Mabo Vs Queensland Essay Example | Topics and Well Written Essays - 1500 words

Mabo Vs Queensland - Essay Example As such, the successive governments had made no endeavour to establish a system of national land rights. This undesirable situation was rectified by the Australian High Court, which relied upon its constitutional authority to declare land rights (Keon-Cohen, 2000: 893). The decision in Mabo (No 1) in conjunction with international commitments to racial equality and the just terms protection under the Australian Constitution, and the national bill for compulsory acquisition of native title, engendered new property rights. The Mabo (No 2) decision provided various opportunities to the government to ensure land justice (Keon-Cohen, 2000: 893). However, these opportunities were squandered by the government. A political solution to this issue was made available in the federal, State, and Territory statutory schemes relating to land rights (Keon-Cohen, 2000: 893). However, these schemes have effectively distorted the judgement in Mabo (No 2); and served to distance it from the common law. The extant political solutions for this long standing national issue are irrational, and it is in this depressing environment that the High Court’s judgement proves to be welcome. Moreover, the legislative solutions, in respect of this predicament have proved to be defective; and there are serious administrative lapses in the implementation of the legislative solution (Keon-Cohen, 2000: 893). The scheme provides more opportunities to Crown grantees rather than the indigenous people; and makes no attempt to reconcile the differences between the affected parties. The Mabo decision served to rescind the principle of terra nullius. This doctrine enabled the Crown to appropriate property that was uninhabited. However, this principle was extended by the common law to apply to the lands of the indigenous peoples. This unjust act was sought to be justified by the falsely claiming that the Aboriginals were uncivilised barbarians, and that there was nothing amoral in

Designing a Leadership Development Plan Assignment

Designing a Leadership Development Plan - Assignment Example ice Waterhouse Coopers 2008/2009 report, 19% of the managers and 29% of company executives in various organizations are eligible for retirement in 2015. There is the need for adequate plans to replace these baby boomers without compromising organizational performance. The mobile phone and electronics industry is becoming more competitive with time. With the establishment of more telecommunication firms, there is growing competition that requires a leadership approach in securing Samsung’s market share. The leadership strategy aims at mitigating the effects of business rivalry on the company’s revenue, and developing plans to expand the market share. A labor-skills requirement manual helps in the assessment of leadership gaps in the organization. The human resource department prepares a skills inventory that takes consideration of the leadership capabilities of the workers. This achieves identification of leadership gaps in departments and workstations and helps in finding out the leadership skills or qualities that need improvement. The involvement of employees in leadership surveys will provide valuable information for assessment of leadership needs. A questionnaire on desirable leadership qualities, styles, and capacity can be of great importance in providing information on leadership requirements of the organization. This may also help in identification of potential leaders in the organization for nurturing. A review and analysis of Samsung’s revenue for the past three years will be helpful in understanding the influence of competition on the company. The trends in revenue in comparison with those of close competitors will provide insight on how Samsung is fairing on in the market. Customer satisfaction surveys will give a glimpse of the reality in how the market perceives Samsung’s products. The feedback from customers provides valuable information on the level of client satisfaction, loyalty, areas of dissatisfaction, and close substitutes they

Steve Jobs Leadership at Apple Essay Example for Free

Steve Jobs Leadership at Apple Essay The organization Apple Inc. has a flat hierarchy with six levels. This makes it possible for the CEO and the Board of Directors to have a larger overview of the company. The departments at Apple Inc. are functionally grouped. Some (e.g. Global Communication) are then grouped geographically. The organization is divided into specialized departments or teams, who all report to a team leader. All team leaders then meet with the CEO to discuss matters. Within theses teams are people who the CEO trusts to do their part. This means the CEO has a quite narrow span of control, as he does not have the responsibility for all departments, but he has selective influence on them. On a daily basis, Jobs had direct contact with about 50 people, out of the about 10.000 working at Apple Inc. For the organization to run as smoothly as possible, Jobs let those of a higher status (â€Å"A-players†) have a lower formalization, as he feared that if he did not let these very qualified people do their job, they would leave the company. Those of a lower status have higher formalization, as Steve has little trust in them. At the same time, it can be said that the organization has a centralized structure, as for instance, no product is ever released without it being approved by the CEO. In many situations though, decisions have to be made without his approval. A reason for this can be found in the wise words â€Å"No brain can effectively control more than 6-7 other brains† (General Sir Iain Hamilton) Who is Steve Jobs as a Leader? It is interesting to discuss whether Steve Jobs can be defined as a leader, or if he is in fact â€Å"just† a manager. Leaders can be said to be visionaries who drive new initiatives, which makes them likely to take risks. They seek to create positive or dramatic change. Managers on the other hand seek to achieve stability and predictability. It cannot be denied that Jobs has never hesitated to take a risk with his ideas and products, which would therefore make him a leader. â€Å"Managers do things right, leaders do the right thing† is another perception of the two terms. With undeniable success, Jobs has definitely done things right, which would make him a manager. Of course, there has been failure on his road to success, but if we take the firing from Apple (1998) as an example, his comeback only made him seem even more important in his role as CEO of the company. It is difficult to define him as one or the other. According to Mintzberg, management and leadership overlap. However, although most CEO’s must be a manager, not all posses the traits of a leader. The leadership ability to inspire is not easily acquired, and it was perhaps this trait, which made him not only a manager, but also an exceptional leader. Besides his inspirational qualities, there are other personality traits that define him as a leader. Through his commencement speech at the Stanford University graduation, he made use of his great rhetorical skills and charisma. According to Cannel (2008) typical traits of good leaders include ability to inspire and listening, sharing and delegating skills, and these boxes can therefore be checked off. In addition to this, an appealing trait is technical or professional knowledge and competence in a particular field. Jobs had an ability to connect art and technology, which led to e.g. the iPod. Taking the traits above into consideration, Jobs can be defined as what we call a Transformational leader, which is a term in new leadership. A such leader is typically charismatic, inspiring and motivates others to perform â€Å"beyond their contract†. According to Tichy and Devanna (1986) Transformational leaders have three main roles: Recognizing the need for revitalization Creating a new vision Institutionalizing change Jobs fulfils all three roles, as he had the ability to figure out what customers wanted, before they knew they wanted it. The creation of the iPod was on of the first examples of this. The iPhone and iPad kept Apple competitive on the market. Jobs has always been very involved in these inventions and has always aimed for the highest possible standards in his products. His way of incorporating art into technology, is what made the products of Apple unique and competitive. Examples of new ideas are the white iPods, Macs etc. and touch-screens. Even though other brands have attempted to use the same, it has now become a part of the Apple brand. The concept of New Transformational Superleader combines the ultimate traits of a leader in the 20th century. Such leaders must be in possession of specific traits, style-counselling and a context-fitting leadership. In the first category is appearance. In relation to this, it is interesting to notice that Steve Jobs always dresses in a black turtleneck, round glasses, jeans and sneakers. This characteristic outfit has become a symbol of his personality as it reflects his characteristic style. (Steve Jobs, p. 411 Walter Isaacson 2011) In the style-counselling category we again find that inspirational and visionary qualities together with risk-taking is valued. In an interview with ABC news, his former partner Steve Wozniak explained how Jobs was never afraid to take a chance on what he believed in, and he deliberates on the meaning of Jobs’ quote in the Stanford university commencement speech â€Å"Stay hungry, stay foolish†: â€Å"Like his other words (†¦) â€Å"follow your dreams, follow your internal passion, what’s in your heart, believe in yourself even when a lot of people are saying â€Å"No, this is not right, it’s not going to be worth anything, it’s not going to go anywhere, you’re off the right track,† and that’s very important.† Last we find the context-fitting category. Jobs is a very situational leader. As the world changes the products need to change too. An example of his context-fitting style was the personalization of the computer or the invention of the iPod. He did not invent these, but his creations so fundamentally changed the market, he might as well have. Today, many people do not have mp3 players, they have iPods, and so he created a whole new concept for a whole new time. Again, Jobs’ way of seeing what people wanted before they knew they wanted it, paved the way for great success on a new market. Later on, as the iPod almost became a necessity, and smartphones became popular, Jobs again fitted his products with the situation and found a way to combine the iPod, the computer (Mac/iOS) and the smartphone into one – the iPhone. The future of Apple Inc. The death of Steve Jobs had great impact on the organization of Apple. Having identified what made him so successful as a leader, it has become obvious that the new CEO has much to live up to. The stocks of Apple fell the day Jobs died, which provokes the idea that people connect Jobs’ death with Apple Inc.’s failure. (See attachment 1) It has come to show that people have dreaded what will now happen to Apple. There is a fear that Cook lacks the creativity and innovativeness that Jobs possessed. When the iPhone 4s came out instead of an iPhone 5, it cannot be denied that many were disappointed. Even though Jobs was in on the development of the 4s, it was Cook who presented it to the world, and so many have linked this ‘lack of renewal’ with Cook. Cook has yet to prove to Apple customers that he too has the required skills to be as successful as Jobs. Even though people may have doubts about Jobs’ successor, he has in fact done a lot to make Cook as capable as himself: Weve got really capable people at Apple. I made Tim [Cook] COO and gave him the Mac division and hes done brilliantly. I mean, some people say, Oh, God, if [Jobs] got run over by a bus, Apple would be in trouble. And, you know, I think it wouldnt be a party, but there are really capable people at Apple. And the board would have some good choices about who to pick as CEO. My job is to make the whole executive team good enough to be successors, so thats what I try to do. Tim Cook may be a capable CEO, but he has yet to prove his creative skills. He was a perfectionist and may have had more passion for his products than Cook has. A great leader should always leave behind a company, which is independent of them, and will flourish without them. When Jobs was fired in 1985 the company proved to be dependent on him, and it most likely would have gone bankrupt, had he not been rehired. The last time Jobs ‘left Apple’ it all went downhill†¦ will it happen again? Conclusion In conclusion, the organization of Apple has a flat structure, which gives the CEO a possibility for a high level of involvement, while delegating responsibilities to teams he trusts to do their part. Steve Jobs has personally contributed a great deal to the success of Apple with his creativity and innovative mind. As a leader he has made the organisation very functional by attempting to create an independent company, but still staying as involved as possible. He can be defined as a New Transformational Superleader, who is an inspirational person with the anility to motivate followers to higher levels of achievement and at the same time lead others to lead themselves. His ability to know what customers want before they know it themselves has transformed Apple from a minor computer company to a worldwide brand. His role in the creation of unique products was big, and as a front figure of the company the success of Apple has been linked to him, and made him a memorable leader, who will very likely go down in history. The future of Apple is yet to be defined, but if his successor possesses some of the same qualities as himself, it is likely that the success of Apple will continue for many years to come. Stay hungry, stay foolish – Steve Jobs References Litterature: Andrzej A. Huczynski and David A. Buchanan, Organizational Behaviour (7th Ed.) Walter Isaacson, Steve Jobs – En biografi om manden bag Apple, Gyldendal 2011 Webpages: Steve Wozniak on Steve Jobs’ risk taking: http://abcnews.go.com/GMA/video/steve-wozniak-death-steve-jobs-146801955 Independent leadership: http://www.gordontraining.com/leadership-training/no-steve-jobs-at-apple-how-dependent-should-an-organization-be-on-a- single-charismatic-leader/ Steve Jobs at the D8 Conference 2010: http://www.youtube.com/watch?v=LrS7JQv-zgY Jobs on whether Apple could live without him: http://money.cnn.com/galleries/2008/fortune/0803/gallery.jobsqna.fortune/5.html The biography of Steve Jobs: http://allaboutstevejobs.com/bio/short/short.html : Steve Jobs as a leader: http://abcnews.go.com/GMA/video/steve-jobs-proudest-achievement-14801246 Attachment 1: Organizational Chart: http://www.theofficialboard.com/org-chart/apple Attachment 2: Apple Stocks http://finance.yahoo.com/echarts?s=AAPL+Interactive#chart6:symbol=aapl;range=20110701,20111209;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on Attachment 1 Attachment 2

Rapid development and popularization of the Internet

Rapid development and popularization of the Internet In recent two decades, with the rapid development and popularization of world internet and computer technology, internet has been an integral part of both human daily life and financial market. Based on the World Internet Stats (2010), the number of internet users around the world totaled 1.97 billion by June 2010, increased 444.8 percent over the last decade (Figure 1). Gilmore et al (2007) stated that adopting internet and e-marketing strategy within business provide small and medium sized enterprises (SMEs) an opportunity to reduce cost, improve competiveness and expand businesses. With a growing number of SMEs are combining internet and web site with business, it has become the mainstream for SMEs in the world to adapt internet technologies to expand business and grow themselves. In simple terms, e-marketing refers to achieving business goals by using world wide web (WWW), instant messaging, emails, online payment and other forms of internet related technologies (Gilmore et al., 2007). An e-marketing strategy includes the actions taken in order to promote a brand via the internet and a good e-marketing strategy plays a most significant role in the success of a business (Rampur, 2010). Figure1 Internet Users in the World by Geographic Region Source: World Internet Stats (2010) It is widely believed that large enterprises contribute a lot to the economy. However, SMEs also play an important role in both world and local economy. SMEs are not only an important revenue contributor, but also a great job opportunities provider. To be precise, SMEs account for 98.9 percent of total number of businesses, 77.3 percent of employed people, 65.6 percent of gross industrial output value, 63.3 percent of sales revenues and 54 percent of total profits in China (Singh and Garg, 2010).   With Chinas entry into World Trade Organization (WTO), China government has shown the ambitious to encourage both state-owned enterprises and SMEs to walk with worlds pace. In 2002, SME Promotion Law of the Peoples Republic of China was carried out to support and encourage the development of SMEs in China. According to Hong (2010), Jiangsu province has strong competitiveness not only in per-capital GDP, but also in internet penetration. As a representative of Chinas SMEs, Jiangsu province also carried out policies to promote the development of SMEs and improve international competitiveness such as Promotion Rules of SMES in Jiangsu Province. Though the development of SMEs is booming and some of the SMEs in Jiangsu are considering marketing strategies via Internet, a number of SMEs are still implementing marketing strategies in traditional ways. They prefer to focus on the products and services from the supplier perspective instead of customer perspective (Sheth and Sharma, 2005). The fact is that SMEs who are adopting new advanced technologies have enjoyed benefits of e-marketing and achieved advantageous position (Chong et al., 2009). For example, some SMEs are using email as an important medium to communicate with customers, to share products and services information with customers and enhance customer loyalty (Merisavo and Raulas, 2004). In the meanwhile, some SMEs are thinking highly of online platform such as the third-party website Alibaba.com. Suppliers and buyers prefer to transact through Alibaba.com for low requirement, reliable online payment and large market share (Zhao et al., 2008).It is the time for all SM Es to reconsider the traditional way of doing business and think more of e-related marketing strategies. Under this situation, it is a great opportunity for SMEs in Jiangsu to follow the world trend and do business with new e-marketing strategies. Literature Review With the popularization of the Internet and website, there appear a trend that more SMEs prefer to marketing their brands via Internet. A large quantity of researchers and authors has done researches on e-marketing strategy. Drivers and barriers to e-marketing adoption amongst SMEs were stated by Gilmore et al. in 2007. Chong et al. in 2009 carried out a questionnaire about the seasons, problems and benefits of e-marketing. The most frequency answer tends to be competition in the marketplace, security and better relationship with customers, respectively. Singh et al. in 2010 concluded promotional policies for SMEs by the Chinese Government, which gave us a comprehensive understanding of the contribution that the government made for the sustained, steady and fast development of SMEs in China. Stephen Rampur in 2010 pointed out several components of e-marketing strategy, which are search engine optimization (SEO), email marketing strategy, online advertising, online newsletters and media news rooms. To conclude, a large quantity of previous researches and studies have been made to explore e-marketing and SMEs and e-marketplace, of which some studies may based on the Chinese economy. Nevertheless, merely a few studies focused on B2B e-marketing strategy for SMEs. As a consequence, this paper will provide a deeper study on the topic relating to B2B e-marketing strategy for SMEs especially in Jiangsu province. Research questions What is the current situation of the development of the e-marketing technology in Jiangsu province? What is the B2B e-marketing adoption amongst SMEs in Jiangsu province? What are the components of B2B e-marketing strategy for SMEs in Jiangsu? Research Objectives This paper has following objectives: Provide an overall understanding of the development of e-marketing technology in China and Jiangsu province. Understand the current situation of the B2B e-marketing adoption amongst SMEs in Jiangsu province. Highlight the role that internet plays in B2B e-marketing strategy. Find out the components of B2B e-marketing strategy for SMEs in Jiangsu province. Research Methodology Both quantitative analysis techniques and qualitative analysis techniques will be applied in this research, which consist of several steps: questionnaire design, data collection and data analysis. Online questionnaire will be carried out to collect original data from 200 managers of SMEs in Jiangsu province. The current situation of e-marketing adoption amongst SMEs will be analyzed through these data. For example, for a question Have you ever used Internet technology to develop your business?, if 60 managers answered yes, one basic conclusion can be made that three tenth of the SMEs in Jiangsu have adopt e-marketing strategy. The reasons why online questionnaire method was used are that the cost is low, the result is more precise and the respondents have little hesitation (Saunders, et al., 2009). Moreover, interview with 20 information management and information system (IMS) students will collect data for open-ended questions. Research Plan Research Resources Resources needed for this research include a book called > and other book resources borrowed from the Library of Xian Jiaotong-Liverpool University (XJTLU). Eight months will be taken in the research from September 2010 to May 2011. Furthermore, a computer linked to the internet with Microsoft Project installed will be used. It should be emphasized that in order to obtain academic research papers and articles online, the computer should be used within the boundaries of the XJTLU campus.

New Life :: essays research papers

It’s another crisp blue morning in the town of Flagstaff. Two Dogs bark protectively from across the street warning a passer by not to shit in our neighborhood. In my mind Flagstaff is not a solid place, it is continually changing. As I’ve been getting older, my perception of Flagstaff has been growing too. I’ve been coming up to Flag since I was ten years old. At that time, the town felt so old and rustic. It was a place where one could escape from the desert heat, from sitting through boring Sunday sermons, and from the monotony of everyday life. I would come up every weekend with friends to climb in the surrounding canyons. This was our training ground for many years. Bouldering in the forest with beers and buds proved to be an excellent way of getting stronger. Flagstaff was a place where we could push our limits, work on projects and achieve incredibly rewarding goals. Although climbing was always our main priority, we felt that it was important to balance the anguish of rock climbing with the relief of Advil and cold beer. This is where the construction and corruption of my character began. As my friends got older, they began migrating north for college and a new era of Flagstaff emerged. I still came up on weekends to go climbing, but people were becoming harder to motivate. I guess it was half to do with the fact that the climbing was so accessible that you could just go climb any time you wanted, but a new force was also emerging. It came to be known as the â€Å"Evil Party Vortex†. It was a strong gravitational pull which had shifted our focus from climbing to boozing. Late nights lead to shorter days. We seldom got out of the house before 1:00. Coffee intake was so extreme that when you finally got out to the rocks, nervous tremors would shake you off the wall. My climbing was going down hill. I really wanted to move up to join my friends in pursuits of drunken belligerence, yet at the same time I really wanted to travel and rock climb. After I graduated from high school I knew I would be going to NAU, but not right away. I was originally just going to take one year off, but I ended up taking two. I was always searching for the next challenging adventure.

Teen Pregnancy :: Teenage Pregnancy

  Ã‚  Ã‚  Ã‚  Ã‚  While many teens that engage in pre-marital sex never become pregnant, some are not as fortunate. Teen pregnancy has become all too common in this day and age. Some teens think it will not happen to them and do not use necessary precautions to protect against it. There are several causes for teen pregnancy and the effects can be life changing.   Ã‚  Ã‚  Ã‚  Ã‚  Several causes for teen pregnancy are: the need for affection, acceptance, and unprotected sex. One may have a poor home life and look for affection from a peer. The simple desire to feel loved by another person may be a cause for an unexpected pregnancy. A teen may have a low self-esteem and simply be looking for acceptance in the bedroom. However, many teens that have a wonderful, affectionate family and are very confidante are merely looking for the few minutes of pleasure and avoid using protection. As several teens use the excuse that sex feels better with out a condom, an unwanted pregnancy is likely to occur.   Ã‚  Ã‚  Ã‚  Ã‚  One major effect of teen pregnancy is that the child may be raised by a single parent. While most girls are looking for love and acceptance in sex, many guys are looking for the mere pleasure and are not planning on becoming a teen father. The pressures of high school and hanging out with friends may be overwhelming for some teens, so they just leave. Raising a child as teen is difficult, but raising a child alone would be almost impossible.   Ã‚  Ã‚  Ã‚  Ã‚  Many teens become overwhelmed with the stresses of high school and raising a baby; therefore, dropping out of school may seem like the best option. Attending school five days a week, studying for classes, and raising a baby would be overwhelming for most teens. One would have to pay for babysitting and many other expenses for the child that a part time job income could not cover. Dropping out of high school to work full time may seem like a great idea at the moment, but the jobs one applies for may be limited because the lack of a high school diploma.

Marxian Economics

Our work aims to research a modern development of Marxian economics, primarily at the theoretical level and make clear how do Marxs’ â€Å"laws of motion† of capitalism relate to Schumpeter’s views of imperialism. † Marx was a German journalist, exiled in London, who combined significantly different intellectual traditions in order to explain economic systems, including German philosophy, French political theory, and English political economy. Joseph Schumpeter was an Austrian scholar who was very critical of, yet much taken with, his predecessor, com/compare-and-contrast-karl-marxs-and-walt-rostows-theories/">Karl Marx, whose focus on historical analysis he admired and emulated.They both believed that capitalism is a stage of economic development in which the potential of humankind cannot fully develop. Both came to the study of economics questioning the fundamental assumptions of existing economic theory, and thus each took more of economic theory to be p roblematic than did most economic theorists. Both conceptualized the capitalist system as a whole, yet with the realization that the economic realm hardly constitutes the totality of human experience and thought.The real issue, which may indeed appear to have its scandalous aspect, arises when great economists direct their attention to what I shall call the cosmological problem of economics—namely, the social configurations of production and distribution (if you will, the macro and micro patterns) that ultimately emerge from the self-directed activities of individuals. What is remarkable about Marx and Schumpeter is that they are among the very few who have proposed solutions to this problem of an imagination and scope comparable to that of Smith, but that their resolutions differ from one another almost totally.In Marx's schema the system is destined to pass through successive crises that both alter its socioeconomic texture and gradually set the stage for a final collapse. Marx described his view of capitalism in â€Å"The Communist Manifesto† (1848), a social vision that, as Schumpeter points out, underlies Marx's life-long research program. In the introduction to his â€Å"Contribution to the Critique of Political Economy† (1850), Marx gave the clearest and most succinct description of his method of historical analysis, referred to by others as historical materialism.According to Marx, historical development is a progression of epochs, each distinguished by a particular mode of production, a â€Å"way of life,† based on the level of technology and division of labor (the forces of production) and a corresponding set of class (social) relations of production. For any epoch, any mode of production, according to Marx, the development of the forces and relations of production forms the foundation of social life. With the production of surplus over subsistence, classes emerge and develop, divided conceptually by Marx into producing an d non-producing (exploiting) classes.Social change is propelled by class conflict, that is, the struggle related to the contradictions between the developing technical forces of production and the existing class relations which act to impede this development. Socioeconomic development involves the transformation of class relations, which in turn enables the new dominant ruling class to exert control over resources and productive labor. Marx claims that the transition from one mode of production to the next is fundamentally revolutionary because the new mode of production is a qualitatively different social formation organized around new laws of development.Furthermore, the transition is one of violent, wrenching changes in social status, power, and legal rights. â€Å"The history of all society that has existed hitherto,† Marx firmly asserted, â€Å"is the history of class struggles† (1904 : 45). For instance, Marx describes the transition from the feudal to the capita list mode of production as a long period of conflict and bloodshed in which old class relations give way to new ones, a period in which primitive accumulation creates capitalists and expropriation creates a mass of wage-workers.Class-divided society proscribes the satisfaction of â€Å"truly human† needs because production is based on exploitation of the producing classes by the non-producing classes. Emancipation of humankind requires an end to this exploitation which, according to Marx, becomes possible with the development of the capitalist mode of production, which polarizes society into a small capitalist ruling class and a working class of exploited wage-workers who make up the vast majority of the population.Marx defines capitalism as a system of commodity production—production for exchange and profit—based on a system of wage-labor. Capitalists own the means of production and hire workers who must sell their labor power because they have no control over the means of subsistence or means of production. Capitalist development is dominated by capitalist control over production to accumulate capital. Capitalists are interested in production for profit rather than for use.This motivation means that the system as a whole operates to expand exchange value, market value, the money capitalists receive for the commodity production they control. According to Marx, this motivation to accumulate capital, that is, exchange value, creates contradictions in a system of unregulated market exchange because commodities are a unity of opposites. They are both useful objects to be consumed in the process of reproducing the material needs of the society and exchange values representing part of the socially produced value created through the social division of labor.This â€Å"value,† that is, embodied labor, â€Å"objectified abstract homogenous labor,† regulates the exchange value or price of each commodity. Commodity prices reflect the m agnitude of value, of â€Å"socially necessary† labor used to produce the commodity. Each commodity is a â€Å"social product† in that its production is dependent on a complex social division of labor that determines its labor cost, the amount of socially necessary labor time that goes into producing it.Marx sees contradictions in capitalism because, for the system as a whole to create a steady accumulation of capital over time, it must also create just the right combinations of different use values, specific useful products, to generate the growth in capital year to year. Marx recognizes capitalism as the most productive mode of production in history, because capitalists control the surplus product over and above the needs of simple reproduction of the existing level of output, and they use the surplus mainly to expand production and to increase productivity.Marx characterizes capitalism thus: the ascendance of industrial capitalists whose profits are based on exploit ation of wage workers through the extraction of surplus labor; revolutionary changes in the forces of production (technology and the division of labor) and therefore dramatic, continuing increases in productivity; capital accumulation fed by a growing mass of surplus value controlled by capitalists; increasing subordination and dependence of workers on capital; continual deterioration of workers' working and living conditions; and increasing competition for available jobs from a growing reserve army of unemployed workers.Other characteristics of a capitalist system for Marx include a tendency toward a declining average rate of profit; expansion of nonproductive but necessary commercial and financial capital; new forms of monopoly; extension of the capitalist mode of production to create a world market and worldwide capitalist system; uneven development of capitalism geographically so that at any time the existence of newly developing capitalist sectors provide fresh opportunities fo r capitalist exploitation; periodic trade cycles; and less frequent convulsive general crises of the system.In selling their labor power, wage-workers give up any right to the output they produce so that in capitalist production, objectification, the production of material objects, becomes alienation. Furthermore, in alienating their labor, the workers produce commodities that become capital, that is, the capitalists' source of power over the workers. Thus in capitalism, alienation brings about reification. Also, workers give up control over the labor process and therefore over their own productive activity, so much so that labor becomes a burden, and workers work to live instead of live to work.The accumulation of capital, representing the realization of man's essential powers, becomes for the wage-workers a loss of their reality, which for Marx connotates sociality. Marx shows that alienated labor means alienated man, devaluation of life, loss of human reality. Only the working cl ass can bring about this fundamental change because only workers gain this insight through their historical-social situation. According to Peter Drucker (1983: 125), Schumpeter considered himself the â€Å"son† of Marx.Schumpeter devoted himself to promoting scientific progress in economics, through theoretical, historical, and statistical contributions, on the one hand, and teaching and critical analysis of economic doctrine on the other. In his History of Economic Analysis (1954) Schumpeter‘s epistemology may be summarized as follows: 1. He had great faith in science, which he defined as â€Å"technique† and â€Å"tooled knowledge. † 2. Schumpeter was a great advocate of mathematical and econometric methods in economics. 3.In his History of Economic Analysis, Schumpeter had already outlined the major points of the Popper/Kuhn/Lakatos debate: the tension between conservatism and change that is inherent in scientific revolutions; the usefulness of both ten dencies. 4. Schumpeter was a positivist, but he accepted both verification and falsification as tests of a theory. 5. Schumpeter was anti-instrumentalist. He did not see the purpose of science as simple prediction but believed that the truth of assumptions does matter. 6.Schumpeter appears to have held contradictory views of the impact of ideology on economic analysis. He considered the intrusion of politics and ideology in economics as the major cause of â€Å"misconduct† in science. These apparently contradictory views represent, in my opinion, a defense of economics against Marx's evaluation of it as â€Å"bourgeois ideology. † Schumpeter agrees with Marx and credits him with the discovery that ideas tend to be historically conditioned, reflecting the class interest of the writer.Schumpeter claims, however, that ideological bias is not solely caused by the economic element in class position, and that social position is not shaped entirely by class interest (1954:10) . Thus, despite the fact that ideology affects the focus and the content of economic writings, analysis is not bourgeois ideology. Thus, Schumpeter believed that even Marx and Marxists contribute to progress in economic analysis. It was important to Schumpeter to acknowledge his debt to Marx, and apparently crucial to him that he refute the revolutionary basis and purpose of Marx's work.Schumpeter adopts what he takes to be Marx's research program and, like him, attempts to uncover the laws of motion of capitalist development. His purpose is clearly to defuse Marx's theory of revolution by converting it to a theory of evolution. Schumpeter accepts the structure and some of the content of Marx's economic sociology (the theory of origins and transitions) and economics (the theory of markets and mechanisms). Schumpeter's social vision as depicted in the Theory of Economic Development rejects—in fact inverts—important relationships of Marx's social and economic vision.In à ¢â‚¬Å"The Communist Manifesto in Sociology and Economics† (1949b), Schumpeter paid homage to Marx's contribution to economic sociology, which he considered to be the prescientific theorizing necessary to the research program they both pursued. In this article, he also suggests the theoretical basis for his revision of Marx. Schumpeter analyzes the scientific content of the Manifesto, which contains Marx's social vision, and he then identifies three of Marx's important contributions (however â€Å"warped by ideological bias†) to economic sociology.Schumpeter points out that Marx identified the necessary theoretical ingredients of the economic sociology in which to embed an economic theory of capitalist development: (1) a theory of history (which for Marx, according to Schumpeter, was an economic interpretation of history); (2) a theory of class (in which, for Marx, social classes and class relations become the pivot of the historical process); and (3) a theory of the sta te (which Schumpeter says shows Marx's understanding of the state even though Schumpeter believes that Marx recognized these tendencies only in the bourgeois state) (p. 09).Schumpeter criticizes Marx for his attachment to his social vision, his inability to revise his social vision in the light of contradictory scientific evidence. Clearly, it was Schumpeter's intent to counteract Marx and serve science by converting Marx's program into positivist science. This required building economic analysis on a social vision that is scientifically acceptable. In accepting a Marxian research program (analysis of the historical development, the internal dynamics, of capitalism), Schumpeter also had to use the structure of Marx's economic sociology.He needed a theory of history, of social class, and of the state to describe the development of the economically relevant institutions. But Schumpeter rejected much of the content of Marx's theory, including what he considered to be Marx's economic de termininism, that is, the analysis of change in social structures in terms of economic change alone; Marx's theory of class relations, that class conflict is the motive force behind economic and social change; and Marx's critique of the state, which was directed only at the bourgeois state.Also Schumpeter rejected Marx's class conflict and revolutionary theory. He could hardly envision the working class becoming a revolutionary class, that is, becoming the subjects of history, the major actors and motive force for change. Instead, he substituted his own theory of class and class relations based on his ideas about leadership and followership in which entrepreneurs carry out the â€Å"new combinations† that promote capitalist development. Schumpeter accepted Marx's materialist, dialectical view of history, the view that people create their own history through choice, concerted action, and struggle.He also recognized that history must be dialectical if it is evolutionary. Human subjects react to and change history. Change occurs through opposition and adaptation and learning. He objected to Marx's purely economic definition of class based on individuals' relations to the means of production, a definition he believed to be at the basis of Marx's economic determinism. Schumpeter paraphrased Marx's theory thus: â€Å"the social process of production determines the class relations of the participants and is the ‘real foundation' of the legal, political, or simply factual class positions attached to each.Thus the logic of any given structure of production is ipso facto the logic of the social superstructure† (1949b: 206). Schumpeter also rejects Marx's view that class relations are exclusively antagonistic, and that antagonisms among groups are exclusively based on distinctions of economic classes. He believes that there are multiple classes in capitalist society, just as there were in earlier epochs. There is a strong family resemblance here to Sc humpeter's vision of capitalism as an evolutionary process of creative destruction. The innovative function certainly plays a vital role in Marx's laws of motion.This bring Marx into the picture in a way that attempts to minimize the distance between him and Schumpeter and which is consistent with Schumpeter's well-known admiration for Marx. They are both concerned with the dynamics of development, and although they come from the opposite ends of the political spectrum, their similarities are profound and stand as an affront to the modern theory of static equilibrium in the Walrasian tradition. In the vision of capitalism as a dynamic process, Marx and Schumpeter share common ground, not just in their appreciation of capitalism, but also in their attempt to construct a truly dynamic economics.Marx and Schumpeter set the economic process into historical time. This is more than just adding a â€Å"t† subscript on all the variables of a model, and it is clearly different from pr oducing a growth model, although a growth model may be a useful aspect of a dynamic analysis. It means that the analysis does not violate the fundamental reality of time that the future follows the present and is unknowable, while the present has a past that is knowable and has caused the present to be what it is. In such a world disequilibrium and/or equilibrium-destroying events would be the central concern of the theorist.Thus, for both Marx and Schumpeter, capitalism has a past and is tending toward a future that is imminent in the configuration of forces at work in the present (Schumpeter, 1962: 43). To illustrate, it was capitalism's similarity with feudal and slave relations of production that led Marx to search for an explanation of how exploitation occurs under capitalism. Moreover, it was the vision of historical transformation that supplied the basis of his critique of classical political economy based on the latter's tendency to assume that capitalist production relation s were fixed and external.It is important to note that Schumpeter misses, misunderstands, or rejects Marx's value theory and the basis for Marx's theory of revolution Private property and capital represent a class relation in which wage workers, by selling their labor power, create the capitalist's private property. Furthermore, not only do they create a product that becomes a power over them, but also, by submitting to a work process organized by the capitalist for his own profit, they alienate their life activity, their work. They work to live rather than live to work.They become more and more dependent on the cash nexus of market transactions for their survival and for their satisfactions. They become alienated from their species life, the essence of the life of the human species which is human social development through creative work. Marx's basic argument, which is also an argument about logic, is that for truly human life to be possible, it is necessary (but not necessarily in evitable) for the wage-workers, for the exploited, to revolt. Schumpeter's class theory and theory of value together eliminate the possibility of revolt.It may be true that there is a high correlation between belief in the efficacy of the free market as an allocator of resources and protector of individual freedom and the method of static equilibrium theory to explain the operation of the market. However, as Schumpeter himself stressed many times, the deductions of economic analysis do not logically imply any particular ideological position. Static equilibrium theory no more proves the desirability of the free market than the labor theory proves the desirability of socialism.The fact that Marx and Schumpeter ascribed to radically different ideologies but each believed in the central importance of the evolutionary approach is itself sufficient proof that holding to a conservative, liberal, or radical ideology does not force one into the static equilibrium mold. In his works Marx wrot e about substratum of abstract labor which was an â€Å"essence† of concrete labors. Schumpeter in his â€Å"Imperialism and Social Classes† thought about social process regulated by a hierarchy of talents, organized in social classes (Schumpeter, 1955: 137, 160). In this process bourgeois class must provide the leadership role.