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Issues Affecting European Community - Essay Example

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The paper “Issues Affecting European Community” is a provoking example of a finance & accounting essay. The definition of the term ‘community’ has over time evoked various political, social, and economic interests. As such, it has been presented in various ways for various uses. As such, definitions have been specific to authorship and the use with various organizations presenting this diversity…
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Running Head: Community Community Name Course Lecturer Date Introduction The definition of the term ‘community’ has over time evoked various political, social and economic interests. As such, it has been presented in various ways for various uses. As such, definitions have been specific to authorship and the use with various organizations presenting this diversity. In addition, this is demonstrated by the presence of communities within communities and such sub-communities showing a lot of independence. Essentially, defining communities has a notion of commonness. With globalization, the term has even more divergent definitions given the greater commonness factor and complexity of issues today. The commonness depends on the issue of interest. This traverses aspects such as politics, economy and society. This thesis explores the definition of community, while considering the divergence of definitions relative issues. It will attempt to delineate how communities have been affected by issues such as globalization, economic crises, environmental issues and social equity. In the same stride the communities’ response to the issues will be explored and the role of leadership in the extent of response success. Definition of ‘Community’ Essentially, the definition of a community denotes the sense of commonality or a group of people having commonness of aspects. Additionally, it is of essence that the definition considers the issue of interest of commonness. The definition of a community may be done along such dimensions as geography, politics, society, economics, culture and history (Institute of Medicine (US), 2004). These aspects are incorporated either singly or in combination. Geographically, the definition considers settlement patterns whereas the political is considerate of systems of government and leadership. The economic aspect considers market and resources whereas the social takes care of culture. From a social system’s approach, the bond of communities has been described as being either implicit or both specific and formal. Implicit bonds form a gemeinschaft community which is characterized by commonness of beliefs, values, high interdependence and mutuality of hierarchy of status (Carter, 2011). Further on, this kind of a bond is much affected using symbols which is representative of the commonness. The informality of such communities is demonstrated by implicitness of rules of engagement. However, there are expectations on members. The other type of a community is one described in literature as gesellschaft (Carter, 2011). This is characteristic with specific and formal bonds with interactions being based on formal structures and organizations. This may characterize what the United Nations defines as the international community with respect to conventions. There are explicit and written-down rules and regulations of engagement. It has also been defined simply as a shared exchange. However, this definition presents a reader with the complexity regarding the dynamism of the exchange. This dynamism can also be influence (Kaye, 2004). With respect to this dynamism, Carter (2011) explores the influence by the degree of attachment and relativity to a place. Place communities are defined relative to a geographic location. There is a common habitat and neighborhoods. There are also a non-place community which implies commonness of goals achieved through cooperation and coordination. This may also be referred to as mind community (Carter, 2011). This presents an unbounded community. In addition to the aforementioned, the dynamism is reflected by the complexity of the member components, its environment, energy of exchanges as well as other communities and societies. The components within a community include individuals, groups, institutions and organizations whose interactions in commonness requires energy. The environment refers to the context of interaction in which the energy is being used. The environment is the society and may be local and global (Kaye, 2004). Carter argues that the energy is needed differently for component and the sustenance of the environment. The rationale for this is that communities need to satisfy the needs of the components or subsystems as well as for the environment. Specifically, the environment is characterized by key elements which are energy spending: evolution and structures (Carter, 2011). For instance, local and global communities are facing ever changing times as a result of globalization. A change in one place is having ripple effects across the globe. The recent economic crisis and information explosion have threatened communities causing the collapse of some, and revolution in others. Issues Affecting European Community There is no doubt that globalization is one of the issues facing most communities at the moment. This issue will continue to have a continued pervasive influence in the societal and economic development. The European Union, being one of the communities is no exception. Globalization may be said to be an opportunity or a threat to the countries within the European Community. This will mainly depend on the country’s regulatory and economic structure and the trade mix. Various countries in the EU have been exposed to globalization. The difference lies in mechanism that a country has laid to cope up with the issue. It is important to note that most European citizens view globalization as a major threat to social condition and employment. However, a few are said to have a positive view towards globalization (Sinn, 2004a). In the Community, globalization has posed various challenges in at different levels in the governments. Alteration of the economic environment is one of the ways that globalization is posing a challenge. Still, globalization has to some extent, boosted the growth and rise of social welfare as a result of allocation of more resources in the Community. Realization of the social benefits has been fulfilled by several conditions that include flexibility in the product markets and labor, and effectiveness of welfare state (Bourguignon and Morrison, 2002). Trade is one of the channels through which globalization is said to impact social situation in the member countries of European Union. The members’ states have continued to outsource in the trading activities. In a report given by the European Commission on the outsourcing, the European Community has continued to perform well in trade as it is still producing surplus goods. However, it is noted that the EU community lags in the information and communication technologies (Bourguignon, 2002). Concerns have continued to be raised whether good performance on intermediate has been as a result of the capital stock market being high. A risk is clear on the dependent on the capital stock as other countries are building up on the capital stock. The Community will then be at risk of losing its competitive edge. Another increasing concern is the becoming fact that Europe is now exposed to external price shocks as different countries are playing a major role in the margins of various markets, particularly for raw materials. The current rise of China is a new factor behind recent increase in globalization. China is increasingly an excellent exporter. In addition, its increase in labor is a continued threat to the trading activities of the European community. However, critics have it that China is not taking jobs from Europe. In fact, most jobs that the Europe countries have lost in the economic changes, it has continued to create more in the various competitive sector. This may be attributed to the growing external and internal trade. However, creation of jobs in the developing countries may results to painful reconstructing and competition for the economies of the community. Of important to note is the increased eroding of the industries. Furthermore, most of them have changed beyond recognition (Giddens, 2002). The European Community is said to be painted with large firms, mass production, rigid patterns of employment and outdated technologies that have inhibited the adjustment the novel international environment. Therefore, as economists argue, in absence of these reforms, globalization may be presented more of a threat than opportunity. For most members of the community in the west, globalization is an opportunity. This is because most of their exports are not competing parallel with exports from the emerging countries while the Eastern and Southern economies are exposed to competition as they trade in businesses that are similar. There are still vulnerable to great pool to unskilled labor which is seen to be harder to swift into high-tech and high value products (Bourguignon, 2002). Environmental issues have been major concern for the European Community. The members enjoy one the highest environmental standard in the world. Nevertheless, despite the robust internal environmental legislation, the community cannot completely shield itself from the negative consequences of global and transboundary environmental degradation. Climate change as a result of interference with the environment is a major challenge in the Community (Bourguignon and Morrison, 2002). Global warming has been on the increase in the past years in the world. This is a growing concern not only in the European Community but also in the whole world. Emissions of industries waste into the environment have increased the worries of most citizens. In addition, water pollution, noise and air pollution have been of major concern. Other areas of great concern include regulation of chemicals and soil protection. Income and wealth inequities within the European Community have been in a tremendous increase. Social equity does imply fair access to education, livelihood, resources and other fundamentals needs. It has been observed that increase in inequity has led to increase in security enforcement, social and welfare services, an increased spending on prisons. It has also led to reduction of potential markets. Increased in inequities has brought in the challenge of developing alternative reliable prosperity. The persons marginalized are tempted to eat into the reserves of society and nature so as to meet the immediate requirements. Others may seek for other choices that too may lead to depletion. The toxic production activities are unjust with the tremendous increase health impacts along class lives and racial (Giddens, 2002). Member states have continued to emphasize the need to have equity in the education sectors, health matters and supply of the basic amenities. It has been observed that about 80 million of Europeans are living below the given poverty line. This does present approximately 16 percent of the total population. Various organization bodies have discovered that there is need to improve the living conditions of the citizens. A survey done showed that social exclusion, poor living conditions and unemployment had an impact on their social contact and social participation which resulted to having an impact on the quality of life the citizens. Under health, citizens living in disadvantaged circumstances are said to be susceptible to health problems. Still, the citizens are not able to meet their health costs. Similarly, people suffering from chronic illness and disabilities are unable to meet the health costs. In addition, health issue may be compromised indirectly; poor housing, poor quality services and environment. Equally, lack of knowledge on health issues worsens the situation. In education, the less educate people are seen to be excluded especially in the work place. The education system has been perceived to create inequalities. This inequity has led to a rise in costs in terms of public aid, delinquency, crime rates and health expenditure. Guaranteed equity in education will result to long-term benefits, reduction of costs, reduced economic costs and more added values to other developing sectors. However, it is important to note that various members’ states have different level of social equity (Stiglitz, 2002). According to World Bank (2007) the European Community has successively laid down system necessary for economic governance. The system is a response to the various facets of globalization. This has been as a result of the realization that globalization has definitely become to be a new way of day-to–day life that nations have to face. Leaders have, therefore, taken initiative to ensure that the community benefits from globalization. The leadership exercised in the European Community has led to growth in the sector. Globalization has been an opportunity rather than a threat in the Community. A strong policy framework that is accompanied by orientation towards integration in the global economy has been established in the Community. The policy has been enhanced by emphasizing on the spending on infrastructure, social justice, developing various institutions such as judicial systems, tax systems, and the private sector. The Community has also been able to continue strengthening the macroeconomics policies, financial systems and reforms in the labor markets. The leaders have continued to play a major role in ensuring that liberalization of the market is effective. This include establishing subsides to important commodities and opening up trading activities to each other. The Community has also successfully created policies that have led to the financial system more crisis-proof. They have done this by strengthening trading activities and domestic policies (Giddens, 2002). As seen earlier, migration of labor is increasing becoming a problem in the Community. In addition, the temporary flow of labor is playing a role in the global economy. Economic policies have been laid down to ensure that the income policies are clarified to prevent the brain drain. Shifting of industries or a complete change in the industrial centre is a major issue in the Community (World Bank, 2007). The European Union has resulted to inter regionalism. The Union has laid strategy on establishing trade agreements with countries that pose great competition in the industries, China, for example. China is one of the fastest developing countries and has been competing with the Western countries in their exports and imports. The imports that face less competition have been liberalized through the World Trade Organization while those exports that are export-oriented are taken to the interregional approach (World Bank, 2007). This helps the Community to minimize competition from the imports and to gain more markets. The best approach fro this is effective a political approach. Basically, leadership is best exercised in such situations (Stiglitz, 2002). The Community has continued to campaign for social equity among the members’ states. Noting that that equity is the corner stone of all the society, the leaders have laid various strategies have assisted in ensuring that resources are equally shared, education has benefitted all the citizens and the living standards of the minority have been improved. Various institutions have been establish, the physically challenged in the community have continued to enjoy support from various organization (Sinn, 2004a). The environmental issues have been a major concern in the world. Under good leadership, the European Community has continued to establish principles that have led to a tremendous increase in the protection of the environment. Creating awareness among the citizens has been a major boost in the Community. Recycling of waste material has been successful. In addition, energy usage has been minimized as the governments are working on the continued use of alternative energy sources in order to eliminate the negative effects of fossil fuels on the environment (Sinn, 2004b). In conclusion, a community does refer to ones. Various communities have been set up including the European Union. It is evident that there are various issues affecting the communities. These include; globalization, social equity and environmental issues. It is, therefore, important for the community to strategy on successful ways of managing the issues. Excellent leadership exercise assist in boosting the laid strategies. Thus, it is vital for every community to work towards improving the role of leaders in the community for effective and efficient flow of issues at hand. References Bourguignon, F. (2002). Making Sense of Globalization: A Guide to the Economic Issues, Centre or Economic Policy Research, London, CEPR Policy Paper No. 8. Bourguignon, F. and Morrison, C. (2002). “Inequality Among World Citizens: 1820-1992”, American Economic Review (Sept) 727-744. Carter, I. (2011). Human behavior in the social environment : a social systems approach. Somerset: Aldine Transaction . Giddens, A. (2002). Runaway World: How Globalisation is Reshaping Our Lives. London: Profile Books. Institute of Medicine (US). (2004). A shared destiny: community effects of insurance. Washington: National Academies Press . Kaye, C. (2004). The complete guide to service learning : proven, practical ways to engage students in civic responsibility, academic curriculum, & social action. Minneapolis: Free Spirit. Sinn, H. (2004b). ‘The new systems competition’ Perspektiven der Wirtschaftspolitik’ 5, 23–38 Sinn, H. (2004a) ‘Social Union, Migration and the Constitution: Integration at Risk", CESifo Forum 5 (3), 04-11 Stiglitz, J. (2002). Globalization and its Discontents, New York: W.W. Norton. World Bank. (2007). Global Economic Prospectus, managing the next wave of globalization, World Bank, Washington, D.C. Read More
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