Economics

Many people in the world depend on the hospitality industry, directly or indirectly for employment. In the US it makes up about 2.6 of the total economy, according to 2009 estimated by the Department of Labor. Like all the sectors that were affected by the economic downturn, the hospitality industry needs some remedies to aid its recovery and generate jobs to million of people who depend on it. This paper will look at the general overview of the economy, its meaning, and its organization in the US. Problems facing the sector too as a result of the economic crisis as well as the proposed solutions and their effects will be discussed as well.

Definition
Land labor resources and other agents comprise the economic system of a defined territory. In an economic system, there is production, exchange and consumption of goods and services. Economies comprise of the macro and micro sectors. The macroeconomic sector involves decisions firms make regarding production and output while microeconomics focuses on individual decisions that consumers make regarding consumption of output from firms.
   
The hospitality industry although seems like insignificant its general performance can be used to assess the overall macroeconomic .Its important to note that the industry is heavily service oriented. For it to thrive therefore, minimal interference by the state is required. That perhaps explains why it has been successful in capitalist economies like the United States.

Since the collapse of the Soviet Union in 198990, command economies have largely disappeared. They were dominant in the former socialist republics of Eastern Europe but capitalism has largely take root even all over the world including the former soviet republics themselves. China, Cuba and North Korea are the only know countries that still practice centrally planned economies.
   
If the strict ideals of the capitalist economy were to be enforced, the role of the government will only be seen as a facilitator. In the capitalist economies, dominant in the United States and Western Europe, the private sector is left to run important sectors and industries like manufacturing, hospitality, transport and healthcare. The private sector thrives in the capitalist economy set up. The government regulates the sector through a series of laws that are enacted by legislation. Individual firms and consumers are left to make decisions based on preference and need. Market forces dictate prices but the authorities subtly shape the economic trends through regular revisions of monetary and fiscal policies spearheaded by central banks and treasury ministries.
   
The hospitality industry largely belongs to the private sector. In command economies where the sector was notably absent, hospitality industries did not perform well. Recreation and entertainment are tailored to meet different peoples tastes. The standardized services that were available in the command economies therefore did not contribute much to meet clients preferences.
       
Market economies go through cycles that reflect the level of activity and growth prospects. Recessions, depression, recovery and growth are all part of the cycle that market economies go through. (Solomou, 1998, p, 6) says that Fluctuations of economic activity are a feature of modern economies that little can be done to avoid. According to Adelman (1960), business cycles are propagative or impulsive (as quoted in Solomou, 1998, p 9). Propagative business cycles are as a result of the internal workings of the economies. Parameter of multiplier and accelerator effect work to generate business cycles (Solomou, 1998, p, 9). Impulsive business cycles on the other hand are caused by exogenous shocks on the economy (Solomou, 1998, p, 9).
         
During such cycles, governments took measures like increased spending that sought to reverse negative trends or stem the collapse of the economy altogether. The world recession that started in 2007 is one such cycle that resulted in the decline of many world economies. The hospitality industry was among the industries most severely affected by the recession. The massive layoffs shifted people spending patterns to focus only on necessities rather than luxuries. Tourism, recreation and other sub sectors of the hospitality industry that depend on direct spending were affected because consumers considered their services a luxury. Declining revenues and negative growth in the industry has generated calls for a second stimulus package that will encourage more spending in the industry hence accelerate its recovery.

Role of government in economy
Whether an economy is command or free market, the role of government is critical. Governments play an entrepreneurial, regulative and rehabilitative role in economic development (Adelman, 1999, pp 1-8). Governments boost investment through increased spending. Government spending is crucial in sustaining economies and in some cases governments are the biggest employers. Keynesian economics tend to be biased towards the government as well. According to the theories, private sector alone cannot make decisions that will ensure sound economic development is realized. Monetary policies by central banks and fiscal policies by government planning ministries according to Keynes should always be actively involved in economic decision making to ensure a stable economic climate.

The Keynes model advocates for an economy that is largely controlled by the private sector but with the government and public sectors actively involved in making decisions. However, industries like the hospitality can hardly succeed with much government involvement. After the Great Depression of 1930s, the theory gained momentum and was used by many governments to justify intervention in economic matters. The recent economic crisis of 2007 has again thrown the focus on Keynes theory of economics and many countries have done more or less of what its recommendations are, during that period.
       
The 2007 recession, whose genesis was in the US housing market is blamed in some quarters as a result of poor oversight by the American government and over reliance on private sector players to make major decisions regarding the economy. Keynes economists advocate for a mixed economy where both the private and public sectors thrive with joint ownership of properties. The resultant bailout and stimulus packages in the US after the financial crisis served to underscore the importance government can play in economic development.

Role of US government
Though largely a capitalist economy, the US economy the US government plays a critical role in shaping growth, stability and role in the World (Slater, David, National Research Council (U.S.)  Committee on National Statistics, 1998, p1). The governments borrowing, spending and taxing policies affect the entire economy including the hospitality industry. Generally the spending of the US government on the economy has increased since 1992 (Slater, David, NRC, CNS, 1998, p 1). Like any government would, the US government facilitates a conducive business atmosphere which allows the thriving of the private sector. Regulation of the economy is another role played by the US government. The recent enactment of the healthcare reform bill once again proved the regulatory role of the government. Insurance companies were subjected to drastic laws curtailing freedoms that were once thought to be a preserve of the private sector.

US economy
The United States has the largest and most advanced economy in the world. As a result most economic agendas pursued by other countries consider the US position before any decisions are reached. From 1945 the world economy was largely dominated by Americans and the American economy (Agnew, 1988, p 1). However, the position of the US economy has always come under threat from global events that have served to prove that it does not enjoy the untouchable status that it once enjoyed. The continued growth of Chinese economy in particular has threatened to challenge the dominance of the US in the world economic matters. Nevertheless, its importance cannot be underestimated as many countries still depend on the dollar for pegging of their currencies and for holding reserves.

Sectors of the US economy
Generally, the economies of various countries are divided into public and private sectors. Within these sectors are thriving sub sectors that comprise of primary, secondary tertiary and quaternary sectors. They are defined based on the goods they produce and the level of refinery of the goods and services. According to Economy watch, the services sector is the biggest sector in the US economy. In the year 2008 when the country GDP grew by 2.8 in the second quarter, the sector contributed 67.8 towards the GDP of the US. In 2007, the services sector contributed 78.5 to the GDP way above the 20.5 that the industrial sector contributed (Economy watch, n.d, p 1).
     
The US economy has numerous sectors including the following  Mining, Finance and Insurance, Real Estate, rental and leasing ,Manufacturing, Wholesale Trade, Retail Trade, Transportation, Information, Management of companies  enterprises ,Utilities, Construction, Administrative, support, waste management  remediation service, Educational services ,Health care  social assistance, Arts, entertainment,  recreation, Accommodation  food services, Professional, scientific,  technical services (Economy watch, n .d ,p 1).
     
The agricultural sector employs many people in the country but its contribution to the GDP of the US is a distant 1 (Economy watch, n .d, p 1). When calculating the value of its GDP, the US economy is divided into three sectors. The Services sectors which accounts for 76.9 of the GDP, the agricultural sector that accounts for 2.1 of the GDP and the industrial sector that accounts for 21.9 of the GDP, according to 2009 estimates. The hospitality industry therefore falls in the services sector that comprises the bulk of the US economy. There is always interdependence between the different sectors of an economy and the American economy is not excluded. These sectors provide employment to the people who in turn pay for services in the hospitality industry. In a nutshell, the hospitality industry is sustained by the stability of other sectors of the American economy.

Hospitality industry in general and in US
The hospitality industry of the US like in any part of the world, depend on the spending patterns of people in the economy. According to the American Hotel and Lodging Association, the industry employs 1.8 million people directly. It also supports a further 8 million through air travel related jobs (Patel, 2009, p, 1). According to the U.S. Department of Commerce, Bureau of Economic Analysis, the hospitality industry comprises of the arts, entertainment and leisure sectors and the accommodation and food services sector (Department of Labor, Employment and Training Administration, 26, p 6).  The report further said that the accommodation and food services sector represented 2.6 of the GDP in the year 2004, equivalent to 308.1 billion (DLETA, 2006, p 6). The recession that hit the country in 2007 resulted in the loss of over 8 million jobs in the US. Such losses impacted directly on the hospitality industry since recreational spending reduced drastically. The accommodation and food services sector is responsible for 8 of the total workforce in the US. However, the US Bureau of Labor Statistics predicted in 2007 that the industry was expected to add 17 in wage and salary employment between the years 2004 to 2014. The food services and drinking places are expected to add 16 of wage and salary jobs within the industry in the period 2004- 2014, equivalent to 1.6 million new jobs (US Bureau of Labor Statistics, 2007). The industry has many entry level jobs in the US providing many young people aged 16-19 with jobs. They comprise more than 21 of the industrys workforce.

However, stereotyping of the industry as low and entry level coupled with the youthful employees has made the industry experiences high employee turnover. High turnover of employees is one of the traditional problems that are associated with the industry even in the course of strong economic performance. Economic down turns like the recent one that led to unemployment affected demand of the hospitality industry services. That, together with declining real wages sparked layoffs in the industry which coupled with the generally high turnover rate to make matters worse.
       
The US government introduced the stimulus package that was meant to jumpstart the economy. The money was supposed to be spent in various projects especially in green energy that would have boosted hiring therefore reducing unemployment. Returning people to work is overally advantageous to the hospitality industry because more people will be able to afford recreation spending.  The kind of deficit spending that the US government is undertaking during the time of recession is in line with Keynesian theory. However, in the 787 billion stimulus proposed by president Obama, the hospitality and lodging industry was largely ignored (Patel, 2009, p, 1). There are individual actions that the government should have taken or should take to enable quick recovery of the industry. In an economic climate like the one the US is struggling to exit, it will make perfect sense if an industry that can provide real stimulus to a faltering economy is protected (Patel, 2009, p, 1).

Measures government can take
According to Keynes the demand for goods and services during economic downturns may dwindle. It has happened in the hospitality and lodging industry in the US. Price Waterhouse Coopers estimated a fall in bed occupancy in hotels in the US of 5.2, in the year 2009 (Patel, 2009, p, 1). It was the steepest decline in the last 20 years in an industry that generates 116 billion in tax revenues, according to the American Hotel Lodging Association (Patel, 2009, p, 1). That calls for some level of induced investment meant to stimulate the economy. Thats where the role of the government comes in market economies like US. Reduction of interest rates by the Federal Reserve and the enactment of stimulus measure for example the one undertaken by the US government and other governments in the world, are typical Keynesian ideas. Government spending is directed towards infrastructure spending while interest rates are meant to encourage lending to ensure credit flow in the market. While the stimulus package may help other areas of the economy, it fails to mention the hospitality industry, which is being hit hard by the recession (Patel, 2009, p, 1). A second stimulus in the United States may be necessary to stimulate the economy further after the first one had modest success. Hospitality and lodging industry should be the primary focus since the first bailout and stimulus money concentrated on the financial and automobile sectors.  The US 2009 lodging report released by Earnest and Young said that additional federal dollars injected in the countrys infrastructure whether in the hospitality industry or otherwise, will lead in a net gain for the industry in the long run. That will be through improved access to tourist destinations and the improvement of domestic travel industry. Besides, any stimulus package that will be aimed at aiding other industries will help save the hospitality industrys property market. Low mortgage delinquency rates have made hotel values drop and the properties are being sold in throw away prices.
     
In post 911 attacks, the American Hotel and lodging association proposed to congress some stimulus measures that were to help resuscitate the industry. The hospitality industry at the time had lost property and customers were reluctant to travel. The bedrock of the plan was to get some few tax breaks as well as liquidity adjustments. That could have attracted people who could otherwise reluctant to spend in recreation and traveling. The tax incentives included a spousal travel tax deduction and an increase in the business meal and entertainment tax deduction (AHLA, 2001) as quoted in hospitality net. The same stimulus measure will apply in the year 2010 but a little differently because the magnitude of the problem is bigger.

Reduction or suspension of taxes deductions that are levied on people traveling with families will encourage more families to reconsider their position in the course of the economic recovery. Further, the taxes levied on any entertainment that families will have to be halted temporarily to encourage travel and recreation.
   
Payroll tax payments of employees and employers should be temporarily cut or deferred altogether. The money saved through such halting of tax payments will ensure increased income for the employees as well as employers hence reduce financial stress that may spark layoffs. Additionally, the eligibility for qualification for Small Business Loans for the hospitality industry should be extended. The stimulus will create a fund where small hospitality industry businesses will apply for loans to boost their liquidity levels.

The current economic climate has ensured many hotels and other hospitality industry business run short of cash. Hotels have also reported reduced bed occupancy rates due the unsold rooms. Special offer packages to American residents can do a lot to kick-start the growth efforts that hospitality industry may need it. Some of the stimulus money therefore will have to be used to extend subsidies to the hotels so that they can reduce prices customers have to pay.
     
The view by classical economists that non-intervention in the economy by the government was the way to go contradicted sharply with that of Keynesian theory. The government according to him (Keynesian) needs to prod the economy if any growth was to be realized. In cases where there was increased spending by the government, the imbalance created would lead to increased aggregate demand. Businesses will react by increasing the workforce by hiring more employees. It assumed that the increased government spending will enable all industries including the hospitality industry to hire. The stimulus bill enacted last year plus any other that may aim to bailout the service industry, will therefore encourage more hiring in the sector hence accelerate recovery.

Conclusion
The importance of the service industry in economic growth and development cannot be underestimated. The hospitality industry employs 8 of the American workforce. There have been concerted efforts by the American government to prop up the economy out of the recession. The bailout and stimulus packages have worked modestly so far and hiring is somehow picking up again. The stimulus bill to a large extent ignored the hospitality industry and concentrated on industries like construction and the financial services.
     
Part of reasons may have been the difficulty associated with bailing out hospitality industry businesses since they only serve a small number of people. Further more they were not directly hit by the economic downturn as were banks. The hospitality industry was largely a victim of circumstances suffering from the effects of the collapsing financial sector. Its recovery will depend on the direction of the economy as far as unemployment is concerned and any other programs the government may rollout in reviving the economy.
   
Even if there is likely to be another stimulus package in the spring, its highly unlikely that the hospitality industry will be factored in directly. The nearest that the industry will gain will be from a common fund that will be set up to enable businesses access cheap loans. That may be only appropriate for small and medium enterprises in the industry. The big corporations in the hospitality industry will have to depend on credit from financial institutions, an option that may not be economically viable given the uncertainty in the economic growth prospects in the country.

Today, diplomas are needed to get jobs, especially skilled jobs. If one wants to be a fast-food crew, one should at least possess a high school diploma. This is the trend in most developing countries because different international organizations such as UNESCO, the World Bank and UNICEF were promoting education as an effort that could salvage the economy of the nation. This assumption is grounded on the fact that education could give people higher paying jobs. This is known as human capital investment. Indeed, one can expect that someone who had secondary education would get the fast-food crew job than someone who only had primary education or than someone with no education at all.

In the world where technology is rapidly changing, it is very important that people who are going to use the technology are knowledgeable. If people were not educated, then the available technology would be useless. The idea that education can give better paying jobs is a good incentive. However, if there are unavailable jobs to accommodate the skilled populace and if the country is corrupt, then education will have little or no effect to economic progress.

During 1960 until 1990, education expansion was pushed by international organizations. Primary education had been universalized and enrollment increased dramatically. Nonetheless, after several years of supporting education, it is apparent that most countries are still economically poor. Studies revealed that education does not lead to an increase in economic growth. Despite the increase in human capital, economic growth fell during the same period that education expanded. According to researches, GDP is not associated with the increase of human capital. In fact, the difference in economic growth is not associated with the changes in human capital. Furthermore, education could not be the reason for the rapid growth of an economy because wages increase as job experiences increase in almost every sector of the economy.

In a report made by George Mankiw, he elucidates that saving both human capital and physical capital is instrumental to the economic growth according to the Solow model. The human capital saving, in Mankiws report, is determined by the ratio between the students enrolled in high school programs. By including human capital to the equation, the diminishing returns from physical capital were reduced. Mankiw also explained that countries with high savings of physical and human capital tend to grow richer. Mankiw assumed that high human capital could attract investments because the rate of returns from technologies and devices are high. However, Mankiw only focused on secondary education, which is not universal as primary education. Only those with enough money to continue high school education would be enrolled. Thus, the study merely overstated the differences on education.

Moreover, if skilled workers could drive economic growth, then the less the workers are the greater they should earn. The high wage should attract skilled workers from other countries. However, brain drain among developing countries usually occurs. This means that skilled workers are moving out of their countries and work on developed countries because of higher earnings.

The reason why education failed is influenced by how people use such skills. The government should focus on creating incentives for future growth, without this student, teachers, and parents would not perform at their best. The government should create educational policies and create incentives for the high skilled labors.

Chapter 5
If the population increases, the amount of resources available would decrease. This is the basis of the claim that population growth should be controlled if the nation wants to grow economically. Thomas Malthus mentioned that famines could result if the population would continue to increase. Paul Erlich who argued that death rates would increase because of famines and epidemics among Third World countries supported this claim. Nevertheless, none of the predictions came true. While population continuous to grow, food production also had increased. Moreover, there are lower death rates and lower birth rates. Despite these, Lester Brown still insists that the demand for basic commodities is increasing while the resources are decreasing. Thus, the current trend marks the decrease of economic growth and an increase on social and environmental problems. Brown further elaborated that the number of unemployed would also increase. If these assumptions were true, it would only be practical that population growth should be controlled. Therefore, family planning such as the use of condoms should be encouraged. This is accompanied by an increase demand on the funds for family planning.

However, the capitalist market should have been enough to provide the need for family planning if there is indeed a high demand. Purchasing a condom is far cheaper than raising a child. Thus, there was no sufficient reason for International organizations to extend help to promote and provide family planning contraceptives like condoms. In a study made from Lant Princhett, he found out that mothers in countries with high number of births prefer to have more children. Thus, the demand for contraceptive in high birth countries is low.

If overpopulation could really lead to famines, then the growth per capita of GDP in countries with fast population increase should decrease. Nonetheless, studies revealed that there is no correlation between the two. In fact, a long-run analysis showed that both economy and population grow together. Moreover, a survey of different nations would reflect the absence of pattern regarding the two variables. An increase in population is also not related to the increase in unemployment, since an increase in population is a potential worker that could even raise productivity.

Thus, population growth could benefit the society according to the genius principle by Simon Kuznets and Julian Simon, because there are more people that could benefit from a single idea. Therefore, ideas are more beneficial if population is high. Moreover, Esther Boserup argued that an increase in population push the people to think better regarding innovations and technological advances that could resolve scarcity problems.

Population control contraceptives should not be subsidized because the decision to have more children is not affected by the price or availability of contraceptives. In addition, the cost and benefits of population growth are vague since there is no consensus among economists regarding the matter. Population control is something that a country should independently decide.

The best way to control the population would be to promote development. On one hand, the parents who have high economic status tend to have fewer children because they spend most of their time working. Moreover, rich families invest on their children by improving their education, health, and skills. On the other hand, poor families tend to have more children because they have more time to take care of their child and less time to work. This is especially true if the work has low incentives. The only way to counteract these self-preserving conditions is to encourage development because this will increase the amount of time parents spend working.

Chapter 6
Whenever there is a shortage in budget, people tend to borrow or ask for aids from other people. People with money would lend only if the borrower has enough capacity to pay back the loan. This same scenario happens to countries that do not have enough budgets to sustain growth. International organizations and donors would finance aids that ought to help the country prosper. The lending and donating of aids happen especially when the country is in crisis. However, if not use properly, the borrower may not be able to pay back the loan or the aids would be spent without generating any economic progress. Moreover, if the borrower cannot pay the lender, the country may not be able to apply for new loans that could be use to pay for the old ones.

As a result, lenders created the adjustment lending condition. Under this condition, the borrower or aid beneficiary must be able to reform their policies towards economic growth promotion. Nonetheless, the adjustment with growth did not yield its expected result. On the contrary, money was loaned and aids were given but the economy of the recipients did not grow. This is largely because lenders and borrowers were not given the proper incentives for growth. For example, despite the high inflation rates in some countries they continue to receive loans and grants. Furthermore, countries who had shifted from communist regime to capitalist market such as Russia received aids and loans when inflation was already too high to control.

The country with an official exchange rate lower than the black market exchange rate should not receive loans under the conditions of adjustment loans. Countries with high levels of budget deficits resemble bad governance and should not receive loans and aids because it creates an atmosphere unsuitable for investments. Furthermore, a country that has negative rates of interest should not be given loans or assistance because the financial system of the country would not function well. The most important condition would be the presence of uncorrupted government. However, most donors and lenders often neglect the importance of these conditions. Moreover, the borrower country could pretend to have adjustment policies to receive the loans or aids but would not actually enforce or adjust their policy to create incentives for economic growth. One way of doing this is by cutting spending this year to limit the budget deficits, which would attract lenders. This could be effective, nonetheless it creates future problems like an even higher deficit or spending in the future.

Although the adjustment policies are not met, lenders and recipients would still enjoy a positive incentive. Lenders would receive interests and other incentives for lending. The recipient would receive more loans and donations, even if they do not follow the conditions set by the lenders and donors. In addition, donors would continue to donate because they want to help the poor countries. Thus, the recipient would create the necessary adjustments to acquire the loan. Afterwards, they would go back to the old ways so new loans would cease. They would re-adjust again to meet the requirements for new loans. The same process would repeat continuously unless policies are actually changed towards economic growth.

Lender should give loans only if the conditions are met.  The loans should not be based on projected policy changes but the actual policy changes that had been enforced in the past. The countries that create effective policy adjustments that raise economic growth should be given more loans, not the other way around.

Chapter 7
Another panacea that international organizations have thought of to help alleviates poverty in third world countries is debt forgiveness. This means that the debt would be cancelled out, partially or completely. By doing so, the country could allow more of its budget to subsidizing growth inducing projects rather than paying for debt and its interests. This method had been around for centuries. As a matter of fact, the Greek states did the same thing 2400 years ago. It is therefore, not a new concept or methodology of helping poor countries. Prior the year 2000, several campaign were made that advocates total cancellation of debts for all poor countries. This campaign was known as Jubilee 2000. In 1999, the G7 meeting concluded that the debt relief for Highly Indebted Poor Countries (HIPC) should be more rapid and increase in amount. This is in relation with the HIPC Initiative that agreed to provide partial debt forgiveness to the HIPC. Nonetheless, the World Bank and other lenders practiced debt forgiveness since 1970s. The result is unpromising because most of the poor countries remained poor until now. In the 1987 Venice accords, the G7 started the partial forgiveness program. At the same time, the World Bank introduced the SPA (Special Program Assistance) while the IMF created the ESAF (Enhanced Structural Adjustment Facility), which are designed to make rapid, higher, and more concessional forms of relief assistance. In 1988 Toronto accords, the G7 decided to decrease the rates of interest and extend the date of maturities. In 1994 Naples accords, the Paris Club agreed to increase debt relief for qualified countries. When the IMF and the World Bank created the HIPC Debt Initiative, the Paris Club granted the 80 reduction of debts. Moreover, by the year 2000, several non-concessional debts were substituted with concessional debts.

Despite the several acts of debt-forgiveness over the last decades, several poor countries did not make progress at all. The problem lies on the irresponsible type of governance. More particularly, debt forgiveness only encourages governments to incur new debts. This has a lot to do with government that does not care about sustainable development. Such irresponsible government would trade the nations assets for current needs without thinking about future generations. As evidence, the countries that received the highest amount of debt relief were also the ones that engaged in new borrowing. Trading assets includes privatizations and selling of natural resources. As a result, the decrease of assets would lead to a decreasing per capita income and economic depression. Furthermore, an irresponsible government subsidizes supporters without consideration of future needs and keeps the rate of exchange low for imports. HIPC could not have suffered bad luck because not all the HIPC suffered war or higher import prices. Aside from the negligent borrowers, lenders are also acting negligently. The lenders are giving more debt reliefs to countries that already have overvaluation of currency and high budget discrepancy, which does not attract investors at all. The World Bank and the IMF were giving more financial support to HIPC than less developed countries.

The countries that keep on receiving debt forgiveness are those that had wasted the chance to improve economic growth through aid. Thus, debt forgiveness would not yield its desired effect if the government would not be responsible. The policies should changed and the negative behavior should not be restored. Prior to giving aid, the lender should first assess if the country has a responsible government and had good performance in several years. The financial gap should not be filled through debt because it encourage to irresponsible government to borrow more. Debt forgiveness should only be done once, if this is done repeatedly, HIPC or recipient countries would merely wait for their debts to be forgiven.

Chapter 8
The textile industry in the United States is protected by tariffs and quotas, therefore imports could not evade the US market. This protects the textile exports and the economy. Thus, importers would try to any ingenious way to get their products in the market through other means. One of the importers, Daewoo Corporation from South Korea had invested in Bangladesh Desh Garments Ltd. Owned by Noorul Quader. In 1979 Daewoo trained 130 workers from Bangladesh under the condition that Desh would pay 8 of its sales to Daewoo. Unexpectedly, Desh workers learned rapidly. As a result, Quader decided to put an end on the agreement with Daewoo. Thus, in a span of seven years, the amount of production increased from 55,050 to 2 billion.

The process that transpired reflected the story about increasing returns. As could be observed, the increase in capital yields increasing returns. In the scenario, knowledge leaked. This means that a single investor does not manipulate knowledge it is distributed to others and was later used by others for their own benefit. The knowledge contains low-cost high yield method of production that makes the knower wealthy. Unlike machines, more people utilize knowledge. Moreover, people could subjectively use knowledge towards their personal goals. It is inevitable for knowledge to leak because people would simply mimic what wealthy people are already doing. Ordinary people would try to find out and learn whatever knowledge the wealthy people possess. Another reason for the leakage of knowledge is about complementing past knowledge present in the society. Fresh ideas are warmly welcomed if they are correspond or in connection with the previous knowledge. These fresh ideas could benefit the production process increasing the return to capital and encouraging further investments. Without knowledge leaks, the increasing return would only apply to the knower. However, there will be no returns to the society.

When knowledge is leaked, it would lead to an increase in investment, new knowledge would be formed. This knowledge would again leaks and the whole cycle continuous indefinitely. This is known as the virtuous cycle. Its opposite, the vicious cycle happens when the society started with small amount of knowledge and there are no incentives to invest in knowledge. If this is the case, people will not invest in knowledge. Thus, it could be expected that knowledge will remain the same, if not deteriorate, in the future. This cycle is a trap that poor people could not get away. The formation and accumulation of traps are also determined by expectations. Good expectations create higher investment that could boost knowledge and jumpstart the journey of the society to a wealthier state.

The cycles greatly depend on the action of the government because it could change the luck of a business anytime.

A product is produced after a series of task done by different individuals. The production must be at pristine condition to avoid any negligent mistakes. A single mistake would jeopardize the quality of the product. This shows that the production capacity of the workers is dependent on the skill of their co-employees. As a result, there exists a complementary relationship between workers. The skilled worker should match up or have the skill that would complement the skills of other workers so that there will be a high return to acquire skills.

Most of writers of international relations have given little thought to the need for control of crime just like their counterparts in criminal justice and procedure do with regard to global politics. But this is not so with the coming of the Policing the Globe by Andreas and Nadelmann

Andreas and Nadelmann have all it takes to write on such an important topic of policing the globe. Andreas teaches political science at Brown University and has conducted far-reaching and extensive research on the border between the United States of America and Mexico. Nadelmann is the head of alliance of Drug policy .He is the most experienced person and a supporter of drug reform. In addition, Nadelmann has had a general interest in the control of crime worldwide. He indeed laid the ground work for writing this book with his Cops Across the Borders that was published in 1993 by Penn University Press. (Dominguez)

Policing the globe is an academic masterpiece that will be much used by researchers and students as well because of its readable nature. This is unlike most academic works that are confusing and not easy to read. It is a pity that the pair has provided enough information pertaining to the genesis of a more coordinated and integrated global police network. It is of utmost importance that the nations pay attention given the rate of hastening of the integration resulting from the 911 terrorist attacks (Andreas 174)

This book is completely dense. It is the kind of writing where the readers are compelled to underline the most important and significant parts only to find that they are underlining almost the whole book.
Well, the main reason for the rise in cooperation among the countries is because of the perceived or real increase in international crime. The desire for globalization of criminal justice becomes very important as a result of rise in international networks of criminals. (Andreas 13).Sounds really good reason but according to Andreas and Nadelmann (Andreas and Nadelmann 22), this is not the most likely reason. The writers reject the traditional belief in the rise in crime as a result of globalization and instead say that this is a ruthless effort by the western world to provide their own definition of crime so as to gain politically, economically and more so impose their morals on other countries. Their exposition has also changed the way I viewed the two issues crime and globalization. I was with the traditional crowd that so a direct relationship between the two aspects.

The process of global crime control has taken several centuries starting with attempts to fight international piracy, slave trade, efforts to deter oppression of political rivals ,the drive against international human trafficking and prostitution ,the fight against drug trafficking and the war against terrorist activities. (Andreas, 25)

The most common thinking on the role of police in response to these types of criminal activities does not provide a conclusive answer. We may be required to ask ourselves what are these criminal activities and why are they a threat This is because the most common serious crimes on the global scale are drugs, laundering of money, human being trafficking and violence perpetuated against political opponents in addition to terrorism. (Andreas 28).

The book examines a topic that is very important in international relationships just like criminal law. The authors give an overview of the future aspects of criminal law and international policing. The authors observe that it is of paramount importance to integrate political and social understanding in order to be able to understand the apparent rise in international crime control. (Andreas 88).

In the political case, it is understood that strong countries try to impose their wills on those that are weak and in this case they show how it has happened. From the start it was Europe that started this type of oppression followed recently by the United States of America especially after the Second World War. The United States has been able to impose its criminal justice process and desires on a world wide scale. This has resulted in the homogenization of the international criminal law and procedure. (Andreas 99)

But it also worth to note here that the American are not always concerned about national security ,their economy and politics but also have a burning desire to fight against all manner of evil and preferences for morality. The authors refer to moral advocacy that cuts across the nations and how it has fuelled the rise in modern day slavery and drug resistant states. Therefore the authors lay down a basis for understanding how global criminal activities are established. (Andreas 8)

At the middle of their work the authors clearly describe the development of crime control and management .In some cases they give detailed explanation of how there has been a rise in global cooperation against the European perceived assassins and criminals and how they are being replaced gradually as the main source of criminal activities by the United States. And because of this the FBI and DEA have branches in several countries across the globe at the moment (Andreas 135)

The question to ask is where is the next stop from here The writers say that the fight against drug trafficking is likely to stay around with us for some period of time regardless of its malfunctioning and security damage. But the authors are unanimous that the failure of an international prevention administration does not necessarily amount to the demise of such a noble idea. Rather it is a symbolic gesture that it will overcome the current moral dissatisfaction. Open dissatisfaction from the regime is highly unlikely any time soon (Andreas 57) Nevertheless they do identify some problems around the corner. One, that the international agreement on marijuana is coming down and secondly, that the rise of Eva Morales as the president of Bolivia could lead to the demise of the UN Single resolution embargo on the cola plant. (Andreas 245)

Although the writers have given an all inclusive approach to international policing by the use of complicated method, their theory generally lacks an empirical undertone. Their tone in some part sounds biased especially with respect to the fight against drug trafficking. At some point the usage of the word entrepreneur in almost all the sections of the book could confuse the reader since it has several meanings in each context (Andreas 240)

But Policing the Globe is a big issue than the fight against illegal drugs like marijuana and it raises critical concerns that will lead to a global police situation. All in all the writers have done a good job and this book is very important for anyone with an interest in global policing. Given some of the future expectations of the authors, this book is worthy reading by anybody interested in keeping the world at peace. I highly recommend it.

The Republic of Yemen is located at the southwest part of Saudi Arabia, east of Oman and bounded in the south and west by the Gulf of Aden and the Red Sea, respectively. It has a total area of 203,849 sq miles (527,970 sq km) with an estimated population of 23,822,783 having a growth rate of 3.4 in 2009. Its capital and largest city is Sana (Arab.de, 1999).

In 1994, the nation fell into a civil war against the north and south over differences in power sharing, much poverty in the south over north and breakdown in political cooperation. In 1997, a parliamentary election was held and won over by the General Peoples Congress but in 1998-1999, a militant Islamic group, the Aden-Abyan Islamic Army, threatened to overthrow the government and turn Yemen into an Islamic state. Although Aden fell on July, conflicts arose between the government and religious minority groups. Still, civil turmoil continues in the south. The militants  strikes in Yemen strengthened the governments cooperation with the US in fighting terrorism yet, the state is fragile and unstable as it is regarded as a breeding ground to the famous al-Qaeda militants as well as intermittent violence from rebels (infoplease, 2007).

Yemen is attracting global concerns due to humanitarian crisis, deteriorating security and other political and social issues. The government then collaborated with different international organizations to aid it and macroeconomic situations were indicated.

Discussion
The macroeconomic indicators

Table 1 Economic Indicators in 2007-2009
from the CIA World Factbook Beginning of 2009 (Source FAO, 2009)

IndicatorsYear (Indicator Value)2007(est.)2008 (est.)2009 (est.) HYPERLINK httpwww.theodora.comwfbwfb2000definitions.html l GDPGDP- (purchasing power parity)54.33 billion56.07 billion58.2 billionGDP   (real growth rate)3.503.23.80GDP   (official exchange rate )15.07 billion27.56 billion26.24 billionGDP - composition by sector
agriculture
industry
services

12.40
42.2
45.4
12.4
40.9
46.7
9.7
39.3

51.1Labor force5.972 million6.316 million6.641 millionInflation rate (consumer prices)20.8010.703.6Industrial production growth rate 3.22.55.8GDP - Investment (gross fixed)17.40 19.10 19.9 GDP - Public debt29.2 28.1 39.6 Debt - external5.494 billion6.122 billion6.245 billionUnemployment rate35(2003 est.) HYPERLINK httpwww.theodora.comwfbwfb2000definitions.html l population_below_poverty_linePopulation below poverty line45.2 (2003 est.)

According to the Human Development Report of the United Nations Development Programme (UNDP), Yemen ranked 140th among 177 countries in Human Development Index (HDI) with per capita Gross Domestic Product (GDP) of 2,235 (at purchasing parity power) categorizing it as one of the least developed countries (FAO, 2009).

Over the last three years, Yemen s real growth rate (GDP) averaged to 3.5, ranking 42nd in comparison to the world. The GDP (purchasing power parity) data in US dollars in 2007-2009 was estimated at 54.33 billion, 56.07 billion, 58.2 billion, respectively, ranking 84th in the world (CIA World Factbook, 2010).

Its economic sector is dominated by the service sector, followed by industry and agriculture, while government service is 21 and transport is 13. Tourism is not dependable because of safety reasons, water shortage and limited infrastructure (FAO, 2009).

The country also poses serious problems in the future due to the diminishing oil reserve which is expected to deplete in 10-12 years on which the economy highly depends. Over the years, as shown in Table 1, the industry sector showed a significant decline.

The Yemen economy slightly increased as oil prices stabilized in 2007. It accounted for the 85 of export earnings and about 70 of government revenue. Due to depletion, the oil sector is expected to fall by some 7 but is deferred by the growth in non-oil sector (Spring, 2007). According to FAO (2009),  decline in oil production and low prices is expected to broaden the fiscal deficit and limit government spending, made for about 50 by fuel subsidies (about 14.5t of GDP in 2008) and public sector wage bill.  As shown in Table 1, a big increase in public debt is shown from 2008 to 2009.

The moderate development is also due to the sales of natural gas of the Yemen Liquefied Natural Gas (YLNG) with GDP growth forecast at 3.8. The external public debt then fell from 38 GDP to 22 GDP in 2008 standing at about 5.7 billion at the beginning of 2009 (FAO, 2009).

The inflation rate also declined according to Darem (2009) due to the decrease of food and beverage prices. This made the Central Bank of Yemen decrease their interest prices twice since January of 2009 hoping to contribute in increasing the supply of goods and services to attain stability in price levels.

Yemen has one of the highest population growth rates which greatly influence poverty. In the report of FAO (2009),  currently, about 45 percent of population is below the age of 14, which has major social and economic implications, especially with respect of access to social services and employment.  Also, human resource capacity is limited because of low literacy and enrollment rate as well as gender inequalities. This is a major concern since 65 of women compared to only 27 of men are illiterate, specially, these are the major factors that would increase the rate of unemployment in the following years. Yemen ranked 15th compared to the world in the latest report of the CIA World Factbook (2010).

Another resource facing depletion is the groundwater resource as table water level is falling by some two meters per year as the only source for drinking and irrigation (FAO, 2009).

Conclusion
It is found that Yemens economy is moderately growing yet very unstable because the global recession is greatly affecting sudden change in oil prices. Yemens economic performance is still inadequate for its people. Further economic increase is critical due to oil reserve depletion but growth forecast due to natural gas has a good potential. Also, the country should address issues in political and social instability. Other major concerns like poverty, education and gender inequalities should focus attention on improving its unemployment rate and developing sustainability.

During the past decades, female labor force participation has risen in most European countries. Nevertheless, there are still substantial differences in participation across countries. Moreover, women are typically over-represented among the unemployed.

The result that female labor supply is more responsive has been explained by reference to the so-called Le Chatelier principle, which basically states that individuals with more options have more elastic supply functions. Suppose that women have more alternatives to devote their time to (notably, in addition to work and leisure, also home work including child care) than men. If the wage rate increases then women substitute time away from both leisure and home work, resulting in a larger labor supply response than for men.

Along these lines one can also explain the lower level of labor force participation among women. One of the factors affecting lower level of labor force participation could be heterogeneous job.

What is Heterogeneous job
Heterogeneous job is a job that involves multiple items having a large number of structural variations.

In the paper we shall discuss the following
Woman employment all over the world
Woman employment in different types of work
Factors that affect a person employed
Factors that affect women employment

Index

Woman labor is present in every field of world. Not a single field is left by this gender of nature. Today a woman can handle a variety range of services. While a housewife, a mother being a manager of her home, a lady president can handle management of a nation. A woman can become a pilot, work in military and police, doctor, engineer, nurse, work in entertainment and media and almost every field where a man can work.

The most challenging work which a woman can take and she has the monopoly in this field is the work of a surrogate mother. This is the field where a man cannot enter at least till there is any concrete invention of method of becoming surrogate father. In short woman has performed a wide range of jobs.

In current century number of heterogeneous jobs are available throughout the world for woman. Let us study a data provided by OECD Employment Outlook how woman are employed in the different countries.

Table 2.1 shows data of aggregate labor supply all over the world in the form of percentage to total population the working age group.

It can be seen that from the year 1998 to 2008 the employment opportunities have constantly increased all the over the world, highest being Iceland amongst all countries.

However we can also see that woman labor supply is lesser than man in almost all the countries. Where employment to men is around 60 to 80 of total population in same age group, woman employment is between 28 to 60 of total population in same age group. Only Iceland is the exceptional case in the entire series.

Table 2.1 Aggregate Labor Supplies
Total of working age populationWomen of female population (15-64)199820072008199820072008

Australia67.9
72.8
73.2
59.6
66.1
66.7

Austria67.8
71.4
72.1
58.5
64.4
65.8

Belgium57.3
61.6
62.0
47.5
54.9
55.7
Canada68.9
73.6
73.7
63.5
70.1
70.1

Czech Republic67.5
66.1
66.6
58.7
57.3
57.6

Denmark75.3
77.3
78.4
70.3
73.3
74.4

Finland64.8
70.5
71.9
61.3
68.5
69.0

France59.4
64.0
64.6
52.4
59.4
60.1

Germany64.7
69.0
70.2
56.3
63.2
64.3

Greece55.6
61.5
62.2
40.3
48.1
49.0

Hungary53.6
57.3
56.7
47.3
50.9
50.6

Iceland82.2
85.7
84.2
78.3
81.7
80.3

Ireland59.6
69.0
68.1
48.2
60.3
60.5

Italy52.2
58.7
58.7
37.3
46.6
47.2

Japan69.5
70.7
70.7
57.2
59.5
59.7

Korea59.2
63.9
63.8
47.3
53.2
53.2

Luxembourg60.2
63.6
64.4
45.6
54.5
55.8

Mexico60.4
61.1
59.9
39.3
43.6
41.4

Netherlands69.5
74.8
76.1
59.1
68.5
70.2

New Zealand69.6
75.4
74.9
62.1
69.0
69.0

Norway78.3
76.9
78.1
73.6
74.0
75.4

Poland58.9
57.0
59.2
52.2
50.6
52.4

Portugal66.8
67.8
68.2
58.3
61.9
62.5

Slovak Republic60.5
60.7
62.3
53.5
53.0
54.6

Spain52.4
66.6
65.3
36.5
55.5
55.7

Sweden71.5
75.7
75.7
69.4
73.2
73.2

Switzerland78.0
78.6
79.5
68.8
71.6
73.5

Turkey51.4
44.6
44.9
28.5
22.8
23.5

United Kingdom71.0
72.3
72.7
64.2
66.3
66.9

United States73.8
71.8
70.9
67.4
65.9
65.5

OECD-Total65.1
66.6
66.5
54.4
57.5
57.5
Last updated 2 October 2009
Note  unweighted average.
Source OECD Employment Outlook.

HYPERLINK  l _Index 3.  Economic theory
For further study how different job areas affect woman employment let us analyze the table 3.1.
A range of statistics from the 2002 Labor Force Survey reveal key trends in female employment. Comparisons are made over five and ten years and, where relevant longer time periods.

Table 3.1 Trends in female employment 2002- By Melanie Duffield, Economy and Labour Market Division, Department for Work and Pensions

Sample size too small for a reliable estimate.
Note these data have not been reweighed to post-2001 Census interim revised population estimates.
Men were less likely to work in services than women (67 per cent of whom worked in the service sector), with the largest differences being in public services (administration, education and health) where only 14 per cent of men were employed. In contrast, nearly one in five mens jobs were in the manufacturing sector.

The number of jobs filled by women increased by 890,000 over the five years to March 2002. Growth in the number of womens workforce jobs since 1997 accounted for two-thirds of the total increase in womens jobs between 1992 and 2002. Since 1997 the number of womens jobs in manufacturing has fallen by 225,000, easily offset by an increase of 1.1 million in the number of service jobs occupied by women. There were 580,000 more women in jobs in finance and business services and 660,000 more women in jobs in public administration, education and health than there were in 1992. Over half the net loss of manufacturing jobs over the past ten years has been in womens jobs, as have over half the jobs gained in distribution, transport and communications.

Occupations Traditional areas of female employment, such as secretarial and administrative occupations and caring occupations remain predominated by women (see Table 3.1). In spring 2002, 97 per cent of those in secretarial and related jobs and 91 per cent of those in caring personal service occupations were women. They also predominated sales and customer service occupations with 68 per cent of all in employment being women. Women showed less interest in manual occupations, in particular within skilled trades occupations and among process, plant and machine operatives. They were also underrepresented among managers and senior officials, where only 31 per cent of those employed were women.

Women with children had similar occupations to women without children. Women with children were more likely to work in personal service and elementary occupations. Women without children were more likely to work as managers and senior officials. There was a stronger relationship between hours of work and occupation. Women working part time were more likely to work in personal service occupations, sales and customer service occupations and in elementary occupations. Women working part time rather than full time were three times as likely to work in sales and customer service occupations and four times as likely to work in elementary occupations. Women working full time were four times as likely to work as managers or senior officials and twice as likely to work in professional occupations. 

Descriptive data analysis
As seen from the above table, women have been working in those areas where they have expertise. They are not seen to be working in mens areas where jobs are seem to be tougher than woman job, e.g. Process, plant and machine operatives, elementary occupations, etc.

Women are also not seen to be working on senior position as they do not get easy promotion in senior management not because of their inefficiency to handle the position but because they are less likely to devote the time that is involved in higher positions. For such reasons even a very well knowledgeable woman remains underprivileged.

Further woman having children are also less likely to work for man dominated jobs. As womans attention is divided between family and job she is less likely to devote her time in job and hence she might remain behind the competition with men.

It cannot be concluded from the above table that woman do not want to get promoted or take higher responsibilities. In fact women have also flourished in certain high skilled jobs and have performed better than men. Today woman has not only become a doctor or an engineer but also a president of a country or a caption of an aeroplane. But these rare case women have to sacrifice their personal enjoyments. The family members of these women have to be extra ordinary supportive. This may not be possible with every woman.

5.   HYPERLINK  l _Index Parameters estimation, model validation
The above data showed working women statistics in woman dominated as well as man dominated work. But the data did not show us the determinants that affect women employment.

Taking ahead our study of workingwoman, let us study the determinants that affect a person whether man or woman while working.

5.1 Opportunity
Employee survey studies show that employees are more satisfied when they have challenging opportunities at work. This includes chances to participate in interesting projects, jobs with a satisfying degree of challenge, and opportunities for increased responsibility. Important this is not simply promotional opportunity. As organizations have become flatter, promotions can be rare. People have found challenge through projects, team leadership, special assignments - as well as promotions.

5.2 Stress
When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere with employees personal lives or are a continuing source of worry or concern.

5.3 Leadership
Data from employee satisfaction surveys has shown employees are more satisfied when their managers are good leaders. This includes motivating employees to do a good job, striving for excellence, or just taking action.

5.4 Work Standards
Employees are more satisfied when their entire workgroup takes pride in the quality of its work.

5.5 Fair Rewards
Employees are more satisfied when they feel they are rewarded fairly for the work they do. Consider employee responsibilities, the effort they have put forth, the work they have done well, and the demands of their jobs.

5.6 Adequate Authority
Employees are more satisfied when they have adequate freedom and authority to do their jobs.
With above-mentioned factors a person can be willing to work or not to work or change hisher job based on the personal satisfaction.

6. HYPERLINK  l _IndexConclusion
In addition to the above factors, there are further more factors that affect working power of woman. The most common factor is the housework and managing the house. If the woman handles the house singly without any help from her husband or male members of the family then she will find it difficult to go out for paid jobs.

If a woman has to work in such an environment where both man and woman are hired, then there are certain factors, which discourage a woman to work with man. For instance there are jobs involving late hours seating, work during official holiday, etc. could be comfortable for a male employee while a woman may find it very difficult to adjust beyond a particular time of job.

Further the cases of sexual harassments at workplace may also exist where man and woman both have to work at same location. Many laws and acts have been formed for the protection of woman but ultimatly this factor discourages a woman for working with men.

In spite of different roles played by a woman in variety of jobs with full sincerity and intelligence, it is sad that woman employees are under estimated.

COMPARITION BETWEEN BULGARIA WITH OTHER DEVELOPING NATIONS
SIMIRALITIES
The economy and standard of living
 
In the light that bulgaria economic indexes are way below those of developed nations, it can be argued that the country can only compare with the developing countries even if it index are much higher. With 7.1 of all employment being in agricultural sector, Bulgaria stands shoulder to shoulder with Brazil whose agricultural sector accounts for 6.5 of all jobs. Service sector employs 56.1 in Bulgaria, 58.4 in India and 66 of all employees in Brazil. Bulgaria is thus at par with this developing nations The living standards though better than in most developing nations cannot match those of developed nations. It is thus arguably correct to say that Bulgaria is similar to other developing nations as far as these facts are concerned.

Size and Demographic
Most small countries in terms of geographical coverage are among developing nations. Bulgaria compares well in size with countries such as Benin, (111 thousand km sq), Nicaragua (119 thousand km sq), North Korea (120 thousand km sq) and is smaller than Kenya (570 thousand km sq). The total geographical area of Bulgaria is just slightly greater than that of Tennessee State.

In regard to the population size, Bulgarias 7.2 million is within the range of most small developing nations. Benin with 6.5million and Burundi with 7.1 million people among others are in the same league with Bulgaria as far as the numbers are concerned. Death rate is also high in Bulgaria, 14 persons for every one thousand per year, this higher than Brazils 9, Kenyas 11and equivalent to Cameroons. Her population density is similar to that of Egypt, Costa Rica, Jordan and Malaysia among other developing nations, all with between 63 and 68 Persons per kilometer square.

DIFFERENCES WITH OTHER DEVELOPING NATIONS
Size and Demographic
In several ways, Bulgaria exhibit characteristics of a developed nation making it different from other developing nations. To start with, the fertility rate is low translating to negative population growth index, a common feature with developed nation. Secondly 71 of Bulgarian lives in urban centers. Comparing this with other developing nations such as India and Kenya with 29 and 22 respectfully, Bulgaria is different. The life expectancy in Bulgaria is also much high than in India and Kenya as at 73.9 years visas 66.9 and 57.86 respectfully. In Brazil life expectancy stands at 71.9 years, also lower than that of Bulgaria.

The economy
The GNI per capita using PPP for Bulgaria is quit high in comparison with other developing nations. Her rating is among HIC at 11,950 U.S , high than Brazils 10,070 U.S , Indias 2,960 U.S  and Kenyas mare 1,580. Bulgarias GDP per capita is at 12,600 U.S , also higher than what most developing nations have posted

Standard of living
If the human development indexes are any thing to go by, Bulgarians enjoy better living conditions than majority of people in other developing nations. Ranked 61st with an index of 0.840, Bulgaria is above Brazil, India and Kenya with indexes of 0.813, 0.612and 0.541 respectfully.

FACTS ABOUT BULGARIA
Geography
Bulgaria is a small nation in south east Europe with a total area of 110,910 sq km, bordered by Serbia (Yugoslavia) to the east, Macedonia- south west, Romania to the north, Greece to the south, and Turkey -south east. She boasts two mountain ranges and two great valleys as the main natural feature. She also shares Black sea with her neighbors to the east. Maritsa and Danube are the biggest rivers in Bulgaria.

Climate
The country experience cold and damp winters while the summer is hot and dry

Colonial experiences
Bulgaria was conquered by the Byzantine in 1018 and was ruled until 1185 when she managed to brake free and established the state. The freedom was short lived as Bulgaria was put under Ottoman Empire in 1396.During this period Bulgarias cultural centers were destroyed. Any attempt to seek freedom was cruelly putted off. Many Bulgarians sort refuge in foreign countries at the time. It was the 1877-1878 war that paved way for freedom through a treaty signing. Bulgaria realized it complete freedom in 1908. (Bureau of public affairs)

CONCLUSION
 In the light of the above data, I find it difficult to dismiss Bulgaria as just another developing nation. In many ways the country is head and shoulder above most nations classified as developing. On one hand Bulgaria exhibit characteristics of a developing nation and on the other, she pose as developed nation. In my opinion, the country is in mid-bridge to the island of the developed. 

It is certainly no secret that the United States economy has been greatly weakened over the past 2 years. Often, such down cycles are easily reversed but the current situation may be so dire reversals may take decades. A clear examination of the data stats of the economys activity over the past year will provide a detailed analysis of what is contributing to such decline.

From March 2008 to March 2009, the figures related to the real GDP show a slight increase from 5.4 to 5.6. This would indicate a minor amount of growth in the overall economic output of the nation. Such numbers are not exactly indicative of a nation with a booming economy. However, the slight increase is a far preferable outcome than a decrease at it indicates consumer spending is increasing even in an overall weak economy.

In a rather surprisingly high adjustment, the inflation rate rose from 1.00 in Feb 08-09 to 2.21 in Feb. 09 -10. This can be considered a negative indicator since it reveals consumer prices are increases. That means you can purchase less with a dollar amount than previously which can lead to a major devaluing of the dollar. The CPI has increase from 212.703 in Feb 2008 to 217.591 in Feb 2010. This means consumers are spending more on their consumer purchases but with the increase of inflation, they may be getting less for their monetary expenditure.

The unemployment rate over from Feb 2009 to 2010 increased from 8.2 to 9.7. This is an outright disaster as it is one of the highest unemployment rates on record. With fewer people working, the economy cannot be considered healthy at all.

The value of the dollar further appears weakened in the Euros per Dollar exchange rate as it dropped from .7541 in March 2009 to .7399 in March 2010. That means the dollar is being devalued on the foreign exchange market. A dollar weakened globally can have very negative repercussions on an economy that is trying to bounce back from a recession.

The three month Treasury Bill rate dropped from .21 - .16 during this same period and that is extremely poor news since it discourages investments in treasury bonds. After all, who would want to get a weak return on their investment

From February 2009 to February 2010, the budget deficit grew from 193.8 billion to 220.9 billion. This means the government is going deeper in debt which discourages investments since hyperinflation and increased taxes are a likely outcome of such figures.

M2 (money supply) growth rate has been quite dramatically in decline over the years as Feb 08-09 was at 9.29 and Feb 09 -10 is at 2.13. A declined money supply means printing more money may be necessary and that is yet another stepping stone to inflation.

The nations trade deficit figures are also dim. January 2009 saw a 36.9 billion trade deficit and January 2010 reveals a 37.288 billion deficit. This means the nation simply is not getting the same benefits or profits that foreign markets are receiving and this certainly does little to boost GDP or reduce the deficit. Money is simply not flowing into the nation as much as it is going out of it.

While these figures are certainly not positive ones in terms of their presentation of current economic trends, they are not so dire that the course cannot reverse itself. Clearly, there will be a need to determine why trends are weak and then address them. If this occurs, a positive economic upswing may prove possible.