Poverty and Debt in Third World Countries that directly or indirectly Essay

Poverty and Debt in Third World Countries that directly or indirectly work to the benefit of developed countries and how the principles of Catholic Social Doctr - Essay Example In year 2000, the Church celebrated the Jubilee Year in the context of an escalating global debt crisis, mindful of the terrible price that the world's poor were paying for debts contracted by their governments without their knowledge, much less their consent. They are still paying, with blood, sweat and tears, seven years after Jubilee, despite the global movement against this debt burden. Jubilee USA3 has already stated, "don't owe, won't pay!" But despite the defiance, in real life, the poor are still paying for debts of the rich, and will continue to do so as long as their leaders and governments bow down before dictates of powerful multinationals and multilateral agencies including the IMF, WB and WTO. This is one almost overwhelming obstacle that the global poor have to overcome to free themselves from immoral and illegal debts. The Church's social teachings consider us all as members of the human community that have the right to human dignity and common good. But at the same time the Church "takes sides" by proclaiming its preferential option for the poor, especially vulnerable sectors such as women, children, and the elderly. This is especially true regarding the issue of debt. The overwhelming majority of people in poor countries suffer when so much of their resources are automatically channeled to debt servicing, instead of being used to fight poverty, ensure the delivery of basic services and generate more jobs, to mention only a few much needed programs. International Debt 3 For the poorest of the poor, debt was and still is literally a matter of life and death. Of all continents, Africa is probably the worst hit by the combined blows of poverty and debt, two problems that feed off each other. Africa managed to score a few victories in improving the people's health and lives, only to slide back due to structural adjustment programs imposed by the IMF-WB as a condition to approval of more loans for poor countries. "While many African countries succeeded in improving their health care systems in the first decades after independence, the intervention of the World Bank and IMF reversed this progress. In Kenya, for example, child mortality was reduced by almost 50% in the first two decades after independence in 1963. Across sub-Saharan Africa, the first decades after independence saw significant increases in life expectancy, from an average of 44 years to more than 50 years. In the 1980s and 1990s, however, African governments had to cede control over their economic decision-making in order to qualify for World Bank and IMF loans. The conditions attached to these loans undid much of the progress achieved in public health. The policies dictated by the World Bank and IMF exacerbated poverty, providing fertile ground for the spread of HIV/AIDS and other infectious International Debt 4 diseasesConsequently, during the past two decades, the life expectancy of Africans has dropped by 15 years." 4 No Relief from Debt Relief Many people pinned their hopes on debt relief, specifically on the Heavily Indebted Poor Countries (HIPC) initiative, which was set up for countries whose debts were quadruple their yearly export earnings that were usually channeled to

Marketing an Australian Wine to Hong Kong Wine Market Essay

Marketing an Australian Wine to Hong Kong Wine Market - Essay Example The growth in Hong Kong wine market is attributed to the abolishing of the duty on wine by the Hong Kong government. About 40% of the US$ 1.3bn worth of wine traded annually in London is bought by consumers in Hong Kong and China (Franz, 2008). Similarly, according to Parker (2010) a glass of wine raised by a Hong Kong resident is likely to have come from the Australian vineyard. The Australian wine industry considers Hong Kong as a major market. Because of the abolition of duties and taxes on wine in Hong Kong, exports from Australia to Hong Kong has increased manifold. Australia is an important source for high quality beverages including wine for Hong Kong’s restaurants. Hong Kong’s strategy to become the hub for wine trading in the Asian region presents opportunities for the Australian wine producers and for providers of wine-related services, like storage and auctioning (Dfat, 2010). Hong Kong enjoys locational advantage as far as wine auctions in the region are con cerned. The total wine auction sales in the region reached $160 million and now along with the United States, Hong Kong has become one of the two most important centers for wine auction (Hong Kong Digest, 2011). This is the reason that Australian wine makers, Brown Brothers, are eyeing Hong Kong to market its products. Hong Kong has the potential to influence trends in the region through events such as Wine and Spirits Fair which attracts audience from mainland China and other countries. Brown Brothers offers the most seasoned and diverse ranges of quality wine. Decrease in taxes makes cheaper wine popular (Asia Travel Tips, 2011). The Hong Kong youth between 21-28 years would prefer cheaper wines as they are yet to be established in life. Thus this study aims to evaluate marketing of wine to this segment. An external environmental analysis would help Brown Bothers understand and formulate the marketing strategy for Hong Kong. The external environment can be analyzed based on the po litical, economical, socio-cultural and legal environment, along with the wine sector in Hong Kong. Wine sector in Hong Kong Hong Kong’s alcoholic beverage market faced distortions because of the excessive duties on wines and spirits (APCO, 2010). The prices were artificially high and the local residents as well as the expatriates were forced to choose lower-quality beverages which impacted consumer choice. Hong Kong had very high level of taxation on wines compared to its neighbors and this increased illegal smuggling of alcoholic beverages. This caused loss of government tax revenue. The Hong Kong Wine & Spirits Industry Coalition (HKWSIC) used the services of APCO to represent the views of the consumers and the industry. Study and presentation of the results by APCO forced the Hong Kong government to abolish the taxation on wine products. External environment analysis Political environment Hong Kong is governed by the Basic Law of the Hong Kong Special Administrative Regio n of the People's Republic of China (Dfat, 2010). Hong Kong is a Special Administrative Region and is a capitalist society enjoying high political stability. It has an ‘executive-led’ system inherited from the British Colonial Administration. The Chief executive is appointed by Beijing after election and has the power to initiate legislation (Dfat, 2010). There is limited democracy as it still follows the Basic Law approved in 1990.