Energy security is among the key issues in political agendas worldwide. Developed and developing economies, in fact, are increasingly concerned to secure constant flows of energy for fuelling their economic and social development. Despite there is no universally accepted definition of energy security, there is widespread consensus on that it relies, inter alia, on appropriate international instruments for promoting and, more important, protecting cross-border energy investments. Energy investments, effectively, are capital-intensive, long-lasting and highly-risky. This is particularly so as far as foreign energy investments are concerned. Investors investing in foreign Countries, in fact, are particularly exposed to non-commercial risks such as nationalizations, expropriations or discriminatory treatments. In order to carry out their investments and, more important, to protect them, therefore, said investors require proper guarantees on that their activities will not be undermined by unjustified or unreasonable measures which may be put into place by the host States. Of paramount importance, to this respect, is the prevision of impartial mechanisms for the settlement of disputes that may arise between foreign investors and host States concerning the activities carried out by the former in the territory of the latter. Indeed, a response to this need is represented by international arbitration, by which possible conflicts are settled by arbitral tribunals external to the host States' judicial systems. In the course of time, international law has provided for numerous instruments by which promoting and protecting foreign energy investments. The Energy Charter Treaty (ECT or "Treaty") is the most relevant instrument to this regard, considering its geographical scope and the matters treated therein. As such, it represents the main attempt to provide for global rules on energy security. The ECT, in fact, encourages the energy cooperation between its around fifty Contracting Parties in a wide range of sectors, such as trade, transit, environmental protection and investment promotion and protection. As regards investment promotion and protection, the ECT provides for a regime which is unique at the international level. It safeguards energy investments by providing, in particular, for fair and equitable treatment, most constant protection and security, no discrimination and most favoured nation treatment standards. A major feature of the ECT investment regime is the prevision of an investor-State dispute settlement (ISDS) mechanism, laid down in Art. 26, by which investors can bring claims before international arbitral tribunals for alleged breaches of ECT investment commitments which undermine the investments made by them in host Countries. Since the first dispute was filed on April 2001, namely AES Summit Generation Limited v. Republic of Hungary (ICSID Case No. ARB/01/4), nearly a hundred and seventeen arbitral proceedings have been incepted so far, eighty of which – amounting to about the 70% of all cases – have been commenced during the last six years. A state of things suggesting how the Treaty's ISDS regime, after a slow start, has become an important tool by which energy investors can protect their investments. Notwithstanding such a remarkable achievement, however, there are many shortcomings that prevent the ECT from becoming the reference legal framework for international energy security. To this respect, it is worth mentioning the non-participation of major economies such as the USA and China and the decision of Russia to not ratify the Treaty after having applied it provisionally until 2009. In addition, it is worth highlighting also the decision of Italy to withdraw – first and unique case – starting from 1 January 2016. The withdrawal took effect during a turning point of the ECT: by that time, the ISDS mechanism had just started to be fully-tested by investors, especially within the EU context; in addition, the Treaty was experiencing a process of relaunching and updating which culminated with the adoption of the International Energy Charter, a political declaration aimed at bringing the ECT in line with current challenges in energy security. While Italy's withdrawal undisputedly undermined the authority of the Treaty, it had the merit of reviving the doctrinal debate on unsettled and not entirely explored issues concerning its application, especially within the EU context. To this respect, the issues posed by the mixed accession of the EU and its Member States to the ECT stand out. For long, the doctrine has pointed out many interpretative concerns about to what extent the Treaty, in particular the investment regime and, more specifically, its ISDS mechanism, applies to relations between EU Member States and between them and the EU. Following the Italian withdrawal, such issues have gained new momentum and are likely to be explored more in depth in the foreseeable future. This thesis examines three broad subjects: the attempt of the ECT to become the reference set of rules on international energy security; the many issues posed by the mixed accession of the EU and its Member States to it; the implications of the Italian withdrawal in terms of investment promotion and protection. Accordingly, this work consists of three chapters. Chapter I provides for an overview of the ECT as the reference set of rules on international energy security. To this respect, it describes the main steps of the Energy Charter process, i.e. the process that, starting with the European Energy Charter of 1991 and arriving to the International Energy Charter of 2015, led to the adoption of the ECT on 1994 and its entering into force on 1998. Moreover, the chapter describes the main fields of energy cooperation dealt with by the ECT, markedly trade, transit and, more important, investment promotion and protection. The purpose of the chapter is to point out the importance of the Treaty for the promotion and protection of energy investments and the complex issues that prevent its vocation to become the reference international framework for global energy security. Chapter II focuses on the complex procedural issues that the mixed accession of the EU and its Member States poses with respect to the ECT ISDS mechanism. After having examined the status of the EU as a REIO party to the ECT, the qualification of the latter as a "mixed agreement" under EU law and the division of competences within the EU on the matters dealt with by it, the chapter focuses on the following issues: questions of international responsibility of the EU and its Member States for the performance and for breaches of ECT investment provisions; the applicability of the ECT investment regime and, more specifically, its ISDS mechanism, to EU internal relations; the relevance and, more specifically, the applicability of EU law in investor-State disputes filed under Art. 26; the relationship between EU law and the ECT. Chapter III deals, in the first place, with Italy's withdrawal from the ECT. More precisely, the chapter investigates the reasons of the withdrawal and its consequences in terms of investment promotion and protection and on the future of the Energy Charter process. In the second place, the chapter examines the disputes filed against the Italian State under Art. 26. To this regard, after having taken into account the wider context of the ECT ISDS regime and the reasons of the sudden raise of disputes against Italy, it focuses on two cases, namely Blusun S.A., Jean-Pierre Lecorcier and Michael Stein v. Italian Republic (ICSID Case No. ARB/14/3) and Eskosol S.p.A. in liquidazione v. Italian Republic (ICSID Case No. ARB/15/50). Both cases are still pending. As to earlier, which is the first case filed against Italy under Art. 26 ECT, an award has been rendered by the tribunal established to settle the dispute. Currently, a proceeding for annulment of the award is underway. Regarding the latter, a decision on an application under Rule 41(5) of the ICSID Rules of Procedures for Arbitration Proceedings has been rendered by the tribunal constituted to settle the controversy. Finally, the work is closed by some conclusive remarks with respect to the matters treated therein. As it will be seen, the issues discussed in this thesis have found – and indeed are increasingly founding – much attention in academic and specialised literature, since they touch very sensitive questions of international, EU and national law. Said issues, however, are far from being comprehensively investigated by the doctrine. As things stand, in the course of the analysis, the state of the art of the doctrinal debate will be taken into account first. Then, the issues at hand will be examined in light of relevant ECT case law. To this respect, some of the awards and decisions rendered by ECT arbitral tribunals – notably those established to settle disputes involving EU Member States and investors therefrom – will be examined with particular attention. By following this methodology, it will be possible to appreciate how said issues emerge or are likely to emerge in investment disputes and are or are likely to be dealt with by ECT arbitral tribunals. In other words, it will be possible to appreciate how said issues affect, in practice, the ECT and process. The aim of the present investigation is to contribute to the debate on the ECT and process, a debate which has just started, and which is likely to get academics and practitioners busy in the future. To this respect, it must be highlighted that ECT practice, now more than ever, is in a state of constant evolution. As a result, additional food for thought is likely to emerge in the future. Indeed, this work is the result of a research started in February 2015 at the Centre for Climate Change, Energy and Environmental Law of the University of Eastern Finland and completed in Rome on August 2018. In the intervening period, subsequent decisions and awards rendered by ECT arbitral tribunals as well as by the Court of Justice of the EU – namely the Achmea Judgement rendered on March 2018 – shed some light on the issues discussed in this work while at the same time raised new questions and interpretative concerns, with the result that a constant work of adaption has been necessary in order to take into account the latest developments on the matter. Accordingly, this work can be seen as a starting point for addressing the many interpretative issues which affect the ECT and which will assume further complexity as far as new awards and decisions are rendered by ECT arbitral tribunals.
The state-owned enterprise (SOE) landscape has become increasingly diverse. There used to be some relatively well-defined criteria, but with the growing complexity of state participation in the economy, there is no longer a uniform definition, and especially because the definition of a SOE has always been country-specific. SOE reforms can have major positive impacts not only by reducing fiscal risks by decreasing hidden subsidies, direct transfers, and overstaffing, but also by strengthening competition and developing capital markets. SOE reforms in developing countries began in the 1960s because of the poor performance of many of the SOEs. The reform movement sought to strengthen the internal capacity of SOEs. To enrich the discussion about possible avenues for performance-enhancing SOE reforms, this report presents the main principles of good governance of SOEs with references to the Organization for Economic Co-operation and Development (OECD) guidelines on corporate governance of SOEs (OECD 2005). This document is divided into six parts: (1) an effective legal and regulatory framework for SOEs; (2) the state as an owner; (3) equitable treatment of shareholders; (4) relations with stakeholders; (5) transparency and disclosure; and (6) the responsibilities of the boards of SOEs.
Inhaltsangabe: Introduction: This book covers policy proposals and interim contracts, assesses the positions of various Iraqi political actors and examines the potential significance for international foreign policy goals in Iraq. Despite a lack of progress in reaching agreements on the hydro-carbon sector and revenue sharing legislation to set new conditions for the management of the country's significant oil and gas resources, development in Iraq's oil and gas sector is moving forward. The passage of the oil and gas sector framework and revenue sharing legislation will be seen as significant milestones by International governments and International Oil Companies (IOC´s). This would provide evidence of the Iraqi government's dedication to promoting political reconciliation and providing a solid foundation for long term economic development in Iraq. Interim revenue sharing mechanisms have been introduced due to the lack of new legislation. Additionally, both the Federal Government (the Federal Oil Ministry-MoO) and the Kurdistan Regional Government (KRG) (the Regional Ministry of Natural Resources and Energy) have made oil and gas development deals with foreign firms. The MoO is working with existing regulation from the previous political and administrational regime, while the Regional Ministry of Resource and Energy Kurdistan-Iraq has designed its own laws and regulations, which the Federal Government has not yet recognized. There is wide recognition among Iraqis of the importance of oil and gas revenue for the Iraqi economy. Most groups see the need for new legal and policy guidelines for the development of the country's oil and natural gas resources. However, Iraq's Council of Rrepresentatives (parliament) has not yet considered the proposed legislation due to ongoing political discord and general political instability. There are strong differences on key issues between Iraqi critics and supporters of various proposed solutions. These include the appropriate role and powers of federal and regional authorities in regulating oil and gas development; the conditions and degree of potential foreign participation in the oil and gas sectors; and proposed formulas and mechanisms for equitably sharing oil and gas revenue. Simultaneously, there are strong disagreements on related discussions about the administrative status of the city of Kirkuk and proposed amendments to articles of Iraq's constitution that outline federal and regional oil and gas rights. The U.S. and UK military strategy in Iraq seeks to lay the ground work for an environment in which Iraqis can resolve core political differences in order to ensure national stability and security. However, it is not yet certain whether the proposed oil and gas legislation and ongoing interim efforts to develop Iraq's energy resources will support harmony or create deeper political tension. The United States and its allies face difficult decisions regarding how to work with Iraqis on assorted policy proposals, related constitutional reforms and oil and gas development contracts, and at the same time encouraging their Iraqi counterparts to ensure that the content of proposed laws, amendments and contracts reflect acceptable political compromises. In the 1920s a wide-ranging concession was granted to a consortium of oil companies known as the Turkish Petroleum company and later as the Iraq Petroleum Company. This was the beginning of oil exploration in Iraq. The nationalization of Iraq's oil resources and production was finished by 1975. From 1975 to 2003, oil production and export operations were entirely state operated. However, from the early 1980s until the toppling of Saddam Hussein's government in 2003, the negative effects of war, international sanctions, a shortage of investments and technology and, in many cases, mismanagement caused difficulties for Iraq's hydrocarbon infrastructure. According to the Oil Ministry, Iraq has the third largest proven oil reserves in the world (115 billion barrels). Other estimates of Iraq's potential oil reserves vary. The U.S. Department of Energy's Energy Information Administration notes that current estimates "have not been revised since 2001 and are largely based on 2-D seismic data from nearly three decades ago." In April 2007, oil industry consultants IHS assessed that Iraq's proven and probable reserves tally 116 billion barrels, with a potential additional 100 billion barrels in largely unexplored western areas. The U.S. Geological Survey's median estimate for additional oil reserves in Iraq is around 45 billion barrels. In 2004, Iraq's then Oil Ministry claimed that Iraq had "unconfirmed or potential reserves" of 214 billion barrels. My Reservoir Engineering Estimation is that Iraq's reserves can reach more than 320 bn bbl oil. Approximately 65 percent of Iraq's current proven reserves are located in southern Iraq, with a concentration in the southern most province of Al Basrah. Large proven oil resources have also been found in the northern province of Al Ta´mim near the disputed city of Kirkuk At present, crude oil provides over 90% of Iraq's domestic energy consumption and oil exports produce over 98% of Iraq's government revenue. Due to decreases in global oil prices from their 2008 high and lower oil production, Iraqi leaders revised their 2009 revenue and budget assumptions from a projected surplus to a projected $15.9 billion deficit. According to official U.S. assessments continued fluctuations in oil prices and production could put at risk Iraq's fiscal stability and the sustainability of its reconstruction and development plans. The expansion of oil production to the level of four million barrels per day (m/d) by 2013 and then upward to six m/d by 2017 is called for by current Iraqi plans. Iraqi officials have begun an international bid process for service contracts and renegotiated a series of Saddam era oil production agreements in order to support these goals. These include the transformation of a production sharing agreement into a service contract for Ahdab oil field with China National Petroleum Corporation (CNPC).Inhaltsverzeichnis:Table of contents: 1.Introduction1 2.Iraqi Constitution7 3.Contract Conditions15 4.State-owned Oil Companies27 5.Restructuring of the Iraqi Oil Institutions33 6.Revenue-Sharing and Equalization36 7.Potential Geography50 8.Present Organization and Development56 9.Hydrocarbon Legislation Draft and Contracts59 10.Revenue Sharing65 11.Crisis Management of the Oil Industry in Iraq88 12.U.S. Policy and Issues for Congress99 13.China Investment in the Energy Sector112 14.Conclusion119 15.References127 16.Attachments129Textprobe:Textsample: Revenues and Arrangements: Under current arrangements, the responsibility for the sale and export of Iraq's crude oil is appointed to Iraq's State Oil Marketing Organization (SOMO). The United Nations Security Council resolution (UNSCR) 1483 (and updated under subsequent Security Council resolutions) stipulates that revenue from Iraq's oil exports is to be deposited into an Iraq-controlled account held at the Federal Reserve Bank of New York (FRBNY). Five percent of the funds are put aside for a United Nations Compensation Fund for reparations to the victims of the 1990 Iraqi invasion and occupation of Kuwait. The remaining 95% are deposited into a Development Fund for Iraq (DFI) account at the FRBNY and then transferred to an Iraqi Ministry of Finance account at the Central Bank of Iraq for further distribution to Iraqi government ministries. The terms of UNSCR1546 and subsequent resolutions mandate that the DFI be monitored by an International Advisory and Monitoring Board (IAMB), which provides periodic reports on Iraq's oil export revenue, Iraq's use of its oil revenues, and its oil production practices. According to the IAMB, as of December 31, 2007, $23.43 billion had been disbursed from the United Nations Compensation Fund and Iraq owed $28.95 billion to the Fund. Iraq deposited another $3 billion. According to IAMB estimates in mid 2008 "at the present rate of Iraqi oil sales, it would take approximately 17 years for the compensation award to be fully paid."38 It is likely that this estimate is no longer current due to significant declines in the price of oil in the meantime. The IAMB has not yet announced a corrected date. Under U.N. Security Council Resolution 1859 (December 22, 2008) the IAMB authority ends on December 31, 2009. This refers to a 2009 "transition to successor arrangement" from the DFI and the IAMD to Iraqi-led auditing processes. In October 2006, the Committee of Financial Experts (COFE) was approved by the Iraqi cabinet. Its task is to oversee oil revenue collection and administration. The president of the COFE authorized its activities in April 2007, and it currently is working with the IAMB on audit procedures. The establishment of an audit oversight committee for the DFI and oil export revenues is a structural benchmark under Iraq's Stand-by Arrangement (SBA) with the International Monetary Fund currently satisfied by the extension of the IAMB arrangement and the creation of the COFE. Agreements with members of the Paris club made the approval of the SBA into a necessity.39 The IAMB said in 2009 that Iraq's Committee of Financial Experts "is ready and capable to succeed the IAMB and conduct competent and independent oversight of the DFI." Immunity provisions included in standing UN Security Council resolutions protect Iraqi funds in the DFI from property attachment motions instead of legal judgments rendered against the former Iraqi regime. President Bush extended the U.S. legal protections for the DFI and other Iraqi assets under Executive Order 13303 through May 20, 2009. President Obama prolonged the protections until May 2010.40 Iraq will receive continued support from the United States in its attempts to convince the UN to extend related protections for energy proceeds and the DFI under Article 26 of the U.S.-Iraq security agreement. Oversight of Oil Production and Revenue Management Between its creation in May 2003 until December 31, 2007, the DFI received over $121.7 billion in oil proceeds and other deposits. According to audit estimates, an additional $58.8 billion in net export proceeds were deposited in 2008. Intermittent audits done in conjunction with the IAMB have routinely found serious discrepancies in oil production and export figures and DFI account receipt and distribution amounts. The absence of reliable output measurements for oil has been a critical and ongoing problem. During the Coalition Provisional Authority (CPA) period, there was no metering equipment available for oil production and exports. According to a May 2007 GAO report, there have been no improvements in reliable metering in Iraq's oil fields. This has contributed to the shortage of reliable data on Iraq's oil production and related revenue.42. In January 2008, an IAMB report claimed that Iraq's Ministry of Oil "does not have in place a full operational loading and metering system at production and loading points in order to determine produced and loaded quantities [of oil] accurately." An IAMB report in June 2008 established that "some metering has been installed at oil terminals, but there continues to be no metering in the oil fields." In April 2009, the IAMB stated that "much remains to be done before a fully operational control and measurement system over the oil production, distribution and export sales, can be comprehensively implemented," and added that, "Indications from the Ministry of Oil point to implementation by 2011 at the earliest." Financial audits completed by December 2005 established that "no comprehensive financial and internal controls policies and procedures manuals" existed in the Iraqi ministries that were spending oil export proceeds delivered through the DFI system. On June 12, 2007, the IAMB commented on its 2006 findings, noting that the audits proved "the overall financial system of controls is deficient." The audits showed there was "no overall comprehensive system of controls over oil revenues," and that "basic administrative procedures" were "outdated and ineffective." These conditions may have contributed to widespread corruption. Several Iraqi ministries spending distributed oil export revenue have been accused of corruption which is often associated with weak contracting and cash management policies. The Iraqi government's attempts to respond to IAMB recommendations were noticed by the IAMB's preliminary findings for 2007, but also noted that "the overall financial system of controls in place in the spending ministries, the U.S. agencies in respect of outstanding commitments using DFI resources, and the Iraqi administration of DFI resources remain deficient." The 2008 preliminary assessment, released in April 2009, concluded that "much remains to be done before a sound financial management system is operating effectively in Iraq".
Universidad Nacional Agraria La Molina. Escuela de Posgrado. Maestría en Ecología Aplicada ; Uno de los problemas que enfrenta Espinar es la presencia de conflictos relacionados con la actividad expansiva de la gran minería. El objetivo de este estudio fue conocer y determinar las causas-implicancias y las relaciones de los conflictos socio-ambientales de la gran minería en Espinar (1980- 2013). Para ello, primero se recopiló información sobre la historia de la minería, se identificó y se caracterizó los ciclos mediante la metodología de análisis de ecología política y los ciclos adaptativos. Luego se elaboró modelos cualitativos de evolución histórica que permitió identificar a los principales actores y factores en los diferentes momentos. Finalmente, se realizó una encuesta que permitió conocer la percepción ambiental de la sociedad civil. Se caracterizó los momentos Ω (omega) o colapso de cada ciclo mediante el análisis de los seis capitales, (stocks que un sistema tiene, tales como el natural, económico, humano, social, político y físico). Se determinó- desde la llegada de Minero Perú que dio inicio a las sucesivas exploraciones y explotación por socavón hasta los años 80s con mediana minería; y la explotación a tajo abierto por la gran minería hasta la actualidad. Se considera una etapa, donde presenta un ciclo parcial y dos miniciclos. El ciclo parcial se encuentra en estado de madurez, que comprende miniciclos: 1-Explotación por EMETINSA S.A, hasta su privatización. 1994. 2- Explotación por Magma Copper Company hasta la actualidad. 2003. El análisis indica que a finales de la etapa 0 el capital natural (Kn) y el económico (Ke) están cayendo, tenemos, por un lado el precio del cobre estaba en decadencia a nivel internacional, pero al mismo tiempo muchos mineros locales se dedicaban a la minería artesanal, preferentemente de oro, en tanto para explotar el cobre era difícil por la compleja organización geológica de la mina. El capital social (Ks), político (Kp) y humano (Kh) se mantienen constantes y el capital físico (Kf) tiende a bajar ligeramente previo a la apertura de los tajos. Para el inicio de la gran minería a tajo abierto, diferentes variables entran en fase colapso de manera conjunta o simultanea que indica que el sistema completo entra en la fase omega () de la etapa I. El Kn (↓) se encontraba en descenso a causa del precio internacional del cobre. La infraestructura era deficiente inicialmente ya que no se contaba con energía eléctrica y carreteras para el traslado del mineral a mayor escala, los cuales no han sido fáciles de encaminar por el comportamiento nada favorable del precio de metales, haciendo que el Ke (↓) disminuya. El Kp (↓) decrece, porque muchas decisiones políticas para la explotación no se hizo participativamente y con el desbroce del suelo han perdido la infraestructura, lo que significó el deterioro de los modos de vida ancestrales, costumbres, sus relaciones personales, así como la introducción al sistema de moldes mentales exógenos, haciendo que también el Kf (↓) disminuya. El Ks (↓) tenemos por un lado las expropiaciones forzadas de tierras ganaderas y agrícolas para el desbroce y apertura del tajo, el desplazamiento de las poblaciones que ha generado otros problemas socioculturales como la migración campo-ciudad, ruptura de las familias, entre otros. En tanto el Kh se mantiene constante, aunque mostró una leve caída al inicio de esta Etapa. En miniciclo 1. El Ks (↓) decrece, debido a la reducción drástica de trabajadores y el desvanecimiento de la organización minera. El Kn y Ke (↑) fueron favorables dado que el precio internacional del cobre desde 1993 se eleva notoriamente y la mina inicia explotación polimetálica y diversifica su producción. En tanto el Kp (→) se mantiene igual, debido a la "política cerrada" del gobierno central. El Kh (→) se mantiene igual, aunque se hace visible los primeros efectos negativos en la naturaleza, los primeros indicios de contaminación se evidencian a partir de varios estudios ambientales. En miniciclo 2. El Ks () mostró una leve mejora por los acuerdos alcanzados entre la sociedad civil y la minera. El Kp (↑) ha incrementado debido a la conectividad, participación y propuesta que ha desarrollado el gobierno local y la sociedad civil con otras entidades internacionales. Con el pasar del tiempo el Kn () se ha ido reduciendo en términos de acceso a recursos naturales y calidad, focalizadas en las poblaciones adyacentes y el precio del cobre se fue incrementando, además del ingreso per cápita y IDH por lo que el Ke (↑). Los actores más influentes en el ciclo parcial y miniciclos: inicialmente los mineros locales y Minero Perú, gobierno central, poblaciones expropiadas, EMETINSA S. A. y en la actualidad las poblaciones adyacentes a la mina, gobierno central y local, CooperAcción, sociedad civil, minera y Fundación Tintaya. Entre los factores el precio del cobre y la Ley N° 18880 (nacionalización). R.D. N°41/81/EM/DGM (expropiación), D.L. N° 674 y 708 (privatización) y demanda por metales. Las escalas de influencia de los actores van desde lo global hacia lo local. La minera incide en algunas variables del sistema como la migración, gobernanza, la intensificación y los impactos ambientales. La causa del conflicto es por afectación del recurso agua y suelo que ha llevado al deterioro y degradación socio-ambiental de poblaciones adyacentes. En cuanto a la percepción existe contaminación y afectación del agua y suelo, la calidad de la salud es mala. La mina no es percibida como sector que genere empleo, a pesar que afirman que si aporta al desarrollo y por el cuidado del ambiente consideran a las ONG. Se sugiere hacer análisis con los ciclos adaptativos que permiten organizar información y describir la dinámica del sistema, se recomienda la institucionalización de una instancia permanente de diálogo y desarrollo orientados a lograr efectivas transformaciones a los conflictos y promover el Consentimiento, para la toma de decisiones que involucran el uso de los recursos naturales. ; One of the issues that Espinar faces is the presence of conflicts due to the expanding activity of the 'Great Mining'. The objective of this study was to understand and determine the cause-effects and the relationships of the socioenvironmental struggles of the 'Great Mining' in Espinar (1980-2013). In order to accomplish this, compiling information on the history of mining was done first, which identified and characterized cycles by the methodology of analysis of political ecology and adaptive cycles. Afterwards, qualitative models of historical evolution were produced, which allowed identification of the main actors and factors at different moments. Lastly, a survey was carried out, which aided to understand the environmental perception of the civil society. Ω (omega) moments or collapse of each cycle were characterized through analyzing the six capitals (natural, economic, human, social, political and physical). The arrival of Minero Perú gave rise to subsequent explorations and exploitations by tunnel until the 1980s with a medium amount of mining, as well as open-pit mines to present day. A single stage is divided into a partial cycle and two mini-cycles. The partial cycle is in a state of maturity, and it comprises mini-cycles: exploitation by EMETINSA S.A, until their privatization in 1994, and exploitation by Magma Copper Company until 2003. The analysis indicates that at the end of stage 0, the natural capital (Kn) and the economic one (Ke) are falling. On one hand, we have the price of the copper in decadence on an international level, and on the other hand, many local miners were devoted to handmade mining, preferably of gold. As for copper, it was difficult to be exploited due to the complex geologic organization of the mine. The social capital (Ks), the political capital (Kp) and the human capital (Kh) remain steady, whereas the physical capital (Kf) tends to fall a little, prior to the opening of the pits. To begin 'open cut' mining, a number of variables enter, jointly or simultaneously, a phase of collapse, thereby indicating that the whole system is entering the omega phase (Ω) of stage I. Kn (↓) declines because of the international price of copper. Originally, the infrastructure was faulty since it lacked electric power and highways to transfer minerals on a larger scale, which were difficult to guide due to the unfavorable behavior of the price of metals, making Ke (↓) diminish. Kp (↓) fell because many political decisions regarding exploitation had not been made, and with the clearing of the floor they lost their infrastructure, which caused the deterioration of ancestral ways of life, customs, personal relationships, as well as the introduction of mental exogenous molds to the system, causing a decline in Kf (↓). Ks (↓) had the forced expropriations of cattle and agricultural lands to clear and open the pit, plus the displacement of the populations, which generated further socio-cultural issues, such as country-city migration, breakdown of families, among others. Although Kh remained steady, it showed a slight fall at the beginning of this stage. In mini-cycle 1, Ks (↓) fell due to the drastic reduction of workforce and the dissipation of the mining organization. Kn and Ke (↑) were favorable due to the evident rise of the international price of copper since 1993, as well as the polymetallic mining exploitation, and a diversification of its production. Kp (→) remains the same, due to the central government's 'closed policy'. Kh (→) remains the same too, although its first negative effects on the environment become clear; the first indications of contamination are evidenced primarily from several environmental studies. In minicycle 2, Ks (↑) showed a slight improvement because of the agreements reached between the civil society and the mining one. Kp (↑) increased due to the connectivity, participation and proposal developed by the local government and the civil society with other international entities. Over time, Kn (↓) has been declining in terms of access to natural resources and quality, focused on the adjacent populations and the rising price of copper; the per capita income and HDI for Ke (↑) has been increasing too. Initially, the most influential actors in the partial cycle and mini-cycles were the local miners and Minero Perú, the central government, a number of expropriated populations, and EMETINSA S.A.; however, the adjacent populations to the mine, as well as the central and local government, CooperAcción, the civil society, the mine and Fundación Tintaya are currently the most influential ones. The price of copper, Law N° 18880 (nationalization), Royal Legislative Decree N° 41/81/ME/Municipal Decree (expropriation), Legislative Decree N° 674 and 708 (privatization), and the demand for metals have been major influencers, too. The influence scales of the actors reach from a global standpoint to a local one. The mining has an impact on some variables in the system, such as migration, governance, escalation, and environmental impacts. The conflict was due to the degradation of the water and soil resources, which led to socio-environmental degradation of adjacent populations. Such resources have been contaminated and degraded, and so has the quality of people's health. The mining sector is not perceived as an employment generator, despite it is claimed to contribute to the development and the sustainability of the environment (NGOs). It is suggested to conduct an analysis with adaptive cycles in order to organize the data and describe the dynamics of the system. It is also recommended to institutionalize a permanent dialogue and have a goal-oriented development in order to effectively transform the conflicts and promote individual consent for better decisions that affect our natural resources. ; Tesis
Although keeping bank supervision independent from macroprudential supervision may ensure more checks and balances, placing bank supervision in the central bank could exploit synergies with macroprudential supervision. This paper studies whether placing microprudential supervision of banks, typically the systemic part of the financial system, under the same roof as financial stability policy, typically entrusted to the central bank, can improve financial stability. Specifically, the paper analyzes whether having bank supervision in the central bank mitigated the likelihood of banking crises during 2007–12. The analysis conditions on crisis indicators commonly found in the early-warning models of banking crises, the quality of microprudential supervision, and the quality of macroprudential supervision. The authors find that countries with deeper financial markets and those undergoing rapid financial deepening can better foster financial stability when they put bank supervision in the central bank.
This study analyzes the governance framework of the business portfolio of Mauritanian institutions and government agencies and offers avenues for reform. The report begins with an overview of the scope of work and performance of the portfolio mentioned using the term Para-Statal sector and identifies the main challenges represented by this sector. It then analyzes the governance framework of Para-statal sector of Mauritania through comparative references from the guidelines of the OECD. The diagnosis includes an analysis of the legal framework, the supervisory function, risk monitoring budget and performance in terms of delivery of services, advice to administration, transparency and dissemination of information. The report closes with a detailed and sequenced action plan compiled from observations in the diagnosis and offers a series of suggestions for appropriate reforms to the institutional context of Mauritania. The action plan focuses primarily on strengthening the monitoring of risk of the budget and proposes ways of sequenced reforms taking into account both international examples and the Mauritanian context.
Pierwszy globalny konflikt międzynarodowy w XX wieku doprowadził do rozbioru Turcji. Nowy układ sił usankcjonowany został wprowadzeniem systemu mandatowego będącego w rzeczywistości jedynie zawoalowaną formą kolonialnego charakteru zaboru arabskiej części tego państwa. Porozumienia między Wielką Brytanią i Francją dotyczące podziału stref wpływów na tym obszarze powierzało pieczę nad Mezopotamią władzom w Londynie. Umowa otwierała drogę do powstania na tym terytorium odrębnego państwa. Powołana przez Wielką Brytanię do życia monarchia iracka o powierzchni o 1/3 większej od obszaru dzisiejszej Polski była całkowicie sztucznym tworem politycznym, niewydzielonym tradycją historyczną konglomeratem etniczno–wyznaniowym, stanowiącym poza okręgami północnymi wykrojony z świata arabskiego fragment mający jedynie czytelną, opartą w przybliżeniu na kryterium narodowościowym granicę na wschodzie. Protektorzy i polityczni budowniczowie tego quasi–państwa, desygnując na tron króla Fajsala, ustanawiając powolne rządy i sterując procesem legislacyjnym, zapewnili tu sobie niemal nieograniczone wpływy . Nadzorowali politykę zagraniczną i obronną Iraku, a przede wszystkim tutejsze złoża ropy naftowej. Zmagania zbrojne II wojny światowej wykazały, jak bardzo ważne dla odniesienia sukcesu militarnego było zapewnienie nieograniczonego dostępu do źródeł tego surowca. Międzynarodowa ranga Iraku wyraźnie wzrosła. Zawiadywanie znajdującymi się na jego terytorium zasobami naturalnymi nabrało teraz dodatkowo zupełnie nowego, nie w pełni docenianego dotąd pozaekonomicznego wymiaru. Stały się one bowiem elementem strategicznym. Równie istotne zaczęło być samo położenie geopolityczne tego kraju. Oba te faktory, łącząc się w jedną całość, czyniły Irak niezwykle ważnym państwem bliskowschodnim. Posiadanie dominujących w nim wpływów pozwalało kształtować nie tylko rozmiary produkcji ropy ale przez długie lata ze względu na istniejącą infrastrukturę także cały prowadzony za pośrednictwem rurociągów transfer naftowy do arabskich portów Zatoki Perskiej i Morza Śródziemnego. W konsekwencji Irak pozostawał w ścisłym spektrum zainteresowania światowych mocarstw, a za takie uchodzić będą tu: Wielka Brytania, Stany Zjednoczone, Związek Radziecki oraz przez wzgląd na silne wpływy w świecie arabskim także Francja. Rezultaty agresywnej polityki tych potęg wobec Iraku, całkowicie determinujące sytuację i stan stosunków międzynarodowych w skali makroregionalnej a pośrednio globalnej, z różnych względów nie zostały jednak dotąd opracowane. Podstawowym celem badawczym pracy było zatem ustalenie wpływu, jaki wywierała w analizowanym okresie polityka mocarstw na sytuację wewnętrzną i zewnętrzną Iraku, a także ukazanie konsekwencji zajmowanego wobec tego państwa stanowiska dla stanu istniejących stosunków w obszarze Bliskiego i Środkowego Wschodu oraz globalnych relacji międzynarodowych. ; The analysis of the material confirms a wide range of political actions lead by Great Britain, the United States, and the Soviet Union towards Iraq. The main reasons for such a state of affairs were Iraq's geopolitical location, and rich and easy to develop Iraqi oil fields. It was also the infrastructure enabling transit of home stock to Mediterranean ports and, in prospect, sending oil of Saudi, Kuwaian and Irani origin forward. As a result, in the time of post-war monarchy (1945 – 1958) Iraq was completely deprived of any influence on forming its own internal situation and international position. In the first case, the existence of such a situation was clearly expressed by the court's dependence on Great Britain and personal relationships between the king's family and the members of the government, and local political establishment. A similar evidence of inability to make independent decisions was Iraqi political parties financed by British and American groups of interest. They also manipulated, through the Iraqi offices, the work of both local legislatures and, at the same time, they helped each succeeding Baghdad cabinet in every respect. An equally obvious proof of Iraqi government dependence was their consultations on home affairs with representatives of Downing Street and the White House, as well as British forces stationing in Iraq and American military presence. Much the same should be judged from the fact that the basic branches of economy were under control of companies representing former mandatories and the treaties signed at that time. The external supervision reached even the political underground, which was kept under surveilance and secretely supported by the Soviet Union. Iraq was made a centre of British influence in the region, and was given a crucial role in all preparations to accomplish projects serving to restore British influence in the Middle East, which also shows Iraq's independence in the sphere of political relations. Equally visible symptom of this phenomenon was dubious attitude of Iraqi government during Sues Crisis. It included providing with weapon and fuel for planes taking off British airports to shell Egypt, protection for oil instalation and oil pipelines, planning Syria neutralization in the case it took any offensive actions against Israel – clearly contrasting to attitude of other Arabian countries. We can give the same explanation to Iraqi membership in Baghdad Pact strictly connected with the rest of British plans to get back the domination in the Middle East. The strong influence of western powers, especially Great Britain, on Iraqi government contributed significantly to support of political tension in the Middle East. Returning attempts to accomplish the Fertile Crescent unification under rule of probritish Hashimids favouring monopolization of oil transit towards Mediterranean coast destabilized the situation in Syria, Lebanon and Jordan making even Kuwait an object of potential expansion. These attempts also met a firm counteraction of remaining powers and authorities in Kuwait and Riyadh, which were unfavorable to british-iraqi aspirations. A seroius consequence of subjecting Iraq to strong external pressure, apart from ruinous results for stabilisation, was its destructive influence on the process of political integration of the Arabian world. It efficiently hampered introduction of existing unification ideas, which lay in the interest of each power. It is also worth to pay attention to the consequences of Iraqi membership in Baghdad Pact. Through the influence of western powers it became one of the bases of antirussian military pact by breaking the existing east Arabian neutrality and making it a new front of the Cold War confrontation. The changes in external situation and international Iraq position brought about by the revolution of July 14, 1958, were not only the effect of the Soviet Union's actions. Each power applied a completely different policy towards Iraq. The division lines of existing rivalry for this country were drawn not only along the standing bipolar confrontation border between east and west but first of all within the sphere of this last pole. Great Britain and the United States cooperation was limited to a very small range of issues. Political activity of American administration during presidencies of H. Truman and D. D. Eisenhower in relation to Iraq was directed towards changing the face of things in that country and replacing British interests by American ones. It proved totally inefficient. By destroying the existing balance it contributed significantly to loss of American influence, and, unable fill the empty space, it only prepared the political ground for Soviet penetration in Iraq. The Cremlin supported Arabian aspirations favouring independence. As a result, the western powers were deprived of their previous possibilities to influence this country. The revolution raised Iraqi independence on a new quality status. During the first decade of the republican government (1958 – 1967) the world powers retained their significant influence on Iraq. They interfered into the country's affairs in two ways: through economic relations and through oppositional groups. Both forms of the pressure used turned out to be very effective and forced the local government to take into consideration interests of Great Britain and the Soviet Union when making any decisions important for the country. The strength of this reaction was reflected in both trade deals, and mass riots and demonstrations started by Kurds. As a result not only the country's international position but its internal affairs as well were defined by the policy of the world powers towards Iraq. Pains of Iraqi leaders aimed at weakening the relations which cramped the country's independence were stopped by their deaths. A.K. Kasim was murdered whereas S. A. Arif died in a mysterious plane crash, which shows the complexity of this problem. The main reason which let the world powers influence strongly the Republic of Iraq during the years of 1958 – 1967 were the huge debts of this country in the face of the eastern block, whereas its income – due to the way in which the concession treaties based on proportional share in oil sale were written – came from the western oil consortiums and depended on the level of production. It gave both sides unlimited possibilities of political manipulations. It was only the nationalization of the Iraq's biggest company– Iraq Petroleum Company - on July 1, 1972, and of some of the other oil giants – Mosul Petroleum Company, Standard Oil of New Jersey, Mobil Oil, Gulbekian and a significant part of Royal Dutch shares during the next year – together with steep crude oil price boost and introduction of embargo on its deliveries to western countries by Arabian countries that granted a unique opportunity for the then Iraqi regime to limit radically foreign influence for more than a quarter of a century. Резюме Анализ подтвердил широкий спектр политический действий, предпринимавшихся Великобританией, Соединенными Штатами и Советским Союзом в отношении Ирака. Главной причиной такой ситуации стало геополитическое положение Ирака, богатые, не представляющие трудностей при добыче нефтяные месторождения и инфраструктура, позволяющая транспортировать сырье к портам Средиземного моря, а в перспективе – пересылать нефть из Ирана, Кувейта и Саудовской Аравии. Итак, в период послевоенной монархии (1945–1958) Ирак был полностью лишен возможности оказывать влияние как на ситуацию внутри страны, так и на международное положение. В первом случае это выражалось в зависимости дворцовых кругов от Великобритании и личных связях королевской семьи и членов правительства Ирака c английским политическим истеблишментом. О невозможности самостоятельного принятия решений свидетельствует также финансирование английскими и американскими деловыми кругами иракских парламентских партий, манипуляция с их помощью деятельностью обеих законодательных палат и оказание всесторонней поддержки со стороны западных держав очередным иракским правительствам. Очевидным симптомом зависимости иракских властей были консультации с представителями Великобритании и США относительно внутриполитических проблем, размещение на своей территории английских вооруженных сил и присутствие постоянной американской военной миссии. Подобным же образом нужно, по всей видимости, расценивать и тот факт, что основная отрасль экономики оставалась под контролем компаний, представляющих интересы бывших мандатариев, а также относящееся к тому же времени заключение международных договоров. Внешний контроль простирался даже на политическое подполье, контролируемое и тайно финансируемое Советским Союзом. Значимым для подчиненного положения в сфере международных отношений было выделение Ираку роли центра английского воздействия в регионе и подготовки разнообразных проектов, имеющих целью восстановление влияния этой державы на Ближнем Востоке. Заметным симптомом названного явления стала неоднозначная позиция иракского правительства во время Суэцкого кризиса: снабжение оружием и топливом вылетающих с местных аэродромов для бомбардировки Египта британских самолетов, защита установок и нефтепроводов, планы нейтрализации Сирии в случае, если она вступит в войну против Израиля – все это ярко контрастировало с позицией остальных арабских государств. Подобным образом объясняется и проблема иракского участия в Багдадском Пакте, тесно связанная с британскими намерениями вернуть себе господство на Ближнем Востоке. Сильное влияние западных держав, особенно Великобритании, на иракское правительство способствовало поддержанию политической напряженности в ближневосточном регионе. Постоянные попытки осуществить объединение "Благодатного Полумесяца" под властью пробританской династии Хашимидов, содействовали монополизации транзита нефти к средиземноморскому побережью, дестабилизировали ситуацию в Сирии, Ливане и Иордании, превращая даже Кувейт в объект потенциальной экспансии. Одновременно попытки эти сталкивались с решительным противоборством остальных мировых держав, каирских и риядских властей, не приветствовавших британо-иракские планы. Серьезным последствием того, что Ирак подвергался сильному внешнему давлению, кроме пагубных для региональной стабилизации результатов, было сильное деструктивное влияние на процесс политической интеграции арабского мира. Оно успешно тормозило распространение объединительных концепций, что, как следует подчеркнуть, было выгодно каждой из держав. Необходимо обратить внимание и на последствия иракского участия в Багдадском Пакте: силами западных стран Ирак стал одной из опор антисоветского военного соглашения, нарушив существовавшую до сих пор нейтральность арабского востока и превратив его в новый фронт холодной войны. Перемены во внутренней ситуации и международном положении Ирака, пришедшие с революцией 14 июля 1958 года, не были результатом только лишь эффективных действий Советского Союза, что следует отметить со всей решительностью. Каждая держава осуществляла особую политику в отношении этого ближневосточного государства. Линии раздела влияния проходили не только вдоль существовавшей тогда биполярной конфронтации Восток – Запад, но, прежде всего, внутри самого последнего полюса. Великобритания и Соединенные Штаты сотрудничали только в очень ограниченной сфере вопросов. Дипломатическая деятельность американской администрации президентов Г. Трумэна и Д.Д. Эйзенхауэра по отношению к Ираку, ориентированная на осуществление "смены караула" в этой стране и замещение британских интересов своими собственными, оказалась совершенно безрезультатной. Нарушая установившееся равновесие, она в значительной степени способствовала потере британцами влияния, но, не сумев заполнить образовавшуюся пустоту, лишь приготовила политическую почву для советского проникновения в Ирак. Кремль в нужный момент поддержал стремление арабов к независимости, в результате чего западные державы оказались лишены прежних способов воздействия. Революция вывела иракскую суверенность на качественно новый уровень. В первой декаде республиканского правления (1958–1967) мировые державы продолжали оказывать значительное влияние на ситуацию в стране. Вмешательство во внутренние дела осуществлялось двумя способами: через использование экономических связей и оппозиционных группировок. Обе формы воздействия были весьма эффективны, заставляя местные власти при принятии важных для страны решений учитывать интересы Советского Союза или той же Великобритании. Силу этого воздействия отражали то торговые договора, то массовые беспорядки и демонстрации или курдские восстания. В результате не только международное положение Ирака, но и отношения внутри страны определялись позицией мировых держав. Старания иракских лидеров, направленные на ограничение связывающих самостоятельность страны факторов, обрывались с их смертью: А.К. Касем был убит, а А.С. Ариф погиб в авиакатастрофе, произошедшей при загадочных обстоятельствах, что, по сути, отражает уровень сложности проблемы. Основной причиной, позволяющей мировым державам оказывать сильное влияние на Иракскую Республику в 1958–1967 гг. были огромные задолженности государства восточному блоку, а полученные доходы, из-за формулировок концессионных договоров, опиравшихся на процентное участие в продаже нефти, шли от западных монополий и зависели от размера добычи. Это давало обеим сторонам неограниченные возможности политических манипуляций. Лишь национализация 1 июня 1972 года самого крупного на территории Ирака предприятия Иракской Нефтяной Компании, а через год и других видных представителей отрасли: Мосульской Нефтяной Компании, Standard Oil of New Jersy, Mobil Oil, Gulbelkian и значительной части капитала Royal Dutch при одновременном резком повышении цен на сырье и введении арабскими странами эмбарго на поставки в западные страны предоставило тогдашнему иракскому режиму исключительный шанс, чтобы радикально ограничить внешнее воздействие на более чем четверть века. ; Piotr Kwiatkiewicz
The point of this paper is to emphasize the importance and role of leadership for African growth, development, and poverty reduction. It is also an attempt to project a more objective assessment of leadership issues during the first three to four decades of African independence. Agreeing on shared responsibilities for Africa's failures in its early years will enable all who want to take part in the continent's renewal to focus on the partnership that is now needed to close a sad chapter in Africa's history, and open a new one. The core elements of such a partnership have evolved in the last decade, and this paper argues passionately for the political will, in Africa and outside, for their realization.
In 1928, Utah Construction Company completed its first project outside of the United States with the 110 mile railroad for Southern Pacific of Mexico. Over the next 30 years, UCC continued to work on projects in Mexico including dams, roads, mining, and canals. The collection contains several booklets and correspondence along with approximately 500 photographs. ; 8.5 x 11 in. paper ; ENGLISH TRANSLATION OF ING. LUIS DE LA PEA PORTH'S SPEECH INAUGURA-TING THE NINTH NATIONAL CONVENTION OF THE ASSOCIATION OF MINING, ME-TALLURGICAL AND GEOLOGICAL ENGINEERS OF MEXICO. Preamble by the Press, as published in the Hermosillo Daily ""Imparcial"" De la Pea Porth Demands Unity of Endeavor and Unity of Resources for Mexican Mining. Taking the speaker's stand to expound his concept of the general pa-norama of mining in Mexico, the Deputy-Minister of ""Recursos Natura-les No Renovables', Luis de la Pea Porth, delivered a vibrant mes-sage to more than 1,600 delegates of different entities of Mexico, to whom he delineated the Mining Policy of the present Administration. The official from the Federal Government, demanded the participation of all parties in the difficult task of the resurgance of the mining-metallurgical industry of Mexico and cited concepts of great signifi-cance which are presented during his speech which is published com-pletely as follows: VERBAL TEXT OF ING. LUIS DE LA PEA PORTH'S INAUGURAL ADDRESS TO THE NINTH NATIONAL CONVENTION OF THE ""ASOCIACION DE INGENIEROS DE MINAS, METALURGISTAS Y-GEOLOGOS DE MEXICO"" October 25, 1971 - Hermosillo, Sonora Mr. Governor of the State of Sonora; Mr. President of the Board of Directors of the National Association of Mining, Metallurgical and Geological Engineers of Mexico; Honorable Members of the Presidium; Ladies and gentlemen. It is a great honor for me and one of the greatest satisfactions of my professional life to be present in this ceremony with the most ho-norable representation of Mr. Lic. Luis Echeverra, Constitutional President of the Mexican United States, as well as to transmit to you, on his behalf, a warm greeting and his best wishes for the suc- cess of this Ninth National Convention. Considering the foregoing and knowing that the Asociacin de Ingenie-ros de Minas, Metalurgistas y Gelogos de Mxico, to which I'm proud to belong, includes the majority of Mexican mining technicians and that one of their main objectives is to collaborate with the Govern-ment in the development of the mining activities of the country, I feel it is very appropriate to take advantage of this opportunity to present to you some of the main components of the present mining policy of the Mexican Government. An adequate mining policy, aside from purely technical and economic factors, must consider, very specially, social, cultural, political factors and in some cases aspects of national sovereignity. It is not acceptable, under any circumstance, to believe the thesis that the exploitation of mineral resources with which the Country has been endowed should be developed with exclusively economic objectives, no - 2 - matter how justifiable and apparently favorable they may be. It is indispensable, in our opinion, that this exploitation be developed in such a way that a maximum contribution be made toward the achieve- ment of the highest national objectives. Undoubtedly, one of the fundamental aspects of the mining policy of the Mexican Government during the last years, has been the so-called ""mexicanization of mining"". This process, consisting in the majority participation in Mexican mining enterprises by Mexican capital, be it state or private, is backed in the precepts of Article 27 of the 1917 Constitution, which clearly states that the exploitation and use of the mineral resources will only be able to be developed in the Coun-try, under the protection of concessions given by the Mexican state and that these concessions will be given only to Mexican citizens or Mexican enterprises. I consider it very important to clarify that ""mexicanization"" is not equivalent to nationalization, nor does it constitute in itself, a first step in this direction. On the contrary, we understand mexica-nization to be an alternative between a mining industry in Mexico controlled by foreign interests, separated from the economic life of the country, and a nationalized mining industry, separated from its natural markets and from its most accessible sources of capital and tecnology. Considered in this manner, mexicanization of mining may not be a so-lution thoretically ideal for the difficult dilemma with which we are faced, but we sincerely believe that, within the general frame-work of realities of our national circumstances, as well as interna-tional, it is the best practical solution that, at the moment, we can find for this dilemma. The basic objectives of mexicanization are: a) To ensure that the private interests of mining enterprises be kept, in all cases, subordinate to national interests; b) To achieve a true integration of mining activities with the e-conomic life of the country, and c) To avoid, as much as possible, and without resort to coercive measures, the exit of economic resources from the country, ge-nerated by the exploitation of our mineral resources. It is undoubtable that in the first stages of the mexicanization of mining enterprises that were already in operation, this process, which the President of the Republic himself has claimed a ""national conquest of great importance"", has been successful. Nevertheless, it is necessary to recognize also that, unfortunately, there still exist doubtful ""mexicanizations"" that only obey the let-ter of the Law but not its spirit. Also, facts and negative tenden-cies in mining are occuring which require corrective measures which will perfect and make more real and effective the mexicanization of mining. Among the negative aspects of the present disposition of Mexican mi-ning, we are particularly concerned about the following: 3 a) The insufficient investments presently being made both by the State as well as by private enterprise, in mining exploration and in the development of new mining ventures. b) The weakness of the small and medium mining entities, and the dan-gerous concentration of the national mining production by a small number of large companies. c) The vulnerability of the Mexican mining industry to international prices, to the extent that when prices are unfavorable they not only affect present production, but they have a large impact on future production and impede taking adequate advantage of periods of good prices. d) The abuse in the incorporation of enterprises that, with purely promotional or speculative ends, obtain mineral concessions over large surfaces of land. e) The existance of many inactive mining properties or on which only the minimum legal work is carried out, even though some of them are located in zones with no other natural resources, and in which. zones mining is vital for employment. f) The disequilibrium which exists between the degree of mexicaniza-tion achieved in the productive phase of mining and the scarse progress obtained in other phases, such as the commercial (market- ing) phase and with reference to the utilization of mineral pro-duction, and g) Finally, the precarious situation due to international factors be-yond our control, which affect mining in general, and which ef-fects we are just beginning to feel. The first phase of mexicanization, namely the mexicanization of enter-prises that were already in operation, was almost completed with the mexicanization of Cananea, which event was announced by the President of the Republic on August 27 of this year. With pride we can state that at the present, more than 98% of mining production in Mexico is generated by enterprises in which the majority of share capital is Mexican. Nevertheless, it is appropriate to note that the foregoing fact also implies a great challenge for the future. In other words, we can say that the simple phase, relatively certain and inexpensive to attain, of buying operating enterprises, has ended, and we now enter a much more difficult and expensive stage; namely, to create and organize new enterprises and new mining/metallurgical ventures. This is a phase that requires great technical and administrative know-how and in which there is no room for improvisations or lack of preparation. With reference to mining, the Mexican Government considers that the small, medium, and large enterprises are the parties who are responsa-ble for the principal tasks and work involved, but the Government is also conscious that its promoting function must be intensified by means of its direct participation in enterprises dedicated to the ex-ploration, exploitation, and refining of minerals, as well as to the transformation and marketing of mineral products. It is undoubtable. -4- in our opinion, that the association of the State with private enter-prise has already demonstrated to be a positive factor in the develop-ment of the Mexican mining industry, and that it can be much more so in the future. Another very important aspect of the mining policy of the Government is that which consists in achieving the maximum transformation or in-dustrialization economically possible of the mining products of the country. We consider that, except for some cases in which special circumstances have resulted in unfortunate and prejudicial consequen-ces, Mexico has had considerable success in its objective of reducing the exportation of its raw minerals or concentrates with a low degree of refining. To conciliate and stimulate, as much as possible, the development and the modernization of foundries, refineries and metal industries in Me-xico, is (and we are sure that it will continue to be) a fundamental tenet of the mining policy of the Mexican Government. Another of the basic aspects of the Mexican mining policy is the de-cisive support and encouragement of the existence and development of the small and medium mining enterprise, which has been emphatically ratified on numerous occasions by the President of the Republic him-self. ""We conceive the development of mining in Mexico"", the Presi-dent has said, ""basing it not only on large enterprises, but especially on thousands and thousands of small and medium size mining enterprises and producers"". In addition to the aspects of a social nature, which in themselves would suffice to justify this policy, we consider that there exist also in this respect solid justifications both technical and economic. The particular characteristics which are found in many of our mineral deposits; the low unit value of some of these minerals or great varia-tions in their prices, make their exploitation marginally attractive, or frankly uneconomic for large enterprises. We believe that Mexico, under no circumstances, can afford to waste or ""freeze"" for an indefi-nite period of time, resources that, even without large profits, can be exploited which permit the generation of productive employment to our fellow citizens. Whichever the state of development of a country, it is undoubtable, that one of its most important resources is constituted by the existence and availability of technical and administrative personnel well trained Therefore, another of the important aspects of the Mexican mining policy is to achieve the objective that in these activities, the services of Mexican personnel be used and developed at maximum levels in all fields of mining. Adapting to our case an old Chinese proverb, we could affirm that if we want to have mining for a few years, mexicanization of these mining enterprises actually existent is sufficient, but if we wish to achieve the development of a prosperous mining industry of unlimited duration, we will have to be able, with our own technical and administrative skills to discover new mineral deposits, to develop those which are being discovered, and to create and organize new enterprises and enti-ties to exploit them, new industries that use the minerals that are thusly obtained, and to establish marketing enterprises able to -5- place our mineral products In international markets. During the last few years, and as a result of the combined work of the Government, the Universities, and mining enterprises, the number of students that have enrolled and graduated in the field of Mining Engineering, Metallurgy and Geology in Mexico, has increased notably. It would be sad indeed if, due to conditions, which are undoubtedly of a transitory nature, the Mexican mining industry did not take advantage of the work developed to date and left without employment some of the technicians who egress from our universities. I consider it my duty to specifically mention this, problem, which may become a serious situa-tion next year and for the adequate solution of which I consider indis-pensable, the cooperation and good-will of all mining enterprises working in Mexico, and which will require the decisive intervention of the Asociacin de Ingenieros de Minas, Metalurgistas y Gelogos de Mxico. Another of the basic functions of the Mexican Government with regard to mining, is the colaboration and the publication of basic information such as topographic and geologic maps, statistics, economic studies, etc., and that, within these efforts, attention should be given to the study and the evaluation, not only of large mineral deposits, ame-nable to exploitation on a large scale, but also, particularly to the very numerous small deposits that, within our special circumstances, can give employment and economic independence to many Mexican citizens. Mexico should not, and must not, continue to be a country of great eco-nomic contrasts. The adequate distribution of wealth implies as a first step, a more homogeneous development of the different regions of the Country. Mining, one of whose special characteristics is that it cannot choose its location, as this is predetermined by the loca- tion of mineral deposits, can be an important factor in the develop-ment of zones which do not contain other resources; a great help to di-minish economic regional differences, which in some cases are so drastic and so unjust, similar to economic differences between the di-verse sectors of the population. Due to their nature, minerals are non-renewable resources; in other words, they tend to necessarily diminish. In some cases, and above all, when the mine exploiter lacks the necessary social conscience, and does nothing to aleviate and facilitate the transition when mi-neral reserves are exhausted, serious social problems develop that re-quire solutions, even though they may only be temporary solutions, based on operations subsidized by the State. These operations cause the inefficient use of available capital resources, employment and technology, without, in most cases, adequate solutions being found to the problem. It is also undoubtable that the safety in the workings of the mines and the metallurgic instalations are an important part of our mining policy. The life and health of our miners are factors to which top priority must be given. Honorable Mining Engineers, Metallurgists and Geologists of Mexico: When the directors of the Association invited the President of the -6- Republic to attend the Inauguration of your Ninth Convention, Lic. Echeverra emphasized that economic development always implies the combination of natural resources and human resources and that with regard to raining, Mexico is willing to continue making large invest-ments of patience and money to consolidate and perfect the mexicani-zation of mining in Mexico. It is certain that the ideas that I have taken the liberty to explain regarding the mining policy of the Mexican Government do not include all the various important aspects that one might consider within the scope of this topic. Nevertheless, gentlemen, the dialogue has been initiated on the highest level and it only remains for me to request that you continue it, always having as the fundamental objective, the benefit and the progress of our Country and of our profession. Thank you very much. Ing. Luis de la Pea Porth October 25, 1971 Translation FMGS/ebh
This synthesis paper is based on a review of three countries in West Africa-Burkina Faso, Mali, and Mauritania where state owned enterprises (SOEs) continue to play an important role and Governments have embarked on a number of public sector reforms are intended to have a positive impact on SOEs. SOE governance practices and problems are having strong similarities in all of the countries reviewed. These commonalities can be ascribed to the fact that all of the countries are transitioning from centrally controlled economic and political traditions to more liberal economies and to a more democratic government. All are facing challenges with implementing the legal structures left behind from colonial times. The data that is available shows that wholly-owned and state controlled SOEs under perform. Many are technically insolvent and survive only through government support. Their performance is not only poor in the financial area but also in the provision of needed social services. The country studies link the poor performance of SOEs, in particular wholly-owned SOEs, to their governance practices. Long-lasting reforms are not simply a matter of plugging holes in the legislative or institutional framework. Corporate governance is the result of a complex interplay of law, practice, institutions and culture. Action plans need to take into account incentives and the political, social and cultural context of corporate governance in the country in addition to the legal framework. Indeed, SOE governance is a system and making it work better requires a systems approach. Most reform plans in the past have focused on one or another element of SOE governance, which might explain why many have fallen short of hopes and expectations. Systems approaches, on the other hand, are important in complex organizations (such as SOEs) whose success depends upon the interaction and cooperation of other organizations and institutions. This synthesis paper presents the objectives and the methodology used in carrying out the reviews followed by a discussion of the features and importance of SOEs in each of the countries studied. It then segues into a discussion on the performance of SOEs which is supplemented by case studies of both successful and unsuccessful SOEs and key lessons learned the paper then presents the current Government initiatives for reform and the remaining challenges and recommendations. The paper concludes with suggestions on how to implement the recommendations based on examples from other countries that have embarked on comprehensive governance reforms for the SOE sector.
The paper focuses its analysis on the last three decades of the twentieth century. The basic assumption is that Egypt's economic performance during this period was less than satisfactory compared with the most successful examples in the far East and elsewhere. The paper also assumes that Egypt's initial conditions at midcentury compared favorably with the winners in the development race at the end of the century. Egypt has achieved positive progress, no doubt, yet compared with the higher performers in Asia, and given its favorable good initial conditions, the record seems quite mediocre. By mid-twentieth century, Egypt's agriculture had almost reached its limits. Egypt, therefore, faced a new challenge: a need to transform itself into an industrial society. This objective was only partially achieved. The paper identifies three interrelated factors that helped hinder Egypt's accession to a new industrial society. The first factor is a strong state and a weak society. An authoritarian state that in its endeavor to preserve its prerogatives had to give up good governance practices and limit the creative initiative of the individuals. The second factor is a semi-rentier economy. The availability of windfall revenues not only reduced the pressure for change but also promoted a new rentier mentality that undermined the emergence of an industrial spirit. The third factor is an inadequate education system. This system failed to provide the proper skills and values required for the industrial society. These factors, moreover, are interdependent and reinforce each other.
SUMMARYA great changement was occurring after fell down the Berlin Wall in East Europe, in 1989.The countries had begun to new period with high debts and inflation by these changements.East European countries have a common feature by carry out the transition period politics by rapidly in this process. So, it was necessity on stabilization politics but not easy.At result, privatization and restructure got an importance.I – THEORICAL AND CONSEPTIONAL FRAME OF MARKET ECONOMYFree market economy has the same philosophy and idea with liberalism. Economical liberalism is defended the free competition, reducing the customs taxes, import freedom and resisted to interference of state on the economy.Classical economy's base is economical freedom and market economy. Market economy is relying on free competition and private enterprise. Price mechanism and world prices are important. Interference of state must be in minimum levels. Public sector must be reduced. Basic factors such as wage, capital and foreign currency must reflect the real market prices, must get an importance to external trade.1-DEVELOPMENT OF MARKET ECONOMY1.1. CLASSIC REVIEWFree trade, specialization only on one field, annihilate the obstacles such as customs and quotas, interferences of state on the market are most important according to Adam Smith, which lived in 18th century.A specialization between nations must be obtained according to Ricardo. So, it must be an exchange on the entire world. 1.2. NEO-CLASSIC REVIEWAlfred Marshall, Leon Walras and Carl Menger is an echol. The state must be more active to improve the poor part of community and must create the opportunities on the market, get the taxes from revenues and wealth, finance the education, health, park and city planning, defence the personal freedom, private property and open markets, manufacture the public commodities.1.3. ORDO-LIBERALISM REVIEWIt is different from classic liberalism. Economical regularity is social which emerges in an evident process, not natural. Social and juridical standards emerge the economical system.Price, monetarily stability, sciences, stability and durability on economical politics are important to emerging of market economy.Basic aim is bring to existence an economical constitution.2- BASIC ELEMENTS OF MARKET ECONOMYBasic factors are enterprising, competition, economical ideas and attitudes.Enterprising is a person which makes unity the manufacturing factors, makes direct the investments, begins to motion by utilize the signals from internal and external markets, gets the share on productivity and determines the firm profit. Basic aim is profit.Competition is social event, protects the personal, which works with high productivity against to personal, which works with low productivity, uses the sources most effectively. Buyer and seller number must be too much in this system. Competition is opposed to monopolization but necessity laws and politics have to support it. ECONOMICAL IDEAS AND ATTITUDESIt includes price, wage, interest, hire and foreign currency. Price system occurs freely according to rate of request and demand conditions. At this straight, firms and consumers must carry out their decisions freely.3- MARKET MECHANISM FLOW AND ROLE OF SOURCE DISTRIBUTIONConsumers and producers have activities on the market economy. The prices are determined according to the lowest cost and to the highest profit.Ideal special future is high productivity, low profit and high production. Competition reduces the profit to the lowest level.Main mechanism on free market is price. If the relative scarcity is enough, request and demand is more or less equal.Producers and consumers may have a decision according to the price indicator and request and demand. This case makes lead the manufacturing, increases the alternatives, also economical activities make an harmony against to conditions.The evident features of market economy are free decision, liberty on preferences, a great price mechanism and competition. So, economical stability is obtainable.Interferences may apply on the market economy for public health, regulations on economical activities, protect the consumers. These motions are generally precautions to control of drugs and drink manufacturing and consumption, annihilation of harmful on public health, growth the power on economic morals, make grow the quality, regulation on manufacturing and marketing. The state may meddle with economy to development rapidly. For example, the state may encourage the saving, increase the rates of interest, decrease the taxes to get on the saving, provide the precautions on investment.The buyers and sellers cannot determine the price on one's own on free competition market. Otherwise monopoly, trust and cartels may occur, stability may out of order between commodity and services.Market economy may deviate from the rules on two main categories.Manufacturer, buyer and seller may make deviate from the rules. Especially trade unionization is effective on this deviation.The state may interfere in economy by taxes, if social and individual advantages different, it may deviate from competition market.The state is exist in every kind of economy and serves to people with harmony and politics and social philosophies of our age. Also it provides security, education and health services but it doesn't determine the prices. It is one of the biggest manufacturers at the same time.II – HISTORICAL WIEW TO BULGARIAN ECONOMY IN THE TRANSITION PERIOD OF FREE MARKET ECONOMY1. BASIC SOCIAL AND ECONOMICAL INDICATORS1.1. GENERALThe form of government is republic, capital is Sofia, Population is 8.297.000(1997), increasing of population is %0. 7, distinctive characteristics in common with Turkishs, Pomaks, Russians, Gipsies, Tatars, Jewishes are in 16 percent.Estimated agricultural area is 1/3 and woodland is 1/3 of all the land. Charcoal, petroleum, natural gas, ferrum and sources except metal are too much. Bulgaria can't use the money too much on surroundings cause of economical lacks.Too many people are migrated to Turkey reason of economical lacks after communism regime. Population is decreased year by year, but unemployment.2. BULGARIA BEFORE 1989Ottoman empire had governorship on the Bulgaria more 500 years till 1908. Then, Bulgarian Kingdom is founded in 1908. Stamboliyski is in powered from Farmer Party in 1920. A new fascism supporter government is founded but communists and farmers were outside of government.Bulgaria is allied with Germany in 1941. Although a new government was found in 1944, the republican regime with referendum is founded in 1946. The new constution is validated in 1947. Cercenkov is in powered in 1950, relations with U.S.A. were out of order and membership of United Nations was validity in 1955.The new constitution is validated in 1971. T.Jivkow is in powered continually, became arrested cause of irregularity in 1990 and then, again a new constitution is validated. Communist Party is made to take out of only one party. In that year, state's name is changed to Republic of Bulgaria and removed the communist symbols from flag. Privatizational laws are validated with Jelev in 1992. The Government of Videnov is contraried the privatization in 1994.Peter Stoyanov is Nato's supporter and he was president in 1996. United Democratic Forces is in powered with 52 percent of vote after selections in 1997.2.1. COMECON AND COLLAPSING OF SYSTEMComecon is a union that emerged by East European Countries. Bulgarian economy has begun to transition period with some negative ness like other East European countries causes of political incompetence and dissociating end of 1980s.Bulgaria which had more than 60 percent of export to associate but it had couldn't find the new markets cause of inadequate ship of quality standards and had an old technology. Foreign currency reserves are high level. It has too many debts, political incompetent ship in the land. Financial system is not conformity to market economy and also could not claim 2 million dollars of money owing from Iraq because of golf war. So, Bulgaria couldn't save from crisis because of above reasons.2.2 GENERAL ECONOMICAL DEVELOPMENT AND SECTORSBulgarian manufacturing industry basically is founded on textile, wooden engrave, leather products and food prep rationing sectors.Bulgaria had realisation the attacks on the heavy industry that supported by S.S.C.B. after 2nd world war.Production of electro-mechanic and electronic goods in manufacturing sector is reached to an important share since 1970s.The biggest natural wealth of Bulgaria is productive earths. There are not important minerals in Bulgaria.In the following period of 2nd world war, metallurgy and chemical production had an importance. Industry sector had old technology. Its competition is losted the power with disunited of the Comecon.Productivity rates on industry are grown with economical reforms that started in 1979. Economical growing is dynamically continued in spite of reducing the productivity on agriculture sector, building sector and investments in Bulgaria. Especially, price volatility on agriculture sector is a reason of suspicion about real value of growth in 1988 according to 1987.Productions on agriculture and industry of Bulgaria are reduced according to statistics. Main problem on agriculture sector is delivery prices of goods.A stagnation indicator on Bulgarian economy is weakness of building and construction sector. Manufacturing products such as cement and weawing is in necessity. Manufacturing level is inadequate on that area and also unqualificationed organisations have been affected.2.3 - FOREIGN TRADEThere are no definite results on foreign trade reason of inadequate of numerical data's.However, export is increased up to the rate of 4 percent in 1988 and import is reduced to the rate of 1.8 percent. Bulgaria finance deficit is 600 million dollars result of trade with west countries in 1998. Tourism revenues are positive. Trade connections with Turkey are weak according to another East European countries.2.4 – PERESTROICA POLITICSThe new age on economy with state council's decision is started in January 9,1989. Activities to get the indepences of firms are velocitied. At the same time, this decision is more benefit to foreign investors too.3. 1989 – 1997 TRANSITION PERIOD3.1 – ECONOMICAL REFORM ACTIVITIESAlteration is started in east block countries after 1989 and together with this alteration. Comecon is losted the activity. So, idle capacities are commenced and Bulgaria is losted the production markets.The reforms are making started by new government in February 1991. External trade regime is liberalisation in one direction; this is one of the import nest factors of the reforms. With a decision is accepted in 1989, basic of economical reforms are occurred. Firms had equal rights to execution of economical activities. The laws related to foreign investment are validated in 1992.Commercial banks have gone to consolidation. Prices had freed except 11 basic consumption. Economical activities, government status on economy, foreign trade and foreign exchange regime, price regulations, privatization, tax systems are reorganized about foreign investors.3.2. SECTORAL CONSTITUTIONIndustrial sector had the over 50 percent of share on economy until 1990s. 11 private sector's share with service and trade sector approached to 60 percent between 1992 and 1997.SECTORSProductivity with old technologies on industrial sector is at low level. Engineering sector is developed. Products of textile sector are manufactured at high quality.CHEMICALSChemical products that have an important mark on export of Bulgaria. They were 1,096 milliard dollars with 22,3 percent in 1997 and 983 million dollars with 19.4 percent of total export in 1998.AGRICULTURE, FOOD AND TOBACCORate of plan tablelands are 34 percent in Bulgaria. Totally 304 firms are active on food, drink and tobacco sector.METALLURGY AND MINERSHIPIron product is 6.2 percent and other than iron is 6.8 percent on all of industry in 1998. In 1997, metallurgy sector is grown up to 117.2 percent with 529 million dollars in total amount of export in Bulgaria.MACHINEShare of machine sector is 13.8 percent in all of industry. Principal are; Machine parts, tractor, bus, ship, building and auto spare parts.CONSTRUCTIONPrivate firms in the sector have share with 13 percent in 1991. That share is grown to 62 percent in 1995 but then; it is reduced reason of financial inadequate ships.TOURISMTourism revenues are approximately 280 million dollars in 1995.4.5 million of transits and totally 8 million tourists are visited the Bulgaria in 1996.3.3. TRADE AFTER ECONOMICAL REFORMSExport of Bulgaria is totally 4.9 milliard dollars in 1997. The import nest export products are fuel oil, other fuels, cooper and its products and nuclear reactors. Import is 4.5 milliard dollars in 1997 and included the product such as mineral fuels, nuclear reactor heaters and spare parts, electric machines, mineral substances, cotton, synthetic fibres, cereals, auto and tractors.3.4. EXTERNAL DEBTSRate of the external debts to export revenues were 249.9 Percent in 1993 but then, back to 188.2 percent in 1994.Official external debts were 10.363 dollars in the end of 1997.3.5. FOREIGN INVESTORS EXTERNAL CAPITALMost investments with 636.2 million dollars by foreigners are made in 1997. This amount is 526 million dollars in 1998. Principal foreign investors are European countries and U.S.A. A new foreigner investment law is prepared in Oct 1997. Main sectors to investment are industry, trade, finance and tourism.3.6. COMMERCIAL BANKINGState banks are privatization by associate. Regulations relate to control of banking are valitidied by government. In the middle of 1997, a new law on banking are validated after economical crisis in 1996, Central Bank Law are rebuilt. High levels of capital and capital qualifications are obligationed.3.7. PRIVATIZATIONPrivatization is started with foundation transformation and privatization belongs to state and municipalities in April 1992. Privatization Agency is built-up. Privatization is realization with totally 836 million dollars between Jan 1,1993 and Dec 30,1998. Its part of 421.4 million dollars is in 1997 and part of 116 million dollars is realization in 1998.Foundations like ports, telecommunication and, etc.are out of privatization by laws. 95 percent of state firms transformed to form of private limited or nationalization. Share of these firms are belong to state.III. BULGARIA IN EUROPAN UNION AND CONNECTIONS WITH TURKEY1. BULGARIAN ECONOMY AND CONNECTIONS WITH TURKEYTest and certification operations, metal products except iron, chemical products, cereals, operational petroleum. Products are important substances from Bulgaria to Turkey.Although weaving products, food, chemical products, leather and stout leather products, glass, ceramics, brick products are ones of important from Turkey to Bulgaria.1.1. CONTENTS OF FREE TRADE AGREEMENT BETWEEN TURKEY AND BULGARIAAll taxes and restrictictions on industrial products by signed on European Agreement between European Union and Bulgaria in Mar 8,1993 and validated in Dec 31,1993 will be removed till 2002.Turkey and Bulgaria made easy to particularization into agricultural products market by reduced the taxes for between their selves.End of signed acts, 131 products of 446 that stated to Turkey and 1141 goods of existing on European Union Agreement are liberalization by remove from list of sensitive products.Foreign companies had a partnership rights with corporations and individuals and also foreign individuals had a right on economical activities by law of keeping foreign investors, which is validated in 1992. Same economical rights are recognized between foreigners and Bulgarians and also getting unlimited share from exist companies and companies that will be found.2. CONNECTIONS WITH EUROPEAN UNION AND FINANCIAL PORTREIT OF BULGARIA2.1. CONNECTION WITH EUROPEAN UNION OF BULGARIAIn the autumn 1989, Berlin wall is demolished and this motion make united the European that had divided to east and west after 2nd world war. Comecon's mean is continuing the economical dependent ship to Soviet Union. But, most east and west European countries reject it. After these European Union augmented economical and political supports to that countries reason of carry out and conclude the reform, which is started in middle and east European countries.Firstly, a group includes the Turkey is formed by 24 of OECD countries. G24s are transferred to entrust with coordination of support to the European Union Commission.That commission is functionizationed the Phare program that helps on financial and technical areas to Poland and Hungary. Bulgaria, Czechoslovakia, Yugoslavia and Romania in Sept.1990, Albanian, Estonia, Leetonia and Livonia in Jan.1992 and Slovenia in Aug.1992 are included by Phare program.Military regulations on security of West European losted the importance but they are already securely areas.Main political aims that related to Middle and East European countries of European Unions are explained below;a- Encouragement of liberal democratic system with respectful of law's superiority.b- to be sense on surroundingsc- to prevent the ethnical collidesd- to prevent the migration to foreign countries at the west.e- Phare program and encouragement of free market economy from planned economy.2.2. WHAT IS THE PHARE PROGRAM?Phare program's aim is build the encourage mental conditions to the market economy and to take pains about investments on economies of Middle and East Europe countries. This program includes unfinancable fields by traditional external supports. That supports on the program is formed by credits and encouragements and used for pilot projects related to reorganization of associations.Bulgaria is taken a support of 10.6 millions ECU by include of Phare program.European Union don't use only Phare program as a tool on politics related to Middle and East Europe countries, except itIncludes the programs within own constitution such as ERASMUS and COMETT.2.3. FIRST PERIOD (before 1989)In this period; trading is developed between Middle and East European countries that named as COMECON COUNTRIES but couldn't show the same developments against to West Europe in European Union.Soviet Union takes the priority on exporting with countries. Bulgaria is the develop pest country on trade with Soviet Union.2.4 TRANSITION PERIOD (1989-1992)The great changements occurred on trade in Soviet Union and Middle and East Europe countries from starting the reforms in 1989 to 1992.From 1989,trade and partnership agreements signed with Hungary and Poland then, with Czechoslovakia in 1990,also Bulgaria and Romania in 1991. At the same time, rejection is started on amount of restrictions. Exporting is increased between Middle and East European countries, Soviet Union and European Union other than below too;Devaluation in the countries other than Hungary,- Workings to join into the West European markets reason of re-emerging the losted ones in East European- Import is on peak-level from those countries to Germany after unitized the East and West Europe.2.5. EUROPEAN AGREEMENTSEuropean agreements are acted end of 1991.Bulgaria-Europe agreement's date of signature: Mar8, 1993Date of being inforce: Dec 31,1995Temporarily agreement: Dec 31,1992European agreement has been in force in Bulgaria, end of 1995. European agreements are partnership agreements that signed by based on 238th paragraph of Roma agreement and Maastricht agreement. According to that state, increasing of export is an prestipulation to growth the economy with stability.3. SUCCEED OF STABILITY PROGRAM IN BULGARIABulgaria signed on an agreement with IMF to pass over the economical hardships and started the reforms in 1991.Economy is grown at the rates of 2.1 percent in 1995.In 1997,economy has the new crisis related to Yugoslavia crisis and so, Bulgaria signed on a new agreement with IMF.Leva is fixed with 20 DM and 1000 Bulgarian Leva to 1 DM and constructral reforms is started to gain the speed.Economy in Bulgaria grown to positive from 1994 but to the 10.9 percent in 1996.- Inflation rates (%) in Republic of Bulgaria; 1992 1993 1994 1995 1996 1997 199882,2 72,8 96,2 62 123,1 1082,3 22,3After the stand-by agreement with IMF, inflation approached to 22.3 percent in 1998.Annual average of inflation is expected as 7.3 percent in 1999 and 9.0 percent in 2000.Bulgaria is the poorest country according to other east European countries candidate to membership of EU. Bulgarian Leva is determined by rejected the 3 zeros from Detsch Mark. So, new Leva is make related on euro at the rates of 1.95583:euro 1 (Lvl:DMI ).CONCLUSION:Bulgaria is declared the moratorium reason of hardness's to find an external debt, to refund the capital and interests of external debt.While external debt is 10.6-milliard dollars end of 1990,it has been 12.2 milliard dollars, end of 1993. So, started to paces towards to market economy in Feb 1991. Annual inflation is reduced from 338.5 percent in 1991 to 79.4 percent in 1992.The debts of managements of state are ruined the budget and also a reason to broken balance on economy too.The crisis on foreign currency is occurred in Mar 1994. Reforms have been out of control at the result of that crisis.Leva is devaluated as 100 percent and inflation is reduced to 90 percent on annual average. At this parallel, financial and revenue politics, money and its value are controlled. The debts to foreign countries are decreased to 9.8 milliard dollars with precautions in 1994 and end of 1996.Financial balance are obtained again in the first months of 1995, reduced the inflation and also rate of interests to 72 percent.Rate of exchange (Leva/$) was 503 percent between Jan 1 and Feb 12,1997. Especially, that increasing was 20-percent/each day in Feb 1997.Rate of interest was 300 percent in Sep.1996. 14 Banks are bankrupted in that period. Bulgaria had been 1st of the world from inflation increasing speed of view.Inflation, devaluation, unemployment and also wages are on the lowest level in transition period in Bulgaria. Incoming per person is decreased 50 percent between 1989 and 1995.Annual criminal events are increased 3 times more after 1990. Money committee had formed by advice of IMF in Jul 1997. 1Deutsche Mark is indexed on 1 Leva.Qualified personnel with educationed on technical areas is a great potential force of Bulgarian economy.Bulgaria will be completed the transition period when it became to membership of European Union.
In 1928, Utah Construction Company completed its first project outside of the United States with the 110 mile railroad for Southern Pacific of Mexico. Over the next 30 years, UCC continued to work on projects in Mexico including dams, roads, mining, and canals. The collection contains several booklets and correspondence along with approximately 500 photographs. ; 8.5 x 11 in. paper ; 96) Return to Harry McNev Mexico- Copper & Exploration ABSTRACT CONDITIONS THAT AFFECT MINING EXPLORATION AND MINING PRODUCTION IN MEXICO Private mining industry is experiencing difficult times in many countries that are or have been large mineral producers. Would Mexico offer opportunities for exploration and production? Mexico is a mineral rich country. For the exploration en-gineer this is the most vital point. If the exploration groups are professionally adept, they will find mineralization. A broad review of metallogenetic provinces and of past and present production in Mexico can be used as a guide to explora-tion. Although Mexico is well endowed with minerals, there are many factors that must be considered before a determination can be made that the mineral discovered is ore; (a) restrictive factors in-cluca governmental policy such as taxes, Mexicanization, commodity prices and certain laws; (b) favorable factors include a stable government, strong and freely-convertible peso, and relatively low direct-production costs. -The Mexican mining industry offers an opportunity to those willing to study the problems, accept the law, and invest in the social -as well as financial- future of Mexico. CONDITIONS THAT AffECT MINING EXPLORATION AND MINING PRODUCTION IN MEXICO I. INTRODUCTION. The potential foreign investor in Mexico's Mining In-dustry must carefully consider many facets of the industry and of the country. On the positive side, a stable govern-ment, a healthy monetary position and. above all, a mineral-iy rich country can be found. However, no investments should be made until the potential investor has investigated the min-ing law with its Mexicanization requirements, the mining taxes, the technical manpower regulations and the power of the ex-ecutive branch to set commodity prices. The official mining policy during the period 1930 to 1954, did not encourage investments in the mining industry. However, the future looks much brighter, for now Mexicanization has been accomplished for over 90% of the industry and the gov-ernment realizes that mine products provide a base for Mexico's currency and bring in foreign exchange, that mining provides an important source of government revenue and is an important con-sumer of power, supplies, and transportation services. Also, and of great future importance, Mexico's expanding industry will be in need of more raw materials to supply its demand and its increasing export of manufactured goods. II. HISTORY. The Spanish conquistadores were obsessed by the riches found in Mexico - particularly gold and silver. Thus began the systematic plundering of the new colony and the beginning of mining as the basis of Mexico's economy, Mexico became known as the ""mine and mint of Spain"". Major mining districts such as Taxco, Zacatecas, Santa Brbara and Guanajuato were discovered and brought into pro-duction between 1520 and 1550. It is interesting to note that these selected districts are ail still in production. From 1810, which saw the start, of independence from Spain to 1910 when the Mexican Revolution broke out, mining continued to play a leading role in the national economy. It probably would be fair to say that it sustained the economy. From 1875 to 1900, for example, mining accounted for 70% of the value of Mexico's exports. During the period of the 1910-1917 Revolution mineral pro-duction sharply declined. Silver, lead, and zinc, however, hit their peaks in the late 1920's nut then the general depression followed by governmental restrictions and high taxes reduced exploration which then was followed by reduced production and to date the peaks of production of the late 1920's have not been reached. Under the progressive regime of President Diaz Ordaz, which started in 1964, governmental stimulation to the mining industry has led to greater exploration which is now showing up in increased production. Today Mexico ranks as the leading producer of silver and is the fourth largest producer of lead, fifth of zinc and fourteenth of copper. Mexico also produces major amounts of mercury, bismuth, sulphur, antimony and is the leading producer of fluorite. The entire mineral industry accounts for over 20 percent of the country's foreign exchange earnings although this amounts to less than 2% of the Gross National Product. III. CONDITIONS IN THE MINING INDUSTRY OF MEXICO THAT AFFECT IN-VESTMENT. A. Mexicanization. The term Mexicanization has often been misinterpreted as nationalization. Mexicanization only implies the control of a company in Mexican hands. The transfer of control from foreign to Mexican hands proceeds on a private level by negotiations between local and foreign businessman. Although foreign capital is welcomed, the investor should not expect more favorable treatment than that accorded domestic investors. In Mexicanization it is implicit that as a country progres-ses and matures it must create a body of national capital. For if the profit earned leaves the country (although it created jobs, paid taxes, etc.) the servicing of loans and repatriation of capital would likely endanger the balance of payments leading to an unsound economy. Instead, by retaining within the country at least 51% of the profit, a national capital can be created which is so necessary for further economic expansion and industrialization. - 3 - In 1961 a mining law was passed providing that new mining concessions can be granted only to Mexican nationals, and companies in which a minimum of 51 percent of their capital stock (or 66 per-cent in some instances) is owned by Mexican nationals. This same law, however, granted tax privileges to Mexicanized companies. B. Immigration Restrictions. To protect their skilled and unskilled labor, the Mexican Government has regulated the immigration of foreign technicians in-to Mexico. However, if for the good of the country it is felt that a foreign expert is vitally needed, he can be permitted to enter generally with the stipulation that he train his replacement. Mexican universities are training mining engineers, metal lurgists and geologists but their training is principally academic and an industrial training period is necessary to make these en-gineers capable of filling normal production positions, C. The mining law of Mexico was completely redrafted in 1961, This is an extensive law and only a few of the points will be discussed, 1. Only Mexicans or Mexicanized companies have the right to obtain concessions. 2. A concession shall have a maximum surface area of 500 hectares l hr = 10,000 sq. meters). The sides of the con-cession are limited by vertical planes, 3. The total maximum concession area for a company or an individual is limited depending on the substance. However, three times this maximum can be held for a five-year exploration period. As an example for gold, silver, copper, lead and zinc, a maximum of 9000 hectares can be held for the first five years. After this five year period, a maximum of only 3000 hectares can be held. 4. Mining concessions are issued for 25 years but may be extended on proof of effective exploitation. 5. Assessment work is required. D. Taxes. Taxes paid by mining companies include: 4 1. Income Tax. This tax is modarate and has a maximum of 42%. 2. Production and Export Tax. These taxes are based on price set monthly by the Treasury Department. This official value is arbitrary and can change but generally reflects world prices. These taxes are levied whether the Company is making an operating profit or not. 3. Surface Tax. This tax is a rental on mineral concession of $1.20 dollars per hectare per year. 4. Capital Gains. Capital gains are included in gross income but at a reduced percentage depending on the length of time that assets have been held. 5. Depletion. There is no deduction allowed for depletion. 6. Amortization and Depreciation. It can be stated that deductions allowed are those that the tax authorities regard as normal and necessary for conduct of business. 7. Reduction in Taxes for New Mines. A directive calls for a five year reduction of up to 40% income tax and up to 100% of the federal portion of the production and export taxes, and accelerated depreciation and amortization for certain investment in new operations. 8. Other Taxes. Other taxes such as social security payments and distribution of a portion of annual profits to employees are required. E. Metal Prices. Metal prices for sale in Mexico are set by a govern- - 5 - merit agency. These prices are lower than world prices and act to subsidize Mexico's metal-using industries at the expense of the mining industry. F. Favorable Conditions. 1. Stable Government. The Mexican Government is stable and this stability will be entrenched each passing year with the development of a larger middle class and the strong emphasis on education. 2. Financial Stability. Exchange restrictions have never been imposed and funds are freely convertible and transferable to and from Mexico. The exchange rate has remained at 12.50 pesos per U.S. dollar since 1954. An exchange stabilisation agreement exists between Mexico and the International Monetary Fund which permits Mexico to draw on foreign currencies to maintain the parity of the peso. However, Mexico has maintained a favorable balance of payments for numerous years. 3. Low cost labor. Although there is a notable lack of qualified mining and exploration personnel of the highly technical and supervisory calibre, there is plentiful mining labor in the mining regions. In general, the mining labor is efficient and the costs are reason-able. Recent wage raises have been higher than increased productivity and management must work for higher productivity. In recent years strikes of over 15 days duration have been exceptional and peaceful labor relations are the rule. 4. High mineral potential. We can start with the premise that Mexico is a country extremely well endowed with minerals and many ore bodies await to be discovered. The fact that there has not been more than possibly three major metallic mineral discoveries in the last two decades is not that the bodies do not exist but that fiscal conditions have been such that no search has been made - 6 - for them. Now methods and philosophies of exploration have not been tried until very recently but in them lies the great ex-ploration potential of Mexico. There are three general geologic zones in Mexico. The nor-thern zone is separated from the southern zone by the volcanic-rift belt which runs east-west through Mexico City and Guadalaja-ra and has as its most obvious surface feature a belt of Cenozoic volcanics. Most of the mining in Mexico has taken place in the northern zone in which the more acidic intrusive rocks are found. The southern zone contains more basic rocks, and although there are numerous mineral occurrences, the mines are small in size and number. The scarcity of mines in this zone is undoubt-edly due, in great part, to the lack of exploration which is made difficult due to lack of roads and facilities and to the heavy vegetation covering the outcrops. The volcanic-rift belt exhibits difficult exploration con-ditions; the principal ones being the great amount of volcanic cover and the intense faulting. As in the southern zone this area has not received intensive exploration; however, the famous silver deposits of Pachuca, Taxco, El Oro and Guanajuato lie within this region or at its edge. In the northern zone a long, large northwest trending belt of middle Cenozoic volcanics is found, which constitutes the Sierra Madre Occidental. Pew large mines are known within this belt of very thick volcanics; but where the rocks below the volcanics have been exposed, they are abnormally well mineralized. Therefore, here again the scarcity of mines is due to lack of out-crops. In order to investigate the exploration possibilities in greater detail, let us evaluate the situation of various metals. a. Silver. Mexico is and has been for many years (except 1968) the world's leading producer of silver. In the past a majority of the silver came from such bonanza camps as Pachuca, Guanajuato and Tax co where the silver was found in very high-grade deposits with very minor amounts of other metals. Today. most of Mexico's silver is produced as an accessory mineral in the lead and zinc deposits. This means that with lower lead and zinc prices there has been a reduction in the production of silver although silver prices have advanced. Although the bonanza camps have been reported as ""worked out"", there are definite signs that this may not be the case. Recant high-grade discoveries in Guanajuato and Taxco indicate that if modern techniques and vigorous exploration are carried out, it is quite possible that bonanza deposits will be discovered. Silver is well distributed in many parts of Mexico and it would be difficult to pin-point exact locations favorable for exploration. Slide No.2 shows in general the major distribution of silver. Since the environments vary widely, so also would the exploration techniques. In parts of Mexico numerous silver deposits have been known but left unexploited due to lack of roads and facilities. Large, low-grade deposits probably exist but as yet company philosophies have not been such that they would explore for this type of deposit. b. Copper. Copper, like silver, appears to have a future at favor-able prices. Added to this is the great increase in demand for copper by Mexico to satisfy its rapidly expanding industry. Until this year (1970), there has been only one copper mine in Mexico that could be considered major; the Cananea mine which produces approximately 70% of Mexico's copper. The Santa Rosalia mine in Baja California could be considered a medium sized mine and the rest of the present copper production comes from very small mines or as a minor mineral from other base metal mines. Because of this limited production, Mexico is presently producing just enough copper to supply its internal demand. This picture, however, is changing rapidly. In early 1971, Asarco Mexicana, S.A. will bring into production their Inguarn mine, in the State of Michoacn, which will have a mill capacity of 2000 metric tons per day of 1.8% copper which will more than take care of Mexico's immediate industrial demands for copper. Then in the future lies the immense deposit, La Ca-ridad, of Mexicana de Cobre, which has reserves in excess of 600 million metric tons of 0.75% copper with values in molybdenum. The exact size of this deposit is as yet unknown. Work is now underway to bring this deposit into production in 1974. -8- The reason for not producing more copper in Mexico has been the lack of exploration incentive by the mining companies. The small prospector is not equipped to explore for bulk, low-grade copper deposits and only in the last year or so have major companies made an exerted effort in this field. A very favorable copper mineral province exists in the State of Sonora, Perhaps the most important structural characteristic of this area is its location (Slide #3) along the north-trending Wasatch-Jerome crustal lineament at or near its intersection with the northwest-trending Texas lineament. Correlation between these lineaments and the distribution of the bulk low-grade deposits has been remarkable. Mexico's largest copper producer at Cananea and the previously mentioned La Caridad deposit lie along the Wasatch-Jerome near the intersection with the Texas lineament. Although northern Sonora is a most favorable area in which to explore for copper, this area should not be considered as the only target area since favorable areas exist in other parts of Mexico. Molybdenum can often be expected as an accessory metal with the copper mineralization. If unfavorable conditions for mining investment in Zambia, Peru and Chile -all major copper producing countries- continue or worsen, Mexico will become a major exporter of copper within the next ten years. Even if conditions become better in those countries, Mexico will still play a major role as a copper producing country. c. Lead and Zinc. Although the long term picture for lead and zinc, with silver as an accessory metal, may not be as bright as for copper, established smelter capacity and both local and foreign markets exist and, therefore, exploration for lead and zinc can be con-sidered by both large and small companies. For many years there has been little exploration for new lead and zinc deposits and there has been no exploration with the use of modern tools for locating unexposed bodies. The greatest exploration provinces for lead and zinc are shown on Slide #5. In these areas substantial silver values associated with the lead and zinc could be expected. - 9 d. Other Metals and Minerals. Mexico is a major producer of fluorite, barite, mercury, tungsten and antimony. Exploration will continue for these ma-terials depending primarily on world prices. i IV. SUMMARY OF CONDITIONS. Prom the foregoing, we can quickly summarize the conditions that exist in Mexico that directly affect investment in the mining industry. A. Regulatory. 1. Mexicanization. The requirement of majority investment by Mexican nationals by itself is certainly not unfavorable; however, risk capital is difficult to find. 2. Immigration Restrictions. It is often difficult to obtain highly technical personnel and companies are limited to the number of foreign personnel they can hire. 3. Mining Law. The mining law has been updated and is meant to broaden the mining industry base in Mexico. However restrictions and control are an essential part of the law. 4. Taxes. Income Taxes are moderate but production and ex-port, taxes are a severance tax not based on profit. There is no reduction in taxes for depletion. 5. Metal Prices. Mexico's industry is subsidised at the expense of the mining industry through official prices set slightly lower than world prices -10- B. Favorable. l. Mexico is a mineral-rich country. 2. Mexico has a stable government. 3. Mexico has a strong-convertible currency. 4. Direct production costs for medium to large operations are low. 5. The proximity to the United States assures a large market in addition to the growing market in Mexico. Future. The most striking feature about Mexico today is the tremendous social gains. Education receives, by far, the largest share of the national budget; health facilities are readily available and are ex-panding; electricity and roads are coming to the small villages and wages are being raised in an attempt to make even the poor farmer a consumer. Mexico is expanding industrially to keep in step with the local demands and manufacturing more and more of its necessities in or-der to reduce the need to import, which makes its trade balance more favorable. Mexico yearly increases the export of manufactured goods where previously the country had only been an exporter of raw material and crafts. Politically Mexicans are, and should be, proud of their ancient past and their recant history. They are, therefore, ready and anxious to work with foreign companies if this partership will assist in the development of Mexico as a country and to the advantage of the Mexican people. The exploitation of Mexico to the advantage of other peoples is a thing of the past. Mexico is a developed country and expects to be treated as such. The Mexican mining industry offers an opportunity to those willing to study the problems accept the laws and invest in the social -as well as financial- future of Mexico. D.F. Coolbaugh Mexico, D.F. Mexico, May 1970. DFC/mfb. - 11 -
From nuclear weapons to terrorism, the United States and Iran clash on nearly even front. Yet, it has not always been this way. As recently as 1979, Norwich University, the oldest Senior Military College in the United States, played host to nearly eighty Iranian Midshipmen. Although Norwich's Iranian program was short-lived, it was one of the most successful cultural exchanges in the university's history. In the face of tremendous adversity, Norwich overcame all obstacles and successfully academically, militarily, and socially integrated the Iranian Midshipmen into the Corps of Cadets and the greater Norwich community. ; Winner of the 2022 Friends of the Kreitzberg Library Award for Outstanding Research in the University Archives category, honorable mention. ; Tribulation, Triumph, and Tragedy: Norwich University's Iranian Program (1976-1979) Joseph C. Chatterton History 249- Historical Methods Dr. Bennett 3, December 2021 Word Count: 3159 1 January 29, 2002, just five months after the most devastating terrorist attacks in American history, in his first State of the Union since the beginning of War on Terror President George W. Bush branded Iran as a member of the so-called Axis of Evil along with the likes of North Korea and Saddam Hussian's Iraq. In one line in particular, President Bush decried the Islamic Republic and made it clear that in his role as Commander and Chief, he regarded Iran as one of America's greatest geopolitical foes stating, "Iran aggressively pursues these weapons and exports terror, while an unelected few repress the Iranian people's hope for freedom."1 President Bush's remarks are unsurprising. After all, as recently as May of 2018, prominent Iranian politicians congregated in the hallowed halls of their Parliament to burn American flags and chant "Death to America."2 From nuclear weapons to terrorism, the United States and Iran clash on nearly even front. Yet, it has not always been this way. As recently as 1979, Norwich University, the oldest Senior Military College in the United States, played host to nearly eighty Iranian Midshipmen. Although Norwich's Iranian program was short-lived, it was one of the most successful cultural exchanges in the university's history. In the face of tremendous adversity, Norwich overcame all obstacles and successfully academically, militarily, and socially integrated the Iranian Midshipmen into the Corps of Cadets and the greater Norwich community. In the fifty years since the birth of Iran's Islamic Republic, scholars, historians, and government officials have devoted the vast majority of their analysis on the dramatic collapse of the Shah's regime, the ensuing hostage crisis, and the profound implications it had on American foreign policy. While the significance of this is undeniable, far less research has been done into 1 George W Bush, "2002 State of the Union ," National Archives and Records Administration (National Archives and Records Administration, January 29, 2002), https://georgewbush-whitehouse.archives.gov/stateoftheunion/2002/. 2 "Iranian Politicians Set Fire to US Flag in Parliament," BBC News (BBC), accessed November 4, 2021, https://www.bbc.com/news/av/world-middle-east-44055625. 2 academic links which bound the two nations, and the effects that the regime's collapse had on the vast number of Iranian students studying in the United States. Norwich's Iranian program was not the first of its kind, however it was the most successful. Similar programs were attempted at other military academies such as at The Virginia Military Institute (VMI) and the Citadel. However, both of these programs were plagued by difficulties. In 1976 Lieutenant Colonel Paul LaFond, the Deputy Commandant of Norwich's Corps of Cadets, visited VMI to observe VMI's Iranian program so that Norwich might draw lessons for the establishment of its own program. Following the trip Colonel LaFond compiled a detailed report. In the report, it becomes quickly evident that the VMI program consistently struggled to successfully integrate the Iranian students. Major flash point included the serving of Pork products during chow time and their "more relaxed idea of the honor code,"3 LaFond ends this memorandum with a section dedicated "Staff, Faculty and Cadre reaction to the Iranian Program." In this section it becomes evident that many prominent leaders of VMI had less than positive things to say about the program. One Cadet advisor remarked, "The Iranians have put a great strain on our system. The school has been weakened." he continued on dramatically stating, "If we had large numbers for very long it could destroy our system."4 Probably the gravest signal that VMI's Iran program was less than successful are the somber closing remarks of the schools highest ranking officials, the Commandant of Cadets: " You will have a severe problem. Are you ready to cope and is it worth it? There will be many problems with your own cadets."5 The first half of this quote is simple enough to analyze. Of course, there will be many general challenges with introducing a large contingent of foreign midshipmen into a military environment such as 3 Paul LaFond. Memorandum to Loring Hart, 7 May 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 4 Paul LaFond, Memorandum to Loring Hart. 5 Paul LaFond, Memorandum to Loring Hart. 3 VMI, yet it is the second part of this quote that really requires some unpacking. What exactly was the Commandant's intent when he stated, "There will be many problems with your own cadets."6 As mentioned previously VMI's Iranian program was notorious for its struggles to integrate the Iranian Midshipmen into their Corps of Cadets, one aspect of this often overlooked is the initial hostility between American Cadets and the Iranian Midshipmen. Earlier in the memorandum VMI's Commandant is quoted to have stated in subsection 5, Discipline and Control, "At first, the 'Old Cadets' harassed the Iranians, and were hard on them. A period of turbulence resulted," he goes on to articulate his point stating that he "cautions, to watch our martinets that they don't cause trouble and states that this type of cadet is particularly frustrated when working with Iranians."7 Although the wording in certain sections of this memorandum can be somewhat confusing for a twenty-first century perspective to comprehend, the general theme is clear, VMI's Iranian program was plagued with trials and tribulations, many of which remained unresolved at the time of its publication. In spite of this evident adversity, Norwich remained resolved to push forward and succeed where VMI failed. With this in mind one must question why Senior Military Colleges such as Norwich placed such an emphasis on creating relations with Iran? For thousands of years Iran has been a strategic regional power. Throughout antiquity the Persian Empire was one of the world's premier powers, and this prominence continued into the Middle Ages. In the 7th century CE, the nation played a vital role in helping to facilitate the spread of Islam from the Arabian peninsula to Central Asia.8 As time progressed the nation's strategic value only grew. During the age of European Imperialism, Iran held a vital role as a 6 Paul LaFond, Memorandum to Loring Hart. 7 Paul LaFond, Memorandum to Loring Hart. 8 Kathryn Babayan, "The Safavid Synthesis: From Qizilbash Islam to Imamite Shi'ism." Iranian Studies 27, no. 1/4 (1994): 135–61. 4 buffer between the British lion and the Russian bear.9 By 1879, Iran was a colony within the British Empire in all but name. The Iranian government was forced to grant monopolies on everything from "the construction of railways, canals and irrigation system,"10 to control of the nation's banking system.11 Yet the nation's greatest strategic value laid below its surface. In 1908, as oil was beginning to gradually replace coal as the key to industrialization, foreign interest in the country skyrocketed with the Anglo-Iranian Oil Company discovery of black gold beneath the waters of the Persian Gulf.12 Iran entered the Cold War in a very interesting position. Many of its institutions, and much wealth continued to be controlled by foreigners in London and by this point Washington. Understandably this angered many Iranians and many turned to socialist politicians like Egypt's Gamal Abdel Nassar, and in Iran's case Mohammad Mosaddegh. In the general election of 1951 Mosaddegh campaigned on the simple message that Iran must free itself from the British imperial yoke. He would win the Prime Ministership in a landslide, and upon assuming the highest office in the nation he set out to make good on his campaign promise. Symbolically on May Day in 1951, Mosaddegh announced the nationalization of the Anglo-Iranian Oil Company. In October of that year he doubled down, expelling all British subjects from the nation. Yet the Western powers did not take kindly to being forcefully evicted from Iran, especially taking into consideration the ongoing Cold War, the nation's strategic geography, and its valuable resources. Thus, the British Intelligence service (MI6) in conjunction with the Central Intelligence Agency (CIA), began planning for regime change. In August of 1953 Operation Ajax (alternatively known as Operation Boot) successfully ousted the democratically 9 Chris Paine and Erica Schoenberger, "Iranian Nationalism and the Great Powers: 1872-1954." MERIP Reports, no. 37 (1975): 3–28. 10 Paine, "Iranian Nationalism and the Great Powers. 1975. 11 Paine, "Iranian Nationalism and the Great Powers. 1975. 12 Paine, "Iranian Nationalism and the Great Powers. 1975. 5 elected Mosaddegh, and bestowed the on nation's monarch or Shah, Mohammad Reza Pahlavi near absolute power.13 The Shah's Iran played a vital role in the United States' middle eastern policy. As described in his journal article, American–Iranian Alliances: International Education, Modernization, and Human Rights during the Pahlavi Era, Dr. Mathew K. Shannon "The Shah's Iran provided to successive American administrations, with a toe hold in the Persian Gulf region … a bulwark against Soviet expansion… and guaranteed the westward flow of Iranian oil."14 With this in context it is understandable that the United States wished to do everything within its power to strengthen its strategic relationship with Iran. While on one hand this means providing Iran with military funds and equipment, it also means flexing the United States' soft power. The Oxford dictionary defines "soft power" as, "a way of dealing with other countries that involves using economic and cultural influence to persuade them to do things, rather than military power."15 In the 1970s the United States had many of the top universities in the world, as well as one of the most robust and modern educational systems. Thus, it seems only logical that the US utilizes its education system, as a bastion of strength. Dr. Joseph Nye, a well-established political scientist and the former Assistant Secretary of Defense for International Security Affairs is quoted for stating, "The ideas and values that America exports in the minds of more than half a million foreign students who study every year in American universities and return to their home countries, tend to reach elites in power."16 Throughout the Cold War the United States would 13 Moyara de Moraes Ruehsen. "Operation 'Ajax' Revisited: Iran, 1953." Middle Eastern Studies 29, no. 3 (1993): 467–86. 14 Matthew K. Shannon, "American–Iranian Alliances: International Education, Modernization, and Human Rights during the Pahlavi Era" Diplomatic History 39, no. 4, (2015) 661. 15 "Soft Power,"Definition, pictures, pronunciation and usage notes, Oxford Advanced Learner's Dictionary. 16 Carol Atkinson, "Does Soft Power Matter? A Comparative Analysis of Student Exchange Programs 1980–2006" Foreign Policy Analysis 6 no. 1, (310) 2. 6 faithfully follow Dr. Nye's advice to further develop its relationship with the Shah's Iran. The previously mentioned Dr. Mathew Shannon notes the rapid and substantial growth of Iranian students in the United States stating, "The population grew from a mere five hundred in 1950, to upwards of fifty thousand in the late 1970, making them the largest national group of students in the United States."17 The significance of this cannot be understated. Upon graduating from American Universities these students returned to their homeland and played an active role in building the new modern Iran. It was on their shoulders that the "bulwark against Soviet expansion rested." It was the alumni of American universities that ran Iran's state oil company and made the plans for modernizing Iranian industry and infrastructure. These alumni would hold high positions in the nation's civil service, would serve as elected members of Iran's Majlis (Parliament), and crucial to Norwich as officers in the Iranian Military. While Iran benefited from this influx of a highly educated, professional class, the United States was able to stock the Iranian government with those sympathetic to the West. Norwich University first began accepting Iranian Midshipmen in the fall of 1976. President Loring Hart and his administration put a great deal of emphasis on naturalizing the Iranian Midshipmen to the University from the onset. Captain M. Ali Foroughizadeh an Iranian Imperial Navy officer stationed in Arlington, Virginia, would serve as the main point of contact between the University and the Iranian government, for much of the program's existence. The correspondences between Captain Foroughizadeh and President Hart provide unique insight into its early development. The process of integrating Iranian students into the Corps of Cadets and the greater University community did not begin in August with the traditional start of the school year, but rather in June of 1976. As detailed by William F. Beatty, the Executive Assistant to the 17 Shannon, American-Iranian Alliances, 662. 7 President, "Currently fifty-two Iranian midshipmen are undergoing an intensive English, Mathematics and Physical education study program at Norwich in preparation for their enrollment next September as members of the class of 1980."18 Clearly even from the onset of its program Norwich was taking the proactive? steps to fully integrate the Midshipmen firmly into the Corps. Although at times it can become easy to forget, at the end of day Norwich is not merely a remote outpost of the US military but is a university with a long and storied tradition of academic excellence. As such, the importance of academic integration for the Universities Iran students cannot be understated. One of the key takeaways from VMI's tumultuous Iranian program was that failure to integrate the Iranian students in the classroom could have disastrous consequences. Thus, Norwich's faculty and administration made every effort to thoroughly integrate the Iranian students academically into the University. Associate professor Dr. Hollis D. McBride of the Engineering Department described the climate in the classroom stating "Conflicts between Irani and Americans in class have been few." Dr. Hollis does briefly pause his praise to note that the Iranian students seemed more inclined to help each other than their fellow American students, and does advise that having fewer Iranians per class would "reduce their dependence on each other."19 Yet in spite of these challenges Dr. McBride makes it abundantly clear he believes that the presence of the Iranian midshipmen had a profound and positive impact on the education of all students of all nationalities. McBride's praise for the program goes as far as to state, "Never have I seen a class of students work as hard as both Irani and Americans." He goes on to state "I am convinced that the example of the Irani working 18 William F Beatty, Letter to CDR Abghari, 4 November 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 19 Hollis D McBride, Memorandum to Dr. Hart and Dr. Chevalier, 15 July 1977. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 8 overcomes the more usual image of upperclassmen playing to encourage this premier academic effort I have witnessed in my ten years at Norwich."20 Great strides were also taken to properly integrate the Iranian midshipmen socially into the Norwich community. In one of his first memorandums regarding the arrival of Midshipmen, he encourages members of the staff to "host one or two Iranian students for an evening meal to socialize."21 The University also made a significant effort to integrate Iranian and American students within the barracks. The previously mentioned engineering professor, Dr. McBride makes a strong case for integration stating, "An American roommate is a plus, but even more important is an American roommate of the same major."22 The logic behind this is self-evident. Forcing American and Iranian students to live together in close quarters means they are far more likely to develop close cross-cultural bonds, which in turn are "beneficial to both the American and the Iranian."23 Having an American roommate also forced the Iranian Midshipmen to use English on a daily basis and forces them to not to rely solely on their fellow Iranians. Sports and extracurricular activities also played a role in assimilating the midshipmen into the campus community. Many of the Iranian midshipmen played soccer both competitively and recreationally for the school. President Hart remarks upon the Midshipmen in a memorandum he sent to Iranian Admiral Farzaneh regarding the filming of a promotional video stating, "we might arrange a game for the Iranian Cadets on the soccer team." 24 While it is easy to overlook such trivial events as American and Iranian athletes competing together, surely the connections and 20 Hollis McBride, Memorandum to Dr. Hart and Dr. Chevalier. 21 Loring E Hart , Memorandum to Distribution Lists I and II, 15 June 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 22 Hollis McBride, Memorandum to Dr. Hart and Dr. Chevalier. 23 Hollis McBride, Memorandum to Dr. Hart and Dr. Chevalier. 24 Hart, Loring E, Memorandum to Vadm D. Farzaneh, 11 December 1978. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 9 comradery built on the playing field can overcome linguistic and cultural differences and help the Iranian students merge into the student body. Despite these successes, a shadow lurked over the entirety of the program. One with a limited knowledge of world history, might wonder why the program was so short lived if it was clearly so successful The simple answer: revolution. Despite the guise of modernization beneath Iran's surface, discontent was brewing against the Shah and his authoritarian regime. Chief among the dissenters' grievances were not only the brutal human rights violations committed by the secret police (SAVAK), but the perception of American imperialism, and backlash for the increasingly secular nature of Iranian society. By 1978, demonstrations against the Imperial government occurred across all the nation's major cities with riots targeting symbols of the West such as banks, cinemas, and restaurants.25 The nation's Shiite clergy also played a major role in the overthrow of the Imperial regime. With his health failing and the regime crumbling, the Shah and his family were forced to flee in exile in Egypt. Simultaneously the Ayatollah Khomeini, a leader of the Shiite clergy, and an outspoken critic of the government returned from exile just in time for revolutionary forces to capture Tehran.26 Meanwhile back in Northfield, President Hart's administration was doing everything within its power to look after the best interests of the Iranian Midshipmen. Initially it appeared that the situation was under control. As late as November 9th, 1979, the Institute of International Education wrote "Foreign students who are in this country to pursue an and who are lawfully engaged in that pursuit, properly enjoy the protection of the laws which allow them to enter the 25 Said Amir Arjomand, "The Causes and Significance of the Iranian Revolution." State, Culture, and Society 1, no. 3 (1985): 41–66. http://www.jstor.org/stable/20006816. 26 Said Amir, Arjomand,"The Causes and Significance of the Iranian Revolution." 10 country and permit them to remain."27 Five days later University Vice President James Galloway echoed similar sentiments, writing that the state department had advised him that "State and Defense were discussing Iranian students, but were oriented towards those Iranians holding student visas, not members of an organized program. Current guidance was the status quo, and to maintain a low profile."28 Unfortunately this good news would be short lived. November 4, 1979 saw the storming of the American embassy in Tehran and the capture of 52 American hostages, President Carter issued an executive order calling for all the review of all educational visas for Iranian students in the United States.29 The optimism that the program could survive evaporated Almost overnight. Less than a month later Vice President James Galloway was forced to send out a new memo with a far different tone. While the November addition spoke of maintaining the status quo, the updated version stated, "On the basis of official order from the Iranian government or the U.S government, the Norwich Naval Contingent is directed to terminate their school and depart or prepare to depart."30 Throughout the winter of 1980 the campus held its breath bracing for the inevitable. On April 7, this finally occurred when "The State Department severed diplomatic relations with Iran and ordered the deportation of "employees" and "officials of Iran by Friday April 11 at midnight."31 The next day on April 8, a glimmer of false hope set in, with 27 Hughes Jenkins, "Educational Exchange Agencies Urge Care in Coping with Iranian Students in U.S, 9 November 1979. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 28 James V Galloway, Memorandum For Record, 14 November 1979. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 29 Will Tiague, Hostages of the Crisis: Iranian Students in Arkansas, 1979-1981. The Arkansas Quarterly 77, no. 2 (2018): 113-130. 30 Harry A Buckley, Contingency Plan for the Iranian Crisis, 4 December 1979. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 31 Philip R Marsilius, Sequence of Events, 7-14 April 1980. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. 11 the general feeling being that "the Iranian Cadets would be classified as students rather than as officials or employees, and would therefore be permitted to finish the semester."32 However, the next day such hopes would be shattered when the State department reversed its decision and labeled the Midshipmen as Officials of Iran. Two days later on April 10, President Hart briefed the Corps on the unfolding situation. In a testament to the successes of the program when Iranian Midshipmen " c/CPT Kazem Yahyapour bid farewell to the American students on behalf of the Iranians students, he received a standing ovation from the Corps. Faculty, and staff."33 On April 12, 1980 the Iranian program would officially die with the departure of 80 Iranian students and officials. The last communication upon touchdown in Tehran was simple and sober, "We received and are warm and ok."34 The Iranian program was over. Since that infamous date in 1980 the relation between the United States and the Islamic Republic of Iran have only grown worse. Today it would be unimaginable for Midshipmen from Iran to study at an American military college such as Norwich University. Yet only fifty years ago between 1976 and 1979 over 80 Iranian students were fully integrated, academically, socially, and militarily into the Norwich community. Although the program ended in tragedy, in a world where military cooperation continues to grow increasingly important, the story of success remains relevant and worth remembering. 32 Philip R Marsilius, Sequence of Events. 33Philip R Marsilius, Sequence of Events. 34 Philip R Marsilius, Sequence of Events. 12 Bibliography Primary Sources Beatty, William F. Letter to CDR Abghari, 4 November 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Galloway, James V. Memorandum For Record, 14 November 1979. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Hart, Loring E. Memorandum to Distribution Lists I and II, 15 June 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Hart, Loring E. Memorandum to Vadm D. Farzaneh, 11 December 1978. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. LaFond, Paul. Memorandum to Loring Hart, 7 May 1976. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Marsilius, Philip R, Sequence of Events, 7-14 April 1980. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. McBride, Hollis D. Memorandum to Dr. Hart and Dr. Chevalier, 15 July 1977. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Jenkins, Hughes. "Educational Exchange Agencies Urge Care in Coping with Iranian Students in U.S, 9 November 1979. President Hart's Files on the Iranian Students, Norwich University Archives, Northfield Vt. Secondary Sources Arjomand, Said Amir. "The Causes and Significance of the Iranian Revolution." State, Culture, and Society 1, no. 3 (1985): 41–66. http://www.jstor.org/stable/20006816. This article provided valuable information about the events of Iran's Islamic Revolution. It discusses the initial protests and the peoples major grievances against the secret police, the west, and the increasing secular nature of society. Babayan, Kathryn. "The Safavid Synthesis: From Qizilbash Islam to Imamite Shi'ism." Iranian Studies 27, no. 1/4 (1994): 135–61. 13 This article provides information on the history of Islam in Iran. Initially it was used to help inllistrate how historically Iran has been very stratiegic, but it also serves to introduce Islam, which would prove to be a very important factor in the 1979 Revolution. Carol Atkinson, "Does Soft Power Matter? A Comparative Analysis of Student Exchange Programs 1980–2006" Foreign Policy Analysis 6 no. 1, (310) 2. This article helps to illustrate the significance of soft power, particularly the use of student exchange programs to project American power across the globe. Clearly this is very relevant to Norwich's Iranian exchange program, and helps to explain its significance and one of its purposes. Bush, George W. "2002 State of the Union ," National Archives and Records Administration (National Archives and Records Administration, January 29, 2002), https://georgewbush-whitehouse.archives.gov/stateoftheunion/2002/. Used in the introduction to help establish the very hostile relationship that that United States currently has with the Islam Republic of Iran. "Iranian Politicians Set Fire to US Flag in Parliament," BBC News (BBC), accessed November 4, 2021, https://www.bbc.com/news/av/world-middle-east-44055625 Used in the introduction to help establish the very hostile relationship that that United States currently has with the Islam Republic of Iran. Shannon, Matthew K. "American–Iranian Alliances: International Education, Modernization, and Human Rights during the Pahlavi Era" Diplomatic History 39, no. 4, (2015) 661. Provides valuable background information into the nature of the Iranian state, and the Iranian education system during the Shah's reign. Key to Norwich, this article mentions exchange programs particularly those with the United States. Moyara de Moraes, Ruehsen. "Operation 'Ajax' Revisited: Iran, 1953." Middle Eastern Studies 29, no. 3 (1993): 467–86. Discussed the Anglo-American coup which overthrew Iran's democratically elected government, and handed the Shah absolute power. Played a vital role in creating the Iranian government which Norwich cooperated with, it is also key to understand the underlying factors behind the 1979 Revolution. Paine, Chris, and Erica Schoenberger. "Iranian Nationalism and the Great Powers: 1872-1954." MERIP Reports, no. 37 (1975): 3–28. Helps to establish the early history of Iran, and its history of Anglo-American domination. 14 "Soft Power,"Definition, pictures, pronunciation and usage notes, Oxford Advanced Learner's Dictionary. Provides a definition for soft power, to help illustrate its significance to the United States particularly in a strategic ally such as the Shah's Iran. Tiague, Will. Hostages of the Crisis: Iranian Students in Arkansas, 1979-1981. The Arkansas Quarterly 77, no. 2 (2018): 113-130. Provides context for the Iranian hostage crisis, President Carter's reaction, and the effects that it had on the vast number of Iranian students studying in the United States. Yarbrough, Tinsley E. Federal Alienage Doctrine and the Iranian Student Litigation. Human Rights Quarterly 4, no. 2 (1982): 243–60. Discusses the legal issues facing Iranian students facing deportation in the United States following the Islamic Revolution.
DON RIGOBERTO'S SEXUAL FANTASY IN MARIO VARGAS LLOSA IN PRAISE OF THE STEPMOTHER Dinda Anisa Larasati English Department, Language and Arts Faculty, State University of Surabaya dinda_kdy@yahoo.com Drs. Much. Khoiri M.Si. English Department, Language and Arts Faculty, State University of Surabaya much_choiri@yahoo.com Abstract Sexuality is seen as sinful thing which influences Christian to behave and act based on the society role. Some people tend to repress their sexual fantasy because sexual fantasy is a genre that can lend itself very easily to the sexual elements of life, the depraved, the debauched, or the downright saucy and controversial. The aim of this study is to describe how Don Rigoberto's sexual fantasy depicted in Mario Vargas Llosa In Praise of the Stepmotherand and to reveal how Don Rigoberto's sexual fantasy can impact on his wife. The data are in the form of quotation, fragments, and dialogues or monologues that indicated the thoughts and action concerning form of sexual fantasy.The data is applying the theory of fantasy by Jacques Lacan and supported with Baron. This study also uses the concept of anxiety and psychological trauma. Initially, Don Rigoberto obsessed with three things: Physical Hygiene, sex with his wife, and erotic paintings. He devotes a day a week for the care of a different member or organ.His love life with Lucrecia in a world more imaginary than real, of what he wishes she were than what she really is. He always lost in his dream which is imagined erotically things from some media and those can support his sexual fantasy. Don Rigoberto forced his wife (to have) sex with another man which can be deeply shocking for her. Those facts are proof that Don Rigoberto get his satisfaction from his obsession. Keywords: sexuality, fantasy, desire, anxiety, psychological trauma Abstrak Seksualitas dipandang sebagai hal yang berdosa yang mempengaruhi Kristen untuk bersikapdanbertindak berdasarkan peran masyarakat. Beberapa orang cenderung untuk menekan fantasi seksual mereka karena fantasi seksual adalah genre yang dapat menjatuhkan diri seseorang ke dalam unsur-unsurseksualkehidupan, buruk, yang tidak bermoral, dan kontroversial. Tujuan dari skripsi ini adalah untuk menggambarkan bagaimana fantasi seksual Don Rigoberto yang digambarkan di Mario Vargas Llosa In Praise of the Stepmother dan mengungkapkan bagaimana fantasi seksual Don Rigoberto yang berdampak pada istrinya. Di dalam data tersebut terdapat kutipan, fragmen, dan dialog atau monolog yang menunjukkan pemikiran dan tindakan mengenai bentukfantasi. Untuk data seksual menerapkan teori fantasi dari Jacques Lacan dan didukung dengan Baron. Analisis ini juga menggunakan konsep anxiety dan psychological trauma. Pada awalnya, Don Rigoberto terobsesi dengan tiga hal: Fisik higienis, seks dengan istrinya, dan lukisan erotis. Dia menjadikan satu hari dalam seminggu untuk melakukan perawatan pada anggota atau organ badan yang berbeda. Kehidupan cintanya dengan Lucrecia di dunia lebih kepada imajinasi daripada kenyataan, apa yang dia ingin adalah berada dari apa yang sebenarnya dia. Dia selalu terjebak dalam mimpinya, yaitu dengan membayangkan hal-hal erotis dari beberapa media dan mereka dapat mendukung fantasi seksualnya. Don Rigoberto memaksa istrinya untuk berhubungan seks dengan laki-laki lain dan hal itu sangat mengejutkan istrinya.Faktanya adalah bukti bahwa Don Rigoberto mendapatkan kepuasan melalui obsesinya. Kata kunci: sexuality, fantasy, desire, anxiety, psychological trauma Introduction Human cannot be separated with needs. There are three basic drives such as eating, sleeping, and sex. As a normal human being, sexuality is given from the beginning ourselves. Nietzche asserts that "we are not only rational out being, but we are also full of desire, with the drives and hidden longing, which formed, our ideas and views about the world" (O'Donnel, 2008: 41).In reality, sexuality describes a huge range of activities. This is half of dialectic, anything can be sex because sex has whatever meaning human experience moment by moment, and sex hasan infinite range of meanings because the scope of activities that can properly be called sexual is so vast. Lisa Downing says that sexuality is something that we ourselves create-it is our own creation, and much more than the discovery of secret side of our desire. Sex is not fatally, it is possible to creative life (Downing 2008:104). Sex can make people different. It means that sex is created because of love, relationship, and perhaps necesity or situation. Sex is not taboo anymore in this modern era, but sex can help viability in science. In psychoanalyticterms, sexuality plays an enormously influential rolein psychological development.From a veryearly age, how people experience their bodies in relation to the physical world as well as to the internal stimuli and feelings their bodies generate profoundly effects how they view the world and themselves.In particular,conscious and unconscious fantasies are about human's bodies and sexuality influence the development of stable patterns of sexual identity, and with that,sexual behaviors.(http://psychoanalysis101.org/psycho-sexual-development/). Sexual fantasies play a central role in mental life, despite – or rather: because of – the fact that they in particular meet the fate of repression, which is why Freud calls them "the weak spot in our psychical organization" (Freud, 1911: 223). This repression creates the psychic disposition towards neurosis in man, the conflict between unconscious desires and conscious control. That sexuality is actually the weak spot in man's psychical organization is proven by the fact that many (predominantly male) users of the Internet cannot resist the temptation to seek sexual pleasure via the computer screen. Sex is still the biggest business on the net, offering such a massive electronic hallucination of gratifying objects. In Praise of the Stepmother with Mario Vargas Llosa as the author, Mario Vargas Llosa, which reached worldwide recognition with his novels Pantoja and the Special Aunt Julia and the Scriptwriter, The War of the Worlds.In Praise of the Stepmother, made a foray into a genre that is emerging in many of his works, the erotic. Sex in the novels may offend, amuse, or worse. As this study has come toexpect of VargasLlosa as the author of this novel, he uses a precisely structured form to present the distinct components of his story. Structure can be invaded or skewed which is an interesting way to make point innocence and morality are strong themes which are compound in unusual ways. In Praise of the Stepmother with Mario Vargas Llosa as the author, Mario Vargas Llosa, which reached worldwide recognition with his novels Pantoja and the Special Aunt Julia and the Scriptwriter, The War of the Worlds.In Praise of the Stepmother, made a foray into a genre that is emerging in many of his works, the erotic. Sex in the novels may offend, amuse, or worse. As this study has come toexpect of VargasLlosa as the author of this novel, he uses a precisely structured form to present the distinct components of his story. Structure can be invaded or skewed which is an interesting way to make point innocence and morality are strong themes which are compound in unusual ways. Mario Vargas Llosa was born in Arequipa, the second city of Peru, in March 1936.In 1958 he travelled to Paristhanks to a prize won in a short story competition,and on his return to Lima he completed his higher education and received a grant to transfer to theUniversity of Madrid. A few months after arriving in the capital of Spain,he left his studies for the doctorate and settled in Paris, where he was to stay for seven years.In 1963 he published his first great novel, "La ciudad y los perros", with which he won several literary prizes, among them the "BibliotecaBreve" and "La Crítica".It has currently been translated into more than twenty languages. His second major work wastobe"La Casa Verde",published in 1966, the same year he moved to London, wherehewould teach at the university and contribute frequently to newspapers and magazines.Afterwritingone of his fundamental novels, "Conversación en la catedral", VargasLlosatravelled to Barcelona in 1970, where he was to stay for almost five years until in 1974 he put an end to his European exile and returned to Peru with the intention, for the first time, of settling down there. In 1973, his novel Pantaleóny lasvisitadoras, which was adapted for the cinema two years later, had come out.In 1975 he began a seriesof projects related with the cinema and in March of that year he was elected as numerary member of the Peruvian Academy of the Spanish Language. Two months later, he was appointed as president of Pen Club International, a post which he would hold until 1979. Mario Vargas Llosa began his political activity in 1987, due to the nationalization of thefinancial system in Peru. As candidate for the presidency of his country in 1989 with the centre-right coalition Frente Democrático, he was finally defeated in the ballot by Alberto Fujimori. Apart from the works mentioned above, the following works may be highlighted among the output of Mario Vargas Llosa: the novels "La tía Julia y el escribidor" (1977), "La Guerra del fin del mundo" (1981), "Historia de Mayta" (1984), "Quiénmató a Palomino Molero?" (1986), "El hablador" (1987) and "Elogio de la madrastra" (1988); in his facet as a playwright he has written "La señorita de Tacna" (1981), "Kathie y el hipopótamo" (1984) and "La Chunga" (1986) and as an essayist he has published important works such as "GarcíaMárquez: historia de un deicidio" (1971) and "La orgíaperpetua:Flauberty Madame Bovary" (1975)."In Praise Of The Stepmother" (1988). Mario VargasLlosa was a conservative candidate (Fredemo, the Democratic Front) for the Peruvian presidency in 1990.The development of his political convictions, from a sympathizer of Cuban revolution to the liberal right, has astonished his critics and has made it impossible to approach his work from a single point of view. Sabine Koellmann has noted that the publication of Vargas Llosa's La Fiesta del Chivo (2000, The Feast of the Goat) confirmed, "thatpolitics is one of the most persistent 'demons' which, according to his theory, provoke his creativity." (Vargas Llosa's Fiction & the Demons of Politics, 2002) Vargas Llosa was defeated by Alberto Fujimori, an agricultural engineer of Japanese descent, also a political novice, but who had a more straightforward agenda to present to the voters. Anunexpected twist in the plot of this political play occurred in 2000, when President Fujimori escaped to his ancestral homeland Japan after a corruption scandal. From 1991 to 1992 Mario Vargas Llosa worked as a visiting professorat Florida International University, Miami and Wissdens chafts kolleg, Berlin. In addition to the Nobel Prize, the author has received many other honors. Among other distinctions, he has received the "Ramón Godoy Lallana" Journalism Prize, the LiteraryPrize of the Italo-American Institute, the "Pablo Iglesias "LiteraturePrize, the "Hemingway"Prize, the Gold Medal of the Americas and the Max Schmidheiny Foundation Liberty Prize. Already a classic due to the scope and quality of his work, he is one of the Spanish-American writers who has most consistently and determinedly brought theresources of the 20th century literary avant-garde inour language. In Praise of the Stepmother is one literary work by Mario Vargas Llosa. In this novel, there are found many expressions by the characters Don Rigoberto is an art connoisseur and erotic explorer night by night as well as man obsessively devoted to the care of his own body. Lucrecia as a second wife of Don Rigoberto, she is a beautiful and passionate woman, and then his son Alfonso, known as Fonchito.The first character introduced to us in the novel In Praise of the Stepmother, Vargas Llosa takes on an expedition through the mind of Don Rigoberto, day by day an insurance executive, by night a pornographer and sexual enthusiast. Don Rigoberto is a member of Lima's well-heeled bourgeois society. He is the kind of man one sees at board meetings and cocktail parties. But by night Don Rigoberto sheds his conventional skin to pursue his true passions: erotic art and sexual fantasy. Rigoberto's love for Lucrecia is an addiction of her body parts, a revere or an objectification of her physical persona. This way of looking at love and people and considers women as their property, rather than primarily enjoying her body is part of her. He loves her as a compilation of body parts. In the novel In Praise of the Stepmother signals the historical endpoint to the popularity of the 1960s liberationist sexuality, especially female sexuality as a carrier of a symbolic charge of social freedom. This novel is a thought-provoking fantasia on innocence, sex, and art. It opens with a portrayal of a liberated sexual woman, Lucrecia, who is adored by her husband, Rigoberto. Don Rigoberto's and Lucrecia's erotic exploits which are modeled after paintings that are actually printed in the book. Through this story, Mario Vargas Llosa explores the ideas of the erotic imagination. Rigoberto creates erotic fantasies, the erotic and sexual lives of Rigoberto and Lucrecia, much of which is driven by Rigoberto's fantasies formulated from paintings. In this Story, Fonchito seems to corrupt innocence, live a harmonious sexual fantasy with her stepmother. Nothing inhibits them or stops them. Dona Lucrecia and stepson Fonchito are revealed in every detail. There is erotic novel. Sexual Fantasy of Rigoberto, a harmonious sexual fantasy of Alfonso to his stepmother, and sexual attraction Lucrecia to Alfonso. Sexual Fantasy is chosen where this study is taken because of the interesting case and the impact which make the wife had anxiety and psychological trauma. From the reading, the study can be interested in focus on the sexual fantasy experienced by the main character. In the novel In Praise of the Stepmother, this study would like to learn more, how Don Rigoberto's sexual fantasy. What are the activities of Don Rigoberto's Sexual Fantasy, what are the factors,the causes and the theory, which is matching discuss those cases istheory of Fantasy of Jacques Lacan, supported theory fantasy of Baron. Many kinds of Sexuality, there are Sexualization, Sexual health and Reproduction. Sexual identity, sensuality and intimacy. Sensuality involves human's level of awareness, acceptance and enjoyment of men's own or others bodies. In the circle of sexuality, fantasy is part of sensuality. Sensuality is match with Don Rigoberto's Sexual Fantasy. In the novelIn Praise of the Stepmother, Many statements which can prove that Don Rigoberto have an extreme sexual fantasy. One night, he said that Lucrecia is his fantasy not his wife. He imagined that Lucrecia is Venus, a person who is his fantasies. For the tittle of my thesis is "Don Rigoberto's Sexual Fantasy.DonRigoberto has an extreme sexual fantasy, he obsesses of three things: Personal Hygiene, sex with Lucrecia, and erotic paintings. His sexual fantasy actually impact on his wife, according to me that's so interesting.Because of those, thus this study directed to more examine about Don Rigoberto's sexual fantasy. In analyzing Don Rigoberto's sexual fantasy and Don Rigoberto's sexual fantasy impact on his wife, it is used some related concept and two theories. In this thesis, the problem statement is divided into two. The first problem statement deals with Don Rigoberto's sexual fantasy reflected in this novel. While the second problem deals with How does Don Rigoberto's sexual fantasy impact on his wife in Mario Vargas Llosa"In Praise of the Stepmother. Those problems can be analysed by using the theory fantasy of Jacques Lacan, supported with Baron and also using concept of anxiety and psychological trauma. The first statement is how Don Rigoberto's sexual fantasy reflected in In Praise of the Stepmother. This statement will use theory fantasy of Jacques Lacan and suppoeted with theory fantasy of Baron. Through fantasy, the subject attempts to sustain the illusion of unity with the other and ignore his or her own division. Fantasy originates in "auto-eroticism" and the hallucinatory satisfaction of the drive. Fantasies are the way in which subjects, structure or organize their desire: it is the support of desire. Then the second statement isHow does Don Rigoberto's sexual fantasy impact on his wife in Mario Vargas Llosa"In Praise of the Stepmother. This statement will also apply the theoryof fantasy of Jacques Lacan and also apply the concept of anxiety and psychological trauma. Actually, there are two impacts of Don Rigoberto's sexual fantasy. Methods Research methodolgy that used in this analysis here must be qualified as an applying in literary appreciation. The thesis is regarded as a descriptive-qualitative study and uses a library research.The data obtained to answer research question study. This study uses novel of Mario Vargas Llosaentitled In Praise of the Stepmother that published in 1988 as the data source of this study. The datas are in the form of direct and indirect speech of the characters, dialogues, epilogues and quotations which indicate and represent aspect of infidelity and love and will which is experienced by the main character. This thesis is using the library method in collecting the data. It does not use the statistic method. That is why it is not served in numbering or tables. Library research used an approach in analyzing this study. The kind of library research which is used here is intensive or closely reading to search quotations or phrases. It also used to analyze the literary elements both intrinsic and extrinsic. The references are taken from library and contributing ideas about this study from internet that support the idea of analyzing. Some steps of how the data is analyzed will be described as follows: Classification based on the statement of the problems. This classification is used to avoid the broad discussion. There are two classifications in this study. They are sexual fantasy and the main factor that lead to his sexual fantasy. Describing Don Rigoberto's sexual fantasywhich is stated from the quotations or statements by using theory of fantasy to be applied to the data.Describing Don Rigoberto's sexual fantasy impact on his wife which is stated from the quotations or statements by using theory of fantasy and the concept of anxiety and psychological trauma will to be applied to the data. RESULT 3.1 Reflection of Don Rigoberto's Sexual Fantasy Based on theory of fantasy of Baron, fantasy can be a kind of activity that permits the subject to escape, however briefly from the stresses and boredom of the subject's life. Schaefer and Millman support this theory by stating that fantasies provide "a strong feeling of satisfaction in comparison to the bedroom of everyday activities" as an escape of the continued failure of difficulties in their everyday life". (Baron, 1995: 31-32) Fantasy is used as an escape from responsibility or a harsh home or work situation. Then the person needs to begin to pray for favor on the job or at home, asking God to open hearts to each other's needs and binding out demonic forces. We have had great reports from this kind of prayer. Then as the stress is lifted and the relationships are made stronger, the desire to escape lifts as well. The fantasies are no longer a problem. 3.1.1.1 Fantasy escape Don Rigoberto from stresses and boredom of his life Don Rigoberto is the dull though the prosperous manager of a Lima insurance company. His life represented in the eyes of others, that routine existence as the general manager of an insurance company, he has many activities. Well-earned that he stress or bored with some of his activities as an insurance executive. He had found in his solitary hygienic practiced and all in the love of his wife appeared to him to be sufficient compensation for his normalcy. He creates erotic fantasies, and Lucrecia lives out the character she has been chosen to be. "Just a pinch of wisdom to use as a momentary antidote to the frustrations and annoyances that seasoned existence. He thought: Fantasy gnaws life away, Thank God" (Llosa, 1988: 104) From the statement above, Rigoberto seems like indeed the power of wisdom can be used as a momentary antidote to the frustrations and annoyances that seasoned existence, but it just can be a momentary antidote now the make frustrations and annoyances gnaws away. As a manager of a Lima insurance company, it is definitely that he has 1many activities so he needs something which can release him from the frustrations and annoyances. The word "Fantasy gnaws life away, Thank God", it shows that Don Rigoberto thinks that fantasy helped him out of the frustrations and annoyances thing which is part of being an insurance executive. He was thankful, fantasy make he enjoyed or even suspected as happiness. There is proof that Fantasy can escape from the stresses and boredom of life "[.] as though happy to rid itself of the policies and the detritus of the day's bussiness.Ever since, in the most secret decision of his life-- so secret that probably not even Lucrecia would ever be privy to it in its entirity-he had resolved to be perfect for a brief fragment of each day. (Llosa, 1988: 54) Rigoberto is obsessed with Personal Hygiene, he assumes that is the part of his sexual fantasy to get pleasure. According to him, the nightly ritual can as a though happy to a rid himself from detritus bussiness day. He had resolved to be perfect for a brief fragment of each day through nightly ritual. 3.2 Don Rigoberto's Sexual Fantasy impact on his wife In the novel In Praise of the Stepmother, Don Rigoberto focuses so completely on hisrich fantasy life - a fantasy life,multiplyed by his reproductions of smutty nudes by the likes of Titian and Jordaens (left), that he doesn't notice the risks that cause Dona Lucrecia anxiety. In this novel, there is no communication between Don Rigoberto and Dona Lucrecia about sexual fantasy, Don Rigoberto's intend for his wife disrupts into his fantasies—at times he is too impaired by sorrow and desire to go on. "The queen sometimes awakens at night, overcome with terror in my arms, for in her sleep the shadow of the Ethiopian has once again burst into flame on top of her." (Llosa, 1988: 20) This quotation above describes that Lucrecia feels anxiety, she always pictured events that foregoing Don Rigoberto forced Dona Lucrecia sex with Atlas, Don Rigoberto assumes that Atlas is the best endowed of his Ethiopian slaves. It can be explained through this statement : "One night-I was drunk-I summoned Atlas, the best endowed of my Ethiopian slaves, to my apartments, merely to confirm that this was so. I had Lucrecia bow down before him and ordered him to mount her.Intimated by my presence, or because it was too great a test of his strength, he was unable to do so. Again and again I saw him approach her resolutely, push, pant, and withdraw in defeat" (Llosa, 1988: 15) Fantasy is 'that thing is what can satisfy me' – objectivation of desire.This line of thought on perverse fantasy, that fixates desire onto a certain object and thus screens off from its infinity, make the interpretations understandable From the quotation above Don Rigoberto was fantasized and forced his wife into having sex with Atlas. There looks Rigoberto so rude to treat his wife, he made his wife as an object because he wanted to prove whether Atlas, the best endowed of my Ethiopian slaves can equals him and he merely to confirm that this was so. The Fantasy that is shown by Don Rigoberto occurs when he decided his wife sex with Atlas. Don Rigoberto feels satisfied and relieved after that incident. Because of that incident, he discovered that no one can equal him. Butitis notperceivedby Lucrecia, she feels not enjoy. "In order to fulfill my part of the offer, we were obliged to act with the greatest discretion. That episode with Atlas, the slave, had been deeply shocking to my wife. (Llosa, 1988: 19) In the statement above, He has also realized that the episode with Atlas makes Dona Lucrecia shock. In contrast, Don Rigoberto does not appreciate his wife. He just concerned with his fantasy and never regards Dona Lucrecia's pleasure. There is no communication between Don Rigoberto and Dona Lucrecia about sexual fantasy, Rigoberto just concerned with his fantasy and Dona Lucrecia only silent to face it. She did not attempt to revolt or reject command from her husband She never stated that she does not enjoy it. She feels anxiety until it can be said that she have psychological trauma. Lucrecia always awakens at night just because it was too painful for her. For Lucrecia it would be a deeply shocking. In the chapter twelve, Labyrinth of Love.Lucrecia expresses her feelings that she felt as fortunate victim, she just an inspiration. Until there show that she fantasized with herself "I know this because I have been the fortunate victim; the inpiration, the actress as well [.]. Myself, erupting and overflowing beneath your attentive libertine gaze of a male who has officiated with competence and is now contemplating and philoshopizing (Llosa,1988: 118) It shows that Dona Lucrecia feels that she just an actress who serve her husband for being another person, not being herself while they having sex. She was erupted and overflows, she wants to vent all her anxiety. Until she actually made masturbation to gained the power of magic, mystery and bodily enjoyment. "That woman is what I am, slave and master, you offering. Slit open like a turtledove by love's knife: I: cracked apart and pulsing. I:slow masturbation. I: flow of musk. I: labyrinth and sensation. I: magic ovary, semen, blood, and morning dew.That is my face for you, at the hour of the senses. I am that when, for you, I shed my everyday skin and my feast-day one. That may perhaps be my soul. Yours." (Llosa, 1988: 119) In the statement above, it is clear that Lucrecia uncomfortable with the sexual fantasy of his husband. She even feels the pleasure through masturbation. Because throughon masturbation, she could be herself, not as an actress or inspiration of her husband. Conclusions This last chapter is drawn to sun up the results of the analysis, which is presented in the form of summary. In this chapter, the conclusion will be divided into two, in line with the statement of problem. The first conclusion in terms of Don Rigoberto's sexual fantasy. For the second conclusion is Don Rigoberto's sexual fantasy impact on his wife. From the analysis that has been in the previous chapter, it can be conclude in the first conclusion that Don Rigoberto obsessed with three things, they are personal hygiene, sex with his wife and erotic paintings. Based on Don Rigoberto's it is found out that there are many habits and factors which are espouse his sexual fantasy. Besides, his character is his sexual fantasy done for his pleasure and cause of his desire. As aLima manager insurance, Rigoberto definitely has many activities, multiple frustrations and annoyances. So, the fantasy can help to escape him from that. In this study also reveal that Fantasy can make Rigoberto to be wise. He had rediscovered that wisdom all by himself, on his own and at his own risk. He did many habits like imagining erotically things about the media then sets the intent of those media into his mind.He reduces his wife as an object. He determines himselfbecome someone who is in the media, he proud of person in the paintings which can inflame his subject's imaginings then he changes himself as that person. In the novel In Praise of the Stepmother learn of the erotic and sexual lives of Rigoberto and Lucrecia, and which is driven by Rigoberto's fantasies formulated from paintings and other media. He showers her with affection, but the reader is left wondering if he truly knows her, or if he has created an illusion of her. Don Rigoberto's Sexual Fantasy happened because of any media, and he enjoyed his sexual fantasy by any media, like painting, poet and tried to take it into his mind, then reveal to his wife. His love life with Lucrecia in a world more imaginary than real, of what he wishes she were than what she really is. Don Rigoberto assumes that his wife is like another person who is in his mind, not the realism of his wife's self. He always lost in his dream which is imagined erotically things from some media and those can support his sexual fantasy. Don Rigoberto is compulsive about his personal cleanliness and his bodily functions. He appreciates them as impressive and necessary. He devotes a day a week for the care of a different member or organ: Monday, hands; Tuesday, feet; Wednesday, ears; Thursday, nose; Friday, hair; Saturday, eyes; Sunday, skin. Don Rigoberto is a sensualist of the highest order and, nightly, he and his wife have erotic heights. He did nightly ritual,all of those are the parts of his sexual fantasy. The pictures and roses of the painting are as an inspiration for him while having sex with his wife. Sexual fantasy can have a profound impact on a person's emotions. Sexual fantasy is articulated with anxiety and it is closest proximity to the psychological traumatic real, Lucrecia always be object of Rigoberto's sexual fantasy, she forced sex with Atlas, the best endowed of Ethiopian slaves. It shows that Don Rigoberto never worried about Lucrecia's anxiety. He actually lets Lucrecia having sex with another man, just for create pleasure Dona Lucrecia as his wife feel that she just an actress who serve her husband for being another person, not being herself while they having sex. She actually made masturbation to gained the power of magic, mystery and bodily enjoyment. She also did sexual attraction to her stepson, Fonchito. Because while having sex with her stepson, she feels splendid orgasm she is to be herself, she felt the pleasure and comfort thats he never got while having sex with Rigoberto, with Foncho, she feels that he is innocence and not seems like Rigoberto who makes she is an object imagination of anyone and object for him to get sexual satisfaction and pleasure. Don Rigoberto can do sexual fantasy to his wife because of his desire, he obsessed of personal hygiene,erotic paintings, then he makes his wife become the object of his fantasy and he wants to get pleasure which can alter his mood to be happy. The act of Don Rigoberto that forced his wife with another man can be classified as sexual violence which is the cause of psychological trauma. So, with the sexual fantasy of Don Rigoberto can impact Lucrecia has psychological trauma. Refferences Allen, Richard. 1995. Projecting Illusion. Film Spectatorship and the Impression of Reality. Cambridge: Cambridge University Press. 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