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“The German people want to be led � this is shown by our history � but our experience in the party has made us realise that a bit of a push from behind does no harm. Indeed we national socialists would not have been in power today had we not be willing and able to use our considerable force of persuasion, by word and by fist, in the streets throughout Germany during our national period of struggle. Its because part of our creed as national socialists demands that we mobilise the population towards and ideological goal that we are so eminently successful in this”.


Josef Goebbels 141


Good morning Students and Miss… I am here today to discuss the impact of Nazism on German social and cultural life. During the nazi’s time in power, they succeeded in coercing many to adopt certain ideologies in the future of A new beginning as many Germans believed. One of the first real identifications of the impact of nazism on German social and cultural life starts with the implementation of the emergency decree in February and the enabling act in March . With this newly found power the Nazi Regime began their process of “Coordination of all aspects of the German State” or commonly known as Gleichschaltung. Also these new powers, Hitler was able to exploit, indoctrinate, and underpin the ability to take control of the German State and its population. With Hitler’s chancellorship appointment in January one of his first crucial orders was the creation of the ministry of public enlightenment and propaganda in June . Hitler undoubtfully believed that strength lay in loyalty to the leader. All where to conform to nazi ideals. All forms of entertainment and culture where changed to traditional nazi ideology. A Reich chamber of culture was established in September Under Dr. Joseph Goebbels, and intellectual who masterminded public enlightenment. The purpose of this chamber was to spread nazi beliefs through literature, broadcasting, theatre, music, art and film. It addressed certain themes for example the need for racial purity, fear and hatred for the Jews and promotion of Hitler and the Fuhrermyth. This enormously impacted upon the lives of all Germans socially and culturally. With Hitler’s becoming Fuhrer of Germany in August 14 he transformed Germany into a totalitarian state. This is a form of government Subordinates all aspects of its citizens lives to the authority of the state, which a single leader with the utmost supremacy. In short, the state is the master and the individual the servant. This form of governing was totally different to the Republic days. Some Key features of a totalitarian state include a single mass party; a police based unit solely for maintaining total control and terror. The nazi’s controlled all means of mass media. Much of the press had to show pictures glorifying the regime. Education was another means of social control and pure indoctrination. Under the nazi regime education standards fell, Jews were no longer aloud to attend school and humiliation towards them was gone unpunished, school textbooks were rewritten to perpetuate nazi’s ideals. University professors were required to take an oath of allegiance to Hitler and were to wear swatiska’s. The use of the Hitler’s Elite bodyguard The SS or schuetzstaffeln was created in14 after the so-called “Bully Boys” SA were no longer useful to enforce Hitler’s rule. This impacted upon the German social life as it depicted a clear message of aboslute control that the nazi’s possessed in their limits.


With the enabling act, Hitler was able to make his own forms of legislation without appealing to the Reichstag. One of his most famous was the Nuremberg laws which was passed on the 10 of September 5. These series of laws that were passed stripped all Jews of their civil liberties and rights. These laws also forbade that Aryan Germans from marrying Jews and for ones that were already married were to have divorces. The purpose of these laws set the boundaries of what the Nazi party considered acceptable. These laws also to “assure the purity of German blood and German honor.”


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The 6 Olympic games had been handed over to Berlin before the nazi’s came into power. To Hitler it was the perfect opportunity and staging ground to impress the world of Nazi Germany. It too was also a propaganda exercise, a great scenario for Goebbells propaganda ministry. Deprivation of the Jews was reduced to a certain scale. Posters spreading anti-Semitism were removed. Everything was ensured so that the games were to be run efficiently. Racism was apparent, especially for many Negro’s such as the inferior Jesse Owens who Hitler refused to hand over his gold medals. This particular event impacted on Nazi social and cultural life as it reflected Germany’s ever-growing power.


The Hitler Youth of Germany was and logical expression that the future of nazi Germany was its children. Hitler made clear how he wanted the future of Germany to be “the weak must be chiseled away. I want young men and women who can suffer pain. A young German must be swift as a greyhound, as tough as leather, and as hard as Krupp’s Steel.” The Hitler youth organizations were seen as important to a child as school. They were established in the 10’s as one of the nazi’s policy of appealing to special interest groups. Through education Hitler sought to occupy the minds of the young in nazi Germany. In 6 Hitler youth membership stood at 4 million members. By 16 it became compulsory to join the Hitler youth. There were separate organizations for boys and girls. Boys were trained in military athleltics were they learned many skills such as marching, trench digging, map reading and pistol shooting. Girls were trained in first aid and in making beds. They were also required to run 60 m in 14secs and to throw a ball 1 metres. The Hitler youth was used also as propaganda and forced children to report any anti-nazi sediment within their families. The emphasis of the Hitler youth was more on discipline rather than leisure which angered many youths, especially the ones that didn’t want anything to do which Hitler. It was here which sparked several uprisings and resistance within the youth of Germany.


Resistance to the nazi’s began early and continued up until the fall of Berlin in 145 and changed dramticatlly as the nazi’s gained more control of all aspects of life from 1. Most of the resistance was led through leaflets, strikes, sabotage, candlestine organizations, newspapers, pamphlets, and on the streets. Many people from different type organizations resisted Nazism. Churches and Christian minorities associated with the church, political parties such as Rote Kapelle (red orchestra) used radio contacts with the Soviet Union, provided military information. Resistance even reached as deep into the Wermacht itself. The July bomb plot of 144 which had help from Nazi officers such as Claus Von Stauffenberg chief of the general staff of the reserve army. In this failed attempt on Hitler’s life 5000 conspirators (among them 000 officers) were killed.


Nazism impacted upon German social and cultural life immensely through indoctrination, exploitation and terror to instrument the nazi visionary for a new beginning in Germany. In all their extreme efforts in public persuasion succeeded to an extent, but not all wanted to conform to Hitler’s drastic measures.








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The rays which stream through the shutter will be no longer remembered when the shutter is wholly removed. No method nor discipline can supersede the necessity of being forever on the alert. What is a course of history or philosophy, or poetry, no matter how well selected, or the best society, or the most admirable routine of life, compared with the discipline of looking always at what is to be seen? Will you be a reader, a student merely, or a seer? Read your fate, see what is before you, and walk on into futurity.


I did not read books the first summer; I hoed beans. Nay, I often did better than this. There were times when I could not afford to sacrifice the bloom of the present moment to any work, whether of the head or hands. I love a broad margin to my life. Sometimes, in a summer morning, having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


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having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.


having taken my accustomed bath, I sat in my sunny doorway from sunrise till noon, rapt in a reverie, amidst the pines and hickories and sumacs, in undisturbed solitude and stillness, while the birds sing around or flitted noiseless through the house, until by the sun falling in at my west window, or the noise of some travelers wagon on the distant highway, I was reminded of the lapse of time.





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SCREEN AESTHETHICS


CAMERA CLASS


LECTURER JOHN WIGGINS


FILM NOIR


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By Les Snell


11/08/0


We have always had the desire to tell a story. Cave paintings depict warriors battling mighty beasts that roamed the Prairies of the America’s, the forests of Europe and the African continent where it is said the first man walked and hence populated and eventually conquered the Neanderthal. Here in Australia, Aboriginal paintings tell the story of a nomadic existence. These ancient works also tell us the ancient struggle between good and evil, gods and monsters. The question is, why do we feel the need to tell a tale? Is it because the desire for something more, other than the banality of the day to day grind of existing, fuels our imagination, not only to be something else, but also the need to pass it on. For a community to exist in harmony, social order has to be established. Yet, why is man fascinated with the darker forces of human consciousness. Is the unknown more seductive? Of course it is ! Hence the reason why no other genre or style has had as much impact in the history of cinema as Film Noir.


What is Film Noir? Firstly, the term ‘Noir’ is the French word for Black. Put the two together and you get Black Film. The average video punter is aware of these films conveying something somewhat ominous, foreboding and sinister. Film Noir, though it was coined by French critics, didn’t originate in France. Now, here it can get a bit muddled because although Film Noir is distinctly American as a Big Mac or a Harley Davidson, it owes a lot to the German Expressionists directors such as F.W. Murnau, G.W. Pabst and an Austrian cinematographer called Karl Freund during the 0’s. During the late 0’s German and Austrian stars such as Peter Lorre and Marlene Dietrich migrated to the States and starred in many Film Noir movies. Billy Wilder, Otto Preminger, and Fritz Lang all of whom were Austrians influenced the film makers of that era.


However, you cannot take anything away from the Yanks, they got through Prohibition, the Depression, they tamed the Wild Frontier and helped the allied forces defeat the Germans in the Second World War. Those troubled times shaped the American psyche. Their society was now taking a deep look into its core and realism became the theme for a new breed of writers (for without a story there is no film). Out of the ashes came the mobster genre, fast cars, willing gals and flying bullets capturing and fascinating the cinema going public. The film makers provided our forefathers a visual journey into the realm of the outsider. The pessimism of the time created the anti-hero, immortalising actors like James Cagney and Edward G Robinson as the quintessential gangsters. Those films were the entr�e for what was to come in the next two decades.


In Film Noir, we are drawn into the murky and deviant world of the outsider. A world that skirts around the fringes of structured society. The events often occur in the night, set in a seedy environment, a setting designed by the film makers to emphasise the central characters state of mind, ‘the darkness’.


Roger Westcombe said “the definitive Film Noir characteristic is fatalism”. For example in the film ‘Double Indemnity’, Barbara Stanwick seduced an average bloke played by Fred MacMurray (who was wanting more in life) to kill her husband for the insurance money. Due to the treacherous intent of both characters, their plot was doomed to fail because of the mistrust each had for the other.


The negative traits possessed of this genre show them to be loners, paranoid, corruptible, cynical, addictive to all measures of substance and physical abuse, sexual or the other. They are flawed and this is why we can relate to them, because they are mirroring our very own reality. The positive attributes they posses are, tough and fast thinking. They mind their own business unless provoked and are incredibly sexy. Attributes that not all of us in the real world possess, but sometimes, would like to.


I’ve stated that man has a need to tell a story. An indepth study of this was conducted by Abraham Maslow in his study of primates. He concluded that there is a hierarchy of need. Once he has attained the four preceding hierarchy of needs to exist comfortably in the world. He desires to be recognised for his achievements. He wants to be immortalised.


I’ve touched on the influence by the German and Austrian film makers in the way they tell a story and the volatile and somewhat unstable period in American history that fuelled an era of writers depicting a society within a society coexisting, a parallel universe. The theme to succeed, at any price, by the leading characters and villains also play a major role in the story of this genre. I was once told that when ever you come across a fork in the road you don’t necessarily have to take the easier path to get to where you want. Our characters always decide that the easier path is the road to financial freedom. I’m sure this anecdote has a lot to do with the subject matter of the dark film. However, what does constitute a true film noir and when did it truly begin?


140 to 15 has been universally agreed upon as the ‘Golden Age’ of film noir. Man’s desire for good or evil, his achievements etc have been explored in many genres, the western, horror and comedy. So why are they not in the film noir category? A lot of the films were shot in black and white and the theme that the story revolves around is taking the easy way out. This is where you can get confused, in order to classify this thing you have to decide whether or not film noir is a genre, a style or for that matter ‘a lubricant’. Film historians and critics have discussed, argued and debated on this issue.


My research on film noir can be defined in three categories. Listed in the above paragraph the first criteria (1) a genre similar to westerns, comedies or horror () a period tied to that era of the 40’s and late 50’s and () a cinematic style with its own unique look. It would be unfair not to mention that there are also purists out there that believe film noir cannot be in colour nor be a genre. Then, that would exclude my personal opinion, that the best film ever made other than Casablanca was Blade Runner. This brilliant film would fall short of the mark because it does not keep with the tradition of containing dark, shadowy images shot in black and white or scenes set in seedy run down city places of the 40’s and 50’s. Although the film does portray leading characters that are akin to Caligula or Nero with a touch of Caesar. They have seen it all and have done everything. But still fail to succeed. Another example is of two beautiful women. One, you would introduce to your mother (Sean


Young’s character) and the other, you wouldn’t ( the Darryl Hannah portrayal), because she would end up sleeping with her. (This attitude came about because women during the war in America found their true independence, they worked in jobs that men had a monopoly on).


The evolution of film noir came principally because of supply and demand. The building blocks to capitalism. The studios had to churn these films out because of


public demand, The suits funded these lesser projects with a limited budget. The private eye, the detective, etc, all pulp fiction or B-grade films, the term Hollywood used for the support for their main features.


The people who worked on them where in fact like Australia A, they were the Reserve grade. This was the turning point.


Those films were not subjected to the stringent eye of the executives, Without the strict guidelines the A team were able to experiment with their techniques and so they improvised. They didn’t have the huge and glamorous sets with the pampered stars who needed the beautifying lighting. They concentrated on the story and character development. This freedom gave Hollywood the cinematic look, that to this day, modern film makers are using. For six years the Germans put a stop to Hollywood films and when the war finally ended, the French were bombarded, they saw a change in the US method of story telling. From the perky optimistic, morally contrived scenario, to this new truth of human nature. The severe contrasts of the images of those films, paralleled the grimness of the period. I can just imagine the avent garde’s of the time, drinking their coffee and smoking their cigarettes whilst getting all excited with this style that resembled expressionism. They gave it a name and so film noir was born. The film revolution had begun and the domino effect occurred throughout Europe.


History has shown us that nothing lasts forever, like the fall of great men and their realms, film noir met its demise through modern technology and the changing of the time. Once televison became financially accessible to the mass, film noir became a thing of the past. Television sit-coms like ‘I love Lucy’ became the escapism for a new period ‘peace’. Tony Bennet once sung ‘It’s the good life’ which became the new theme of optimism and moral conscience which again took a hold in the American way. The dark side once again relegated to the fringes of human society.


Its resurrection during the years preceeding the Vietnam War indicate that the human spirit does have a conscience for it again, inspiring a new wave of writers to delve into the human consciousness, “Taxi Driver’ took us into the world of one man who felt that no one cared and that maybe he could make a difference. Neo-noir was re-introduced into our culture and for the next three decades the genre and style kept re-inventing itself with films such as ‘Body Heat’, ‘Pulp Fiction’ and ‘LA Confidential’.


So in conclusion, film noir captured the imagination of many for so long because…..


quite simply, man will always want more and some will go to great lengths to achieve this.


Reference


Film Noir by Hyde Flippo


Dark Cinema by Jon Tuska


Wikipedia. The free encyclopedia


What is this thing called noir by Roger Westcombe


The Maltese Falcon dir Howard Hawks


Blade Runner dir Ridley Scott

















Reference


Film Noir by Hyde Flippo


Dark Cinema by Jon Tuska


Wikipedia. The free encyclopedia


What is this thing called noir by Roger Westcombe


The Maltese Falcon dir Howard Hawks


Blade Runner dir Ridley Scott


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n The Hitchhikers Guide to the Galaxy, by Douglas Adams Authur Dent is completely controlled by fate. Many times fate gets him out of a dire situation. The events are way to sporadic to be controlled by fate. This is shown uncountable times threw out the book.


Authur Dent is just a normal person living his life, who happens to be a friend with Ford Prefict. Ford Prefict is an alien from another planet who was left here by mistake. Being friends with Ford is the essential reason for all of the things, extremely lucky, unlucky, and unsafe, event, as mentioned to in this quote “Ah, safe, this must be some on heard of definition to this word”(6). The only reason that Authur is alive is because Ford forced him to drink three pints of beer by depressing him until Authur says This must be Thursday, said Arthur to himself, sinking low over his beer, I never could get the hang of Thursdays(4). All of this happens just before their attempt to hitchhike a Vogan ship seconds before the earth blows up. Being friend with Ford has already payed off. Fate is even more convincing when remembering that Ford wasn’t even supposed to be on Earth. He was supposed to be gone many years earlier.


When Ford and Authur finally hitch a ride on the Vogan ship, they are very fortunate all the way up till the Vogans find them and force them to listen to the third worst poetry of all of the universe. After the torture the Vogans decide to drop the two into open space. Ford immediately knows that they will not survive for more than 0 seconds, and the probability of being picked up during this time period is ungodly. Author asks him “Are we going to die” with a since of hope. Ford straightforwardly answers, “Yes”(5). This part of the book is by far the most fateful. Some how, on the th second of being in space, a passing ship comes by and picks them up. They are picked up by a ship powered by an unlimited probability machine, which means that this ship is capable of traveling at any speed. In fact, it is so fast it is in every part of the universe at the same time.


Many people believe that destiny is controlled by one’s god, and most religions are trained to believe that the only god to exist, is their god. Ford and Authur are of two deferent religions, so there is know way that their destinies could have been made to interact. Therefore all of the events, Lucky and unlucky, Authur and Ford take place in, are controlled by fate.


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Some of the minor characters in the book even demonstrated fate. One example is when a sperm whale is warped from earth to save the ship. It could not be controlled by destiny because an individual is responsible for it. The whale happens to be unlucky enough to be warped into space and to be slammed into the surface of a planet.


In The Hitchhikers Guide to the Galaxy, fate is demonstrated time upon another. The book could be read again and again and a new demonstration of fate would be found each time. Then again someone might argue that it is destiny.





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Harry Potter and the Chamber of Secrets





The book starts with the arrival of Dobby a house elf, who warns Harry not to go back to Hogwarts School of Witchcraft and Wizardry. But Harry wants to go back to Hogwarts because it is his favorite place in England. And then Harry chases the elf down the stairs because Dobby did not want to give Harry his letters. And then an owl come with a letter to him that he is not to use magic out of Hogwarts or he will be expelled from school. So the Durslays lock him up in his room and can’t get out by magic or he will be expelled. One day Ron, Fred and George, his friends at Hogwarts come and get him in a flying car and then he escapes from the Dursleys. When they get to King Cross Station, they cannot go through the barrier that separates the Muggle station and the wizard station so they go to school in the flying car. Then they crash into the Whomping Willow and Ron broke his Wand. They both get detention and then there attacks in the castle and every one thinks that Slytherin Heritor is Harry because he can speak Parseltongue, the power to speak to snakes. Then Ron, Harry and Professor Lockart go down to the chamber of secrets and find out that the Slitherin Heritor is Tom Riddle also known as Lord Voldemort, Harry puts the memory of Tom Riddle back in a journal and saves Ginny Weasley, Ron’s sister. But in the chamber Lockart put a Memory Charm on himself and knocked himself out with the Stupefy spell witch is a stunning spell. And then Harry and Ron tell Dumbedor an McGannals everything.





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Nicholas Bond Date15/6/0


Twelve Angry Men


Que 1) “ Truth is a matter of perception, which is created by experience”


The 5th, 10th and 11th jurors are all uniquely different characters. However despite this individuality they do have something in common, this being the fact that they base their decisions on past encounters and or experiences. They all use this either against or in favor of the defendant.


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The 5th juror’s experience of living, working and growing up in a slum area has given him good idea of the difficulties the defendant faces in everyday life.


The 10th juror is totally different. He still bases his decisions on past


experiences and encounters, but growing up with people like the


defendant, he has an image of them being born criminals.


The 11th juror is an immigrant. Some people tend to think of


immigrants as perhaps inferior because they are different. So, he


would know the prejudice the defendant encounters.


These three jurors particularly, cause great conflict among the other jury members in the way they gather and express their opinions and views on past experiences and encounters with people like the defendant.


“I used to play in a back yard filled with garbage, maybe it still smells on me.”


The 5th juror is a man of few words. His personality is not exactly memorable. He still makes his fair share of points. Some of these points make you feel quite sympathetic towards him.


This juror works as a male nurse in a slum area. He is also sensitive to the fact that he grew up in a slum area. The defendant also comes from a slum area. Hence the quote. “Truth is a matter of perception, which is created by experience”, sits comfortably with the 5th juror. He will have a good idea of the defendant’s background, as it is on he is quite familiar with as it is his own.


At the stage in the book where the jury members are studying the knife, the 1th juror explains with confidence that he believes he knows how the knife was used to stab the victim in the chest.


The 5th juror, from a slum background, has grown up being familiar with all sorts of knives, as he mentions in the text. (pg 4) “Wait a minute. Give me that. I hate these things. (Things being the knife) I grew up with them.” He explains how he has seen too many fights involving switch - blade knives. So, how to use one is almost second nature to him.


The 8th juror questions “how do you use it.” The 5th juror replies, “Underhanded. (Demonstrating) Like that. Anyone who has ever used a switch knife would never use it the other way.”


This series of quotes, proving the 1th juror wrong, gives us an idea of how the 5th juror uses his childhood and teenage years of knowledge and past experiences to substantiate and support his argument. He, believing the defendant is innocent, uses his knowledge to prove his beliefs are right.


The 10th juror is a self-employed garage owner. He dislikes most of his fellow jurors and they dislike him. He sees other peoples’ points as useless and disregards them. He deliberately repeats his points and expects people to listen. He gives the impression that only he and the people who agree with him have valid arguments worth discussion. Unlike the 5th and 11th jurors, the 10th is rude, arrogant and has made up his mind that the accused is guilty. He is very eager to leave the jury room. Even the smallest amount of evidence is enough to convince him.


The 10th juror makes various rude and impatient comments e.g. “Listen, I don’t see what all this stuff about the knife has to do with anything. Somebody saw the kid stab his father. What more do we need. I got three garages of mine going to pot while you’re talking. Let’s get done and get outa here.”


This particular remark highlights his impatience and ignorance.


Like the 11th and the 5th jurors the 10th juror also bases his decisions on his past experiences whilst growing up. Instead of using his background knowledge to help the defendant, he uses it to try to convict him. E.g. “I don’t mind telling you this, mister. We don’t owe him anything. He got a fail trial, didn’t he? What do you think this trial costs? He’s lucky he even got one. Know what I mean? Look we’re all grown ups here. We heard the facts, didn’t we? Now you’re not going to tell me that we’re supposed to believe that kid, knowing what he is. I’ve lived among em all my life. You can’t believe a word they say. I mean, they’re born liars”


This shows how he uses his experiences of growing up in a tough unstable environment against the defendant.


The 10th juror bases his decisions on his view of his own past experiences with boys like the defendant. However, in a different manner to the 11th and 5th jurors.


The 11th juror is articulate, polite, acute, mature and realistic. He is man from thought to be from the central � northern region of Europe, most probably Germany. His profession is a watchmaker. This juror is an immigrant like the boy (The defendant). He understands the prejudice the boy encounters. However, it is not until the third vote that the 11th juror declares his verdict as that of not guilty. From then and on he defends his position and tries to convince others of his decision.


Although there is no evidence in the book of the 11th juror speaking of exactly where or how he grew up, we do know that he is an immigrant. By reading his quotes, it sounds like he would know that people often consider that immigrants are somehow inferior to or from lower socio- economic backgrounds than they are. Knowing this, the 11th juror addresses the jury in such a way as to prevent them assuming that the accused is merely a criminal “low-life”.


On page 1, conflict arises among the jurors concerning the defendant and how he had returned to the crime scene hours after the murder took place. The following set of quotes sums up what I have just written about the 11th juror


11th juror “This then depends on your definition of panic. He was calm enough to see to it that there were no fingerprints on the knife. Now where did his panic start and where did it end?”


rd juror “Look, you can forget all that other stuff. He still came home to dig out his knife and get rid of it.”


11th juror “Three hours later?”


rd juror “sure, three hours later”


11th juror “If I was the boy and I had killed my father, I would not have come home three hours later. I would be afraid that the police would be their, knife or no knife.”


This shows the 11th juror speaking in favour of the defendant to convince his fellow jurors of the defendant’s innocence. The 11th juror puts himself in the position of the defendant to prove his point.


The 11th juror’s background obviously has a big effect on his decisions. Being an immigrant, he is prepared to defend the boy from those who class them both as somehow inferior.


The three Jurors I have chosen don’t have much in common at all apart from the one simple fact. This fact being that hey all base their decisions on their past experiences.


One of the main reasons the jury’s decisions in the book takes so long is because each juror (especially the 11th, 5th and 10th jurors) are so uniquely different.





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Behind every nation there is a dream or belief that drives its citizens onwards. It makes them work towards a state that is deemed ‘paradise’ by that society. An example of this is the American Dream. It can be summed up in the statement provided for consideration for this answer “ The American Dream in its true sense is the dream of a land in which life should be better, richer and fuller for every man, with opportunity for each according to his ability”. It has been this notion that has been implanted in the hearts of the American peoples for years. It is central to their much-loved system of democracy and that all men are created equal. However like many beliefs borne of idealistic people, the impact of human nature has not been considered with the application of these ideals. The American Dream is a beautiful idea; the thought that people will be judged on themselves and not circumstance, class, appearance, etc. However human nature has the need to feel important and rule over other people. It always wants more and will never be happy with what it already has. These are the central reasons behind the evolution of a class system and it is this system that makes the American Dream little more than a myth. ‘ The Great Gatsby’ by F. Scott Fitzgerald exposes this myth and therefore focuses on the corruption and death of the American Dream. Fitzgerald implants values and attitudes within the characters of Tom and Daisy Buchanan that he saw as being prevalent in 10’s American and that believed were to blame for the destruction of the American Dream. Via these characters and their actions, the reader is seen the downfall of Jay Gatsby and the American Dream, who by the end of the text are one in the same.


Tom and Daisy Buchanan are the epitome of what Fitzgerald saw as being the ‘old’ money upper class. They are shallow, unintelligent, arrogant, self-serving, and manipulative to say the least. Being from families that are already rich, they have never had to work a day in their life and are guaranteed never to do so. They preach to others about the need for respect and morals, but go and do the wrong thing anyway. They find amusement in the smallest things and hate others for the most pointless reasons. Tom and Daisy Buchanan are all these things. The way the two toy around with people and play on their hopes and dreams sickens the reader to the point of hatred. It is their values and actions in the text that destroys Gatsby, and their kind in the 10’s that corrupted and destroyed the American Dream.


Tom Buchanan is represented to the reader as a bigot, hypocrite and womaniser. His affair with Myrtle Wilson, input in killing Gatsby and many statements throughout the text stir feelings of loathing and abhorrence in the reader. Fitzgerald represents Tom Buchanan as a corrupter of the American Dream. His manipulation of people and an utter disrespect for their lives and well being, turn the idea of all peoples succeeding on their own abilities into an illusion. Tom Buchanan gives the people around him a glimpse of success before swiftly pulling it back for himself to toy with. This is no more evident in his dealings with George Wilson. Wilson wants to buy Tom’s car so that he can make some money. Tom says he’ll willingly sell his car yet continually brings excuses for why he can not bring it in. He prefers to hear Wilson beg.


“ ‘ I didn’t mean to interrupt your lunch,’ he said. ‘ But I need money pretty bad, and I was wondering what you were going to do with your old car.’ (p117)


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This is typical of Tom’s behaviour. He is a brutish man who finds delight in others pain. However he does not destroy their dreams otherwise he would not have anything to play on anymore. The role of executioner relies on Daisy Buchanan’s soldiers.


Daisy Buchanan is the single most destructive character in ‘ The Great Gatsby’. It is the shallow and self-serving way she treats Gatsby and eventually leaves him that kills him long before Wilson does. Five years before the events in the text, Gatsby and Daisy were an item. The only reason Daisy would go out with him was that he lied said he was rich. But Gatsby had to go to World War I and while he was away she married Tom. At one point Daisy did in fact love Gatsby. Five years on in the setting of the text, Gatsby is now rich via bootlegging and when he meets Daisy they ‘resume’ their love. During this love affair, Gatsby has realised his American Dream, to have the girl of his dreams. So it is cruel and despicable that she would suddenly not love merely because of his profession and method of obtaining wealth.


“ … he began talking excitedly to Daisy, denying everything, defending his name against accusations that had not been made. But with every word she was drawing further and further into herself, so he gave that up, and only the dead dream fought on…” (p18)


Fitzgerald has used the value of being respected by your peers and the attitude that ‘new’ money was of a lower class overcoming the supposedly unbreakable bond of love to show the way in which the Daisies of 10’s America are responsible for the death of the American Dream.





Fitzgerald illustrates to the reader values and attitudes that he saw as being prevalent in the ‘old’ money class through the characters of Tom and Daisy Buchanan. Both Tom and Daisy are members of this ‘old’ money class and are there to typify and display the role that this class had in destroying the American Dream. Fitzgerald describes both, and therefore the ‘old’ money class, in the following way


“ They were careless people, Tom and Daisy � they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made….” (p170)


The two important words there are money and vast carelessness. The ‘old’ money class had both. They did not care that they destroyed people or kept them from achieving, just as long as they still had all their money and their pitiful notions that they were the most important people on Earth. It was for these reasons that the ‘old’ money class used the American Dream to manipulate people and use them for their own enjoyment or benefit. Their use of the American Dream, as seen by Fitzgerald, ultimately corrupted and destroyed it for all.


For the reader to see Tom and Daisy Buchanan as corrupters and destroyers of the American Dream, they must be seen to destroy someone or something that is representative of the dream. In the text this symbol is the character Jay Gatsby. Gatsby is really James Gatz, son of poor farmers from North Dakota. Under the wing of the mining multimillionaire Dan Cody, Gatsby learnt the way of the upper class. Later on in his life he meet Daisy, the love of his life. He had to lie to her about his financial status for her to see him and after a while their love blossomed and he told her his real status. Before they could wed, he was sent to World War I. When he returned, Daisy had married Tom. So Gatsby embarked on a journey to join the ranks of the rich. With the upper class working against him he was forced to make his fortune via bootlegging. Now in the setting of the text, Gatsby is attempting to regain Daisy love.


Gatsby is a tragic hero. Usually confined to the medium of theatre, the qualifications for the title are evident. Gatsby’s downfall comes as a result of forces he cannot control.


“ … Gatsby turned out all right at the end; it is what preyed on Gatsby, what foul dust floated in the wake of his dreams.” (p8)


Just like characters such as Macbeth (Macbeth) and Winston Smith (184), Gatsby was brought down by a force he had no control over i.e. his absolute love for Daisy and the corrupt nature of her and her class. The other factor that allowed such things to destroy him was his own best intentions. For Macbeth, it was his ambition and for Winston, it was for freedom. In Gatsby’s case it was his love and his dream that Daisy would love him to.


“... he must have felt that he had lost the old warm world, paid a high price for living too long with a single dream.” (p15)


Gatsby’s whole life was the American Dream, it was the belief that Daisy would love him because he was who he was. But Gatsby lived too blindly with this belief. The reader can clearly see that the only way Gatsby could possibly get close to Daisy was by gathering wealth. Gatsby should have seen this. In a way he achieved a corrupt version of the dream, he became wealthy via his own means. But his death and the death of the American Dream comes with the foul way in which the values of Daisy and the ‘old’ money class savagely ripped his dream from him, turning it into little more than a myth.


The American Dream in its true sense is the dream of a land in which life should be better, richer and fuller for every man, with opportunity for each according to his ability. The reader can see that throughout the text this ideal is corrupted and killed, turning it from the basis for a nation to little more than a hollow myth meant to mislead people for the benefit and entertainment of the higher classes. The picture that Fitzgerald paints of these upper classes is bleak. To him they are shallow, infantile, arrogant beings that are cruel just for entertainment. In the text, the characters of Tom and Daisy Buchanan are shown to be the embodiment of this idea. They are presented to the reader as the corrupters and killers of the American Dream. For him to show these acts and the transition of the dream to a myth, Fitzgerald uses the character of Gatsby. He has built his life on the American dream and in doing so has become one with it. His real death can be seen as occurring when he loses Daisy. For him and the many people who believe in the dream, it has been turned into a myth. This, behind the face of a tragic love story, is the basis of ‘ The Great Gatsby’.





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Residence


The residency rules for the purposes of Australian income tax law are a combination of common law principles and statutory rules in ITAA 16. The definition of ¡§Australia resident¡¨ in sec 5-1 of ITAA 17 merely adopts the definition of ¡§resident¡¨ (or ¡§resident of Australia¡¨) in sec 6 (1) of ITAA 16, which itself partly adopts common law principles.


Residence and source as criteria for liability


A taxpayer, whether an individual or a company, who is a resident of Australia is generally assessable on ordinary and statutory income derived from all source whether in or out of Australia (ITAA 17 sec 6-5; 6-10). There are some important exceptions to this rule, for instance, for overseas employment income, approved oversea projects and certain temporary residents (foreign income exemption for temporary residents effective from 1 July 00).


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Income earned by some foreign companies and non-resident trusts is attributed to resident taxpayers and taxed on an accruals basis, that is to say, it is taxed in the hands of resident taxpayers when it is derived, not when it is remitted to Australia. Income earned by resident taxpayers from certain other foreign investments may also be taxed on an accruals basis.


In general, however, it will be imperative to determine whether or not the taxpayer concerned is a resident of Australia and then to determine the source of the income concerned.


Residence of individuals generally


Section 6(1) of ITAA 16 provides four exhaustive tests of residence for individuals. In summary, an individual is a ¡§resident of Australia¡¨ for Australia domestic tax purposes if he or she satisfies any of the following tests.


(a) The individual is a resident of Australia according to ordinary concepts ¡V this test arises from the use of the words ¡§who resides in Australia¡¨ in the preamble portion of the definition before the specific statutory inclusions.


(b) The individual is domiciled in Australia unless the Commissioner is satisfied that the person¡¦s permanent place of abode is outside Australia.


(c) The individual has been in Australia for more than one-half of the income year, namely in excess of 18 days, unless the Commissioner is satisfied that the individual¡¦s usual place of abode is outside Australia and that he or she does not intend to take up residence in Australia.


(d) The individual is a member of certain Commonwealth Government superannuation scheme or is the spouse or child under 16 of such an individual.


Consequently, an individual who does not fall within any of the three specific rules (i.e. to 4 above) may nevertheless be treated as a resident of Australia on the basis of the common law concept of residence. There are a number of cases dealing with this issue but none seems to and establish any specific principle that is of general application Lysaght v IRC (18) and Levene v IRC (18).


Ordinary concepts of residence


An individual is an ¡§Australian resident¡¨ if he/she resides in Australia (the primary or ¡§ordinary concepts¡¨ test of residence) or satisfies one of three statutory residence tests. Residence in the primary sense is quite different from domicile, nationality and citizenship.


The primary test for deciding residency status is whether the individual ¡§resides¡¨ in Australia according to the ordinary meaning of that word. Whether a person ¡§resides¡¨ in Australia is essentially a question of fact and degree and there is no one rule which will determine the issue in every case. The dictionary definition of ¡§reside¡¨ is ¡§have one¡¦s settled abode, dwell permanently or for a considerable time, live in or at a particular place¡¨. It is not necessary for a person to reside in a particular structure such as a house. While physical presence alone may be insufficient evidence of residence, it does seem to be a prerequisite to a finding of residence in a particular place.


A person may be resident in more than one place. An individual may be held to be resident in Australia, even though living permanently abroad, if the individual visits Australia for part of the year as part of the regular order of his/ her life. Conversely a shipman, for example, will be resident in Australia if he maintains a family home in Australia at which the shipman spends time while in Australia, even though absent from the country for most of the year.


The circumstance under which an individual entering Australia will be treated as ¡§residing¡¨ here are considered in Taxation Ruling TR 8/17. The ruling is relevant to most persons entering Australia, including, academics teaching or studying in Australia, students, tourists and those on pre-arranged employment contracts.


The period of physical presence or length of time in Australia is not, by itself, decisive; individuals are considered to be residing in Australia when their behavior over the time spent in Australia may reflect a degree of continuity, routine or habit that is consistent with residing here. The Commissioner considers that six months is a ¡§considerable time¡¨ for these purposes. When behavior consistent with residing in Australia is demonstrated over a considerable time, an individual is regarded as a resident from when that behavior commences.


While each case must be considered on its facts, the following factors are useful in describing the quality and character of an individual¡¦s behavior


(a) the intention or purpose of the person¡¦s presence in Australia;


(b) the extent of the person¡¦s family or business/ employment ties with Australia;


(c) the maintenance and location of the person¡¦s assets; and


(d) the person¡¦s social and living arrangements.


Individuals who migrate to Australia are regarded as residents as soon as they arrive. The factors which the Commissioner regards as relevant to determining whether a business migrant is a resident according to ordinary concepts are set out in Taxation Ruling IT 681.


The question of residence at common law is clearly one of fact and a number of items will need to be considered in reaching a conclusion. For instance, it may be necessary to look at such matters as the person¡¦s usual place of abode, the location of the person¡¦s family, where his or her personal effects are kept and the purpose, frequency and duration of visits, the nationality and citizenship of the individual and any social ties that he or she may have with Australia.


Where a person is a resident according to ordinary concepts, the 18-day test will arguably not apply. Therefore, intending migrants would only be treated as commencing to reside in Australia from the date of their first arrival and not for the whole of the income year that would have occurred under the 18-day test. Thus, part-year residency is possible where a person becomes a resident under ordinary concepts. This consistent with the approach taken in Ruling TR 8/17, which state that a ¡§migrant who comes to Australia intending to reside here permanently is a resident from arrival¡¨ (para 16).


If a person becomes or ceases to be a resident during an income year, the tax-free threshold applicable to residents is pro-rated.


As a rule, the Commissioner will treat overseas students studying in Australia as residents where the course of study extends beyond 6 months Ruling TR 8/17.


Residence ¡V Three statutory tests


If a person does not reside in Australia within the ordinary meaning of ¡§reside¡¨, that person may nevertheless be a resident of Australia for tax purposes if any one of three additional statutory tests in the definition of ¡§resident¡¨ in ITAA 16 sec 6(1) is satisfied.


Domicile and permanent place of abode test


Under the first of these tests, that is domicile and permanent place of abode test, a person whose domicile is in Australia is deemed to be a resident of Australia unless the Commissioner is satisfied that the person¡¦s permanent place of abode is outside Australia.


Even if an Australia domicile is established, the individual will still not be treated as a resident of Australia for tax purposes if the Commissioner is satisfied that the individual¡¦s permanent place of abode is outside Australia. This is a question of fact to be determined in light of all the circumstances of the particular case.


The 18-day and usual place of abode test


Under the second statutory test, constructive residence in Australia is attributed to a person who is actually present in Australia for a total period of more than half the year of income, unless it can be established that the person¡¦s usual place of abode is outside Australia and that there is no intention to take up residence here. This is called the ¡§18 day¡¨ test. The test applies in relation to the relevant income year rather than a calendar year. The person¡¦s presence in Australia need not be continuous for these purposes, i.e. all the days the person is present in Australia during the income year will be counted (Taxation Ruling IT 681).


The fact that a taxpayer does not have a usual place of abode in Australia does not necessarily mean that the taxpayer must have a usual place of abode somewhere else. In FCT v Executors of the Estate of Subrahmanyam (001), the Full Federal Court commented that a person may be a ¡§bird of passage¡¨ and have no usual place of abode anywhere (and thus prima facie be a resident of Australia if present here for at least 18 days).


Commonwealth superannuation scheme test


An individual is a resident under the third statutory test if he/ she is a contributing member (or is the spouse or child under 16 of a person who is a contributing member) of the superannuation fund for Commonwealth Government officers. Its application relies on membership of the Commonwealth Government superannuation schemes established pursuant to the specific statutes listed, or having the specified relationship to a member of such a scheme.


There are some differences of opinion as to whether a person who is actually in Australia for more than 18 days in an income year is resident only for that time during which he or she is actually present or for the whole income year.


Part-year resident


Where a person resides in Australia within the ordinary meaning of the term for less than one-half of the income, that person would be treated as a resident of Australia only during the actual time he/ she is present in Australia. This means that the person would not be assessable to ordinary Australia tax on foreign source income derived during the period he/ she was not actually in Australia.


Where, however, the individual has been present in Australia for more than half of any income year and is constructively a resident of Australia within the 18 day test, the position is not clear. The early cases suggested whole year residence in such a situation, but more recent authority would suggest that the person is only resident while actually in Australia.


Legislative changes such as the pro-rating of the tax-free threshold and the concept of sufficient residency for companies under the imputation provisions, in respect of which part-year residence is clearly contemplated by the drafter, would seem to reinforce this conclusion, although the issue cannot be said to be entirely free from doubt.


Where a person is a resident of Australia for only part of the year, the tax-free threshold which applies to residents is only available on a pro-rated basis.





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Hmong vs. Western Mbedical Explanatory Models


In the novel The Spirit Catches You and You Fall Down, the focus of the novel is on a young Hmong child named Lia who suffers from severe epilepsy. Within the novel, two different explanatory models explained the belief that Lia suffers from epilepsy. One explanatory model was that of the Hmong perspective, while the second came from Lia’s American physicians.


The Hmong culture believes that all physical disease comes from a spiritual nature, which is shown in the reasoning for how Lia became ill. Lia’s parent’s believed that when Lia’s sister slammed the door to their house, that Lia’s soul was lost. This loss of her sole was also believed by Lia’s parents to be the cause of Lia’s illness. The Hmong also believe that the spirits are alive and are involved in the daily lives of their people. This is another Hmong explanatory model for the cause of Lia’s epilepsy. This is represented in the theory that the spirit caught Lia and is continuously making her ill.


The second explanatory model in The Spirit Catches You and You Fall Down is a western explanatory model described to Lia’s parents by her American doctors. These doctors believed that the reason that Lia had recurring seizures was based strictly on their education in western medicine. During their education these doctors were taught the signs and symptoms of epilepsy. These signs included attacks of motor, sensory, or psychic malfunctions, which were all present in Lia, leading to her diagnosis of epilepsy. While western medical teachings was believed by the doctors to be the main cause of Lia’s seizures, western ways of thinking were also involved. The thoughts and viewpoints that Lia’s parents did not give Lia her medications on purpose was another explanatory model used by the doctors. This explanatory model was both correct and incorrectly used at the time. This was because while Lia’s parents did not administer Lia her medications at times because of their own beliefs, there were also times in which Lia’s parents did not understand the directions they were given.


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While explanatory models may help with the diagnosis and treatment of diseases and illnesses, they can also create problems at the same time. In incidents such as Lia’s illness, language barriers may cause explanatory models to be misunderstood, this leading to mistreatment of the patient as well as the illness. In Lia’s case it was very difficult for the Hmong explanatory model to mesh with the western medical explanatory model, eventually leading to the death of Lia.





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Colonization of new countries or lands has had various affects on the lives and cultures of indigenous people. Some examples in history where indigenous people’s lives have been affected by colonization include the Australian Aboriginals and the Aztecs.


The Aztecs, who inhabited Mexico, were invaded by the Spanish.


The Australian Aboriginals were stripped of their culture by the British and forced to live in a foreign civilisation.


The Aztecs were forced to pay a special tax, called tribute, to the Spanish. They were also forced to work as servants in their houses, tend to their crops in the fields and work in their gardens. If the slaves disobeyed the Spanish they had the right to kill them because their laws stated that if they bought them they rightfully owned them as their own property. The British didn’t take the Aboriginals as slaves they either slaughtered them on the spot or they separated them from their families and sent them to institutions to be ‘managed’ by the British. In these institutions the Aboriginals were forbidden to teach their children their ancient language and their culture.


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When the Spanish invaded the Aztecs their army had more sophisticated weapons and they had better thought out and planned strategies. The Aztecs didn’t fight back straight away because they believed that the Spanish were their god who had come to save them. When the Aztecs finally realized that the Spanish soldiers weren’t their god they fought back. The Aztecs made a tragic mistake, they captured the Spanish and many escaped. On the other hand the Spanish killed the Aztecs straight away. The British were much like the Spanish they slaughtered the Aboriginals without thinking. The British had no respect for Aboriginal religion, in fact most of the settlers rebuked them forcefully saying that their ‘Dreamtime’ was a waste of time. A lot of the attacks started by the British invaders walking on to an Aboriginal sacred site and being challenged as to why they were there, because the British couldn’t understand them they resulted in shooting them.


The Spanish were absolutely horrified at the Aztec religion so they ordered all their temples to be pulled down and destroyed, although they did let the Aztecs keep a few of their sacred places. The British ordered that the Aboriginals be forced off their land and farms, for the European settlers, were put there in place of them. They also, like the Aztecs, were allowed to keep a few sacred sites.


With their guns and armies both the Spanish and the British brought all kinds of diseases with them. The main diseases they brought were Small Pox and influenza, which effectively wiped out much of the population of the Australian Aboriginals and the Aztecs.


From the late 180’s the remaining Australian Aboriginals were moved into special reserves and mission houses. They were still forbidden to teach their children their culture and way of life in these places.





When the European settlers settled in they restricted the ability of the Aboriginals to move freely about their land.


The British also demolished all the Aboriginals’ natural food sources, making them rely on the food handouts supplied by the British settlers.


The changes happened in different places in different times for example they began in Sydney and Parramatta from 1788. In Cambelltown / Camden from the early 1800’s. In the Illawarra area from 1815.





However some Aboriginals accepted colonization and the new lifestyle. Most had no option it was a choice of either you accept it, you starve or you get the gun, this was a cruel way to get the Aboriginals to accept colonization.


Many Aboriginals became dependent on alcohol, tobacco and food and clothing handouts.


The Mexicans of today who are descendants of the Aztecs call themselves Mestizos. Today the Aboriginals are better known than the Aztecs, in fact they are one of the best known, but least understood cultures worldwide. Aboriginals are probably more familiar to the rest of the world than white Australians. Today many Aboriginals don’t know of their origins e.g many don’t even know the names of their parents or their grandparents � these are called the lost generation.


To try and understand different people’s cultures we have to look at their society today and their society in the past.





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Is the Devil purely Evil?


According to the Greek philosopher Leibniz, the Devil is a spirit “who always wants evil, but always creates the good.” This world of ours is not simply a world of opposites. There isn’t simply light and shade, heat and cold, good and evil, or God and the Devil. Our world is a vicious string of duality, where nothing can be distinctly characterized as one or the other.


By looking at writings from different religions, Adelbert von Chamisso, and other philosophers, it will be shown that Leibniz’s picture of the devil isn’t so simple. Although the main goal of the devil is purely evil, most of the time, pure good develops from his actions.


Satan, Shaitan, the Devil by any other name it is still the same. What the devil encompasses is supposedly the true embodiment of evil. But what is evil? Hate, Pride, Greed, Lust, all of these things make up what is generally part of being human. The belief in evil spirits led naturally to the acceptance of a single supreme evil deity, conceived as embodying all that is bad, destructive, and immoral. So how can such an evil thing create good?


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Human beings often blame all of our own weaknesses as the acts of the devil. For example, Christian preachers like Dale Robbins states, “The devil is the personification of all that is evil and is the author of every despicable work. Satan has targeted you as a victim, he desperately hopes that you will, as many Christians, remain ignorant of his reality so that you’ll blame his assaults on somebody or something else.” By creating this evil entity, we have something to blame rather than ourselves for our bad actions.


Both good and evil are needed for the balancing of energy and life. Since evil is a force, good and evil are part of the whole, and therefore are ultimately the same thing. Therefore the Devil must possess both good and evil in order to exist. According to Deepak Chopra’s best-selling book How to Know God, “Good and evil are two sides of the same force. God created both because both are needed; God is in the evil as much as in the good.” Therefore, the devil must be in the good as much as in the evil.


In the sacred writings of Kabbalah it is quoted that, “even the heart of Satan has a divine spark; Evil has a divine nature within it…” The darker sides of life, or the work of the Devil, are not necessarily all evil. It is a struggle for the human mind to seek balance and understanding in the universe. In the dark or ugly side of human nature lies the seed of true spiritual integration.


Therefore, devil could not exist if he was purely evil. Although he may not create good intentionally, it is beyond his powers to prevent it from happening. The idea of duality, or polarity is shown in the yin-yang symbol. One side is black with a white dot, the other white with a black dot. Most people believe this symbol is representing opposites, but then why are the different colored dots in the center of each side? The symbol actually represents polarity. The two sides are constantly changing and merging with eachother, thus becoming each other.


The duality of the human being is shown often in the works of Charles Baudelaire. In To the Reader Baudelaire suggests it is “the Devil who pulls the strings that move us!” Yet, we also have the desire to strive towards what he calls ‘the ideal’. Our minds are the only things that we value enough to rescue from evil. We slip completely into the hands of the devil only when our soul is not bold enough. When we crawl into indifference is when the devil has control.


Chamisso shows the duality of the Devil in “The Strange Story of Peter Schlemiel”. Contrary to many stereotypical devils, the one portrayed is that of an old man in a grey suit. The grey man is cunning and manipulative, making Peter act on impulse rather than with his own mind. While the devil is attempted to do pure evil, he becomes Peter’s friend and companion. With one meaningless impulse, Peter sacrifices his shadow to the Devil. Without realizing it though, the Devil, in return, teaches Peter the value of his soul.


Through the Devil, Peter becomes a more understanding person and learns the value of self. Peter accepts that a life of solidarity exploring the world is the only place he can be himself. So although the Devil initially wanted evil- the possession of Peter’s soul, he only gained a shadow, and unintentionally, taught Peter a good lesson.


Like the famous saying, we learn from our mistakes, the “impulses” or actions that we’re blaming on the devil end up teaching us something good. From these mistakes in our lives, we learn to value something else. For example, Peter Schlemiel lost his shadow but gained his self-value. In “To the Reader” we see the duality of the human being that’s pulled by the Devil but strives for the ideal. And though various religions like Kabbalah and Christianity we see the good that is created by the Devil. So although there may be this evil entity in existence who only wants evil, he doesn’t get his way. From his evil desires, good is created.


Bibliography


Baudelaire, Charles. Flowers of Evil


Chamisso, Adelbert von. “The Strange Story of Peter Schlemeil”


Chopra, Deepak. How to Know God


Montenegro, Marcia. “The Dark Side Beyond Good and Evil”


Robbins, Dr. Dale. “Defeating your Adversary, the Devil”, Victorious Publications


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FOREIGN DIRECT INVESTMENT IN THE FRAMEWORK OF CROSS-BORDER CO-OPERATION IN SELECTED BALKAN COUNTRIES


TRAJKO SLAVESKI AND PECE NEDANOVSKI


Faculty of Economics, St. Kyril and Methodius University


F.Y.R. of Macedonia


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Introduction


Due to certain historical and institutional factors in the past, there were significant obstacles to movement of capital to and from the Balkan economies. Balkan countries in transition faced shortage of capital at the early stages of transformation of their economic systems. Their enterprise sectors needed restructuring financial, ownership, technological, etc., in order to be viable and ready to face the new challenges of market economy. Differences in attitudes towards FDI among countries in the region remain and are determined by various factors (cultural, ethnic, social, etc.). However, the more dynamic inflow of capital in the future is expected to reduce these differences.


The goals of the paper are


· To elaborate the current and future tendencies in the capital movements in the selected Balkan countries. It is natural to believe that Albania, Bulgaria and FYR of Macedonia will be net recipients of capital inflows in the short and medium term. However, one should not neglect the increasing importance of joint ventures between firms from these countries, although this kind of cross­border investment is still insufficient to represent a more significant contribution to the overall economic activity in the respected countries.


· On the other hand, Greece is the leading net capital exporter in the region. For instance, the share of Greek capital in the overall FDI in FYR of Macedonia is the highest at the moment, with prospects for further increase in the near future. As a member of the European Union, and the most developed country among those encompassed in the framework of the project, Greece seems to be the natural leader in strengthening the economic co-operation among the countries in the region. In this sense, it is interesting to estimate the potential role of Greece in the future process of cross­border cooperation, and with a help of this, the possible accession to the EU for FYR of Macedonia, Albania, and Bulgaria.


Main Characteristics of the FDI in the Selected Balkan Countries (Albania, Bulgaria, FYR of Macedonia)


FDI in the region of Southeast Europe


Fundamental changes have taken place in virtually every country in Southeast Europe as reforms go forward. Despite this fact, the inflows of FDI are still comparatively low, even in the countries that have moved quickest on reforming their economies.


Till the end of 1 cumulative value of FDI inflows in the Southeast Europe 11 countries has reached nearly USD 45 billion (about USD 4 billion for 1 alone). About 60% of this FDI account to Greece and Turkey. In comparison, the countries from Central Europe (Poland, Czech Republic and Hungary) have attracted more than USD 60 billion since the political and economic changes in the beginning of the 10s. However, the governments in the SEE countries recognize the fact that the FDI are very important, and have created a favorable legal framework for attracting FDI.


Table 1 below lists the main sectors with FDI potential among the Balkan countries. It shows that provided the two major things (among others) still missing at large in the region � political stability and lower corruption levels � the Balkan countries in transition have a right to be optimistic about their growth prospects in the future.


Table 1. Sectors with substantial FDI for the analyzed Balkan countries


FDI attractive sectors Sectors that have attracted substantial FDI for the past few years


Black metallurgy FYR of Macedonia


Machinery and equipment Bulgaria


Power, gas and water supply Bulgaria


Electronics Bulgaria


Construction Albania


Transport Albania, FYR of Macedonia


Cement FYR of Macedonia, Bulgaria


Furniture FYR of Macedonia


Textiles and clothing FYR of Macedonia


Food drinks and tobacco products FYR of Macedonia


Trade Albania, FYR of Macedonia


Tourism Albania, Bulgaria


Services Albania


IT & Telecommunications FYR of Macedonia


Source Investment Guide for Southeast Europe, Bulgaria Economic Forum, Sofia, September, 000, p. 11.


Table A1 in the Annex provides quantitative data on the cumulative total and per capita FDI inflows, as well as the share of FDI in the countries’ GDP in 18 and 1 in Albania, Bulgaria, and FYR of Macedonia. It can be seen that Bulgaria has been much more successful in attracting FDI compared to both FYR of Macedonia and Albania. This applies particularly to the period after 16, when Bulgaria achieved macroeconomic stability by introducing a currency board, among other measures. Albania suffered form the instability created by the 17 insurgency, and FYR of Macedonia has been cursed to suffer all the possible shocks in the region, including the notorious 1 Kosovo crisis and its spillover on its own territory two years later.


According to the EBRD, “Bulgaria, Croatia, the Czech Republic and the Slovak Republic registered their largest FDI inflows ever in 1. Much of this increase has been attracted by progress in cash privatization, in particular in the banking and telecommunications sectors, by relatively favorable investment climates and by prospects of accession to the EU.” (EBRD 000, p. 8).


“The key issue of the post-privatization era will be how to attract FDI into greenfield ventures and into privately owned assets. While the attractiveness of existing industrial and commercial assets will depend on their valuation in secondary markets, foreign investors who consider greenfield investments need to take into account the cost of new plant and equipment, the business environment and market potential. Of particular importance is the security provided to investors by the existence of enforceable contracts, standardized product classification and business practices, and customs and other regulations designed to regulate commercial transactions. Moreover, the experience of the transition economies and other emerging markets shows that FDI tends to be closely linked to rising bilateral trade flows. In this respect, the prospect of stability resulting from the removal of barriers to market entry and integration into the European Union also helps to attract FDI.” (EBRD 000, p. 74).


A general conclusion could be drawn that so far there has not been a significant inflow of foreign capital in the selected Balkan countries, compared to the Central European countries (Hungary, Poland, and the Czech Republic), for example. Having in mind the population and territory, the global amount of the FDI are much less than in the other countries in transition. Some of the reasons for this situation are


· Stability (Or more precisely � instability in the region as a whole). The instability has got a very strong negative impact on the FDI.


· Market size. The interest of the foreign investors during the last decade shifted from the search of lower costs (especially lower labor costs), towards the search of new (bigger) markets. No one can dispute the fact that size does matter.


· Potential candidates for Mergers and acquisitions. During the last decade, the FDI came in the form of M&A, unlike before, when FDI were mostly in the form of green field investment. It seems that the potential of good enough companies for M&A in the selected Balkan countries is quite limited.


· Internal factors reforms. The reforms in these countries are lagging behind the same processes in the other countries in transition (for instance Slovenia, the Czech Republic, Poland, Baltic Countries, etc.).


FDI in the FYR of Macedonia


Since independence, the amount of FDI in FYR of Macedonia has been almost negligible. The cumulative amount of FDI in FYR of Macedonia during 11-4 was $. mil, and it only slightly exceeded US $40 mil. in 15. The lack of interest of foreign investors for FYR of Macedonia during the above mentioned period is obvious. This conclusion could be supported not only by the number of signed contracts, but also the small amount of deals, which quite often satisfied only the legal minimum. Significant increase in FDI occurred in 18, when, according to official statistics, FDI amounted around US $11 mil. Unfortunately, this trend was abruptly stopped in the first half of 1, only to recover during the second half of 1 and 000, after the end of Kosovo crisis and relative political stability in the Balkans. The recent events showed that the country has been cursed not to experience at least two normal consecutive years. The spillover of the Kosovo still unsettled crisis, which started at the beginning of 001 and still looms large in the country, has taken a heavy toll on the overall economic activity in FYR of Macedonia, including FDI, which is highly sensitive to the political instability.


After a surge in 18, FDI fell back in 1 to around $0 million. While the Kosovo crisis deterred investors, there were signs of increased interest following renewed stability in the first quarter of 000 to foreign investors. The government is also undertook a number of measures to address concerns raised by foreign investors, such as activities to set up a one-stop shop for registration of foreign investors, amendments to strengthen legislation on mortgages, bankruptcy and property rights, and possible increased tax exemptions. The government adopted a new law on free-trade zones in 000, and the first zone is under construction (EBRD 000, p.16).


The data (see Table ) show that Greece is the biggest investor in FYR of Macedonia. As of 18, 8.7% of the total foreign investment in FYR of Macedonia was Greek. The country that follows (.%) is Cyprus, reflecting investment from some off shore companies with possibly Serbian and Russian capital. Germany, the third investor in FYR of Macedonia, is far behind with 14.% of the total FDI in 18. In 1 Greece even strengthened its leading position among foreign investors in FYR of Macedonia by increasing its share to 4.5% of the total. Greek investors “discovered” opportunities for investment in the country after relative improvement in political relationships between the two countries. Germany has traditionally been the most important trading partner of FYR of Macedonian companies. The shift to joint ventures between trading partners is a positive sign of improvement towards higher forms of co-operation between the two countries.


Table FDI in FYR of Macedonia, by country of origin (in dollars)


Country Total FDI flows (in thous. dollars) Share of total FDI (in %)


18 1 18 1


Austria 5.050 5.560 . 14.6


Bulgaria 60 144 0.05 0.4


Germany 18.08 4.844 14.0 1.7


Greece 6.74 1.10 8.7 4.5


Ireland 7.005 1 5.55 0.0


Netherlands 14 7 4.85 0.


Cyprus 8.88 1.71 .87 .6


Other 5.86 1.50 1. 4.0


Total 11. 8.07 100.00 100.00


Source National Bank of the Republic of FYR of Macedonia, and “Statistical Yearbook of the Republic of FYR of Macedonia 000”, Skopje.


The total FDI stocks have reached US$ 00 million in 000. The most significant amounts of FDI in 000 have been attracted through privatization transactions at the FYR of Macedonian Stock Exchange.


More than 0% of the FDI’s in FYR of Macedonia are in the manufacturing sector (ferrous metallurgy, cement production, crude oil processing, food and beverages, textiles, etc). Since the end of 17 the investment activity has been intensified, and in 000 significant FDI’s have been attracted in the insurance and banking sectors.


The top investors through privatization and post-privatization transactions include Balkanbrew Holding (Greece), Hellenic Petroleum (Greece), Titan/Holderbank Financiere Glaris (Greece/Switzerland), Balkan Steel (Liechtenstein), Knauf GmbH (Austria), Tobacna (Slovenia), QBE LTD (Great Britain), Duferco Skop (Liechtenstein), National Bank of Greece (Greece), etc.


The most significant case of FDI in FYR of Macedonia to date has been the successful privatization of Makedonski Telekomunikacii, the former state monopoly mobile and fixed-line telecommunications provider. Deutsche Telecom-controlled Matav of Hungary was chosen as its strategic investor. Matav paid €4 million in cash and pledged a further €56 million in network investment over the next two years. So far this is the biggest foreign investment in the country. The cash payment alone is equivalent to % of the country GDP.


Foreign investments in FYR of Macedonia are governed by the Law on Trading Companies (from 17, and amended 18). This Law ensures that foreign investors in FYR of Macedonia are granted national treatment, i.e. investment conditions for foreigners in FYR of Macedonia are no less favorable than for domestic investors. Guarantees for foreign investment are included in the Constitution. It guarantees a free transfer and repatriation of the invested capital and profits. Also, the Constitution prohibits expropriation of property, except in times of war, and certain other unpredictable situations.


The incentives for foreign investors in FYR of Macedonia include a lot of exemptions from customs duties as well as tax breaks. For example, capital equipment of foreign investors can be imported without payment of customs duties, and foreign investors are entitled to a profit tax exemption for the profit generated during the first three years of operation. As a very important incentive for the foreign investors is the low corporate tax rate of 15% that applies to all companies and firms. As of January 001, personal income tax rates were reduced significantly, consisting of two tax brackets � 15% and 18%. In addition, the investment climate for foreign investors in FYR of Macedonia is characterized by the following


· The law provides for national treatment of foreign investors, both legal entities and physical persons. Foreign investors may establish their own enterprises, or engage in joint ventures with domestic enterprises.


· Law on Privatization allows foreign investors participation in the privatization process by means of purchasing shares, where their ownership in the specific enterprise may be partial or full (100%).


· The law is quite liberal in terms of areas where foreign direct investment is possible “foreign persons may invest funds for doing business in economic and non-economic activities in FYR of Macedonia, unless it has been regulated otherwise with other law”.


· Foreign investment may be done in monetary terms, equipment and materials, and royalties. According to this, it may take form of raw materials, too.


· Foreign investors may invest into and own real estate in FYR of Macedonia. However, they are not allowed to own land.


· Foreign investors may withdraw their investment at any moment, in the same form as it had been invested.


· There are certain tax and tariff benefits for foreign investors.


· Foreign investors have a right to fully manage or participate in management of a company.


· Foreign investors may transfer their rights deriving from the contract to other domestic or foreign investors. (Kikerkova 18, pp.10-106).


FDI in Albania


The cumulative amount of FDI in Albania has reached US$ 458 million for the period 1-1. The top investors are Italy (about US$ 00 million, 600 companies) and Greece (about US$ 100 million, 00 companies). Among the top investors are Alba Eureka, Kuhne & Nagel, Wurth, and Siemens. Of the total number of joint ventures in Albania, 5% are set up with Italian capital, 7% with Greek capital and the remainder by German, American Austrian, French, British, Turkish, Kuwaiti etc. The fact that 80% of foreign or joint venture enterprises are Italian or Greek indicates that foreign direct investments in Albania, unlike other countries of Central and Eastern Europe, are of a vicinity investment character. Italian capital holds the lion’s share and is mainly concentrated in Western areas of Albania, particularly in towns like Tirana, Durres, Elbasan, Lushnje, Shkoder, Vlore, etc. On the other hand, the Greek direct investments are concentrated mainly in the southern and southeastern part of Albania, in towns like Korca, Gjirokastra, Delvina, and Saranda.


Table Cumulative amount of FDI in Albania for the period 1­1 (in mln. dollars)


1 1 14 15 16 17 18 1


FDI per year 0 58 5. 70 0 47.5 45 4


Cumulative FDI 0 78 11 00. 0. 8.4 8.4 46.4


Source Bank of Albania, 1.


From the point of view of economic activities, the main part of the FDI in Albania are concentrated in tourism, light industry, food and agriculture, and construction (see Table 5). With regard to the amount of FDI during the period of transition, it is obvious that the highest FDI flows are recorded for the period 14­16. After that year, the amount of FDI has been decreasing. This is mostly due to the 17 insurgency crisis in Albania that followed the collapse of the pyramidal saving schemes , as well as the subsequent political and war tensions in the FR Yugoslavia and the region as a whole (Kosovo crisis).


Table 4 Foreign investment in Albania by sectors


Sector Joint venture Wholly owned foreign companies Total %


Agriculture 6 7 1.6


Transport 64 48 11 4.6


Construction 71 5 14 5.1


Services 77 67 144 5.5


Industry 1 415 17.1


Trade 1,00 5 1,54 68.80


Total 1,5 80 ,4 100.00


Source Investment Guide for Southeast Europe, Bulgaria Economic Forum, Sofia, September, 000, p. 18.


Government institution in the field of foreign investment in Albania is Albanian Economic Development Agency (AEDA). That is a government body established in August 18. Its function is to implement the government policy aimed at increasing investments and exports.


The most important law in the field of FDI is the Albanian Law in Foreign Investments (Law 7764, November 14). It aims to ensure a favorable investment climate for foreign investors in Albania. National treatment is extended to foreign investors. Under the previous law, the investment conditions for foreigners are no less favorable than for the local investors. For instance, foreign investments and ownership are permitted in all sectors, and there are no limitations on the percentage share of foreign participation in companies. What is more important, foreign investment may not be expropriated, nationalized or be subjected to any other equivalent measure, and foreign investors have the right to expatriate profits and any article related to investment.


Table 5 Structure of FDI in Albania by economic activities (in %)


Activity Share in %


Tourism 4


Light industry 0


Food and agriculture 18


Construction 15


Transportation 6


Others 7


Total 100


Source ACFIP (Albanian Center for Foreign Direct Investments Promotion) investigations, 16.


FDI in Bulgaria


The EU member countries are the biggest investors in Bulgaria with a 5% share. The largest investors are Germany (US$ 45.87 mil.), Belgium (US$ 7.08 mil.), and the Netherlands (US$ 165.6 mil.). Other big investors include Cyprus (US$ 40.7 mil.), USA (US$ 18.41 mil.), Russia (US$ 15.4 mil.). Turkey is also a big investor with US$ 105.1 mil., and Greece with 86.8 US$ mil. It is interesting to note that Korea (US$ 50.6 mil.) also ranks among the top investors in Bulgaria (see Table 6).





Table 6 FDI in Bulgaria by countries of origin (in mln. dollars)


Countries of FDI Origin Total FDI Flows %Share of Total FDI FDI Flows 18-14 FDI Flows 15-1


Germany 45.87 15. 168.17 57.7


Belgium 7.08 1.4 0.44 7.64


Cyprus 4.7 8.8 1.1 47.46


USA 18.41 7.1 6.64 171.77


The Netherlands 165.6 5.6 8.5 17.16


UK 157.86 5.68 14.1 14.67


Russia 15.4 5.54 . 150.01


Austria 14. 4.5 8.71 6.


Greece 86.8 .1 8. 78.67


France 8.8 .8 4.41 78.


Total 17.6


total FDI for the period 1-1 is USD ,778.0 million


The top investors include Solvay (Belgium), Union Miniere (Belgium), Lukoil Petrol (Russia), Shell Overseas (UK), Heidelberger Zement (Germany), METRO (Germany), Eaststarch (Netherlands), Willi Betz (Germany, Spain), Knauf (Austria), and Daewoo Corporation (Korea).


In the case of Bulgaria it is obvious that the FDI are concentrated mainly in the industry, trade, finance, and tourism (see table 6). From the point of view of our research what is more surprising is the fact that to the Greek FDI goes only a small part of the total FDI in Bulgaria (.1%, see Table 8). For instance, in the industry only .7% are Greek FDI, in the trade this share is .04%, and in the finance, there is a similar situation, .06%. It would be interesting to see what trends and consequences could be expected in regard to cross­border cooperation in the future, bearing in mind these data.


Table 7 Foreign investment by sectors (1-1)


Sector Percentage share in the total foreign investment


Industry 54.


Agriculture 0.


Construction 1.0


Telecom. 1.


Transport .6


Tourism 5.1


Finance 11.7


Trade 1.5


Others .7


Source Investment Guide for Southeast Europe, Bulgaria Economic Forum, Sofia, September, 000, p. 40


As elsewhere in the region, capital markets in Bulgaria have played a negligible role as a mechanism for attracting foreign investment (see table ). Foreign investors have preferred to take part in some privatization deals of formerly state owned enterprises, and to bring capital into the country in variety of other forms, such as joint ventures, greenfield investment, additional foreign investment in companies with foreign participation, reinvested earnings, credit by direct investor, etc.


Bulgarian Foreign Investment Agency (BFIA) was established in April 15 as a one-stop shop governmental body for the foreign investors. It is under the authority of the Council of Ministers, and is responsible for coordination of the state institutions’ activities in this field. The Bulgarian Constitution and the Law on Foreign Investment stipulate that foreign investors are entitled to perform activities in the country under the same conditions applicable to domestic investors.


Table 8 FDI in Bulgaria by sectors of economic activity, 1 (in mil. dollars)


Sectors of Economic Activity Total DFI Greek FDI Other EU FDI Non EU FDI Stock


Industry 1505.6 55.55


Trade 54.6 11.07


Finance 4.04 6.6


Tourism 14.84 .05


Transport 7.61 0.11


Telecommunications 51.8 6.1


Construction 6.47 1.1


Agriculture 8.4 0.06


Other 10.05 .05


Total (as of 1) 778.04 86.8 1557.68 11.47


Source Investment Guide for Southeast Europe, Bulgaria Economic Forum, Sofia, September, 000, p. 40.


Table Foreign investment by years and by type of investment (in million dollars)


1 1 14 15 16 17 18 1 Total


Privatisation .0 14. 6.0 76.4 41.4 155.8 05.7 1,141.5


Capital market .7 64. 5.1 147.0


Other 4.4 80.4 76.7 16.6 180.0 185.1 400.0 447. 1,540.5


Total 4.4 10.4 10. 16.6 56.4 66. 60.0 806.1 ,8.0


Source Investment Guide for Southeast Europe, Bulgaria Economic Forum, Sofia, September, 000, p. 40.


Note Other � Joint ventures, greenfield investment, additional foreign investment in companies with foreign participation, reinvested earnings, credit by direct investor.


An important setback to investor confidence in Bulgaria occurred in August 000. Two years since the start of the privatization, the government announced that the negotiations to sell 51% of the state-owned operator, Bulgarian Telecommunications Company (BTC), to a consortium of KPN Telecom and OTE had failed. A new tender for the sale has been planned. Completion of the privatization is now scheduled for 001 (EBRD 000, p. 147).


FDI as an Ingredient for Acceleration of the Balkan Countries’ Economic Development and Cross­Border Cooperation � Some Characteristics of the Greek FDI in the Balkan Countries


FDI’s are the main ingredient in the transition countries’ efforts for accelerated economic development, the most secure recipe for bridging the gap in the levels of economic and social development. The process of convergence in the GDP levels among the countries in the region, particularly to those enjoyed by Greece, will, of course, greatly depend on the utilization of these countries’ potentials in the process of their approximation towards the EU standards. All three countries stand at different starting positions at present in their status with the EU structures.


One of the major observations is the regional (territorial) distribution of FDI, particularly Greek FDI, in the neighboring countries. The data show that while in the case of FYR of Macedonia there is not a clear pattern, which means that the whole territory seems to be of equal importance to Greek entrepreneurs, in the case of Albania and Bulgaria Greek firms are more inclined to follow an already established pattern. This is most obvious in the case of Albania, where the Greek FDI have been concentrated in the southern part of the country, most notably in the regions close to the border with Greece. The same, although in a less strict sense, applies to Bulgaria . The explanation for this pattern, as well as the consequences of territorial distribution of FDI for cross-border cooperation and overcoming isolation in the region starts with geography � FYR of Macedonia is the smallest in the group with Albania and Bulgaria. Also, having in mind traditional linkages between Greece and Serbia in the past, the Greeks have kept their eyes open and pointed to the FYR of Macedonian northern neighbor, in expectation of an end to international isolation of FR Yugoslavia after an eventual democratic change in the country. Our expectations to obtain a clearer answer to this hypothesis were fulfilled by the responses of the interviewed big Greek firms in FYR of Macedonia � all the firms in the sample declared that they had plans to expand to the FR Yugoslavia market once the situation normalized, as it did after the fall of the Milosevic regime late last year .


The attitude of the general public in the recipient countries towards Greek FDI has been mostly favorable. This particularly applies to the case of FYR of Macedonia. This was supported by a recent survey among around 100 students studying at various departments at the School of Economics, Sts. Cyril and Methodius University in Skopje, FYR of Macedonia. With permission of the relevant bodies of the University of Thessaly in Volos, upon which initiative this survey was conducted in October 000, the survey results will be cited in the final version of the paper.


As elaborated in the previous section, Greek investment has been highest in Bulgaria compared to FYR of Macedonia and Albania. Greek investors withheld their activities in FYR of Macedonia until 15-16, for political reasons. Political obstacles for investment were lifted after the two countries signed the Interim Agreement for normalization of political relationships in 15.


In a recent paper, Bitzenis (001) has distinguished five time periods for the Greek business presence in Bulgaria since 1. The first period was between 1-14 and was characterized by an urge for obtaining quick and easy profit on the part of the Greek businessmen. These “vendor-traders” supplied the Bulgarian market with food products, clothing and footwear, consumer products in short supply in the country at that time. They imported from Bulgaria some industrial products, such as scrap, sheet-iron and building’s iron. The second period (14-15) was characterized by an entry of significant Greek firms with their own representative offices inside the Bulgarian market. These firms targeted the markets for food products, the durable consumer goods and the services sectors.


The third period covered 16 and 17 and was marked by a relative inactivity by the registered Greek firms. This resulted from the unfavorable macroeconomic situation in Bulgaria, caused by the financial crises the country went through, “which led to high inflation rates, instability, corruption and very limited per capita consumption for the Bulgarian citizens”. (Bitzenis 001, p.5)


The fourth period is the one immediately after macroeconomic stabilization in Bulgaria. The increased economic policies credibility induced the remaining large Greek companies to slowly and cautiously overcome their doubts and enter the Bulgarian market.


In the fifth period (18 and onwards) there is an intense interest of all the big Greek banks to participate in the Bulgarian market through acquisitions. (Eurobank, National Bank of Greece and Commercial Bank of Greece have succeeded while at the same time Pireus Bank and Credit Bank of Greece have established local branches in Bulgaria.)


Obtaining correct figures for the Greek investments in the Balkan region is not an easy job. Figures may vary depending on the sources used. Some authors (Dunning 1) have elaborated on the sources of inaccuracies of the aggregate FDI data. Others report problems of manipulation of data, either because of incompetence or intentionally. Bitzenis (001, p.1) quotes the case of Rover from the UK and the status of its investment in Bulgaria. Namely, Rover withdrew an investment made at the end of 14, almost immediately, but it still appears in the official catalogues for FDI.


Again, according to Bitzenis (001), the Greek investments in Bulgaria are about US$ 670 million, in FR Yugoslavia US$ 450 million, in Romania US$ 50 million and in FYR of Macedonia and Albania not more than US$ 50 million and US$ 170 million respectivly. It is interesting to note that the lion’s share of the Greek FDI outflow in the Balkan region (88%) was made by only ten companies. In the case of Bulgaria, only five companies have invested 85% of the total Greek FDI inflows. However, there are about 000 active Greek companies in the Balkan region.


It seems that Greek entrepreneurs have been predominantly attracted to invest in the Balkan region countries for the following reasons geographical proximity, low labor costs, the lack of foreign competition, cultural closeness with some of them, and the possibility to use some countries (Bulgaria, FYR of Macedonia) as a bridge for further penetration into other neigboring countries’ markets (Bulgaria for CIS markets and FYR of Macedonia for the Yugoslav market).


Conclusions


Balkan countries in transition (Albania, Bulgaria, and FYR of Macedonia) have been by far less successful in attracting FDI compared to more advanced countries in transition from Central Europe (Hungary, Poland, the Czech Republic). Political instability in the region, traditionally low level of intra regional trade (see various papers published by George Petrakos on this), relatively small size of the markets, and high levels of corruption have deterred foreign investors from investing more in the Balkan countries. Bulgaria, compared to Albania and FYR of Macedonia, has attracted by far more FDI, total and per capita. Greek FDI in the selected Balkan countries has played a major role in the economies of these countries. This particularly applies to the FYR of Macedonia, where Greece is the biggest investor, despite some still open issues between the two countries. In the case of FYR of Macedonia, perhaps due to the smaller size of this country in comparison to Albania and Bulgaria, Greek FDI are not concentrated mostly in the border regions. However, this is the case with Albania and Bulgaria. Here, the proximity and low labor costs have played a major role. FYR of Macedonia and Bulgaria are seen by some big Greek firms as a bridge to other markets, such as the FR Yugoslavia and CIS markets, respectively. In general, the attitude towards Greek FDI in the recipient countries has been positive.


References


Bitzenis, A. (001) “The Determinants of FDI in Transition Countries Incentives and Barriers Based on a Questionnaire Research the Case of Bulgaria, 18-000”, paper presented at the International Conference on “Restructuring, Stability and Development in Southeastern Europe, SEED Center, Volos, Greece, 1- June 001, published in the conference proceedings.


Dunning, H.J. (1) Multinational Enterprises and the Global Economy, Addison Wesley Publishers Ltd., UK.


EBRD (000) Transition Report 000. EBRD London.


EBRD (000) Country Investment Profile ­ FYR of FYR of Macedonia. EBRD London.


Kikerkova, I. (18) Stranski direktni investicii vo zemji vo tranzicija (Foreign Direct Investment in the Transition Countries), Ekonomski fakultet, Skopje.


Koja, V. and Prenga, K. (000) “Dinamikata na stranskite investicii vo Albanija” (The dynamics of foreign investment in Albania), Ekonomski razvoj (Economic Development), Skopje.


Statistical Office of the Republic of FYR of Macedonia (1) Statistical Yearbook of the Republic of FYR of Macedonia 1, Skopje.


UNCTAD (000) World Investment Report 1 ­ Foreign Direct Investment and the Challenge of Development, New York and Geneva.


UNCTAD (001) World Investment Report 000 ­ Cross­border Mergers and Acquisitions and Development, New York and Geneva.





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