola. And as described above, if a gene drive,
which uses Cas9, is deployed effectively, we could eliminate diseases such as
malaria, which kills nearly half a million people each year.
Risks: Cas9 has generated nearly as much controversy as it has excitement,
because genome editing carries both safety issues and ethical risks. Cutting and
repairing a cell’s DNA is not risk-free, and errors in the process could make a
disease worse, not better. Genome editing in reproductive cells, such as sperm
or eggs, could result in heritable genetic changes, meaning dangerous
mutations could be passed down to future generations. And some warn of
unethical uses of genome editing, fearing a rise of ‘designer babies’ if parents
are allowed to choose their children’s traits, even though there are currently no
straightforward links between one’s genes and their intelligence, appearance,
etc. Similarly, a gene drive, despite possibly minimizing the spread of certain
diseases, has the potential to create great harm since it is intended to kill or
modify an entire species. A successful gene drive could have unintended
ecological impacts, be used with malicious intent, or mutate in unexpected
ways. Finally, while the capability doesn’t currently exist, it’s not out of the
realm of possibility that a rogue agent could develop genetically selective
bioweapons to target individuals or populations with certain genetic traits.

RECOMMENDED REFERENCES
Videos
  Prof. Marc Lipsitch: Risks and Benefits of Gain-of-Function
Experiments in Potentially Pandemic Pathogens
 Cathal Garvey: Bringing Biotechnology into the Home (TEDx Talk): In
this TEDx talk, Cathal Garvey reviews the benefits of biotechnology
and introduces consumer biotechnologies in development; such as
bioprinters, customized pets, downloadable DNA, and biochips.
 Nina Tandon: Caring for Engineered Tissue (TED Talk): In this TED
talk Nina Tandon talks about simple but powerful methods of caring for
artificially grown cells by copying their natural environment.
 Gregory Stock: To Upgrade is Human (TED Talk): Biotech ethicist
Gregory Stock talks about new, more meaningful (and controversial)
technologies, like customizable babies, whose adoption might drive
human evolution.
 Richard Resnick: Welcome to the Genomic Revolution (TEDx Talk): In
this accessible talk from TEDxBoston, Richard Resnick shows how
cheap and fast genome sequencing is about to turn health care (and
insurance, and politics) upside down.
 Ellen Jorgensen: Biohacking – You Can Do It Too (TED Talk): In this
TED talk, Ellen Jorgensen introduces us to the biohacking community
and reviews common misconceptions about the dangers of biohacking.
Research Papers
 Potential Biohazards of Recombinant DNA Molecules
 Climate Change and its Effect in Agriculture
 Current CRISPR gene drive systems are likely to be highly invasive
in wild populations
 Bioweapons, Biodiversity, and Ecocide: Potential Effects of
Biological Weapons on Biological Diversity
 An analysis of gene drive risks and safeguards
 Gene Drive FAQ
 Bruce Schneier – Resources on Existential Risk, p. 103
Books
 Biotechnology for Beginners: An overview of biotechnology for
beginners and lay readers. Includes a wide array of biotech sciences
such as: genetics, immunology, biochemistry, agronomy, food science,
and animal science.
 Biotechnology and the Human Good
 Fighting for the Future of Food
 Introduction to Biotechnology
 Our Posthuman Future: Consequences of the Biotechnology
Revolution

Informational Documents
  What is CRISPR-Cas9?
 FAQs: Gene drives
 What is PCR (polymerase chain reaction)?
 DNA Databases and Human Rights
 What Exactly Is Synthetic Biology?
 GP-write Announces ‘Ultra-safe Cells’ as Featured Community
Project
 Summary of historical attacks using chemical or biological weapons
 National Biodefense Analysis and Countermeasures Center
 Universal Declaration on the Human Genome and Human Rights

Articles

 Designer babies: an ethical horror waiting to happen?

 Scientists program cells to remember and respond to series of
stimuli
 Should We Synthesize a Human Genome?
 As D.I.Y. Gene Editing Gains Popularity, ‘Someone Is Going to Get
Hurt’
 DNA could store all of the world’s data in one room
 Researchers Say They Created a ‘Synthetic Cell’
 Asilomar 1975: DNA modification secured
 Scientists Seek Moratorium on Edits to Human Genome That Could
Be Inherited
 What Is Personalized Medicine?
 You’re Only Human, But Your Kids Could Be So Much More
 Using CRISPR, scientists efficiently edit genome of viable human
embryos
 First human-pig ‘chimera’ created in milestone study
 Cheap DNA Sequencing Is Here. Writing DNA Is Next
Organizations
 Cambridge Working Group: Works to address the risks of Potential
Pandemic Pathogen research through promoting public understanding,
risk assessment and regulation of such research.
 etc Group: Works to address the socioeconomic and ecological
issues surrounding new technologies (especially agriculture) that
could have an impact on the world’s poorest and most vulnerable
people.
 American Biological Safety Association (ABSA): Promotes biosafety
as a scientific discipline through forums and peer-reviewed journals for
biosafety professionals throughout the world.
 Biomedical Advanced Research and Development Authority
(BARDA): Develops and procures needed medical countermeasures
(MCMs), including vaccines, therapeutics, diagnostics, and non-
pharmaceutical countermeasures, against a broad array of public
health emergencies in the US.
 Biotechnology Industry Organization (BIO): A trade association
representing biotechnology companies, academic institutions, state
biotechnology centers, and related organizations around the world.
Researches and developes innovative healthcare, agriculturual,
industrial, and environmental biotechnology products.
 Center for Advanced Biotechnology and Medicine: Conducts
biomedical and biotech research and development to improve human
health.
 Center for Biodefense and Emerging Infectious Diseases (CBEID):
Addresses and researches important issues in the protection of the US
from biological threats, including bioterrorism, biological warfare, and
tropical infectious diseases.
 Center for Infectious Disease Research and Policy (CIDRAP): Works
to prevent illness and death from infectious disease threats through
research by implementing real world practical applications, policies,
and solutions.
 Center for International Security and Cooperation: Stanford
University’s hub for researchers working together to tackle some of the
world’s most pressing security and international cooperation issues;
and to influence the policymaking agenda in the United States and
abroad to help build a safer world.
 Center for Policy on Emerging Technologies (C-PET): A wide network
of knowledgeable professionals who identify, clarify, and prioritize the
big questions raised in a future perspective to cultivate a context
within which solutions can be developed.
 Center for Strategic and International Studies (CSIS): A bipartisan
organization that conducts research and analysis, and develops policy
initiatives with a future outlook, to help decision-makers chart a
course toward a better world.
 Centers for Disease Control and Prevention (CDC): The United
States government’s center for research, analysis, and detection of
new and emerging global health threats. Promotes healthy and safe
behaviors, communities, and environments.
 Centre for Cellular and Molecular Platforms (C-CAMP): A research
and development center in India which enables bioscience research
and entrepreneurship by providing research, development, training, and
service in biotechnology platforms.
 Centre for the Study of Existential Risk: A multidisciplinary research
center dedicated to the study and mitigation of risks that could lead to
human extinction.
 Chemical Biological Incident Response Force (CBIRF): Responds to
chemical, biological, radiological, nuclear, or high yield explosive
events in order to assist local, state, or federal agencies in
consequence management.
 Chinese Center for Disease Control and Prevention (China CDC): A
nonprofit institution that works in the fields of disease control and
prevention, and public health management.
 Defence Advanced Research Projects Agency (DARPA) – Biological
Technologies Office: Researches and designs breakthrough
technologies for nation security.
 Defence Threat Reduction Agency (DTRA): The U.S. Department of
Defense’s official Combat Support Agency for countering weapons of
mass destruction.
 EcoHealth Alliance: An international organization of scientists
dedicated to the conservation of biodiversity that researches the
relationships between wildlife, ecosystems, and human health.
 Emerging Pandemic Threats (EPT) Program: Monitors and increases
local capacities of geographic hot spots to identify the emergence of
new infectious diseases in high-risk wildlife that could pose a major
threat to human health.
 Federation of American Scientists (FAS): Provides a scientific
analysis of and solutions to protect against catastrophic threats to
national and international security.
 Foresight Institute: A think tank and public interest organization
focused on transformative future technologies. Discovers and promotes
the technological benefits, and helps avoid the dangers of
nanotechnology, AI, biotech, and other similar life-changing
developments.
 Global Catastrophic Risk Institute (GCRI): A think tank leading
research, education, and professional networking on global
catastrophic risk.
 Intelligence: Collects and conveys essential information the
President and the members of policymaking, law enforcement, and
military communities require to execute their appointed duties.
 International Federation of Biosafety Associatons (IFBA): Supports
and promotes biosafety on a national and international level through
collaboration among national and regional biosafety organizations
worldwide.
 International Geosphere-Biosphere Programme (IGBP): Studies the
global-scale and regional-scale interactions between Earth’s biological,
chemical, and physical processes and their interactions with human
systems.
 Lawrence Livermore National Laboratory (LLNL): Applies
multidisciplinary science and technology to anticipate, innovate, and
deliver responsive solutions to complex global security needs.
 Lifeboat Foundation: An organization dedicated to encouraging
scientific advancements while helping humanity survive existential
risks and possible misuse of increasingly powerful technologies.
 Middle East Consortium on Infectious Disease Surveillance
(MECIDS): Advances the capabilities for early infectious disease and
food-borne illness prevention, detection, control, and response
between its member countries of Israel, Jordan, and Palestine.
 National Institute of Allergy and Infectious Diseases (NIH): Conducts
and supports basic and applied research to better understand, treat,
and prevent infectious, immunologic, and allergic diseases.
 New England Complex Systems Institute (NECSI): An independent
academic research and educational institution that develops complex
systems and its applications to study how interactions within a system
lead to its behavioral patterns, and how the system interacts with its
environment.
 Nuclear Threat Initiative (NTI): A nonpartisan organization that
focuses on strengthening global security by reducing the risk of using
and preventing the spread of nuclear, biological, and chemical
weapons.
 Resilience Alliance: A research organization comprised of scientists
and practitioners from many disciplines who collaborate to explore the
dynamics of social-ecological systems.
 Skoll Global Threats Fund: Seeks solutions, strengthens alliances,
and spurs actions needed to confront the global threats imperiling
humanity.
 Society for Risk Analysis (SRA): A multidisciplinary,
interdisciplinary, scholarly, international society that provides an open
forum for all those who are interested in risk analysis.
 The Biosecurity Engagement Program (BEP): Engages with Life
Scientists to combat biological threats worldwide by providing
assistance to improve biosecurity, biosafety, pathogen surveillance,
and infectious disease surveillance and response.
 The Center for Bioethics and Human Dignity (CBHD)
  The Club of Rome: An informal association of long-term thinkers
interested in and concerned with the future of humanity and the
planet.
 The Genome Analysis Centre (TGAC): A research institute focused
on the application of genomics and bioinformatics to advance plant,
animal, and microbial research to promote a sustainable bioeconomy.
 The Institute for Ethics and Emerging Technologies (IEET): A think
tank which promotes ideas about how technological progress can
increase freedom, happiness, and human flourishing in democratic
societies.
 The Program on Science and Global Security (SGS): Carries out
research, policy analysis, education, and training in nuclear arms
control and nonproliferation, and provides research and administrative
support to the International Panel on Fissile Materials.
 U.S. Department of Defense (DOD): Provides military forces needed
to deter war and to protect the security of the United States.
 U.S. Department of Homeland Security (DHS) – National Biodefense
Analysis and Countermeasures Center (NBACC): A national resource
used to understand the scientific basis of the risks posed by biological
threats and to attribute their use in bioterrorism or biocrime events.
 UPMC Center for Health Security: Protects people’s health from the
consequences of epidemics and disasters, and ensures that
communities are resilient to major challenges.
 Wilson Center: A non-partisan policy forum and a leading institution
for tackling global issues through independent research and open
dialogue to inform actionable ideas for Congress, the Administration,
and the broader policy community.
 X-events: A research institute that works with the theory of surpize,
studies extreme events, experiments different anticipation methods,
and develops tools for research and decision making.
 Prevent Project: PREVENT works to reduce the risks that zoonoses
—diseases that move between animals and humans—can pose to
public health.

The organizations above all work on biotechnology issues, though many

cover other topics as well. This list is undoubtedly incomplete; please
contact us to suggest additions or corrections.

Special thanks to Jeff Bessen for his help researching and writing this page.
Globalization in
Biotechnology, Ernst &
Young report (cont)
SHARE PRINT

As promised here is the post on globalization, one of the three major trends driving the biotechnology
industry to reinvent itself, according to Ernst and Young 2008 biotechnology report. Pharma and biotech
companies are taking advantage of the ‘flattenning world,’ as described by Colin Powel in his keynote
speech, and jumping into the globalization trend in the hopes of finding new opportunities for cutting
costs and for increasing profits by selling to underserved markets.

In order to cut costs but not production, many Western biotechnology and pharma companies are laying
off domestic workers, but also hiring new workers in emerging markets due to their willingness to work
for significantly lower salaries without compromising education and/or productivity levels. The
convention’s panel on the EO 2008 global biotechnology report highlights this hiring practice as a
temporary solution for cost cutting and for the need to expand globally, predicting that the workers from
current emerging markets will eventually raise their salaries as competition for their work increases.

From the perspective of the current emerging markets, the new hiring trend is also only a temporary fix
for their desire and need to grow internationally. As new markets continue to emerge competition within
the emerging markets will increase. The West will have an ever-growing pool of highly trained employees
willing to work for potentially even lower salaries, making a relationship based solely on this factor
somewhat unsustainable. In an effort to forge more sustainable relationships, emerging markets are
moving beyond offering ‘cheaper labor’ and large bodies of “clinically naïve patient populations” to
“acquiring assets from, or allying with, western companies.” Ultimately, this will then challenge and
increase competition for western markets. It is worth noting that being tempted by ‘clinically naïve
patient populations,’ may not be the most ethical of temptations, particularly since one of the big
challenges in pharmaceutical R&D is obtaining a quality informed consent. Balancing the need and desire
for innovation and for respecting individuals and communities is a continuous challenge. Even NASA
struggles with finding the balance between its drive for scientific advancement and its responsibilities to
its employees and communities.

A more sustainable and obvious approach regarding globalization for the biotechnology industry,
involves western markets seeing emerging markets not solely as opportunities for ‘cheaper labor’ but as
emerging consumer-bases, according to the report. Since these emerging consumer bases cannot yet
afford to pay western prices for products, the report suggests that western companies “work
collaboratively with innovative companies in emerging markets to develop products designed specifically
for local conditions.”

As you can see the convention was filled with information and inspiration for professionals from all
niches within the biotechnology field, from the scientists to the executive and the salesmen to a
bioethicist. It was wonderful to see Vertex Pharmaceuticals taking the lead in creating awareness of the
ethical challenges facing the biotech industry and courageously attempting to meet those challenges, by
sponsoring the convention’s bioethics track! Thank you to Navigant Consulting, CRT-Tanaka and Nicole
Ruediger at BIO for making my participation possible. The experience was fantastic and I am already
looking forward to next year’s convention!

Sponsored by:

Ernst & Young 2008 global biotechnology report “Beyond Borders”.

Ibid pg. 8
Growth and Colony
Characteristics of Bacteria
and Fungi
Bacteria grow in both solid and liquid medium, but identification will be easy on
the solid medium.

Growth and Colony Characteristics of Bacteria and Fungi

In the previous section we have learned the various types of media and specific
purpose of each medium. Morphology is the basic criteria for the isolation,
identification and classification of microorganisms. Colony characteristics are the
basic tool in the field of taxonomy.

Bacteria grow in both solid and liquid medium, but identification will be easy on
the solid medium. In solid medium bacteria form colonies. In liquid medium
growth of bacteria are generally not distinctive because there is uniform turbidity
or sediment at the bottom or pellicle is formed on the surface.

Some basic attributes such as shape, size, colour, pigmentation, texture, elevation
and margin of the bacterial colony in the growth medium are explained below.

Colony Morphology of Bacteria on Solid Media

Shape: The shape of colony may be circular, irregular, filamentous, rhizoid.

Elevation: It is the side view of the colony. It may be flat, raised, umbonate (having
a knobby protuberance) crateriform, convex pulvinate (cushion shaped)

Margin: The margin of the bacterial colony may be entire (smooth) irregular,
undulate (ovary), lobate, curled, filiform. The irregular shape of the colony give
irregular margin (Figure 5.13).
Colony Size: The diameter of the colony is measured in millimeter. It is described
in relative terms such as pinpoint, small, medium and large.

Appearance of colony on the surface: The bacterial colonies are frequently shiny/
smooth in appearance. Colonies may be veined, rough, dull, wrinkled, or
glistening.

Texture of the colony: Texture means consistency of the bacterial growth. It may
be dry, moist, mucoid, brittle (dry breaks apart), viscid (sticks to loop, hard to get
off), viscous, or butyrous (buttery).

Opacity of the bacterial Colony: Colonies may exhibit different optical density. It
may be transparent (clear), opaque (not clear), translucent (almost clear), or
iridescent (changing colour in reflected light).

Colony Odour: Some bacteria produce a characteristic smell, which sometimes

helps in identifying the bacteria. Actinomycetes produce an earthy odour which is
quite often experienced after rain. Many fungi produce fruity smell
while Escherichia coli produce a faecal odour.
Colony Colour: Many bacteria develop colonies which are pigmented.(Table 5.3)
Some bacteria produce and retain water insoluble pigments and the colonies
appear coloured by taking the pigment intracellularly (Figure 5.14). But some
bacteria produce water soluble pigment which diffuse into the surrounding agar.
Example: Pyocyanin pigment of Pseudomonas aeruginosa is a water
soluble pigment and give blue colour to the medium.
Nature of bacterial growth in liquid medium

 If the entire broth appears milky and cloudy it is called turbid.

 If deposit of cells are present at the bottom of the tube, the term sediment is
used.

 If the bacterial growth forms a continous or interrupted sheet over the broth it
is called pellicle (Figure 5.15).

Growth and Colony Characteristics of Fungi

Fungi are eukaryotic organisms. They exist in both unicellular-yeast like form and
in filamentous multicellular hyphae or mold form and some are dimorphic.
Generally fungi prefer to grow in the acidic medium.
Sabourad Dextrose Agar (SDA) plates and Potato Agar plates are used for general
cultivation of fungi. The acidic nature of SDA agar reduce the growth of bacteria.

The characters to be noticed in colony of fungi are colour of the surface and
reverse of the colony, texture of the surface (powdery, granular, ecolly, cottony,
velvety or glabrous), the topography (elevation, folding, margin) and the rate of
growth.

Growth and colony characteristics of yeast Candida

Yeasts are grown on Sabourad Dextrose Agar aerobically. Yeasts grow as typical
pasty colonies and give out yeasty odour. The colony morphology varies with
different yeasts. Yeasts colonies generally have smooth texture and are larger than
bacterial colonies on SDA medium (Figure 5.16a).
Growth and Colony characteristics of mold Mucor

The genus Mucor is typically coloured white to brown or grey and is fast growing.
Older colonies become grey to brown due to the development of spores. (Figure
5.16b).
Colony Morphology of Bacteria;
How to describe Bacterial
Colonies?
September 8, 2013 tankeshwar Bacteriology, Laboratory Diagnosis of Bacterial
Disease 10

Characteristics of Bacterial colonies

This post was most recently updated on May 9th, 2016

Bacteria grow on solid media as colonies. A colony is defined as a visible mass of

microorganisms all originating from a single mother cell. Key features of these
bacterial colonies serve as an important criteria for their identification.
Characteristics of Bacterial colonies

Colony morphology can sometimes be useful in bacterial identification. Colonies

are described as to such properties as size, shape, texture, elevation,
pigmentation, effect on growth medium. In this blog post you will find common
criteria that are used to characterize the bacterial growth.

1. Colony Shape: It includes form, elevation and margin of the bacterial

colony.
1. Form of the bacterial colony: – The form refers to the shape of the
colony. These forms represent the most common colony shapes you
 are likely to encounter. e.g. Circular, Irregular, Filamentous, Rhizoid

etc.
2. Elevation of bacterial colony: This describes the “side view” of a
colony. These are the most common. e.g. Flat, raised, umbonate
(having a knobby protuberance), Crateriform, Convex, Pulvinate
(Cushion-shaped)
3. Margin of bacterial colony: The margin or edge of a colony may be
an important characteristic in identifying an organisms. Common
examples are Entire (smooth), irregular, Undulate (wavy), Lobate,
Curled, Filiform etc.
Colonies that are irregular in shape and/or have irregular margins are
likely to be motile organisms. Highly motile organism swarmed over
the culture media. Such as Proteus spp.
4. Size of the bacterial colony: The size of the colony can be a useful
characteristic for identification. The diameter of a representative
colony may be measured in millimeters or described in relative terms
such as pin point, small, medium, large. Colonies larger than about 5
mm are likely to be motile organisms.
Appearance of the colony surface: Bacterial colonies are frequently shiny and
smooth in appearance. Other surface descriptions might be: dull (opposite of
glistening), veined, rough, wrinkled (or shriveled), glistening.

Mixed growth of mucoid Lactose fermenting

colonies and NLF colonies in MacConkey Agar
Consistency/Texture : Several terms that may be appropriate for describing the
texture or consistency of bacterial growth are: dry, moist, viscid (sticks to loop,
hard to get off), brittle/friable (dry, breaks apart), mucoid (sticky, mucus-like)
Color of the colonies (pigmentation): Some bacteria produce pigment when
they grow in the medium e.g., green pigment produces by Pseudomonas
aeruginosa, buff colored colonies of Mycobacterium tuberculosis in L.J medium, red
colored colonies of Serratia marcescens.
Opacity of the bacterial colony: Is the colony transparent (clear), opaque (not
transparent or clear), translucent (almost clear, but distorted vision–like looking
through frosted glass), iridescent (changing colors in reflected light).

Some important terminologies

Draughtsman colonies

Draughtmans colonies of S. pneumoniae

Young colonies of Streptococcus pneumoniae (pneumococci) have raised center

but as the culture ages, they become flattened, with a depressed central part
and raised edges giving them a ringed appearance also known as ‘draughtsman
colonies’.
Share this:
 Difference Between Bacterial and
Fungal Colonies
June 26, 2018

by Lakna

4 min read

The main difference between bacterial and fungal colonies is that bacterial
colonies are small, smooth or rough colonies with defined margins while
fungal colonies are large colonies with a fuzzy appearance. Furthermore,
bacterial colonies look wet and shiny while fungal colonies are powder-like.

Bacterial and fungal colonies refer to the appearance of growth

of bacteria and fungi on a solid, nutrient agar. Colony morphology is the area that
studies the characteristics of colonies. Characteristics of colonies include colony
form, elevation, margin, surface, capacity, and chromogenesis.

Key Areas Covered

1. What are Bacterial Colonies
– Definition, Facts, Appearance
2. What are Fungal Colonies
– Definition, Facts, Appearance
3. What are the Similarities Between Bacterial and Fungal Colonies
– Outline of Common Features
4. What is the Difference Between Bacterial and Fungal Colonies
– Comparison of Key Differences
Key Terms: Bacterial Colonies, Form, Fungal Colonies, Size, Texture
What are Bacterial Colonies
Bacterial colonies are a mass of bacterial cells divided from a single bacterium on
the solid medium. All bacteria within the colony are genetically alike and can be
called a clone. Most bacterial colonies are circular or irregular in shape. Some of
them are actinomycetes filamentous or rhizoid. Most bacterial colonies are tiny and
less than 1 mm in diameter. Hence, they are called punctiform (pin-point). They
have a defined margin as well. The microscope can be used in order to observe the
edge. The colour of the colony varies with the species. They can be white, buff, red,
purple, etc.

Figure 1: Yersinia enterocolitica Colonies

The surface of the bacterial colonies can be smooth, glistening, rough, dull, or
rugose (wrinkled). The texture of them can be butyrous (buttery), viscid (sticks to
loop, hard to get off), brittle/friable (dry, breaks apart) or mucoid (sticky, mucus-
like).

What are Fungal Colonies

Fungal colonies are either a mass of cells of unicellular fungi or fungal hyphae of
multicellular fungi. Fungal colonies made up of unicellular fungi resemble bacterial
colonies on solid media. However, fungal colonies made up of multicellular fungi
are fuzzy. The form of these colonies can be either filamentous or rhizoid. They
often appear in whitish gray colour. They turn into different colours from
the centre with the growth of the colony.
 Figure 2: Yarrowia lipolytica Colonies

Similarities Between Bacterial and Fungal

Colonies
 Bacterial and fungal colonies are the growth forms on solid nutrient agar.
 They exhibit specific characteristics to the organism that forms the colony.
 The colour of the colony depends on the type of microorganism that forms the
colony.
 Both can be used in the identification of the microorganisms.
Difference Between Bacterial and Fungal
Colonies
Definition
Bacterial colonies refer to a visible mass of cells arisen from a single bacterial cell
while fungal colonies refer to a mass of thread-like hyphae.

Unicellular or Multicellular
Bacterial colonies are made up of unicellular organisms while fungal colonies can
be made up of either unicellular or multicellular organisms.

Made up of
Bacterial colonies are made up of a mass of bacterial cells resulted from the
division of a single bacterium while fungal colonies are made up of fungal hyphae
produced by a single spore.

Size of the colony

Bacterial colonies are small while most of the fungal colonies that develop hyphae
are large.

Appearance
Bacterial colonies have a smooth or rough appearance while fungal colonies have a
fuzzy appearance. This is one main difference between bacterial and fungal
colonies.

Margin
Bacterial colonies have a defined margin while fungal colonies have a filamentous
margin.
Texture
Bacterial colonies look wet and shiny while fungal colonies are powder-like.

Form
Bacterial colonies are circular or irregular while fungal colonies are filamentous or
rhizoid.

pH
Bacterial colonies grow within the pH 5-9 (optimum 7) while fungal colonies grow
within the pH 5-6.

Conclusion
Bacterial colonies are small, mostly rounded, shiny colonies made up of a bacterial
clone. On the other hand, fungal colonies are large, fuzzy colonies mostly formed
from the fungal hyphae. The main difference between bacterial and fungal colonies
is the form and the texture of colonies.

Reference:
1. “8: Bacterial Colony Morphology.” Biology LibreTexts, Libretexts, 3 Jan.
2018, Available Here
2. Moore, David, et al. “4.6 Morphological Differentiation of Fungal Colonies.” 21st
Century Guidebook to Fungi, 1 Dec. 2008, Available Here
Image Courtesy:
1. “Yersinia enterocolitica colonies Hektoen” By CDC – This media comes from the
Centers for Disease Control and Prevention’s Public Health Image Library (PHIL),
with identification number #6707. (Public Domain) via Commons Wikimedia
2. “Yarrowia lipolytica YGC colonies 56” By A doubt – Own work (CC BY-SA 4.0)
via Commons Wikimedia
Save
SCTS

1. OWNERSHIP OF THE INFORMATION YOU POST

Who owns the copyright?

Copyrights are generally owned by the people who create the works of expression,
with some important exceptions: If a work is created by an employee in the course of his
or her employment, the employer owns the copyright.

Copyright Ownership: Who Owns What?

As a general rule, the copyright in a work is initially owned by the work’s creator, but this
isn’t always the case.

Contents
 1 What are the exceptions to the rule that the creator of a work owns the
copyright?
 2 Who owns the copyright in a joint work?
 3 Can two or more authors provide contributions to a single work without being
considered joint authors for copyright purposes?
 4 What rights do copyright owners have under the Copyright Act?
 5 Can a copyright owner transfer some or all of his specific rights?
What are the exceptions to the rule that the creator of a work owns the copyright?

Copyrights are generally owned by the people who create the works of expression, with some
important exceptions:

 If a work is created by an employee in the course of his or her employment, the employer owns
the copyright.
 If the work is created by an independent contractor and the independent contractor signs a
written agreement stating that the work shall be “made for hire,” the commissioning person or
organization owns the copyright only if the work is (1) a part of a larger literary work, such as an
article in a magazine or a poem or story in an anthology; (2) part of a motion picture or other
audiovisual work, such as a screenplay; (3) a translation; (4) a supplementary work such as an
afterword, an introduction, chart, editorial note, bibliography, appendix or index; (5) a
compilation; (6) an instructional text; (7) a test or answer material for a test; or (8) an atlas.
Works that don’t fall within one of these eight categories constitute works made for hire only if
created by an employee within the scope of his or her employment.

 If the creator has sold the entire copyright, the purchasing business or person becomes the
copyright owner.
Who owns the copyright in a joint work?

When two or more authors prepare a work with the intent to combine their contributions into
inseparable or interdependent parts, the work is considered joint work and the authors are
considered joint copyright owners. The most common example of a joint work is when a book or
article has two or more authors. However, if a book is written primarily by one author, but
another author contributes a specific chapter to the book and is given credit for that chapter, then
this probably wouldn’t be a joint work because the contributions aren’t inseparable or
interdependent.

The U.S. Copyright Office considers joint copyright owners to have an equal right to register and
enforce the copyright. Unless the joint owners make a written agreement to the contrary, each
copyright owner has the right to commercially exploit the copyright, provided that the other
copyright owners get an equal share of the proceeds.

Can two or more authors provide contributions to a single work without being considered
joint authors for copyright purposes?

Yes. If at the time of creation, the authors did not intend their works to be part of an inseparable
whole, the fact that their works are later put together does not create a joint work. Rather, the
result is considered a collective work. In this case, each author owns a copyright in only the
material he or she added to the finished product. For example, in the 1980s, Vladimir writes a
famous novel full of complex literary allusions. In 2018, his publisher issues a student edition of
the work with detailed annotations written by an English professor. The student edition is a
collective work. Vladimir owns the copyright in the novel, but the professor owns the
annotations.

What rights do copyright owners have under the Copyright Act?

Copyright grants a number of exclusive rights to copyright owners, including:

 reproduction right — the right to make copies of a protected work

 distribution right — the right to sell or otherwise distribute copies to the public

 right to create adaptations (called derivative works) — the right to prepare new works based on
the protected work, and

 performance and display rights — the rights to perform a protected work (such as a stage play)
or to display a work in public. This bundle of rights allows a copyright owner to be flexible when
deciding how to realize a commercial gain from the underlying work; the owner may sell or
license any of the rights.

Can a copyright owner transfer some or all of his specific rights?

Yes. When a copyright owner wishes to commercially exploit the work covered by the copyright,
the owner typically transfers one or more of these rights to the person or entity who will be
responsible for getting the work to markets, such as a book or software publisher. It is also
common for the copyright owner to place some limitations on the exclusive rights being
transferred. For example, the owner may limit the transfer to a specific period of time, allow the
right to be exercised only in a specific part of the country or world, or require that the right is
exercised only through certain media, such as hardcover books, audiotapes, magazines or
computers.

If a copyright owner transfers all of the rights unconditionally (and retains nothing), it is
generally termed an “assignment.” When only some of the rights associated with the copyright
are transferred, it is known as a “license.” An exclusive license exists when the transferred rights
can be exercised only by the owner of the license (the licensee), and no one else — including the
person who granted the license (the licensor). If the license allows others (including the licensor)
to exercise the same rights being transferred in the license, the license is said to be non-
exclusive.

The U.S. Copyright Office allows buyers of exclusive and non-exclusive copyright rights to
record the transfers in the U.S. Copyright Office. This helps to protect the buyers in case the
original copyright owner later tries to transfer the same rights to another party.

Transfers of copyright ownership are unique in one respect. Authors or their heirs have the right
to terminate any transfer of copyright ownership 35 to 40 years after it is made.

IN THIS SECTION:
 Copyright Overview (NOLO)
o Copyright FAQs

 Copyright Ownership: Who Owns What?

The content for the Copyright and Fair Use Overview section is from NOLO, with
much of it taken from the book Getting Permission (October 2016) by Richard
Stim. Thanks!

2. ACCES TO INFORMATION YOU POST OR PROVIDE

Why is the medium the message for electronic, social media?

What message does it make?

 HOW ‘THE MEDIUM IS THE MESSAGE’
WITH SOCIAL MEDIA
 Posted by Janina Bernardo
 On June 14, 2018

 1 Comments

 Blogging, Linkedin, Twitter

TwitterFacebookLinkedInBufferEmailCo
py Link
Marshall McLuhan is a Canadian professor and philosopher who was famous for his study
of media theory. He is best known for coining the expression “the medium is the message.”
Although McLuhan did not develop his theory in the digital age, his works can provide
perspective to new communication platforms such as social media. He believed that the
medium used to deliver the message has a significant effect on how the content is received
and digested.

For B2B marketing professionals, McLuhan’s ‘The Medium is the Message’ theory shows
that the manner in which a message is communicated is greatly influenced by the channel
that it is being employed. The response of the audience will depend not only on what is
being said, but the medium in which it is being delivered from. With the rising popularity of
social media platforms, the same general rule applies, and it is essential that you deploy
your message according to the nature of the platform you are using in order to be effective.
Your B2B social media marketing must carefully employ a balanced mix across multiple
channels to develop strong relationships with your audience and generate qualified leads.

We look into the 4 biggest social media platforms and your website to see how you can
apply McLuhan’s theory to benefit your business:

1. Twitter

Twitter limits users to publishing 280-character posts (up from 140) to immediately capture
attention in a concise manner. This bite-sized flow of information targets people who only
have time to skim the news with the option to click a link to read further if they find the
information interesting. Twitter is a medium made for efficiency and urgency. It lets people in
on what is happening in the world at that very moment. People who regularly check Twitter
are often in discovery mode. They are open to meeting new people and learning about new
things.
This is a good opportunity for your B2B business to reach out to your target customer. It is
easy to find them on Twitter, simply go to search.twitter.com and choose keywords that
best represent your products and services. You will immediately find a list of people talking
about the topic. Read the conversations and jump in when appropriate. But avoid being too
salesy when interacting with your audience. Your aim is to be helpful and provide value, not
deliberately trumpeting your company. Twitter is also an opportunity to showcase your
expertise in the subject matter and build a community base. If you don’t know where to
begin, it pays to visit your competitors accounts and see how they are relating to their
customers. It will give you an idea of what content and resources to share to boost your
credibility.

Periscope is a Twitter feature that you can take advantage of when you have major live
events to share with your audience. This can include product demos, talks from the
executive team or conferences that you are part of. This helps you develop stronger
relationships with your followers by giving your company a more human feel to it.

By 2019, Statistica.com projects that Twitter will have 275 million monthly active
users worldwide. In order to stand out, the key to an effective Twitter strategy is
consistency in sharing. Since decision-making in the B2B sphere takes longer, it is vital that
you communicate with your audience frequently. Twitter studies have concluded that B2B
buyers are more likely to respond to messaging after repeated exposure.

2. LinkedIn

Promoting your business on LinkedIn connotes professionalism. LinkedIn as a medium is

used for primarily business networking. Thus, much attention should be given to developing
a strong company profile that captures attention. LinkedIn offers recommendations on how
to optimize your profile. In a recent update, a company profile can now feature company
leaders, more images, videos and testimonials.

Over the years LinkedIn has developed features to help advertisers better target the right
audience. They have previously launched the LinkedIn Sales Navigator and Matched
Audiences tool to deliver higher ROI for B2B marketing campaigns.

To ride the trend towards video content, LinkedIn now allows companies to
include videos for Sponsored Content and Company Pages. These native video ads can
help you capture the attention of key decision-makers throughout the buyer’s journey.

It is often a challenge for B2B companies to leverage social media to promote content or
generate leads since most individuals use these platforms for personal activities. This is not
an issue with LinkedIn since the context in which it operates is for professional networking.
Boasting of 546 million professionals around the globe, LinkedIn is a very powerful tool and
your best bet in improving your bottomline.
3. Facebook

Compared to LinkedIn, Facebook is a platform that provides a more casual and fun social
media experience. The medium is the message of social connections. People don’t usually
go to Facebook for business purposes although more and more people look to Facebook
when they want to communicate with companies. Whether they want to ask a question or
lodge a customer complaint, Facebook messenger has been a go-to medium.

Facebook has the greatest reach compared to other social media platforms and many B2C
companies have found that it is an excellent tool for growing brand awareness. Still many
B2B companies are skeptical about its ability to deliver ROI. Admittedly, B2B advertising on
Facebook will be more complex and most B2B products and services involve lengthy sales
cycles and niche clientele. But because of the sheer data that Facebook has on its
users, ad targeting can prove to be effective. Facebook lets you gather pertinent
information, build email lists, and create a lead nurturing program.

4. Instagram

While Instagram a great platform focused on visual content, B2B companies can still
leverage the channel to build awareness and foster engagement. The medium is the
message of visual interest. Instagram provides your company the opportunity to humanize
your brand. This platform has a unique ability to connect your brand to your audience and
build relationship with them. Showcase your company values, work culture and even
satisfied customers. When you highlight things that your audience cares about, they will feel
like they have something in common with you. Remember that at the end of the day, B2B
decision-makers are humans too.

5. Websites

Your website is your most dedicated sales rep working 24/7 to promote your business. Your
website must not only be aesthetically pleasing, it should also deliver a great user
experience. It has a huge impact on the impression people will have about your company.
The medium is the message of presenting the details of your company to your audience.

Your company’s website should offer adequate information on the features of your
products/services as well as satisfy questions your potential customers may have about
them. Nowadays, most people have very limited attention spans and your copy must
immediately engage and convince the reader as succinctly as possible. Don’t expect your
target audience to read though and digest long paragraphs. Offer “scannable” content and
provide downloadable assets such as white papers and case studies for serious buyers.
Focus on the customer and how it will help them solve problems and challenges.

Developing video content can also help shorten the sales cycle. According to a Google
research, 72% of B2B buyers watch videos before making purchase decisions. The
key is create a video strategy that provides information that matches every stage in the
sales funnel.

McLuhan’s theories provide marketers insights when they develop their communications
strategy. Each platform is unique. Knowing your audience will allow you to decide which
medium will be the most effective in reaching them. After all, the medium you choose will be
the message.

If you’re launching a new website or updating an existing website, download our

guide, Introduction to Website Best Practices.

This blog post was originally written on July 6th, 2016 by Tabitha David. It has since been
updated with recent information.

No such thing as free lunch

Internet is free

Advertisement gets the money

There Ain't No Such Thing as a Free Lunch

(TANSTAAFL)
REVIEWED BY ALEXANDRA TWIN

Updated Jun 25, 2019

What Is There Ain't No Such Thing as a Free Lunch (TANSTAAFL)?

"There ain't no such thing as a free lunch" (TANSTAAFL), also known as "there is
no such thing as a free lunch" (TINSTAAFL), is an expression that describes the
cost of decision-making and consumption. The expression conveys the idea that
things appearing free always have a cost or that nothing in life is truly free.

How TANSTAAFL Works

The TANSTAAFL concept is important to consider when making various types of
decisions, whether they be financial or lifestyle. The concept can help consumers
make wiser decisions by considering all indirect and direct costs and
externalities.

In economics, TANSTAAFL describes the concept of opportunity costs, which

states that for every choice made, there is an alternative not chosen. Decision-
making requires trade-offs and assumes that there are no real free offerings in
society. For example, products and services gifted (free) to individuals are paid
for by someone else. Even when there is no one to assume the direct costs,
society bears the burden.

[Important: Even products and services given to individuals for free are not
truly free; a company or individual ultimately pays the cost.]

Understanding TANSTAAFL
The concept of TANSTAAFL is thought to have originated in 19th-century
American saloons where customers were given free lunches with the purchase of
drinks. From the basic structure of the offer, it is evident that there is a T
associated with the free lunch: the purchase of a drink.

However, there are subsequent costs resulting from the consumption of the free
lunch. Because the lunches were high in salt, customers were enticed to
purchase more drinks. So the saloons purposely offered free lunches with the
expectation that they would generate enough revenue in additional drinks to
offset the cost of the lunch. The proposal of a free good or service with the
purchase of another good or service is an oxymoronic tactic many businesses
still use to entice customers.

Example of TANSTAAFL
TANSTAAFL has been referenced many times historically in a variety of different
contexts. For example, in 1933, former New York City mayor Fiorello H. La
Guardia used the Italian phrase “È finita la cuccagna!" (translating to "no more
free lunch”) in his campaign against crime and corruption. Popular references to
the phrase can also be found in Robert Heinlein's "The Moon Is a Harsh
Mistress" as well as in Milton Friedman’s book “There Ain't No Such Thing as a
Free Lunch.”
Across different disciplines (e.g., economics, finance, statistics, etc.),
TANSTAAFL has different connotations. For example, in science, it refers to the
theory that the universe is a closed system. The idea is that a source of
something (e.g., matter) comes from a resource that will be exhausted. The cost
of the supply of matter is the exhaustion of its source.

In sports, TANSTAAFL was used to describe the health costs associated with
being great at a sport, like "no pain, no gain." Despite the different meanings, the
common factor is cost.

Special Considerations
For investments, TANSTAAFL helps to explain risk. Treasury bills (T-bill), notes,
and bonds offer a nearly risk-free return; however, the opportunity cost of
investing in one of these instruments is the foregone opportunity to invest in an
alternative, riskier investment.

As an investor moves higher on the risk spectrum, the phrase TANSTAAFL

becomes even more relevant as investors provide capital with hopes of achieving
larger gains than what less-riskier securities yield; however, this choice assumes
the cost that growth prospects may not be achieved and the investment could be
lost.

Key Takeaways
 "There ain't no such thing as a free lunch" (TANSTAAFL) is a phrase that
describes the cost of decision-making and consumption.
 TANSTAAFL suggests that items or services that appear to be free always
have a cost to someone, even if it not the individual receiving the benefit.
 In investing, buying Treasury bills is an example of someone thinking they
are getting a good deal for very little. But the tradeoff in buying Treasuries
is not being invested in higher-risk, higher-reward securities.

There ain't no such thing as a free lunch

From Wikipedia, the free encyclopedia

Jump to navigationJump to search

"No free lunch" redirects here. For the medical advocacy group, see No Free Lunch (organization).
For the theorem in mathematical optimization, see No free lunch theorem.

"There ain't no such thing as a free lunch" (alternatively, "There is no such thing as a free
lunch" or other variants) is a popular adage communicating the idea that it is impossible to get
 something for nothing. The acronyms TANSTAAFL, TINSTAAFL, and TNSTAAFL are also used.
The phrase was in use by the 1930s, but its first appearance is unknown. [1] The "free lunch" in the
saying refers to the 19th-century practice in American bars of offering a "free lunch" in order to entice
drinking customers.
The phrase and the acronym are central to Robert Heinlein's 1966 science-fiction novel The Moon Is
a Harsh Mistress, which helped popularize it.[2][3] The free-market economist Milton Friedman also
increased its exposure and use[1] by paraphrasing it as the title of a 1975 book,[4] and it is used
in economics literature to describe opportunity cost.[5] Campbell McConnell writes that the idea is "at
the core of economics".[6]

Contents

 1History and usage

o 1.1"Free lunch"

o 1.2Early uses

o 1.3Popularization

o 1.4Meanings

 2See also

 3Notes

 4References

History and usage[edit]

"Free lunch"[edit]
The "free lunch" refers to the once-common tradition of saloons in the United States providing
a "free" lunch to patrons who had purchased at least one drink. Many foods on offer were high in salt
(e.g., ham, cheese, and salted crackers), so those who ate them ended up buying a lot of
beer. Rudyard Kipling, writing in 1891, noted how he
...came upon a bar-room full of bad Salon pictures, in which men with hats on the backs of their
heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You
paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man
can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if
ever you are stranded in these parts.[7]
TANSTAAFL, on the other hand, indicates an acknowledgement that in reality a person or a society
cannot get "something for nothing". Even if something appears to be free, there is always a cost to
the person or to society as a whole, although that may be a hidden cost or an externality. For
example, as Heinlein has one of his characters point out, a bar offering a free lunch will likely charge
more for its drinks.[8]
Early uses[edit]

TANSTAAFL: a plan for a new economic world order. (Pierre Dos Utt, 1949)

According to Robert Caro, Fiorello La Guardia, on becoming mayor of New York in 1933, said "È
finita la cuccagna!", meaning "Cockaigne is finished" or, more loosely, "No more free lunch"; in this
context "free lunch" refers to graft and corruption. [1] The earliest known occurrence of the full phrase
(except for the "a"), in the form "There ain't no such thing as free lunch", appears as the punchline of
a joke related in an article in the El Paso Herald-Post of June 27, 1938 (and other Scripps-
Howard newspapers about the same time), entitled "Economics in Eight Words". [9][10]
In 1945, "There ain't no such thing as a free lunch" appeared in the Columbia Law Review, and
"there is no free lunch" appeared in a 1942 article in the Oelwein Daily Register (in a quote attributed
to economist Harley L. Lutz) and in a 1947 column by economist Merryle S. Rukeyser.[2][11]
In 1949, the phrase appeared in an article by Walter Morrow in the San Francisco News (published
on 1 June) and in Pierre Dos Utt's monograph TANSTAAFL: A Plan for a New Economic World
Order,[12] which describes an oligarchic political system based on his conclusions from "no free lunch"
principles.
The 1938 and 1949 sources use the phrase in relating a fable about a king (Nebuchadnezzar in Dos
Utt's retelling) seeking advice from his economic advisors. Morrow's retelling, which claims to derive
from an earlier editorial reported to be non-existent, [13] but closely follows the story as related in the
earlier article in the El Paso Herald-Post, differs from Dos Utt's in that the ruler asks for ever-
simplified advice following their original "eighty-seven volumes of six hundred pages" as opposed to
a simple failure to agree on "any major remedy". The last surviving economist advises that "There
ain't no such thing as free lunch."
In 1950, a New York Times columnist ascribed the phrase to economist (and army general) Leonard
P. Ayres of the Cleveland Trust Company: "It seems that shortly before the General's death [in
1946]... a group of reporters approached the general with the request that perhaps he might give
them one of several immutable economic truisms that he had gathered from his long years of
economic study... 'It is an immutable economic fact,' said the general, 'that there is no such thing as
a free lunch.'"[14]
The September 8, 1961, issue of LIFE magazine has an editorial on page 4, "'TANSTAFL,' It's the
Truth," that closes with an anecdotal farmer explaining this slight variant of TANSTAAFL.
Popularization[edit]
In 1966, author Robert A. Heinlein published his novel The Moon Is a Harsh Mistress, in which
TANSTAAFL was a central, libertarian theme, mentioned by name and explained. This increased its
use in the mainstream.[2][3]
Edwin G. Dolan used the phrase as the title of his 1971 book TANSTAAFL (There Ain't No Such
Thing As A Free Lunch) – A Libertarian Perspective on Environmental Policy.[15]
Meanings[edit]
Science
In the sciences, TANSTAAFL means that the universe as a whole is ultimately a closed system.
There is no source of matter, energy, or light that draws resources from something else which will not
eventually be exhausted. Therefore, the TANSTAAFL argument may also be applied to natural
physical processes in a closed system (either the universe as a whole, or any system that does not
receive energy or matter from outside). (See Second law of thermodynamics.) The bio-
ecologist Barry Commoner used this concept as the last of his famous "Four Laws of Ecology".
According to American theoretical physicist and cosmologist Alan Guth "the universe is the ultimate
free lunch", given that in the early stage of its expansion the total amount of energy available to
make particles was very large. [16]
Economics
In economics, TANSTAAFL demonstrates opportunity cost. Greg Mankiw described the concept as
follows: "To get one thing that we like, we usually have to give up another thing that we like. Making
decisions requires trading off one goal against another." [17] The idea that there is no free lunch at the
societal level applies only when all resources are being used completely and appropriately – i.e.,
when economic efficiency prevails. If not, a 'free lunch' can be had through a more efficient utilization
of resources. Or, as Fred Brooks put it, "You can only get something for nothing if you have
previously gotten nothing for something." If one individual or group gets something at no cost,
somebody else ends up paying for it. If there appears to be no direct cost to any single individual,
there is a social cost. Similarly, someone can benefit for "free" from an externality or from a public
good, but someone has to pay the cost of producing these benefits. (See Free rider
problem and Tragedy of the commons.)
Finance
In mathematical finance, the term is also used as an informal synonym for the principle of no-
arbitrage. This principle states that a combination of securities that has the same cash-flows as
another security must have the same net price in equilibrium.
Statistics
In statistics, the term has been used to describe the tradeoffs of statistical learners (e.g., in machine
learning). That is, any model that claims to offer superior flexibility in analyzing data patterns usually
does so at the cost of introducing extra assumptions, or by sacrificing generalizability in important
situations.[18]
Technology
TANSTAAFL is sometimes used as a response to claims of the virtues of free software. Supporters
of free software often counter that the use of the term "free" in this context is primarily a reference to
a lack of constraint ("libre") rather than a lack of cost ("gratis"). Richard Stallman has described it as
"'free' as in 'free speech,' not as in 'free beer'".
The prefix "TANSTAA-" (or "TINSTAA-") is used in numerous other contexts as well to denote some
immutable property of the system being discussed. For example, "TANSTAANFS" is used
by electrical engineering professors to stand for "There Ain't No Such Thing As A Noise-Free
System".[citation needed]
Sports
Baseball Prospectus coined the abbreviation "TINSTAAPP", for "There Is No Such Thing As A
Pitching Prospect",[19] as many young pitchers hurt their arms before they can be effective at a major
league level.
Social policy
Hungarian prime minister Ferenc Gyurcsány used this adage to justify his social reforms in the mid-
2000s. As a post-socialist country, Hungary struggled with the illusion of the state as a caring and
giving, independent entity, rather than being the embodiment of the community. The saying "there is
no free lunch" represented that even if the state provides welfare or something else for the people in
need, it is in fact bought or provided by other people of the same community through taxes.
Therefore, the state cannot provide everything for everyone, and increased provisions given by the
state can only be financed by economic growth or increased taxes.
Exceptions
Some exceptions from the "no free lunch" tenet have been put forward, such as the Sun and carbon
dioxide.[20] It was argued in particular that metabolism evolved to take advantage of the free lunch
provided by the Sun, which also triggers production of vital oxygen in plants. [20] However, these too
fall short in that the viewpoint is an open system, Earth, with "free" inputs from the Sun. When
viewed from the larger system context, the Sun/Earth or Solar System, there is a net energy
exchange, and still "no free lunch".[2

What is the product of social networks?

What Are Examples of Electronic

Media?
Credit: Blend Images - Inti St Clair/Stone/Getty Images

Electronic media is media that uses electricity, including television, radio, the Internet, fax,
CD-ROMs, DVDS and online video streaming. It includes any medium that uses the digital or
electronic encoding of information. Most new media forms are digital media, but electronic
media can be analog electronic data or digital electronic data.

The earliest form of electronic media was the telegraph in 1795. The telephone came in 1849,
followed by the radio in 1897 and the Internet in 1963. Electronic media examples also include
neon, LED, computer monitors, films, RAM, barcodes, audio recordings and video recordings.
Electronic media has many uses including journalism, news, marketing, education, engineering,
digital art, virtual reality, entertainment, transportation and military purposes.

Electronic media offers many advantages and disadvantages to consumers. There is a better
working memory for history, and huge steps are taken every day within medical, scientific and
technological fields. But with the ever-changing nature of the world, news is often reported
before the full truth is exposed. In addition, members of younger generations are often finding
themselves in trouble because of what they publish via electronic media, not realizing that it will
 never truly disappear. Several studies have shown that relying on electronic media has actually
changed the way humans learn.

What is new media and examples?

New media are forms of media that are native to computers, computational and relying
on computers for redistribution. Some examples of new media are telephones,
computers, virtual worlds, single media, website games, human-computer interface,
computer animation and interactive computer installations.

What is new about the new media?

new media. New media is used to describe content made available using different
forms of electronic communication made possible through the use of computer
technology. Generally, the phrase new media describes content available on-demand
through the Internet.

What is the difference between new media and old media?

Traditional media allows businesses to target a broad target audience through
billboards, print advertising, television commercials, and more. In comparison, new
media allows companies to target a narrow target audience through social media, paid
online ads, and search results.

Traditional Media vs. New

Media: Which Methods
Belong in Your Marketing
Plan?
TABLE OF CONTENTS

1. Traditional media vs. New media

2. Video: Traditional Media vs. New Media

3. What is traditional media?

4. What is new media?

5. Traditional media in 2019

6. Should you stop using traditional media?

7. 5 new media strategies to try

Your business relies on a variety of marketing and advertising

methods to reach potential customers and leads. Over time,
the marketing methods you use have likely evolved, changed,
or even been retired and replaced with new ones.

That's why more businesses are asking about traditional

media vs. new media

As marketing continues to evolve, new methods — typically

referred to as “new media” — have emerged. These methods
are mostly said to deliver better results than other tactics —
known as “traditional media” or even “old media”.

Keep reading to learn the about new and old media, plus the
differences between traditional media and new media, to
help your company decide which method is best for your
business.

Could your business use new media marketing? Looking for

ways to bring your marketing strategy up to speed? Give us a
call at 888-256-9448, and we can help you start marketing
your business with new media methods!

Digital Marketing Services

Need a new media marketing refresh? We'd love to talk to
you today about your needs! Whether you're familiar with
new media marketing methods or still investing heavily in
traditional marketing, we'd love to see how we can help you
in the world of digital marketing!

SPEAK WITH A STRATEGIST

The difference between

traditional media vs. new
media
Traditional media allows businesses to target a broad target
audience through billboards, print advertising, television
commercials, and more. In comparison, new media allows
companies to target a narrow target audience through social
media, paid online ads, and search results. Price-wise,
traditional media tends to cost more than new media due to
its broad targeting and advertising channels.

Video: Traditional Media vs.

New Media
Sam Selders discusses the advantages and disadvantages of
new media and traditional media.

What is traditional media?

Traditional media includes mostly non-digital advertising and
marketing methods.

Traditional media is:

 Television advertisements
 Radio advertising
 Print advertising
 Direct mail advertisements
 Billboards and off-site signs
 Cold calling
 Door-to-door sales
 Banner ads
Companies have used these methods for many years to
reach consumers and motivate them to make purchases. Up
until very recently, these marketing and advertising styles
were very effective, and helped businesses just like yours
make a profit.

However, as the needs and expectations of consumers

evolve, marketing has no choice but to evolve as well. This is
what has led to the rise of new media and digital marketing
methods — and the decrease in popularity of some traditional
methods you know well.

It's also led to the debate between traditional vs. digital

media.

What is new media?

New media, also called digital media, consists of methods
that are mostly online or involve the Internet in some sense.

These methods include:

 Search engine optimization

 Pay-per-click advertising
 Content marketing
 Social media
 Email marketing
Many of these methods have been around for several years,
but have only gained prominence recently. So when the topic
of traditional media vs. emerging media is discussed, it’s
somewhat misleading to call these methods “emerging” as
very few of them are new.

Having said that, these marketing methods are continuing to

change as time goes on. Best practices for these methods are
currently dependent on their sources, as opposed to
depending on the attitudes of consumers. But over time, we
may see another shift as consumer feelings change toward
these methods.
The decline of traditional
media (and outbound
marketing) in 2019
Within the last few years, new terms have been coined to
discuss traditional marketing methods and modern ones.
These terms are outbound marketing, which typically lines up
with traditional advertising, and inbound marketing, which
aligns with new media.

The “outbound” in outbound marketing refers to the fact that

these marketing methods rely on messages being sent out to
consumers. On the other hand, the “inbound” in inbound
marketing refers to marketing where consumers are seeking
out the company, or coming into their marketing channels
willingly.

Over the last few years, outbound marketing methods like

those you have relied on have declined in popularity among
consumers. Now that potential customers can use new
channels like the Internet, websites, and social media to
research and discuss companies, they can choose to draw
their own conclusions on where to take their business—and
ignore advertising that suggests otherwise.

That's one reason why new media has pulled ahead in the
debate between traditional media vs. new media.

Consumers have also become less receptive to traditional

media now that they are able to tune it out. Commercials can
be skipped, radio stations can be changed, mail can be
thrown away, and banner ads can be blocked. This means
that marketing methods are often ignored or even seen as
ineffective.

You can learn more about the difference between inbound

and outbound marketing by reading this article on the topic.

Should my business stop

using traditional media?
Not necessarily! No one can tell you which marketing
methods are and aren’t worth your time and money. Since
your business and audience are both unique, it’s impossible
to say that something will or won’t work for you—and that
applies to new media, too.

As we mentioned, many marketers are finding that traditional

and outbound marketing methods are losing their
effectiveness over time. If you’ve noticed lower returns on
your advertising or outbound marketing, this is likely a
symptom of that decreased effectiveness. So it would be a
good idea to slowly phase those methods out in favor of new
ones.

Many companies have found that one or two traditional

media methods still work very well for them.

For example, billboards, while expensive, may help

businesses gain awareness in local operating areas. And print
advertising can help some companies reach markets that
include those who still read books or magazines regularly.

While often positioned against one another, traditional media

and new media can offer immense value when combined with
one another.

There’s no harm in continuing your current marketing

methods if they are still working for you. It’s entirely possible
to invest in both new and traditional media! However, with all
of your marketing methods, you should pay attention to their
performance, and do frequent evaluations so that you can
scale up or down your spending appropriately.

SOME OF OUR CLIENT SUCCESSES

CASE STUDY ▸Increased
Website
Traffic by

+95% CASE

STUDY ▸Increased
Conversion
Rate by
+37% CASE

STUDY ▸Increased
Leads
Generated by

+60%
success by how much we WOW our clients.”
“We measure our

Bill Craig
WebFX President

SEE HOW WE CAN HELP YOU

GROW YOUR BUSINESS
Next Step
Enter your website to get started now
 Want to speak with an expert? Call us at 888-256-9448

5 new media strategies that

are worth your company's
time
If you think new media is the way to go in the digital media
vs. traditional media debate, you have several options when
it comes to channels and strategies.

Let’s take a look at some of the newer marketing methods

that you may not yet be familiar with. These methods all
revolve around your website, so in the off chance that you
don’t currently have a site, please visit this article on website
design and cost to learn what steps you should take first.

The five new media strategies your business should think

about in 2019 include:

 Search engine optimization

 Pay-per-click advertising
 Content marketing
 Social media
 Email marketing
Learn more about each of these new media approaches
below:
SEARCH ENGINE OPTIMIZATION

Search engine optimization, commonly abbreviated as SEO,

refers to a series of processes by which a website improves
its rankings in search engines like Google. SEO is a crucial
component of online marketing, because without ranking in
searches, your website may never attract targeted leads or
customers.

You can use SEO in many ways to improve a website’s

ranking. One of the biggest ways is through the use of
keywords. Keywords are specifically selected words or
phrases that are placed within a website’s content. These
keywords match up to the words or phrases that people are
searching for. If you use the right keywords, your website is
more likely to show up for these searches.

Find out why WebFX is the best SEO company for the job.

A website’s ranking isn’t just determined by keywords,

however. A site may be more or less visible in searches
depending on the number of links it has from other sites. A
website with a great deal of links from others is more likely to
be trusted by Google, and thus ranked highly for the
keywords it targets. A website with very few links, on the
other hand, will be ranked lower.

Research has shown that your search engine presence is

strongly tied to the number of leads and revenue your
business is able to generate. It’s for this reason that you
should consider investing in SEO for your website and
improving its visibility in search engine results.

You can learn more about how to get started with SEO by
reading this tutorial for beginners.

PAY-PER-CLICK (PPC) ADVERTISING

With pay-per-click (PPC) advertising, you can choose which

keywords and phrases you want to trigger your
advertisements. Then, if your bid is the highest, your ads will
display above organic search results for those terms. And you
only pay when people click on your advertisements, so if
nobody clicks your ads, you won't pay a cent.
One of the main benefits of PPC is that results are
instantaneous. Unlike SEO, which can take several weeks
before you see results, PPC ads can start driving qualified
traffic to your website the minute they're clicked to go live. If
you're looking to quickly boost sales, PPC is a great option.

CONTENT MARKETING

Content marketing is a form of marketing with new media

that has exploded in popularity over the last three to four
years. As its name suggests, this marketing method relies on
the distribution of content—including written content like
articles, blog posts, and guides, as well as visual content like
videos—to appeal to potential customers and business leads.

The popularity of content marketing has stemmed from the

fact that consumers tend to react very well to businesses that
provide entertaining, engaging, or helpful content. A
consumer is much more likely to learn more about an
unknown company if it has provided them something of value
—like an answer to a question or a guide to performing a
complex task.
Content marketing is also popular because it is able to have
an impact on a website’s SEO. Google tends to rank websites
higher that are providing substantial, worthwhile content that
also uses the targeted keywords we mentioned above. This is
another factor that has helped content marketing gain
prevalence.

You can learn more about how content marketing works

by reading the first chapter of our Beginner’s Guide to
Content marketing.

SOCIAL MEDIA

Even if you don’t currently rely on it as a marketing method,

chances are good that you know what social media is and
how it works. Social media networks like Facebook, Twitter,
Google+, and Instagram are used by businesses to establish
connections with their potential customers, and also
strengthen the relationships they have with current ones.

The biggest advantage of social media is that it allows you to

have one-on-one, unfiltered conversations with potential
customers. You are able to answer questions, respond to
feedback, and address concerns or possible issues quickly,
and in a very personal way. Although this may sound
intimidating at first, it’s proven to be a huge benefit for
companies that want to improve their customer service.

When you invest in social media, you don’t have to

necessarily create a page or profile on each and every
network. Your social media activity should depend on where
your target audience is located. So for example, if your target
audience is women in their 20s or 30s, you would likely set up
a profile on Instagram and Pinterest. But if your audience is
mostly young men, you might have better luck on Twitter.

No matter how you use social media, or which networks you

choose to try, it’s crucial to not forget that your presence
online requires attention. You’ll need to assign someone to
monitor your pages and respond to customers in a timely
manner. Otherwise, you might find that your reputation takes
a blow from those who aren’t satisfied with your service.

EMAIL MARKETING

Finally, email marketing is one of the best new media

methods you’ll find for directly reaching your customers and
motivating them to take action. Although you might expect
email to be classified as outbound marketing, email requires
consumers to show their interest in joining a list before they
can be sent to, so it qualifies as inbound.
What should you send in emails? That’s up to you! Many
companies have begun using their email marketing as an
extension of their content marketing—that is, they send
educational, interesting, and unique content to their email
subscribers. This can help nurture a relationship with leads or
direct interested subscribers to the next step in the sales
process.

Learn more about marketing

with new media
Now that you know more about the differences between
traditional media vs. digital media, you may be wondering
what the next steps are. If you’re interested in trying SEO,
content marketing, or any one of the other inbound
marketing methods we highlighted here, it’s difficult to know
exactly where to start.

We recommend browsing through our Beginner’s Guide to

Inbound Marketing to decide what to do next. This detailed
guide will help explain some more things you may not yet
know about new media and modern marketing methods. It
will also give you some ideas to help you develop an inbound
marketing plan that is suited for your business.

If you don’t think you have the time to work on these new
marketing methods, or would like help from a professional,
feel free to contact us! WebFX is a full-service Internet
marketing company that specializes in SEO, inbound
marketing, and all things digital. We would be more than
happy to discuss the topic of marketing with you, and make
some recommendations to help improve your current
program.

We hope you found this page helpful and educational on the

topic of new and traditional media, and the new methods you
should be considering for your marketing plan. If you have
any further questions, please don’t hesitate to let us know!