Effects of FDI in the Dominican Republic

Effects of FDI in the Dominican Republic Introduction Background and purpose The Dominican Republic has done a major shift in its economy, coming from an agricultural economy, to one based on services. An estimate of the sectors contribution to the country are, 60.2% in services (tourism, transportation, communications, finances, others), 15.5% in industry (manufacturing), 11.5% in construction, 11.3% in agriculture, and 1.5% in mining (CIA fact book). As of right now only tourism leads the service industry, but is soon to be challenged by the investment of contact centers. Because of this shift in its economy the Dominican Republic has become home to various foreign investments, but the one this study will focus on is on the foreign direct investment in contact centers, or call centers as they are also known. It is important to explore the advantages the Dominican Republic offers to attract such foreign investment, as well as to analyze the fact that although there are benefits, it could also lack the necessary infrastructure to sustain this rapidly growing industry. Due to the ongoing world financial crisis, many international companies are struggling to keep their business afloat and looking to establish their contact centers outside of their home based countries. Saving money and reducing operational cost are some of the main reason companies move and do foreign direct investment (FDI) abroad. Investing and conducting operations overseas seems to be the answer that foreign contact centers are looking for in order to meet such goals. It can be said that the Dominican Republic offers an answer to the difficulties contact centers companies are experiencing and continue to confront back at home. Some of the solutions given to these companies are a great business climate for foreign direct investment (FDI), incentives and good geographical location, among other compensations. As a result of moving abroad contact centers gain a particular advantage over their competitors. These advantages can range from cheaper operational cost, strategic location a nd skilled personnel, to a variety of options which may or may not be available in the Dominican Republic. But like everything in life not everything is perfect, the country also needs to confront a sad reality, which is that although it offers good things to investors, it also lacks of other good things. This study will provide the key aspects of contact center FDI in the Dominican Republic in order to present some of the weak and strong points the country has on this industry. By doing this the report looks at what the country has to offer to current and future investors in the contact center industry. It will also provide-from the investors point of view-what makes the Dominican Republic an attractive place to invest foreign capital in contact centers, as well as some of the problems encountered throughout the business venture. Although information provided by the governmental institutions in charge of spreading information about this industry say the country is capable, suited and ready to meet all the requirements of international investors, it is a fact that no system is perfect. This is where facts will be laid down in order to show what truly attracts, keep or loses these investments on the island. Based on those previously mentioned facts the study will look at what improveme nts can be made by the country in order to keep a competitive edge on the rapid growing industry. With this information the reader will comprehend the flaws in the system, and what measures are needed in order to correct them and generate a more positive investment climate. Along with this positive investment climate the study will show the impact call center FDI has had in the country. An efficient and effective investment climate can only be produced by pointing out the pros and cons of what the Dominican Republic has to offer to its investors. The conclusion of the study wishes to convey that these improvements can be achieved by taking action upon the recommendations given. Being that this study is based mostly on empirical knowledge, some of the observations made will be presented based on the industry expertise of the writer of over 7 years or working experience in this field. Research questions Is the Dominican Republic a good place for FDI? Have contact centers FDI created a real impact in the Dominican Republic? Research methodology In order to answer the questions mentioned above, this paper we will use a mixture of methodologies in order to analyze if the country is truly a good place for contact center FDI and if the industry has had an impact in the Dominican Republic. These methodologies include interviews, qualitative research and quantitative data. Organization of paper This document will be composed of four chapters, the first one being its introductory part. The first chapter will provide a brief introduction and background of the Dominican Republic and what sectors comprise the FDI in the country, along with the research questions and research methodology. The second chapter will present an overview of foreign direct investment, inflows, trends, performances and investment climate that pertains the country, as well as the promotion agency in charge of FDI in the country. This information will be in comparison with selected economies from the Caribbean, Latin America and others. The third chapter will cover a more in-depth analysis of contact centers in the Dominican Republic, flaws and investor perspective. The study will also look at a specific company from which the study will depict the impact this specific center has had in the country. The concluding and fourth chapter will provide key findings from the study and recommend future improvement s based on those findings. Overview of FDI in the Dominican Republic FDI trends and performance in Dominican Republic The Dominican Republic, like many other developing countries, is actively seeking to attract FDI. They are not only seeking FDI as an important factor in creating employment opportunities and additional source of income, but rather for the reason of potential spillovers of knowledge and technology. The strong public support for FDI in the Dominican Republic is expressed through the creation of the Center for Exports and Investment of the Dominican Republic, institution in charge of all exports and investment, along with other measures taken by the government. Some of these measures include simplification of administrative procedures, aid from the CEI-RD in logistics and information, subsidies, tax breaks, exemptions and other instruments that facilitate FDI. Before addressing the question of whether FDI in the Dominican Republic has led to development, spillovers of knowledge and technology, as well as, if it is a good place for contact centers to establish and invest, the study will provide an overview of FDI inflows and trends in the Dominican Republic. FDI inflows in the Dominican Republic have made a miraculous recovery from 2004 to 2008 according to the data by the World Bank (World Bank, World Development Indicators). As any other developing country, the inflow of foreign capital was affected by the political environment, which reflected in an average loss of almost 200 million dollars per year during the 2000-2004 governmental period. During this period the collapse of a major bank caused financial turmoil and many investors were forced to leave the country. After a change of government and the macro stability was placed back in track by the new authorities, the country received an average foreign capital inflow of 450 million dollars a year, to earn a total of over two billion dollars in FDI inflows (See figure below). This great recovery happened during the 2004-2008 period, as it was first mentioned, and it is still improving as the country keeps positioning itself as a preferred destination for FDI. Although contact centers are not the main reason for this fast recovery in the FDI, the new rapid industry of contact centers are playing a very important role as it continues to evolve into a leading industry in the service field. In President Fernandez first governmental period (2004-2008) the country recovered from the worst financial crisis in many years. During 2005 the country predicted a GDP growth of 9.3% and inflation to be brought under control at 7.3% throughout the 2004-2008 years. By managing these issues President Fernandez said We have rescued the confidence of investors by achieving macroeconomic stability (Leonel Fernandez, 2004). Having achieved macroeconomic stability, the Dominican Republic received US$1 billion worth of foreign direct investment (FDI) in 2005, up 40% from 2004, and U.S. investment accounted for around 40% of the total (CEI-RD, 2006). This led to an improvement of FDI inflows and mechanisms to continue attracting and sustaining this newly found investments. Below are the net inflows of FDI for various Latin American and the Caribbean countries, including the Dominican Republic. Investment climate When one thinks of the Dominican Republic, images of tropical beaches and all-inclusive resorts may come to mind, but this ten million-strong nation, occupying two thirds of the Caribbean island of Hispaniola, also has one of the Americas fastest growing economies and diverse scenery in the Caribbean (BusinessWeek, 2006). The briefing paper Foreign Investment in Latin America and the Caribbean, 2008 is one of the latest editions of a series issued annually by the Unit of Investment and Corporate Strategies of the Economic Commission for Latin America and the Caribbean (ECLAC) Division of Production, Productivity and Management. This report presents-in a very detail manner-the foreign investment done in Latin American and Caribbean countries, showing their relative differences and investment climate among other indicators. This report also touches on the contact center industry, which has contributed greatly to the ever increasing FDI inflow of the Dominican Republic. Comparing to oth er countries the Dominican Republic shows one of the best FDI inflows by reflecting a relative difference of 83%. What this means is that FDI activities has been constantly growing in the country, thus reflecting good initiatives from the country and a positive improving investment climate (see image below). A good investment climate is not created by simple marketing; it takes hard work, good economic policies and first-class governance on behalf of the government and its Head of State. Because many countries offer desirable investment conditions companies frequently ask themselves, where they should invest their capital. The answer needs to be provided by the country that wishes to be the host of the foreign investments these companies wish to make. The Dominican Republic has characteristics that make it a desirable place to make an investment of any kind, but the question that still lingers around is if the country can really sustain an investment of great magnitude. Offering the right investment climate in the Caribbean is something that the country wishes to achieve, but is not always successful on doing so. With a long history of attracting considerable FDI in a variety of sectors, the Dominican Republic is a regional leader in attracting contact center foreign investment. Longstan ding political stability and a diversifying economy have led many foreign firms to choose the Dominican Republic as an investment destination. Recent success in attracting FDI is due to the countrys investor-friendly legal regime, generous incentives, and infrastructure capable of supporting new technologies, including information technology (FDI Magazine. Financial Times Magazine. August 2005). As mentioned earlier, this success is fairly new and the Dominican Republic still faces the challenge of maintaining and attracting this foreign investments. A great way to see how well positioned is the country and the investment climate it offers is to do a comparison of economies. Doing Business 2010: Reforming Through Difficult Times is the seventh in a series of annual reports investigating regulations that enhance business activity and those that constrain it. The report presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time (Doing business, 2010). Looking at this specialize report the Dominican Republic reflects its ranking in ease of doing business and other important world ranking criterias that foreign investors consider necessary to know before investing in any. Although this report is using specific economies, the data compares the Dominican Republic to the economies of countries around its region, as well as others from a distant hemisphere and much more developed than the island. One basic criterion for investment is the ease of doing business, the chart below reflects a clear weakness for the Dominican Republic in this area by ranking lower than a Puerto Rico and Jamaica. Puerto Rico and Jamaica are much smaller countries, which may contribute to more agile processes, but the fact that they are neighboring countries there should be a bigger similitude among them in terms of how business is handle. This is a clear sign that depending on how a country handles its business will reflect how efficient their mechanisms are, therefore providing a bigger ease of doing business. Another factor that should not be of much importance is the fact that Jamaica and Puerto Rico receive assistance, guidance and at times are regulated by developed countries. This should not be an excuse for why the Dominican Republic is falling behind in such a basic and important principle. (Doing business, 2010). The chart below, which has also been extracted from the Doing Business 2010: Reforming Through Difficult Times Report, touches on another very important factor for investors when they consider making an investment abroad. The ranking given in this chart is compared to the selected economies of Haiti, Puerto Rico, Singapore, Rwanda and others. This comparison is done once again in order to show how the Dominican Republic presents itself as a favorable investment location. Yet again this favorable climate for investors is not providing the best climate because is falling behind to neighboring economies which only advantage seems to be a more organize and efficient system. The Dominican Republic continues to improve, but is weak in its bureaucratic process, which as a result continues to slow down its progress. Dominican Republics ranking in doing business (Doing business, 2010) Once an investment is done, one of the biggest-if not the main concern of any investor-is how secure is their investment in a foreign country, meaning how are they protected from any unwanted situation. The Dominican Republic has recently passed a new legislation which provides a greater protection to its investors, thus providing investors with a contingency plan if anything happens. The graph below shows the global ranking of the Dominican Republic in terms or protecting its investors, which is a great improvement from other areas already mentioned. Although this is a very important concern for investors, it still addresses a post-investment situation. What this mean is that it does not really provide an immediate impact in attracting a foreign investment if the other factors are encouraging, but it does boost investors confidence in the country they plan to invest as well as adding to a better investment climate. (Doing business, 2010) In an interview to CEI-RD Minister Eddy Martinez in the renowned Dominican daily show Hoy Mismo, transmitted by channel 9, he talks about the investment climate in the Dominican Republic and mentions key factors that make the country a great place to invest-compared to other countries in the region. He talks about establishing incentive mechanisms in order to attract those capitals which appraise the value of the investment not only for the amount, but for the impact these investments will have in terms of technology transfer, creation of employment, type of employment, quality of products produced in the country and if they will carry out Research Development activities. Although this mechanism is something the country whishes to implement, it is still not fully incorporated, thus leaving room for error. The institution is still trying to educate and integrate the contact center community so they can share these incentives and goals with other investors who want to do future busine ss based on the country incentive structure. To disseminate this information the CEI-RD has done seminars concerning these incentives, and is moving forward to the implementation of those incentive policies. During the interview CEI-RD Minister mentioned that many investments come through different ministries, therefore many investors are not sure who and how their investment are handle. This reflects a clear disorganization in the governmental mechanisms, which translates into a weakness. Minister Martinez suggests the government creates an integrated mechanism of investment. What this means is that no matter the origin of the investment or ministry, it will end up in a single place. This will allow proper follow up of the investment, and in case a project gets stuck, the institution can determine where being detained due to bureaucracy or lack of project handling. Based on that integrated mechanism the country can increase its FDI inflows by having all projects in a single place, thus providing one more reason to invest in th e Dominican Republic. Promotion agency (CEI-RD) and incentives offered The Dominican Republics government has implemented a liberal framework for attracting FDI. It makes no distinction between foreign and local companies in terms of ownership restrictions and ability to qualify for investment incentives. Foreign investment is permitted in all sectors except those related to public health and the environment (such as storage and disposal of hazardous or radioactive waste), as well as national security. The Dominican Republic government also offers full exemption from all taxes, duties, charges, and fees that affect production and export activities in free trade zones, which it introduced in 1969. The free trade zones aim to attract high-tech manufacturing (including electronics and electrical components) as well as more traditional manufacturing-such as of automotive parts, medical devices and pharmaceuticals, plastics, metals, injection molding, textiles and footwear, jewelry, tobacco and of course contact centers. The incentives offered last up to 25 years for zones on the Haitian border, and up to 15 years for all other zones. In May 2006 there were 59 industrial parks and free trade zones in the Dominican Republic, hosting more than 600 companies, providing over 190,000 direct jobs, and occupying 2.1 million square meters. Although there are no performance requirements for foreign investors, few sector-specific incentives are offered to them. (World Bank Group, MIGA, Snapshot of the Caribbean, 2007) All of the benefits mentioned above and the continuing inflow of investment is happening thanks to efforts from the government and the institution in charge of carrying out FDI promotion. The institution carrying out this very important task is the Dominican Republics Export and Investment Center (CEI-RD), which is headed by Eddy Martinez, as the Minister and Executive Director of this government institution that promotes national strategic export and foreign investment opportunities and works hands-on with local and foreign enterprise to facilitate business activity. Because the institution knows the importance of investment they are aggressively targeting investors through offices in New York, Miami and California, and because of the nations entry into the Central American Free Trade Agreement, or CAFTA-DR. The Centro de Exportacià ³n e Inversià ³n de la Repà ºblica Dominicana (CEI-RD) as it is called in Spanish, is the countrys one-stop investment promotion intermediary. It has three main departments: Export Promotion, Investment Promotion, and a Training Center. The CEI-RD aims to strategically promote the valuable conditions that the Dominican Republic offers as an investment destination and foreign trade developer, by pursuing priority areas as defined by the Government, to increase employment, technological transfer and the social welfare of the Nation. The agency organizes and participates in trade missions both overseas and locally as well as provides tools to assist investors, such as an export directory. (World Bank Group, MIGA, Snapshot of the Caribbean) The CEI-RD is the official organization responsible for the promotion of international trade and Foreign Direct Investment (FDI). It was created as a product of the fusion of the Center for the Promotion of Exports of the Dominican Republic (CEDOPEX) and the Office for the Promotion of Investments of the Dominican Republic (OPI-RD), according to Law 98-03, effective on June 17, 2003. The CEI-RD is comprised of two main operational areas, export promotion and foreign investment promotion and its functions include many promotions, but some of the more relevant to this study are promotion of the countrys advantages to attract foreign investment, coordination with other government institution related to foreign trade in the interest of achieving an expedient and efficient flow of exports and investments in the country, promotion and development of FDI and business from the CEI-RD offices abroad, currently in Miami, New York and Chicago, participating actively in trade negotiations and ad ministration of resulting agreements, contribute to the improvement of the legal framework and its proper application. Also throughout the Foreign Service network, new offices will be opening soon in Puerto Rico and Silicon Valley The institution services are available for local and foreign companies to facilitate the exports and investments of the country which is an advantage to any investor. Among the services the CEI-RD offers, and which are relevant to this study, they have specialized consulting, technical assistance in meeting the regulations and norms required for the export of goods and services, which is helpful to new investor who are not familiar with the legal framework. They also have validation of certificates of origin, technical assistance relating to trade agreements, recommendations for improving the production process and benefiting from tariff preferences. The new investor can also benefit from visits on behalf of the CEI-RD specialized staff to their companies in order to evaluate the production process under trade agreements and preferential programs. One very important service the CEI-RD offers is that they ensure the correct application of norms relating to export and investment proced ures by administrating Law 84-99 on the reactivation and promotion of exports and Law 16-95 on foreign investment. Other services, although not specific to the industry, offered by the CEI-RD and from which investors could benefit are product profiles and market analysis, business intelligence, legal and economic information, registration of exports and foreign direct investment, facilitation of a network of representatives abroad and foreign trade documentation center. As any other promotion agency the CEI-RD has several promotion programs that make the Dominican Republic attractive for FDI. These programs include National and International Trade shows and expos where it presents companies, local and foreign, can showcase their products. The CEI-RD also coordinates trade missions in order to ensure a successful transaction as well as training programs relating to international trade. In these specific programs-relating to international trade-local companies can get educated and learn how to export their products and foreign investors can learn about the local market and opportunities. Another very important promotion program-and the one of the most significant-is the coordination of business meetings to present what the countrys has to offer, as well as to contact potential investors and exporters. With this two-way program, foreign and local investors will have a mutual gain by making the necessary contacts to get their business started, thus gene rating future FDI. (CEI-RD, 2010) Contact center FDI in Dominican Republic Overview of contact center FDI As it was previously mentioned, this study looks at the pros and cons of contact center FDI from various angles, one been from the host country point of view and the other the investors point of view. From the host country the study takes into consideration a report created by the economist Jonathan Aragonez, from the Center of Export and Investment of the Dominican Republic (CEI-RD), as well as other documentation of contact centers from the CEI-RD. These documents will provide the necessary data to point out the countrys benefit and disadvantages. Do to the lack of published papers that truly criticize or analyze the contact center industry, this study will support many of its facts on three things. These three key contributions are empirical knowledge of the writer, interview conducted to the economist previously mentioned, and interview with a contact center owner who is doing FDI in the Dominican Republic. The Dominican Republic has had strong export services for many years, and as a result there are 40 to 50 call centers registered with the Dominican Call Center Association. Investors currently operating in the country cited skilled workers, most of whom are bilingual, as their main reason for choosing it as their investment location (Dominican Republic Contact Center Association, 2010). The country has a large, well-trained labor force and although Spanish is the countrys official language, investors can find workers that also speak English. Apart from the stable, fast growing economy, attractive cost structure and near shore location, it can be said that people are the primary competitive advantage in the Dominican Republic. Investors in the Dominican Republic always emphasize the Dominicans high learning ability and proficiency in English. (Eddy Martinez, 2006). The countrys large size means that land is available for green field investment-if one was to be done-although most investors opt to rent or lease a work space for their operations. The country also offers great access to all markets being that is one of the six countries in the world that has a free trade agreement with the U.S. and Europe. Some of the other countries that have such a privilege are Israel, Jordan, Chile and Mexico (Office of the United States Trade Representative, 2010). Other favorable investment factors included the countrys well-developed, affordable telecommunications infrastructure which is the only one in the Caribbean with access four international cables through the Americas Region Caribbean Optical-Ring System Cable (ARCOS-1). What this means is that the Dominican Republic connection to the U.S. or any other country is redundant, thus ensuring contact center businesses to always be connected. Contact centers in the Dominican Republic generate 25,000 direct jobs, from the 57 companies registered and operating in the country. In the next two years those centers are expected to create 30,000 additional jobs, which when added to the indirect ones are more than 150,000 in. This information comes from the CEI-RD, which also says almost all of the data and information technology centers have been installed in the country in the past three years, meaning this great progress has been done in record time. This year alone-and not including centers outside of free trade zones-Contact Centers constituted 15% of approved companies in the free trade zones of the Dominican Republic, being matched only by textile companies (Approved companies by the Free Trade Zone and Export Committee, 2010). In previous reports the committee also shows how these companies add to the countrys GDP year after year, reflecting in a steady and secure growth of this industry. Companies approved in 2010 Free Trade Zone and Export Committee, 2010) The contact center industry in the Dominican Republic is one that has maintained a steady and significant growth. By doing so it has provided a great deal of jobs in the Dominican labor market, citing that for the year 2009 the industry counted with 22,000 jobs. Taking into consideration that the growth of this industry will be of about 27% and 36% annual growth during the next five years, it means that by 2014 the number of jobs can grow to an astonishing 150,000 jobs if the average annual growth rate is of only 27%. If the industry grows at an average of 37% annually, we are talking about having 250,000 jobs, which is almost double of the previous projection. (Jonathan Aragonez, 2010) Strengths, weaknesses and investors perspective of contact centers FDI Deciding whether to invest or not in a country is a decision which is influenced by what the country has offered and showed you, and what other investors say their experience has been. Investors will most likely take other investors input as the reality of how business works in a country. With that being said, one of the biggest disadvantages mentioned by investors is that the Dominican Republic doesnt count with a large enough English speaking community to hold growing operations. This statement comes from the interview with Mr. Blake Janover, contact center owner who has experienced the lack of English speaking representatives. He mentions that the Dominican Republic is a great place to invest, but not the best in the world due to some more important flaws than not enough English personnel. The main weaknesses mentioned by this contact center owner are banking, finance, and overall infrastructure, which is why he runs everything through an external company abroad instead of legally constituting a Dominican company. He also says that it takes time to get things rolling in the country, but he likes the Dominican Republic because it offers a huge tax benefit, as the US offers almost none (Blake Janover, 2010). Further details given by Mr. Janover can be seen in the Appendix. As for the interview with Mr. Jonathan Aragonez, an economist for the Center of Export and Investment of the Dominican Republic, he explains that the Dominican Republic offers contact center investors a great deal of benefits. In his interview he mentions some of the exclusivity of Dominican Republic, its treaty and skilled labor force. The most significant interpretation I could gather form the interview was that an investor is usually winning when investing in a contact center. This is an industry that is expected to grow at a steady 27 to 36 percent in average in the next 5 years, so the investor is bound to make a great profit in the business.(Jonathan Aragonez, 2010) Both the investor and the host country agree in one thing, the Dominican Republic offers advantages that many other countries dont have, and that is why the country is becoming a leader in the industry. These advantages are not only extended to the country and the investor, but are also transferable to the workforce. The average starting salaries in the contact centers are between RD$18,000 to RD$22,000 pesos. This amount is three times more than the average salary of RD$6,000 pesos-established by law-for people working office jobs such as law clerk, assistant or financial analyst (Ministry of Labor of the Dominican Republic, 2007). The contact center salaries are only matched by those of Doctors or Engineers in production plants, which is very demanding professional field in comparison with being a contact center agent. Although this is good for an individual whose only skill may be to speak English, it affects other labor markets due to the fact that the salary is so much

Monsignor Quixote: Unleashed

Graham Greene is known in recent years as the â€Å"old master† as a writer. He had already accumulated tremendous achievements which led him in having an expertise in writing. Because of the freedom that he exudes in writing, his subject matter, intensity and tone of writing style is quite extended significantly. Greene’s works were usually focused in pity, doom and the impenetrability of God’s will. In his work entitled â€Å"The Human Factor† (1978), he talks about the protagonist victim trapped in a twist of betrayal and spying. In his another book entitled â€Å"Dr. Fisher of Geneva, or The Bomb party† (1980), tells about he chilling story of a wealthy man who plays God sadistically with his poor assistants who tried to entertain him and humiliate and hurt them in return. However, another masterpiece from the old master, the gentlest among Greene’s works, has introduced a worthwhile read entitled â€Å"Monsignor Quixote†. â€Å"Monsignor Quixote† is an offshoot of Cervantes’s work (Greene, 1990). In this version, the readers are opened to the idea of Catholic faith and Communist sympathy conflict. The setting is in Spain in the late 1960’s were the end of the Second Vatican Council and of the end of the Latin Mass happened. This novel tells the story of a humble and kind priest who believes that himself that he was a descendant of Don Quixote, the famous Knight of the Sorrowful Countenance. After such belligerent, he was promoted as Monsignor and later forces Father Quixote from his parish in El Toboso wherein such promotion had been made by a powerful Italian bishop whom Quixote helped in fixing his car and providing him with a sumptuous lunch. Outrage of a local bishop in El Toboso arises and requested him of leave of absence to go to Madrid and buy purple socks and bib as the new Monsignor. Father Quixote’s cavalry will soon emerge. This book teaches valuable reflections about authority, hope and despair, love and selfishness (Greene, 1990). However, the rejection of dogmatic authority in the church and state is the focused of the book. Greene emphasizes the value of the spirit and not in the letter (system). Greene was said to be intertwined between two systems which requires utmost obedience and submission to the adherents. He delves onto the human weaknesses rather than uprightness. Doubt is seen as a paradox, which it is in human nature to doubt for humans are intrinsic and can control their instincts. Decisions made from incomplete information arises the matter of doubt. Greene’s inclusion of the Catholic faith as a background is hope in the most extreme situations. Monsignor Quixote and Sancho Plaza had congruent hopes on such event, thus, Monsignor hopes for Sancho, being a Communist to convert into being a Catholic while Sancho hopes for Monsignor to be a Marxist. And these hopes did not end triumphantly which lead to despair. In the book, their hopes arise through the books they read: Sancho’s preference in Marx’s works and Monsignor’s in religious books. Sancho is a materialist while Monsignor is selfless and do care for the world’s salvation. Considerably, the greatest virtue amongst all is Love. Greene knew that there is hope because there is love in it. In this regard, Sancho was faced in a conflict if he will rescue his friend from El Toboso or seek refuge form his fellow Communists. But because of love and loyalty, Sancho did not cross the frontier and instead went to El Toboso to save his friend. His loyalty and love for his friend is more important than his safety. In Greene’s works, usually there are borders which are not meant to be crossed. Love is eternal. Sancho’s reflections on the nature of love, that hate is finished through revenge, still love persists after death. Monsignor realized that Sancho would not abandon him, because he saw in him love and unselfishness (Greene, 1990) . â€Å"Monsignor Quixote† is an inspirational read, a book which greatly exemplified the humble characteristics of its author, Graham Greene. References: Greene, G. (1990). Monsignor Quixote (Reissue ed.): Pocket. Towers, Robert.   (1982, September 19).   An Amiable Graham Greene.   The New York Times on the Web.   Retrieved July 13 2007, from http://www.nytimes.com/books/00/02/20/specials/greene-quixote.html      

Popular Culture Media and Society: Culture Jamming Essay

Introduction â€Å"Culture jamming† is a strategy often utilized by the anti-globalization movement in the creation and reappropriation of memes, or memorable and persistent ideas. Traditional culture jamming strategies have included a variety of actions, ranging from billboard liberation, wherein artists reclaim billboards as public space, to media activism, wherein activists attempt to garner news coverage through some form of direct action in order to have their message heard. Additional tactics such as spoof advertisements geared to mock a particular brand or industry and branding removal, wherein activists remove all marks of branding from products, have also been deployed. Culture jammers attempt to expose the norms of western industrial society and call them into question but often their attempts are not popular enough to reach a large audience and encourage a large scale questioning of the status quo. The goals of the culture jamming community are to introduce new norms into societies that effectively turn back the meanings of current social norms. Despite the best intentions of those working within the movement, traditional culture jamming rarely makes it into popular culture and is thus often thwarted in the attempt to successfully challenge the norms perpetuated by globalization. The purpose of this study is to examine the ways in which culture jamming that permeates the media and crosses the line from subculture to pop culture can challenge hegemonic structures of power while simultaneously reinforcing those challenges by increasing their popularity. Through the study of popular culture artifacts from a variety of genres I hope to determine whether or not popular culture may serve as an effective strategic forum for the introduction of culture jamming artifacts, as opposed to the traditional and more subversive tactics being deployed by culture jammers. Towards an Understanding of Culture Jamming Culture jamming and studies of culture jamming have typically focused on the ability of an activist group or individual to effectively redeploy the signs and symbols of a dominant system in a manner that disrupts their meaning and critiques the overall system from which the symbols originate. In his recently republished 1993 pamphlet on culture jamming, Mark Dery (2001) states that culture jammers: †¦ introduce noise into the signal as it passes from transmitter to receiver, encouraging idiosyncratic, unintended interpretations. Intruding on the intruders, they invest ads, newscasts, and other media artifacts with subversive meanings; simultaneously, they decrypt them, rendering their seductions impotent (para. 36). From Dery’s perspective culture jamming can be seen as actions or artifacts that are politically or subversively charged. Jamming can range from parody to media gags, but always aims to make a statement against a particular target of power or popularity within a culture. Similarly, semiotic theorist Umberto Eco (1984) advocates that one form of media can be utilized to spread criticism pointed at another type of medium in order to â€Å"restore a critical dimension to passive reception† (p. 138). Eco refers to acts and artifacts that have this potential to be part of â€Å"semiotic guerilla warfare.† The signs and symbols of a culture are open to interpretation. While within a culture there may be a common meaning for these signs and symbols within a culture that meaning is not set in stone. A sign or a symbol may be used to contradict its own popular meaning. Thus we can see how semiotics plays an important role in developing tools for the toolbox of the culture jammer. The lack of fixed meaning in the signs we see on a daily basis allow culture jammers to turn back symbols as semiotic weapons against their creators. Kalle Lasn (2000) defines culture jamming as the demarketing of marketing. As the founder of Adbusters magazine, Lasn has pushed for the reclaiming and redeployment of particular brand names, icons, and advertising campaigns through a process known to culture jammers as subvertising. Lasn explains in his book, Culture Jam that culture jammers utilize Debord’s notion of detournement, or turning back specific aspects of a spectacle against itself. In the case of culture jamming, brands and their advertising are turned back upon themselves to reveal questions and inconsistencies about a particular advertiser’s ideals as seen through its campaigns. Lasn (2000) also claims that successful culture jamming can function as a pincer movement utilizing both high profile media campaigns that challenge industry in combination with grass roots campaigns for local action. The challenge to an industry or target combined with encouragement of behavioral change has the potential to change the perception of the target on a broad scale while also reducing support for the target. A well-organized pincer will get millions of people thinking about their lives—about eating better, driving less, jumping off the fashion treadmill, downshifting. Eventually the national mood will evolve (pg136). Lasn’s pincer attack attempts to make that which is currently chic or popular in a society unpopular on a massive scale. As fewer people within the society buy into the imagery of a particular industry or brand the industry loses financial support and must either change its practices or face rejection by the community at large. Lasn has spear headed grass roots campaigns such as â€Å"Buy Nothing Day;† an annual campaign urging consumers to avoid buying anything on the last Friday of November (a date commonly known among retailers as â€Å"Black Friday† as it often marks record profits for retailers as a result of holiday shopping). Lasn combines this grassroots campaign with thirty-second television ad spots on CNN each year as well as more locally oriented promotion such as fliers that activists can print off the Internet and disseminate at will. Christine Harold (2004) claims that the culture jammer â€Å"seeks to undermine the marketing rhetoric of multinational corporations, specifically through such practices as media hoaxing, corporate sabotage, billboard ‘liberation,’ and trademark infringement† (p. 190). These strategies are used by jammers in an effort to â€Å"glut the system† by supplying audiences with contradictory messages. Their goal is to generate a qualitative change in the minds of the audience about the subject matter targeted. Harold (2004) critiques traditional culture jamming as a rhetorical strategy because it often relies upon revelation of hidden truths and rejection of the systems it attempts to play upon. In her analysis, Harold specifically indicts Lasn’s publications and others who deploy parody or direct negation of corporate logos in their attempts to cause questioning of norms. Reliance on parody as a mechanism for revealing truth requires audiences to deconstruct the common meaning of a sign with little to work with but the sign itself. Additionally, parody causes a commitment to rhetorical binaries that articulate rejection of the targeted idea with little room for the idea to be reframed. Dominant powers within a criticized system can easily utilize these tactics for their own means. The reliance on a recognized symbol helps to maintain its cultural prominence. The rhetorical binary used by culture jammers allows the targeted entity to easily deflect criticism and quash the questioning of norms. While Adbusters and activists of similar ideology may put forth a message of rebellion and rejection corporate targets can use these concepts of rebellion and rejection to sell their products. Recent advertisements for Sprite illustrate this concept well as they focus on rejecting celebrity culture and embracing one’s own character by purchasing the product. Harold (2004) advocates a more appropriative approach to culture jamming seeks to be appropriated by commercial media in order to redirect the focus of dominant media systems. Much of Harold’s argument focuses on the value of media activism via prank, pointing to groups such as the Barbie Liberation Organization (BLO) and Biotic Baking Brigade (BBB) as groups that have successfully received positive media coverage through their pranks. Clearly, we can see that culture jamming may be an effective strategy for putting dominant hierarchies, organizations, and systems into question. However, Reinsborough and Harold (2004) both raise interesting points in terms of the effectiveness of the strategy, with Harold illustrating the problems of strategies that are not appropriative and Reinsborough recognizing that subversive media strategies (such as those Harold advocates) are often limited in scope. When considering Reinsborough’s (2003) usage of the word meme the concept that he is referring to is not necessarily identical to that articulated by memetic theorists. Susan Blackmore (1999) has broadly defined memes as â€Å"everything that you have learned by imitation† (pg6). The definition of imitation from a memetic perspective should not be confused with â€Å"copycat† acts. Instead, imitation should be seen as memes passing from one mind to another. In his article on culture jammers and the World Wide Web, Stephen Downes (1999) defines the meme as a â€Å"contagious idea that spreads from one mind to another† (para. 2). He articulates that memes are a way to represent the ideas contained within advertising and explains that in order for ideas to take hold in one’s mind they must appeal to the audience in a way that helps them to be remembered. Similarly, Kalle Lasn (2000) speaks of â€Å"infotoxins,† or â€Å"infoviruses,† that permeate dominant media forums. Lasn claims that disinformation is propagated through media and public relations spin resulting in the establishment of incorrect beliefs about the world. In one example, Lasn refers to the media’s portrayal of anti-automobile activists as limiters of personal freedom as a contributing factor in the failure of activists to popularize their message. The movement becomes unable to stimulate a mindset shift towards a culture that is less dependent upon petroleum products. As the activists are seen as â€Å"anti-freedom† harms they are attempting to solve such as global warming are not taken seriously. Additionally, he argues that while the effects of global warming can be seen on both local and global scales, disinformation that has been spread through dominant media forums has led to a sense of complacency about the issue in the minds of Americans. Lasn believes these â€Å"infoviruses† are untruthful memes that must be challenged through the production of counteractive memes that outperform those that movements wish to question. â€Å"We build our own meme factory, put out a better product and beat the corporations at their own game. We identify the macromemes and the metamemes—the core ideas without which a sustainable future is unthinkable—and deploy them† (pg124). Both Reinsborough (2003) and Lasn (2000) seem to be identifying that memes are memorable and popular concepts that have the ability to be spread in order to transform cultural norms. Blackmore (1999) and Downes (1999) clearly illustrate that memes are made up of ideas that are picked up from popular culture and imitated. The process of culture jamming can be seen as one generating memes that hold a meaning that challenges existing norms. To return to the analogy of the gene, culture jamming can be seen as a form of â€Å"memetic engineering† with a goal of producing a dominant and meaningful meme that causes new â€Å"traits,† or meanings, to become exemplified within a culture. Understanding the Transformative Potential of Popular Culture Communication and mass media scholars have examined the extent to which popular culture may contribute to the formation of cultural norms and social structure. Guy Debord (1977) implicates popular culture in large portion of what he labels â€Å"the society of the spectacle.† Debord’s (1977) view of the world in the era of global capitalism is one in which popular culture serves to provide images or representations of the world that do not represent its historical state, but instead inspire audiences to digest the world around them as commodities as a replacement for the real. Artifacts such as films are not representative of art, but are tools to inspire audiences to strive towards the acquisition of consumer goods and respect the hierarchal structure. Debord (1977) points out that the society of the spectacle is replete with images and representations that drive audiences to become consumers. This consumption leads audiences to respect the structural hierarchies that repress them. In essence, the complacency most audiences have towards the consumption of images and subsequently the world around them drives this structuralism. While Debord (1977) implicates popular culture and the spectacle as paramount in the construction of a social order of consumption, he does offer some hope for those striving to work against the consumptive nature of capitalist hierarchies in the form of â€Å"detournement† By creating contradictions, negations, or parodies of a given work, â€Å"corrections† can be made to the meaning of the work in order to create a meaning that is more representative of the â€Å"true† states of societies. Marshall McLuhan (1964) argued in his groundbreaking work, Understanding Media, that popular culture experienced a drastic shift with the advent of technologies such as film, radio and television. Whereas popular culture had been print dominated in years previous, the shift to new types of media changed the way media was created and the effect was dramatic. McLuhan argues that the introduction of printed texts into cultures undermined the tribal aspect of communities and collective ideas that had once dominated small communities. Cultures became more individualistic and increased the power of logic and rationale of the written word as opposed to commonality among group members. The advent of new media brought about a more collective consciousness as individuals were drawn to its aesthetics. New tribal communities formed that were rooted in both local and global norms. Audience exposure to new and different sights and sounds increased the shared understanding across cultures. McLuhan also illustrates that the spread of media united people as a result of the media’s importance by comparing media to staples of a society’s economy. Television, for example, can be used to construct the cultural norms of a society. Those people who are active audience members of a particular television show or genre are likely to have shared beliefs, forming a tribal community of their own. McLuhan argued that the community building potential of television and the syndication of programming created the potential for these cultures to spread globally. While McLuhan’s work was performed in the 1960s the subsequent popularity of the Internet seems to confirm at the very least that communities of people who make up television audiences extend worldwide as fan sites, bulletin boards, and blogs dedicated to television programs cross multiple borders and cultures. Television, much of McLuhan’s media, is a part of popular culture. Research has also been conducted suggesting that popular culture has the ability to reaffirm existing cultural norms or as a tool in transforming current norms. Lee Artz (2004) has examined the cultural norms that are present in the bulk of the animation produced by the Walt Disney Co. Artz argues that the autocratic production process embraced by Disney executives results in four dominant themes present in nearly every animated film the company has released. These themes include the naturalization of hierarchy, the defense of elite coercion and power, promotion of hyper-individualism and the denigration of democratic solidarity (p. 126). The prevalence of these themes can be identified through study of the narratives contained within Disney films as well as through the stylistic elements of the animation itself. The ease with which animated film can be translated and transported into the languages and cultures of peoples worldwide offers a large audience to Disney in marketing its films and film-related products. The portability of Disney products from one culture to another is a problematic notion for Artz (2004), as he explains the social stratification present and reaffirmed in the films produced is largely representative of the global capital system that allows Disney to thrive as a media giant. Artz suggests that effective resistance against these thematic representations cannot be implemented by rogue Disney artists injecting subversive messages into films. Instead, â€Å"cooperative creations and narratives† and the appropriation and subsequent use of animation technology by artists, writers, and producers committed to the promotion of democracy would be more effective. This conclusion appears to be impirically proven. While not discussed in Artz’s work, subversive strategies have been employed by disgruntled artists involved in the production of Disney films (such as the post-production inclusion of an image of a topless woman in the background artwork of The Rescuers). However these acts did not generate substantial negative publicity for the company. Peter Simonson (2001) has examined the successes the animal-rights group People for the Ethical Treatment of Animals (PETA) have experienced as a result of using communication strategies rooted in popular culture. PETA seeks to change predominant cultural norms in the area of animal welfare. Their traditional communicative strategies have relied on the generating news controversy and gaining news coverage. Simonson proposes that social movements and organizations seeking to change popular morals or norms rely upon social noise—a multifaceted concept that can be defined as messages that are compelling or loud enough to be heard amidst the signals of mass-media. Noise disrupts commonly held social meanings and is often discordant or disagreeable to a subset of the audience. Scholars have also focused on what makes a particular artifact or action popular. John Fiske (1989) studied culture as popular culture in terms of texts. By making textual analysis of artifacts in popular culture, Fiske began to make claims about the structure of popular messages. Fiske introduced the concept of the producerly text as a primary characteristic of popular culture. The producerly text is conceptually anchored in the distinctions made by Barthes (1977) between the writerly and readerly texts. Barthes contends that readerly texts are those that we are able to read passively. Interactions between the audience and these texts are receptive; there is no need to question or interpret the text in a different way than it is written. Writerly texts can be seen as those texts that require the reader to constantly evaluate and rewrite the meaning of the text, and writerly texts usually require some specialized knowledge or a toolset to decode (Fiske 1989). Many scholars and activists concur that there is a risk when entering into pop culture that the rhetoric used by those critiquing dominant ideologies and structures may be co-opted. The potential exists for the message to be appropriated by those in power for their own means; the message becomes incorporated by those in power in order to embolden their own claims or profits. The same process that allows activists to change the meaning of texts is available to everyone. Popular culture has the potential to create and transform both societal structure and norms. Additionally, communities of common exposure and belief can be developed using popular culture as a medium. There may be a risk of that subversive ideas can be incorporated by dominant systems of power, but this incorporation does not necessarily limit the transformative potential popular culture holds. When considering the culture jammer’s intent of questioning and changing norms popular culture becomes an interesting point of cultural injection. Conclusion In essence, the popular culture jam seeks to be appropriated into pop culture- it becomes pop culture and helps to redefine that which is popular. The result is a sort of â€Å"subpropriation,† where in the author seeks to have his or her work popularized in order to simultaneously popularize a previously subversive concept or idea. However, this appeal to the popular does not necessarily stop culture jamming from occurring. Entry into popular culture does not dictate that the message will be recuperated by industry. Rather, popular culture jamming takes place at a different point than other types of culture jamming. The â€Å"jam† in popular culture jamming occurs at the point that the artifact, action, or behavior becomes popular. The most obvious effect of moving towards a jamming of popular culture is the increased access to larger audiences. Popular culture does not request to be covered in the same way that news-oriented communication or advertisements often do. Instead, popular culture places demands upon media outlets to not only be covered but also be distributed to the masses. This sense of demand results because the popular is attractive to the media as a potential form of profit. Again, we see Fiske’s (1989) theories on production and incorporation at work. A popular culture jam spreads as a result of its popularity. Often this popularity is created by the irresistible profits that may be yielded from an artifact’s incorporation into the popular. In essence, one aspect of the structures that propagate and allow for globalization (and the subsequent problems that those in anti-globalization movements perceive to be resultant from it) to persist and thrive are turned back to criticize either itself or another portion of the hierarchal structure. Popular culture, despite the criticisms it often faces for lack of sophistication or intelligence, is an important element of our lives. Popular culture may also serve as a tool for those struggling against globalization, rampant consumerism, and capitalist exploitation. Each time we turn on a television or listen to the radio or log on to the Internet we are exposing ourselves to popular culture. Popular culture should not be perceived as an intellectual wasteland. While much of that which makes up popular culture may be perceived as being detrimental to society by any number of people, activists and media scholars cannot ignore or reject it. Popular culture needs to be embraced and transformed through the use of producerly texts in order to improve and transform the genre into another persuasive conduit for activists. Popular culture is not going away. In the age of new media popular culture is becoming even more pervasive in our lives as media formats are combined. If embraced as a rhetorical forum by culture jammers, popular culture can be transformed into a more revelatory and revolutionary space for communicating ideals that activists wish to make popular. References Artz, L., (2004), The Righteousness of Self-centered Royals: The World According to Disney Animation, Critical Arts Journal, Vol. 18, No. 1, 116-146. Blackmore, S., (1999). The meme machine, 1st ed., Oxford University Press. Debord, G., (1977), The Society of the Spectacle. Available at http://library.nothingness.org/articles/SI/en/pub_contents. Dery, M., (2004, Oct 10), Culture jamming: hacking, slashing and sniping in the empire of signs. Available at: http://www.markdery.com/archives/2004/10/cultureJamming_l.html. Downes, S., (1999, Oct. 4), Hacking memes. First Monday, 4.10. Available at: http://firstmonday.org/issues/issue4_l 0/downes/index.html. Eco, U., (1984), Semiotics and the philosophy of language, 1st ed., Bloomington, USA: Indiana University Press. Fiske, J., (1989), Understanding popular culture. 1st ed. Boston, USA: Unwin Hyman. Harold, C. (2004). Pranking rhetoric: â€Å"culture jamming† as media activism. Critical Studies in Media Communication, Vol. 21, No. 3, 189-211. Lasn, K., (2000), Culture Jam: How to Reverse America’s Suicidal Consumer Binge—And Why We Must, 1st ed. New York, USA: HarperCollins Publishers. McLuhan, M., (1964), Understanding Media. London, England: Routledge Press. Reinsborough, P., (2003, Aug.), Decolonizing the revolutionary imagination, Journal of Aesthetics and Protest, No.1, Available at: http://www.journalofaestheticsandprotest.org/l/de_colonizing/index.html. Simonson, P., (2001), Social Noise and Segmented Rhythms: News, Entertainment, and Celebrity in the Crusade for Animal Rights, Communication Review, Vol. 4, No. , 399-420.

The Arrogance of Man in Stephen Crane’s Short Story, The...

The Arrogance of Man The Man vs Nature conflict is a common literary element used in adventure stories and stories of survival. It is when the main character(s) of a story are in conflict with an animal or a force of nature. In Stephen Crane’s short story, â€Å"The Open Boat,† the man vs nature conflict is present throughout the entire course of the story. The end of the story presented a controversial topic left open for discussion; who was the victor of the conflict, man or nature? A normal read though of the story would leave one with the impression that man was the winner of the conflict. However, a close analytical reading of the text would actually suggest that it was nature who was the true victor in the end. A close examination of certain aspects of the story such as the scenes with the seagull and shark, the violent seas throughout the entirety of the story, and the correspondent’s thoughts at end will reveal the true victor being nature rather than man . First, however, a short summary of the story itself is required for a full understanding of the analyses. Stephen Crane’s story â€Å"The Open Boat† starts off with four strangers stranded in the middle of the ocean after their ship unexpectedly sank. The four men, a correspondent, a cook, an oiler, and the ship’s captain, struggle hopelessly just to keep their bathtub sized dinghy afloat in the rough seas off the coast of Florida. The four men must bond and work together as any wrong move would result I their smallShow MoreRelatedA Comparison of Jack London and Stephen Crane.1481 Words   |  6 PagesComparison of Jack London and Stephen Crane. Jack London and Stephen Crane were both well-known literary naturalists who died at relatively early ages. Despite having lived such a short life, Jack London lived a full life. He has achieved wide popularity abroad, with his work being translated into more than fifty languages, as well as having written fifty literary works in eighteen years. His stories in the naturalistic mode still continue to influence writers today. Stephen Crane was also an accomplishedRead MoreA Comparative Analysis of the Writings of Jack London and Stephen Crane2444 Words   |  10 PagesLondon always held death at bay just by the slimmest of margins. His stories seemed to be about adventure and winning the struggle against the wilderness, but in the background the reaper was always present. Stephen Crane was another that battled death in his writing because he seemed to want to know how he would handle it. This paper compares the writings of Jack London and Stephen Crane as they explore the subject of m ortality. Short Biography It must first be noted that the two writers were veryRead More Analyses of Short Stories Essay examples4756 Words   |  20 PagesAnalyses of Short Stories Nathaniel Hawthorne, â€Å"Young Goodman Brown† Goodman Brown was not asleep in this short story. As I read, I believed that Goodman did indeed meet the devil in the forest. If he had indeed dreamt about the trip he was sent on and meeting the devil, I think his nervousness would have been described in more detail then it was. Concentrating more on the anxiety he was feeling would have led the reader to believe that the events were not real. I also saw this story as an