The Debate On Global Climate Change - 1605 Words

The debate on global climate change argues that human-generated greenhouse gas emissions are too small to substantially change the earth’s climate and that the planet is capable of absorbing those increases. It is contended that warming over the 20th century resulted primarily from natural processes such as fluctuations in the sun s heat and ocean currents. But the theory of human-caused global climate change is based on questionable measurements, faulty climate models, and misleading science. In the first half of twentieth century it was found that the human influenced the daily cold extremes followed by warm nights. Through the global optimal fingerprinting analysis performed by Christidis et al., concluded that there was anthropogenic influence in regional distributions which lead to the extreme warmer days which were expected to become more severe. According to Leopoldian rationale, geoengineering gives an opportunity to eradicate the problem of global warming or at least a solution for the problem. The increased levels of carbon dioxide in the atmosphere which in fact leads to gain in crop yields which are likely to be offset by damage to plants from higher temperatures, faster drying soils, lower rainfall leading to extreme droughts and floods. The high levels of greenhouse gases in the atmosphere lead to changes like increased rainfall which lasts for decades. Is Human Activity Responsible for Global Climate Change? Global Warming and its effects onShow MoreRelatedThe Global Climate Change Debate Essay2025 Words   |  9 PagesThe Global Climate Change Debate – How do I know what to believe? Introduction: Climate change has been a topic of debate for decades. Scientists support climate change is happening with hard scientific evidence whereas the people who oppose climate change have evidence which is mainly opinion-based. This report will cover what climate change is, why climate change is happening, the science that supports climate change, the different views and opinions on climate change, the effects of climate changeRead MoreThe Debate Surrounding Global Climate Change Affects Millions Of People1727 Words   |  7 PagesThe debate surrounding global climate change affects millions of people. In fact, the rate at which our climate temperatures are changing due to greenhouse gas emissions is alarming. Carbon dioxide is the number one greenhouse gas emission that human beings so efficiently and effectively emit into the atmosphere. It s all around us, all the time. Scouring our air, and our lungs. According to the data in a study done by the E.P.A. in 2013, Carbon Dioxide accounte d for approximately 82 percent ofRead MoreGlobal Warming Controversy : The Debate Around The Climate Change, And Its Causes And / Or Effects2869 Words   |  12 PagesGlobal Warming Controversy Critically assess how the media have used the scientific evidence in the debate around the climate change, and its causes and/or effects Introduction Nowadays, the whole world are paying attention on the controversy about climate change and global warming. Hot topics include whether global warming is occurring, warming level in modern times, causes, effects and what that action should be taken (Science Daily). On one hand, there is a strong consensus that human and industriesRead More Climate Change: The Sciences, the Media, and Politics Essay1468 Words   |  6 Pagesand understanding of the world around us. These three spheres of information and action are invariably linked when discussing complex global issues like climate change. However, the presentation and resolution of disagreement within the three spheres is incredibly independent. The many ways that climate change, specifically the debate on the existence of climate change, is portrayed within these spheres can greatly affect public emotion, knowledge, and policy of such an issue. This is particularly evidentRead MoreCO2 is NOT Pollution Essay example1492 Words   |  6 Pagesunderstanding of our global climate, most scientists agree that human actions have had a warming effect on the global climate (IPCC, 2010). This idea of anthropogenic global climate change is the general consensus in the scientific community according to the Intergovernmental Panel on Climate Change (IPCC). These views were increasingly challenged, mostly by non-scientists, in late 2009 when servers owned by the Climatic Research Unit (CRU) were hacked. Emails between climate scientists and otherRead MoreEssay on Is Climate Change Natural or Man-Made?1160 Words   |  5 PagesName: Instructor: Curse: Date: Is Climate Change Natural or Man-made? Introduction The planet has been experiencing considerable climate change for the last several decades. There have been many explanations toward the main causes of the increased warming of the planet. On one hand are the environmentalists who believe that the major cause of this increased warming of the planet is the increase in greenhouse gases in the atmosphere induced by human activities. On the other hand, the scientistsRead MoreWhat We Know About Climate Change By Kerry Emanuel1140 Words   |  5 Pagestemperature or change within the gases that which compose the atmosphere. What We Know About Climate Change by Kerry Emanuel aims to address this issue of Earth’s vulnerability head-on as it suggests the plausible causes for the undeniable planetary warming observed in the last century all the while proposing pragmatic solutions to discontinue the unnatural processes credited with the abnormal warming. Brimming with absorbing and educative statistics and facts, What We Know About Climate Change first choosesRead MoreThe Climatic Changes And Global Warming Essay1659 Words   |  7 PagesThe climatic changes have been an issue of controversies around scientists, politicians, and people in general. Indeed, there are many aspects in which climatic changes and global warming step in, being sources of controversies and disagreements. In this opportunity, the discussion about climatic changes will be divided into two different aspects, the first one involves how scientists think about the main cause of climatic changes while analyzing the question â€Å"Are humans responsible for climaticRead MoreHuman Activity Is Responsible For Our Current Warming Trend1598 Words   |  7 PagesThe biggest problem with climate change today is the debate on whether or not human activity is responsible for our current warming trend. According to Jonathon Schuldt (2014:219), around 99.7% of climatologi sts agree that man-made climate change is a reality, while only 40% of Americans believe that humans are the main driver. This is because we live in societies in which, thanks largely to the internet, everyone is free to express an opinion. On the issue of climate change, we have tons of sitesRead MoreIs A Climate Fund Necessary?878 Words   |  4 Pages9. Fair or Foul: Should developed countries be obligated to â€Å"pay† for climate change in less developed countries? Is a climate fund necessary? Oscar Wilde once said, â€Å"We are each our own devil, and we make this world our hell† (Wilde 2015). In other worlds, we bring upon ourselves our own demons, and it is usually not until after the damage is done that when even notice how much damage has been done. Climate change is one of these demons we face, created by our own ambition and our own societal

The Importance of Immigration to the Canadian Economy in...

In the early decades of the 20th century, over one in five people living in Canada were immigrants. As immigrants were introduced to the freshly structured land and economy of Canada it began to show that immigration was essential to the financial structure of Canada. Some of the reasons that immigration was important to the Canadian economy in the early 20th century is that it prevented American expansion, Railway Business benefited from providing service to western Canada, immigrants started new businesses in Canada and industrialization and urbanization. Even though birth rates were higher than immigration rates in the early 20th century immigration was still very important to the Canadian economy because since approximately 180,000 people immigrated to Canada during the time periods of 1900-1910 and each of those immigrants received 160 acres of land in western Canada it stopped the possibility of America expansion because western Canada was beginning to become colonized which boosted the economy because Canada has one of the world’s largest supply of natural resources such as metals, lumber and oil and in order for those resources to be not only discovered but to be put to use Canada needed workers but it had a very low birthrate compared to the other country’s therefore immigration was need to put Canada’s resources to use and start internationals trade and to boost the economy and without immigration the birth rate would stay low also â€Å"Economic activity in Canada isShow MoreRelatedCanad A Beneficial Thi ng1693 Words   |  7 PagesCanada in the early stages was not how it was today, especially in the area of multiculturalism. Multiculturalism in Canada during the 1900’s was rare and not spoken of. In fact, the British people in Canada were against it. They came up with laws like the â€Å"Chinese Head Tax†, the â€Å"Continuous Journey Regulation† and residential schools in order to make it hard for foreigners to come and live in Canada. After awhile, Canada decided to become an independent country and separated from the British ruleRead MoreBritish Columbia And Prairie West1607 Words   |  7 Pageseconomic, political, and social developments. The great depression of 1930s was more devastating on the Canadian prairies than other regions of Canada. It impacted badly on economy, social organization, and politics of the Prairie region. Various factors such as low wheat prices in the international market, fall of export markets during the depression, insufficien t financial investments lowered the economy of the Prairie region. The economic and political situation worsened in the British Columbia duringRead MoreRole Of A Chinese Women1935 Words   |  8 PagesINTRODUCTION Immigration is a large part of developing Canada: immigration was seen as an opportunity for many people around the world to immigrate to Canada in order to have prospects and a higher standard of living. This paper will examine how the role of a Chinese women and how it has been transformed due to institutional processes, as well as the difference of the role a Chinese women would face in Canadian society vis-a-vis a Hong Kong society is examined. The effects of polices such as theRead MoreImmigration Into Canada4080 Words   |  17 PagesImmigration Into Canada Abstract This paper is concerned with the recent wave of Hong Kong immigrants into Vancouver. The stage is set for this discussion by first explaining some background behind Canadian immigration policy and then discussing the history of Chinese immigrants in Vancouver. From these discussions we are informed that Canadian immigration policy was historically ethnocentric and only began to change in the late 1960s. It was at this point that we see a more multicultural groupRead MoreAnalysis of Immigration in Canada6747 Words   |  27 Pagesimmigrants. According to a Canadian Consensus in 2001, the Canadian population is approx. 30,000,000 and immigration represented approx. 0.834% of the population growth.[1]. These numbers continue to increase as Government Immigration policies center the immigrant growth to be on 1% of the population annually.[2] Thousands of people choose Canada to improve their quality of life, due to the limited economic growth in their country of origin. Our detailed research on Canada’s immigration policy clearly showsRead MoreEconomic Immigration: the Case of Spain4636 Words   |  19 Pages[pic] Economic immigration: the case of Spain Why did I choose this topic? I. Introduction 1. The term immigration 1.1 The term immigration and the general theories behind it 1.2. Economic migrant 2. Global immigration 3. Immigration in Europe 1. Immigration within Europe 2. Immigration from outside of Europe II. The case of Spain 1. Immigration laws and policies in Spain 2. Main countries from where people emigrate to Spain Read More Impact of Globalisation on International Public Policy Essay3193 Words   |  13 PagesIntroduction Agreements on International Public Policy have never been as abundant as in the last century. In the meantime, Globalisation has become a major phenomenon around the world, at various levels. So, it will be interesting to know if globalisation makes agreements on International Public Policy easier or harder. Looking towards history, Globalisation has deeply affected both national and international way of governance. Focus will be made on the economical and political aspects of globalisationRead MoreEssay on A.P.U.S.H unit 6 study guide4910 Words   |  20 PagesChinese in California? What were the social and public policy results of this hostility? In the early days of the Gold Rush most Anglo-European miners worked alone. The Chinese miners worked as a team. Their success stimulated resentment and violence by Anglo-European miners. They saw Chinese as being clandestine, and vaguely dangerous. 9 What were the reasons for the late nineteenth century boom on migration to the West from the eastern United States and Europe? Migration has been anRead MoreInfluence of Immigration on the American Culture and Language14362 Words   |  58 PagesInfluence of Immigration on the American Culture and Language CONTENT Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. The Main Part †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Chapter I In Search of America †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1.1. America: Its Image and Reality†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1.2. The Reasons of Immigration to the USA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3. . The Importance of Religious Beliefs: â€Å"One Nation under God † †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Chapter II The Nation of Immigrants†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.1. American beliefs and values†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreCultural Anthropology6441 Words   |  26 Pageshave? Ethno-aesthetics- refers to local cultural definitions of what is art and what is good art. - (ex. Wood carving standards in West Africa, Graffiti Banksy) The Anthropological Study of Art: Influence of Franz Boas in first half of the 20th century - We need to look at artist in cultural context that we find the art in. - The process of creating and using the art, social functions of art, thoughts, emotion John Chernoff: study of drumming in Ghana, learned to become a drummer, He had

Ecological Interaction Of Humans And Reptiles Environmental Sciences Essay Free Essays

Ecological interaction is the relation between species that live together in a community ; specifically, the consequence an person of one species may exercise on an person of another species. Reptiles and amphibious vehicles seems non to play a really important function in the sustainability of human life on Earth but deeper research into the functions of these beings indicates that they are of importance. There are assorted ecological menaces which can impact reptilians. We will write a custom essay sample on Ecological Interaction Of Humans And Reptiles Environmental Sciences Essay or any similar topic only for you Order Now Habitat loss and devastation is a major ecological issue impacting reptilian species. Habitat loss is widely recognized as the taking menace to planetary biodiversity. While hard to specifically categorise, habitat loss take topographic points on an overlapping scope from small-scale to large-scale and from absolute devastation to subtle debasement. There are many factors which contribute to this phenomena. Activities such as excavation, logging, switching cultivation and glade of secret plans of land can present menace to the natural home grounds of many herpes. This promotes migration of species from one country to another therefore cut downing the diverseness of the country. Climate alteration is another deduction which can act upon the lives of herpes and reptilians. Climate alteration responses will be influenced by a figure of factors: ( 1 ) expected alterations and incompatibility in local environmental and habitat conditions ; ( 2 ) the phenology ( clocking ) of life-requisite activities ; ( 3 ) interactions with emerging pathogens and invasive species ; and ( 4 ) interactions with other environmental stressors ( e.g. , chemicals ) . Over the short term ( e.g. , yearly ) , the interaction of these factors will find generative success rates and endurance to metabolism. Over the long term, the regularity and extent of utmost temperature and precipitation events will probably act upon the continuity of local populations, distribution capablenesss and therefore the construction of meta-populations on the landscape. Alternation in air and H2O temperature, precipitation, and the hydro period ( Carey and Alexander 2003 ) tends to impact amphibious and reptilian species since they are extremely sensitive to and react strongly to these alterations. This is due to them being poikilotherms ; their organic structure temperature depends on most favourable environmental status. Amphibians require aquatic and damp home ground for puting egg and larval development and station metamorphous life phases severally. Amphibians are more likely to see lower endurance rate to metabolism as the temperature warms and variableness of H2O proceed. Speciess related with passing Waterss, such as low pools and jumping watercourses may be preponderantly susceptible to altered precipitation forms. Temperatures outside of their thermic optima will besides do physiological emphasiss. Some reptile species exhibit temperature-dependent sex finding during egg incubation that could be influenced by alterations and variableness in planetary climate.Because of their affinities to aquatic home grounds and their little size, amphibious vehicles typically have comparatively little place scopes and low dispersion rates. Reptiles are more nomadic and have a greater ability to defy the expected drier and warmer conditions. However, because cardinal home grounds and species scopes have already been altered and fragmented by human usage and development, the physical tracts to link animate beings with suited home grounds ( e.g. , upwards in latitude or lift ) may non be. Direct ecological interactions between herpes includes: niche differenciation ( resource breakdown ) , predation and competition. Niche differenciationrefers to the procedure by which natural choice thrusts viing species into different forms of resource usage or different niches. This causes one coinage to partition resource with another so that one does non wholly out compete the other, accordingly coexistence is achieved through the distinction of their realized ecological niches. Niche partitioning may non happen if there is sufficient geographic and ecological infinite for beings to spread out into. A typical illustration of resource breakdown is shown by the Anolis lizards in the tropical rain forest. Although they portion common nutrient demands – chiefly insect, they evade competition by shacking in different parts of the rain forest. Some live on the foliage litter floor while others live on fly-by-night subdivisions, thereby avoiding competition over nutrient in those subdivisions of the forest. Resourse breakdown is a type of niche distinction. Resource partitioning occurs when biological species require different parts of the same resource. Human interactions with amphibious populations. Human existences have impacted about on every life animal on Earth both straight and indirectly. Worlds have interacted with amphibious vehicles since antiquity. Some of these exchanges are direct and easy understood while other connexions are more hard to spot. Human activity has caused the disappearing of many carnal species, the deceases and diseases of others and as a consequence, pose major a menace to the Earth ‘s biodiversity. Due to human interactions, many at that place has been dramatic diminutions in amphibious populations, including population clangs and mass localised extinctions, have been noted since the 1980s from locations all over the universe. These diminutions are perceived as one of the most critical menaces to planetary biodiversity, and several causes are believed to be involved, including, over exploiataion, pollution and chemical usage, habitat devastation and alteration, clime alteration, and increased ultraviolet-B radiation ( UV-B ) . Human interactions can be direct and indirect. Direct interactions with amphibious vehicles: this involves straight taking species of amphibious vehicles which includes toads, frogs, salamanders, triton and utilizing them for commercial and economic intents. One direct human interaction is over development. As with many other resources that worlds consume and over exploit, Amphibious species are no exclusion. Frogs are commercially of import for their nutrient value. The legs of some Rana catesbeiana species are in heavy demand in China, Europe ( particularly France ) and in parts of the United States, particularly Louisiana. The worldwide crop is an estimated 200 million Rana catesbeianas ( about 10,000 metric dozenss ) yearly. Major Rana catesbeiana providers include Bangladesh, China, Indonesia, and Japan, with about 80 million collected each twelvemonth from rice Fieldss in Bangladesh entirely. As a consequence, populations have fallen drastically from inordinate development ( Economic and Ecologic Importance of Amphibians: Investigating the Connections Between Amphibians and Humans ) hypertext transfer protocol: //www.suite101.com/content/amphibianhuman-interactions-a179036 # ixzz15aCfnKk6 ) In add-on, many amphibious species are removed from the natural state to be used as pets, and to provide biological markets. This development of species has besides lead to mass diminution of amphibious populations. Indirect human interactions: these include all the activities that human existences do to change the environment, which intern affects all carnal populations and planetary biodiversity. The current planetary loss of species is a procedure generated by the activities of worlds. As we modify our environment for our ain terminals, it is clear that the devastation of the home grounds of other species leads straight to their disappearing. Indirect human interactions, that has lead to mass diminution includes: Water quality factors ( chiefly caused by pollution and chemical usage ) : Many H2O ways are polluted by human activities particularly agricultural and industrial activities. These pollutants contaminate the H2O ways that many amphibious vehicles use as home grounds and since amphibious vehicles have permeable, open tegument and eggs that may readily absorb toxic substances from the environment. Their eggs are laid in H2O or in damp countries, and their larvae ( polliwogs ) are aquatic. Because amphibious vehicles are closely tied to an aquatic environment, the quality of the H2O in which they live can impact their growing, development, and endurance. Because pollutants, waterborne pathogens, and planetary environmental alterations can all affect H2O quality, these factors can in bend affect amphibious vehicles. Conversely, amphibious vehicles are of import indexs of H2O quality, and are considered a lookout species, intending that what affects amphibious vehicles soon may impact other carnal species in the hereafter. Acidification. A figure of surveies have shown that acidification of fresh H2O ( that is, a decrease in pH to acidic degrees ) via acid rain, acid snowmelt, or other manners of pollution are harmful to amphibious growing and development. Some species are more tolerant of acid conditions than others. Therefore, depending on the species, the sum of sourness, and other environmental variables, amphibious vehicles may see developmental malformations and increased mortality due to acidification. Acidification potentially affects amphibious populations and the communities in which amphibious vehicles live. For illustration, some populations of frogs in Britain have likely been reduced by H2O acidification. Salamander populations in Colorado seem to hold declined because of increased acidification during snowmelt. Several surveies have shown that acidification of the H2O can impact competition and predation between amphibious vehicles. Therefore, the larvae of some frog species may hold increased survival rates under acerb conditions because their salamander marauders show reduced predation at low pH. Nitrates and Nitrites. Many chemical merchandises used in agribusiness and industry pollute aquatic home grounds, doing potentially terrible harm to ecosystems. For illustration, the addition in concentration of nitrate in surface H2O on agricultural land due to legion beginnings may be risky to many species of fish, Toxic Substances. Merely as amphibious species display fluctuation in sensitiveness to nitrate-related compounds, they besides show fluctuation in tolerance to other toxic substances that may be found in H2O. Insecticides such as organophosphates, carbonates, and man-made pyrethroids, which are used chiefly in harvest production, have a broad array of effects on amphibious vehicles. Depending on the concentrations used and the species involved, some of these substances may be deadly, may impact growing and development, or may impact metabolism. Habitat alteration change and atomization. Habitat alteration or devastation includes the building of substructure and roads, excavation and logging activities etc. and is one of the most dramatic issues impacting amphibious species worldwide. As amphibious vehicles by and large need aquatic and tellurian home grounds to last, menaces to either home ground can impact populations. Hence, amphibious vehicles may be more vulnerable to habitat alteration than beings that merely necessitate one home ground type. Large scale clime alterations may farther be modifying aquatic home grounds, forestalling amphibious vehicles from engendering wholly. Climate alteration Anthropogenic planetary heating has unambiguously exerted a major consequence on amphibious diminutions. For illustration, in the Monteverde Cloud Forest, a series of remarkably warm old ages led to the mass disappearings of the Monteverde Harlequin toad and the Golden Toad. ( decline_in_amphibian _populations.com ) . An increased degree of cloud screen, which has warmed the darks and cooled down daytime temperatures in an effort to command planetary heating, has been blamed for easing the growing and proliferation of the fungus Batrachochytrium dendrobatidis ( the causative agent of the fungous infection chytridiomycosis. Chytridiomycosis or Chytrid Fungus is an epizootic and a major subscriber to the diminution of amphibious populations around the universe, endangering many species with extinction. This fungus is a planetary emerging amphibious pathogen which is turn outing to be one of the worst craniate infective diseases found so far. It is doing a immense sum of extinction and disease within amphibious populations. More than 100 species of amphibious vehicles are known to be affected by the chytrid fungus ( Batrachochytrium dendrobatidis ) . Some are really susceptible and die rapidly while others which are more immune are bearers of the pathogen. This disease is already credited with pass overing out toads and frogs in big Numberss in Australia and South America. ( decline_in_amphibian _populations.com ) The increased temperature caused by planetary heating has besides caused the disappearing of many species from progressively hot home grounds. The rise in sea degrees which causes attendant implosion therapy and devastation of home ground has besides lead to extinction of some species. Ultra violet radiation Degrees of UV-B radiation in the ambiance have risen significantly over the past few decennaries, due to stratospheric ozone depletion and clime alteration. Research workers have found that UV-B radiation can kill amphibious vehicles straight, cause sublethal effects such as slowed growing rates and immune disfunction. The sum of harm depends upon the life phase, the species type and other environmental parametric quantities. Salamanders and toads that produce less photolyase, an enzyme that counteracts DNA harm from UVB, are more susceptible to the effects of loss of the ozone bed. Exposure to ultraviolet radiation may non kill a peculiar species or life phase but may do terrible harm to it. How to cite Ecological Interaction Of Humans And Reptiles Environmental Sciences Essay, Essay examples

Catholic Education Leadership Internationally †MyAssignmenthelp

Question: Discuss about the Catholic Education Leadership Internationally. Answer: Introduction: There has been lack of proper education for those people who are poor and unprivileged in the Country of Australia therefore many students struggle to have a better future. The fee charged by the Universities to the International students is a global issue and it is the shred responsibility to bring a change which will be for common good. (Hare 2015). Australia is a Country which gives opportunities to various students all over the World to pursue their career. The Australia has many universities which provide various education facilities to the students. Many students from all over the places like Asia, Africa and Germany come to study in this Country (Charlesworth and Macdonald 2014.). The common good is not being realized by those Universities and those colleges do not give facilities to those people or students who deserve to get the position. Many students dream to study in particular colleges but because of the lack of money and financial conditions they are not able to study in good colleges. There are financial problems and constraints posed on those students and they cannot study in those colleges. The situation becomes bad when they are not able to pay higher than that of the local Australian candidate. There is a partiality between the local candidates and the International candidates. The inequity of fees structure in the Universities are of great concern since there are many students who are good and wants to pursue their career, but they cannot do it because of the high charges imposed by those Universities. Therefore equal opportunity of scholarship and facilitates should be given to them so that they can pursue their future studies (Gibson 2017). First and foremost, the issue of equity needs to be addressed. Australia has the most competitive education system in the world parents with a reasonably high level of disposable income can exercise wide choice. But Australia also has a significant equity issue as schools in communities with low socio-economic status (SES) are the most under-resourced both in facilities and in expert teaching staff. Their students often need targeted assistance and support for those with particular need. As known by us that a basic issue that is being faced by the foreign students those who are coming in Australia are facing the problem of paying a fees which is 400 percent higher than the fees that are being paid by the natives of the country (Gleeson 2015). According to the statistics of the year 2012 almost 299,474 number of students passed out from the universities of Australia and about one third of them are foreigners who have struggled their way through with hard work and dedication. These differences in fees are a major cause of differentiation among the students which sending a wrong message to the foreign students and also hampering the relation and trust (Hulme et al. 2014). There are several problem that is being faced by these students which should be solve to the earliest in order to gain trust of the students. In order to do so there are some initiatives that is needed to be taken. To solve this problem, steps should be taken by the Government as well as those Universities to help the candidates globally to resolve the issue. This discrimination is a big problem which needs to be solved and until and unless all students get united against this problem the issue will not get resolved. They should protest against this discrimination, so that are treated equally along other students who are locals in Australia (Jiang 2014). The Australian government needs to intervene in this problem, to end this discrimination and differentiation between the local and the foreign students. The government should form a body of members who will have a control over the university fees structure. The Government should control the fees structure of the universities of Australia so that there can be an end in the discrimination of fees structure between the locals and the foreign students. This body can further look into the matter that the foreign students does not get discriminated in any way and further helps them for any kind of support in relation to the university and studies. Intervention from the government is very important and this is the easiest way to resolve the issue (McCowan 2016). Until and unless the government of Australia intervenes in the situation there will always be a gap that will exist and this gap will create further differentiation in fees structure. The universities in the name of imparting good knowledge and utilizing there fame are luring the foreign students to pay much higher fees than that is being charged from the local students. This needs to be stopped by the government which may harm the relation with the foreign countries and further loosing the trust and weakening the relation between the students and the universities. The Government of Australia shall lay down certain regulation on the universities so that the students who are coming from different background and different countries having different financial position can pay their fees equal to the local student in Australia. This will help in resolving the issue and fixing the fees structure so that there is no discrimination of the International students with the foreign students (Perry, Lubienski and Ladwig 2016). The universities should come up with scholarship program for the students so that it helps the students. There are number of students who are not financially equipped well enough to pay the fees for the course but are very bright as a student in such a case the scholarship will help the student who is lacking behind financially to support their studies. The scholarship should be awarded upon the merit of the students and their performance so that there should be no discrimination between the students the scholarship is awarded to the deserving student (Probert, 2016). Apart from the scholarship the universities should come-up with different types of earning program such as internships which will create an extra earning for the students so that it become easy for those to support their course fees and side by side they also learn through working. This is a two way benefit program where a student learns while earning. The government of Australia should try their best to support the students who are coming from different countries and are considered to be the best brains that are being drained out from different countries and these youth contribute a lot to the growth of the country. It is the duty of the government to support them so as to attract further youth who may contribute in the countrys growth. They should be given equal opportunity as that of the local student with special support that can equalize the fees structure and help these students to compete with the locals financially. All these students may not come from a financially well built background so it is the duty of the government to take several in initiative so a help them which will help the country in its growth (Wilkins and Stephens Balakrishnan 2013). References Charlesworth, S. and Macdonald, F., 2014. Australias gender pay equity legislation: how new, how different, what prospects?.Cambridge Journal of Economics,39(2), pp.421-440. Gibson, S., Baskerville, D., Berry, A., Black, A., Norris, K. and Symeonidou, S., 2017. Including students as co-enquirers: Matters of identity, agency, language and labelling in an International participatory research study.International Journal of Educational Research,81, pp.108-118. Gleeson, J., 2015. Critical challenges and dilemmas for Catholic Education Leadership internationally.International Studies in Catholic Education,7(2), pp.145-161. Hare, J., 2015. The Australian. Hulme, M., Thomson, A., Hulme, R. and Doughty, G., 2014. Trading places: The role of agents in international student recruitment from Africa.Journal of Further and Higher Education,38(5), pp.674-689. Jiang, K., 2014. International Student Flows between Asia, Australia, and Russia: A Network Analysis.Journal of Contemporary Eastern Asia,13(1). McCowan, T., 2016. Three dimensions of equity of access to higher education.Compare: A Journal of Comparative and International Education,46(4), pp.645-665. Perry, L.B., Lubienski, C. and Ladwig, J., 2016. How do learning environments vary by school sector and socioeconomic composition? Evidence from Australian students.Australian Journal of Education,60(3), pp.175-190. Probert, B., 2016. The era of universal participation in higher education: Australian policy problems in relation to cost, equity and quality.Occasional paper for Higher Education Research and Development Society of Australasia (HERDSA). Retrieved November,8, p.2016. Wilkins, S. and Stephens Balakrishnan, M., 2013. Assessing student satisfaction in transnational higher education.International Journal of Educational Management,27(2), pp.143-156.

Coliform Bacteria Essays - Enterobacteria, Bacteria,

Coliform Bacteria Coliform bacteria are good indicator organisms for the presence of pathogenic bacteria due to their realtionship with these pathogenic bacteria, their relative ease of determination by simple methods, and by their occurrence in large quantities in human feces. The MPN method used in this experiment is one of the prescribed techniques for the determination of these coliform bacteria from the Standard Methods for the Examination of Water and Wastewater as prescribed by the EPA. It consists of three stages, each of which necessitates a positive result for the previous stage. The first stage (presumptive test) determines the gas-producing coliform characteristic during lactose-fermentation. The second stage (confirmed test), determines the gram-reaction and also the lactose fermentation abilities of the organism, while the last stage (completed test) determines the endospore presence to determine if the organisms in the sample indeed are coliforms. The number of coliforms or bacteria present is readily seen with the use of a special table and then the statistically estimated numbers are determined. The samples, however, did not produce positive results for the presence of coliforms. Enventhough there was a large MPN value for one of the samples, about 1100 MPN per 100 ml, the sample still tested negative in the last stage. It is therefore suffice to say that the samples did not present any health risks for humans. Future researchers should, however, device or perform other more specific procedures due to the fact that there might have been still coliforms present but these may have been negated by possible endospore-forming relatives. Introduction Human health has always been a hard condition to preserve and the detection and control of pathogens in the environment have been the very key to the success of the human race. Although microbial pathogens are relatively few in comparison to the total number of microorganisms, their detection have been made easy with the use of indicator organisms. Indicator organisms give researchers the benefit of making good assumptions on the presence of pathogens before the pathogens multiply in distressing numbers. For a microbe to be accepted as an indicator organism, it must be present in human feces in large amounts so much so that the presence of these bacteria in a given sample would already point to human fecal contamination. It was reasoned that the largest amount of pathogens was present in human feces, and thus, the indication of the entry of large amounts of human waste, from healthy persons or not, already indicate a great risk (NCSU). Also, indicator organisms must be present wherever and whenever the pathogen organisms are present. More importantly, these indicator organisms must be easily detectable in samples and tests for the measurement of their numbers must be simple enough (Tortora et al. 1995). Coliform bacteria fit all the requirements and are even safe to handle in the laboratory. Coliform bacteria are gram-negative and non-spore/endospore forming bacteria, which include aerobes and facultative anaerobes, and when incubated at 35?C with lactose in the media, will evolve gas (CO2) within 48 hrs, like Escherichia, Klebsiella, Citrobacter and Enterobacter (NCSU). They are also prevalent in the colon and intestinal tract (but not all groups are present) of warm-blooded mammals, including man (Anderson et al. 1998). They are also related to pathogenic bacteria in that a large number of these coliform bacteria usually imply the presence of some pathogenic bacteria (Frank). These characteristics of coliform bacteria already suffice the conditions outlined for these organisms to be classified as indicator organisms. They occur in large amounts in human feces, in fact, humans excrete billions of these coliforms (called fecal coliforms). They are present whenever and wherever the pathogen organisms are present. More importantly, their presence is easily detected as their characteristics are easily tested with the use of simple procedures like gram-staining, endospore-staining and lactose fermentation tests. These principles and procedures now form the basis and the rationale for the methods by which this experiment was conducted. Actually, the use of coliform bacteria as indicators of the presence of pathogenic bacteria is not new already. It as been established since 1880, and because of their reliability as indicator organisms, the procedures have not changed much and have only geared on specifically measuring the amount of fecal coliforms by use of special growth media and techniques. Today, the basis of the Standard Methods for the Examination of Water and Wastewater that are being used (also in this experiment) have been specified by the Environmental Protection Agency (EPA) (NCSU). There are several methods prescribed by the EPA and although the Most Probable Number (MPN) method is not the most

Forum Example

Forum Example Forum – Book Report/Review Example THE ARGUMENT CULTURE: MOVING FROM DEBATE TO DIALOGUE One word to describe the book: Remarkable The argument culture is an amazing book that will forever restructure how we perceive and communicate with the world. In the book, Dr. Tannen argues that American discourse has become submersed with numerous conflicts and that â€Å"the argument culture: moving from debate to dialogue† promotes an adversarial frame of mind. The book illustrates examples of warlike metaphoric language that is heard daily. These metaphors include: the war on cancer, the war on drugs, turf battle among politicians, the battle of sexes among others (Tannen, 45). These metaphors spread through our talk and influence the way we think. The early chapters of the book focus on the media, indicating how famous programs like Crossfire knowingly and irresponsibly frame problems in terms of diametrically opposed sides. This, according to Tannen, has compromised the quality of information received. In the politic al arena, she pin-points an increasingly warring mentality, whether during confirmation hearings, at the election period, or without more ado following the president’s State of the Union makes a speech when the response from the opposition must always be presented (Tannen, 257). Throughout the book, she shows how deeply entrenched this cultural practice is, its form, and how it directly or indirectly affects our daily lives; either in a positive or a negative way. Tannen argues that legal action tries to find solutions to problems by purposely pitting one side against another, and finds basic patterns of violent response in various settings such as schools. In conclusion, this book is not an assault of the argument culture, but it acts as a highway for argument culture, opposition and debate in public discourse (Tannen, 302).ReferencesTannen, Deborah. The Argument Culture: Stopping Americas War of Words. New York: Ballantine Books, 1999. Internet resource.

Evaluate the role that both emotional intelligence and gender play in Essay - 1

Evaluate the role that both emotional intelligence and gender play in influencing an organisations leadership style - Essay Example Moreover, understanding emotions involves how varieties of perceived emotions have different meaning such as angry emotions and their meaning. Lastly, managing emotions involves ability to regulate these emotions and responding appropriately to the perceived emotions (Robitaille and Union Institute and University, 2008, p. 28). Gender includes male and female; leadership has been a male-dominated area for a long time, forcing women to hold minority positions. According to Carli and Eaglya (2003, p. 808), leadership has been assumed to be a masculine task; however, the feminine qualities of co-operation and mentoring have been ignored. It is important to note that men as well as women can be effective in leadership as long as they portray good leadership qualities and adopt an effective leadership style. Needless to say, being more emotionally competent fosters growth in any given task, despite the gender. This essay will discuss the role played by emotional intelligence and gender in influencing an organization’s leadership style. Emotional intelligence is vital in leadership, as it assists the present leaders in dealing with the challenges that arise. According to Gruszka, Matthews and Szymura (2010, p.109), â€Å"intelligence represents an individual’s overall level of intellectual ability.† Needless to say, emotionally intelligent traits are on demand in organizations. According to Sykes (2008, p.3), emotional intelligence traits are vital in solving problems and making effective decisions when managing people in the place of work. Today, majority of organizations do not accept the dictatorial style of leadership, and therefore, leadership is evolving and adapting the democratic style of leadership. As a result, an empowered workforce exists, which requires a matching leadership style; it is rather evident that leadership effectiveness is determined by the type of leadership style used. Mis-using, under-using, or

Economic Implications of Proposed Regulations Essay

Economic Implications of Proposed Regulations - Essay Example The set of regulations was published in December 2009, to which reactions and comments were solicited from financial institutions and market participants worldwide. On April 16, 2010, the set date for the submission of all commentary, nearly 300 different opinions were submitted representing hundreds of financial institutions, investor associations, and regulatory agencies throughout the world. The original text of these commentaries was released for public viewing on May 1, 2010, in the internet website of the Bank for International Settlements, the organization of all central banks worldwide. This dissertation represents the first attempt to collate and analyze the contents of the submitted commentary and gains insights into the nature of international banking regulations and the workings of the global market economy. Chapter 1 provides an introduction to the research undertaken, by presenting a background of the research situation, the objective to be met and the questions the research answered in order to fulfill the objective, the manner in which the research will be carried out, and a brief discussion of the importance of the research undertaking. The financial crisis that has affected the world economy from mid-2008 to the present has opened the old economic debate that has gripped the leading world economies since the dawn of the twentieth century, namely the role that government regulation should ideally play in the determination of economic policy. Two opposing schools of thought have at one time or another guided economic development since the end of World War II. President Franklin Delano Roosevelt’s US post-war economy was dominated by the Keynesian economic principle of the planned economy.

Research Project Paper Example | Topics and Well Written Essays - 1500 words - 1

Project - Research Paper Example Even though both sexes carry the mutation, the females rarely exhibit the signs of the disease. The symptoms may be visible in early infancy and appear in male children before the age of 6. Laboratory testing can establish the children who carry the active mutation at birth (Dalkilic & Kunkel, 2003). At first, progressive proximal muscle weakness of the pelvis and legs that are associated with a loss in muscle mass. Eventually, this weakness spreads to the neck, arms and other areas. The early signs consist of enlargement of the deltoid and calf muscle, difficulties in standing without help, and low endurance. As the condition progresses, there is wasting of the muscle tissue. By the age of 12, most patients are usually dependent on the wheel chair. Symptoms that occur in the later stage include abnormal development of the bone that leads to deformities of the skeleton. As a result of muscle deteroriation, there is occurrence of the loss of movement, in the long run it leads to paralysis. The average life expectancy for the DMD patients is about 25 years. The diagnoses of the disease include DNA testing, muscle biopsy, and prenatal tests. First, the muscle-specific isoform of the dysrtophin gene is made up of 79 exons. DNA tests and analysis determine the particular type of mutation of the exon (s) that is affected. Secondly, muscle biopsy entails extraction of a small sample of muscle tissue. A dye is then applied to reveal the presence of the dystrophin. Lastly, prenatal tests establish if the unborn child has the most common mutations. The X-linked recessive gene carries the DMD. Males have one X chromosome implying that one copy of the mutated gene will lead to DMD. The mutation is transferred by the mother since fathers cannot pass the X-linked traits to their sons. When the mother is a carrier, one of her X chromosomes has a DMD mutation. In that respect, there is 50 % chance that the

Development of the Caspian Oil and Gas Sector

Development of the Caspian Oil and Gas Sector Caspian Oil Gas Role of FDI in Economic Development of Azerbaijan, Kazakhstan and Turkmenistan Abstract This paper underlines the foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and its role in economic development of each country. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. The first part of this paper overviews the Caspian region and its oil and gas reserves. More specifically this part summarises the role of foreign direct investment in oil and gas industry and how it promotes economic development of Caspian basin countries, namely Azerbaijan, Kazakhstan and Turkmenistan. The second part presents the theoretical framework of foreign direct investment. This part also reviews the previous empirical findings on types, determinants and motives of foreign direct investment. The part 3 comparatively analysis foreign direct investment performance in selected countries and factors which may influence the ability of a country to attract foreign investment. This part also overviews the investment climates in Azerbaijan, Kazakhstan and Turkmenistan. Part 4 concludes. Key Words: FDI, Caspian Sea region, Oil and Gas, Azerbaijan, Kazakhstan, Turkmenistan. 1 Introduction The Overview of the Caspian Sea Region It is wide recognized that foreign direct investment (FDI) can play an important role in the development process of many countries and it is much required. Economies in transition, such as those in Central Asia and the Caucasus, are no exception as they realize the important role of FDI in strengthening their transition process. While some of them have sizable deposits of oil, gas and minerals which are major attractions to foreign investors, others, being less endowed, have more difficulty to attract FDI to their fledgling industrial and service sectors. But in even those countries which are well endowed with natural resources, there is a thrust to diversify their economies away from over-dependence on those resources and to develop viable value-added manufacturing industries and services. FDI can play a major catalytic role in this process. Just a decade years ago the areas on each side of the Caspian Sea – Central Asia to its east side and the Transcaucasia to its west were largely unknown. These regions were provinces of the Soviet Empire important to the outside world neither politically nor economically. Now its is well known that the Caspian Sea is largest land-locked body of water on Earth, bordered by Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran – the Caspian basin countries (see Map 1). Amongst the five countries only Iran is a member of the Organization of Petroleum Exporting Countries. Kazakhstan, Azerbaijan and Turkmenistan became independent after collapse of Soviet Union in 1991. Once a centre of global commerce, the Caspian Sea region has languished in obscurity ever since the rise of the sailing ship rendered the Silk Road obsolete a half millennium ago (Olcott, 1998). After discovery of oil and gas resources in the Caspian offshore and shore areas, this region became very important oil and gas sector in global context. Moreover, owing to energy security and geopolitical reasons, the Caspian region became very attractive for the West. Azerbaijan became one of the world’s first oil sectors after crude oil production started in Baku in the middle of 19th century. The oil production in Central Asia started in the beginning of the 20th century. Azerbaijan recorded about 70% of Soviet oil production by end of 1940. The former Soviet Union controlled almost all natural resources in Soviet Republics. At the time of their independence, Soviet republics were quasi-states (Olcott, 1998). Each republic has its own president and prime minister, local and national legislatures. The political and economic liberalisation of the Soviet Union in the mid-1980s attracted foreign investors and oil and gas companies interested in exploration and production prospects. The collapse of the Soviet Union gave further opportunities for the liberalisation of investment regulations. By the late 1990s the Caspian region was comparatively politically stable region, and a number of countries significantly improved investment regimes to their oil and gas sectors. Historically, energy industry in Azerbaijan, Russia, Kazakhstan, Turkmenistan and Uzbekistan is very important sector for the economy growth of these countries. However, poor management of natural resources and poor investment climate in these countries lead to disparities emergent between the countries in socio-economic terms. Nowadays, it is well recognized that foreign investment plays a vital role in the development of the oil and gas sector for such countries as Azerbaijan, Kazakhstan and Turkmenistan and significantly stimulates social and economic development of each of these countries. 1.2 Research Questions The presence of potentially vast oil and gas reserves is a part of the foreign investment attraction into the Caspian Sea region. On the other hand, it is important to note that while the quantity of proven reserves undoubtedly plays a significant role in estimating a region’s production and export potential, the other decisive factors for attraction foreign direct investment into this region are undeveloped market, cheap labour and cheap inputs and weak competition. This paper focuses on foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan; and on what foreign direct investment strategy in each country are based. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and performance by each country. The significant number of researches in regard to foreign direct investment mostly explains the investment strategy in the developed countries, when limited study has done on investment in less-developed countries or emerging countries. The selected countries Azerbaijan, Kazakhstan and Turkmenistan are transition countries and to a certain extent new participants in the competition to attract foreign investment. These countries can offer many potential advantages to foreign investor, especially in oil and gas sector of business. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. There is no much research which explores the determinants of investment in Azerbaijan, Kazakhstan and Turkmenistan, the stereotypes and perceptions that foreign investors have about these countries and what could be done to increase the foreign direct investment flow into these countries. This paper surveys these parts by investigating the multinational oil companies operating in Azerbaijan, Kazakhstan and Turkmenistan. The data from different energy agencies were gathered for comparative analysis of oil and gas data as well as foreign direct investment in different countries. This would not only let one to have a picture of various state strategies related to foreign investment, but could also provide the valuable outlook of the most advantageous approach for transition countries in doing business with foreign investors. 1.3 The Legal Status of Caspian Sea A large share of oil and gas reserves in Central Asia and Caucasus are thought to lie under he Caspian Sea. The question of the ownership of those resources, including the right to license and tax their development, is being argued by the Caspian littoral countries. The legal debate over the Caspian Sea can be tracked back to the 1921 Treaty to Moscow, reaffirmed in 1935, which declared that the inland Caspian Sea belonged to Russia (Kemp, 2000). Later Russia sent a note to the United Nations dated from 5th October 1994, where Russian Ministry of Foreign Affairs stated that the Caspian Sea should not be subject to the provisions of international maritime law (International Energy Agency, 1998). The importance of the application of international law is that a â€Å"sea† under the 1982 Law of the Sea Convention would be subject to separation into national zones for the development of its mineral resources. Russia stated that until all five of the Caspian littoral states (Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran) came to a common decision on some other arrangement, the legal status of the Caspian Sea was subject only to the provisions of the more general (Treaty of Friendship between Iran and the USSR of 26 February 1921 and Treaty between Iran and the USSR on Trade and Maritime Navigation of 26 March 1940). Nevertheless, the ongoing legal uncertainty does not seem considerably decreased foreign investment in the Caspian Sea region. Advantageous geological prospects, with potential of a major oil and gas resource base, show significant motivations for companies to invest in this important producing region, preferably from the beginning of its development. 1.4 Current Production and Proven Reserves in Caspian Region Caspian oil presents a lot of opportunities for world oil markets and for the region itself (Energy Charter Secretariat, 2008): The appearance of new production sources would expand world oil supplies. Major quantities of Caspian oil would ease the pressure on the Persian Gulf production capacity and provide an additional hedge against oil supply disruptions Profits from oil exports could stimulate economic growth and improve the standard of living in the Caspian energy-rich counties. The availability of Caspian energy supplies in world markets will likewise improve the prospects for economic growth and political stability in the Caspian basin countries. Nowadays the Caspian Sea region is important, but not major supplier of crude oil to world markets, based upon estimates by British Petroleum (BP) and the Energy Information Administration (EIA). In 2005 the Caspian region produced 2.1 million barrels per day, or 2 per cent of total world production (see Table 1). Kazakhstan’s production rapidly increased since the late 1990s, accounted for 67 per cent and Azerbaijan for 22 per cent of regional crude oil production in 2005. The Caspian Sea region’s comparative contribution to world natural gas supplies is larger than that for oil. Gas production of 3.0 trillion cubic feet per year in 2005 was 3 percent of world production (Energy Information Administration, 2006). Turkmenistan is the largest producer; with production of 2.0 trillion cubic feet per year, it accounts for almost two-thirds of the region’s gas production. (see Figure 1). Unlike oil, the region’s proven reserves of natural gas are a higher proportion of the world total than is its natural gas production. The estimate of proven reserves of natural gas in the Caspian Sea region for the end of 2006 published by Energy Information Administration is 232 trillion cubic feet per year, which represents 4 per cent of the world total (see Table 2). Table 1Oil Production in the Caspian Sea Region 1. Proven reserves are defined by the EIA 2. Possible reserves 3. Other estimates (EIA/IEO 2006) 3.45 million barrels per day, (World Oil, 10 March 2004) 3 million ^Only Caspian area oil and gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Table 2Gas Production in the Caspian Sea Region ^Only Caspian area gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Figure 1 Gas Production in Caspian Sea region (1992-2004) Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. 1.5 Role of Oil and Gas in the Economic Development of Caspian Region The development of oil and gas resources in the Caspian region is mostly important for the development of economies in the Central Asian and Transcaucasia. In 1995 the energy sector’s share of gross domestic product (GDP) was an estimated 14.6 percent in Azerbaijan, 10.1 percent in Kazakhstan, 10.2 percent in Turkmenistan (International Energy Agency, 1998). Foreign investment attracted to the oil and gas sector in Caspian region could offer significant profits for the region’s governments and stimulate investment in other economic sectors. The attract foreign investment the host Governments should take discreet measures to ensure the development of an sufficient legal and administrative infrastructure, including institution building and personnel training, to handle the inflow of oil related revenues and to help ensure the countries’ efficient and equitable development. International Monetary Fund (2003) expressed concerns that unless regional governments introduce further administrative reforms, they risk being overwhelmed by new oil wealth. Particularly, corruption is a peril. Economic development motivated by foreign investment in the oil and gas industry helps to guarantee the financial independence of the Central Asian and Transcaucasian states. The transition to the market economy and the economic dislocations originated by collapse of Soviet Union left Azerbaijan, Kazakhstan and Turkmenistan without adequate funds to develop oil and gas resources. Governments of these countries are looking for private investment (mainly from foreign companies) that would play significant role in the development of oil and gas industry. Besides financial capital, a foreign investor brings a modern technology to local industry, including environmentally sound production techniques and modern management approaches. The Caspian Sea region countries are competing with each other for foreign investment. Oil and gas companies have a wide choice of where to make investment. The foreign investor considers the opportunities that offer the best financial returns. However, the investment climate is vital for company’s decision on where to invest. As a result, Kazakhstan and Azerbaijan took considerable steps in creating attractive investment climates. Kazakhstan concentrated on building a body of law applicable to all projects, while Azerbaijan focused primarily on modified production sharing agreements (International Monetary Fund, 2003). By the beginning of 1998, cumulative foreign direct investment in the oil and gas sectors of Central Asia and Transcaucasia had reached an estimated 3 billion of American dollars, nearly one third of which was placed in 1997. Future investment commitments in the region from contracts already signed total over 40 billion of America dollars (International Energy Agency, 1998). So far most foreign investment has been in Kazakhstan and Azerbaijan. Gas-endowed Turkmenistan started to attract foreign investment later than the others due to Government dictatorship and poor investment climate. Caspian oil development has gained a great deal of political and commercial momentum since the first foreign companies came there at the end of 1980s (Ruseckas, 2000). Since then the most important external factor influencing Caspian oil development is the price of oil. Principally if oil prices remain at present high level it is possible the more optimistic projects will be started. The Caspian Sea region could possibly produce approximately 4 million barrels per day by 2010. In any case, the Caspian Sea states require a stable legal regime to develop, produce, transport and market its natural resources. 1.5.1 Summary data on Azerbaijan Owing to extensive oil reserves, Azerbaijan is a major oil producer since the middle of the last century. Between 1990 and 1995 Azerbaijan’s gross domestic product dropped 58 percent (International Energy Agency, 1998). Oil production fell by only 25 percent mainly because of continuing oil product exports to neighbouring countries and an increasing use of heavy fuel oil in domestic power stations to alternative for imported gas. Due to the tightening of monetary and budgetary policies, the fiscal deficit dropped from 11.4 percent of gross domestic product in 1995 to less than 2 percent in 1996. In 2006 Azerbaijans real gross domestic product grew by 31 percent when the oil production in this region significantly increased. Azerbaijans anticipate for sustained economic growth is in its managing of large oil and natural gas resources in the Caspian Sea region, through effective management of the resulting revenue stream, and non-oil sector diversification (Energy Information Administration, 2006). During the beginning of transition most Azerbaijan onshore oil fields were in decline and required momentous new investment to develop large-scale offshore projects and to reconstruct existing fields. Since independence Azerbaijan signed several agreements with foreign oil companies. While maintaining full state ownership over energy companies, Azerbaijan was quick to invite foreign investors to assume a direct role in the development of its hydrocarbon reserves (Thompson, 2004). In 1992 most of the Azerbaijan oil sector assets were merged in two state oil companies – Azerineft and Azneftkimiya. The new merger was called the State Oil Company of the Azerbaijan Republic or SOCAR. While Government organizations handle production and exploration agreements with foreign companies, SOCAR is body to all international companies developing new oil and gas projects in Azerbaijan. After the first commercial oil flows through the Baku-Tbilisi-Ceyhan pipeline during summer 2006 and the increasing oil production from the Azeri-Chirag-Guneshli project, oil revenues are expected to contribute to a doubling of Azerbaijan’s gross domestic product by 2008 (Thompson, 2004). Energy Information Administration (2007) reports that though the oil sector represented around 10 percent of Azerbaijan’s gross domestic product in 2005, it is already projected to double to almost 20 percent of gross domestic product in 2007 (see Table 3). To manage the revenues, former President of Azerbaijan Heydar Aliyev formed a State Oil Fund in 1999, which is designed to use money obtained from oil-related foreign investment for poverty reduction, education and raising rural living standards. As of the end of 2006, the State Oil Fund reported assets of almost 2 billion US dollars, but the fund’s assets are expected to increase to 36 billion US dollars by 2010 (Energy Information Administration, 2006). Table 3Azerbaijan: Economy and Energy (in millions US dollars) 2003 2004 2005 2006 2007 2010 Oil Production (thousand barrels per day) 320 319 441 648 860 1,300 Oil Exports (thousand barrels per day) 215 204 314 521 721 N/A Foreign Direct Investment 3,285 3,556 1,680 -219 -4,750 476 FDI in Oil Sector 3,246 3,461 1,459 -573 -5,198 366 Oil Sector Revenue 886 946 1,337 2,921 5,272 19,417 As share of total rev (%) 42% 38% 39% 51% 59% N/A As share of total GDP (%) N/A N/A 9.8% 15% 19.7% 43.3% Oil Fund Assets 816 972 1,394 1,936 3,093 36,387 Source: Energy Information Administration: Short Term Energy Outlook, 2007; International Monetary Fund (IMF), Article IV Consultation, Staff Report, No 07/191, June 2007 1.5.2 Summary Data on Kazakhstan As it was the case in most other former Soviet Union countries, Kazakhstan’s first attempts at economic reform were effectively taken in response to Russias one-sided price reforms in 1992. After Kazak oil production had suddenly declined for two years in the end of 1993, inflation had out of control. The efforts to create an economic union with Russia and other former Soviet Union countries didn’t meet expectations of the Kazakh Government. Looking at the dynamic Asian economies as a model, the Kazakh Government turned to market style policies. However, the government increased hard budget constraints and restrictive monetary policies due to attempts to solve non-payment problem through state financing. The remained net debts after netting out inter-industry arrears were financed from Government budget and the central bank. In 1993 International Monetary Fund (IMF) granted Kazakhstan a one-year standby package. To maintain IMF collaboration and to stop the decline in gross domestic product, the Kazakh government implemented a second stabilisation program in 1995. But this time hard budget constraints and monetary policy were strengthened by excluding of government financing of net positions in inter-enterprise debts and retreating government guarantees for loans granted by foreign and domestic banks. In the middle of 1996, the International Monetary Fund approved an Extended Fund Facility (EFF) of 446 million US dollars for three years (IMF, 2003). According to International Monetary Fund (2003) the decision was made in light of a wide-ranging three-year reform programme submitted by the government, as well as the positive longer term prospects for production and exports of energy and non-ferrous metals. In 1996, Kazakhstan experienced its first positive economic growth since 1989. 1.5.3 Summary Data on Turkmenistan Preceding the collapse of the Soviet Union approximately 8 percent Turkmenistan’s gross domestic product was generated by gas exports to the rest of the USSR mostly to Belarus, Ukraine and the Caucasus. Another 5 percent of gross domestic product was earned from cotton exports. Gas and cotton exports continue to be used to cover the import of considerable amounts of grain and capital equipment from other former Soviet Republics. While estimates for the fall of gross domestic product between 1990 and 1995 vary depending on how adjustments to official gross domestic product are made, International Monetary Fund and European Bank of Reconstruction and Development agree on about -35 percent (IMF, 2003). This is much less than the 58 percent drop in Turkmen gas production. The rest of the economy is basically agricultural. The cotton industry has been less affected by the downfall of the Soviet Union. The government gradually liberalised some prices beginning in 1992. A presidential decree of 1995 removed price controls on all products except for about 50 items, including energy. The government introduced the manat as the national currency in 1993. In 1995 it unified the previously separate official and commercial exchange rates, which subsequently became determined by inter-bank auctions for foreign exchange. Between 1992 and 1995 the government compensated for the shortfall in revenue from taxes on gas production and exports by cutting expenditures and replacing subsidies to the economy with additional allocations of credit at largely negative interest rates. Controlled prices were adjusted repeatedly but declined in real terms for natural gas and for oil products through 1994. The share of gas related revenues in the central budget declined from 60 percent in 1992 to under 20 percent in 1995, which lowered the share of total budgetary revenue in GDP from 40 percent to 10 percent during this period. Due to drastic expenditure cuts in government wages and investment, including maintenance, the central budget deficit remained fairly stable over this period. It also helped that new excise taxes were introduced in 1995 on petrol (55 percent) and diesel (60 percent). This resulted in some recovery of government capital spending. The easy money policy was changed slowly in 1995 and 1996. During this time foreign exchange surrender requirements of state-owned enterprises to the Foreign Exchange Reserve Fund (FERF) were increased to 50 percent for gas and oil exports, and the money allocated directly to the central budget. Prior to that, this fund had been used to award credits to the economy, contributing to monetary expansion. In 1995 and 1996, bank credit allocation was reduced, real interest rates rose (due to credit auctions with deregulated interest rates), and reserve requirements for banks were increased. However, the pursuit of these policies was not smooth, in part due to the limited political autonomy of the Central Bank. Nevertheless, inflation decelerated by 50 percent towards the end of 1995 and is estimated to have been 445 percent in 1996, and 21 percent in 1997. Despite plummeting gas exports in recent years, Turkmenistan’s current account was slightly positive in 1994 and 1995, as long as arrears owed to the country are not taken into account. If such arrears are counted the 1995 balance swings from an estimated surplus of 54 million US Dollars to a deficit of 289 million US Dollars. The situation has probably continued to deteriorate due to weak gas exports. 2 Theoretical Frameworks 2.1 Overview of Foreign Direct Investment Theories There is variety of empirical studies on theoretical models explaining foreign direct investment (FDI) and its determinants. The various approaches from different disciplines such as economics, international business, organisation and management explain numerous characteristics of this phenomenon. The following dissimilar methods, explaining foreign direct investment as the location decision of multinational enterprises are mostly acknowledged in empirical literature on FDI: Ownership advantages as determinants of foreign direct investment (including monopolistic advantage and internalisation theory) based on imperfect competition models and the view that multinational enterprises (MNEs) are firms with market power (Hymer, 1960; Buckley and Casson, 1979; Kindleberger, 1969; Caves, 1971 for ownership advantages) Determinants according to the Neoclassical Trade Theory and the Heckscher-Ohlin model, where capital moves across countries due to differences in capital returns (for example Markusen et al, 1995,pp. 98-128; Aliber, 1970); Determinants of foreign direct investment in Dunning’s ownership-location-internalization (OLI) framework, which brought together traditional trade economics, ownership advantages and internalisation theory (Dunning, 1977; 1979); Determinants of foreign direct investment according to the horizontal FDI model or Proximity- Concentration Hypothesis (Krugman, 1983; Markusen, 1984; Ethier, 1986; Horstmann and Markusen, 1992; Brainard, 1993); Determinants of foreign direct investment according to the vertical FDI model, Factor-Proportions Hypothesis or the theory Development of the Caspian Oil and Gas Sector Development of the Caspian Oil and Gas Sector Caspian Oil Gas Role of FDI in Economic Development of Azerbaijan, Kazakhstan and Turkmenistan Abstract This paper underlines the foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and its role in economic development of each country. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. The first part of this paper overviews the Caspian region and its oil and gas reserves. More specifically this part summarises the role of foreign direct investment in oil and gas industry and how it promotes economic development of Caspian basin countries, namely Azerbaijan, Kazakhstan and Turkmenistan. The second part presents the theoretical framework of foreign direct investment. This part also reviews the previous empirical findings on types, determinants and motives of foreign direct investment. The part 3 comparatively analysis foreign direct investment performance in selected countries and factors which may influence the ability of a country to attract foreign investment. This part also overviews the investment climates in Azerbaijan, Kazakhstan and Turkmenistan. Part 4 concludes. Key Words: FDI, Caspian Sea region, Oil and Gas, Azerbaijan, Kazakhstan, Turkmenistan. 1 Introduction The Overview of the Caspian Sea Region It is wide recognized that foreign direct investment (FDI) can play an important role in the development process of many countries and it is much required. Economies in transition, such as those in Central Asia and the Caucasus, are no exception as they realize the important role of FDI in strengthening their transition process. While some of them have sizable deposits of oil, gas and minerals which are major attractions to foreign investors, others, being less endowed, have more difficulty to attract FDI to their fledgling industrial and service sectors. But in even those countries which are well endowed with natural resources, there is a thrust to diversify their economies away from over-dependence on those resources and to develop viable value-added manufacturing industries and services. FDI can play a major catalytic role in this process. Just a decade years ago the areas on each side of the Caspian Sea – Central Asia to its east side and the Transcaucasia to its west were largely unknown. These regions were provinces of the Soviet Empire important to the outside world neither politically nor economically. Now its is well known that the Caspian Sea is largest land-locked body of water on Earth, bordered by Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran – the Caspian basin countries (see Map 1). Amongst the five countries only Iran is a member of the Organization of Petroleum Exporting Countries. Kazakhstan, Azerbaijan and Turkmenistan became independent after collapse of Soviet Union in 1991. Once a centre of global commerce, the Caspian Sea region has languished in obscurity ever since the rise of the sailing ship rendered the Silk Road obsolete a half millennium ago (Olcott, 1998). After discovery of oil and gas resources in the Caspian offshore and shore areas, this region became very important oil and gas sector in global context. Moreover, owing to energy security and geopolitical reasons, the Caspian region became very attractive for the West. Azerbaijan became one of the world’s first oil sectors after crude oil production started in Baku in the middle of 19th century. The oil production in Central Asia started in the beginning of the 20th century. Azerbaijan recorded about 70% of Soviet oil production by end of 1940. The former Soviet Union controlled almost all natural resources in Soviet Republics. At the time of their independence, Soviet republics were quasi-states (Olcott, 1998). Each republic has its own president and prime minister, local and national legislatures. The political and economic liberalisation of the Soviet Union in the mid-1980s attracted foreign investors and oil and gas companies interested in exploration and production prospects. The collapse of the Soviet Union gave further opportunities for the liberalisation of investment regulations. By the late 1990s the Caspian region was comparatively politically stable region, and a number of countries significantly improved investment regimes to their oil and gas sectors. Historically, energy industry in Azerbaijan, Russia, Kazakhstan, Turkmenistan and Uzbekistan is very important sector for the economy growth of these countries. However, poor management of natural resources and poor investment climate in these countries lead to disparities emergent between the countries in socio-economic terms. Nowadays, it is well recognized that foreign investment plays a vital role in the development of the oil and gas sector for such countries as Azerbaijan, Kazakhstan and Turkmenistan and significantly stimulates social and economic development of each of these countries. 1.2 Research Questions The presence of potentially vast oil and gas reserves is a part of the foreign investment attraction into the Caspian Sea region. On the other hand, it is important to note that while the quantity of proven reserves undoubtedly plays a significant role in estimating a region’s production and export potential, the other decisive factors for attraction foreign direct investment into this region are undeveloped market, cheap labour and cheap inputs and weak competition. This paper focuses on foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan; and on what foreign direct investment strategy in each country are based. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and performance by each country. The significant number of researches in regard to foreign direct investment mostly explains the investment strategy in the developed countries, when limited study has done on investment in less-developed countries or emerging countries. The selected countries Azerbaijan, Kazakhstan and Turkmenistan are transition countries and to a certain extent new participants in the competition to attract foreign investment. These countries can offer many potential advantages to foreign investor, especially in oil and gas sector of business. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. There is no much research which explores the determinants of investment in Azerbaijan, Kazakhstan and Turkmenistan, the stereotypes and perceptions that foreign investors have about these countries and what could be done to increase the foreign direct investment flow into these countries. This paper surveys these parts by investigating the multinational oil companies operating in Azerbaijan, Kazakhstan and Turkmenistan. The data from different energy agencies were gathered for comparative analysis of oil and gas data as well as foreign direct investment in different countries. This would not only let one to have a picture of various state strategies related to foreign investment, but could also provide the valuable outlook of the most advantageous approach for transition countries in doing business with foreign investors. 1.3 The Legal Status of Caspian Sea A large share of oil and gas reserves in Central Asia and Caucasus are thought to lie under he Caspian Sea. The question of the ownership of those resources, including the right to license and tax their development, is being argued by the Caspian littoral countries. The legal debate over the Caspian Sea can be tracked back to the 1921 Treaty to Moscow, reaffirmed in 1935, which declared that the inland Caspian Sea belonged to Russia (Kemp, 2000). Later Russia sent a note to the United Nations dated from 5th October 1994, where Russian Ministry of Foreign Affairs stated that the Caspian Sea should not be subject to the provisions of international maritime law (International Energy Agency, 1998). The importance of the application of international law is that a â€Å"sea† under the 1982 Law of the Sea Convention would be subject to separation into national zones for the development of its mineral resources. Russia stated that until all five of the Caspian littoral states (Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran) came to a common decision on some other arrangement, the legal status of the Caspian Sea was subject only to the provisions of the more general (Treaty of Friendship between Iran and the USSR of 26 February 1921 and Treaty between Iran and the USSR on Trade and Maritime Navigation of 26 March 1940). Nevertheless, the ongoing legal uncertainty does not seem considerably decreased foreign investment in the Caspian Sea region. Advantageous geological prospects, with potential of a major oil and gas resource base, show significant motivations for companies to invest in this important producing region, preferably from the beginning of its development. 1.4 Current Production and Proven Reserves in Caspian Region Caspian oil presents a lot of opportunities for world oil markets and for the region itself (Energy Charter Secretariat, 2008): The appearance of new production sources would expand world oil supplies. Major quantities of Caspian oil would ease the pressure on the Persian Gulf production capacity and provide an additional hedge against oil supply disruptions Profits from oil exports could stimulate economic growth and improve the standard of living in the Caspian energy-rich counties. The availability of Caspian energy supplies in world markets will likewise improve the prospects for economic growth and political stability in the Caspian basin countries. Nowadays the Caspian Sea region is important, but not major supplier of crude oil to world markets, based upon estimates by British Petroleum (BP) and the Energy Information Administration (EIA). In 2005 the Caspian region produced 2.1 million barrels per day, or 2 per cent of total world production (see Table 1). Kazakhstan’s production rapidly increased since the late 1990s, accounted for 67 per cent and Azerbaijan for 22 per cent of regional crude oil production in 2005. The Caspian Sea region’s comparative contribution to world natural gas supplies is larger than that for oil. Gas production of 3.0 trillion cubic feet per year in 2005 was 3 percent of world production (Energy Information Administration, 2006). Turkmenistan is the largest producer; with production of 2.0 trillion cubic feet per year, it accounts for almost two-thirds of the region’s gas production. (see Figure 1). Unlike oil, the region’s proven reserves of natural gas are a higher proportion of the world total than is its natural gas production. The estimate of proven reserves of natural gas in the Caspian Sea region for the end of 2006 published by Energy Information Administration is 232 trillion cubic feet per year, which represents 4 per cent of the world total (see Table 2). Table 1Oil Production in the Caspian Sea Region 1. Proven reserves are defined by the EIA 2. Possible reserves 3. Other estimates (EIA/IEO 2006) 3.45 million barrels per day, (World Oil, 10 March 2004) 3 million ^Only Caspian area oil and gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Table 2Gas Production in the Caspian Sea Region ^Only Caspian area gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Figure 1 Gas Production in Caspian Sea region (1992-2004) Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. 1.5 Role of Oil and Gas in the Economic Development of Caspian Region The development of oil and gas resources in the Caspian region is mostly important for the development of economies in the Central Asian and Transcaucasia. In 1995 the energy sector’s share of gross domestic product (GDP) was an estimated 14.6 percent in Azerbaijan, 10.1 percent in Kazakhstan, 10.2 percent in Turkmenistan (International Energy Agency, 1998). Foreign investment attracted to the oil and gas sector in Caspian region could offer significant profits for the region’s governments and stimulate investment in other economic sectors. The attract foreign investment the host Governments should take discreet measures to ensure the development of an sufficient legal and administrative infrastructure, including institution building and personnel training, to handle the inflow of oil related revenues and to help ensure the countries’ efficient and equitable development. International Monetary Fund (2003) expressed concerns that unless regional governments introduce further administrative reforms, they risk being overwhelmed by new oil wealth. Particularly, corruption is a peril. Economic development motivated by foreign investment in the oil and gas industry helps to guarantee the financial independence of the Central Asian and Transcaucasian states. The transition to the market economy and the economic dislocations originated by collapse of Soviet Union left Azerbaijan, Kazakhstan and Turkmenistan without adequate funds to develop oil and gas resources. Governments of these countries are looking for private investment (mainly from foreign companies) that would play significant role in the development of oil and gas industry. Besides financial capital, a foreign investor brings a modern technology to local industry, including environmentally sound production techniques and modern management approaches. The Caspian Sea region countries are competing with each other for foreign investment. Oil and gas companies have a wide choice of where to make investment. The foreign investor considers the opportunities that offer the best financial returns. However, the investment climate is vital for company’s decision on where to invest. As a result, Kazakhstan and Azerbaijan took considerable steps in creating attractive investment climates. Kazakhstan concentrated on building a body of law applicable to all projects, while Azerbaijan focused primarily on modified production sharing agreements (International Monetary Fund, 2003). By the beginning of 1998, cumulative foreign direct investment in the oil and gas sectors of Central Asia and Transcaucasia had reached an estimated 3 billion of American dollars, nearly one third of which was placed in 1997. Future investment commitments in the region from contracts already signed total over 40 billion of America dollars (International Energy Agency, 1998). So far most foreign investment has been in Kazakhstan and Azerbaijan. Gas-endowed Turkmenistan started to attract foreign investment later than the others due to Government dictatorship and poor investment climate. Caspian oil development has gained a great deal of political and commercial momentum since the first foreign companies came there at the end of 1980s (Ruseckas, 2000). Since then the most important external factor influencing Caspian oil development is the price of oil. Principally if oil prices remain at present high level it is possible the more optimistic projects will be started. The Caspian Sea region could possibly produce approximately 4 million barrels per day by 2010. In any case, the Caspian Sea states require a stable legal regime to develop, produce, transport and market its natural resources. 1.5.1 Summary data on Azerbaijan Owing to extensive oil reserves, Azerbaijan is a major oil producer since the middle of the last century. Between 1990 and 1995 Azerbaijan’s gross domestic product dropped 58 percent (International Energy Agency, 1998). Oil production fell by only 25 percent mainly because of continuing oil product exports to neighbouring countries and an increasing use of heavy fuel oil in domestic power stations to alternative for imported gas. Due to the tightening of monetary and budgetary policies, the fiscal deficit dropped from 11.4 percent of gross domestic product in 1995 to less than 2 percent in 1996. In 2006 Azerbaijans real gross domestic product grew by 31 percent when the oil production in this region significantly increased. Azerbaijans anticipate for sustained economic growth is in its managing of large oil and natural gas resources in the Caspian Sea region, through effective management of the resulting revenue stream, and non-oil sector diversification (Energy Information Administration, 2006). During the beginning of transition most Azerbaijan onshore oil fields were in decline and required momentous new investment to develop large-scale offshore projects and to reconstruct existing fields. Since independence Azerbaijan signed several agreements with foreign oil companies. While maintaining full state ownership over energy companies, Azerbaijan was quick to invite foreign investors to assume a direct role in the development of its hydrocarbon reserves (Thompson, 2004). In 1992 most of the Azerbaijan oil sector assets were merged in two state oil companies – Azerineft and Azneftkimiya. The new merger was called the State Oil Company of the Azerbaijan Republic or SOCAR. While Government organizations handle production and exploration agreements with foreign companies, SOCAR is body to all international companies developing new oil and gas projects in Azerbaijan. After the first commercial oil flows through the Baku-Tbilisi-Ceyhan pipeline during summer 2006 and the increasing oil production from the Azeri-Chirag-Guneshli project, oil revenues are expected to contribute to a doubling of Azerbaijan’s gross domestic product by 2008 (Thompson, 2004). Energy Information Administration (2007) reports that though the oil sector represented around 10 percent of Azerbaijan’s gross domestic product in 2005, it is already projected to double to almost 20 percent of gross domestic product in 2007 (see Table 3). To manage the revenues, former President of Azerbaijan Heydar Aliyev formed a State Oil Fund in 1999, which is designed to use money obtained from oil-related foreign investment for poverty reduction, education and raising rural living standards. As of the end of 2006, the State Oil Fund reported assets of almost 2 billion US dollars, but the fund’s assets are expected to increase to 36 billion US dollars by 2010 (Energy Information Administration, 2006). Table 3Azerbaijan: Economy and Energy (in millions US dollars) 2003 2004 2005 2006 2007 2010 Oil Production (thousand barrels per day) 320 319 441 648 860 1,300 Oil Exports (thousand barrels per day) 215 204 314 521 721 N/A Foreign Direct Investment 3,285 3,556 1,680 -219 -4,750 476 FDI in Oil Sector 3,246 3,461 1,459 -573 -5,198 366 Oil Sector Revenue 886 946 1,337 2,921 5,272 19,417 As share of total rev (%) 42% 38% 39% 51% 59% N/A As share of total GDP (%) N/A N/A 9.8% 15% 19.7% 43.3% Oil Fund Assets 816 972 1,394 1,936 3,093 36,387 Source: Energy Information Administration: Short Term Energy Outlook, 2007; International Monetary Fund (IMF), Article IV Consultation, Staff Report, No 07/191, June 2007 1.5.2 Summary Data on Kazakhstan As it was the case in most other former Soviet Union countries, Kazakhstan’s first attempts at economic reform were effectively taken in response to Russias one-sided price reforms in 1992. After Kazak oil production had suddenly declined for two years in the end of 1993, inflation had out of control. The efforts to create an economic union with Russia and other former Soviet Union countries didn’t meet expectations of the Kazakh Government. Looking at the dynamic Asian economies as a model, the Kazakh Government turned to market style policies. However, the government increased hard budget constraints and restrictive monetary policies due to attempts to solve non-payment problem through state financing. The remained net debts after netting out inter-industry arrears were financed from Government budget and the central bank. In 1993 International Monetary Fund (IMF) granted Kazakhstan a one-year standby package. To maintain IMF collaboration and to stop the decline in gross domestic product, the Kazakh government implemented a second stabilisation program in 1995. But this time hard budget constraints and monetary policy were strengthened by excluding of government financing of net positions in inter-enterprise debts and retreating government guarantees for loans granted by foreign and domestic banks. In the middle of 1996, the International Monetary Fund approved an Extended Fund Facility (EFF) of 446 million US dollars for three years (IMF, 2003). According to International Monetary Fund (2003) the decision was made in light of a wide-ranging three-year reform programme submitted by the government, as well as the positive longer term prospects for production and exports of energy and non-ferrous metals. In 1996, Kazakhstan experienced its first positive economic growth since 1989. 1.5.3 Summary Data on Turkmenistan Preceding the collapse of the Soviet Union approximately 8 percent Turkmenistan’s gross domestic product was generated by gas exports to the rest of the USSR mostly to Belarus, Ukraine and the Caucasus. Another 5 percent of gross domestic product was earned from cotton exports. Gas and cotton exports continue to be used to cover the import of considerable amounts of grain and capital equipment from other former Soviet Republics. While estimates for the fall of gross domestic product between 1990 and 1995 vary depending on how adjustments to official gross domestic product are made, International Monetary Fund and European Bank of Reconstruction and Development agree on about -35 percent (IMF, 2003). This is much less than the 58 percent drop in Turkmen gas production. The rest of the economy is basically agricultural. The cotton industry has been less affected by the downfall of the Soviet Union. The government gradually liberalised some prices beginning in 1992. A presidential decree of 1995 removed price controls on all products except for about 50 items, including energy. The government introduced the manat as the national currency in 1993. In 1995 it unified the previously separate official and commercial exchange rates, which subsequently became determined by inter-bank auctions for foreign exchange. Between 1992 and 1995 the government compensated for the shortfall in revenue from taxes on gas production and exports by cutting expenditures and replacing subsidies to the economy with additional allocations of credit at largely negative interest rates. Controlled prices were adjusted repeatedly but declined in real terms for natural gas and for oil products through 1994. The share of gas related revenues in the central budget declined from 60 percent in 1992 to under 20 percent in 1995, which lowered the share of total budgetary revenue in GDP from 40 percent to 10 percent during this period. Due to drastic expenditure cuts in government wages and investment, including maintenance, the central budget deficit remained fairly stable over this period. It also helped that new excise taxes were introduced in 1995 on petrol (55 percent) and diesel (60 percent). This resulted in some recovery of government capital spending. The easy money policy was changed slowly in 1995 and 1996. During this time foreign exchange surrender requirements of state-owned enterprises to the Foreign Exchange Reserve Fund (FERF) were increased to 50 percent for gas and oil exports, and the money allocated directly to the central budget. Prior to that, this fund had been used to award credits to the economy, contributing to monetary expansion. In 1995 and 1996, bank credit allocation was reduced, real interest rates rose (due to credit auctions with deregulated interest rates), and reserve requirements for banks were increased. However, the pursuit of these policies was not smooth, in part due to the limited political autonomy of the Central Bank. Nevertheless, inflation decelerated by 50 percent towards the end of 1995 and is estimated to have been 445 percent in 1996, and 21 percent in 1997. Despite plummeting gas exports in recent years, Turkmenistan’s current account was slightly positive in 1994 and 1995, as long as arrears owed to the country are not taken into account. If such arrears are counted the 1995 balance swings from an estimated surplus of 54 million US Dollars to a deficit of 289 million US Dollars. The situation has probably continued to deteriorate due to weak gas exports. 2 Theoretical Frameworks 2.1 Overview of Foreign Direct Investment Theories There is variety of empirical studies on theoretical models explaining foreign direct investment (FDI) and its determinants. The various approaches from different disciplines such as economics, international business, organisation and management explain numerous characteristics of this phenomenon. The following dissimilar methods, explaining foreign direct investment as the location decision of multinational enterprises are mostly acknowledged in empirical literature on FDI: Ownership advantages as determinants of foreign direct investment (including monopolistic advantage and internalisation theory) based on imperfect competition models and the view that multinational enterprises (MNEs) are firms with market power (Hymer, 1960; Buckley and Casson, 1979; Kindleberger, 1969; Caves, 1971 for ownership advantages) Determinants according to the Neoclassical Trade Theory and the Heckscher-Ohlin model, where capital moves across countries due to differences in capital returns (for example Markusen et al, 1995,pp. 98-128; Aliber, 1970); Determinants of foreign direct investment in Dunning’s ownership-location-internalization (OLI) framework, which brought together traditional trade economics, ownership advantages and internalisation theory (Dunning, 1977; 1979); Determinants of foreign direct investment according to the horizontal FDI model or Proximity- Concentration Hypothesis (Krugman, 1983; Markusen, 1984; Ethier, 1986; Horstmann and Markusen, 1992; Brainard, 1993); Determinants of foreign direct investment according to the vertical FDI model, Factor-Proportions Hypothesis or the theory