This paper is a discussion on the reasons why companies focus more on charity than profitability during hard times.  In order to carry out the discussion regarding the above mentioned statement, various relevant issues of business and management like Ethics and corporate social responsibility, business strategy, importance of finance, aspects of organizational behaviour have been focused upon in order to arrive upon a decent judgment.

One fundamental question for which answers are not clear and which is the basis of this entire dissertation is “why do people indulge in charity?”

The above question for which an answer is being sought is actually pretty critical and also a highly debated question.  Our society considers people who indulge in charity with great respect as it is believed that people do charity due to the great concern they have upon the society.  However, there is one more school of thought that, many people do charity for the sake of tax deductions.

Despite these contrasting perceptions of people indulging in charity, it is true that people who do charity activities are a real boon to today’s society.  It would be good that if more and more people across the globe come forward to donate their vastly accumulated affluence.  They should also ensure that their charity is distributed equally to people who are really in need and thereby ensuring their survival in the society.

People have a variety of needs.  Irrespective of one’s status, age, and achievements, one would still have some unfulfilled needs.  In order to satisfy their unfulfilled needs more effectively, people have learned to organize themselves into groups.  The process of organizing facilitates an organization in its specialization efforts (Frederiksen, 1982).  It helps the employees to develop specialized skills and enhances the productivity and efficient functioning of the organization.  The organizational system consists of social, technical and economic elements which coordinate human and managerial resources to achieve various organizational objectives.

Despite the fact that good human relations are a significant organizational objective even today, it is no longer the predominant approach in guiding management of employees within organization.  It is bow evident that many factors have to be considered in order to ensure high levels of employee satisfaction and productivity (Falletta, 2005).  In order to achieve higher employee satisfaction and productivity, organizations today are adopting the human resources approach, which treats the organizational goals and employee needs as being mutual and compatible, and which can be pursued in unison.

Decision-making describes the process by which a course of action is selected as the way to deal with a specific problem.  People at all levels in an organization are constantly making decisions and solving problems.  For managers, the decision-making and problem-solving tasks are particularly important aspects of their jobs. (Drucker, 1974) which employee should be assigned a particular task?  How profits should be invested?  Whether the problem is large or small, it is usually the manager who has to confront it and decide what action to take.

Managers make decisions dealing with both problems and opportunities.  For instance, making decisions about how to cut costs by five percent reflects a problem.  The manager also has to make decisions when there is an opportunity that can be exploited.  If the firm has surplus funds, the manager has to decide whether the extra funds should be used to increase shareholder dividends, reinvested in current operations, or to expand into new markets.

The quality of managers’ decisions is the yardstick of their effectiveness and value to the organization.  Managers are usually evaluated and rewarded on the basis of the importance and results of their decisions.(Drucker, 1998).  this indicates that managers must necessarily develop decision-making skills.

The success of an organization depends greatly on the decisions that managers make.  The Rational model which is believed to be one of the major types of models regarding how managers make decisions is discussed below.

The rational model of managerial decision-making has its roots in the economic theory of the firm.  When theories about the economic behaviour of business firms were being developed, there was a general tendency among economists to assume that whatever decisions managers made would always be in the best economic interests of their firms.  There was a tremendous support for this assumption from many thinkers of management.  The rational model of decision-making believes that managers engage in a decision-making process which is totally rational.  They not only have all the relevant information needed to take decisions but also are aware of all the possible outcomes and consequence of the decision so taken by them.

Ethics refer to the rules and standards governing a person’s conduct.  Ethics has only recently become an important area of study.  It has been found that ethical behaviour is influenced not only by individual or group behaviour but also by factors in the cultural, organizational and external environment.  Factors in the cultural environment include family, friends, neighbours, education, religion and media.  Ethical codes, role models, policies and practices, and reward and punishment systems comprise the organizational influences.  The external factors include developments taking place in the political, legal, economic and international arena.  All these factors work together in determining the ethical behaviour of individuals and groups in organizations (Research (ICMR), 2003).

There is a great deal of controversy regarding the nature of ethical behaviour.  Even though some persons may consider their behaviour ethical, their peers in the organization and people from other places of the world i.e. their counterparts may disagree.  An employee may consider the use of office stationery like pens, envelops etc. for personal use as unethical, whereas his colleagues may feel that since these things are not very costly, using them for personal reasons is not wrong.  The meaning of ethical behaviour differs from individual to individual and from group to group.  A research study in which business executives and business faculty members were asked to give their opinion on the unauthorized copying of microcomputer software revealed that while executives considered this behaviour unethical, faculty members did not.

It is hence proved that ‘Ethics’ is important for any organization and also its members.

Synopsis on Ethics

Ethics, in philosophy, is the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a particular society requires of its members ((ICMR), 2003).

Professional Ethics concerns one’s conduct of behaviour and practice when carrying out professional work. Such work may include consulting, researching, teaching and writing (Research (ICMR), 2003). The institutionalization of Codes of Conduct and Codes of Practice is common with many professional bodies for their members to observe.

Any code may be considered to be a formalization of experience into a set of rules. A code is adopted by a community because its members accept the adherence to these rules, including the restrictions that apply.

Good ethics and good business

Why should a company consider ethics in directing its behaviour – on top of law, self-interest, and convention?  The worst conceivable result of high moral standard would be competitive or other tangible detriment because the special efforts and costs a company attaches to ethical consideration result in net disadvantages for it.  There are a number of indications that the short-term profit from ethical conduct does not exactly burst into the limelight or even show clearly measurable financial disadvantage (Palanikumar, 2007).  It would be dishonest to exclude these effects in an option in action on corporate ethics.

On the other hand there are many empirical examples in which unethical corporate behaviour caused a great social outcry and intervention from the authorities, and presented no favourable options even in the short-term. A second conceivable possibility is that financial disadvantages due to investments over and above those required by law for instance in environmental, social, or safety areas or withdrawing from sale for ethical reasons could be compensated and balanced out by non-financial advantages like the company’s reputation (Keerti, 2007).

A third possibility is that ethical dealing might be worthwhile from both the financial and non-financial points of view.  These are most probable, at least in the mid- and long-term, for the following reasons.

Reduction in the cost of friction with social environment

First and foremost, ethical conduct brings reductions in the cost of friction with the social environment (for private individuals and institutions.)  For corporations, social friction costs arise when behaviour which is legal but seen as illegitimate or unethical leads to calls for boycotts from other organizations (Answers.Com, 2007).

On the other hand, there is growing evidence that a company’s “image” can become a competitive advantage because a “positive coefficient” arises.  This can become a decisive market advantage where a corporation offers products and services that are comparable in quality and usefulness with those of other companies.

Money in the form of deposits offers the least risk, of all financial instruments.  But its value is most eroded by inflation.  That is why one always prefers to store the funds in financial instruments like stocks, bonds, debentures, etc.  The compromise one makes in such investments is that (1) the risk involved is more, and (2) the degree of liquidity, i.e. conversion of the claims into money is less.  The financial markets provide the investor with the opportunity to liquidate the investments ((ICMR), 2003).

Keynes coined a new term “liquidity preference” by which his theory of interest is commonly known. Liquidity preference is the desire to hold cash.  The money in cash and the rate of interest which is demanded in exchange for it is a “measure of the degree of our disquietude (ICFAI Center for Management Research (ICMR), 2005).”  The rate of interest, in Keynes’ words, is the “premium which has to be offered to induce people to hold the wealth in some form other than hoarded money.”  The higher the liquidity preference, the higher will be the rate of interest that will have to be paid to the holders of cash to induce them to part with their liquid assets.  The lower the liquidity preference the lower will be the rate of interest that will be paid to the cash-holders.

Employees’ motivation

The fact that corporate behaviour which is at least frictionless but wherever possible goes beyond marginal ethics also motivates serious investors to purchase shares, and that the direct neighbours look to the company with pleasure and pride reinforces employees’ positive identification.

In the business setting, ‘social-responsibility’ is often employed as a synonym for a business’s or business person’s ethical obligations.  This is unfortunate because this loose, generic use of the phrase can often obscure or prejudice the issue of what a business’s or business person’s ethical obligations truly are.  To see why, one must appreciate that the phrase is also used to contrast a business’s or business person’s “social” responsibilities with its or his or her ordinary ones (Drucker, 2000 Rev ed).  A business’s or business person’s ordinary responsibilities are to manage the business and expend business resources so as to accomplish the specific purposes for which the business was organized.  However, there were many recent examples of companies which lack ethics in business. AIG and Lehman are a few of them which became recently popular.

A recent current affair that raised eyebrows and also created a panic situation to the millions of investors’ world over, in the global financial market is the financial crisis in some of the world famous financial institutions namely Lehman brothers’, American International Group (AIG), Fannie Mae and Freddie Mac (Amateur Economists, 2008).  Out of these financial institutions, Lehman brothers went bankrupt and Fannie Mae & Freddie Mac were seized.  The only fortunate institution among the ones listed above was AIG which was lucky enough to be bailed out by the U.S. Federal Reserve.

All these recent happenings can be related to what is known as “The Big Bank Theory” of finance and economics (PinoyMoney.com, 2008).  According to this theory, no government across the globe will allow any big financial institution or a bank to collapse so easily.  This is because the after effect or the consequences of such collapses would definitely be great and at time will be out of control to handle despite how big the economy in which the collapse occurred. This exactly is the basic reason as to why AIG was bailed out by the U.S. Federal Reserve.  The reasons substantiated by the U.S. Federal Reserve as to why it took this step of bailing out AIG was it felt that the collapse of such a big financial institution would definitely add to the woes of the financial markets and economy which is currently delicate.  The Fed also stated that the collapse of AIG would also result in higher cost of borrowings, reduction in the household wealth and also weaken the current performance of the economy.  It was also true that the collapse of AIG would not only effect the U.S. economy alone as felt by the Fed but would also have a drastic and negative impact on the global financial markets.

Subprime mortgage crises have become an ongoing economic problem in various parts of the globe.  The basic reasons behind these crises may be described as contracted liquidity in the banking systems across the globe and also in the credit markets.  Risky lending, excess of corporate and individual debt levels, risky practices of borrowing also can be added to the list of reasons for subprime crisis to occur.

Once the reasons as to why subprime crises occur is known, the next question that arises is as to what are the ways to avoid or decrease these crises from occurring.  One best solution would be modification of loan lending (ICFAI Center for Management Research (ICMR), 2003) (ICFAI University Press, 2003).  Lending is a crucial activity for a bank as it enables the bank to generate income.  But to sustain income generation, prudent decisions need to be taken both prior to and after sanctioning the credit.  These decisions are generally related to issues like the size, security and repayment of credit to be extended during a financial year, the industries to focus on, the geographical spread, the type of credit to offer, the type of proposals to finance, the disbursal mechanism, the collateral value, the method of pricing, the repayment schedule, the monitoring process, etc.  Credit is the mainstay for any financial institution particularly banks and financial institutions.  Almost 60% of the assets side o a bank’s balance sheet is credit.  The bank’s or the management of the various financial institutions’ across the globe should thus, ensure that lending decisions fall in line to sub – serve the bank’s overall objectives of growth and stability (ICFAI Center for Management Research (ICMR), 2005).

Apart from the above, pumping more money into the market and also reducing the amount of bank reserves would also serve as a solution to weaken the crises if not avoiding them to occur.

One another similar example that can be quoted in this situation is the Northern Rock Crisis.  Northern Rock is Britain’s fifth largest mortgage bank, and the Bank of England deemed it necessary for Britain’s economic stability to come to its rescue by offering the mortgage bank an open ended line of credit for the duration of the current liquidity crisis, which is set to continue well into 2008. The amount of the funding has not been specified but is estimated at more than £4 billion (Walayat, 2007).  It has specialised in mortgage lending based on the availability of cheap credit. The credit crunch that followed the collapse of the US sub-prime mortgage market meant that Northern Rock was unable to raise loans. The Bank of England stepped in to provide loans when depositors scrambled to withdraw their money in the first run on a British bank since over end and Gurney in 1866. Even Wall Street shuddered at the spectacle. The threat of contagion was felt internationally, and the Bank of England was forced to act (Talbot, 2007).

Northern Rock was facing difficulty raising money on the wholesale money markets.  It was experiencing difficulty funding its day-to-day requirements and had therefore sought a short-term line of credit from the Bank of England (BoE) in order to improve its liquidity. It is quite normal for the BoE to act as a ‘lender of last resort’ for banks struggling to raise funds (D’Arcy, 2007).  Northern Rock has a credit squeeze and is a bit short of cash, so it has therefore agreed a form of temporary overdraft (costing a mere 1% over base rate, or 6.75% a year) from the Bank of England.  This created a situation that had not been seen in Britain since the 1860s. On Sept. 14, 2007, as soon as the bank’s management announced that it had turned to the Bank of England for temporary assistance, long lines of clients appeared in front of Northern Rock offices trying to withdraw their deposits. The bank’s Web site collapsed under the huge wave of clients attempting to transfer money from Northern Rock accounts to other banks.

The bank’s crisis is linked to the global credit crunch which has been caused by the problems in the American sub-prime mortgage market. Northern Rock has been hit as other banks – the main source of its cash – are unwilling to lend in the current unsteady climate. However, the Bank of England, and the Chancellor, has stepped in to rescue the bank with extra funds, which they say is enough to save Northern Rock.  The U.K. government is facing growing criticism for its decision to temporarily nationalize Northern Rock. Taking the total volume of loans and guarantees provided by the Bank of England in combination with the value of mortgages on the troubled bank’s books, the state’s involvement in Northern Rock reached £ 100 billion (Košťál, 2008).

The crisis began when the management of Northern Rock and the government were approached by U.K. bank Lloyds TSB with a proposal to purchase Northern Rock for £ 2 per share if the government provided a credit of £ 10 billion to cover the risks associated with the takeover of the threatened bank.

Northern Rock’s problems have been caused by the crisis in the credit markets over the past few weeks, which has seen banks become increasingly wary about lending to each other.  The credit crunch began because a number of mortgage lenders in the US had been lending too much and too freely to consumers with poor credit ratings. As interest rates increased in the US; many of these borrowers were unable to keep up payments on their loans. Unfortunately, this was not just a problem for the banks that lent them the money.  Many lenders packaged up their books of so-called “sub-prime” mortgage debt and sold it to other institutions around the world in the form of high-yielding bonds. When the borrowers stopped paying their mortgages, the bonds were no longer worth as much as the institutions who had bought them thought. This caused a crisis of confidence in debt markets around the world – amplified by the fact that it was not clear exactly how exposed various companies were to the sub-prime crisis (The Independent, 2007).

After these series of incidents, Northern Rock shares slide further, with the stock opening 31% lower after tumbling by a similar amount in the immediate wake of the crisis. Meanwhile, savers continue to queue at Northern Rock branches across the UK. Darling intervenes, pledging that the government will guarantee all deposits lodged with Northern Rock (Association, 2008).

Despite reassurances that the money of its customers’ is safe, worrying pictures of customers the length and breadth of the country queuing up at Northern Rock branches dominated the news.  Northern Rock put on extra staff to deal with the surge of customers arriving at branches and some stayed open later to deal with them, with transfers of up to £140,000 taking place.

Systematic failure of duty is believed to be the main reasons for the crisis of Northern Rock bank.  Northern Rock has fared badly because without a large savings base to use as collateral on loans, it must seek support for loans on the debt markets. Until last year Northern Rock was considered as a stock market darling for its ability to tap into new markets, particularly among borrowers with few assets.  Northern Rock stands accused of “reckless” lending after it emerged.  The business practices of Northern Bank were also responsible for the crisis to occur.

The meaning of ethical behavior differs from individual to individual and from group to group.  A research study in which business executives and business faculty members were asked to give their opinion on the unauthorized copying of microcomputer software revealed that while executives considered this behavior unethical, faculty members did not.  ‘Ethics’ is important in the study of organizational behavior since it affects the way employees are treated and has a great impact on their performance and well-being ((ICMR), 2003).

In an organization which professes and practices high business ethics is likely to drive the entire organizational culture.  The human resource value will be driven by such ethics and when recruiters interview people seeking a cultural fit they mentally check of people who have high ethics in their business practices.  Only such people are recruited.  Obviously business ethics would have a high place during the induction of people into the organization.  Thus, pushing people to practice high business ethics similarly the culture that is going to be built within the organization will be of higher standards and will be more exacting in nature.

Any unethical business practice indulged in will be looked down upon seriously and would have a very high negative impact on individuals probably even including forced exits.  A forced exit when properly communicated across the organization would send a strong message within the organization cajoling people to stick to high ethical values, wherein punishments go beyond forced exits to the extent of legal actions – the message that is communicated both formally and informally would be a strong deterrent not to indulge in unethical business practices.

For instance, in the case of the much famed WorldCom debacle, indulging in unethical practices led to the total devastation of the company and its folding up.  This whole thing, in extremely rare cases, wherein there is a conscious effort on part of the management to hoodwink the stakeholders, the management would seemingly be following high ethical values while practicing undetected immoral business values.  Thus, creating an emotional conflict over a period of time will definitely give way to corruption of corporate culture.

The globalization of trade and commerce has produced spectacular new imperatives for organizations to take action against fraud and inducement. Academics and governments became familiar that fraud shunts assets into fruitless sectors, retards the growth of buyer markets, and excessively troubles the deprived. Companies often put into practice anti-corruption programs with the principal objective of plummeting susceptibility to fines and illegal sanctions.

As organizations become more and more global in nature, they are looking for out ways to safeguard their values and integrity-specifically, to fight dishonesty and bribery-while competing effectively in a broad range of cultures and business environments (Aamodt, 2001). “A burst of activity on the part of governments and international bodies created a comprehensive architecture of legal and regulatory standards governing corruption and bribery. Corporate anti-corruption and bribery programs vary by individual company, country of origin, and industry(BNET, 2003).”

As most of the companies today are doing business in a global economy, there would be situations that are to be faced by the managers and situations which really need certain decisions that are to be taken by them.  The decisions may be ones which have – in small or not-so-small ways – significant consequences for the present or future welfare of persons.  That is to say that situation of ethical choices would be faced.

Every significant profession and every institution that thinks anything of itself has its “something ethics” to proclaim – environmental ethics, media ethics, research ethics, and even corporate ethics are the consequence.  The latter has recently, along with environmental ethics, gained most in significance.  There are now a great number of national and international books, seminars, symposia, ethics networks, and journals exclusively devoted to business ethics.  There can be no doubt that not only “ethics” is “in” – business ethics is too.

The reason behind this is, if there had been a fundamental shift in social value systems and has the “worth” of ethical argument increase as a result?  That would be an explanation, for when traditional ways of life and institutions are not longer taken for granted, philosophical ethics, guided by the idea of sensible human life, seeks generally valid arguments about good and just behaviour in a methodical way.  There is no need to point out that we are living in a time of great social change.  If social change were to move in the direction of higher morals then all social groups and institutions – including business enterprises – would be faced with new legitimating demands.  Economic performance alone is no longer enough to give businesses legitimacy.  Non-economic demands, e.g., the sustainable fulfilment of social and environmental responsibility in industrialized and developing countries, have been increasing their significance for legitimating for many years.

Philosophical reflection is without doubt a fulfilling and intellectually challenging matter – also for those that bear responsibility in companies.  But if one wishes to do more than just get traditional moral philosophical knowledge over to people or preach romantic idealism, then ethics, including corporate ethics, must come down from its lofty realm of “ideas” and “values” and establish itself in day-to-day reality.  Acting responsibly would then not mean swearing allegiance to higher notions of approvable behaviour, but would emerge from a very worldly setting in which a company’s or individual’s activity has to be justified in the light of different values in pluralistic societies.

Acting responsibly always and primarily means acting intelligently, i.e. carefully weighing up the benefits and harm that one’s own actions can bring.  All moral activity occurs on the basis of a balance between the realization of interests and the avoidance of physical, social, or even state sanctions – not to mention those in any afterlife.  In the business environment characterized by cut-throat competition, organizations set insurmountable targets for employees who under pressure break rules and even resort to unfair practices to achieve the targets.

Business Cycles

History shows that the economies do not grow in a uniform pattern.  There may be several years of economic growth followed by a recession and in some cases even a prolonged depression.  This may be accompanied by falling national output, declining profits and real incomes and rising unemployment.    In course of time, the economy recovers and if the recovery is very strong it may lead to a boom.  During the boom period the economy will experience prosperity which means a long period of high demand, more employment opportunities and improving standards of living.  Prosperity may also lead to inflationary conditions marked by rising prices and speculation.  This would be followed by another slump in the economy.  All market economies are characterized by movements in national output, inflation, interest rates and employment.  These movements could be either upward or downward.

A business cycle may be defined as a swing in total national output, income and employment.  It usually lasts for two to ten years and is characterized by expansion and contraction in many sectors.  A business cycle has mainly two phases:  recession and expansion.  Peaks and troughs are the tuning points of the cycles.  Recession takes place when there is a downturn in the economy.

Economic growth is dependent on mobilizing savings and directing them into productive channels.  In this process, money supply can only play a limited role.  However, the role establishes an important connection between money supply, output and price level (ICFAI Center for Management Research (ICMR), 2003).  These relationships cannot be ignored even if the primary concern of the government is mobilization of real factors that ultimately lead to economic growth.

The demand for money in the society is very high.  Due to such a high demand, the reasons for people’s charity is never thought of or clearly known to many.  Demand in economics means effective demand, which can be defined as a desire backed by willingness and ability to pay for a particular product.  Thus, in order for a demand to be effective, three important factors namely the desire to buy, willingness to buy and ability to buy are the important factors (ICFAI Center for Management Research (ICMR), 2003).

The law of demand says that ceteris paribus when the price of a product is high, quantity demanded is low, and vice versa.  In other words, other factors remaining the same, the demand for a product is inversely related to the price.  When the relationship between demand and price is illustrated in a graphical form it is called the demand curve.  The demand curve slopes downward from left to right, because the price of a product goes up the quantity demanded decreases.  The demand curve is drawn with the assumption that only the price changes while other factors remain same.  Besides such a demand for money in order to carry out various transactions, some people demand it for hoarding or holding wealth in liquid form. It can conveniently be used according to variations in the market conditions (Pinkmonkey.com).

Demand for money means demand to hold money on hand.  Money in one’s hands earns no income.  If converted into goods or other financial assets one can derive either additional utility or income.  The supply money means the amount of money held by the people in the country.  In other words, the supply of money is the amount of money held by and used by the people for transactions, for making payments and for settlement of debt.  It does not include the amount of money with the Government in its exchequer and the amount of money held by the financial institutions such as banks.

The Supply Side theory, also known as Reganomics, was initiated during the Regan administration. During the 1970′s, the state and local governments increased sales and excise taxes. These taxes were passed from business to business and finally to the customer, resulting in higher prices. Along with raised taxes for the middle and lower classes, this effect was compounded because there was little incentive to work if even more was going to be taxed. People were also reluctant to put money into savings accounts or stocks because the interest dividends were highly taxed. There was also too much protection of business by the government which was inefficient and this also ran up costs, and one thing the Supply Side theory was quite good at was reinforcing inflation (Cyberessays.com).

Observations

Do companies actually increase their contribution to the bit of charity or does it just seem that?  If companies actually do increase bit of contribution to charity, is it because the human beings at the leadership level are just behaving like human beings?  Applying Freudian principles to this exhibited charity behaviour of leaders in the organization, a question that can be categorically asked that “are the leaders feeling guilty of having made large profits when the biding were good and are thus exhibiting remorse and hence doing more charity?”

On examining the collections made by a couple of charitable organizations does not actually reflect an increase in charity, to the contrary it actually indicates that bad times have actually fallen upon these organizations, but a word of caution needs to be added to this observation that most of these organizations which were touched upon to examine the fund inflow positions were depending on individual donors or rather than corporate donors.  So, we are actually examining individual behaviour and not corporate behaviour.  On examining some of the organizations, which are recipients of corporate charity shows that the Corporates were trying their level best to maintain the charity levels and in a few cases some new organizations had actually come forward to donate.

Short run trade-off exists between liquidity and profitability.  Other things remaining constant, the more liquid a bank the lower its return on equity and return on assets (The Banker, 2004).  Both asset and liability liquidity contribute to this relationship.

Facts about liquidity of a bank:

The more liquid a bank, the less profitable the bank

Liquid assets earn less than illiquid assets.

The shorter the maturity, the lower the yield.

The highest yielding loans are loans with the highest default or interest rate risk and are therefore the least liquid.

Asset liquidity is influenced by the composition and maturity of funds i.e. the ease with which a bank can convert assets to cash with a minimum loss (Comptroller of the Currency Administrator of National Banks, 2001).  Large holdings of cash assets evidently decrease profits because of the opportunity loss of interest income.

Now the question is – if the charity levels were being held constant, why does it seem like more in tough times?   The answer could possibly be because of one of the following three reasons.

1. Perceptions

2. Lens effect

3. An actual percentage increase

Perceptions – During bad times, when companies do their regular bit of charity, it gets noticed as if more than normal charity is being doled out.  Here a critical element of plays a role actually pointing to avarice that the dollar of charity can actually be re-deployed to save a favourite colleague’s job or can be possibly given to self as that missed or reduced increment which leads to the next point.

Lens Effect – During bad times, the work load on individuals tends to be much lesser than in regular times, which means every bit of activity in an organization tends to get noticed and becomes more often than not topics of water cooler conversation.

An actual percentage increase – Assuming that an organization has 100 units of total productive work and 5 units of charity work during normal times and while in difficult times the charity work might be actually reduced to 4 units and the actual work would have come to say 50 units, comparing the percentage of charity to productive work shows an actual jump of 3%.  In normal times, it would have been 5% and in difficult times it is 8% which translates to actual jump in percentage of charity.

The last observation that is relevant is that charity/ corporate social responsibility are being actively used by organizations world over to create a bonding and more often than not to set a culture of “giving” within the organization.  Usually, the human resources professional tend to grab the slack during times of economic difficulty to create a strong sense of bonding within the organization and encourage informal organizational networks.  The spin-offs of strong bonding and stronger informal networks are very much evident when there are higher demands of productivity leading to high stress levels across the organizations.

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The Roman Empire lasted for about five centuries, beginning from 510 BC up to 23 BC. It was a period of considerable development in world civilization, especially as relates to government. Among the most significant characters in the empire’s development was Julius Caesar (Freeman 6). Caesar succeeded in developing a military and political career in which he established his popularity among the masses and gained resentment from the ruling class, especially the conservative members of senate. This paper sets out to identify the rise of Caesar, his successes in attaining his ambitions and the simultaneous popularity and enmity that he attracted as a leader.

Early Military Life

Caesar was born around the year 100 BC. His family was neither rich nor influential at the time of his birth but had noble patrician roots. During his early years, he joined the army. Afterwards he was sent to Cilicia where he was noted to be an effective and courageous soldier. He was next in an army that was credited with crushing a slave rebellion at Spartacus. Later on, he got out of the army but remained in Southern Italy for education mostly in rhetoric and this enhanced his success in politics later on (BBC 1).

Beginnings of Caesar’s Popularity and Dislike

According to Wells, Caesar went back to Rome in 63 BC and become an administrator in Spain. This inspired him to seek a career in politics. He noticed that Roman politics revolved around money. He set out to buy his popularity and greatly succeeded, to the discomfort of his rivals. He became highly popular both among the people and the powerful elite in high places. In addition, many of the senators were uncomfortable with the idea of him simply coming in and gaining influence through bribery. He on his part did not care and even bribed his way into the position of chief priest. This position gave him a new standing in which he could not be criticized much. Because it was religious, he could not be easily attacked by his growing number of enemies (32).

His Posting to Spain

At the age of 41 in 60 BC, he was once again posted to Spain as a praetor. This was possibly motivated by the senators’ plan to have him go to a turbulent place so that he eventually fails. Although the trouble in Spain was a longstanding and a challenging one, Caesar nevertheless managed it excellently. He realized that he had a gift in military command. In addition to the leadership experience that he gained, he also developed the idea of keeping the spoils of war for himself. He thus became even more active because this was an additional source of income. He from then on had successful military expeditions which he had learnt that was profitable both financially and politically (Freeman 29).

Resentment by Senators and popularity among the Masses

Wells notes that among the events that increased Caesar’s public popularity and hate from senators was the funeral of his aunt just before he left for his posting to Spain. He utilized this opportunity to go against senate expectations. Roman Traditions at the time were against the idea of large public funerals for women. This rule was however given exceptions in the case of prominent people. Caesar took advantage of this privilege and organized a big and extravagant ceremony (36).

He further explains that at the funeral, Caesar gave a eulogy in which he referred to her husbands achievements and hence his own noble roots traceable to a goddess through a long, stirring speech that greatly displeased the senators. The claims and the public’s attraction to him pushed the senators to the extreme and increased their hate. Worse still, when they tried to stop him, he was overwhelmingly defended by members of the public. From then on, they set out to punish him through setting up of political obstacles (37).

Soon afterwards, Caesar’s wife, Cornelia also died. In spite of the implied threats that the senators had given during his aunt’s funeral, he repeated the same for his wife. This was considered worse by the conservative opponents because it involved a young woman, which was an unspeakable thing then. During the speech that he made this time, he praised Cornelia’s father Cinna, who was a great enemy of the conservative senators. Once again the speech greatly appealed to the public and immensely raised his popularity.  It also created for him the profile of a man who was against the establishment and this was considered to be a threat by the authorities (Moritzen 75).

Shortly after the funeral, Caesar set out on his journey to Spain. There he became an administrative officer. He was sent back to Rome rather soon and upon his return worked more towards creating a strong relationship with the common citizens. Specifically, he developed a close relationship with the people at Cisalpine Gaul. These had always considered themselves to be a highly oppressed group in the empire for a long time. They eventually decided to revolt and the possibility of a link between the revolt and Caesar’s close association with the group was investigated. He was accused of treason, although he was neither convicted nor tried. This event strengthened his enmity with the senators. Caesar’s political career on its part kept growing. His popularity kept rising (Freeman 41).

Wells further notes that Caesar later remarried. The marriage was however politically calculated strengthen him against the political forces that were against him and neutralize the effect of the senators’ attacks. However, his politics continued to go against the senators. He was a populist. As a senator, which he soon became, he supported a motion to give Pompey absolute power in handling Pirates. This move was opposed by the conservative senators. Afterwards, he supported yet another motion that was resisted by the senators to give Pompey command of the whole eastside. In 65 BC, Caesar became a Curule Aedile, the post which made him responsible for organizing public events. He organized some of the most memorable events in Roman entertainment and in so doing, developed his profile further. He also erected statues of Marius, an unpopular figure among the conservative senators. This angered the senators but because he was extremely popular, they could not do anything (43).

The First Triumvirate and rise to Consulship

By 59 BC, Caesar had proved that he possessed leadership ability and returned to Rome. He created an alliance with two great individuals of the time, Pompey and Crassus in what was referred to as the first triumvirate. This enabled him to become the consul of Rome, which was the highest office. The influence that he had accumulated in addition to that of his two partners helped him to succeed as a politician. Once he was in office, he set out to develop new policies against the wishes of a hostile senate. The reforms that he introduced were an indicator of his success in leadership. However, they could be a bit too populist. They enabled him to still identify with the masses and his popularity rose even higher. The reforms included for instance the cancelling of taxes charged upon farmers. There was also the allocation of land to men with three or more children. With them Caesars’s popularity and love from the masses was indeed enhanced as he was considered to be more in touch with the challenges that faced them (Moritzen 76).

Governorship of Gaul

Upon the end of his one-year term, he began thinking of an office to hold afterwards so as to avoid being powerless. His enemies were out to finish him and having no office would have made him more vulnerable. He thus became the governor of Cisalpine Gaul for a period of seven years. He led successful military victories once again against Helvetians and Germans. In 57 BC he also won against the Nervii of the Celtic Belgae and by 56 BC, he had conquered most of the territory in Gaul.In 55 BC a German attack was met with force and defeat at Koblenz in Germany. Caesar the built a wooden bridge across the Rhine River within ten days, as a show of roman technological might and to impress Roman people. This act displeased the senators as Rome was not entitled to fight anyone towards the east of the Rhine. Caesar however did not listen to their criticism. He again led an expedition against Britain. This further worsened the grudge (Freeman 47).

The Taking of Rome and Assassination

In 51 BC, senate decided to act against Caesar. It revoked his seat as governor of Gaul. He in retaliation decided to take Rome by force and declared himself its temporary dictator. In this arrangement, he possessed absolute power. As a dictator, Caesar tried to mend fences with his old enemies from senate. He gave pardoned them but eventually failed to win them over. He however managed to have the senate declare him the dictator for life. Only five months after returning to Rome, a group of sixty senators assassinated Caesar by stabbing him. They claimed that this was to restore sanity in leadership. The senators wanted to restore normal governance as his leadership would lead the republic to its destruction. The death of Caesar thus ended the lifetime of a man who had managed to completely change the nature of the Roman republic, mainly by getting rid of the past corrupt system and setting a standard for future leadership in Europe (Wells 46).

Conclusion

Julius Caesar led a successful political and military life. He joined the army at an early age and was able to acquire skills in military leadership. His noble roots also gave him the belief that he was meant to be a great man and he pursued this dream, ending up in the ultimate position of the consul of Rome. His political style won him the hatred of senators, especially the conservatives. His oratory skills made him an even more successful politician and his emotional speeches and populist suggestions appealed to the masses while displeasing the senators.  The long standing hostility from the senators eventually resulted in his assassination. In all, Caesar succeeded in developing a political career in which he established his popularity among the masses and resentment from the ruling class, especially conservative senators.

Works Cited

British  Broadcasting Corporation. Historic figures: Julius Caesar (100BC – 44BC), 2009  accessed 18 march 2009.<http://www.bbc.co.uk/history/historic_figures/caesar_julius.shtml>
Freeman, Philip. Julius Caesar New York: Prentice Hall, 2008.

Moritzen, Julius. Brandes on Julius Caesar Nation Vol. 116 (3002) p75-76.

Wells, Colin. The Roman Empire: Second Edition New York: Irwin Books, 1995.

Data mining is the process of analyzing or manipulating the data from different angles and perspectives (Data Mining: What is Data Mining?, reviewed on 16 March 2009, http://www. anderson.ucla.edu/faculty/jason.frand/teacher/technologies/palace/datamining.htm). By analyzing the data we obtain some useful information that can then be categorized and used to predict future patterns. Consumer focused companies use data mining to determine the impact of the internal or external factors of products on the sales and the profits. Data mining gives a company useful information that can be used to predict the patterns of sales, based on the past purchase patterns of the customers and also helps plan the future promotional activities. So it can be said that major goal of the data mining is prediction of business pattern.

For example, a shop keeper collects data on purchase pattern of some customers based on features like, the age and gender of the buyer, the frequency of purchase, the occasions of purchases.  He can then utilize such personal knowledge for bringing in innovation in the promotional strategies to increase sales (a reflective practice, i.e. the outcome is changed by changing the reflex to the stimulus).

Data mining is being used for several decades by many companies which possessed a tacit knowledge of the process. Then it was known in the name of the knowledge management. The benefit those companies derived from such process was huge. When they started using the statistical methods, accuracy of such predictions increased. Relationships between certain inputs with that of certain outcomes were derived using statistical methods. The advent of computers followed by major software developments has helped the companies turn to electronic data mining. This has increased the speed and accuracy of the predictions further. Today, custom made softwares are available for analyzing the data collected by the companies. These soft wares also help the companies in warehousing the data.

Today, the data mining has become an important knowledge management (KM) model in the corporate structure and it plays a major role in the decision making process of the company leadership. For that purpose, most of the data mining processes use the basic statistical principle of Exploratory Data Analysis (EDA). And, data mining, to some extend, makes use of Artificial Intelligence (AI) and the data base research technologies in the processing of the information.

The data mining process

In earlier days, the whole process was done manually and scope of the pattern prediction was very limited. But now, with the help of computers, the raw data is retrieved from the centralised data storage unit (warehouse) and using custom made software, they are categorized. The categorized information is then summarized to get the knowledge about a particular feature which is then used to predict future patterns.

The process mentioned above may seem to categorize data mining as knowledge management process. But, there are more complex activities involved in data mining. The initial process is preparing the data for further classification and analysis. The preparation stage involves the steps mentioned below.

(a)  Data preparation: The term denotes the process of omitting unwanted or unrealistic data (such as out of range values, like the negative value for age). This is an important process as the accuracy of the prediction hinges on the accuracy of the raw data.

(b) Feature selection: The process of identifying and selecting the prediction-related feature from the total available features.

(c) Data reduction: Large volume of data is tabulated and aggregated to reduce its volume for further, easy manipulation.

(d) Deployment:  The process of employing suitable statistical model over the information for classification, codification and pattern prediction.

(Data mining techniques, reviewed 16 Mar 09, http://www.statsoft.nl/uk/textbook/stdatmin.html)

Types of relationships analyzed in data mining

As part of the process, the data mining seeks to ascertain four types of relationship among the data being mined. The relationships are as mentioned below.

(a) Class: refers to classification of different groups for different features

(b) Cluster: grouping of two or more features which have certain relationship between them

(c) Association: determines association like the combined purchase of two different types of products

(d) Sequential pattern: determines if sale of one product is related to sale of another product.

(Data Mining: What is Data Mining?, reviewed on 16 March 2009, http://www.anderson. ucla.edu/faculty/jason.frand/teacher/technologies/palace/datamining.htm)

General analyzing methods used in data mining

There are various innovative methods are being used in data mining these days. Still, as mentioned earlier, EDA (Exploratory Data Analysis) is the major statistics principle employed in data mining. Following are some of those EDA methods used in data mining.

(a) Artificial neural network: resembles the neural network of the human body and is non-linear in nature (this can be compared to the mental models practiced in psychology for behavior analysis)

(b) Genetic algorithms: based on the method of natural selection and natural evolution

(Doug Alexander, Data Mining, reviewed on 16 March 2009, http://www.eco.utexas.edu/~norman/BUS.FOR/course.mat/Alex/).

(c) Decision tree models such as CART (Classification and Regression Tree), and CHAID (Chi Square Automatic Interaction Detection). CART is two dimensional and CHAID is multi dimensional. These are comparatively newer methods.

(d) Nearest neighbor method:  classifies each record of a warehoused data sheet with reference to a combination of classes that is part of historical data sheet. For similar class of records, similar prediction (given in the historical data sheet) can be made.

(e) If-then rule induction model: this method uses the principles of cause and effect for making pattern predictions.

(f) Data Visualization: One of the most effective methods. In this method, the data is interpreted using graphic tools by the help of computer software. It has got much potential in the future of data mining.

(Data Mining: What is Data Mining? reviewed on 16 March 2009, Ошибка! Недопустимый объект гиперссылки.).

Recent developments

Above mentioned facts are general in nature. In recent decades, there have been rapid changes in the comprehensive aspects of data mining such as, (a) the type of data being mined (e.g. aspects / field like relational, transactional, multi-media and ontology etc),  (b) the knowledge derived by mining (e.g. relationship like association, class, trend, discrimination, multiple and integrated functions etc), (c) the techniques developed (e.g. OLAP analysis, scalable data mining, spatio-temporal data mining etc), and, (d) the applications of data mining (e.g. retail market, banking, credit cards, fraud detection etc) (Longbing Cao & Chengqi Zhang 2008 Domain Driven Data Mining, Data Mining and Knowledge Discovery Technologies, D. Taniar, IGI Global)

Utility of data mining

Data mining has tremendous potential in business field today, as every company depends heavily on the knowledge management system to stay put in the competition. The companies like the Wal-Mart has achieved its mammoth success because they could provide their suppliers with up-to-date data from their large, networked data warehouse which is analyzed by the suppliers with their own custom made soft wares. By this way the suppliers could find out the purchasing trend at any given time at any given outlet and do promotional activities accordingly (Data Mining: What is Data Mining? reviewed on 16 March 2009, http://www.anderson.ucla.edu/faculty/jason.

frand/teacher/technologies/palace/datamining.htm). This type of real time data mining is also known as On-Line Analytic Processing (OLAP). OLAP has created a win-win situation for the company as well as for the suppliers. As an offshoot, even some NGO’s are making use of the data mining these days to compile and analyze the data on social capital, complex adaptive systems of society, community of practice etc and use such information for whistle blowing the HR malpractices of big companies.

Intra disciplinary utility

Data mining has also got some intra-disciplinary utilities, which in turn help the statisticians develop more accurate method for data mining. Some of the intra-disciplinary models are,

(a) Mining programme Grid Minor Assistant (uses grid computing for ontology based framework and is automated. Used in scientific discovery, optimal treatment of patients, cutting costs etc. (Peter Brezany, Ivan Janciak & A Min Tjoa (2208) Ontology-Based Construction of Grid Data Mining Workflows.IGI Global.

(b) Intra disciplinary methods named multiple criteria optimization methods (e.g. multiple criteria linear, quadratic and fuzzy-linear programming) are used for statistical analysis in pharmaceutical industry (e.g. classification of HIV-1 associated dementia), finance industry (e.g. scoring management), and banks (e.g. credit card, fraud detection) etc (Yong Shi, Yi Peng, Gang Kou & Zhengxin Chen (2008) Introduction to Data    Mining Techniques via Multiple Criteria Optimization Approaches and Applications. IGI Global).

Infrastructure requirements

Modern data mining techniques exploit the computing capabilities of the company. The selection on processing capacity of the computer is determined based on the number of queries, complexity level of the analysis and volume of the data to be synthesized. Means, more the number of queries, or more the complexity or volume of data, more the processing capacity is required. The security level of data is a deciding factor in choosing the type of hardware. Companies also use server-client networking to warehouse the data for their capacity development.

Related issues

Though the business community the world over has immensely benefitted from the data mining process, it has raised some doubts on culture and corporate ethics. Some individuals oppose the use of explicit knowledge of their purchase behavior and the codification or classification of such knowledge for company’s profit making. Still, majority of the population does not consider it harmful and the companies seem to be bothered only about the cost and profit.

Conclusion

Data mining is the process of deriving the meaning and patterns from the collected data to predict a future pattern. Thus we can safely assume that, in a broader sense data mining is nothing but knowledge management. Similar process is followed in both: the raw data is converted in to information by analyzing the relationships among the data and this information is used to derive some knowledge by analyzing the patterns between various pieces of information and finally, this knowledge creates the wisdom (knowledge management) or predict the future patterns (data mining).

References:

Longbing Cao & Chengqi Zhang,(2008) Domain Driven Data Mining.IGI Global.

Peter Brezany, Ivan Janciak & A Min Tjoa (2208) Ontology-Based Construction of Grid Data Mining Workflows.IGI Global.

Yong Shi, Yi Peng, Gang Kou & Zhengxin Chen (2008) Introduction to Data Mining Technique via Multiple Criteria Optimization Approaches and Applications. IGI Global.

UCLA Anderson School of Management website. Harvard Referencing Style: http://www.anderson.ucla.edu/faculty/jason.frand/teacher/technologies/palace/datamining.htm

The University of Texas at Austin website Harvard Referencing Style:                                http://www.eco.utexas.edu/~norman/BUS.FOR/course.mat/Alex

Statsoft.nl website. Harvard referencing styl: http://www.statsoft.nl/uk/textbook/stdatmin.html

Governors Island or Nut Island is one of the most astonishing subjects of debate in US history. It is an island, which covers an area of 172 acres, is just 800 yards away from Manhattan and is very near to Brooklyn. The island has a fort, castle and school and also has beautiful lush green fields and roads without any vehicles where people can ride their bikes and bicycles free from any traffic. Since the last few years, Governors Island is being portrayed as a tourist spot where 80% of the visitors are from NYC, 15% from other states and 5% from other countries. The island is basically popular for its boating, biking, walking, fishing, boat watching, open air concerts, educational events and different seminars. It also used to be the base camp for US military.

The Governors Island is much nearer to Brooklyn than Manhattan but it still falls under Manhattan. The people of New York City take pride in this island which they call the Treasure Island. New York City lacks any quiet and traffic-free zone where people can go for bike rides or cycling without any fear of running into vehicular traffic and the Governors Island fulfills this criteria as well as providing pleasant walks and boat rides. No wonder, it is such a favorite with the people of NYC.

Now, what makes the Governors Island such an interesting topic of debate? Well, the fact is that this island was formally handed over to the New York State Government by the federal government for a mere 1 dollar in 2003. Yes, you read it right- it is 1 dollar and now the island is being looked after by a Non Profit Organization called Governors Island Preservation and Education Corporation (GIPEC) and Governors Island Alliance. The main problem which has arisen now and is currently under discussion is that the Governors Island in its present situation is not getting any funds from the State Government. Hence, the GIPEC and Governors Island Alliance are finding it difficult to run the place and they may have to shut down the place. So, the State Government is (now comes the interesting part) planning to sell off the island to the higher bidder. This report will help us evaluate the importance of the island and also help us determine the kind of business or industry, which would make the island a profitable venture. (“Brief History of Governors Island”, 2004)

The current situation and how it came to be in 1997? (1997 is a cutoff because that is the year in which it was decided that the federal government would leave the island)

The current situation of this island can be summed up in one sentence that “it is very critical”. We all remember the movie Terminal and we also remember what happened to the citizenship of the main character of the movie (Tom Hanks). After the US captured the country from where he came, he became the citizen of nowhere. Even after being a very nice person he was harassed and had to stay in the airport for more than 11 years. The situation of the Governors Island is something like that right now; according to the local people it is a treasure island but the State Government feels that it is a burden which should be rid off as soon as possible. It is very surprising that the State Government is not ready to spend any money on this island but want to sell it to some third party.  Even with the GIPEC trying very hard to prevent this scenario, it is being felt that the situation cannot be turned back and the island may have to be shut down. As per David Paterson’s new budget there are no funds allocated for this island and even New York City is forecasting a multimillion dollar deficit, higher taxes and may be a layoff in its budget.

The Governors Island is only accessible via boat or ferry and for this service to be provided to the local people, the organization needs some funds from the government. Till 2008 the government had given funds to the island and the GIPEC is running and keeping the island alive with this fund. Basically, the GIPEC is running the island and trying to save its panoramic beauty and its rich history, but at the end of the day it cannot do anything without the support of the state and the city. A huge amount of funds is required to save the island and maintain its historical value and it is not possible to collect this large amount from the people of Manhattan, Brooklyn or even New York City. The main help which is required can only be provided by the state government and its funding. The Governors Island Alliance had asked for $ 7.4 Million from the state and the city for the 2009-2010 financial years to run the ferry so that the land could become accessible to the general public. But ironically, the Governor’s proposed state budget includes no operation budget for Governors Island. (“Keep Governor’s Island Afloat”, 2009)

In 2002, the federal government also found itself strangled due to the financial crunch. Tax cuts and the high expenditure for the US army were the reasons behind this shortfall in funds. Though $ 10 million may look a very small amount for the Federal government but according to them the Governors Island was not a profit making place and there was nothing coming out of it. So, why should they continue spending any money on such a place? $10 million is required only to keep the island functioning and apart from this amount almost $ 20-40 million is required just to stabilize the existing structure of the island. (Elias, Barton-Sweeney, Oster and Podolny, 2007)

The local people of Brooklyn, Manhattan, New York City and even some of the citizens of other countries feel that this Treasure Island is facing jeopardy only because of political drama. But every one appreciates the design contest winner of the Governors Island, West 8, for their relentless efforts to convert this island into the main attraction of the State. Even though no budget has been allocated for this island from the state government and from the city, West 8 continues to work on the project to transform the island from a coastal guard base to a world-class 5 star International standard park as a recreational tourist destination. Despite the shortage of funds, when the island had opened initially, it had included in it plans a promenade of 2.2 miles encircling the whole island along with a new 8 acres picnic area outfitted with cabanas. The island offers opportunities for fishing, kayaking, biking, mini-golf course and polo. Many such plans have been on the anvil for the island but none took shape due to paucity of funds. (“Keep Governor’s Island Afloat”, 2009)

The footfalls in the island is constantly increasing; when it opened for the first time to the public it had a footfall of 8000 people only but it is increasing steadily. In the last few years, 125000 people availed the ferry service to visit the island and this year (2009) Governors Island Preservation & Education  Corporation expects 2,00,000 visitors. But, because of no support from the state government as far as the funds are concerned, the GIPEC is in a big dilemma. They had bought the cool old ferry worth $ 500,000 which has turned out to be a waste and after failing to sell it off through normal channels, they are now planning to sell it through E-bay.

GIPEC was very much determined about their ambitious plans of converting the Governors Island to a wonder park of the world but the tentative transformation is a future and farfetched proposition slated for 2013. Now the biggest challenge for GIPEC is how are they going to sustain their dream project if they do not have the necessary funds? The demolitions started last year with the Liberty Village being demolished first followed by the former residential building and the most recent demolition was the Super 8 Motel. So, on one hand, while the whole project of conversion is in a limbo, on the other hand, the historic beauty of the island is being demolished gradually.

Leslie Koch, the person who is overseeing the reinvention of Governors Island had accepted that the project has only $20 million in its capital funds budget this year which covers phase 1, but it requires more than $ 200 million to complete the project. (“Is the Governors Island Redo in Jeopardy?” 2008) Now, the problem, as mentioned earlier, pertains to the funds or rather the lack of it. The State and city seemed to have washed off its hands off the whole affair and would not be giving even $7 million a year, let alone $200 million. Again, West 8 has chosen 90 acres of land to start with and the entire park will take 15 years for the completion and therein lays the present scenario of Governors Island. How is it possible that a beautiful island of 172 acres is getting wasted and being neglected by the government? To find out the reason for this pathetic situation, we have to delve into the past history of this island. In 1524, Giovannida Verrazzano sighted the island and in 1637 Wouter Van Twiller, the Dutch Governor of New Netherlands, privately took the possession of the island from the native American owners in exchange for two axe heads, a string of beads and a few nails. After that, many things have taken place on this island such as it being used as a military base, coastal guard base, tourist spot and many more. In 2003  the federal government handed over the Island to New York City for $ 1. The main aim was to sell the island to the highest bidder later. (“Is the Governors Island Redo in Jeopardy?” 2008)

According to The New York Observer’s report in May 12, 1997, the City had plans to turn the Governors Island into an old tourist trap. It also reported that the City had hired Ernst & Young to study some proposal for the island’s future theme park including the plan which would create a Colonial New York Theme Park utilizing some of the Island’s old heritage land marks and properties. According to Devin Leonard the sale of the Island had been identified as the biggest real estate deal in and around Manhattan since the development of Central park.  (Ellis and Wong, 1997, 53)

The biggest question which New York City has to answer is that when they were unable to provide the funds to keep the island alive then why did they accept the Federal transfer of the Island? The Times wrote that a $25 million cost to maintain the ferry service would be too high for New York to bear alone. There is a terrible lack of planning and negligence and lack of dedication from the City towards the island. Few people have also said that even if New Jersey would have taken the Island at $2 it would have been better. The officials of the regional Plan Association said that they feared that the pressure would result in the creation of a new residential area like Roosevelt Island on the East River and which would make the island inaccessible to people who wanted to use it for recreation.

The Governors Island is a land of scenic beauty not only for the Lower Manhattan skyline but also that of the Statue of Liberty and East River bridges, Staten Island and even New Jersey. This beautiful island cannot be allowed to go to waste and it is once in a century opportunity to make this island a worldwide land mark. Governors Island has the potential to become the ultimate statement about reinvention in the next millennium, but for some petty political or poor financial situation which is forcing the project to remain a pipedream. (Horseley, n.d.)

It is understandable that the GIPEC is not getting the funds to execute the reinvention project but people do not understand why the demolitions had to take place. If the island could not be reinvented, why destroy the beauty and the heritage of the island? Even if the Super 8 motel has been demolished, the rich historic landmarks like Fort Jay, Castle William and some Georgian Style buildings should be preserved.

With everybody wondering on how to save the island, the one possible solution would be to create a modern monument which would pay homage to and not detract from the Statue of Liberty and the Lower Manhattan skyline.

The City Planning Commission Chairman Joseph B. Rose was quoted on April 1, 1997, in The New York Times as saying that “Just to maintain the historic buildings and infrastructure on Governors Island would cost somewhere between $30 million and $60 million a year, and the city is not in a position to make that kind of expenditure.” (“Governors Island: A Gift That Bears a Close Look”, 2009)  Rose said the City expected to have a plan for the island before the end of 1997.  It was expected that the Coast Guard would leave the island that summer, as per the report of The New York Times on April 19, 1997, New York University was eager to use some parts of the island for converting them into athletic fields, student housing and may be classrooms.  According to Mr. Rose, the University’s plans would have to be made in conjunction with another use. For some people, the most transparent and easily comprehensible plan would be to create a global and well furnished conference centre and hotel in the island with around 50 floors or be high enough to provide 3000 hotel rooms. It could then become a beautiful monumental land mark for the residents of Brooklyn and Manhattan as well as a world class hotel which would fetch good amounts of money. But, in the midst of all these expansion plans, one should not forget that Governors Island is for everyone and access to normal people should not be denied. Even if a world class hotel is built here, a part of the land could be given as a park to the residents of Brooklyn and Manhattan. According to a study the city will have to provide the ferry service to make the island accessible and the survey shows that a $3 or $4 round trip fare might be appropriate from Manhattan but the rates should be cheaper for the residents of Brooklyn. Even though many ambitious plans about the Governors Island were discussed, nothing concrete took place in 1997. In mid -July a Congressional hearing was held on the Island which informed that the coastal guards had vacated the island but no announcement regarding the future development of the Governors Island was made. . In 1997, Elizabeth Kolbert wrote a column in The New York Times, “If Robert Moses weren’t dead, he’d be mortified, there are no plans to make plans – proof, if any were needed, that the era of great dreaming in New York has passed. As Representative Carolyn B. Maloney, Democrat of Manhattan, observed: ‘Only in New York City could somebody be offered 173 acres with river views and historic sites and have no one act on it.” (Kolbert, 1997)

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History of the island pre-colonial times to 1997

Pre-Colonial Era

The American natives discovered this island and they used to call it Nut Island as there were many oak trees. It was also the perfect place for fishing so, many natives and others used to visit this island occasionally. Then in 1524 Giovanni da Verrazzano discovered this beautiful island and in 1624, the Noten Eylant(Island of Nuts was the landing place of the first settlers in New Netherlands.After a few years, in 1637 Wouter Van Twiller, the Dutch Governor of New Netherlands bought the island from the native Americans in exchange of two axe heads, a strings of beads and few nails for his personal use. In 1664, the British took possession of this island provisionally and initially used it for housing of the Governor’s sheep, cattle and horses. In 1674, the British took possession officially of this island and renamed it the “Governors Island” in 1784 as they had basically acquired the island for the accommodation of the His Majesty’s governors. After almost sixty years, in 1755, the first trained unit of British soldiers was sent to the island which was joined by Royal America, a British regiment recruited in America.

In 1776, the continental troop under the power of George Washington occupied and fortified Governors Island against British army intruders. This capture was basically to prevent or to stop the further advancement of British navy but when the war broke out in August, the American troops were forced to retreat from Governors Island. However, after the revolution, the island came back to New York State when,in 1783, the British Royal Navy surrendered the island to New York State. For the next 10 years the island was given on lease for race tracks and as a summer resort. New York State used volunteers from Columbia College, political clubs and trade guilds and Governor Clinton organized the construction of new defenses on the island; he fixed a rate of three cents for passenger rowboats.

In 1794, work on Jay Fort was started after the name of the patriot John Jay. In 1800, New York ceded this island to the US. Then, in 1811, another historical landmark, the Castle Williams, was built on this island. It was built on the edge of the harbor while the historical castle was named after the name of its designer Jonathan Williams. He was the first superintendent of the West port. In 1815 the first celebration was organized on this island in honor of the peace treaty with Britain which marked the conclusion of the ending of the war of 1812. Finally in 1821, Governors Island became the official head quarter of the Army of the East. After a couple of years, in 1823, this island was marked as a signal station. After ten years, the Ordinance department of the Army selected the island as a major arsenal. Then after 15-16 years, the island faced the biggest trauma in the form of the periodic cholera which swiped the island like a curse. 1852 was again the time for a change; the Governors Island was changed from artillery to a recruiting depot. From1861 to 1865, during the Civil War this island was the central Army Recruiting station for the Eastern Seaboard. Castle Williams functioned as a prison camp at that time. Then in 1870, another shock shook the island and it was washed away again with the epidemic of yellow fever. After eight years the island changed from Army Fortification to an administrative center. Then after 10 years in 1897, the Congress proposed a bill to New York State to convert the island to a park for public use, but the Army Board rejected the proposal. In 1914, the World War broke out and the world’s shortest rail tracks were built to carry coal, machinery and supplies from the harbor to warehouses. During the Second World War (1939-1945), this island was one of the major administrative centers. After 200 years, the US Army left the Governor’s Island in 1966 and the island was converted to a Coastal Guard base which was the largest in the world. As we go into the history of the Governor’s Island we can see that Governors Island had served as the base for many historic events. In 1986, the island was the base to add light once again to the newly established Statue of Liberty by President Ronald Reagan. In 1988, President Reagan sponsored a U.S.-U.S.S.R. summit in partnership with Mikhail Gorbachev on Governor’s Island. In 1993, the U.N. sponsored talks on the island to help re-establish democratic rule in Haiti. In 1995, the Coastal Guards deserted the island and in 2003, the historic transfer took place when the federal Government transferred or handed over the Island to New York City for $1.

The usage of the land and a comparison with Battery Park City

If we go through the history of Governors island, we can see that the island was used for many things beginning with fishing, then as housing for cattle and moving onto becoming the house of the governor. It was later used as an arsenal, followed as a military base and then as the Coastal Guard Base. It was also opened for public use and thus we can see that the island served as the base for many different kinds of activities.  Now, it is 172 acres of land and most parts of the land are for public purpose. But, the main question is that such a geographically rich land along with its rich heritage is being left untended just because the government is not ready to spend money on it! Why? That is the main question of the local people to the New York Government. We can compare this island with Battery Park City but it has to be kept in mind that Battery Park City is a residential and commercial area as it is attached to Manhattan. But, Governors Island is something beyond that with its important geographical character, having been used as a military base and then continuing as a coastal guard base even after the US army had left the island. The island is situated in a unique position which affords a strategic look-out of Manhattan, Brooklyn as well as New York. This was the reason it was taken as a part of defense. If we consider Elise Island or Battery Park City, both of them are attached to the land, so it would be very hard to save the land from the intruders if they entered the land. But, with an island it is easier to provide protection to cities from intruders and Governors Island is ideally suited for this purpose.

Physically, the island used to be only 92 acres, but it changed gradually during the early twentieth century. Governors Island got its new look after the Army Corps of Engineers took care of the supervision of the deposit of 4,787,000 cubic yards of fill on the south side of Governor’s Island, dumping the rocks and dirt from the excavations for the Lexington Avenue Subway on it and this added 103 acres of flat land bringing the total acreage of the Island to 172. (Battery Park City Authority,  n.d.)
There are many people who think that Governors Island should be made like Battery Park City. Well, as mentioned earlier, it is just not possible, as the Governors Island has tremendous historic value whereas Battery Park City has only commercial value. This island was the gateway to New York City, Manhattan and Brooklyn and was used as the defense base. Fort Jay, Castle Williams, the school and many residential areas of the island have been used for the troops etc. and stand testimony to the fact that the land was judiciously utilized for defense purposes. Besides, Governors Island always had a large area at the disposal for normal people. Nowadays, Governors Island is used as a venue for concerts besides providing walking, biking, cycling, boat watching and fishing opportunities. For the people of Manhattan, Brooklyn and New York City, the island is a favorite recreational ground and the development of this island cannot be classified in the same category as Battery Park City. (Mollenkopf, and Castells, 1991, 120) What if we convert the Statue of Liberty Island into a very upscale residential plot? Will it be accepted by the normal people or even by the government? No, and that’s because it has some significance of its own and the same goes for Governors Island. There are some emotional attachments related with the Governors Island for the residents of Brooklyn and Manhattan. Confined as they are in polluted city areas, Governors Island is a place of relaxation for these residents. Battery Park City on the other hand, is a mere 92 acres planned residential and commercial area attached to the southern side of Manhattan city.
This island was created on the Hudson River, adapting around 1.2 million cubic yard of dirt and stones which were excavated at the time of the construction of World Trade center. The Battery Park City is maintained by the Battery Park City Authority (BPCA) which came into being by New York State under the authority of Urban Development Corporation. (Carey, n.d.)

As per the 1989 contract signed between the BPCA and the City of New York, an amount of $600 million changed hands from the BPCA to the city. Battery Park City is bordered with fence on the east by West Street and this separates the region from the Financial District of downtown Manhattan. (Howe, 1982) On all the three sides, west, north and south, the area is surrounded by the tidal estuary of the Hudson River. The development of Battery Park City consists of five main sections; from North to South, the first neighborhood, the “North Residential Neighborhood,” consists of sky catching residential buildings, a large hotel, Stuyvesant High School and a mall, currently occupied by a movie theater, restaurants and a discount store for leather goods and accessories. The previous parkland in that area is being converted into high-rise buildings.

To the South lies the World Financial Center, which is a complex of several commercial buildings occupied by tenants including some of the biggest names in the industry like American Express, Deloitte & Touche, Merrill Lynch and Dow Jones & Company. The World Financial Center is one of the renowned buildings used for commercial purposes around the world. The ground floor of the building and some parts of the second floor has been occupied by a mall and its center position is taken by a steel & glass atrium well known as the “Winter Garden”. On the outskirts of the Winter Garden, a sizeable yacht harbor lies on the Hudson beach. This is called the North Cove.

To the south of the World Financial Center, lie the majority of Battery Park City’s residential areas in three sections: “Gateway Plaza”, a sky scraping building complex; the “Rector Place Residential Neighborhood” and the “Battery Place Residential Neighborhood”. All of these are mostly low-rise building complexes. These neighborhoods comprise mainly of the residential buildings of the area accompanied by park space and different categories of supporting businesses, for instance, supermarkets, restaurants, movie theatres. If we check the demographic profile of the Battery Park City it appears to be e a metropolitan place consisting of 75% Whites, 18% Asians, .04% Pacific Landers, 3% African Americans,.06% Native Americans, and 3% of other races. 52% of the population is from Asia. Around 30% are from Europe, 8% from Latin America and 10% from other places, most notably, Canada. Today, around 10,000 people are living in this city and 54% of them belong to the upper middle class who are earning more than $ 100,000 annually. If we take a trip into its history, we will come to know that throughout the 1800s and early 1900s today’s Battery Park City was known as the Greek Quarter. Some of the landmarks in Battery Park City are World Financial Centre and the most well known World Trade Center. The terrorist attack in 2001 was devastating but, the significance of the place is such that the Goldman Sachs’ group started their head quarter in this place taking up about 2,100,000 square ft. which is really huge. (“Battery Park City, Manhattan”, n.d.)

Looking at the site plan of the Governors Island, we will see that the land on this island has been used very properly and everything is there but on a smaller scale; there are residential buildings, a small school, park, castle, fort, small theatre hall, seminar hall, hospitals and many more. Historic buildings more than 200 years old exist on this island and many of them are still in very good condition. The problem which arises is that these historic buildings need to be preserved, yet, for the development of the island demolition of some buildings cannot be prevented. West 8 has plans to convert this island into the world’s biggest park, which would become the main attraction of the world; this park would have many ultra-modern facilities which would fetch huge amounts of money for the state government. Yet, GIPEC is not getting any financial support from the government to improve the connectivity of the island or to develop the island.  There is no operating budget for Governors Island this year. The state government wants minimum $30 million annual return from any business organization who will take the possession of the island.

The government had invested huge amount of money to develop the Battery Park City and that is one of the main reasons for its development and why it was a lucrative property for the builders and real estate companies. But, what is happening with Governors Island? It has become a most neglected real estate property in New York. Can anyone believe that 172 acres of Property which is on the heart of Hudson River, 800 yards from Lower Manhattan, nearer to Brooklyn and New York City, nearest island to the Statue of Liberty Island, is getting wasted? The value of the island is more than $ 3 billion but if the government does not take any initiatives to save the island then, how is it going to survive? It is true that very few people know about Governors Island, but the only reason behind this is the New York State Government’s silence and reluctance to make it known. We can take the Battery Park City as the model for the development of Governors Island if and only if the state government comes forward to save this island. Real estate brokers have already started giving advertisements to sell some of the residential buildings on Governors Island but if proper connectivity is lacking then, who is going to buy this property? It is high time that the state government took some proper steps to save this island.  (“Battery Park City, Manhattan”, n.d.)

Current proposals for the development of Governors Island:

Governors Island, one of the most talked about islands in the world is situated in the heart of Hudson River, which is 172 acres of land and full of historical sculptures. Its unique geographical situation offers tremendous opportunity for development. The New York State is unable to run the island, so many business proposals have come for the island. Before we present our proposal, it is very important to study the other proposals which have come for this island. After 2003, there were many organizations that showed interest in this island. The state government itself thought to turn it into a world class park. The plan was also finalized but problems arose in the form of funds. (Kugler, 2008) The government was not ready to invest anything in the development of this island because of financial crunch. So, the GIPEC have declared their intention to sell the island but not at less than that $500 million. Now, there are many small organizations which are willing to take possession of the island’s historical buildings. The public New York Harbor School, for example, is currently restructuring a building and will start occupying it in September 2010. There is also an art studio sponsored by the Lower Manhattan Cultural Council that will soon occupy another historic structure as they want to provide some low-cost space to artists who have made New York their home for the sake of art. A private proposal for building a $2 million café and performing space is likely to be approved soon. The remaining 75 historic buildings of the island have been made stable and are ready to be undertaken by different nonprofit organizations. Some of the organizations and even GIPEC have realized that the sudden collapse of the Wall Street stock market as well as the financial crunch of the United States has left the normal people looking for some low-cost recreation. So, for this reason, Governors Island is ideal as it has always been a low cost recreational island for the residents of   Brooklyn, Manhattan and New York City. Most of these people are looking for inexpensive outings and Governor’s Island is the best place to hang around with their families. This situation has injected tremendous hope in the city’s tourism industry. They expect the residents of adjacent towns to spend more than $ 2 million this year for their vacation and recreation on this island.  But, unfortunately, this will not be enough. The state government has to help with the finances and moreover, how are the tourists supposed to make their way to the island if the GIPEC sells off the ferry, as it is planning to do so?!   (Glen and Shaver, 2006)

The GIPEC had tried to run this island and to make it a profitable center. For example, on May 29, 2007, the American Institute of Architects New York Chapter (AIANY) and the Governors Island Preservation & Education Corporation (GIPEC) declared the commencement of a new exhibition exhibiting the five visions for Governors Island’s park and open spaces. The five chosen teams presented their designs and the exhibition received critical acclaim across the world. The teams had been selected from around 29 teams from 10 countries and 65 firms and they would compete to create a new park on Governors Island.
Amongst these teams, West 8 was chosen to reinvent Governors Island and their design was such that they could have easily turned the island into the 8th wonder of the world. But, the paucity of funds has left the whole project in jeopardy.

Going back into the history of the island, we will see that there had been many proposals to build casinos and high-rise luxury hotels but they had been turned down by the State government because of some restrictions from the federal government regarding the building of casinos.

Larry Silverstein, whose firm built seven World Trade Centers had said that Governors Island, would be the perfect site for casinos should the state Legislature approve casino gambling in the city. The real estate magnate Lew Rudin, also President of the Association for a Better New York, claimed that the island would be an interesting place for casino gambling. Silverstein said that accessing the island by boat would give the island “a very special quality.” Silverstein also said that developing another means of access to the island through private helicopter service would also be an excellent idea. Modern marine facilities and retail stores would be required to support this island. Rudin said that many would like to see it turned into a public park, but he didn’t think there was enough funding for a park. And that was the truth. Raquel Ramati, an urban designer and planner first in the city government and later as a private consultant said, that the Governors Island would be a perfect place for an excellent conference center/hotel. He also said “Because of the isolated environment and unbelievable views, it would make a great destination point for three or four-day conferences where business people could go to reflect”. Rudin said a combined convention center and hotel facility was another possibility, especially because there was already a golf course and which was the only nine holes golf course nearby to the adjacent towns. It also had room to build tennis courts and easy access to downtown Manhattan via the ferry was very much possible (provided, the ferry service was supported by the state government). Many developers wanted to make it a residential colony but most of the big real estate companies turned it down due to the difficulties in getting a work force on and off the island via boat. There were many other proposals that came across; a partnership of nine organizations proposed Harbor 360, an environmental education and research facility on Buttermilk Channel. It was to comprise of a boat building and repair shop operated by the Harbor School, which is a small public high school. The development structure would be derived from a two-acre scale model of New York Harbor and which would allow people to have fun in the waters and experience various recreations offered by the waterfront. Others looked upon Castle William, a circular fort, as a basis for the New Globe Theater, which has connections with the Shakespearean theater in London, adapting the same name. The plan also comprised of an aquatic park and space for cutting edge technologies. Along with this, some CUNY facilities were also to be considered, though it was not going to be an entirely new campus. Carter Craft, director of the Metropolitan Waterfront Alliance, said he would like to see things “that create an opportunity for New York City kids, and urban kids in general, to get outside,” (Robinson, 2005) while Pirani thought about a “large flexible green space.” (Robinson, 2005) The GIPEC also came up with an idea of creating an Iconic island and Innovation Island, both of them which were basically focused towards saving the historic value of the island as well as rebuilding the historic building of the islands. Someone also commented that the Fort Jay could be a very good wine cellar. The 22 acres of land in the Governors Island belongs to National Park Service (NPS) and Fort Jay and Castle Williams come under this. The NPS has not yet decided what to do with this. After the transfer of the island from federal government to New York City around 2002, when the GIPEC was formed and they got 150 acres of land of Governors Island, many points were noticed about this island and they are:

Public Accessibility:

The island must be accessible to the public, subject to available ferry service. Public accessibility is very important for the tourists and for the local people to keep the island alive. The problem is that the State government is not at all ready to take any steps towards the betterment of the ferry service as it is really under tremendous financial pressure. The state government is not prepared to spend close to $ 7 million every year for only around 200000 visitors. Some organization also proposed a bridge from Manhattan or from Brooklyn but that seems to be extraordinarily expensive and it is also not possible with the busy marine traffic in Hudson River near Governors Island. But, private boat service is a must for accessibility.

Public Benefit Uses:

A portion of the Island (more than 90 acres), inclusive of the National Monument, shall be utilized for the following purposes of Public Benefit:

1. Parkland Uses:  Keeping aside the National Monument, forty acres are to be dedicated to parkland use at present and for the future. At least twenty acres must be contiguous.

2. Educational Uses: a minimum area of twenty acres should be used for educational purposes including amenities such as classrooms, incubators, research facilities, campus facilities, conference facilities, offices, libraries, auditoriums, student, faculty housing, student services and dining facilities.  These uses must remain in place for not less than 30 years.

Additional Public Benefit Uses:

The remaining area of the land used for public benefit may be utilized for obtaining additional open space. This would include a public esplanade around the perimeter of the island along with a publicly accessible active and passive land and water-based recreation opportunities, museums, historic sites, surface and water transportation uses, and not-for-profit cultural facilities.  These public benefit uses must remain in place for not less than 30 years.

Additional Permitted Uses:

This category of uses include entertainment amenities, housing opportunities for caretakers and managers of Governors Island, provisions for police service and fire equipments, short-term and extended lodging accommodations, cultural and arts arrangements, hospitality facilities comprising of hotels and conference or banquet facilities, commercial office space, retail, service and dining facilities. Apart from these, there are public works, health facilities and other public, commercial and mixed-use options to be materialized.

Prohibited Uses:

Such uses comprise of residential uses, except when explicitly and expressly allowed; industrial or manufacturing purposes; building of casino or gaming facilities; parking options, except for vehicles which are used for operation and maintenance or transportation provided to visitors and electric power generating houses, which are used only to cater to the Governors Island. These restrictions are in place for 50 years.

Historic Preservation:  The rehabilitation works performed on any structure on the Historic District on the northern portion of the Island must comply with the manual of Governors Island Preservation and Design, which was structured by GIPEC.

According to the federal government there are many restrictions in this city and some of them are:

No one can open any manufacturing unit over here.

Opening a casino in this island is strictly prohibited.

Residential colony cannot be opened in this island.

So, for any new project to take off, these points must be considered. Besides, the above-mentioned points, we also need to check how energy is going to be provided for the electricity in this island, and how the connectivity can be improved in the island. We also need to verify the presence of substances like lead paint, asbestos or other hazardous materials and how would the GIPEC address issues related to their handling and disposal within the development? Does the island contain any “brownfields” and what is the revitalization plan for such sites? We also have to think that even if any organization opens any business in this island, how they are going to protect the environment of the island. Any sensitive habitat of the island should be looked into and its future protection guaranteed. Are police, fire and ambulatory services currently provisioned and accessible on the island?  If not, how will these services be available in the future?  How will the island be prepared for emergency evacuation if and when it is necessary?  For example, if a sudden fire breaks out in the island then how the people are going to be rescued from the island or how are they going to make their own escape? Drinking water supply is another area for serious consideration. So, before putting up any proposal we need to address these questions and analyze the strengths and weaknesses of the island itself.

There were many proposals submitted to GIPEC and they were basically based on educational development, luxury development, business, and mixed usage.

Let us consider the proposal for Educational Development:

Education is always an important part of every society and the same goes for Governors Island also. Moreover, since this island is home to many valuable trees and a lot of historical value is attached to this island, schools and colleges would be a positive proposal. There are already 36 odd Colleges near the vicinity of Governors Island so opening another educational institution would not be a bad idea. Many proposals have already come to build educational institutions on the island. Three universities, Columbia University, the City University of New York (CUNY) and New York University (NYU) have shown interest to open their study rooms on this island. But, if this proposal is taken seriously, we first have to consider how the students are going to come to this island on a regular basis for their schooling and how will the target of an annual revenue of $30 million be achieved? Also, what will happen to the other 110 acres? (22 acres of land belongs to NPS, and that cannot be used). One of the main weaknesses of this proposal is that any good school or college will take up only 30-40 acres of land at the most and this is land of 172 acres. What will happen to the rest of the land?  Another important factor which ahs to be kept in mind while considering this proposal is that for the residents of Manhattan or Brooklyn, Governors Island has been their recreational zone where they come to escape from the pollution of urban life and enjoy their walking, cycling, fishing etc. For many, this island constitutes an inexpensive weekend outing. These residents cannot be stopped from using the island as there is an emotional attachment to it. The number of visitors can become a problem as it will create disturbance for any school or college over there. Even if we nullify the problem of student transportation by making the school or college a residential one, we cannot stop visitors from entering the island. And though education is a social need and even if the existing school on the island can be renovated, the problem of generating $30million in revenue from the educational institution will remain, as the school or college simply cannot fetch the required amount. And if the institution cannot provide the requisite profit for the maintenance of the island there is no point in opening an educational institution.

The proposal for other business:

Other proposals for the island included turning the island into a world class park or a tourist spot or even to make it a central prison. If we analyze the ‘permitted uses’ clause in relation to the island we will see that no manufacturing business is permitted on the island. The main reason behind this is the insufficient connectivity which is necessary fro transportation of raw materials to the island. The other reason is that of pollution. As per the federal government, the Governors Island is the only place which is pollution free and hence for nature lovers it is just like paradise. The concept of a world-class park thus seems feasible and there have been many companies willing to invest in the island to turn it into a major tourist spot. West 8 had proposed a plan to GIPEC for the renovation of the Governors Island which was just amazing. According to West 8, the estimate would come to more than $200 million and it would take almost 15years for the project to be completed. But, the question which now arises is that how much revenue would a $200 million ultra modern park be able to generate and how would the inevitable pollution which would follow the rise in visitors be controlled? On top of that, even if the required $ 200 million were invested to make this island the 8th wonder of the world, how were the visitors going to enter the island? The GIPEC is selling their $500,000 ferry on EBay, and Government is not ready to spend a single penny on this island for the betterment of its ferry service. Now, if the government is not taking any initiative to improve the ferry service for further development of the island then what is the use of spending $200 million on turning the island into a park? A similar problem faces the proposal of renovating the 150acres of land as a tourist destination.

The prison seems a better option as Castle Williams is already there and which was previously used as a prison only. It is also isolated from the main towns nearby and its poor connectivity could have worked in the prison’s favor. But, again, the question of generating revenue arises, so, this proposal too does not seem to be a good idea.

Proposal for Luxury Development:

The luxury development is one of the most promising proposals for this island. There were a number of proposals to promote Governors Island as a new luxury destination for the residents of the Manhattan, Brooklyn, New York City as well as for people from different countries. Many of the investors proposed to convert the Governor’s Island into a second Las Vegas of the United States. Governors Island is already a landmark for the Brooklynites and the residents of Manhattan. But, due to the short fall of financial support this island is losing its value. As per the GIPEC and state government, the island should generate a minimum of $ 30 million to sustain itself. Any business proposal fetching revenues of more than $ 30 million seems a bit far-fetched. The maker of the World Trade Center had said that only a casino club could fetch the required amount of money but due to federal restrictions, the casino club is prohibited in Governor’s Island. It is very hard to understand why the federal government is not ready to change the rules and restrictions of this island which they had made many years back. Even after tremendous pressure from many real estate organizations, the federal government as well as the state government is not ready to change the restrictions.

There are some specific characteristics needed to select space for gambling or casinos. It requires a place which can be centrally controlled; where the security would be centrally controlled and where any unnecessary access could be blocked. The Governor’s Island fits the bill as far as these points are concerned. The promoters also would not be keen on cheap gamblers here.  They would prefer the big gamblers who can avail expensive ferry service or private helicopter service and who will spend hefty amounts on gambling. In 1997, Mayor Giuliani had announced that he wished to put up a five-star, Monaco like casino on 25 acres. New Jersey and Connecticut were making a lot of money out of the casinos so, why not New York City? A study by Coopers & Lybrand showed that the casino business could fetch US$ 57 million a year. It also showed that casinos could become one of the most profitable businesses in Governor’s Island and the usage of Governors Island as a casino joint would help the Federal government to balance its financial problems. But the City and state government are not at all willing to listen to any of the casino promoters.

There were many organizations who proposed to build a world-class hotel on this island. The basic concept behind this was to make the island a major world attraction and many real estate giants came up with numerous designs. Many of the proposals came for a high rise hotel which would have a world class conference hall where important conferences could be organized. This proposal seems to be very promising as the geographical location of this island is perfect for setting up a hotel. The hotel would be minimum 50 stories high accommodating more than 2500 luxury rooms. And the design of the island would be such a modern design as to become one of the iconic landmarks for the people of Brooklyn and Manhattan. As we know, this island already has a mini golf course having 9 holes. So, this would be an added value for the hotel. On paper, this proposal seems perfect but, the problems of connectivity and transportation remains. A private helicopters service can be started but again, that depends upon incoming financial support which is negligible at present. Also, the idea of making it a luxury destination is difficult since the island cannot be summarily closed to the general public. Balancing the two factors will be tricky. And on a more mundane note, we should not forget that before embarking on the construction of a 50 storied luxury hotel, soil testing and land inspection are imperative. So, there many hurdles to be crossed and which may just prove to be very troublesome, even though the idea of a luxury hotel is a good one.

The proposal for Housing – Even after the recession in 2002 the prices of the residential properties kept on climbing higher and higher. Many developers thought that the Governors Island could become the home for 75000 residents. Many wanted to follow the module of the Battery City Park for Governor’s Island but the local government was not in favor of this as it felt that due to the high-density population, the ferry would over-burdened. It was also argued that this would render the island inaccessible to the local people who were used to going there for their recreation. Besides, it was also feared that the historic heritage of the island would also get affected by the residential development.

The proposal for nonprofit offices – Many other people suggested that the beautiful landmark buildings of the older section of the island would make wonderful offices for different nonprofit organizations in the city. There was a high demand for this kind of development. The example of a former army base in San Francisco within the city and which was eight times larger than Governors Island was cited as being converted to civilian use and many of the former buildings were also converted to office space for nonprofit organizations.

The proposal for the mixed use:

We have come across many proposals for the development of Governors Island; some want it for a park, some wanted it for casino clubs, some for a high rise hotel and some for schools. But, if we analyze all the proposals then we will see that only a judicious mixture of all the above proposals would be the best for the island. It is a land of 172 acres in which 150 acres belong to GIPEC and whatever has to be done, is to be done within these 150 acres. Now, we have to understand what kind of mixed use would be the most beneficial for everyone concerned, including the general public. This land has always been open for the people of Manhattan and Brooklyn, so allotting around 30 acres of land for them is very important. To make the island an iconic landmark for the United States, building a world class luxurious hotel is also very important. Some funds from the US government may be got to improve the connectivity of the island. Many exhibitions and concerts can be held on the island. For such cases, the 30 acres park can be utilized. Tourists also, can visit this island. The 22 acres of land which has Fort Jay and Castle Williams, a negotiation with NPS and GIPEC can be made to charge tickets to visitors to this area. Many educational organizations are ready to take possession of some of the land of the island to open a school. A world class hotel management college which can become a residential one can be opened on this island. This will take care of the transportation problem as well as providing high class studies including management and doctorate courses. The high level of education imparted in this college will come in useful as the world class hotel will require highly qualified people. Around 10 acres of land can be allocated for this college. The rest of the area can be allocated to an event organizer company to conduct different exhibitions and events. So, the island will encourage visitors through the year. A mix usage strategy will ensure that the entire space of the island gets utilized properly. The hotel, college and the events grounds can fetch decent revenue and other tourism potential of the island can be explored. Simultaneously, the residents of Brooklyn and Manhattan need not be deprived of their favorite recreation spot as the island will be accessible to them like normal. This plan will enable Governors Island to serve as an iconic landmark as the hotel will be visible to nearby towns also. And since, it will also serve as a historic spot the rich history of the island will also be preserved. So, this mixed proposal should take care of all the problems.

Going by the above arguments, we can see that the mixed use is the best option available. As part of the luxury development, the Ligget Hall can be used. This Hall was the central building of the army base and it is an enormous and very beautiful structure of 441,772 square feet  which can be renovated to become a world class convention hall for any seminars etc. Liggett hall was the largest structure ever made by US army and it was much later that it was replaced by the Pentagon. This island can be used as a resort also, as there are many individual residential houses and their historic structure gives them a very elegant look. A stadium of the highest standard can also be built but transportation has to be considered. For similar reasons, many hoteliers believe that Governor’s Island may not be such a major draw fro business or leisure travelers since the major attractions of New York are located in the centre. If all the proposals for the mixed usage of the land are checked, it will be seen that all of them are service oriented and there is logic behind this. Due to current financial crunch, the US is not profiting from its manufacturing business as demand is very low for any new products, so the main profit is coming from the service and maintenance industry.

The Business proposal:

To:

The Vice President for Planning

Governor’s Island Preservation and Education Corporation

Battery Maritime Building

10 South Street, Slip 7

New York, NY 10004.

Sub: The proposal for the mix use of the Governors Island.

Contents of this project:

Introduction:

About the proposal

Work schedule and time line

Scope of work

Financial term and conditions

Non discloser agreement

Conclusion.

Introduction: Governors Island has become a very prominent island on the heart of Hudson River. It is has a historical heritage of more than 400 years. This island is also very essential for the residents of Manhattan and Brooklyn. Our organization would like to utilize the island in a proper manner. We would like to propose a project where we can use the island for various activities without spoiling its beauty and importance. After a thorough study about the island we have come to a conclusion to present you our proposal. This proposal would be very much suitable to the GIPEC and also for the residents of the Manhattan and Brooklyn. In addition to that this project proposal won’t break any rules or restrictions of Federal Government as well as of the GIPEC. The main aim of this project is to justify the existence of the most beautiful island on heart of the Hudson River and also to bring back the charm of the island with proper revenue.

Brief about the project: As a multifunctional organization we would like to take possession of 120 acres of land for the further development of Governor’s Island. We do not want to demolish any of the heritage buildings in the island; instead we want to utilize that as iconic landmarks in the island. We do not want to abandon the railway track which was built in the island as it is has some significance of its own; it is the world’s shortest railway track. We would like to use this railway track as an internal mode of transportation.

Proper usage of the land: As per our proposal, the best possible usage of the land would be the main focus. We would like to use 30 acres of land for a new joggers park, 50 acres for a world class hotel, 10 acres adjacent to the hotel for a world class hotel and hospitality management school and another 30 acres of land would be dedicated to a event organizing company which would organize different exhibitions and events to attract more people to this island.

Modifying the ferry service: Proper means of transportation is important for the island as without the right connectivity the island would not attract visitors. So, we would like to propose to give this contract to a third party who would take care of the ferry service. A specific amount of the revenue will go to the GIPEC and the rest of the profit will go to them.

We would also like to have a private helicopter service for the hotel; this private service will be provided only to the hotel guests.

Restricting the private vehicles in Governors Island: There would be a kind request to the GIPEC, to not allow private vehicles in Governor’s Island; there are many third party organizations who are willing to take up the out sourced work of a local bicycle service or a bike service in the island and this would also help us to generate some small business in the island. Visitors would love to take a bike or cycle ride in the island for some nominal amount. So, this kind of business would be a win-win situation for the GIPEC, the third party contractor and for us. The contractor of the bicycle service would pay a certain amount of rent to the GIPEC, which would also give considerable financial help to the organization. As far as our organization is concerned, service is of prime importance to us as our business on the island is primarily going to be service-oriented and developing the local transportation with zero level pollution would be a beneficial for all.

Work Schedule and time line:

This project will take around 5 years to take shape. According to the work schedule, there will be many phases in this project. In the first phase, land inspection is required.

The second phase of the project will consist of the park reformation as the renovation of the park is very important for the normal visitors.

The third phase will consist of the planning of the hotel and building the hotel. This hotel will have more than 50 floors, two conference halls, two restaurants, 3000 rooms, one swimming pool and one helipad. One golf course is already there.

The fourth phase will consist of establishing the school for hotel management and hospitality management.

Scope of work:

The consultant team’s analytical services shall be utilized at multiple levels of redevelopment comprising of 1) development of special events 2) phases for planning and environmental review 3) construction phases, and 4) permanent substantial build-out and utilization.

The development approach: the development approach of the island should proceed with proper communication between the consultant team, GIPEC and us. The team will perform economic analyses of various public and private transportation schemes (on island and off-island) currently serving, and planned for, Governors Island.

Project Financing Strategies:

The Consultant Team will provide counseling to the GIPEC for the categorization and identification of public and private financing for the project. It shall also help GIPEC in determining and upgrading the most advantageous financing structure for the project, one that will reduce areas of uncertainty and risk encountered by developers, GIPEC, and their financial partners.

We will take the responsibility to arrange for private investors who will be ready to put money in this project. This project needs approximately $ 150 million. And the yearly revenue from this island would be around $35 million. We are expecting a breakeven in 3 years. Public investment is very much required to establish the connectivity to the island and this basically involves improving the ferry service to Governors Island.

All phases will also require close cooperation with potential developer(s) and with government agencies in addition to GIPEC, including but not limited to:

National Park Service

Empire State Development Corporation

New York State Dept. of State

New York State Dept. of Environmental Conservation

Office of the Deputy Mayor of Economic Development and Rebuilding

New York City Dept. of City Planning

New York City Economic Development Corporation

New York City Dept. of Transportation

The marketing and branding: The marketing and branding for any project is very important. For the marketing and branding our organization will need mutual help from GIPEC, New York City State and other related associations. This project requires 360 degree marketing and branding activities. We will use our own sources in the first place but would also request GIPEC and NPS to use their own well known portals such as websites and magazines to promote the island’s new services. We would request GIPEC and NPS to use their websites to send mails to their 12000 + subscribers. And we would request the State and City government to use the below written tools for the branding activities.

New York magazine (437,000 readers)

Time Out New York (137,000 readers)

Time Out New York Kids (40,000 monthly readers)

Local papers and blogs depending on programming (Post, Daily News, AM New

York, The New York Times, Metro, Gothamist, Streetsblog, Flavorpill)

We would also need to conduct some events which would help bring the island in the limelight. The island had been under US Army for more than 200 years and it was also used as an arsenal. Many types of ammunition were kept and stored on this island and it is an amazing historic place. Our suggestion would be to conduct a reality show on this island which would bring the island in the focus of every one.

Financial term and conditions:

Finance is the most important part in this project; we cannot go forward in this project without the finance. There are many banks that are ready to invest in this island. We, as a private organization would like to invest 50% of the whole investment and the other 50% would be arranged from the private real estate players.

The work needs to be started within mid 2009. We will have to hire four different contractors for the 4 phases of the project so all the four phases will run simultaneously.

This will help complete the project within the stipulated timeframe.

Non Disclosure Agreement: This project is the sole property of our organization. Under no circumstances should the details of this project be disclosed to any third party company who does the same category of work like our organization. If any of the party discloses any important point of this project to any third party, then it will be an offence under the law.

Conclusion:

This project is going to be one of the main projects in the United States. This will create the most anticipated new Governors Island which will give impart the right elegance and rich historic value.

This project would give the United States the first ever island with a luxurious hotel as well as a five- star hotel management school which will help the neighboring towns and cities and make them proud of Governors Island.

The Governors Island cannot change the financial condition of United States but it can definitely change the future of New York City.

We should not forget that there are very strong emotional feelings attached to the island.  Local residents are proud of this island and as it is their favorite recreational spot away from the pollution and grime of the main city, it would not be fair to stop them from using the island. We would love to make a world class park in this island which would be easily accessible to the local people of Manhattan and Brooklyn, but that requires massive funds which is hard to come by.  It is for this reason that we would like to propose a mixed project for the island so that it remains as a land mark for New York City, Manhattan and Brooklyn. We would do this it setting up a 50 storied five star hotel of ultra modern design which can be seen from all the neighboring cities and towns. So this building will work as a profit generating business for GIPEC and our organization as well as making the emotional connects between the island and the local residents much stronger as this building will act as a monument of this island. We would also be giving some area of the island as a park for the usage of the local people and this would not be accessible to the hotel guests. The hotel guests will have their own golf course and their own separate park within the hotel. The educational institution will be attached to the hotel so that it can become the best hotel management college possible. Some of the historic buildings can be rented out to some universities who are already interested in starting their classes over there. And in the southern part of the island, a certain area will be given to some event organizer to organize different events which would entertain the hotel guests as well as the local people. So, with the help of this plan we can strive to make Governors Island a born-again island with world class repute.
References

1.   “Battery Park City, Manhattan”, (n.d.) available at: http://www.absoluteastronomy.com/topics/Battery_Park_City,_Manhattan (accessed on March 2, 2009)

2.      Carey, H.L. (n.d.) Battery Park City Authority, Battery Park City, available at: http://www.batteryparkcity.org/page/page1.html (accessed on March 2, 2009)

3.      Elias,J.,  Barton-Sweeney, A.,  Oster, S. and J. Podolny, (2007) Governors Island,available at: http://pse.som.yale.edu/Business_Plans%20&%20Cases/Case_Governors%20Island%20Final%20and%20Complete.pdf (accessed on March 2, 2009)

4.      Ellis, E.R. (1997). The Epic of New York City. New York: Kondansha International

5.      Flahiff, D. (2009) Governor’s Island envisioned as Incredible eco-park, available at: http://www.inhabitat.com/2009/01/22/govenors-island-redevelopment-by-dillier-scofidio/ (accessed on March 2, 2009)
6.      Glen, S.L.  and M. Shaver, (2006) Governors Island, Arcadia Publishing

7.      “Governors Island: A Gift That Bears a Close Look”, (2009) New York and Religion, The New York Times, available at: http://query.nytimes.com/gst/fullpage.html?res=9503E2DF1F3AF932A35757C0A961958260 (accessed on March 2, 2009)

8. Will the political pirates, please, stop squabbling and give us our treasure island?, available at: http://www.thecityreview.com/governor.htm (accessed on March 2, 2009)

9.     Howe, A. (1982) “IN N.Y.C., A $1 BILLION DREAM RISES”, The Philadelphia Inquirer, June 6.

10.  “Is the Governors Island Redo in Jeopardy?” (2008), Curbed, available at: http://curbed.com/archives/2008/06/19/is_the_governors_island_redo_in_jeopardy.php (accessed on March 2, 2009)

11.  “Keep Governor’s Island Afloat”, (2009) Governors Island, available at: http://www.governorsislandalliance.org/newsite/ (accessed on March 2, 2009)

12.  Kolbert, E. (1997) Metro Matters; Island Needs A Dollar And a Dream, The New York Times, available at: http://query.nytimes.com/gst/fullpage.html?res=9D06E6DE1F3AF932A35751C1A961958260&n=Top/Reference/Times%20Topics/People/C/Clinton,%20Bill (accessed on March 2, 2009)

13.  Kugler, S. (2008) City razing 10 old buildings on Governors Island for new open space, NY Local, available at: http://www.nydailynews.com/ny_local/2008/10/12/2008-10-12_city_razing_10_old_buildings_on_governor.html (accessed on March 2, 2009)

14.  Mollenkopf, J.H. and  M. Castells (1991) Dual City, Russell Sage Foundation

15.  Robinson, G. (2005) Governors Island, available at: http://www.gothamgazette.com/article/fea/20050926/202/1599 (accessed on March 3, 2009)

16.  Shafritz, J.M. & Hyde, A.C. (Eds.). (1992). Classics of Public Administration. Belmont, CA: Wadsworth Publishing Company

THESIS: Grounding as a form of discipline can be a good strategy to gain back parental control as long as parents clearly communicate to their children the rationale for it.  The key is to let the child realize that there is a justified reason why he or she was grounded.  In effect, the act of grounding is a good strategy if it promotes instruction, not restriction.

There are various arguments why grounding is considered an ineffective strategy.

One view is that it is merely a reactionary, rather than a response to child’s an infraction;

Most of the time, parents do not explain the reasons why children are grounded, hence no learning is achieved, only resentment;

For those who advocate grounding as a form of discipline, the reasons cited are as follows:

Grounding is a reminder to the child that bad actions will have serious consequences;

The act of grounding, done positively, allows the parent and child to talk things over and regain rapport

Certain conditions should exist for grounding to be effective and appropriate.

The grounding session should be an occasion to instruct and explain the reasons for the punishment;

The enforcement of grounding should be consistent and not be abused;

Grounding as a Form of Discipline: Is it Effective or Not?

Introduction to Grounding

Grounding has long been a practice of many parents to instill discipline on their children and reestablish parental order.  Grounding is essentially taking away certain privileges that an adolescent child normally enjoys such as watching TV, hanging out with friends or playmates, playing video games, and the like.  According to Jim Wiltens in his parenting handout entitled Logical Grounding: Discipline that Works, there are basically six (6) categories of infractions that usually result in grounding namely: curfew violations; unaccomplished chores; poor grades or school work; inappropriate boy-girl relationships; use of banned substances; and disrespect of parents.  Although grounding or “time out” is just one of the methods of disciplining children, the others being spanking, lecturing, and punishment by doing chores, its use is becoming more common.  In particular, Phillips and Dickinson (1) indicated that based on a survey of U.S. parents done by Ontario Consultants, the use of spanking as the main disciplinary method has declined from 59 percent in 1962 to 19 percent in 1993. The survey also showed that 38 percent of parents prefer using time-outs and 24 percent prefer lecturing (1).

With the apparent widespread use of grounding as means to discipline children, a pertinent question needs to be answered – has it been an effective strategy for parents?  Evidently, data culled from secondary research indicate arguments for and against grounding, with some claiming the method is ineffective, while some believing otherwise.  The opinions were derived from secondary sources in the form of comments of parents, parenting researchers, and parenting community groups.  This paper tackles these arguments accordingly and will end with its own conclusion.

The Skeptics

There are several reasons why some parents and child experts are not inclined towards the use of grounding.  For one, some believe that the method is merely reactionary.  As indicated in familyeducation.com, a website dedicated to mothers and the use of proper parenting techniques, the use of grounding is often not directly related to the infraction or misbehavior of the child.  Furthermore, another negative aspect of grounding is the tendency of parents of not explaining to erring children the rationale or reason why they are being grounded.  This breeds resentment on the part of children, who conclude that they are simply being punished for no reason and oppressed.  The fact that grounding is rarely enforced was another negative aspect of grounding that weakens its effectiveness (Familyeducation.com).  Still, one parent believes that grounding is not a good strategy because “children do not have to suffer to learn (Phillips and Dickinson, 1).”

All the views offered by those opposed to grounding seem to emanate from one fundamental thesis – that grounding done improperly becomes an arbitrary course of action by the parent.  The child, who is the recipient of the punishment, basically has no say in the matter.  Since there is no collaboration and open dialogue between parent and child, this type of grounding restricts the child, rather than resolves the issue.

The Believers

The proponents of grounding as a form of discipline offer several reasons why this method is effective.  For one, grounding is a good reminder for children that their actions lead to consequences (familyeducation.com).  Meanwhile, Phillips and Dickenson indicated that grounding is a better option compared to spanking, which they claim can be harsh when excessive use of force is used and should only be undertaken as a last resort.  Wiltens offers a wider perspective of grounding, in that such action can be an effective form of discipline as long as parents involve children in the disciplining process.  One such manner is the setting-up of a behavior contract, which involves the parent and child sitting down and talking with one another to agree on an acceptable form of behavior.  This way, the child will understand the boundaries of his or her actions and therefore be informed of what is good and bad behavior.    The key implication of the contract of behavior is collaboration.  As the parent and child discuss issues constructively and agree on things, rapport is built and the child feels less isolated and restricted.

Wiltens also emphasized the need for parents to be consistent in enforcing grounding because its sends the message that they are vigilant in watching out for improper behavior.  “If the consequences are applied consistently as gravity, children associate inappropriate behavior with a penalty and are more likely to change their behavior (2).”

Research Conclusion

Given the various opinions and insights derived from the secondary research, this paper concludes that grounding is an effective approach to discipline a child as long as certain conditions are considered.  One is that grounding should be backed by a contract of behavior with the child.  It is only when a set policies and rules are clearly in place that the child will know the reasons for his or her punishment.   Hence, grounding should be enforced with the objective of achieving instruction, rather than on restriction.  Two, parents should be consistent in enforcing the punishment of grounding.  Parents should never waver when they feel that grounding is justified.  Three, grounding, like any other form of punishment, should only be applied when truly needed and should not abused.

Works Cited

Familyeducation.com.  “Six Dubious Discipline Techniques.”  22, February, 2009 <http:

http://life.familyeducation.com/parenting/punishment/45303.html?page=2

Phillips, Molly and Dickinson, Jay.  “Teens Report on Attitudes Towards Spanking.”  Connect

for Kinds 23, February, 2009<http://www.connectforkids.org/node/266

Wiltens, Jim.  “Logical Grounding: Discipline that Works.”  Parenting Handout 21, February,

2009 <http:// http://cityofdavis.org/cs/childcare/handout/parenting-teenpacket2.pdf

The very foundation of democracy is held by two pillars, the principles of majority rule and protection of the rights of individual and minority. Majority rule is applied in making decisions on public issues as well as for organizing the government (usinfo.org). It is not created to take the rights of others especially the minority. In spite of the majority rule, the rights and freedom of the minority is preserved. With this concept, policies and decisions rely on the majority even if the issues tackled cover the minorities. That is, whatever the majority decides, it wins. But the Constitution does not allow that rights of the minorities be taken over by the majority.  The Constitution protects the rights of the minorities as well. The Constitution allows the minorities to have the voice especially in political decisions. So that even if the majority wins over them, they had exercise their right and they were treated equally and not just mere subordinate. It is important to give consideration to the rights of the minorities so that the government will completely display the essence of democracy. The term minority may apply to anyone as a result of ethnicity, gender, religious affiliations or sexual preferences, geographical location or income level. Whatever basis for being a minority, they have the right for equality which is what the Constitution protects. The framers of the Constitution had recognized that there is a possibility that the rights of the minorities will be taken by the majority if they were not protected. Hence the government was so designed to protect their rights while at the same time using the majority rule effectively (McDuffie).

Majority rule with respect to majority rights is a concept which ensures the no political power will be more dominant. That is, both will be considered and heard in every aspect of the society.  Majority rule is observed in every election wherein the candidate who was voted in by the majority gets the chair. This does not mean however that the minority did not exercise their right. The rights of the minority are still respected. Similarly, the minorities are allowed to cast their votes to whoever they wanted to be in the position. Thus their vote for a certain candidate actually counts even if the candidate wins or loses.

The Amendments of the Constitution clearly exemplify the rights of the people including the minorities.  Amendment XIV, Section 1 states that, “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws” (Vile 181).  The Fourteenth Amendment assures three primary guarantees to the citizens. These are privileges and immunities, the due process and equal protection. This allows the recognition of the status of the minority and thus giving them a voice in our country.  Through the Fourteenth Amendment the various legal and civil rights were added to the rights of the former slaves.

Amendment XV also protects the rights of the minority. Amendment XV states that, “The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude” (Mount). The Fifteenth Amendment therefore prevents voting discrimination based on ones color or race (Vile 195). More than legal and civil rights, political power is also granted to the minorities through this Amendment and they will never again be denied of this right. Prior to the ratification of the Fifteenth Amendment, the Blacks population specifically the males were denied of their rights to suffrage. It entitled the Blacks the same constitutional right that only the Whites were granted. Thus the Fifteenth Amendment gives them the right to vote as the Constitution did not limit their rights due to color or race (McDuffie).

Amendment XIX of the Constitution projects the rights of the minority towards a majority rule. It proposed voting rights for women. Indeed women were considered a minority and were denied several rights including the rights to suffrage. They have been labeled just a domestic partner and not an individual hence their husbands were considered enough o represent them during elections. This led women to march in protest. Their efforts paid off as Amendment Nineteen was ratified and states that, “The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex” (Mount). By allowing women to vote, their right as minority was treated as part of the majority rule.

Majority rule with respect to majority rights is a concept which ensures the no political power will be more dominant. That is, both will be considered and heard in every aspect of the society.  Majority rule is observed in every election wherein the candidate who was voted in by the majority gets the chair. This does not mean however that the minority did not exercise their right. The rights of the minority are still respected. Similarly, the minorities are allowed to cast their votes to whoever they wanted to be in the position. Thus their vote for a certain candidate actually counts. It’s not really about pushing for the right person on the position. It’s rather about being given the privilege to give ones opinion that matters.  In such way, the rights of the minorities are given the same rights that the majority enjoys.

An example of an instance where majority rule with respect to minority rules apply, is the issue of same-sex marriage. Although the majority does not agree with same-sex marriage, there are still those who wanted it to be legal. In spite of the fact that those who favor same-sex marriage is comparably small than those who do not agree with it, their voice is heard; thus giving those who are in the majority a second thought. It also allows the government to weigh which side works better.  But the most important thing is that it allows room for compromise so that both sides reach an agreement which benefits the whole society. The principle majority rule with respect to minority rights reiterates the rights to equality. In a democratic society, it is important that everyone should be treated fair, ones opinions be voiced out and ones voice be heard. It does not really concern whether your ones opinion or ones voice prevail for as long as it was broadcasted.  The principle gives the minorities the same rights as the majority. This is how the Constitution protects the rights of the minorities.

Works Cited

McDuffie, Nicole. “Majority Rue with Respect to Minority Rights.” 2008. 16 February 2009 <http://www.associatedcontent.com/article/1016764/majority_rule_with_respect_to_minority_pg3.html?cat=47>.

Mount, Steve. “The United States Constitution. 2009. 16 February 2009 <http://www.usconstitution.net/const.html>.

Vile, John R. A Companion to the United States Constitution and Its Amendments.  Westport, CT: Praeger Publishers, 1997.

“Principles of Democracy: Majority Rule, Minority Rights.” 2005. 16 February 2009 <http://usinfo.org/zhtw/DOCS/prinDemocracy/majority.html>.

Executive Summary

Investors rely on financial ratios derived from financial statements to decide on what shares to buy, sell or hold, and when and how much. However, these ratios have limitations as a result of the way the financial statements are prepared. One limitation results from window dressing – when management reports financial transactions to enhance the attractiveness of the financial statements.

As regards the company in point, based on the financial ratios Babushkas’ Baubles plc performed relatively worse than Benny’s Blings plc although both of their performances declined from 2007 to 2008. Based on further analysis of Babushka’s financial performance, it is recommended that no investment be made for the company.

Lastly, this recommendation does have its own limitations. Given the fact that no additional information was provided, the conclusion and recommendation resulting from the ratio analysis didn’t take into account accounting practices adopted by Babushka and its future prospects in the industry.

Introduction

Financial statement[1] analysis had become standard for investors in determining whether to invest in a company or not. Point in case: this report recommending whether Babushka’s Baubles plc is a good investment or not. First is, however, who are the users of financial statement analysis?

There are two main user groups of financial statement and its analysis: the internal users and the external users. Examples of internal users are management and employees while external users are shareholders, creditors, government agencies, suppliers and customers among others. Generally, these groups use financial statements and their analyses to:

facilitate decision making. For example, a shareholder analyses the financial statements of a company to decide whether to buy, sell or hold the shares of the company.

monitor performance. Managers use financial statements of the different divisions of their company to review the performance of their employees, and this review could be one of the factors used to determine a employee’s performance bonus for a given period.

interpret contracts and agreements. Employees use financial statements to review their demands such as increase in salary.

However, the emphasis of this report is the specific uses of financial statements with respect to investors such as existing and prospective shareholders. Specifically, investors use financial statements and their analysis including ratio analysis to facilitate decision making on what, when and how much shares to buy, retain or sell. By using ratio analysis, investors can examine trends within the company and compare its financial performance with its peers.

Investors, in doing careful financial statement analysis, compute ratios from these statements. These ratios are generally grouped into:

Liquidity ratios which include current, quick and cash ratios. These ratios give an indication on the ability and capability of the company to meet short term obligations.

Activity ratios which include receivables turnover and days outstanding, inventory turnover and days outstanding, and payable turnover and days outstanding. These ratios indicate how efficient and effective the company is in using its resources to generate cash.

Profitability ratios which include profit and gross margin percentages, return on assets and equity and earnings per share. Profitability ratios help investors determine how effective and efficient a company is in generation additional shareholder wealth.

Leverage ratios which include the ratios of debt relative to total assets and equity, interest coverage ratio and times interest earned. These ratios show how the assets of the company are financed and whether the company is highly levered or not.

However, relying too much on financial ratio analysis in deciding what, when and how much to invest is not advisable. Financial ratios by themselves have limitations. A fundamental limitation is the way financial statements themselves are prepared. Generally accepted accounting principles allow companies to choose what accounting treatment to use in recording their transactions. For example inventory can be valued by using the first-in, first-out or FIFO, weighted average and specific identification methods. Hence, comparing the financial performance of two companies which use different inventory methods is like comparing an apple with an orange. Another example is companies can also use different depreciation method – straight line, sum-of-the-years’-digits, double declining, etc. – while still not violating generally accepted accounting principles.

Moreover, managements of companies also engage in what is commonly called as window dressing. Window dressing is when the management of companies prepare financial statements with the intention of presenting the financial operations and transactions of the companies in a more attractive tone rather than merely reporting what is. Window dressed financial statements can distort the conclusions and recommendations based on the ratios calculated from such statements.

Management, having control of the operations of a company, has the discretion on its financial transactions. Management, in order to present more attractive financial results, can postpone necessary expenditures. For example, to increase net income, managers might postpone advertising expenses which, in the long run, is detrimental to the company.

Another key limitation is the characteristic of financial statements themselves. Financial statements present the results of the past and current operations of a company. Hence, the ratios based from these statements would also be on past transactions. In investment decisions, the immediate and long term prospects of the company are as important as their historical performance, sometimes even more important.

An investor must take into account all the above limitations of financial statement analysis specifically financial ratios when deciding on what companies to buy, sell or hold, and on when and how much.

Analysis

As shown in Table 1, Babushka’s Baubles plc’s revenues decrease by $30,000,000 from 2007 to 2008. This shows a 6.67 per cent drop. A look at the company’s net income for the same period shows a drop of more than 38 per cent! This, given the other ratios for Babushka, shows a worsening management performance and control over the company’s resources.

Moreover, other financial ratios of the company such as its profitability, liquidity and activity ratios show a declining trend in the company’s overall performance. As shown in Table 2, in spite of a relatively low decrease in the company’s gross profit margin, the net profit margin percentage and rate of return on capital employed by the company decreased at a faster rate.

Furthermore, as displayed in Table 3, aside from the company’s declining profitability performance, it is also having difficulty in converting its assets, specifically inventories and receivables, into cash which it needs to pay its trade payables. As a result of its slower conversion of inventory to receivables to cash, its quick and current ratios declined during the year. Another thing is that the company pays its trade payables much earlier than it receives cash for its trade receivables. If this trend continues, the company would need additional funding to finance its working capital requirements.

Conclusion

From the above analysis, I conclude that Babushka is not a profitable investment if the intention of the investment is to generate growth in the short term. However, if the investor intends to take an active role in the management of the company and is willing to sacrifice short term gains for the possibility of long term gains, then an investment in the company can be profitable. For a long term investment, the investor, as the new management, needs to make immediate and drastic reorganization and restructuring of Babushka’s Baubles plc to ensure that assets are use efficiently and effectively.

Given the above conclusion, I recommend that no investment is made for Babushka Bauble’s plc. A long term investment, although can be profitable, is not viable because of the need to take an active role in the management of the company – a role which the investor can not assume.

Limitations of the above recommendation are:

No additional information is given with regard to Babushka’s Baubles plc and Benny’s Bling plc’s accounting methods for inventory and depreciation. Hence, no adjustments were made on the financial statements to come up with more accurate and reliable ratios.

No additional information is given on the immediate and long term prospects of Babushka. An investment recommendation based purely on the historical performance of Babuska’s Baubles plc is short sighted.

Appendix

Table 1Financial Ratio Comparison

Table 2 Babushka’s Baubles plc: Profitability Trend

Table 3 Babushka’s Baubles plc: Activity Trend

Table 4 Babushka’s Baubles plc: Liquidity Trend

Changes in the Material A due to the small amount can be reasonably explained by losses within the production system. The changes in the Material B that is at a considerable level can be attributed to theft or price reduction from the supplier. The amounts reflected are naturally assumed to have been computed using the absorption costing. The direct wages small changes can be attributed to the changes with the production staff for very minute amounts of time. It can be lateness or absenteeism of the employees concerned.

The resulting figures are the result of the company’s operation in actual situation for the month of August. The changes in the profit per unit are mainly due to the change in the number of inventories that were also produced. It can be that the inventories have increased or the overhead fixed costs have reduced or a combination of both. They are both capable of bringing down the costs associated with the production of each unit. As a final result the profit margin will naturally increase of course.

References:

Revsine et al, (2004), “Financial Reporting and Analysis”

Born on July 21, 1899 in Oak Park, Illinois, Ernest Miller Hemingway is an influential figure in American literature.  He was the second of six siblings.  His father, Clarence, was a country doctor while his mother, Grace Hall, was an aspiring opera singer (Ernest Hemingway )

Hemingway’s experiences

During his lifetime, Hemingway experienced a lot, both as an author and as a writer for the Kansas City Star. His first experience was shown when he was challenged about his age, being a writer for the Kansas City newspaper he was supposed to be over twenty years, he was forced to add an extra year on his age because the newspaper had an age restriction policy. This is the reason why his date of birth is often given as 1898 instead of 1899. It was during this period that the war between the Turks and the Greeks were at war. The Turkish revolutionaries were fighting the Greeks for their independence and the division of the Ottoman Empire after the First World War. During his tenure as a writer for the Kansas City star, Hemingway fell in love with his first wife named   Hadley Richardson. However their marriage only lasted for six years. This writer held war close to his heart because many of his writings were written during wars or after wars.

As a war writer, Hemingway had first hand experience in war because most of his writings make the reader feel like the writer was taking part in the action (Putnam 2006).

During the Turkey and Greece war, Hemingway witnessed the plight and suffering of many Greek refugees who were running away from the war. He brought out the real facet of war and its effect on women, men and the children. This enabled reader from North America to feel what war could do to mankind because he clearly brought out the world divergence to life. In most of his work, this writer based his facts on the truth because he was able to interact directly by those people who were affected by war.

The writer also experienced people being tortured and being killed because of their support for the Turkish revolutionaries. In 1920 Hemingway encountered fascism during an interview with Benito Mussolini; many people viewed this person as a liberator who brought order in Italy, however, Hemingway viewed him as a dictator who did not value human rights (Putnam 2006). Because of his crave for adventure and touring, Hemingway experienced a lot throughout his life because each war he wrote about had different approaches and experiences.

Biography

Hemingway went to Oak Park and River Forest High School.  He wrote for the school paper as well as their yearbook.  He was an excellent student.  He showed skill and talent in writing, particularly in his English classes. Despite his writing skills, Hemingway opted to skip college.  Instead, he worked as a reporter for six months in The Kansas City Star.  It was during his stint at the newspaper company that he developed his writing style (Ernest Hemingway).

The newspaper’s style guide served as his foundation for his writing style.  Known for his “short sentences, short paragraphs and vigorous English,” he has been regarded as a minimalist.

Motivation for writing

Hemingway left his job at The Kansas City Star and pursued his dream to join the military.  However, he failed to qualify because he has poor vision.  Not taken a back by this obstacle, he joined the Red Cross Ambulance Corps because he always wanted to see action in World War I.  His division was assigned on the Italian front.  Instead of staying with his regiment, he took a crack at getting close to the military action.

His first assignment was to pick up human remains and carry it to the morgue.  According to sources, an ammunition factory had just exploded.  This assignment left him traumatized.  From this distressed predicament, he was able to write about it.  The short story was entitled “A Natural History of the Dead.”

Hemingway’s duties also included delivering supplies.  While driving the ambulance, he was hit by an Austrian trench mortar shell.  Due to fragments left on his legs, he was no longer able to perform his military duties.  Accordingly, he was confined in the hospital where he met Agnes von Murkowski.

He fell in love with Agnes, but their relationship was a failure.  Agnes left him for an Italian officer.  From this heartbreak, Hemingway made another short story based on his failed relationship with Agnes.  The title was “A Very Short Story.”

Post-War Exploits

In 1919, Hemingway went back to Oak Park.  However, it seemed that he was bored with his life back in his hometown as compared to his experiences on the battlefield.  He missed his military exploits as well as his failed relationship with Agnes.

Back home, he is faced with a lot of strain from his parents.  They pressured him either to look for work or to continue his college education.  Notwithstanding these anxieties, Hemingway seemed to have been desensitized with his inaction and boredom.  So when an offer to write for another newspaper company came up, Hemingway accepted it.

In 1920, he moved out of his parents’ house and into an apartment in Bathurst Street in Toronto, Canada.  There, he worked as a freelance writer for the Toronto Star Weekly.  In the company, he met Morley Callaghan who had already begun writing short stories at that time.  They were sharing each other’s manuscripts and writings (Ernest Hemingway).

It was also during that time that he met his first wife, Hadley Richardson.  On the advice of Sherwood Anderson, Hemingway and his wife transferred to Paris, France, where Hemingway wrote about the Greco-Turkish War for the Toronto Star.  Through Sherwood’s intervention, Hemingway was introduced to one of his mentors, Gertrude Stein.  Hemingway also met other prominent Parisian writers and artists such as Ezra Pound, Sylvia Beach, as well as the painter Pablo Picasso.

Gertrude introduced Hemingway to the Parisian Modern Movement.  Supposedly, this was the beginning of the American expatriate circle known as the “Lost Generation.”

In 1923, Hemingway returned to Toronto.  During the same time, he and his editor were not in good terms.  Due to their conflicts, Hemingway resigned from his post.  However, his resignation was denied.  Thus, he continued to write for Toronto Star.  As the newspaper’s reporter, Hemingway would cover the Geneva Convention in 1922.  He also reported about the Greco-Turkish War as well as the Lausanne Convention.

Conclusion

It is also worth stating that Hemingway was not only an accomplished literary genius.  He was also awarded the Silver Medal of Military Valour as well as a Bronze Star for his military exploits.  A novelist, writer and journalist, Hemingway is one of the most influential figures in American literature.

References

Ernest Hemingway Biography, as retrieved from

http://www.lostgeneration.com/ww1.htm on 20th December 2008

Ernest Hemingway His Life and His Works, as retrieved from

http://www.ernest.hemingway.com/page9a.htm on 20th December 2008

Thomas Putnam (2006). Prologue: Hemingway on War and Its Aftermath .New York, springs publishers,

The American Revolutionary War took place from 1775-83 between the Great Britain and the thirteen British colonies of America followed by a war between Britain and other European powers. The war resulted ending British colonial rule over American, brought in independence for colonies and led to the formation of a republican form of government in newly emerged United States of America. More or less 30 main battles took place during the period of 8 years changing the geo-politics of the region altogether. This paper would cover few of the main battles that led to the victory of the colonist powers.

The Boston campaign was the major event leading to the outbreak of revolutionary war in which irregular militia units were formed later giving birth to Continental Army. The early involvement of colonial militia was seen in Battles of Concord and Lexington in April 1775 against the British Army causing them a good amount of casualties. At the commencement of war in 1775, Boston was under the strong hold of the British. In order to vacate Boston, American troops gathered at the Breed’s Hill under Colonel William Prescott. British troops under General William Howe initiated the battle. The main cause behind the battle was the decision of the Committee of Safety established by the second Provincial Congress of Massachusetts in February 1775, to occupy Charlestown and Dorchester Heights. The Boston siege caused the important battle of Bunker Hill in June 1775 (Swett 18). The battle of Bunker Hill played a decisive role in the Revolutionary War. The battle was fought by the American and the British forces on the possession of Bunker Hill and Breed’s Hill.

In the battle, British finished defeating the American forces and destroying Charlestown. About four hundred Americans died in the combat against one thousand British dead and wounded. Although, the British came out as victorious but the heavy losses made them admit the devastating effects of the war. The American side had “one hundred and fifteen killed and missing, three hundred and five wounded and thirty captured” whereas the British loses mounted to “1500, Gage acknowledges but 1054 including eighty-nine officers; two hundred and twenty six killed including nineteen officers, and eight hundred and twenty eight wounded seventy of them officers” (Swett 51).

For the British it was a victory that charged a very high price and for which they were never willing to go about. The American were the losers but had tested their abilities to confront the British in the future. They did not abandon their struggle for freedom against the British. The seed of freedom was thus sown in the American soils at Bunker Hill that were later on reaped in 1783 in shape of freedom from the British rule.

Boosted up with the initial success, the American troops marched forward to Fort Ticonderoga in 1775 (The Battle of Ticonderoga 1777). The fort served as a hub for the British forces with huge dump of weaponry and artillery supplies. The American forces led by Ethan Allen and Benedict Arnold captured the force. It became the major base for Americans to contain the British movement from north to south. During the next two years, the British made a few attempts to bring back the fort. In 1777 the British led by John Burgoyne ousted the American under Arthur St. Clair. “Ticonderoga fallen, the American army in retreat, and loyalists mobilizing to aid the British, Burgoyne appeared to recapture New England” (Resch 28).

The Americans planned a fight back at Saratoga the same year. Two separate battles taking place in Saratoga cultivated a hope of victory among the American forces against the world largest army and strongest navy and also included regiments from their colonies around the world. On contrary, the American troops were smaller in number, weak, untrained, ill-equipped, short of money and resources and without a naval force. The battles at Saratoga ended in a surprising victory for Americans with “Burgoyne’s surrender of his entire army of 5,700 men at Saratoga in mid-October was the pivotal moment of the war; a victory so large, so thrilling, and so decisive that it emboldened the wavering France to enter the conflict on the patriotic side” (Chernow 100).

The Battle of Monmouth in 1778 was most important of the series of revolutionary battles for being the toughest and longest engagement and the “last action in the North” (Morrissey 7). Now headed by General George Washington, the American troops were far better in training and techniques than ever before. Fought in New Jersey in June 1778, the British were attacked form the rear while evacuating Philadelphia on their way to New York City via New Jersey (Pitcher). The American army started harassing them by “burning bridges, muddying wells, cutting trees across roads, and snapping at their heels” halting their movement and making the solders collapse as the “British advance only 40 miles in a week. The weather is warm and wet, and traveling is hard muddy work. The Hessians suffer most as they carry heavy packs, and many fall from the heat, others desert (Pitcher).

On way to victories, the Americans faced a little setback when Washington’s most favored commander Benedict Arnold turned traitor. It is said that he played as double-agent and started selling important military information to the British. He underwent some very succulent and highly paid bargain during 1780 against a plan of handing over to the British the crucial post at West Point, New York; a deal concluded against a sum of ten thousand British pounds. Though the planned didn’t work in the long term, it did cause severe damages to the revolution.

The Battle of the Chesapeake or Virginia Capes was a naval combat between the British and the French held in September 1981 resulting in major setback for the former (Palmer 139). According to Weigley, “Battle of the Chesapeake was a tactical victory for the French by no clear-cut margin, but it was a strategic victory for the French and Americans that sealed the principal outcome of the war” (240).

In the Second Battle of the Chesapeake starting September 5, 1781, American Rear Admiral Comte de Grasse fought for five days against a British fleet led by Admirals Sir Thomas Graves and Sir Samuel Hood. Due to some misunderstanding between Graves and Hood, the later failed tallying with him losing a chance for success. In the meantime, Commodore Compte Barras de Saint Laurent, deputed at Newport, slipped into the Chesapeake area. De Grasse hurried to the Chesapeake joining Barras where Graves, with 19 ships, was helpless defeating 36 French ships. He fled away abandoning Cornwallis making him surrender at Yorktown on 19 October leaving one-third of the British army in North America with hopes for triumph.

In January 1781 British force under Lieutenant Colonel Tarleton faced a defeat against Patriot forces under Brigadier General Daniel Morgan. The combat was known as the Battle of Cowpens fought in the vicinity of King’s Mountain, South Carolina. After his retreat, Morgan joined Greene, while still followed by Cornwallis’s men through North Carolina through southern Virginia and again back into North Carolina. The two armed forces eventually united at Guilford Courthouse. Greene was finally crushed leaving the British with 25 percent casualties. Cornwallis redesigning his war strategy decided to leave the interior and move towards the Wilmington coast. From there, he moved further north joining some 2,500 men sent by Clinton to establish a base at Yorktown, Virginia.

On September 8, 1781 the unforgettable Battle of Eutaw Springs was fought among two thousand three hundred British and two thousand American soldiers (Simms 282). The excellent American cavalry under Gen. Nathanael Greene marched towards the battlefield surprisingly invading the British lines led by Lt. Col. Alexander Stewart. The ambush left Greene with 500 casualties; Stewart had suffered the highest losses so far with 693 dead, wounded, or missing. After crediting another victory to Americans the British moved back towards Charleston.

The final showdown occurred at Yorktown when armies led by Washington and Rochambeau joined by Lafayette’s small force, gathered at Williamsburg to organize the blockade of Yorktown in mid-September, 1781.  Both Washington and Rochambeau conferred with de Grasse on board the admiral’s flagship. They helped de Grasse manage the sea approach while their armies surrounded Yorktown, constructing trenches approaching Cornwallis’s defenses.  Guns snatched from the French ships were used to bombard the city. By September 28, the allied armies took position around the town strengthening the siege. Cornwallis called his men back from external fortifications so as to preserve his strength till getting some rescue from the sea. In the mean time, the allies move forward occupying the vacant defensive positions.

In the first week of October, more allied troops started total bombardments of the British lines. Casualties increased till the British artillery went defensive by mid-October as allies entered 300 yards inside of Cornwallis’s main defenses. Cornwallis tried a futile escape on October 16 via sea prevented by a storm. On October 17, Cornwallis agreed to surrender paving way to American victory. “The Battle of Yorktown was the climax of American Revolution and directly led to the independence of the United States of America” (Lanning 1).

Conclusion

The British had an edge having a great naval force through which it captured and occupied the costal cities but were unable to keep their control over the countryside due to shortage of personnel in land army. The French involvement and siding with the locals played a decisive role at Chesapeake after which the British army surrendered at Yorktown in 1781. Following France, Spain and Dutch Republic also joined hands in war against the Imperialist Britain. The Treaty of Paris, 1783 finally ended the war beside bring recognition to the United States as a sovereign entity.

The Revolutionary War was the finale of the American political struggle against the British overthrowing their rule for good. The revolutionaries got control of all the thirteen colonies forming the Continental Army and Second Continental Congress. The states announcing independence founded a new union, the United States of America.

Works Cited

Chernow, Ron. Alexander Hamilton. Penguin, 2004

Lanning, Michael, Bob Rosenburgh. The Battle 100: The Stories Behind History’s Most Influential Battles. Sourcebooks, Inc., 2005

Morrissey, Brenda, Adam Hook. Monmouth Courthouse 1778: The Last Great Battle in the North. Osprey Publishing, 2004

Palmer, Michael A. Command at Sea: Naval Command and Control Since the Sixteenth Century. Harvard University Press, 2005

Pitcher, Molly. Famous Personage from The battle of Monmouth. Accessed December 16, 2008 http://www.doublegv.com/ggv/battles/Monmouth.html

Resch, John Phillips. Suffering Soldiers: Revolutionary War Veterans, Moral Sentiment, and Political Culture in the Early Republic. University of Massachusetts Press, 1999

Simms, William Gilmore. The Life of Nathanael Greene, Major-general in the Army of the Revolution. University of Michigan, 2005

Swett, Samuel, Annin & Smith, Boston Annin & Smith. History of Bunker Hill Battle. With a Plan. Munroe and Francis, 1826

The Battle of Ticonderoga 1777. Accessed December 16, 2008 http://www.britishbattles.com/battle-ticonderoga-1777.htm

Weigley, Russell. The Age of Battles: The Quest For Decisive Warfare from Breitenfeld to Waterloo. Indiana University Press, 1991