Literature Review Human Resources Essay

This literature review will seek to research, analyse and evaluate two areas in human resource management (HRM) relating to Ethics and HRM, and Employment relations. Review 1 – Ethics and HRM The study of ethics in Human Relations Management (HRM) seems fraught with a plethora of historical and contemporary theories which seek to find clarity in an ever changing and challenging business environment. This review will identify the challenges faced by human resource professionals in ‘the honouring of duties owed to employees, stakeholders, and society in the pursuit of long-term wealth creation’ (Caldwell, Hayes, Bernal and Karri, 2008: 153) and will conclude that ethical HRM requires an understanding of the theories and principles; the organisational will to integrate these into their organisations strategic human resource management (SHRM) and the need to become a strategic partner in the management of the organisation. Ethical stewardship Smith and Hindman (2007: 16) claim that ‘Most people want to do the â€Å"right thing†. This is true in business as well as in life.’ To consider that this statement has merit, suggests that the debate over the theories and principles of ethics in HRM, can be seen to provide an understanding of how to achieve the best ethical outcome of a given situation. Winstanley and Woodall (2006: 9) clearly state that ‘Ethical reasoning is the ability to draw on relevant theory and frameworks to make more explicit the alternative interpretations and responses that could be made to inform decision-making’. Caldwell, Truong, Linh and Tuan (2011: 178) suggest that the responsibility falls in no small part, to the human resource professionals (HRPs) who ‘must encompass the moral perspectives of ethical stewardship and the unique contributions of transformative leadership’. Caldwell, et al. (2011) asserts that a key to long-term wealth creation is the alignment of the organisations strategic human resource management (SHRM) to their goals, values and priorities coupled with congruent and effective leadership. Smith and Hindman (2007: 21) suggest that the challenge for the human resource professional is to determine ‘how to create a set of employment policies that provide increasing standards of living, fair treatment and adequate job security for employees, while at the same time providing adequate profits for the firm?’ Reason would suggest that this is not enough. Ethical relativism suggests that morality is relative to the norms of each individual’s culture. Schumann (2001: 93) produces an argument ‘that the theory of ethical relativism should be rejected and that it is meaningful to search for universal moral principles’. Schumann (2001) asserts that his moral principles framework incorporating five basic ethical rules or principles, would provide managers guidance, whilst pursuing profits. And yet, Winstanley and Woodall (2006) argue that there are still no universally agreed upon ethical frameworks. Much debate centres on the ethics of organisations human resources. Greenwood, (2002) goes further to suggest concerns regarding the naming of human resources suggesting that this can place staff in the same position as office equipment. Employees are much more that the wheel that turns any organisation. Friedman (2009: 229) identifies ‘†¦ human capital as the critical value driver of corporate reputation’. This reminds us that organisational ethics can impact upon the organisations internal and external stakeholders. Winstanley and Woodall (2006:5) provides a strong case for the ethical ‘rearmament’ of HR professionals, by suggesting practical ways in which the exercise of ethical sensitivity and awareness might become a legitimate reference point alongside the prevalent recourse to arguments justifying ‘the business case’, strategic fit’ and ‘best practice’. Mathenge (2011: 8) makes the observation that ‘A tension often exists between a company’s financial goals and strategies to improve profits, and ethical considerations with right-behavior concerns’. Finally, Smith and Hindman (2007: 29) reinforce the important point that ‘Every business decision must succeed along three dimensions – it must be operationally effective, legally compliant, and morally defensible’. Conclusion ‘Organizations that integrate principles of ethical leadership with a strategic approach to HRM optimize the maximization of values and outcomes and achieve results which pay off long-term (Collins and Clarke, 2003: Caldwell et al, 2011). Friedman (2009: 240) sums up this review by stating that by positively impacting a corporation’s reputation ‘†¦HR managers need to occupy an influential position in the organizational structure, participate in strategic planning and develop efficient organizational practices that are aligned with corporate reputation goals’. Review 2 – Employment Relations Introduction The implementation of the 2009 Fair Work Act had hoped to ‘†¦ usher in a new regime of good-faith workplace relations, support for collective bargaining and vulnerable workers’ access to enforceable labour rights’ (Barnes and Lafferty, 2010: 1). This literature review will identify the salient changes wrought by the 2009 Fair Work Act and suggest that there has been a reduction of managers’ prerogatives to make decisions although Australia has not been forced back to the ‘bad old days’ of conciliation, arbitration and rolling strikes. Neo-liberalism The advent of the Fair Work Act can be considered to have its foundations in neo-liberalism, which espouses the values of deregulated and competitive market place providing free market outcomes. Neo-liberalism was considered to have its modest reforms under the Hawke administration through its 1993 legislation (Michelson, Jamieson and Burgess, 2009: Bray and Underhill, 2009). With the passing of the Coalition government’s Workplace Relations Act of 1996 and Workplace Relations Amendment (WorkChoices) Act of 2005, decollectivisation was advanced ‘by banning compulsory unionism, eliminating legal mechanisms to protect the right of unions to bargain collectively, expanding the availability of non-union agreements and sanctions against unauthorised strikes’ (Lee and Peetz, 1998). Prior to the election of the Rudd Labour Government in 2007, Australian union membership had fallen by 27 percent from 46 per cent in 1986 to 19 per cent in 2007 (Australian Bureau of Statistics, 2008). Fair Work Act Far from the hope of a ‘new regime of good-faith workplace relations’, ‘The Fair Work Act has been called ‘Work Choices Lite’ because it has much in common with the legislation it replaced’ (Barnes and Lafferty, 2010: 1 & 5). ‘Rather than overlapping with anti-discrimination legislation, the Fair Work Act provides a new set of general protections against attribute-based conduct by employers’†¦Ã¢â‚¬Ëœto provide a new regime of protection against workplace discrimination’ (Barnes and Lafferty, 2010: 6). Nelson (2009) and Barnes and Lafferty (2010) identify the key features or principles of the Fair Work Act, as: †¢ A safety net of minimum employment conditions †¢ Good faith bargaining obligations and rules †¢ Unfair dismissal provisions †¢ Family life balance †¢ The right to have representation †¢ Fair legislation and protection for low paid employees The Fair Work Act did not return Australia to the unfettered industrial strike action of earlier years. Protected industrial action, strikes and work-to-rules by employees would only be supported under the Act, during enterprise bargaining, if approved by a majority of employees through a mandatory secret ballot and after first obtaining a secret ballot order (Nelson, 2009). To emphasise this point, Hubbard (2012: 18) suggests that there is a large hole in the Fair Work Act that can be found in large scale and intractable disputes where the ‘†¦the legislation places no pressure on Australian employers to do more than sit politely at the table (surface bargaining)’. Hubbard (2012: 18) states that ‘†¦the right to take protected industrial action is hollow for many groups of workers’ where ‘A company makes an application to take away workers rights to protected industrial action, by initiating its own industrial action, which it then claims is significantly harming the Australian economy!’. Hubbard (2012: 19) goes on to state ‘on matters of workplace flexibility and ‘managerial prerogative’, members of Fair Work Australia (FWA) have been historically reluctant to impose conditions or restraints’, especially in economically significant industries, which was highlighted through the Qantas case. Conclusion The Fair Work Act has been shown to have not returned Australia to conciliation, arbitration and rolling strikes and has been shown above to have major weaknesses that can be exploited by organisations. Arbitration through the Act is limited to ‘last resort’ arbitration as outlined by the Australian Government Solicitor (2009). I conclude that although managerial prerogative has been eroded under the Fair Work Act, specifically through removal of the â€Å"operational reasons† clause, seen to be abused under Work Choices, all managerial options have not been removed. With the implementation of good faith bargaining replacing arbitration, there is a clear indication that HRM imbedded in the guiding principles of the Act, can reinforce ethical HRM.

Motivation Case Essay

Motivation – is the process encouraging people to work. There are many different aspects of the theory of motivation, and they are: 1. Historically, the early views on motivation to work, such as the policy of â€Å"carrot and stick†. The adherents of this view think that man is by nature lazy, sly, selfish, wants to give less and get more, hence there is a need to constantly force him to work and systematically encouraged to achieve high results. 2. Content theories of motivation (as an incentive to work discusses the inner satisfaction of man, his needs). 3. Procedural theories of motivation (motivation occurs during labor process). Let us consider each of the theories. The content theories of motivation include: †¢ A. Maslow’s theory; †¢ K. Alderfer’s theory; †¢ D. McClelland theory; †¢ F. Hertzberg’s theory; A Maslow (1908-1970) provides the following hierarchy that makes a need for person to work. And Maslow (1908-1970) offers the following hierarchy inducing the person requirements to work: †¢ Physiological needs (hunger, thirst) †¢ Needs for safety, stability and confidence in the future †¢ Needs for love, participation, communication †¢ Needs for recognition and self-confirmation †¢ Needs for self-actualization A. Maslow assumed that needs for this hierarchy arise gradually. Satisfying primary requirements, the person gradually becomes more motivated. People not simply satisfy one need for another, but move up, changing the importance for these or those needs. Self-actualization — is the highest degree of motivating the person; his desire and strong-willed actions. Self actualization — means to become a person that individual wants to be, reach the maximum level of realization that potentially available. The problem is that: †¢ The person often doesn’t know about the abilities, mission or talent †¢ The person knows about the abilities, but doesn’t want to develop them into work. (The will is weak) †¢ The person knows about the abilities, but can’t develop them into work for a number of reasons (material, physical, etc.) According to A. Maslow, the highest level of motivation can reach only about 1% of all people. According to K. Alderfer’s theory of need the person can be combined in three separate groups: †¢ Needs for existence (safety, physiological) †¢ Needs for communication (in belongings to any group and participation in any business, aspiration to be the family member, to have friends, colleagues, etc.) †¢ The need for growth (need for recognition, self-assertion and self-improvement) These requirements are also hierarchical, but movement can go in both directions (unlike Maslow’s hierarchy) †¢ Up, if the previous need is satisfied. †¢ Down, if they don’t satisfied with higher level. In his theory of acquired needs D. McClelland proceeded from the fact that the needs are acquired under the influence of life events, experience, and training and includes: †¢ The need for achievement (the desire to self-set goals, more effectively than before, to reach them); †¢ The needs of complicity (the desire for friendly relations with others, communication, working with people); †¢ The need to dominate (the first group of individuals willing to rule for the sake of ruling, the second – to achieve goals). This system needs no strict hierarchy (as in previous theories) its elements have a mutual influence. Senior Manager, on one hand, should help to meet prevailing needs of employees and on the other hand – to promote development of those that are most needed for the labor process. For example, the need to achieve a goal of ruling with the development needs of complicity or achievements can achieve greater results. In theory, F.Herzberg points out the following two groups of factors: †¢ External or hygiene (or health factors) – wages, working conditions, status, mode, interpersonal relationships, the degree of control over the work; †¢ Motivating – growth opportunities, recognition, promotion, work. F. Herzberg concluded that the factors driving the growth of human dissatisfaction with their elimination does not necessarily lead to increased satisfaction, and vice versa. The transition from a lack of satisfaction is influenced by motivational factors and the transition from dissatisfaction with the absence dissatisfaction under the influence of external factors. Therefore, priority should be given to human dissatisfaction and then only with the help of motivating factors to ensure satisfaction. Manager’s attention only to external factors is ineffective. Procedural theories of motivation includes Vroom’s theory of expectancy, the theory of justice (equality) S. Adams, Porter-Lawler model, the theory of goal setting E. Locke’s, and concept of participatory governance. According to the theory expectations Vroom: Motivation = Expected results of the x x Expected remuneration for x The significance of the result of x (valence) †¢ Valence is positive, if the results are highly valued by the employee; †¢ Valence is negative, if the results are denied by the employee; †¢ Valence of zero, if the worker is indifferent to this result. Variables in the formula can be evaluated with points. The essence of the theory of justice (equality) Stacy Adams; People subjectively feel a fair reward for their work, their own and others compare the costs and rewards, so it is important to pay for the work to motivate employees and achieve smooth arise between negative feelings. S. Adams identified six possible human reactions to injustice. 1. Reducing self energy consumption (â€Å"I’m not going to do my best for this salary†). 2. Attempt to increase the salary for their work (requirements, blackmail, etc.). 3. Revaluation of its features (lower confidence). 4. Attempt to influence the organization or the head to change the payment or the load of other employees. 5. Selecting another object of comparison (â€Å"I do not want to be with them†). 6. Attempt to move to another department or another organization. Experienced manager should feel subordinator’s reactions and possibly smooth over the contradictions. Porter-Lawler model represents the synthesis of the theory of justice and the theory of expectations: [pic] In the model of Porter-Lawler work results are considered as a function of the external compensation (salary, the significance of payment assurance efforts and communication labor remuneration), internal reward (praise, promotion, etc.), awareness of their role in the labor process and abilities. If the size between employee’s external rewards and effort is clearly perceived by the individual communication, motivation system works completely; otherwise the employee is motivated in part with the results of the (second internal feedback) and receives only an internal reward for their labor. According to the theory of goal Edwin Locke’s motivation is determined by his goals and satisfaction with job performance. It is assumed that goal setting is a conscious process, which involves the future goals of man. The results of the individual will depend on: †¢ Complexity of task; †¢ Its features (clarity and certainty); †¢ Profitability (eligibility) it for the individual; †¢ A person’s readiness to make some effort to achieve goal (closer the goal, effort can be increased). Quality of work defined organizational factors and capable employees, which in turn affect the goals, and consequence of his motivation. Satisfaction or dissatisfaction with employee by interaction of two processes: †¢ Internal (individual assessment results in terms of correlating them with the goal); †¢ External (human evaluation by others). The disadvantages of this theory include: †¢ Poor uniformity (for uneducated people, such as clarity of purpose plays a big role, and the call for highly objective and its uncertainty leaves room for creativity); †¢ The situation is not clear when the target slave puts the head; †¢ The situation is not clear, when there is group work and the purpose of the group is placed in general; †¢ Promoting labor is not often aimed at a quick goal, and on the quality of the work task. In accordance with the concept of participatory management, employee motivation is determined by its interest in how its activities impact on the functioning of the organization, the desire to participate in the processes taking place in the organization. If an employee feels that he needs to the organization that he demanded it that between his initiative and reward, there is a direct relationship, the intensity of his work is significantly increased. Participative management is widespread in leading Japanese corporations: †¢ Staff makes decisions about the organization of work; †¢ Employees working independently take decisions; setting goals are carried out jointly with the head; †¢ Employees independently control the quality and quantity of output †¢ Employees involved in innovative activities (quality circles, task force committees, etc.) †¢ Employees independently form working groups.

Workplace Writing Report Lab Example | Topics and Well Written Essays - 750 words

Workplace Writing - Lab Report Example Technical writing holds immense importance in the field of software engineering because in order to write the conceptual overviews, procedures, reading and writing example codes, proposals, a sound knowledge of technical writing is required. In order to provide a greater link between technical writing and software engineering, I performed an interview of Mor Harchol- Balter who is a Professor of Computer Science and provides a closer look at the use of technical writing in the field of software engineering. Mor Harchol- Balter, a Professor of Computer Science at the Carnegie Mellon University, received her doctorate from the Computer Science department at the University of California at Berkeley in 1996. Following this, she spent three years in MIT under the NSF Postdoctoral Fellowship in Mathematical Sciences. She has not only received multiple best paper awards but also numerous teaching awards as well. She is currently serving as the Associate Department Head for Computer Science at Carnegie Mellon University. On Wednesday April 15, 2015, at 2:30 PM, a formal request was sent to Dr. Mor Harchol- Balter coupled with a sample of 10 interview questions which were to be covered during the interview. The formal request was sent via email. Dr. Mor Harchol- Balter responded to the formal invite at 5:45 PM on April 17, 2015. Her response included a time and date for the interview. The interview took place at the EUSES lab at the Oregon State University, on April 19, 2015 starting at 10:00 AM and ending at 10:30 AM. Over a period of 30 minutes, we discussed her current writings, her goal and also her previous experiences. Dr. Balter also showed a sample document. However, since the sample being a project proposal was not permitted by Dr.Balter to be reproduced or copied, the sample was analyzed and a similar sample was attached in Appendix B. An email thanking Dr. Balter was sent after the

Thomas Hobbes Article Example | Topics and Well Written Essays - 1000 words

Thomas Hobbes - Article Example Hobbes eventually died in Hardwick in 1679 at the age of 90 after he was attacked by paralysis. He will always be remembered for his political philosophies and this indifferent way of commenting (on philosophical fronts) from others. Hobbes developed his own political analysis and philosophy, which he documented in the form of a book published in 1651 with the title of Leviathan. His arguments in the said publication were illuminating. It is so very simple in the daily happenings of a man who is a selfish and greedy organism, always ready at war with other men (organisms of his type) for his own well being and benefit. His suggestions are that people have turned very selfish in their normal way of living and they lead a unkind life towards other humans which they should not do in the first place. Everyone does not follow the path set by good men of past, which is much to his dislike. He does not like the attitude possessed by the people who follow the sovereigns as if they are Gods or more than them. Fear of death, according to him, is one such thing, which brings to our notice that makes them follow the sovereigns in any possible way they can. A worldly leader cannot in anyway represent people's attitudes; but the same according to him is happening day in day out in this world. The person having authority lets his commands rule, which Hobbes does not quite approve of in any way. His other books also suggest the same ideologies, which are there in his hit one, Leviathan. These suggested his interest in gathering some analysis on political philosophies as well as some comparisons with the ways in w hich leaders and sovereigns have lived their lives and as a consequence ruled over people. Other theorists also followed in the same fashion as Hobbes did. They studied his analyses and thus made their own in the light of what Hobbes had already said. Amongst them were included big names like J.L.Stephen. C.H.Hinnat, T. Surrell. Hobbes was not very happy with the teachings of Aristotle and remarked them as being mistake in doctrine. He ridiculed the English universities of their dull approach towards their curriculum. In reality, he owed both to Aristotle as well as the English universities because he laid the foundation of his beliefs courtesy through Aristotle and these varsities. Hobbes pays importance on the topic of virtue. According to him, virtue develops the respect amongst people so that they can live within the pre-set moral laws and follow them in conformance. Virtue provides an incentive or benefit from which the person can benefit as long as he is alive. It is an ever-lasting impression on one's personality. Thomas Hobbes suggests that the impulses that one has within him/her every now and then should be controlled so that a person's personality does not effect drastically or at other times, quite swiftly. Moral strength is the key for a person and he/she should not let loose on this very asset of his/her. Controlling desires is also an advantage that one has over other of his fellow human beings. One should never let his/her desires get the better of him/her under any circumstances whatsoever. Hobbes has been in the forefront like Locke, Kant and Mill in introducing within people the importance of virtue. They term it as of similar importance as people tie themselves to their mind and

I want an A Essay Example | Topics and Well Written Essays - 750 words

I want an A - Essay Example Respect is crucial in the relationships that people form since it will help them treat each other in proper ways. I think that sleeping in corridors does not show a respect to people. University is not a place for sleeping but rather it is a place for students to read and learn from their professors and their fellow students. It is wrong to sleep while some students are looking for place to study in their break time.Lastweek on Tuesday I came to north classrooms 2 hours before my class because I wanted to study, I could not find a place to study because of those students who sleep. They had filled all the spots that students use to study and I could not get a place to study. In my opinion, I think it is rude to sleep on the school corridors or any other place that is not designated for sleeping, and this scenario needs to be corrected. As students, we have to pay attention to our professors so that we can understand and learn from what they teach us. This in return guarantees good grades since the students will grasp everything the professors teach. However, some students have made listening a problem by engaging in activities such as eating food with strong smell in class. This makes other students not to be attentive in class since the strong smells reduce the levels of attention. Smell from food distracts the focus that students have hence they are not able to get what the professors teach. Since the university gives students a fifteen minutes break, rather than eating food in class, students should utilize this time to eat the food they carried to school. This will play a significant role in improving the attentiveness of students hence this will improve student’s grades. People should wear descent clothes in public places so that they are able to relate to other people and be treated with respect. Wearing sleepwear to school shows some levels of carelessness and

Description and definition Assignment Example | Topics and Well Written Essays - 250 words

Description and definition - Assignment Example Harte, "In Our Own Hands: A Strategy for Conserving Biological Diversity in California," 1990). c. Watershed Management is a â€Å"process of managing human activities in an area defined by watershed boundaries in order to protect and rehabilitate land and water, and associated aquatic and terrestrial resources, while recognizing the benefits of orderly growth and development† (Watershed Planning Implementation PMC, 1997). A new and exciting hobby that entails hiding and seeking treasures is geocaching. The equipment needed to indulge in this hobby is a GPS devise or a Global Positioning System which is a â€Å"a radio navigation system that allows land, sea, and airborne users to determine their exact location, velocity, and time 24 hours a day, in all weather conditions, anywhere in the world† (GPS Resources, n.d.). The objective of this hobby is to locate hidden containers, called geocaches, located outdoors through the GPS devise and to share one’s experiences online, through the worldwide

Molecular Biology of Sickle Cell Anemia Term Paper

Molecular Biology of Sickle Cell Anemia - Term Paper Example This reduces the oxygen carrying capacity of the blood and causes the jamming of blood vessels. One of the characteristic symptoms of sickle cell anemia is pain. Sickle cell anemia is found mainly in people belonging to malaria endemic regions for e.g. Africa. A definitive cure for this debilitating illness is yet to be found and so the treatment given to the patients is still largely symptomatic and supportive. (Taylor et al. 1997 pp.859) (Abnormal phospholipid molecular species of erythrocytes in sickle cell anemia, Connor et al. 1997) Hemoglobin: Structure The structure of the hemoglobin molecule was deciphered by scientists, Kendrew and Perutz using X-ray crystallography in 1959. Hemoglobin is an oxygen-carrying chromoprotein. It is found in red blood cells of vertebrates. 1 red blood cell contains approximately 600 million hemoglobin molecules. It consists of 4 Heme molecules which are attached to 4 polypeptide or globin chains. Heme is a cyclic tetrapyrrole i.e. it consists of 4 molecules of pyrrole. It imparts a red color due to the methyl, vinyl and proprionate groups attached to it. Each heme group also contains one ferrous ion (prosthetic group)present in the porphyrin ring which is present in the center of the heme. The 4 globin chains that make up a hemoglobin molecule are known as ?and ? chains. The two ?chains each contain 141 amino acids, while the two ?chains contain 146 amino acids. These chains are derived mainly from chromosome 16 and 11. Hemoglobin is a globular protein and the 4 protein chains are held together in what is known as a quaternary structure. The hydrophobic parts of the chains point inwards towards the molecule, whereas the hydrophilic parts point outwards. This makes the molecule soluble in water. (Taylor et al. 1997 pp103, 859) (Interactive-Biology 2012) (The Molecular Biology of Sickle Cell Anemia, 2003)(Hemoglobin: Molecular modeling, 2011) Hemoglobin: Function The hemoglobin molecule is responsible for the transport of oxy gen from the lungs to the cells of the body. Each oxygen molecule is attached to the ferrous ion in each heme group. Thus, one hemoglobin molecule is capable of carrying 8 oxygen atoms at a time. It also carries the carbon dioxide molecules back to the lungs for excretion. Carbon dioxide is carried in three forms: in solution, as carbamino-hemoglobin and as bicarbonate ions.(Taylor et al. 1997 pp.479, 481) The hemoglobin molecule shows cooperative binding kinetics, i.e. when one oxygen molecules has been attached, the binding of the rest of the oxygen molecules becomes easier. The oxygen-dissociation curve is sigmoid. It shows that at low partial pressures of oxygen, the hemoglobin molecule readily gives up oxygen, which is then used up by the tissues. Increased concentrations of carbon dioxide also cause the release of oxygen from the molecule. Under these conditions the curve shifts to the right. This is known as the Bohr Effect. (Taylor et al. 1997 pp.479-480) Hemoglobin: Synthes is Hemoglobin synthesis starts to occur in the proerythroblast stage of the RBC cycle. The molecule is produced by mitochondria and ribosomes in a series of reactions. Heme is synthesized in the mitochondria. Glycine &succinyl-CoA condense to form  ?-aminolevulinic acid  (ALA). This reaction occurs in the presence of ALA-synthase. ALA exits the

Advanced Mathematics For Engineers Essay Example | Topics and Well Written Essays - 3250 words

Advanced Mathematics For Engineers - Essay Example Maclaurin series is known as a special case of Taylor series expansion at x = 0. Through Maclaurin series, a combination of functions, say those which are exponential and trigonometric in nature, may be brought altogether to acquire algebraic representations. Leibnitz’ theorem – Leibnitz’s theorem is normally applied whenever numerical methods merely work for determining solutions of first order differential equations (DEs). In particular, by Leibnitz’s theorem, second order DEs may be solved through a process of successive differentiations wherein the nth differential coefficient of standard function can be obtained by performing a series of tasks with the product rule to arrive at the intended solution for Yn. Bessel’s and Legendre equations. Out of the studies made for the disturbances in planetary motion by Friedrich Wilhelm Bessel emerged what came to be acknowledged in the early 19th century as the first systematic analysis of solutions to the equation given by: Such an equation is called a Bessel’s equation which varies in order depending on the real constant ‘v’. ... Moreover, this method had been of ample significance in the quantum mechanical model of the H-atom and is typically employed in areas of physics or engineering that tackle steady-state temperature within solid spherical objects involving the use of Laplace’s equation. Euler, and Runge – Kutta numerical differential equation methods. Both of the principles of applying Euler method and Runge – Kutta method are vital in solving DEs of the first order. With Euler method, on one hand, restrictions are set given initial values x0 and y0, and the range of ‘x’ within which the desired solution for ‘y’ is achieved upon a number of successive iterations that follow a simple form: f (a + h) = f (a) + h [ f ‘(a) ] Iterative use of this equation proceeds until one arrives at the intended value for ‘y’ that is accurate to the extent of decimal places specified. Similarly, the Runge-Kutta method is used for the same purpose of approx imating the ‘y’ to converge to a certain value, only this time, a couple of evaluation steps are required towards a higher degree of accuracy for the results. It is necessary herein to evaluate k-values (k1, k2, k3, and k4) which must be substituted into The numbers identifying each ‘k’, as well as the YP1 and the YC1 are tabulated for a specific range of Xn. (2) Consider for the range x = 1 to x = 1.5 in increments of .1, given the initial conditions that when x = 1, y = 2 Apply Euler Method to solve and graph the above problem Apply Euler –Cauchy Method to solve and graph the above problem Apply Runge - Kutta Method to solve and graph the above problem By Euler Method f(a + h) = f(a) + f(h) ---? y = y0 + h(y0’),

Obey at Any Cost Milgram,S. (1963). Behavioral study of obedience Essay

Obey at Any Cost Milgram,S. (1963). Behavioral study of obedience. Journal of Abnormal and Social Psychology. 67,371-378 - Essay Example This idea sprung from his curiosity of how soldiers committed vicious atrocities during World War II, and in general, the inhumanity displayed by people as a result of obeying orders from ruthless leaders in the course of history. Milgram wanted to test out his theory that humans tend to obey those in a position or power or authority over them even if obeying will mean going against their principles, codes of moral and ethical behavior. The experiment focused on subjects who were put in the role of a â€Å"teacher† who would inflict the punishment of electric shock to another â€Å"subject† (an acting accomplice of the experimenter) given the role of a student whenever he gave a wrong answer to a memory drill. The voltage of the shock increases the more errors are committed by the â€Å"student†. An â€Å"experimenter† conducting the study was actually a confederate of Milgram, egged on the subject to continue with the task at hand no matter how the â€Å"student/ learner† subject reacted. The whole scenario that was played was just simulated without the knowledge of the actual subject. Unaware that everything and everyone around him is not real, he and his emotions and behavior are the only ones that are. Surprisingly, out of the 40 subjects, 65% followed the experimenter’s orders all the way to the top of the shock scale. Most of them exhibited manifestations of extreme stress in doing so, sincerely uncomfortable doing the task while witnessing the suffering of the student subject. To ease them of their anxiety, the subjects were â€Å"debriefed† after the experiment. The purpose of the experiment was revealed to them along with unmasking the accomplices and confederates to introduce themselves. The subjects were interviewed regarding the feelings they went through. Milgram explains why the subjects continued to obey the experimenter even if they knew that they were responsible for hurting a fellow human being.

Ethical Behavior and Social Responsibility of Organizations Essay Example for Free

Ethical Behavior and Social Responsibility of Organizations Essay Introduction Proper ethical behavior is a significant part of conducting business. Organizations must therefore find ways to incorporate ethical considerations into their strategic plan. Firms need to practice self governance and obey existing laws if they are to ensure their survival and the well-being of the society in which they exist. The decisions made by an organization affect society as a whole. This paper will examine the social responsibilities of organizations to each of their stakeholders. These include: customers, employees, shareholders, suppliers, the local government and the environment. Each section of this report is supplemented with a case study illustrating the consequences of unethical behavior in business. Defining Ethics Ethics is a ubiquitous term that is subject to personal interpretation. Individuals and groups are guided by moral principles or values. Their beliefs help them to set standards for deciphering right from wrong (Little, 2011). Ethical values are dynamic and are therefore subject to renegotiation and change. These changes are often influenced by periodic and contextual circumstances. As ethical beliefs differ from person to person, it may not be entirely possible to instill a universal set of values. Also, many individuals have different points of reference when determining what is right and what is wrong (Little, 2011). Domestically, ethical values tend to be closely aligned. Individuals who have been socialized in a particular region are more likely to have similar values, laws, religion, knowledge and culture. With the emergence of free-trade agreements, many firms have the opportunity to conduct international business. Although these organizations are usually successful in aligning their economic interests, many have failed to recognize or understand the cultural norms, laws and ethical practices of the country they are conducting business with. Defining Social Responsibility An organization’s approach to social responsibility can impact its image and reputation. Depending on how an organization addresses this aspect of business, ethics can either be a strength or a weakness. Social responsibility can be divided into three categories: obligatory, reactive or responsive behavior (Duening Ivancevisch, 2008). An organization that acts out of social obligation tends to direct its behavior to the legal pursuit of profit (Duening et al., 2008). Socially reactive organizations often adhere to social norms, values and performance expectations (Duening et al., 2008). These organizations must be accountable for the ecological, environmental and social costs incurred by their actions (Duening et al., 2008). Lastly, socially responsive organizations often engage in behavior that exceeds the actions taken by socially obligated and socially reactive organizations. For example, these firms take stands on public issues, account for their actions, anticipate future needs of society, move toward satisfying them, and communicate with the government regarding existing and anticipated socially desirable legislation (Duening et al., 2008). As illustrated above, social responsibility can mean different things to different people. In a broad sense, social responsibility is a compliance to the legal obligations, social norms and ethical standards of society. For the purpose of this paper, I will use the broad sense of the term, unless otherwise specified. Social Responsibility of Organizations to Internal Beneficiaries Social Responsibility to Employees Legally, organizations are responsible for providing their employees with a minimum wage, safe working conditions and the freedom to form a union (Duening et al., 2008). These laws discourage management from creating workplaces that violate employee civil rights (Duening et al., 2008). However, many part-time employers, fast food restaurants and retailers provide only the minimum. Historically, employee benefits emerged out of pressure from employees, unions and the community. Today, most organizations are expected to go beyond the minimum legal requirements by providing their employees with â€Å"fringe benefits†, such as retirement funds, health and accident insurance (Duening et al., 2008). Many socially reactive and socially responsive organizations have extended their benefits to include training, career development, counseling, employee assistance programs, day-care and flex-time policies. As employee family life becomes more complex, organizations must find ways to offer support. Many modern organizations are concerned about employee satisfaction and the benefits associated with it. Employees who are content demonstrate a higher commitment to the organization, which often translates into less absenteeism, higher morale and higher productivity. Overall, the modern worker wants his job to be both meaningful and fulfilling (Duening et al., 2008). Social Irresponsibility to Employees: Wal-Mart Wal-mart is one of the most profitable and efficiently run organizations in the world. In 2005, the corporation grossed two-hundred and forty billion dollars in sales, yet still failed to provide its employees with health care benefits and a livable wage (Greenwald Gilliam, 2005). On numerous occasions, the organization neglected to provide its employees with the basic legal requirements. As a result, Wal-mart is now facing a number of class action law suits. Reports suggest that the organization is also notorious for keeping its stores understaffed. Although overtime is rarely an option, employees are still expected to work off the clock to get the job done (Greenwald et al., 2005). Workers are ordered to complete their tasks and are often told that they can be replaced. Given their unfortunate personal circumstances, many employees put up with this abuse. In terms of employee well-being, a large majority of Walmart’s workers cannot afford the company’s basic medical insurance at just seventy-five dollars per month. (Greenwald et al., 2005). However, Wal-mart encourages its employees to seek out section-8 housing, food stamps and government-provided health insurance. (Greenwald et al., 2005). Evidently, Wal-mart’s everyday low prices are a result of taxpayer subsidies. Nationwide, Wal-mart is costing taxpayers over one and a half billion dollars a year in subsidies for its employees (Greenwald et al., 2005). As a result of these policies, Walmart’s average sales employee is living below the Federal Poverty Line. (Greenwald et al., 2005). In 2001, Barbara Ehrenreich conducted a sociological study to determine whether or not she could survive on a low wage. She found a job at Wal-mart in Minnesota. Her study reaffirmed the poor working conditions that Wal-mart employees often endure. In the following quote Ehrenreich talks about a shirt that she wanted to purchase for work: â€Å"One of the rules is that our shirts have to have collars, so they have to be polos, not tees. Somehow Id missed this during orientation At $7 an hour, a $7 shirt is just not going to make it to my shopping list† (Ehrenreich, 2002, p.88). Given the low wage that she earns, she has difficulty justifying the purchase of a seven dollar work shirt. In the next quote, her co-worker Alyssa finds herself in a more difficult situation: â€Å"Alyssa is another target for my crusade. When she returns to check yet again on that $7 polo, she finds a stain on it. What could she get off for that? I think 10 percent, and if you add in the 10 percent employee discount, wed be down to $5.60. Im trying to negotiate a 20 percent price reduction with the fitting room lady when rotten luck Howard shows up and announces that there are no reductions and no employee discounts on clearanced items. Those are the rules. Alyssa looks crushed, and I tell her, when Howards out of sight, that theres something wrong when youre not paid enough to buy a Wal-Mart shirt, a clearanced Wal-Mart shirt with a stain on it. I hear you, she says, and admits Wal-Mart isnt working for her either, if the goal is to make a living† (Ehrenreich, 2002, p.100). Wal-mart is also notorious for squashing unions. If a branch plans to hold a union vote, the organization will hire new employees to dilute the number of people who are pro union. Moreover, the organization allots each store a seven-thousand dollar anti-union package; a thirty-thousand dollar undercover spy van, access to the organization’s one hundred thousand dollar anti-union hot-line; and the use of its seven-million dollar corporate jet for rapid response (Greenwald et al., 2005). If a branch is successful in a union vote, Wal-mart will not hesitate to close down that particular retail outlet. In summary, with the absence of unions and the current mind-set of management, it is highly unlikely that employee working conditions will improve any time soon. Social Responsibility to Shareholders Organizations have a social responsibility to their shareholders and must provide accurate information for investment decisions. (Duening et al., 2008). As stated by Duening and Ivancevich, â€Å"the ultimate action a stockholder can take is to sell the stock† (2008). It is important that organizational information be transparent and accessible. Also, organizations must be as efficient and effective as possible with the use of their resources. Any process or product feature that does not add value is wasteful and has an adverse effect on the bottom line. Investors of the twenty-first century want instant gratification and are therefore often fixated on short-term earnings. As corporations and their managers face pressure from shareholders to produce appeasing quarterly results, they often fail to think about the long-term well being of the organization, its employees and the environment. In recent years, there has been a significant increase in performance-based bonuses. In many multinational organizations, executives earn exponentially more than their lowest paid employees. As an incentive, executives often receive options for shares in the company. The value of those options is contingent upon the company’s short, medium or long-term performance. In 2010, chief executives at the United States’ five hundred largest firms collectively took home four billion dollars (DeCarlo, 2010). The value realized from exercised stock options accounted for the main component of their pay (DeCarlo, 2010). When managers act in their own self interest, bonus-based compensation schemes can have dire consequences for all parties involved. Social Irresponsibility to Shareholders: Enron In 2001, Enron filed for bankruptcy (Bryce, 2003). At the time, it was the largest bankruptcy in the history of the United States. The management cooked the books and misrepresented their position to shareholders (Little, 2011). Enron used mark-to-market accounting practices to manipulate earnings and to create a mirage of success. On several occasions, company executives lied to investors, overstated earnings and omitted critical information (Bryce, 2003). As a result, stakeholders lost billions of dollars. Also, the employee pension plan contained over two billion dollars in assets with sixty-two percent of the funds invested in Enron stock (Bryce, 2003). Thousands of Enron employees lost a bulk of their life savings. In addition, the California Public Employees Retirement system lost three billion dollars (Bryce, 2003). Many individuals, investment firms and hedge funds lost billions of dollars as well. While thousands of individuals lost large sums of money, Enron executives netted significant returns from their unethical stock manipulation and insider trading. Social Responsibility to the Supply Chain The supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from the supplier to the consumer (Shafer et al., 2010). Within the chain, an organization can be both a supplier and a customer. Today, many organizations realize the importance of strengthening relationships and working with fewer suppliers. In effect, suppliers and their customers have become interdependent on one another. Traditionally, customers pitted suppliers against each other in hopes of getting the best price. Today, however, many suppliers play a vital role in the operations process. Through vendor-managed inventory systems, organizations have been able to avoid stockouts, thus reducing inventory costs (Shafer et al., 2010). Corporations that rely on sole sourcing have a partner-like relationship with their suppliers. The just-in-time delivery system is based on customers pulling their orders through the supply chain while suppliers ensure the inputs arrive according to schedule. Companies are also responsible for ensuring that their suppliers are treated respectfully and paid on time. In this relationship, both organizations have to turn a profit to ensure their survival. Social Irresponsibility to the Supply Chain: Monsanto Monsanto is an organization that has little regard for the farmers who use its products or the end users that consume them. In 1994, Monsanto introduced Posilac to the American market. Posilac is a bovine growth hormone that was developed to increase milk production. Today, â€Å"the United States is the only developed nation that permits humans to drink milk from cows that have been given artificial growth hormone† (Laskawy, 2010, para 3). This product was banned in twenty-seven countries including Canada and the European Union (Achbar et al.,2004). Moreover, Posilac was tested for only ninety days to assess for human toxicity (Achbar et al., 2004). There is widespread concern regarding the long-term effects of this product on the well-being of humans and animals. Despite these concerns, this product was approved by the Food and Drug Administration. Either Monsanto misreported its findings or the Food and Drug Administration did not look at them. Health Canada research showed that bovine growth hormone could be absorbed by the human body with the possibility of a link to cancer (Achbar et al.,2004). In addition to being harmful, Posilac is of little value to farmers and end users. Prior to Posilac’s release, there was an abundance of milk in the marketplace and farmers were told to produce less of it (Achbar et al.,2004) Monsanto is an organization that supplies harmful products and expects farmers to distribute them to the general population. This organization is responsible for the premature release of bio-engineered foods in the marketplace. The long-term effects of genetically-modified food are still unknown. However, Monsanto requires a high level of coordination to get its products to market. The firm often requires help from politicians, professors, scientists, experts, the general public, reporters, and the Food and Drug Administration (Achbar et al.,2004). Monsanto also engineers terminator seeds. These are seeds that terminate themselves through a suicide gene (Achbar et al.,2004). Since terminator seeds are only good for one season, Monsanto has lowered the intrinsic value of them. In nature, seeds are meant to be replanted annually. However, this product goes against evolution and human well-being. There are billions of people around the world who are starving to death and farmers have been denied the opportunity to replant their seeds on an annual basis.This product is immoral to its customers, the end users, and humanity as a whole. Nonetheless, Monsanto still expects its customers to distribute these products to the end users. Social Responsibility to Customers Value is defined as any action or process that a customer is willing to pay for (Shafer Meredith, 2010). To eliminate unnecessary waste, organizations should always be mindful of customer needs. Processes that drive up costs but do not increase the overall value of a product are wasteful. Firms should strive to reduce overproduction, inventory costs, unnecessary processing, wait times, transportation costs, and unnecessary human motions while minimizing the number of defects (Shafer et al., 2010). Competitive organizations continue to improve the quality and durability of their products (Shafer et al., 2010). However, if an organization fails to use its resources efficiently and effectively, it will likely be punished in the marketplace. A consumer has the ultimate decision on whether or not they will purchase a particular product. Therefore, companies should be adequately prepared to address consumer concerns and after-service needs, should they arise. Also, consumer goods should not do any biological or psychological harm to their customers. Products that have the potential to do harm to others should be put through rigorous testing to ensure they are safe for human use and consumption. Social Irresponsibility to Customers: Aguas del Tunari For twenty years, the World Bank has been working alongside successive governments toward independent development in Bolivia. The World Bank believes that a high proportion of leaders in developing nations are susceptible to corruption, including those in Bolivia. As a result, the organization has played a significant role in assisting the Bolivian government with privatization of its state-owned enterprises. In 2000, Aguas del Tunari corporation signed a forty-year contract with the Bolivian government to provide water to impoverished citizens in Cochabamba City, Bolivia. Aguas del Tunari was guaranteed a minimum annual return of fifteen percent on their two-and-a-half billion dollar investment (Salina Starr, 2008). As part of the deal, Aguas del Tunari Corporation agreed to repay thirty million dollars of debt accumulated by the state utility company (Salina et al., 2008). In an effort to pay off the debt, Aguas del Tunari corporation increased water rates to twenty dollars per month a thirty-five percent increase (Achbar, Abbott, Bakan Simpson, ,2004). However, the company failed to consider the fact that many of its new clients were surviving on only two dollars a day (Achbar et al., 2004). This meant that the cost of water would account for roughly twenty-five percent of their daily income (Achbar et al., 2004). To make matters worse, the government had privatized rain water, making it illegal to collect the rainfall (Achbar et al.,2004). When the newly-owned utility company shut off the water supply to non-paying customers, violent protests erupted across all classes of society. Ninety-six percent of citizens demanded that the contract with Aguas del Tunari be terminated (Salina Starr, 2008) . The government of Bolivia refused and told its citizens that there was nothing to negotiate. Protests spread to other major cities in Bolivia, eventually causing a ripple effect that would put the country into a state of emergency. To remedy this problem, the Bolivian government kicked Aguas del Tunari out of the country and resumed its role as the nation’s utility operator. In this unique case, it is difficult to conceptualize water as a commodity. Water is essential for survival and is seen as a birth right. Many would argue that the local government is responsible for regulating the cost of water and ensuring that it is affordable for all citizens. Since water surrounds us and falls naturally from the sky, it is difficult for a corporation to add value to it. Privatization of rain water is an extreme concept and certainly crosses some ethical boundaries. Social Responsibility of Corporations to External Beneficiaries Social Responsibility to Local Governments Elected officials have a social responsibility to the people whom they represent. Although corporations cannot directly cast a vote, they can leverage their power by donating large sums of money to political campaigns. In return, they often expect regulatory favors, exceptions, and preferential treatment. Corporations must however respect the local government and prohibit themselves from lobbying, bribing or manipulating local officials for the financial benefit of the organization. Although firms should not tempt government officials, politicians should also avoid situations where they may become vulnerable. As governments and organizations continue to work closely to achieve their objectives, they must ensure they maintain their ethical boundaries. When corporations gain power, the relative authority of local government diminishes and their authoritative power is often confined to their given jurisdiction. As organizations continue to grow, it is becoming increasingly difficult for them to be audited by local governments and regulatory bodies. For this reason, governments should consider implementing more rules and tougher sanctions to prevent legal and ethical misconduct. As history has shown, corporations are not always capable of self- governance. Social Irresponsibility to Local Governments: Long-Term Capital Management Deregulation of public enterprises and new business practices may not always be in the best interest of the general public. In 2000, the Clinton administration passed a bill that would deregulate the derivatives market and establish legal certainty for bankers (Lowenstein, 2002). The three major classes of derivatives are: futures, options and swaps. In detail, the derivatives market is not well understood by policy makers. There have been numerous cases of corporate fraud, financial mismanagement and unnecessary risk. Moreover, taxpayers have fronted billions of dollars to bail out financial institutions. In 2008, the value of the overall derivatives market was an astonishing six-hundred and sixty-eight trillion dollars (Sheridan, 2008). In 1994, Long-term Capital Management took the financial world by storm. This hedge fund was established by two proven Wall Street traders and two Nobel Laureates (Lowenstein, 2002). The fund started with four billion dollars in capital from its investors. The firm enjoyed four straight years of prosperity without a single monthly loss to be reported on their balance sheet. LTCM was thought to be the perfect hedge fund. It simply could not lose. LTCM leveraged its balance sheet trading by 30 to 1, while leveraging its off balance sheet trading by 250 to 1 (Lowenstein, 2002). At one point, the company had in excess of one trillion dollars in derivatives exposure (Lowenstein, 2002). In a short period of time, LTCM had lost nearly everything and turned to banks and the federal reserve for a bailout. At the time, this was the largest bailout ever. In Wall Street’s eyes, LTCM was simply too big to fail. It was thought that its demise would have had dire consequences for the entire economy. Since then, bigger investment firms have failed, bigger bailouts have been distributed and derivatives are still being heavily traded. It appears Wall Street still has a lesson to learn. It was the government’s deregulation of derivatives that allowed LTCM and other investment firms to behave unethically and do as they pleased. As a regulatory body, the Federal Reserve sent out the wrong message by bailing out LTCM. Condoning the behavior of this hedge fund created an environment that would encourage other financial institutions to take the same risks. Social Responsibility to the Environment and Future Generations Today, consumers and citizens increasingly expect more from organizations. Traditionally, firms externalized their costs while internalizing their profits. Today, however, many corporations are becoming ethically conscious and are working toward minimizing their carbon footprint. They have started to use mechanisms known as stakeholder management devices to respond to stakeholder claims (Duening et al., 2008). Progressive organizations have started working toward sustainable development to help create a world that is suitable for future generations. Many firms are also taking an interest in social issues. Some have started practicing corporate philanthropy. These positive efforts enhance a corporation’s good will and improves its overall image. This often translates into more sales and higher profit margins. Organizations that fail to take responsibility for their actions are often looked down upon. For example, an organization that shows complete disregard for the environment will likely tarnish their image and build up ill will. In effect, companies that act out of social obligation are viewed less positively than those that are socially responsive. Social Responsibility to the Environment and Future Generations: Tokyo Electric Power Company In March of 2011, the Japanese coast was rattled by a forceful 9.0 earthquake and a gigantic tsunami. The Fukushima Dai-chi and Fukushima Dai-ni power plants sustained critical damage (TEPCO to Compensate Nuclear Plant Victims, 2011). Both of these power plants are privately owned by the Tokyo Electric Power Company (TEPCO to Compensate Nuclear Plant Victims, 2011). The nuclear disaster revealed the company’s misplaced confidence and a failure to adequately forecast its worst case scenario. Furthermore, the company chose to disregard Japan’s tsunami history and relevant GPS data. TEPCO engineers did not factor in earthquakes that occurred prior to 1896 (TEPCO Dimissed Important Scientific Evidence in Planning Nuclear Plant’s Defense, 2011). Tsunami modelers at TEPCO factored in an earthquake of 8.6 magnitude in its worst case scenario model (TEPCO Dimissed Important Scientific Evidence in Planning Nuclear Plant’s Defense, 2011). The earthquake that occured on March 11, 2011 was four times more powerful than the maximum presumed (TEPCO Dimissed Important Scientific Evidence in Planning Nuclear Plant’s Defense, 2011). Given Japan’s geographical position and the volatility of nuclear energy, TEPCO should have put more thought into their calculations. After much delay, the Japanese government has ordered TEPCO to pay partial retribution to the citizens affected by this nuclear catastrophe. Beginning on April 28, 2011, TEPCO has started to compensate families in the nominal sum of twelve-thousand dollars for losses attributed to evacuation, having to stay indoors and nuclear contamination (TEPCO to Compensate Nuclear Plant Victims, 2011). These partial retributions are miniscule. Often times it is cheaper for a corporation to hire a good public relations specialist than to rectify the actual problem. This nuclear disaster has crippled local businesses, fishing operations, tourism and the livelihood of citizens. TEPCO’s greed and irresponsibility has cost the citizens of Japan and the nation at large by causing tremendous losses. Moreover, citizens in neighboring countries and the Western part of the United States have grown concerned over their personal well-being. In TEPCO’s case, the local government should have taken extra measures to ensure the facilities were built to withstand an earthquake of great proportion. Local governments are elected and represent the interest of the people. Therefore, it is their responsibility to ensure private organizations behave ethically. Companies should be forced to take full accountability for their actions. In regard to privatization of nuclear energy, governments should pressure organizations to strive for seven-sigma quality. As we have witnessed, a defect in nuclear energy can have significant implications for the general population. Conclusion As illustrated in this paper, organizations have a social responsibility to both their internal and external beneficiaries. Firms should always conduct business with integrity and concern for others. Although many organizations may feel pressure to increase their short-term earnings, they must retain their focus and uphold their social responsibilities to their stakeholders. Through long-term objectives, organizations can set standards that will ensure their survival. It’s important to emphasize that the decisions an organization makes will often affect society as a whole. As illustrated in the case studies above, companies that go astray or act in their own self interest can adversely affect the well-being of many stakeholders. However, tougher sanctions and an organizational credo may help give an organization ethical focus. In conclusion, by practicing self-governance and obeying existing laws, corporations will be well on their way to becoming socially responsible and dependable organizations. Works Cited Achbar, M. (Director/Producer), Abbott, J. (Director), Bakan, J. (Writer), Simpson, B. (Producer) (2004). The Corporation (DVD). Canada: Big Picture Media Corporation. Bryce, R (2003). Pipe Dreams Greed, Ego and the Death of Enron. New York, NY: Public Affairs. DeCarlo, S. (2010). What the Boss Makes.Forbes.com.Retrieved on April 18th, 2011 from http://www.forbes.com/2010/04/27/compensation-chief-executive-salary-leadership-boss-10-ceo-compensation-intro.html Duening, T. N., Ivancevisch, J. M. (2006). Managing Organizations Principles Guidelines. Cincinnati, OH: Atomic Dog. Ehrenreich, B. (2002). Nickel and Dimed On Not Getting By in America. New York, NY: Owl Book. Greenwald, R. (Director), Gilliam, J. (Producer) (2005). Walmart: The High Cost of Low Price (DVD). United States: Brave New Films Disinformation Company. Laskawy, T. (2010). Court Rules rBGH-Free Milk Milk is Better Than the Kind Produced With Articifical Hormones. Now What? Retrieved on April 19, 2011 from http://www.grist.org/article/food-2010-10-06-court-rules-on-rbgh-free-milk. Little, C. (2011). Ethics [class lectures]. Texas AM University-Commerce. Spring 2011. Lowenstein, R. (2002). When Genius Failed: The Rise and Fall of Long-term Capital Management. Great Britain: Clays Ltd and St. Ives plc. Salina, I. (Director), Starr, S. (Producer) (2008). Flow: For The Love of Water (DVD). United States: Oscilloscope Laboratories. Shafer, S. Meredith, J. (2010). Operations Management for MBAs, 4th Edition. John Wiley and Sons, Inc. Sheridan, B. (2008). 600,000,000,000,000? Newsweek. Retrieved on April 20, 2011 from http://www.newsweek.com/2008/10/17/600-000-000-000-000.html. TEPCO to Compensate Japan’s Nuclear Plant Victims. (2011). BBC News Asia_Pacific. Retrieved on April 17, 2011 from http://www.bbc.co.uk/news/world-asia-pacific-13090304 TEPCO Dimissed Important Scientific Evidence in Planning Nuclear Plant’s Defense. (2011). Japan Today. Retrieved on April 24, 2011 from http://www.japantoday.com/category/commentary/view/tepco-dismissed-important-scientific-evidence-in-planning-nuclear-plants-defense.

Potential of CARs to Supplement Indias Energy Imports

Potential of CARs to Supplement Indias Energy Imports CHAPTER I INTRODUCTION Indian economy has grown at a rapid pace in the last five years and so has the demand for energy of a billion people. India imports 70% of its domestic crude oil requirements. The bulk of Indias oil imports come from West Asia. The supply routes pass through the choke point of Strait of Hormuz. Any disruption in these will severely impact our national interest. Hence there is a need to diversify our supply sources in order to reduce our dependence on Gulf oil. Central Asian Region being rich in energy resources and located in our extended neighbourhood offer a tempting prospect. The CARs situated on the eastern flank of the Caspian Sea have significant oil and natural gas reserves to be considered as a possible source of diversification for countries heavily dependent on energy imports from West Asia and elsewhere . While estimates of reserves vary widely across different sources, there is a consensus that the region has much potential. Energy is the engine of economic growth. Availability of energy is the key to sustainable development, and has a direct impact in most aspects of our daily life. Inadequacy of energy supply affects very adversely vital and essential requirements of any society. Hence, there is an urgent need to enhance substantially the energy availability at a rapid pace so that aspirations of those who have remained at the fringes of development are able to benefit from access to this important input. The Central Asian Republics comprising of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan encompass the vast geo- political space north of India. When part of the USSR, the region had stability and was thus of little interest to the international world order. Relations with India were determined with the framework of Indo-USSR relations as existed between New Delhi and Moscow. The post USSR environment has changed all this, requiring New Delhi to re- establish relations with the five newly independent nation- states on the basis of new realities. It is remarkable that while energy resources are getting increasingly scarce in the rest of the world, new oil fields are being discovered with great regularity in Central Asia. Some experts maintain that Central Asian resources may be difficult to reach because of it is the largest land mass in the world, which is land locked. This is both a challenge and an opportunity, because in todays technology driven world, it is not always necessary to transport material. This is the logic of investment abroad and organising production facilities there. India has long-standing historical ties with Central Asia that encompasses the political, cultural, economic and religious dimensions. The impact of regional developments in Central Asia on Indias history has been longstanding and substantial. According to Mr. Yashwant Sinha, Former Minister of External Affairs, Government of India, Indias increasing engagement with Central Asia is aimed at promoting peace and mutual prosperity. Central Asia can once again be a bridge between the East and West, if its neighbourhood is peaceful and stable, and if the only interference from outside is one of beneficial economic inputs. The bridge can contribute to peace and prosperity and energy security in the wider world too. METHODOLOGY Statement of the Problem To examine the potential of CARs to supplement Indias Energy Imports the possible routes through which Energy could flow to the South Asian Markets. Hypothesis Central Asian Republics as a region has been endowed with abundant energy resources. Their significance is due to their Geo-strategic loc as well as its rich energy deposits. The Geo- political developments in the region would perforce have an impact on India. Peace stability in Central Asia is an imperative to harness the abundant energy resources. The Central Asian region represents a tempting prospect for diversification of supply sources to India, being located in its extended neighbourhood. Justification of the Study Indian economy has changed gears after the historic decision of liberalisation in 1991. Globalisation coupled with liberalisation ha s brought about a sea change in our lives .India has made rapid strides in industrialisation , IT industry , Telecom , Education, service industry and infrastructure development. Our energy consumption has far outpaced our domestic production. Most of our crude imports come from Gulf countries. The supply routes are prone to disruption and can severely impact our national interest. Although we have started acquiring energy stakes in Africa we need to diversify our energy sources. While India is surrounded by energy rich neighbourhood-Pakistan, Bangladesh and Myanmar access to supply energy from these remain elusive. Political compulsions and indifferent relations are an impediment to energy imports through Bangladesh and Pakistan. In Myanmar ONGC has acquired exploration acreages. However any gas finds could make transportation a challenge unless Bangladesh allows transit through its territory. In view of the above, energy imports from CARs in Indias extended neighbourhood needs to be critically examined in order to optimise the full potential of Indo-CAR energy cooperation. Scope This study seeks to focus on the potential of INDO- CAR energy cooperation and identify the possible routes of energy flow from CAR to India. Methods of Data Collection The means of data collection has been number of books and papers by various prominent Indian and foreign authors, newspapers and many other wide ranging array of sources. Various internet sites have also been browsed for data collection .Books and websites consulted are listed in the bibliography. Organisation of the Dissertation It is proposed to study the subject in the following manner:- Chapter I: Introduction. Chapter II: Emergence of CAR as Nation States and their Geo -Strategic significance. Chapter III: Indias Energy Sources. Chapter IV: Energy Potential of CAR. Chapter V: Interest of Global and Regional Players in Central Asia. Chapter VI: Challenges and Threats to Security of Central Asian Region. Chapter VII: India Central Asia Energy Cooperation. Chapter VIII: Indias Strategy. Chapter IX: Conclusion. CHAPTER II EMERGENCE OF CAR AS NATION STATES AND THEIR GEOSTRATEGIC SIGNIFICANCE Emergence of CAR as Nation States Disintegration of former USSR was a momentous occasion unprecedented in scale and unanticipated by any power of the world, which ended the cold war and saw the emergence of a unipolar world. The emergence of newly independent states in Central Asia has changed the balance of power in this region. Due to its geographical proximity to Russia, China, West Asia and South Asia, this region emerged as a distinct geopolitical entity. Central Asian Republics at the dawn of independence were confronted with the numerous problems of state and nation building in a difficult milieu wherein various power centres competed for political power in a declining economy due to sudden severance of strong economic ties with Russia and consequent stoppages of Union subsidies. Rural unemployment and environmental degradation further contributed to aggravation of inter- ethnic relations. [1] Central Asian leaders have proved wrong the Western apprehensions of balkanisation of the region. The Central Asian Republics have preserved intact their national independence and sovereignty and carved out a dignified place for themselves in the comity of nations. They have taken several positive diplomatic and political initiatives at the U.N. and other international fora. Their religious beliefs have not come in the way of developing mutually beneficial relations with Israel. The Central Asian Republics have cordial relations with China and India. They are members of Shanghai Cooperation Organisation (SCO) and the Commonwealth of Independent States Collective Security Treaty Organisation (CSTO) with the exception of Uzbekistan, which have contributed greatly to regional security environment. All of them except Turkmenistan are also members of Central Asian Cooperation Organisation (CACO). Their success in resolving the bloody internal conflict in Tajikistan by peacefully integrati ng the Islamic opposition into the mainstream politics of the republic is no mean feat. They have also evolved a strong joint response together with Russia and China to the threat of cross border terrorism and drugs and arms peddling.[2] Central Asia, a landlocked region in the heart of Asia, is unique because it was the counterpoint of British and Russian empires in 19th century and still has the same importance now, but among the other players. Two decades after independence, Central Asia is not a stable region and some political crisis is still unsolved here. This situation is created by some players which include trans-regional and regional players looking after their own interests. The interaction and countering of the players in the region have resulted in the present situation that created an undeveloped region, while potentially it is significant due its geopolitical, geo-strategic and economic point of view.[3] Geostrategic Significance of Central Asian Republics Central Asian Republics cover an area of 3,994,400 square kilometres. From the eastern shore of the Caspian sea , Central Asia extends eastwards to the Altai mountains along the Chinese border and from the southern border of the Russian Federation southwards upto the Tien Shan mountains and Afghanistan. (Map.1) Geographers have divided the region into four zones starting with the steppe zone of northern Kazakhstan and the Virgin lands (Tselana) ; semi deserts covering the rest of Kazakhstan; the desert zone upto the southern oases; and the southern mountains bordering all the republics which include the Kopet Dag, the Pamirs and the Tien Shan. [4] From Kushka, the southernmost point of Central Asia, there is a narrow road to Afghanistan. Transit and transportation of goods and passengers between region and Afghanistan can be exchanged via this road. Marine routes of Caspian Sea facilitate the relations between Central Asian Republics with Caucasus, Iran and Russia and by Volga-Don waterway canal they can connect with free waters and many countries. In the north, vast Kazakh plain and lowlands and low-height mountains connect Central Asia via railroad and road network with Russia. This territory located between two great Asian power (China) and Asian-European (Russia) and regional players such as Iran, Pakistan, and India influenced and affected it and play their roles. To enter this land-locked territory one should pass the territory of neighbouring countries. From southwards one should pass Iran or Afghanistan. In the current situation, to cross through mountainous Afghanistan is not viable.[5] One of the reasons for American presence in Afghanistan in east and Iraq in west of Iran is to surround Iran and Russia and to have access to Central Asia. Central Asia in north is bordered with Russia. Hence, to enter the heart of Russia is possible only via Central Asia and this is why Russia is against the presence of any foreign and trans-regional power in the region. Access to this territory from eastward is available by passing Chinas western part (XinJiang Uighur Region). China will never allow any trans-regional power to enter in its critical, geopolitically very important western region and from there to Central Asian territory at all. The only passage to enter Central Asia by foreign powers is Caucasus in the west of region which will be available via Caspian Sea. This is why Caucasus region has got a gateway situation and the Caspian Sea itself changed to the gate of Central Asia. Georgia in the west of Caucasus is located in the mouth of Caucasian natural corridor and is a gateway to enter Caucasus. During Cold War era, it was strongly defended by Soviet Union and Warsaw Pact powers. After the collapse of Soviet Union, Russia attempted hard to preserve it, but after one decade, the western powers by execution of Rose Revolution headed by Mikhail Saakashvili in2003 changed this position and allowed west to enter Caucasus. The formation of Shanghai Cooperation Organization in the territory of Central Asia and neighbouring countries is the outcome of this geo-strategic challenge between East and West. This seems to be counterweight against Americas hegemonic movements.[6] There are two movements in Central Asia and beyond. One is led by the West in west-east direction from Black Sea towards Central Asia through Caucasus, Caspian Sea and the other from North to South led by Russia in the vertical direction which cuts the west-east axis. The counter point of these two is Caspian Sea. This is why the Caspian Sea has vital importance for both sides.[7] Russia within security and economic regional organizations has attempted to remove the American influence in the region and already has its effective means that America doesnt have. There are some initiatives in the region which plays basic roles on security and geo-strategic environment of Central Asia. In fact, the future of Central Asia depends on the outcome of the New Great Game between America and Russia. Economic, geopolitics and geo-strategy of the Central Asia are very complicated.[8] CHAPTER III INDIAS ENERGY SOURCES With 16 percent of the worlds population and an emerging economy, India has become a significant consumer of energy resources. The majority of India energy needs are coal dependent . The shortage in supply of energy is met by energy imports from other countries. India is the worlds eleventh-largest energy producer, with 2.4 percent of energy production, and the worlds sixth-largest consumer, with 3.5 percent of global energy consumption. Domestic coal reserves account for 70 percent of Indias energy needs. The remaining 30 percent is met by oil, with more than 65 percent of that oil being imported. Demand for energy is expected to double by 2025; by then, 90 percent of Indias petroleum will be imported.[9] Energy Sources Coal. Coal accounts for more than half of Indias total energy consumption followed by oil, which comprises 31% of total energy consumption. Natural gas and hydroelectric power accounts for 8 and 6 % of consumption respectively.[10] (Refer Figure.1) Nuclear power comprises a very small percentage of total energy consumption at present. Domestic supplies satisfy most of Indias coal demand. According to the 2008 BP Statistical Energy Survey, India had 2007 coal consumption of 208 million tonnes oil equivalent. Unfortunately most of Indias coal is characterised by high ash content, but the quality has other useful qualities such as low sulphur content (generally 0.5%), low iron content in ash, low refractory nature of ash, low chlorine content and low trace element concentration.[11] With 7 percent of the worlds coal India has the fourth largest coal reserves. The Carbon Sequestration Leadership Forum (CSLF) estimates that at the current level of consumption and production, Indias coal r eserves will last for more than 200 years.[12] Oil. According to Oil and Gas Journal (OGJ), India had 5.6 billion barrels of proven oil reserves as of January 2009, the second largest amount in the Asia- Pacific region after China. India produced roughly 880 thousand billion barrels per day (bbl/d) in 2008.In 2007 India consumed approximately 2.8million bbl/d making it the fifth largest consumer of oil in the world.[13] (Refer Figure .2) Indias largest crude oil import partner is Saudi Arabia, followed by Iran. Nearly three-fourths of Indias crude oil imports come from Middle East.[14] (Figure 3). Natural Gas. According to Oil and Gas Journal (OGJ), India had 38 trillion cubic feet (Tcf) of proven natural Gas reserves as of Jan 2009. The EIA estimates that India produced 1.1 Tcf of natural gas in 2007, up only slightly from 2006 production levels. Although Indias natural gas production has consistently increased, demand has outstripped supply making the country a net importer of natural gas since 2004.[15] (Refer Figure .4) India imports natural gas via Liquefied natural gas (LNG). LNG has not figured prominently in the energy mix, but is slowly increasing. Experts estimate that by 2012 Indias LNG imports will be on par with Japans current LNG imports of 60 million tonnes per annum. Although the Gas Authority of India Ltd. (GAIL) has already begun work on a National Gas Grid, there is considerable technological progress that has to be made in terms of extraction, transportation and delivery of LNG. It is estimated that once the grid is fully functional, LNG could offset a sign ificant portion of Indias energy demand.[16] Fuel-wise energy production iis given in Figure.5. New Exploration Licensing Policy and New Discoveries. Exploration blocks were put on offer under the New Exploration-Licensing-Policy(NELP) in1999 in order to try and attract private investment. India has offered 110 oil and gas blocks and 16 coal-bed-methane blocks for exploration in an attempt to raise domestic energy production and reduce import dependence.[17] Under NELP, 71 oil and gas discoveries have been made in 21 exploration blocks.[18] Hydrocarbon accretion has been more than 600 million tonnes of oil equivalent.[19] Cairn Energy has made 25 discoveries in Rajasthan and currently has six fields under development. Initial attention is being concentrated on Mangala, Bhagyam and Aishwariya (MBA). Production from Mangala is scheduled to begin in third quarter 2009. Output from the MBA fields is estimated to peak at 175,000 barrels per day, which would represent at least 20% of Indias total oil production[20]. Nuclear Power. India has a largely indigenous nuclear power programme and expects to have 20,000 megawatt electricity (MWe) nuclear capacity on line by 2020 and 63,000 MWe by 2032. It aims to supply 25% of electricity from nuclear power by 2050. Due to Indias Nuclear isolation post 1974,for 34years India was largely excluded from trade in nuclear plant or materials, which has hampered its development of civil nuclear energy until the signing of Indo US Nuclear Deal in 2008. Due to these trade bans and lack of indigenous uranium, India has uniquely been developing a nuclear cycle to exploit its reserves of thorium. [21]. Nuclear PowerGeneration Capacity. Indias present 2,720 MWe nuclear power plants include 14 reactors at 6 sites(Tarapur,Rawatbhatta, Kalapakkam,Narora,Kakrapar and Kaiga); ongoing 3,960 MWe nuclear power plants include 8 reactors at 4 sites (Tarapur,Kaiga, Rawatbhata and Kudankulam); and future nuclear plant include one Adwanced Heavy Water Reactor (AWHR) having a rating of 300MWe and a mix of 500MWe Fast Breeder Reactors,680 MWe Pressurised Heavy Water Reactors and 1000 MWe LWRs so as to reach a total of 20,000 MWe by 2020.[22] Hydro Electricity. India has a large hydro-potential estimated at 84000 megawatt (MW) at 60% load factor. Less than one fourth of that has been tapped. Large hydro projects are also being stiffly opposed by environmentalist all over the country.[23] Indias Energy Policy. The Indias energy policy states that the energy needs to be utilized not just from the conventional energy resources but also from other non-conventional sources like wind, water, geothermal, biomass etc. The India energy policy act emphasizes the need to develop newer energy sources that are more efficient and non-perishable. Since the energy sources levels are dropping with each passing day the energy of light (energy of a photon), energy of motion from the flowing water and geothermal energy and energy of an electron in chemical energy and other forms is the new energy units tapping solutions.[24] CHAPTER IV ENERGY POTENTIAL OF CAR The CAR is abundantly endowed with energy resources (Refer Table.1) The hydrocarbon reserves are unevenly distributed among the five CARs (Refer Fig.6) and includes a number of petroleum basins that are different in their geological development, reservoir and hydrocarbon types and quantity of resources. Various sources have reported that the postulated oil resources of the region are comparable with those of Saudi Arabia and that the potential gas resources are equal to Irans. Central Asia has been described as one of the worlds most strategic zones , between Russia , China and a troubled Middle East- a region coveted both by its larger neighbours and major world powers .[25] Energy Potential Kazakhstan. It is the second largest producer of petroleum in CIS after Russia. The Kashagan deposit on Caspian seabed was discovered recently and is estimated to contain 13 billion barrels of oil. US and China have already signed deals to exploit the same. The most significant deposits of gas are at Karachaganak (black hole) in northwest Kazakhstan. It is estimated that production of gas will touch 36.1 billion cubic metres (bcm) by 2010. [27] Kazakhstans Gas Potential Kazakhstans Proven Reserves. BP estimates of 2008 place Kazakhstans proven reserves at 1.90 trillion cubic metres (tcm) (1.1% of global share). There are two other gas producing nations in the former Soviet Union that surpass Kazakhstan in terms of proven gas reserves: Russia with its 44.65 tcm (25.5% of global share) and Turkmenistan with 2.67tcm (1.5% of global share).[28] While published figures vary widely, rising as high as 3 380 bcm in the 2007 reserves report from the BGR, it may be of some significance that Oil Gas Journals latest tabulation of world gas reserves (December 2008) shows a decrease in Kazakhstan from 2 832 bcm at 1 January 2008 to 2 407 bcm at 1 January 2009.[29] Production Growth. Over the past decade, Kazakhstans gas sector has achieved considerable production growth, from 4.34 bcm in 1994 to 29.63 bcm in 2007 (see Figure 7). Production in January-July 2008was 19.74 bcm, up 13% year-on-year, and full-year production could potentially exceed the energy ministrys estimate of 33.7 bcm . (Refer Figure 7)[30] Kazakhstans Oil Potential Proven Hydrocarbon Reserves .Kazakhstans combined onshore and offshore proven hydrocarbon reserves have been estimated between 9 and 40 billion barrels.[31] Oil Production and Consumption. Kazakhstan produced approximately 1.45 million barrels per day (bbl/d) of oil in 2007 and consumed 250,000 bbl/d, resulting in petroleum net exports of around 1.2 million bbl/d. (Refer Figure.8) Major Oil fields. Energy Information Authority expects oil production in Kazakhstan to average 1.54 and 1.71 million bbl/d in 2008 and 2009, respectively. Major producers include Karachaganak (250,000 bbl/d), Tengiz (280,000 bbl/d), CNPC-Aktobemunaigas (120,000 bbl/d), Uzenmunaigas (135,000 bbl/d), Mangistaumunaigas (115,000 bbl/d), and Kumkol (70,000 bbl/d). These producers account for 1million bbl/d (or around 70 percent) of liquids production in the country. Other production is centered in smaller fields.[32] Nuclear Fuel Potential Uranium. Kazakhstan has been an important source of uranium for more than fifty years. Over 2001-2008 production rose from 2000 to 8521 tonnes U per year, and further mine development is under way with a view to increase annual production upto18,000 tU/yr by 2010 and 30,000 tU by 2018. Production in 2009 is expected to be about 14,000 tU. Kazatompromis the national atomic company set up in 1997 and owned by the government. It controls all uranium exploration and mining as well as other nuclear-related activities, including imports and exports of nuclear materials. It announced in 2008 that it aims to supply 30% of the world uranium by 2015, and through joint ventures: 12% of uranium conversion market, 6% of enrichment, and 30% of the fuel fabrication market by then.[33] Energy Potential of Uzbekistan Uzbekistan. Uzbekistan is unique among the CARs as being the only republic that shares a border with the other four Kazakhstan to the north and west, Tajikstan and Kyrigzstan to the east and Turkmenistan to the south. . Uzbekistan currently produces 60 bcm of natural gas annually, an amount nearly equal to Turkmenistans production. Uzbekistans reserves are primarily concentrated in Qashqadaryo province and near Bukhara in the countrys south-central region. During the 1970s Uzbekistans largest natural gas deposit at Boyangora-Gadzhak was discovered in Surkhandaryia province north of the Afghan border.[34] Uzbekistan also has small coal reserves, located mainly near Angren, east of Tashkent. In 1990 the total coal yield was 6 million tons. Oil production has likewise been small; Uzbekistan has relied on Russia and Kazakstan for most of its supply.[35]According to Eshref F Trushin of the Institute of Macro Economics and Social Research (Uzbekistan), the Republic is fifth in the world in uranium production. It also produced 60 tonnes of Gold in 1996. However Capisani reports the 1996 production at between 80 to 110 tonnes. Gold deposits are found in the Fergana Valley at Altynkan and Kochbulak, in Uchkuduk(Zeravshan) and at Murantau. In February 1992, a protocol was signed with the Canadian firm , Newmont Gold for the development of Murantau deposit. Copper is extracted in the Almalyk region, as also iron minerals, zinc, lead , tungsten, molybdenum and uranium.[36] Energy Potential of Turkmenistan Turkmenistans Oil Potential. Turkmenistan produces around 200,000 barrels per day of crude and is the biggest gas producer in the former Soviet Union after Russia with exports of around 50 billion cubic metres of gas a year, mainly to Russia and Ukraine. The country says its gas reserves are currently heavily underestimated and it can easily double and even triple production to supply gas to Europe and Asia.[37] According to U.S Energy Information Administration total oil production in the country in 2008 was 189.40 barrels per day. The crude oil production reached 170.26 barrels per day whereas the consumption of petroleum products and direct consumption of crude oil was 103 thousand barrels per day. The refining capacity is 237 million barrels per day and the Turkmenistan ranks world no 57 in its refining capacity. The proven reserves are 600 million barrels (Refer Table 2). Turkmenistans Gas Reserves. The production of natural gas in 2007 was 2,432 billion Cubic Feet as compared to domestic consumption of 688 Billion Cubic Feet. The country exported 1,745 Billion Cubic Feet Natural Gas in 2007. The Net proven reserves amount to huge 100,000 Billion Cubic Feet.[38] Energy Potential of Kyrgyzstan Kyrgyzstan. Kyrgyzstan currently does not have enough energy to provide reliable light and heat to its residents and factories. Although the country relies heavily on domestic sources of hydropower for much of its electricity, recent droughts and mismanagement drastically cut these supplies. Kyrgyzstan is increasingly seeking to identify and bring on line new sources of energy. The country currently imports most of the natural gas, petroleum products and coal that it consumes. At the same time, beyond hydro power, Kyrgyzstan has essentially no alternative energy production. Kyrgyzstan faces a variety of challenges in developing its energy sector. In the foreign policy sphere, Kyrgyzstan confronts problems that are a consequence of the extremely complex and volatile political landscape in Central Asia. Domestically, issues of economic crisis, organizational dysfunction, poorly written laws, and corruption hinder reform.[39] Energy Potential of Tajikistan Tajikistans Proven Oil Reserves. Tajikistan has proven reserves of 12 million barrels of oil (Refer Table.2), most of which are located in the northern part of the country in the Leninobod Soghd Region. The national oil company is Tajikneftegaz, which handles oil exploration, drilling, and production. In 2001, Tajik oil production was only 350 barrels per day (b/d). There has been a long period of production decline since Tajikistan produced 1,311 b/d in 1992. This decrease has been attributed to the 1992-1997 civil war, economic troubles, and lack of investment in the oil infrastructure. Tajikistan consumes 29,000 b/d of oil products, almost all of which are imported. The main source is Uzbekistan, which provides 70% of Tajikistans oil product imports. [40] Tajikistan Gas Reserves. Tajikistan has 200 billion cubic feet (Bcf) of natural gas reserves, comprised of several fields. In 2000, Tajikistan began operations in the Khoja Sartez field in the southern Khatlon Region, and has also increased its activity in the Qizil Tumshuq deposit in the Kolkhozobod District of the southern Khatlon Region. Tajikistan has also tried to increase its own gas production, in 2000, by exploratory drilling in the Khatlon region. Apparently, some of the drilling has been successful enough to interest China in future drilling activities. The total natural gas production for Tajikistan in 2000 was 1.4 Bcf. With its small domestic production, Tajikistan must rely on imports for 95% of the natural gas it consumes. [41] Viability of CARs to Serve as an Alternative to West Asia If the CARs are to provide a viable source of supply diversification for energy importers, they must have an environment that sets them apart from the Gulf countries that currently supply bulk of the oil. The oil importers sense of vulnerability stems from the fear of emergence of militant Islam in West Asia.[42] Factors Affecting Viability. In this context, the CARs ability to provide a viable alternate to West Asia is subject to a variety of factors as under:-[43] Proven Reserves. The known and proven reserves of West Asian oil account for 66%of global deposits whereas the proven and possible reserves of the entire Former Soviet Union (FSU) region are no more than 5.5%, of which Central Asia s share is even less. When it comes of natural gas the FSU region of which Russia constitutes the chunk , accounts for 39%of global reserves but Central Asian share is only around 6%. Only about 3%of the global energy trade is accounted for by the Caspian region and the share of CARs is even less. Thus the CARs can only supplement, not supplant West Asian suppliers, whether it is oil or gas. Drilling Costs. Drilling oil in CARs costs three to six times as much as it does in West Asia. While it can be as low as $1per barrel in Iraq or Saudi Arabia, it would cost up to $5 to produce a barrel of oil from the Northern Caspian. This implies that it is economically attractive to produce oil in CARs only when global oil prices reign above a certain threshold level and being a marginal producer the Caspian region will have to follow the prices set by OPEC and that they will not be in a position to influence prices to any significant extent. While gas production in the region is competitive with the rest of the world, the need to ferry it by long pipelines through difficult terrain offsets the cost advantages. Connectivity. Unlike West Asia, which enjoys excellent connectivity with energy consumers all over the globe through well established sea routes and tanker infrastructure, the CARS are constrained by geography that limits not only existing ,but also future transit routes to global market. Quality. The quality of crude from some wells in Caspian region demands extensive processing before it can be consumed. Not all refineries have the processing capacity which constrains the range of consumers who can buy CARs oil even when it is available. Insurgency. Incipient insurgency in some parts of CARs renders them less attractive as an alternate source of supply. Uneven development of the different countries of the region and the ethnic diversities , instability in Chechnya Potential of CARs to Supplement Indias Energy Imports Potential of CARs to Supplement Indias Energy Imports CHAPTER I INTRODUCTION Indian economy has grown at a rapid pace in the last five years and so has the demand for energy of a billion people. India imports 70% of its domestic crude oil requirements. The bulk of Indias oil imports come from West Asia. The supply routes pass through the choke point of Strait of Hormuz. Any disruption in these will severely impact our national interest. Hence there is a need to diversify our supply sources in order to reduce our dependence on Gulf oil. Central Asian Region being rich in energy resources and located in our extended neighbourhood offer a tempting prospect. The CARs situated on the eastern flank of the Caspian Sea have significant oil and natural gas reserves to be considered as a possible source of diversification for countries heavily dependent on energy imports from West Asia and elsewhere . While estimates of reserves vary widely across different sources, there is a consensus that the region has much potential. Energy is the engine of economic growth. Availability of energy is the key to sustainable development, and has a direct impact in most aspects of our daily life. Inadequacy of energy supply affects very adversely vital and essential requirements of any society. Hence, there is an urgent need to enhance substantially the energy availability at a rapid pace so that aspirations of those who have remained at the fringes of development are able to benefit from access to this important input. The Central Asian Republics comprising of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan encompass the vast geo- political space north of India. When part of the USSR, the region had stability and was thus of little interest to the international world order. Relations with India were determined with the framework of Indo-USSR relations as existed between New Delhi and Moscow. The post USSR environment has changed all this, requiring New Delhi to re- establish relations with the five newly independent nation- states on the basis of new realities. It is remarkable that while energy resources are getting increasingly scarce in the rest of the world, new oil fields are being discovered with great regularity in Central Asia. Some experts maintain that Central Asian resources may be difficult to reach because of it is the largest land mass in the world, which is land locked. This is both a challenge and an opportunity, because in todays technology driven world, it is not always necessary to transport material. This is the logic of investment abroad and organising production facilities there. India has long-standing historical ties with Central Asia that encompasses the political, cultural, economic and religious dimensions. The impact of regional developments in Central Asia on Indias history has been longstanding and substantial. According to Mr. Yashwant Sinha, Former Minister of External Affairs, Government of India, Indias increasing engagement with Central Asia is aimed at promoting peace and mutual prosperity. Central Asia can once again be a bridge between the East and West, if its neighbourhood is peaceful and stable, and if the only interference from outside is one of beneficial economic inputs. The bridge can contribute to peace and prosperity and energy security in the wider world too. METHODOLOGY Statement of the Problem To examine the potential of CARs to supplement Indias Energy Imports the possible routes through which Energy could flow to the South Asian Markets. Hypothesis Central Asian Republics as a region has been endowed with abundant energy resources. Their significance is due to their Geo-strategic loc as well as its rich energy deposits. The Geo- political developments in the region would perforce have an impact on India. Peace stability in Central Asia is an imperative to harness the abundant energy resources. The Central Asian region represents a tempting prospect for diversification of supply sources to India, being located in its extended neighbourhood. Justification of the Study Indian economy has changed gears after the historic decision of liberalisation in 1991. Globalisation coupled with liberalisation ha s brought about a sea change in our lives .India has made rapid strides in industrialisation , IT industry , Telecom , Education, service industry and infrastructure development. Our energy consumption has far outpaced our domestic production. Most of our crude imports come from Gulf countries. The supply routes are prone to disruption and can severely impact our national interest. Although we have started acquiring energy stakes in Africa we need to diversify our energy sources. While India is surrounded by energy rich neighbourhood-Pakistan, Bangladesh and Myanmar access to supply energy from these remain elusive. Political compulsions and indifferent relations are an impediment to energy imports through Bangladesh and Pakistan. In Myanmar ONGC has acquired exploration acreages. However any gas finds could make transportation a challenge unless Bangladesh allows transit through its territory. In view of the above, energy imports from CARs in Indias extended neighbourhood needs to be critically examined in order to optimise the full potential of Indo-CAR energy cooperation. Scope This study seeks to focus on the potential of INDO- CAR energy cooperation and identify the possible routes of energy flow from CAR to India. Methods of Data Collection The means of data collection has been number of books and papers by various prominent Indian and foreign authors, newspapers and many other wide ranging array of sources. Various internet sites have also been browsed for data collection .Books and websites consulted are listed in the bibliography. Organisation of the Dissertation It is proposed to study the subject in the following manner:- Chapter I: Introduction. Chapter II: Emergence of CAR as Nation States and their Geo -Strategic significance. Chapter III: Indias Energy Sources. Chapter IV: Energy Potential of CAR. Chapter V: Interest of Global and Regional Players in Central Asia. Chapter VI: Challenges and Threats to Security of Central Asian Region. Chapter VII: India Central Asia Energy Cooperation. Chapter VIII: Indias Strategy. Chapter IX: Conclusion. CHAPTER II EMERGENCE OF CAR AS NATION STATES AND THEIR GEOSTRATEGIC SIGNIFICANCE Emergence of CAR as Nation States Disintegration of former USSR was a momentous occasion unprecedented in scale and unanticipated by any power of the world, which ended the cold war and saw the emergence of a unipolar world. The emergence of newly independent states in Central Asia has changed the balance of power in this region. Due to its geographical proximity to Russia, China, West Asia and South Asia, this region emerged as a distinct geopolitical entity. Central Asian Republics at the dawn of independence were confronted with the numerous problems of state and nation building in a difficult milieu wherein various power centres competed for political power in a declining economy due to sudden severance of strong economic ties with Russia and consequent stoppages of Union subsidies. Rural unemployment and environmental degradation further contributed to aggravation of inter- ethnic relations. [1] Central Asian leaders have proved wrong the Western apprehensions of balkanisation of the region. The Central Asian Republics have preserved intact their national independence and sovereignty and carved out a dignified place for themselves in the comity of nations. They have taken several positive diplomatic and political initiatives at the U.N. and other international fora. Their religious beliefs have not come in the way of developing mutually beneficial relations with Israel. The Central Asian Republics have cordial relations with China and India. They are members of Shanghai Cooperation Organisation (SCO) and the Commonwealth of Independent States Collective Security Treaty Organisation (CSTO) with the exception of Uzbekistan, which have contributed greatly to regional security environment. All of them except Turkmenistan are also members of Central Asian Cooperation Organisation (CACO). Their success in resolving the bloody internal conflict in Tajikistan by peacefully integrati ng the Islamic opposition into the mainstream politics of the republic is no mean feat. They have also evolved a strong joint response together with Russia and China to the threat of cross border terrorism and drugs and arms peddling.[2] Central Asia, a landlocked region in the heart of Asia, is unique because it was the counterpoint of British and Russian empires in 19th century and still has the same importance now, but among the other players. Two decades after independence, Central Asia is not a stable region and some political crisis is still unsolved here. This situation is created by some players which include trans-regional and regional players looking after their own interests. The interaction and countering of the players in the region have resulted in the present situation that created an undeveloped region, while potentially it is significant due its geopolitical, geo-strategic and economic point of view.[3] Geostrategic Significance of Central Asian Republics Central Asian Republics cover an area of 3,994,400 square kilometres. From the eastern shore of the Caspian sea , Central Asia extends eastwards to the Altai mountains along the Chinese border and from the southern border of the Russian Federation southwards upto the Tien Shan mountains and Afghanistan. (Map.1) Geographers have divided the region into four zones starting with the steppe zone of northern Kazakhstan and the Virgin lands (Tselana) ; semi deserts covering the rest of Kazakhstan; the desert zone upto the southern oases; and the southern mountains bordering all the republics which include the Kopet Dag, the Pamirs and the Tien Shan. [4] From Kushka, the southernmost point of Central Asia, there is a narrow road to Afghanistan. Transit and transportation of goods and passengers between region and Afghanistan can be exchanged via this road. Marine routes of Caspian Sea facilitate the relations between Central Asian Republics with Caucasus, Iran and Russia and by Volga-Don waterway canal they can connect with free waters and many countries. In the north, vast Kazakh plain and lowlands and low-height mountains connect Central Asia via railroad and road network with Russia. This territory located between two great Asian power (China) and Asian-European (Russia) and regional players such as Iran, Pakistan, and India influenced and affected it and play their roles. To enter this land-locked territory one should pass the territory of neighbouring countries. From southwards one should pass Iran or Afghanistan. In the current situation, to cross through mountainous Afghanistan is not viable.[5] One of the reasons for American presence in Afghanistan in east and Iraq in west of Iran is to surround Iran and Russia and to have access to Central Asia. Central Asia in north is bordered with Russia. Hence, to enter the heart of Russia is possible only via Central Asia and this is why Russia is against the presence of any foreign and trans-regional power in the region. Access to this territory from eastward is available by passing Chinas western part (XinJiang Uighur Region). China will never allow any trans-regional power to enter in its critical, geopolitically very important western region and from there to Central Asian territory at all. The only passage to enter Central Asia by foreign powers is Caucasus in the west of region which will be available via Caspian Sea. This is why Caucasus region has got a gateway situation and the Caspian Sea itself changed to the gate of Central Asia. Georgia in the west of Caucasus is located in the mouth of Caucasian natural corridor and is a gateway to enter Caucasus. During Cold War era, it was strongly defended by Soviet Union and Warsaw Pact powers. After the collapse of Soviet Union, Russia attempted hard to preserve it, but after one decade, the western powers by execution of Rose Revolution headed by Mikhail Saakashvili in2003 changed this position and allowed west to enter Caucasus. The formation of Shanghai Cooperation Organization in the territory of Central Asia and neighbouring countries is the outcome of this geo-strategic challenge between East and West. This seems to be counterweight against Americas hegemonic movements.[6] There are two movements in Central Asia and beyond. One is led by the West in west-east direction from Black Sea towards Central Asia through Caucasus, Caspian Sea and the other from North to South led by Russia in the vertical direction which cuts the west-east axis. The counter point of these two is Caspian Sea. This is why the Caspian Sea has vital importance for both sides.[7] Russia within security and economic regional organizations has attempted to remove the American influence in the region and already has its effective means that America doesnt have. There are some initiatives in the region which plays basic roles on security and geo-strategic environment of Central Asia. In fact, the future of Central Asia depends on the outcome of the New Great Game between America and Russia. Economic, geopolitics and geo-strategy of the Central Asia are very complicated.[8] CHAPTER III INDIAS ENERGY SOURCES With 16 percent of the worlds population and an emerging economy, India has become a significant consumer of energy resources. The majority of India energy needs are coal dependent . The shortage in supply of energy is met by energy imports from other countries. India is the worlds eleventh-largest energy producer, with 2.4 percent of energy production, and the worlds sixth-largest consumer, with 3.5 percent of global energy consumption. Domestic coal reserves account for 70 percent of Indias energy needs. The remaining 30 percent is met by oil, with more than 65 percent of that oil being imported. Demand for energy is expected to double by 2025; by then, 90 percent of Indias petroleum will be imported.[9] Energy Sources Coal. Coal accounts for more than half of Indias total energy consumption followed by oil, which comprises 31% of total energy consumption. Natural gas and hydroelectric power accounts for 8 and 6 % of consumption respectively.[10] (Refer Figure.1) Nuclear power comprises a very small percentage of total energy consumption at present. Domestic supplies satisfy most of Indias coal demand. According to the 2008 BP Statistical Energy Survey, India had 2007 coal consumption of 208 million tonnes oil equivalent. Unfortunately most of Indias coal is characterised by high ash content, but the quality has other useful qualities such as low sulphur content (generally 0.5%), low iron content in ash, low refractory nature of ash, low chlorine content and low trace element concentration.[11] With 7 percent of the worlds coal India has the fourth largest coal reserves. The Carbon Sequestration Leadership Forum (CSLF) estimates that at the current level of consumption and production, Indias coal r eserves will last for more than 200 years.[12] Oil. According to Oil and Gas Journal (OGJ), India had 5.6 billion barrels of proven oil reserves as of January 2009, the second largest amount in the Asia- Pacific region after China. India produced roughly 880 thousand billion barrels per day (bbl/d) in 2008.In 2007 India consumed approximately 2.8million bbl/d making it the fifth largest consumer of oil in the world.[13] (Refer Figure .2) Indias largest crude oil import partner is Saudi Arabia, followed by Iran. Nearly three-fourths of Indias crude oil imports come from Middle East.[14] (Figure 3). Natural Gas. According to Oil and Gas Journal (OGJ), India had 38 trillion cubic feet (Tcf) of proven natural Gas reserves as of Jan 2009. The EIA estimates that India produced 1.1 Tcf of natural gas in 2007, up only slightly from 2006 production levels. Although Indias natural gas production has consistently increased, demand has outstripped supply making the country a net importer of natural gas since 2004.[15] (Refer Figure .4) India imports natural gas via Liquefied natural gas (LNG). LNG has not figured prominently in the energy mix, but is slowly increasing. Experts estimate that by 2012 Indias LNG imports will be on par with Japans current LNG imports of 60 million tonnes per annum. Although the Gas Authority of India Ltd. (GAIL) has already begun work on a National Gas Grid, there is considerable technological progress that has to be made in terms of extraction, transportation and delivery of LNG. It is estimated that once the grid is fully functional, LNG could offset a sign ificant portion of Indias energy demand.[16] Fuel-wise energy production iis given in Figure.5. New Exploration Licensing Policy and New Discoveries. Exploration blocks were put on offer under the New Exploration-Licensing-Policy(NELP) in1999 in order to try and attract private investment. India has offered 110 oil and gas blocks and 16 coal-bed-methane blocks for exploration in an attempt to raise domestic energy production and reduce import dependence.[17] Under NELP, 71 oil and gas discoveries have been made in 21 exploration blocks.[18] Hydrocarbon accretion has been more than 600 million tonnes of oil equivalent.[19] Cairn Energy has made 25 discoveries in Rajasthan and currently has six fields under development. Initial attention is being concentrated on Mangala, Bhagyam and Aishwariya (MBA). Production from Mangala is scheduled to begin in third quarter 2009. Output from the MBA fields is estimated to peak at 175,000 barrels per day, which would represent at least 20% of Indias total oil production[20]. Nuclear Power. India has a largely indigenous nuclear power programme and expects to have 20,000 megawatt electricity (MWe) nuclear capacity on line by 2020 and 63,000 MWe by 2032. It aims to supply 25% of electricity from nuclear power by 2050. Due to Indias Nuclear isolation post 1974,for 34years India was largely excluded from trade in nuclear plant or materials, which has hampered its development of civil nuclear energy until the signing of Indo US Nuclear Deal in 2008. Due to these trade bans and lack of indigenous uranium, India has uniquely been developing a nuclear cycle to exploit its reserves of thorium. [21]. Nuclear PowerGeneration Capacity. Indias present 2,720 MWe nuclear power plants include 14 reactors at 6 sites(Tarapur,Rawatbhatta, Kalapakkam,Narora,Kakrapar and Kaiga); ongoing 3,960 MWe nuclear power plants include 8 reactors at 4 sites (Tarapur,Kaiga, Rawatbhata and Kudankulam); and future nuclear plant include one Adwanced Heavy Water Reactor (AWHR) having a rating of 300MWe and a mix of 500MWe Fast Breeder Reactors,680 MWe Pressurised Heavy Water Reactors and 1000 MWe LWRs so as to reach a total of 20,000 MWe by 2020.[22] Hydro Electricity. India has a large hydro-potential estimated at 84000 megawatt (MW) at 60% load factor. Less than one fourth of that has been tapped. Large hydro projects are also being stiffly opposed by environmentalist all over the country.[23] Indias Energy Policy. The Indias energy policy states that the energy needs to be utilized not just from the conventional energy resources but also from other non-conventional sources like wind, water, geothermal, biomass etc. The India energy policy act emphasizes the need to develop newer energy sources that are more efficient and non-perishable. Since the energy sources levels are dropping with each passing day the energy of light (energy of a photon), energy of motion from the flowing water and geothermal energy and energy of an electron in chemical energy and other forms is the new energy units tapping solutions.[24] CHAPTER IV ENERGY POTENTIAL OF CAR The CAR is abundantly endowed with energy resources (Refer Table.1) The hydrocarbon reserves are unevenly distributed among the five CARs (Refer Fig.6) and includes a number of petroleum basins that are different in their geological development, reservoir and hydrocarbon types and quantity of resources. Various sources have reported that the postulated oil resources of the region are comparable with those of Saudi Arabia and that the potential gas resources are equal to Irans. Central Asia has been described as one of the worlds most strategic zones , between Russia , China and a troubled Middle East- a region coveted both by its larger neighbours and major world powers .[25] Energy Potential Kazakhstan. It is the second largest producer of petroleum in CIS after Russia. The Kashagan deposit on Caspian seabed was discovered recently and is estimated to contain 13 billion barrels of oil. US and China have already signed deals to exploit the same. The most significant deposits of gas are at Karachaganak (black hole) in northwest Kazakhstan. It is estimated that production of gas will touch 36.1 billion cubic metres (bcm) by 2010. [27] Kazakhstans Gas Potential Kazakhstans Proven Reserves. BP estimates of 2008 place Kazakhstans proven reserves at 1.90 trillion cubic metres (tcm) (1.1% of global share). There are two other gas producing nations in the former Soviet Union that surpass Kazakhstan in terms of proven gas reserves: Russia with its 44.65 tcm (25.5% of global share) and Turkmenistan with 2.67tcm (1.5% of global share).[28] While published figures vary widely, rising as high as 3 380 bcm in the 2007 reserves report from the BGR, it may be of some significance that Oil Gas Journals latest tabulation of world gas reserves (December 2008) shows a decrease in Kazakhstan from 2 832 bcm at 1 January 2008 to 2 407 bcm at 1 January 2009.[29] Production Growth. Over the past decade, Kazakhstans gas sector has achieved considerable production growth, from 4.34 bcm in 1994 to 29.63 bcm in 2007 (see Figure 7). Production in January-July 2008was 19.74 bcm, up 13% year-on-year, and full-year production could potentially exceed the energy ministrys estimate of 33.7 bcm . (Refer Figure 7)[30] Kazakhstans Oil Potential Proven Hydrocarbon Reserves .Kazakhstans combined onshore and offshore proven hydrocarbon reserves have been estimated between 9 and 40 billion barrels.[31] Oil Production and Consumption. Kazakhstan produced approximately 1.45 million barrels per day (bbl/d) of oil in 2007 and consumed 250,000 bbl/d, resulting in petroleum net exports of around 1.2 million bbl/d. (Refer Figure.8) Major Oil fields. Energy Information Authority expects oil production in Kazakhstan to average 1.54 and 1.71 million bbl/d in 2008 and 2009, respectively. Major producers include Karachaganak (250,000 bbl/d), Tengiz (280,000 bbl/d), CNPC-Aktobemunaigas (120,000 bbl/d), Uzenmunaigas (135,000 bbl/d), Mangistaumunaigas (115,000 bbl/d), and Kumkol (70,000 bbl/d). These producers account for 1million bbl/d (or around 70 percent) of liquids production in the country. Other production is centered in smaller fields.[32] Nuclear Fuel Potential Uranium. Kazakhstan has been an important source of uranium for more than fifty years. Over 2001-2008 production rose from 2000 to 8521 tonnes U per year, and further mine development is under way with a view to increase annual production upto18,000 tU/yr by 2010 and 30,000 tU by 2018. Production in 2009 is expected to be about 14,000 tU. Kazatompromis the national atomic company set up in 1997 and owned by the government. It controls all uranium exploration and mining as well as other nuclear-related activities, including imports and exports of nuclear materials. It announced in 2008 that it aims to supply 30% of the world uranium by 2015, and through joint ventures: 12% of uranium conversion market, 6% of enrichment, and 30% of the fuel fabrication market by then.[33] Energy Potential of Uzbekistan Uzbekistan. Uzbekistan is unique among the CARs as being the only republic that shares a border with the other four Kazakhstan to the north and west, Tajikstan and Kyrigzstan to the east and Turkmenistan to the south. . Uzbekistan currently produces 60 bcm of natural gas annually, an amount nearly equal to Turkmenistans production. Uzbekistans reserves are primarily concentrated in Qashqadaryo province and near Bukhara in the countrys south-central region. During the 1970s Uzbekistans largest natural gas deposit at Boyangora-Gadzhak was discovered in Surkhandaryia province north of the Afghan border.[34] Uzbekistan also has small coal reserves, located mainly near Angren, east of Tashkent. In 1990 the total coal yield was 6 million tons. Oil production has likewise been small; Uzbekistan has relied on Russia and Kazakstan for most of its supply.[35]According to Eshref F Trushin of the Institute of Macro Economics and Social Research (Uzbekistan), the Republic is fifth in the world in uranium production. It also produced 60 tonnes of Gold in 1996. However Capisani reports the 1996 production at between 80 to 110 tonnes. Gold deposits are found in the Fergana Valley at Altynkan and Kochbulak, in Uchkuduk(Zeravshan) and at Murantau. In February 1992, a protocol was signed with the Canadian firm , Newmont Gold for the development of Murantau deposit. Copper is extracted in the Almalyk region, as also iron minerals, zinc, lead , tungsten, molybdenum and uranium.[36] Energy Potential of Turkmenistan Turkmenistans Oil Potential. Turkmenistan produces around 200,000 barrels per day of crude and is the biggest gas producer in the former Soviet Union after Russia with exports of around 50 billion cubic metres of gas a year, mainly to Russia and Ukraine. The country says its gas reserves are currently heavily underestimated and it can easily double and even triple production to supply gas to Europe and Asia.[37] According to U.S Energy Information Administration total oil production in the country in 2008 was 189.40 barrels per day. The crude oil production reached 170.26 barrels per day whereas the consumption of petroleum products and direct consumption of crude oil was 103 thousand barrels per day. The refining capacity is 237 million barrels per day and the Turkmenistan ranks world no 57 in its refining capacity. The proven reserves are 600 million barrels (Refer Table 2). Turkmenistans Gas Reserves. The production of natural gas in 2007 was 2,432 billion Cubic Feet as compared to domestic consumption of 688 Billion Cubic Feet. The country exported 1,745 Billion Cubic Feet Natural Gas in 2007. The Net proven reserves amount to huge 100,000 Billion Cubic Feet.[38] Energy Potential of Kyrgyzstan Kyrgyzstan. Kyrgyzstan currently does not have enough energy to provide reliable light and heat to its residents and factories. Although the country relies heavily on domestic sources of hydropower for much of its electricity, recent droughts and mismanagement drastically cut these supplies. Kyrgyzstan is increasingly seeking to identify and bring on line new sources of energy. The country currently imports most of the natural gas, petroleum products and coal that it consumes. At the same time, beyond hydro power, Kyrgyzstan has essentially no alternative energy production. Kyrgyzstan faces a variety of challenges in developing its energy sector. In the foreign policy sphere, Kyrgyzstan confronts problems that are a consequence of the extremely complex and volatile political landscape in Central Asia. Domestically, issues of economic crisis, organizational dysfunction, poorly written laws, and corruption hinder reform.[39] Energy Potential of Tajikistan Tajikistans Proven Oil Reserves. Tajikistan has proven reserves of 12 million barrels of oil (Refer Table.2), most of which are located in the northern part of the country in the Leninobod Soghd Region. The national oil company is Tajikneftegaz, which handles oil exploration, drilling, and production. In 2001, Tajik oil production was only 350 barrels per day (b/d). There has been a long period of production decline since Tajikistan produced 1,311 b/d in 1992. This decrease has been attributed to the 1992-1997 civil war, economic troubles, and lack of investment in the oil infrastructure. Tajikistan consumes 29,000 b/d of oil products, almost all of which are imported. The main source is Uzbekistan, which provides 70% of Tajikistans oil product imports. [40] Tajikistan Gas Reserves. Tajikistan has 200 billion cubic feet (Bcf) of natural gas reserves, comprised of several fields. In 2000, Tajikistan began operations in the Khoja Sartez field in the southern Khatlon Region, and has also increased its activity in the Qizil Tumshuq deposit in the Kolkhozobod District of the southern Khatlon Region. Tajikistan has also tried to increase its own gas production, in 2000, by exploratory drilling in the Khatlon region. Apparently, some of the drilling has been successful enough to interest China in future drilling activities. The total natural gas production for Tajikistan in 2000 was 1.4 Bcf. With its small domestic production, Tajikistan must rely on imports for 95% of the natural gas it consumes. [41] Viability of CARs to Serve as an Alternative to West Asia If the CARs are to provide a viable source of supply diversification for energy importers, they must have an environment that sets them apart from the Gulf countries that currently supply bulk of the oil. The oil importers sense of vulnerability stems from the fear of emergence of militant Islam in West Asia.[42] Factors Affecting Viability. In this context, the CARs ability to provide a viable alternate to West Asia is subject to a variety of factors as under:-[43] Proven Reserves. The known and proven reserves of West Asian oil account for 66%of global deposits whereas the proven and possible reserves of the entire Former Soviet Union (FSU) region are no more than 5.5%, of which Central Asia s share is even less. When it comes of natural gas the FSU region of which Russia constitutes the chunk , accounts for 39%of global reserves but Central Asian share is only around 6%. Only about 3%of the global energy trade is accounted for by the Caspian region and the share of CARs is even less. Thus the CARs can only supplement, not supplant West Asian suppliers, whether it is oil or gas. Drilling Costs. Drilling oil in CARs costs three to six times as much as it does in West Asia. While it can be as low as $1per barrel in Iraq or Saudi Arabia, it would cost up to $5 to produce a barrel of oil from the Northern Caspian. This implies that it is economically attractive to produce oil in CARs only when global oil prices reign above a certain threshold level and being a marginal producer the Caspian region will have to follow the prices set by OPEC and that they will not be in a position to influence prices to any significant extent. While gas production in the region is competitive with the rest of the world, the need to ferry it by long pipelines through difficult terrain offsets the cost advantages. Connectivity. Unlike West Asia, which enjoys excellent connectivity with energy consumers all over the globe through well established sea routes and tanker infrastructure, the CARS are constrained by geography that limits not only existing ,but also future transit routes to global market. Quality. The quality of crude from some wells in Caspian region demands extensive processing before it can be consumed. Not all refineries have the processing capacity which constrains the range of consumers who can buy CARs oil even when it is available. Insurgency. Incipient insurgency in some parts of CARs renders them less attractive as an alternate source of supply. Uneven development of the different countries of the region and the ethnic diversities , instability in Chechnya