Determine if there are similarities or differences with respect to the Essay

Determine if there are similarities or differences with respect to the treatment of Aboriginal youth by the governments of Canada and Australia, - Essay Example It is reported that the indigenous people have the highest incarceration rates in both countries as compared to any other lots. It is realized that the two governments treats and victimized offenders in the similar manner resulting from highest number of criminal activities undertaken by these indigenous groups. In Australia, statistics shows that 15.1 percent of the homicide victims are felt by the indigenous groups despite their less population of 2.2 percent of the Australian population and 15.7 percent of victimized offender’s results from same indigenous groups according to the 2011 Mouzous research (In Chall,& ProQuest Firm,1953, p.123). Aboriginal are also found in police custodies mainly because of violent and justice offences as compared to other lots who mainly being in custody for drug and traffic offences. Governments in both countries are thus find it necessary to detain more number of Aboriginals with Australian figure rated at 26 percent of all the people detained calculated to be 17 times that of non-indigenous persons. Australian government differs in terms of Aboriginal policing with that of Canada in the sense that indigenous policing systems seen to be relatively centralized divided into eight main police services with one attached to each state and territory and federal department. Unlike in Canada where there is correctional institutions and absence of federal-state split in sentences, Australian states are mandated to enactment of criminal laws and the policing programs are only within the state jurisdictions. Australian aboriginal have found themselves tasks with self-policing as well as hired as police officers after the discussion erupted on the failure of the government to include indigenous in such services but to use police services throughout course of Australian history in which police were universally expected to apply government policies to Aboriginal which led to Aboriginal

Why does the middle east is important to obama Essay

Why does the middle east is important to obama - Essay Example This became evident in 2007 when a plutonium-producing reactor of Syria in cooperation with North Korea, was discovered. Israel released photographic evidence of the said partnership leading to the raid of the nuclear reactor in Deir ez-Zor region and the dismissal of a terrorism attempt (Blackwill and Slocombe). Israel is skillful in making aerial systems, armored vehicle protection, and short-range rockets defenses, and robotics. It has been known as a world leader when it comes to developing devices and techniques for force protection (Blackwill and Slocombe). Because of the unifying goal of both countries to eliminate terrorism and nuclear proliferation, Israel shares its assets to United States which on the other hand, finances Israel’s projects and endeavors. In this case, the role of Obama’s partnership with the Israelis is to further develop missiles which would help him protect his forces and allies and span its influence over Europe, Middle East, and Persian Gulf (Blackwill and Slocombe). In all of these involvements, Obama does not only interestingly gain the assets of Israel but a possible underlying reason for this involvement is for him to expand its power over Middle East. This is evident in Michael Oren’s book, â€Å"Power, Faith, and Fantasy†. He stated, As an explanation to this, Oren mentioned about Jefferson and the May 1787 Articles of Confederation. In the meeting that followed, Americans felt a great threat from the kingdoms of Middle East countries. They stated, As a result of this, America waged wars all intended for Middle East. By imposing wars and force, America gained power over its greatest enemy – the Middle East countries and thus worry less about this threat (Oren). United States’ gaining of power and influence becomes more convincing when Obama expressed his interest in the oil industry of Middle East in his speech in

The Virgin Group An insight into the organizational structure and culture

The Virgin Group An insight into the organizational structure and culture Introduction The Virgin Group of companies is one of the largest business organizations in the world. Founded by Richard Branson, the Virgin Group has established itself into many diverse facets of the business industry. This paper analyzes the organizational structure and culture of the Virgin Group and how it has helped this organization attain such success in many diverse industries. Much of the culture of the Virgin Group is influenced by the personal beliefs and philosophies of its founder, Richard Branson, and is one of the reasons for the organizations success. Branson highly values all of his employees and takes personal responsibility to ensure that his beliefs are instilled among all of them. Branson has created a decentralized structure in the organization by giving his employees the authority to take decisions thereby reducing bureaucracy. Employees are encouraged to not always follow rational procedures and instead think on their own. This paper will first briefly give an overview of the Virgin Group of companies and its history and development. The organizational structure and culture of the Virgin Group will help the reader understand the organizations processes and business practices and how the values and belief system of its founder has shaped its structure and culture. In addition, the reader will learn how the Virgin Group has established itself as a successful organization based on its structure and culture. The paper will apply some of the theories and concepts from the course textbook to the Virgin Group which will help to understand the working of this organization better. In conclusion, this paper hopes to emphasize the Virgin Groups overall journey through the years and the role that its structure and culture has played in its success. About the Virgin Group The Virgin Group is one of the most successful business empires today. This organization has established itself in diverse industries including mobile telephony, retail, music, financial services, travel, and many more. Virgin has ruled the British market and has expanded worldwide into other regions like North America, Asia, Africa and Australia. Starting out as a simple mail-order record retailer in 1970, Virgin has grown into one of the most successful business empires in the world. The Virgin Group has established more than 300 companies, employing around 50000 people in 30 countries. Its global revenues in 2009 exceeded US$18 billion. (Virgin, n.d.) The majority of the Virgin Groups success has been credited to the founder and CEO of Virgin, Richard Branson. Bransons beliefs and philosophies are deeply rooted in the corporate culture of the Virgin Group. This has helped the Virgin Group to flourish in todays competitive business world. History and Development Richard Branson is the founder of the Virgin Group of companies. When he was a student at Stowe, he published a magazine called Student. The magazine was a success and it encouraged Branson to leave school and try his hand at new business ventures. His first target was mail-order records. He found that by putting a single advertisement in an issue of Student magazine, he was able to establish a thriving business with almost no up-front investment and no working capital. The name Virgin was suggested by one of his associates who saw the name as proclaiming their commercial innocence, while possessing some novelty and modest shock-value. In 1971 Branson opened his first retail store on Londons Oxford Street. Virgin then expanded into the recording industry and the result was the Virgin record label. By 1983, the Virgin Group was earning profits of 2 million pounds on total revenues of just under 50 million pounds. (Grant, 2008) Gradually Branson expanded into other ventures. The Organizational Structure Many assume the Virgin Group to be a multinational, but such is not the case. Each of the 300 odd companies of the Virgin Group operates separately and Branson serves as shareholder, chairman, and public relations supremo. Most of them are operating companies that own assets, employ people, and offer goods and services. These operating companies are owned and controlled by about 20 holding companies. The Virgin Group has a very complex structure. It has been termed both as a brand franchising operation as well as a keiretsu. (Grant, 2008) However, based on its structure, the Virgin Group can be safely termed as an organization with a keiretsu structure. A keiretsu is a group of organizations, each of which owns shares in the other organizations in the group, and all of which work together to further the groups interests. (Jones, Mills, Weatherbee, Mills, 2006) Furthermore, such a large organization with a complex structure needs to be organic in order to be able to adapt to changes in its environment. An organic structure promotes flexibility, so people initiate change and can adapt quickly to changing conditions. ( Jones et al., 2006) Considering each of the individual companies as a department providing a unique product or service, it is evident that they exhibit product departmentalization. Product departmentalization is the division of the departments of an organization based on the type of product or service offered. (Jones et al., 2006) For example, Virgin Mobile offers cellular services while Virgin Records is a music label. However, the structure of the Virgin Group is so complex that it is necessary for it to not just have one type of departmentalization. For instance, Virgin Mobile has operations in many different countries like the UK, India and Australia. As such, the type of service varies in each of these countries. This shows that Virgin Mobile also exhibits geographic departmentalization. Geographic departmentalization is the division of an organization based on the geographic location. (Jones et al., 2006) In addition, type of service and products also varies depending on the customer base hence ex hibiting customer departmentalization. Customer departmentalization is the division of an organization based on the kind of customers it serves. (Jones et al., 2006) Since the Virgin Group of companies exhibit so many types of departmentalisations, the organization as a whole is said to have a hybrid structure, which is a mixture of two or more kinds of departmentalisations. This multi-divisional approach helps the Virgin Group to easily adapt to the cultural, technological and other forces in the region it expands to. The division of labour and the hierarchy is also an important aspect of an organizations structure. The number of levels of authority, the control, and the amount of communication are key factors in the proper working of an organization. As mentioned, the Virgin Groups companies operate as separate organizations. The companies are part of a family rather than a hierarchy. They are empowered to run their own affairs, yet the companies help one another, and solutions to problems often come from within the Group somewhere. In a sense, Virgin is a commonwealth, with shared ideas, values, interests and goals. (Virgin, n.d.) In fact, Branson himself has provided all his employees with the authority to make unsupervised decisions based on their intuition rather than following a chain of command. This leads to the employees having more confidence in them and in the management. Since interaction among all the levels of the hierarchy is promoted, it increases effective communication. This is e vident from the fact that Branson personally interacts with employees on a regular basis discussing ideas and receiving feedback. The Virgin Group expresses self-sufficiency and effective communication. Virgin has a flat hierarchical structure and this enables quick and efficient decision making. The flat structure is one of the reasons that the Virgin Group has been able to expand into new ventures. In addition, a flat structure allows a wider span of control, and decentralization. Span of control is the number of subordinates a manager manages directly. (Jones et al., 2006) The decentralized structure of the Virgin Group gives more power in the hands of its employees when it comes to decision making. Decentralization is the delegation of authority to all levels of the hierarchy. (Jones et al.,2006) Branson believes that the employees are the backbone of the company and hence it is important that they have enough involvement and authority in decision making. Since the Virgin Group comprises of so many companies, along with a decentralized structure, it should show some signs of organizational bureaucracy. However, Branson has ensured since the beginning to minimize bureaucracy as much as possible since he strives to flatten the hierarchy. Bureaucracy is a structure in which people are held accountable for their actions because they are required to act in accordance with rules and standard operating procedures. (Jones et al., 2006) The efficiency of the employees is enhanced under Bransons leadership who emphasises a wide span of control and self management. Bransons scepticism of organizational hierarchy and a formal structure has contributed to organizational cohesiveness to a great extent. His adoption of this unorthodox strategy rather than traditional business practices and non-traditional structuring of the organization may be the reason for the Groups success. The Organizational Culture Much of the Virgin Groups culture is influenced by its founder Richard Bransons personal philosophies. Just as his employees are important to him, so are the customers the Virgin Group serves. The ability of the Virgin Group to operate effectively with almost a non-formal structure is because of its unique organizational culture. The culture of the Virgin Group reflects Bransons casual nature, his disrespect for hierarchy and formal authority, commitment to employees and consumers and his belief in hard work and responsibility. (Grant, 2008) This influences all of the companies in the Virgin Group and its organizational culture. This in turn, enables the Virgin Group to provide an environment in which talented, ambitious people are motivated to do their best and strive for a higher level of performance. However, even in an informal environment, a high level of commitment, acceptance of personal responsibility and long hours of work when needed is expected. Performance incentives at V irgin for most employees are diffident but Virgin provides benefits like social activities, company sponsored weekend getaways and impromptu parties. (Grant, 2008) Such an environment promotes better relations among the employer and the employees. Virgins unique culture has gradually progressed to where it is today. Virgin describes itself as a family emphasizing its informal but strong belief system and values. Possessing such a culture enables the Virgin Group to have effective coordination among its various departments. Working as a community rather than a corporation, instils the ability to communicate effectively among the many companies in the Group. The Group as a whole works together based on these shared set of values which are continuously strengthened. This is important considering the vast size and complexity of the organization. Following in the footsteps of its founder, Virgin has always maintained the belief that the employees are the biggest force of the organization and as such, should be treated with respect. (Virgin, n.d.) The management cares for the welfare of the employees and allows them to work in a free environment. Because of these primary beliefs and values, Virgin has been able to compete, thrive, a nd challenge new business opportunities. As mentioned before, Richard Branson has influenced the culture of the organization the most. He has managed to instil his belief system into all of his employees and this has motivated them to strive to perform better. One of the many strong points in Virgins favour is the fact that it is non-traditional; revolutionary even; in the manner it does business. Virgin believes in grasping opportunities. Contrary to what many people may think, Virgins constantly expanding and eclectic empire is neither random nor reckless. Each successive venture demonstrates their devotion to picking the right market and the right opportunity. This has proved beneficial to the organization and is one of the many reasons for its success. (Virgin, n.d.) Conclusion Based on the analysis of the corporate culture and structure of the Virgin Group, it is evident that it is a highly successful organization most of whichs credit goes to the founder and his values and beliefs. Even though the industry considers much of his methods to be unorthodox, these methods have proved highly beneficial to him and the Virgin Group and have been deemed to be effective. Not many today can dream of venturing into so many diverse industries starting from scratch. If Virgin continues to strengthen its culture and structure, it has the potential to become one of the most successful companies ever.

Jamestown, 1607 :: essays research papers

It's 1607, Jamestown, and you are there.... Relive the adventure of 1607 when 104 Englishmen dropped anchor and began to build America's first permanent English colony in Jamestown, Virginia. Explore life at the dawn of the 17th century inside the palisade of a re-created colonial fort, discover the world of Pocahontas in the Powhatan Indian village, and experience the four-month passage to the New World on board re-creations of the three ships that brought the settlers to Virginia. Extensive indoor galleries tell the compelling stories of Jamestown, from its beginnings in England through its often turbulent first century, and of Virginia's Powhatan Indians. The dramatic film, Jamestown: The Beginning, chronicles the endurance of the first settlers as they struggled to build a lasting colony. James Fort Within the re-created fort, step back in time to the 17th century. Try on armor, watch a musket-firing demonstration, and discover how the colonists lived and worked. Powhatan Indian Village Learn about the culture of Pocahontas' people in this re-created village. Explore the Powhatan houses, called yehakins, climb into a dugout canoe and try your hand at grinding corn or weaving plant fibers into rope. Ships Aboard the Susan Constant, Godspeed or Discovery, get a sense of how the colonists may have felt as they crossed the Atlantic in the early 17th century. Try your hand at steering with a whipstaff or tiller. Examine the contents of a sailor's "see" chest on the pier, and participate in periodic demonstrations of cargo and sail handling. Galleries The museum galleries recount the history of the colony through exhibits of 16th- and 17th-century artifacts and illustrations. The English Gallery examines the conditions that led to American colonization. The Powhatan Indian Gallery explores the people who inhabited coastal Virginia when the Jamestown colonists arrived. The Jamestown Gallery traces the first century of the Virginia colony while Jamestown served as its capital.It's 1781, Yorktown, and you are there.... The drama of the American Revolution and the birth of a great nation come to life at Yorktown Victory Center. In provocative indoor galleries, witness the Revolution through the eyes of those who were there—from soldiers on the battlefields to women on the home front, from American Indians to African Americans. The evocative film, A Time of Revolution, places you in a Continental Army encampment where soldiers spend an evening reminiscing and musing on their lives and the war that has brought them together. Outdoors, experience the sights and sounds of the Revolutionary War in the re-created Continental Army encampment.

Overcoming Multimedia Addiction Essay

Some of the students nowadays are struggling to stay awake while the rest of the world is asleep just to read their friends’ posts and comments and status on Facebook. They even spend most of their time staring at the big screens of their personal computers just to play online games like DOTA and Counterstrike. Some also spend their money just to buy the latest mobile phones, mp3 players, and other techno gadgets out there. However, they must keep in mind that everything has its own limits. Otherwise, it can become a cause of concern and in extreme cases, addiction. Multimedia addiction can cause destruction and violence to students. Multimedia is simply defined as multi tasking of applications in a single device or gadget. This includes graphics, animation, pictures, videos, and other applications which can be opened simultaneously or consecutively. Smart phone, laptop, iPod, television, and mp4 player are some of many multimedia gadgets that are ‘in’ especially to students because of its amazing features. Consider the television. Whether it is a box, slim, or flat screen, it has become almost like another member of the household. It sits in the living room, in the kitchen, or even in the terrace of your house. It bombards us with all kinds of information about almost anything under the sun. It informs us on what laundry soap to use; what toothpaste to brush our teeth with, or which candidate to vote in the 2013 election. It brings us local news and news from around the world. And of course, it entertains us with sports, music, movies, telenovelas, lifestyle segments and variety programs. Cellular phones, on the other hand, are used for communication purposes. But because of technological advancements, new applications like built- in cameras are added to them. That’s why many people patronize it so much. Laptops are made for easy handling. Unlike personal computers, you can now bring it anywhere because of its small size. Almost every student today has his or her own laptops. The dependence on multimedia gadgets extend to students who became the primary beneficiaries of these gadgets. Tech- net survey said that 42 % of students are using mobile phones, 36 % are using laptop, 15 % are using play station, and 7 % are using mp3 players (â€Å"2012 Most Addicting Gadgets†, www. Technet.com). The use of multimedia gadgets can be constructive and destructive to students (Despabiladeras 15). Many of them consider the use of these gadgets constructive when they help them in their studies. Today, the internet is the major source of knowledge and information. In just one click, they can now find the answers to their assignments. They also use software like Microsoft office and the like for their project presentation. Many schools now use computer oriented techniques for teaching. The traditional way of teaching like writing too many lessons in a manila paper is already replaced by powerpoint presentations which are indeed favorable for the students. They no longer copy too many notes because there are handouts already prepared for them. Multimedia also gives information about the latest happenings and discoveries around the world. The use of social media sites like Facebook allows them to socialize with other people. Some also say that playing online games like DOTA and Counte rstrike have positive effects on them because they relieve stress from the hectic schedule of their schooling. In contrary, students say that multimedia gadgets can be destructive too. Problems begin when students became addicted to these gadgets to the point of discarding other activities which can truly affect their balance and studies (www. Gadgetforums.com). Because of these gadgets, they now prefer playing games that reading books. In most schools, use of cellular phones is banned but many of the students still carry them. They push their parents to buy them the latest mobile phone or other gizmos because their peers use it. The effect of this addiction is that they can no longer resist themselves from taking calls and accessing Facebook and other social networking sites during school hours. â€Å"The use of gadgets can be destructive when it makes your personality bad like when you become wild because of video games†, Bryan Capus said ( Despabiladeras 15). They forgot to budget their time because most of their time are consumed by these gadgets. The overuse of these also affects their health. Too much exposure to these gadgets can cause diseases like brain tumor and cancer caused by radiation (â€Å" Radiation From Gadgets†, www. Healthcare.com). They are prone to sickness because they no longer engaged in outdoor activities. It is alarming to know that 47 % of students nowadays are addicted to computers and other multimedia gadgets ( Despabiladeras 16.). Their parents have a big role in overcoming their children’s addiction. For example, most of the students are advised or told by their parents to limit their internet surfing time until 8:30 p.m. or 9:00 p.m. or but not to reach 10:00 p.m. as they have classes the next day ( Clifford 72). Some also advice their children to engage in other recreational activities like playing basketball or playing the guitar instead of watching T.V. or sitting all day in front of their PCs. One parent posted the following on gadgetforums.com: In today’s high- tech and modern world, we are all connected with each other through the miracle of working inventions and innovations like PC, tablets, smart phones, gaming, internet and so much more. And I think we feel that we won’t have a normal day without getting hooked to any one of these devices. The problem begins to rise when our children became addicted to these gadgets to the point of discarding other activities which can truly affect their balance and health. To avoid this, I try to ensure my son has balance in this area. Playing team sports has helped, that’s one thing in his like that doesn’t require gadget. Sports is one of the best ways to add moving activities to a child’s routine with the aim of creating a certain balance between studying and playing. We could not really avoid our children to get into gadgets as this is the wave of the future with the introduction of tablets which can he fully integrate with schools in the near fu ture ( www.gadgetforums.com). According to gadgetforums.com, there are eight ways to overcome gadget addiction. First, limit the amount of time you spent on any type of gadget. Second, learn to balance and manage your time. Make a time table on when to use your gadget. Third, spend most of your time in your studies. This will give you higher grades in return. Fourth, read books rather than playing games. Surfing the internet for recent news and discoveries will help too. Fifth, spend your free time with your family and friends. Go to an outing of family reunion that doesn’t require gadgets. Sixth, socialize with your true friends, not your ‘virtual’ friends. Your Facebook friends will never help you if you have a problem. Seventh, avoid buying newly released gadgets if you still have one that is still working. And the last is self discipline. It is interesting to know the opinions of students on multimedia gadget addiction; whether it is constructive or destructive for them and what their parents do in influencing their media habits. To prevent this addiction, students should analyze their gadget preferences and see what’s good of bad in it for them. They must set in mind that multimedia gadgets is there to help them, not to enslave them.

Pakistan Cement Industry

Compiled by: Mirza Rohail B http://economicpakistan. wordpress. com/2008/02/12/cement-industry/ History & Introduction Growth of cement industry is rightly considered a barometer for economic activity. In 1947, Pakistan had inherited 4 cement plants with a total capacity of 0. 5 million tons. Some expansion took place in 1956-66 but could not keep pace with the economic development and the country had to resort to imports of cement in 1976-77 and continued to do so till 1994-95. The industry was privatized in 1990 which led to setting up of new plants. Although an oligopoly market, there exists fierce competition between members of the cartel today. The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the installed production capacity of 44. 09 million tons. The north with installed production capacity of 35. 18 million tons (80 percent) while the south with installed production capacity of 8. 89 million tons (20 percent), compete for the domestic market of over 19 million tons. There are four foreign companies, three armed forces companies and 16 private companies listed in the stock exchanges. The industry is divided into two broad regions, the northern region and the southern region. The northern region has around 80 percent share in total cement dispatches while the units based in the southern region contributes 20 percent to the annual cement sales. Cement industry is indeed a highly important segment of industrial sector that plays a pivotal role in the socio-economic development. Since cement is a specialized product, requiring sophisticated infrastructure and production location. Mostly of the cement industries in Pakistan are located near/within mountainous regions that are rich in clay, iron and mineral capacity. Cement industries in Pakistan are currently operating at their maximum capacity due to the boom in commercial and industrial construction within Pakistan. The cement sector is contributing above Rs 30 billion to the national exchequer in the form of taxes. Cement industry is also serving the nation by providing job opportunities and presently more than 150,000 persons are employed directly or indirectly by the industry. The industry had exported 7. 716 million tons cement during the year 2007-08 and had earned $450 million, while is expected to export 11. 0 million tons of cement during 2008-09 and earn approximately $700 million. Fiscal Performance 2008-09 Business Recorder reported that Pakistan’s cement exports witnessed a healthy growth of 65%, to over 6 million tons during 7 months of the current fiscal year mainly due to rise in international demand. The exports may reach to 11 million tonnes and earn approx $ 700 million during 2008-09. The statistics of All Pakistan Ce ment Manufacturers Association also showed that cement exports had mounted to over 6 million tons in 7 months as compared to 3. 2 million tons of same period of last fiscal year, depicting an increase of 2. 38 million tons. Cement exports during January 2009 went up by 30% to 0. 81 million tons as compared to 0. 623 million tons in January 2008. However, slow construction activities in the country during the period badly upset domestic sale of cement, which depicted decline of 15%, to 10. 77 million tons as compared to 12. 59 million tons of last fiscal year. On MoM basis, local dispatches of cement during January 2009 showed a decline of 8%, to 1. 51 million tons from 1. 65 million tons of January 2008. Overall dispatches, including export and local sales, reached 16. 77 million tons during July to January of 2008-09 as against 16. 20 million tons of last fiscal year, depicting an increase of 3%. By September 2009, after witnessing substantial growth in all three quarters of fiscal year (FY) 2008-09, cement sector concluded the fourth quarter with a handsome growth of 1,492 percent on yearly basis, All Pakistan Cement Manufacturers Association’s report revealed on 29th September 2009. Higher retention prices (up 59 percent) and high rupee based export sales amid rupee depreciation (20 percent) drove profits up north. However, this growth is magnified, as FY2007-08 was an abnormally low profit period for the sector. Moreover, the performance is skewed towards large players with export potential as profitable companies in both years posted increase of just 109 percent, said analyst at JS Research Atif Zafar. He said that cumulative profitability of companies in FY09 stood at Rs 6. 2 billion or $78. 2 million as compared to Rs 386 million or $6. 2 million depicting a massive growth of 1,492 percent. Companies with profits in both the years posted 109 percent earnings improvement. Though total dispatches were down 2 percent, net sales grew by 55 percent to Rs 101. 4 billion or $1. 3 billion on the back of higher net retention prices (up 59 percent) and improved export based revenues. Cost of sales/tonne also rose by 33 percent on yearly basis amid higher realised coal prices and inflationary pressures, the analyst maintained. Production Capacity In Pakistan, there are 29 cement manufacturers that are playing a vital role in the building up the country’s economy and contribution towards growth and prosperity. After 2002-3, most of the cement manufacturers expanded their operations, and increased production. This sector has invested about $1. 5 billion in capacity expansion over the last six years. The operating capacity of cement in 1991 was 7 million tons, which increased to become 18 million tons by 2005-06 and by end of 2007 rose to above 37 million tones, and currently the production cpapacity is 44. 07 million tonnes. Cement production capacity in the north is 35. 18 million tons (80 percent) while in the south it is only 8. 89 million tons (20 percent). The cement manufacturers in 2007-08 added above eight million tons to the capacity and the total production was expected to exceed 45 million tons by the end of 2010. It may result in a supply glut of seven million tons in 2009 and 2010. Actual Cement Production (in million tons) According to Government Board of Investment, 2001-02 – 9. 83 2002-03 – 10. 85 2003-04 – 12. 86 2004-05 – 16. 09 2005-06 – 18. 48 2006-07 – 22. 73 2007-08 – 26. 75 2008-09 – 20. 28 Exports & International Markets The cement industry of Pakistan entered the export markets a few years back, and has established its reputation as a good quality product. Deregulation after accession of Pakistan to WTO is expected to open the window of competition from cheaper markets. The recent acquisition of Chakwal Cement by an Egyptian giant, Orascom may be a beginning of such an entry in Pakistan by multinationals. New avenues for export of cement are opening up for the indigenous industry as Sri Lanka has recently shown interest to import 30,000 tons cement from Pakistan every month. If the industry is able to avail the opportunity offered, it may secure a significant share of Sri Lanka market by supplying 360,000 tons of cement annually. In 2007, 130,000 tons cement was exported to India. In 2007, the exports to Afghanistan, UAE and Iraq touched 2. 13 million tons. At present, the economies of major countries are facing recession, but Pakistan’s cement sector is still maintaining a healthy growth. Cement export to India has already slowed after imposition of duty by Indian authorities. Pricing Another problem faced earlier by the Industry was the high taxation. The general sales tax (GST) was 186% higher than India. The impact of this tax and duty structure resulted in almost 40% increase in the cost of a cement bag (50 Kg). A bag in India earlier cost Rs. 160 as compared to Rs. 220 in Pakistan. In the budget of 2003-04, a duty cut of 25% was permitted to the cement sector with assurance from the cartel to pass on this benefit to the consumers. In 2006, the price of a bag went up to Rs. 430 however in 2007 it has stabilized at Rs. 315 per bag. In mid 2008, cement prices stabilized further at Rs. 220 per bag. The Government has reduced central excise duty (CED) on cement in the budget for 2007-08 in order to boost construction activity. Average industry cost of cement bag/50Kg = Rs. 193 Average industry price of cement bag/50Kg = Rs. 235 Domestic Demand Local demand in the country for the year 2008-09 is expected to be around 20 million tons. Domestic demand is expected to grow at 13% Capacity growth rate (CAGR) during next five years. Certain factors will also affect the growth of cement industry as well. These are as follows: Strong GDP growth O Higher GDP growth has positive impact on cement demand. O Cement demand growth rate was double the GDP growth rate in last three years. Housing sector growth O Housing projects consume roughly 40% of cement demand. O Low interest rates, post 9/11 remittances’ inflow, and real estate boom have helped housing sector growth. Government Development Expenditures O Government development expenditures count for one third of total cement consumption. O Increase in PSDP – from Rs. 80 bn in 1999 to Rs. 520 bn in 2007. O Infrastructure development in a region triggers private development projects having even positive impact on cement demand. Earthquake Rehabilitation O Earthquake losses of October 8th are estimated at $ 5. 2bn O Reconstruction work will boost construction material demand O Reconstruction work is expected to generate cement demand of 4mn tons over next 3-4 years Announcement of large Dams O Construction of four large dams will generate demand of 3. 7mn tons. Bhasha Daimer Dam, Munda Dam, Akhori Dam and Neelum Jhelum. Per Capita Cement Consumption Pakistan currently has a per capita consumption of 131kg of cement, which is comparable to that for India at 135kg per capita but substantially below the World Average 270kg and the regional average of over 400kg for peers in Asia and over 600kg in the Middle East. Cement demand remained stagnated during 90’s owing to lack of development activities. In 1997, per capita consumption was 73 kg in both Pakistan and India. By 2005-06, consumption in India rose to become 115 kg/capita whereas ours rose to 117 kg/capita. A comparison of few countries in 2005: Bangladesh 50 kg/capita Pakistan 117 kg/capita India 115 kg/capita USA 375 kg/capita Iran 470 kg/capita Malaysia 530 kg/capita EU 560 kg/capita China 625 kg/capita UAE 1095 kg/capita Challenges to Cement Industry The cost and exports may be affected due to weakness of the US dollar causing coal, electricity charges and freight prices, comprising 65 to 70 percent of the cost. The PSDP allocation for 2009 has been cut by Rs 75 billion and feared further cuts would curtail cement demand. Major capacities of countries like India and Iran are expected to come online by FY10 and onwards which are likely to convert these countries from dependent importers to potential exporters. Moreover, this current rising trend is expected to be short-lived due to higher interest rates and inflationary concerns are likely to make it disadvantageous for investors to enter the construction industry. In addition to this, to control real estate prices the government is considering imposing a tax on it. Major General Rehmat Khan, Chairman of All Pakistan Cement Manufacturers Association (APCMA), told Business Recorder, â€Å"cement industry is getting Rs 24 per ton as day dutydrawback for export of cement which needs to be revised. In view of today’s calculation for duty drawback, which works out to Rs 130 per ton, he proposed that duty drawback be increased to Rs 130 per ton ,instead of Rs 24 per ton. † Referring to taxation on cement, he said that cement dispatches are subject to payment of federal excise duty @ Rs 900 per ton, general sales tax @ 16 percent, special excise duty @ 1 percent, marking fee @ 0. 1 percent of ex-factory price, besides provincial duties and taxes. These taxes come to around Rs 96 per bag which is the highest in the world. Cement, it appears, is being treated as a luxury item for the purpose of taxes and duties. He proposed that the government should reduce excise duty by Rs 450 per ton in the forthcoming budget while the remaining half should be eliminated altogether along with the special excise duty. Besides this, sales tax should not be charged on excise duty paid value. He also proposed withdrawal of customs duty on Pet Coke and remove it from negative list for import from India because cement industry imports Coal and Pet Coke as fuel for production and customs duty on imported coal is zero while on Pet Coke it is charged @ 5 percent. (c) ECONOMIC PAKISTAN