Transcendental Critic of the Puritans Essay -- Analysis, Hawthorne

There is no hard definition for Transcendentalism; it varies depending on which group of Transcendentalist one talks to. Webster defines its purpose is to discover the nature of reality by investigating the thought process instead of the objects of sense. The Oxford dictionary implies that divinity can be found in all nature and humanity. Almost all definitions include a search for truth, spiritual goodness, and the nature of reality by studying nature by communing with the human soul or an analysis of the human soul’s interaction with the spirit of God. Also, according to Raziel Abelson, Transcendentalism â€Å"†¦opposed the strict ritualism and dogmatic theology of all established religious institutions† (qtd. in â€Å"Brook Farm†). In 1841, a group of Transcendentalists established the Brook Farm formally known as the â€Å"Brook Farm Institute of Agriculture and Education†; among that group were American literary and religious leaders such as Amos Bronson Alcott, William Ellery Channing, Charles Anderson Dana, Ralph Waldo Emerson, Margaret Fuller, Nathaniel Hawthorne, Theodore Parker, and Orestes Augustus Brownson (â€Å"Brook Farm†). It is because of the influence of the Transcendental movement that Hawthorne wrote â€Å"Young Goodman Brown† and â€Å"The Minister’s Black Veil† where he attempts to demonstrate (perhaps to the Puritan Church, certainly to all who read the stories) that the Puritan Church’s strict and unforgiving orthodoxy was not its greatest strength but its greatest weakness. In â€Å"Young Goodman Brown,† Hawthorne’s overt use of spiritual/metaphysical allegory and symbolism is used to display the sinful nature of man and the possibly tragic consequences of the Puritan Church’s ridged and unwavering demand of sinless purity from its m... ...v. 2011. Hawthorne, Nathaniel. â€Å"The Minister's Black Veil, A Parable.† Electronic Text Center, University of Virginia Library. Web. 25 November 2011. ---. â€Å"Young Goodman Brown.† Literature Reading, Reacting, Writing. Compact 7th Ed. Kirszner and Mandell. Boston: Wadsworth, 2010. Print. King James Version Bible. Philadelphia: The National Bible Press, 1958. Print. "Transcendentalism." (n.d.): Funk & Wagnalls New World Encyclopedia. Web. 24 Nov. 2011. "Transcendentalism n." The Concise Oxford English Dictionary, Twelfth edition . Ed. Catherine Soanes and Angus Stevenson. Oxford University Press, 2008. Oxford Reference Online. Oxford University Press. Amarillo College. Web. 27 November 2011 â€Å"Transcendentalism.† Webster’s new World Dictionary of the American Language. Second College Edition. New York: Simon and Shuster, 1984. Print.

An Analysis of Judith Wrights Woman To Man Essay -- Judith Wright Wom

An Analysis of Woman To Man  Ã‚   The form of this text is a poem. The visual appearance of the text on the page indicates to us that it is a poem: it is positioned in the center of the page and it is made up of uniform sections, or stanzas. The form is more constrained than that of a novel, which runs freely across the page from left to right. The text also utilizes formal poetic features, such as: multiple stanzas containing equal numbers of lines; line breaks between stanzas; and a regular number of beats per line. The knowledge that Judith Wright is a well-known poet adds to the evidence that this is a poem. This text has more than one intended audience. The primary audience is Judith Wright's husband. It is a well-known fact (in literary circles) that Wright addressed this poem to her husband when she was pregnant with one of their children. The intimate nature of this exchange between Wright and her husband is evident in her use of personal pronouns: "†¦you and I have known it well"; "†¦your arm†¦"; "†¦my breast†¦". The second intended audience is every woman and every man, as an expression of something from every woman to every man. The title Woman To Man makes the poem universal, more than just a poem from Judith Wright to her husband. There are no names given to the woman and the man within the world of the poem. The experience of 'the Woman' becomes the experience of 'every woman'. The third audience for this text is the literati – the world of literature. Judith Wright is a well-known Australian poet; this poem has been published many times; this po em obviously did not stay between Wright and her husband. The poem displays the poet's highly technical and sophisticated control over language: this skill has been analyse... ...childbirth. The tone of "Woman To Man" is serious and moves from contentment to fear. To begin with, Wright calmly pours her emotions onto the page. She contemplates her unborn child, joyfully sharing her experience with her husband: "†¦yet you and I have known it well†¦". Her joy is shown in the beautiful images she uses to describe her child: "†¦the intricate and folded rose†¦". It is only in the final stanza that her joy and contentment turn to fear. She begins to imagine the intense pain of labour and she becomes frightened: "†¦the blaze of light along the blade / O hold me for I am afraid." The conclusion of the poem is dramatically appropriate. The shift in tone from peaceful contentment to fear is only natural, as the Woman (the poet) moves from the state of pregnancy, which she has known for nine months, into the early stages of labour, which frightens her.

Antigone: A Greek Tragedy Essay examples -- essays Papers

Antigone: A Greek Tragedy The play Antigone is often thought to be a Greek tragedy because each of the tragic heroes is neither extremely good or bad, their fortunes change from good to bad, their misfortunes do not result from their own wrong doings, and they arouse pity within the audience. Antigone and Creon are the two tragic heroes of this play; however, I believe Creon to be main one. In the play Antigone there can be seen a struggle between two forces: god’s law verses man’s law. A woman, Antigone, who strongly believed in the god’s law, opposed a king, Creon, who believed in the man’s law. Antigone disobeyed Creon’s law, about burying Polyneices, simply because she felt it to be her duty to the gods. Although both Creon and Antigone suffer greatly in the play, I believe that Creon is the tragic hero. Creon was a king who made a fatal mistake, he didn’t listen to other people. In the beginning of the play Creon decided not to bury the body of his dead nephew Polyneices. He proclaimed throughout his city that whoever buries Polyneices will be stoned to death. Creon hoped that by making such a threat he would stop any disagreements and would establish peace in Thebes. But Creon was wrong. Antigone, a relative of Creon, decided to bury Polyneices, because she felt that Polyneices’ soul didn’t deserve an eternity of suffering and wondering (Greeks believed that if a person wouldn’t be properly buried his soul would wonder forever and will never be at ease). Unfortun...

Robot in Medical Field

VEX ROBOTICS ESSAY I believe that robotics should be used in the medic field because they can be safer and be more helpful. They can save time and a person life. They are more accurate. I have a evidence to prove that robots are safety to use. 1. In 1997, surgery was performed in Cleveland using Zeus, a robotic surgical system. The operation successfully reconnected a woman’s fallopian tubes. 2. In May of 1997, the first robotically-assisted operation for a heart bypass case in Germany was successfully done using the da Vinci surgical system. 3.The first coronary artery bypass graft was performed using the ZEUS robotic surgical system in October, 1999, in Canada. 4. The first unmanned robotic surgery was performed in Italy, in May, 2006. 5. Also in 2011 a 50 year old mother of 4 child, Maureen Sampson was suffering from gastrointestinal disorder. This is very serious and it can be deadly. Her conditions worsed each day. As the day went by her condition worsed. But in july of 2 011 her doctor referred her to the robotic-assisted surgery program at Swedish Covenant Hospital in Chicago.Maureen didn’t hesitate after learning that she could recover in a matter of weeks versus months compared to a conventional surgery. Just a month after her surgery, Maureen was back at work, back to daily life with her family, and finally feeling at ease about her health. Maureen is just one of hundreds of patients who have benefited from the knowledge and skill of the robotic-assisted surgical team. But remember these are just some of the examples of succesful robotic surgery. Robotic-assisted procedures reduce the negative impacts of surgery, allowing for a speedier recovery and less pain, risk of infection, and scarring.Surgery robots on this day are actually cleverly made manipulators controlled by competent doctors. Nowadays, there are two fields where surgical robots are being developed and tested. One is telerobotics which enables a doctor to do a surgery at a di stance. The other field is minimally invasive surgery – surgery done without making large cuts. The da Vinci robot surgery system is one great example of robotics use for surgery purposes. The da Vinci System consists of a surgeon’s console that is typically in the same room as the patient and a patient-side cart with four interactive robotic arms controlled from the console.Three of the arms are for tools that hold objects, act as a scalpel, scissors, bovie, or unipolar or bipolar electrocautery instruments. The fourth arm is for an endoscopic camera with two lenses that gives the surgeon full stereoscopic vision from the console. For patients, the benefits of robotic assisted surgery may include: -Decreased post-operative pain -Decreased risk of infection -Decreased use of anesthesia -Decreased blood loss -Shorter hospital stay -Quicker and more complete recovery -Faster return to normal daily activities

Aristotle Versus Plato

THE CONCEPT OF IMITATION IN PLATO AND ARISTOTLE Abstract Plato and Aristotle argue that artist (Demiurge) and poet imitate nature, thus, a work of art is a reflection of nature. However, they have different views on the functions of imitation in art and literature. Plato believes in the existence of the ideal world, where exists a real form of every object found in nature. A work of art –which reflects nature is twice far from the reality it represents. Aristotle, on the other hand, does not deal with the ideal world, instead he analyses nature. He argues that a work of art does not imitate nature as it is, but as it should be.In this sense, an artist does not violate the truth but reflects the reality. Key Words: Imitation, art, literature, mimesis, etymology, ethic. Introduction Plato and Aristotle attribute different meanings to the term ‘mimesis’; Plato considers ‘mimesis’ in ethical and political context, Aristotle uses ‘mimesis’ as an aesthetic phenomenon. They both agree that poetry is mimetic but they have different idea about poetry and ‘mimesis’. The present paper aims first to define ‘mimesis’ and explain the historical and linguistic background of the term, then to analyze the concept of ‘mimesis’ in Plato and Aristotle.In literature the word ‘mimesis’ has two diverse applications; it is used â€Å"to define the nature of literature and other arts and to indicate the relation of one literary work, which serves as a model. † Plato and Aristotle take ‘mimesis’ to define the nature of art, yet they ascribe different meanings and value to it. Plato and Aristotle consider the historical and etymological background of the term, therefore, it is necessary to know about the linguistic and historical background of the term ‘mimesis’ to understand what kinds of meaning and value they attribute to the concept.Linguistically, the ro ot word is ‘mimos’; mimesthia, mimesis, mimetes, mimetikos, and mimema are derived from ‘mimos’. Mimesthia denotes imitation, representation or portrayal; mimos and mimetes designate the person who imitates or represents, whereby ‘mimos’ originally refers to the recitation or dramatic performance in the context of dramatic action. The mime, which is a kind of banquets given by wealthy man, is most probably derived from mimos The noun ‘mimesis’ as well as corresponding verb mimeisthai refer to the re-enactment and dance through itual and myth. In Athenian drama the re-enactment is equivalent to acting out the role of a mythical figure and ‘mimesis’ in such a context connotes the imitation of the earlier re-enactment of the myth and rituals. Historically, the word ‘mimesis’ as re-enactment first appears in such rituals, and the historical origin of the term, as located in Dionysian cult drama, coincides this meaning in that ‘mimesis’ in both cases refers to imitation, representation and expression.It is argued that myth, and divine symbols of the rituals are transformed to artistic-dramatic representation through which it became possible to represent the divinity and gods in drama. Tragedy, for instance is the transformation of the myth and rituals. In a different context ‘mimesis’ may refer to identification. People identify themselves by means of their mimetic ability when they see themselves in the other and perceive a state of mutual equality. In this sense, ‘mimesis’ is distinct from mimicry, which implies only a physical, and no mental relation.That is, a person regards the ‘Other’ as equal and assumes the ‘Other’ to be doing the same in reverse. Associated with the physical aspect of ‘mimesis’ is its performative aspect, as an actualization, a presentation of what has been mimetically indicated. Thus, the term ‘mimesis’ is combined with an action-oriented speaking. The term ‘mimesis’ may also refer the simile, similarity and representation; it may refer to the symbolization of the world when we take it as a transformation of myth. Mimesis’ has also been cited since classical times in the exploration of relationships between art and reality. The meanings and applications of the term changes according to the context it is used. Therefore, Plato and Aristotle ascribes different meanings and value to ‘mimesis’ with respect to the contexts they use it. The Concept of Imitation in Plato takes the term ‘mimesis’ with several meanings and connotations in the dialogues and alters the meaning of the term according to the context in which he uses it.He uses ‘mimesis’ in the context of the education of the youth; he discusses the function of ‘mimesis’ as likening oneself to another in speech and bodily behav iour and as addressing the lower part of man’s soul; he also refers to the epistemology and metaphysics of the concept. He takes the word ‘mimesis’ with pedagogic attributes and uses it in educational and ethical context when he says ‘guardians of an ideal state should be educated to imitate only what is appropriate’.In the third book of the Republic, for instance, Plato provides further definitions of ‘mimesis’, centering on the relation between ‘mimesis’ and poetry, ‘mimesis’ and education and also poetry and education. ‘Since young people learn essentially through imitation, it is significant to select the models’. ‘Mimesis suggests unfavourable effect on the part of the young people’ and ‘poetry is one important source of the youth’s experience with examples and models’; therefore, if the world of models and examples ought to be controlled in the interest of educ ation, poetry must be likewise subject to control.Plato argues the case in the Republic as follow: The youth cannot distinguish what is allegorical from what is not, and the belief they acquire at the age are hard to expunge and usually remain unchanged. That is important that the first stories they hear should be well told and dispose them to virtue. The contents, forms, and representational modes of poetry play an important ethical role in the education of guardians and should, because of the effects they exercise through mimetic process, be based on ethical principles.Young people should only imitate brave, sober, pious and noble men, which will increase their strength and will not infect them with weakness. In this sense, it is argued in the Republic that tragedy and comedy, as mimetic poetry, represent injustice among the gods in the assertion that gods are responsible for unhappiness among people. In the Platonic conception, gods cannot be evil; heroes cannot be weak. The poet ’s representation violates the truth and by representing the deficiencies of gods and heroes, has negative effect on the community and the education of youth.Mimetic poetry not only misrepresents gods and heroes and leads young people to immoral behaviours but also appeals to and strengthens the lower, desiring part of the soul. According to Plato, poetry encourages short-term indulgence in our emotions when reason would forbid their gratification because it is useless or harmful for the citizen who considers life as a whole. ‘Reason is a capacity that enables moral quality and authorities.Poetry is intuitive and stirs up a part of a citizen that ought to be kept quiet and fosters the lower part of the soul against the rule of higher part, reason’ Poetry becomes a dangerous rival to morality, which ‘is able to corrupt even good man and is a very dangerous thing encouraging all the lower desires and making them hard to cope with suffering in the theatre, and taking pleasure in laughing at comedies tends to affect our attitudes in real life and make us cynical and unserious.Sex, anger, and all desires, pleasure and pains are fostered by poetic imitation, thus, Homer and tragic poets are not true example for a citizen’. Poetry, then, taking its theme as human emotion and human frailty, threatens to disturb the balance and rational disposition of the individual for the individual, by way of his mimetic abilities, is infected through poetry. Philosophy provides wisdom and truth in the education but poetry has a potential capacity to demoralize mind.For example, Homer’s poetry was drawn on for educational purposes as a collection of knowledge and wisdom and enter in to competition with philosophy, it should therefore, be censored. It is obvious that poetry endangers the ideal citizens who can control and manage their feelings and remain reasonable, thus should be censored. While being an aspect of misrepresentation and somethi ng used in a dangerous way for the education of young people, ‘mimesis' may also come to mean re-enactment in Plato’s dialogue when it refers to the imitation of a man in action in drama.In the Republic, Plato uses the term to refer to the behaviour of the philosopher: â€Å"As he looks upon and contemplates things that are ordered and ever the same, that do no wrong, are not wronged by, each other, being all in rational order. He imitates them and tries to become like them as he can† A similar process occurs in tragedy, which is the artistic and dramatic re-enactment of ritual and myth and transformation of religion. Through tragedy it becomes possible for a man to represent the divinity and gods.For instance, the re-enactment, in Athenian drama, is equivalent to acting out the role of a mythical figure. ‘Mimesis’, in such a context, designates the imitation of earlier re-enactment, the instances of which is taken from myth and rituals. The nature o f ritual is spiritual and pleasing and such primitive rituals serve communal interests, in that each member of community gets rid of self. A tragic play may lead to self alienation; and may lead to identification with the fallen character and with the hero. The process of re-enactment, then, leads one to enter into another’s feelings and suffering.Plato insists that no one of truly noble character could suffer as a tragic hero does, since one whose soul is in a state of harmony is not to be influenced and hurt. Therefore, he objects to the re-enactment of ritual. Mimetic behaviour should be avoided because it may lead to identification with fallen characters and with the hero. Plato in the Republic argues that ‘or have you not observed that imitations, if conditioned, settle down youth’s life, and turn into habits and become second nature in the body, the speech and the thought .Apart from this, people identify themselves by means of their mimetic ability when th ey see themselves in the other and perceive a state of mutual equality. In this sense ‘mimesis’ is distinct from mimicry, which implies only a physical and no mental, relation: a person regards the ‘Other’ as equal and assumes the ‘Other ‘ to be doing the same in reverse. In this respect, a person who imitates is doomed to self-sacrifice and lack of self-identity.Moreover, the process of mimetic identification becomes a source of pleasure in the form of tragedy, which correspondingly frames the myth or re-enacts to substitute the myth in the form of dramatic representation. In the seventh book of the Republic, which is about law, he states ‘we are ourselves authors of tragedy, and that the finest and the best we know how to make’. In fact, our whole polity has been constructed as a dramatization (mimetic) of noble and perfect life; that is what we hold to be truth in the most of real tragedies’. However, in art, ‘mimesi s’ has a different function.Aesthetically, ‘mimesis’ refers to misrepresentation. Reality and truth can only be understood through reason. The artist works with inspiration and imagination: the two faculties don’t give us the true image of reality, and the end of tragedy is a partial loss of moral identity. On the one hand, there is ‘mimesis’ as a re-enactment of Dionysian rituals in the form of tragedy which leads to self-sacrifice and wrong identity and which addresses the lower part of the soul and corrupts the ethical development of the youth. On the other hand, there is ‘mimesis’ as an imitative, imperfect image of reality.In a sense, Plato’s resistance to ‘mimesis’ is not only due to the fact that tragedy (mimetic art) may lead the audiences back to the ritual and irrational mode of primitive society but also due to the fact that mimetic art is an imitation of objects (eidon), which are imitations themsel ves. He objects to ‘mimesis’ for the fact there is no relationship between what is imitated and what is real. ‘Mimesis’ designates the ability to create expression and representation on the part of poet, painter and actor, both in a general and specific sense.For example, the painter produces a relationship between an image he created and the object. If the relationship consists in the production of similarity, then, there arises a question of where the similarity between image and object lies. If the images he creates don’t make a reference to reality and real object, and if the relationship between object and image is on the level of similarity created by the poet through art, then, there appears a lack of link between true and false. But in Plato’s philosophy the relationship between objects and reality does not consist of likeness or similarity.According to Plato, Demiurge creates the idea and by beholding the idea Demiurge produces the ob ject; his ability is exalted in the imitation of the Idea. The poet, on the other hand, creates the images neither by seeing the idea nor from more substantive knowledge of the object since he produces nothing but phenomena by holding up a mirror. In this sense, the artist produces appearance and his work cannot provide us with true insight. Then, when a poet writes about the bed, for instance, it is not a bed manufactured by the craftsman from the idea nor does it have any relation to the real bed; it is only simulation and phenomena.There is also a difference between the knowledge of the poet and the knowledge of the craftsman. Man makes things and makes images. The craftsman makes the things following the original copy or model; the poet follows the image of the model or copy; therefore he gives only a proportion of reality. The proportion of knowledge and opinion, truth and falsity plays a contrasting role in distinguishing imitation as proportion of being to appearance. Plato a rgues that to understand the image, one needs to know the reality and the path to reality is in philosophy and reason, not in poetry and emotion.Although Plato admits that every object in nature is a reflection of the Idea, he doesn’t object to the reflection of object in nature. Plato uses mirror and water as constant metaphors to clarify the relationship between reality and the reflection of eidon. Plato argues that the poet holds up mirror to nature and in his work we see the reflection of nature not reality. He objects to the reflection of objects in the mirror, since things are divided into two parts: visible and intelligible. The first of the visible things is the class of copies, which includes shadows and reflections in the mirror.The second class of visible things is that of which the previous is a likeliness or copy. Plato objects to the reflection of object in the mirror, since mirror (poet) imprisons and limits the image. And he also objects to the imitation, sinc e the poet imitates without knowledge. Therefore, it is not its imitative character but its lack of truth and knowledge, which brings poetry to its low estate. Homer and all the poetic tribe are imitators of images of virtue and other things but they do not rely on truth. Poetry, after all, is a madness that seizes the soul when it contemplates in true knowledge of goods.Plato’s objection to ‘mimesis’ may also interpreted as a reaction to the sophistic thinking that aims to produce images that the listener will regard as real, all of which take place in the world of phenomena. Image, thought, and opinion combine into a world of appearance characterized by nonbeing, a phenomenal nature and similarity. And as long as illusion and reality are not distinguished, science, ignorance, and appearance merge together. Within the concept of ‘mimesis’, then, Plato creates an independent sphere of the aesthetic consisting of appearance, image and illusion and exc ludes it from the domain of philosophy.He insists that there are no phenomena without being, no images without reality, no ‘mimesis’ without a model. Yet reality and idea cannot be represented without knowledge and images are not part of reality. Plato, in the Republic, in Ion, and in Symposium uses the concept of ‘mimesis’ with several meanings. He refers to the education of the young in Book X of the Republic; in Ion he develops a metaphysical discourse on the concept of imitation, and in Book III of the Republic he objects to imitation because ‘mimesis’addresses and strengthens the lower part of the spirit.Plato refers to ethical aspects of ‘mimesis’ whenever he refers to the concept of imitation. That is, ‘mimesis’ is an ethical matter in Plato’s dialogues. He is not interested in the aesthetic aspect of ‘mimesis’; therefore, he does not pay attention to the form and matter of ‘mimesisâ₠¬â„¢and art. Plato deals with the value of ‘mimesis’. Aristotle is the first to deal with ‘mimesis’ as a theory of art. He dwells on the concept of ‘mimesis’ as an aesthetic theory of art and ‘considers imitation in terms of the form in which it is embodied’.By imitation, ‘he means something like representation’ through which ‘mimesis’ becomes the equivalent of artistic and aesthetic enterprise’. Unlike Plato, Aristotle also argues that ‘mimesis’ is not morally destructive since reason controls art. II. The Concept of Imitation in Aristotle Aristotle states that all human actions are mimetic and that men learn through imitation. In particular, ‘mimesis’ is the distinguishing quality of an artist. He argues that ‘public classifies all those who write in meter as poets and completely misses the point that the capacity to produce an imitation is the essential quality of the poet’.The poet is distinguished from the rest of mankind with the ‘essential ability to produce imitation’. A poet may imitate in one of three styles in poetry; he may use pure narrative, in which he speaks in his own person without imitation, as in the dithyrambs, or he may use mimetic narrative and speaks in the person of his characters, as in comedy and tragedy. A poet may use mixed narrative, in which he speaks now in his own person and now in the person of his character, as in epic poetry. Mimetic poetry may also differ according to the object of imitation.In this respect, tragedy differs from comedy in that it makes its characters better rather than worse. ‘Mimesis’, particularly, becomes a central term when Aristotle discusses the nature and function of art. In the Poetics, he defines tragedy as: ‘as an imitation of human action that is serious, complete and of a certain magnitude; in language embellished with every kind of artistic ornament, the various kinds being found in different parts of the play; it represents man in action rather than using narrative, through pity and fear effecting the proper purgation of these emotion’.Aristotle is interested in the form of imitation and goes on to consider plot, character, diction, thought, spectacle and song as constituting elements of a typical tragedy. The action of plot must be complete in itself with a proper beginning, middle and an end. All parts of action must be equally essential to the whole. Each part of the tragedy is imitation itself. Character in tragedy imitates the action of noble man who has to be a man of some social standing and personal reputation, but he has to be presented us in terms of his weaknesses because it is his weakness that will make his fall believable.Aristotle thinks that all types of art are mimetic but each may differ in the manner, means, and object of imitation. Music imitates in sound and rhythm, painting in color and po etry in action and word. Aristotle’s ‘mimesis’ does not refer to the imitation of Idea and appearances, like that of Plato. He argues that each area of knowledge is imitation in the sense that as a human being we all learn through imitation. However, he carefully makes a distinction between different kinds of knowledge.For instance, he claims that art and philosophy deal with different kind of truth; philosophy deals with concrete and absolute truth, whereas art deals with aesthetic and universal truth. The difference, for instance, between mimetic poetry and history is stated as ‘one writes about what has actually happened, while the other deals with what might happen’. Art, unlike science, doesn’t abstract universal form but imitates the form of individual things and unites the separate parts presenting what is universal and particular.Therefore, the function of poetry is not to portray what has happened but to portray what may have happened in accord with the principle of probability and necessity. Since poetry deals with universal truth, history considers only particular facts; poetry is more philosophical and deserves more serious attention. In addition, aesthetic representation of reality is not technical, factual, philosophical, and historical. Aristotle compares aesthetic process (mimesis) with the process that takes place in nature.While nature moves through internal principles, art moves through organic principles like plot, action, characters, diction, and there is a unity among them. In a sense, art imitates nature and the deficiencies of nature are supplemented in the process of imitation, and art follows the same method, as nature would have employed. Thus, ‘if a house were natural product, it would pass through the same stages that in fact it passes through when it is produced by art, they would move along the same lines the natural process actually takes’. Poets, like nature, are capable of c reating matter and form.The origin of nature is nature itself and the origin of art is the artist and the defining characteristic of the artist is the ability to create, through imitation, as nature does. The artist constructs the plot as an organizing principle, character constitutes the relation and carries on the action and style gives pleasure. For instance, the plot of tragedy and Dionysian rituals display similar organization. The rituals begin with the spring, which is a striking and beautiful time of the year, and they represent the strength of gods and nature upon primitive society.Tragedy, like the image of spring, has a striking and fascinating beginning and, like ritual, a tragic play pervades and shapes the feelings of the audiences. Dionysian ritual is a sacrifice of human being for gods and nature in the hope for a better and peaceful beginning. Similarly, the tragic hero is symbolically sacrificed after which there appears a peace. Then, the poet takes tragedy, as a mimetic representation of myth, from the natural course of an event that takes place in nature and reorganizes it.In this sense, ‘mimesis’ designates the imitation and the manner in which, as in nature, creation takes place. Mimesis, as Aristotle takes it, is an active aesthetic process. He argues that ‘imitation is given us by nature and men are endowed with these gifts, gradually develop them and finally create the art of poetry’. The poet does not imitate reality but brings reality into existence through ‘mimesis’. The poet recreates and reorganizes already known facts and presents them in a fresh and attractive way; therefore, though audiences know the story of Sophocles’ Oedipus, they go and watch it.The reality as presented to us through ‘mimesis’ is superior and universal not only because we are pleased to learn through imitation but also because such reality is better. Homer, for instance, depicts Achilles not only a s a bad character but also depicts his goodness. Mimesis is thus copying and changing. The poet creates something that previously did not exist and for which there are no available models. Even in dealing with historical materials, the poet needs to fashion it in accord with his art rising to a higher level than is found in reality.Art is fictitious but the mimetic and aesthetic nature of art pervades the fictitious deviation and a work of art forces the thing to appear as something more beautiful and better than that nature and human being posses in common, ‘for it is always writer’s duty to make world better’. It can be argued that Aristotle defines and argues about art with respect to ‘mimesis’, and the concept of imitation in Aristotle is an aesthetic matter. Mimesis is not only ‘origin of art but also a distinguishing quality of man, since imitation is natural to mankind from childhood on’; in addition ‘all men find pleasure i n imitation’.He claims that there are ‘things that distress us when we see them in reality, but the most accurate representation of these same things we view with pleasure. In this sense, catharsis is not a moral and psychological matter but a natural end of the aesthetic act as Salkaver discusses below: Fear and pity are dangerous emotions: painful and troubled feelings arise from the imagination of an imminent evil and cause destruction and pain. Pity, in particular, is a kind of pain upon seeing deadly or painful evil happening to one who does not deserve.However, in the representation of such feelings one feels empathy and gets rid of them. So, a work of art gives a man an opportunity to get rid of painful and troubled feelings arising from the imagination of an imminent evil that may cause destruction and pain on the part of the citizen. Aristotle develops a consistent theory of art upon the concept of imitation. He begins saying that all human actions are imitatio n, then, he focuses on poetry and other areas of studies like history and philosophy. Lastly, he dwells on the poet and the concept of imitation as taken and practiced by playwrights.All his arguments upon ‘mimesis’ are, both in general and in specific sense, have aesthetics quality, since he does not take imitation as social, moral or political phenomena but as an activity of the artist. CONCLUSION Plato’s main concern is with the public recitation of dramatic and epic poetry and in Plato there is emulation between philosophy and poetry. The poet influences the character of the young in every way and has corruptive impact upon the education of the young mind. In addition, poets don’t have a true knowledge of the things.Plato suggests that the emotional appeal is a threat to reason, that mimetic art is remote from reality, that the poet is not serious and knows nothing about poetry and cannot give satisfactory information about his art. It is obvious that he resists the concept of imitation in the case of poetic composition. Tragedy, in particular, and poetry, in general are concerned with pleasure rather than instruction and since it is not possible to imitate a wise and quiet person in the play, since such a person does not fit the content of tragedy, ‘mimesis’ is ethically distracting.Therefore, the function of various discussions of mimetic art in the Republic is ethical: wherever he mentions art he discusses it in relation to education and ethics. Although Aristotle agrees with Plato that poetry has the power to stimulate emotions, he does not pay much attention to the ethical and epistemological aspects of ‘mimesis’. Yet he dwells on the pleasure that men take in learning and argues that tragedy discharges the feelings and spectators leave the play in a state of calm, free of passions.He does not restrict art and poetry and the concept of ‘mimesis’. Aristotle’s ‘mimesisâ€℠¢ is defined by mythos and praxis’, which brings the concept close to areas of time and action- in contrast to Platonic ‘mimesis’, which is closer to image, imagination and imitation. He argues that tragedy is the imitation (mimesis) of a man in action. Aristotle’s ‘mimesis’ is active and creative; and he gives a dynamic character to ‘mimesis’ by introducing mythos and praxis, thus, defines art as ‘mimesis’ and the artist as character.Plato worries about the moral effect of poetry, while Aristotle strikes to psychology and returns repeatedly to shuddering terror (phobos) and pity (eleos) that the tragedy is creating in the spectator, who therefore repeats or imitates what has already taken place on stage. Plato argues that there is a duality between art (mimesis and narrative art) and ethics. The more poetic the poems are the less suited are they to the ears of men. Artistically, the better the comedy is, the worst it is, since the more attractive and perfect the comedy is the more disastrous its effects are.For instance, Homer, in the â€Å"Iliad† tells us or narrates the story of cypresses, as he was himself a cypress. He tells the story as far as it makes the audience feel that not Homer is the speaker, but the priest, an old man. This manner of representation (impersonation), according to Plato, leads to the loss-of-self or transformation of identity and becomes a matter of moral destruction. Aristotle takes the same activity of impersonation in a different way.He praises Homer for not telling excessively in his own voice since, after a few words he immediately brings on stage a man or woman or some other characters that represent the action with larger perspective. As a conclusion, ‘mimesis’ has since the antiquity been discussed to refer to the relation between reality and representation. The nature of discussion upon the concept of ‘mimesis’ as a theory of art changes according to the person who discusses the term and the way he deals with the term.Auerbach, for instance, distinguishes the reality and ‘mimesis’ in literature with respect to the narrative techniques and argues that Homeric epic is not mimetic but realistic since; narration of the tales comprehends every detail and leaves no space for interpretation. Plato, on the other hand, agrees that reality cannot be represented; therefore, ‘mimesis’ is misrepresentation of truth. Aristotle becomes the defender of ‘mimesis’ against Plato and develops a theory of art with reference to ‘mimesis' and claims that art (mimetic art) is superior to philosophy and histpry.

Taxation Law Essay

1. The assessability or otherwise to Jino and Anna of the annual bonuses paid by Darling Bank to them. Consideration of the proximity of services or employment relationship, the importance of the donor’s motive and the status of gratuitous payments are relevant in determining whether the bonuses received are assessable income. We can determine that the bonuses satisfactorily fulfil the requirement that for the bonuses to be assessable they must â€Å"come in†. (tenant v smith) Natural incidents of employment will be income, because they arise from a service relationship and because they are an expected incident of the occupations. Kelly v DCT) Ultimately, it is the character of the payment in the hands of the recipient that is determinative (Scott) of income. The bonuses received by Jino and Anna were not mere gifts. The amount in Scott v FCT was a gift; it was gratuitous, not made in discharge of an obligation and not taken by the recipient as discharging an obligation and not income by ordinary concepts. The payments in Scott v FCT and Moore v Griffiths were ‘one-off’. The payments were in addition to entitlements under service agreements; the donor’s motive was to make a personal tribute and the payment was unexpected.While income generally exhibits recurrence, regularity and periodicity, it would be wrong to conclude they were necessary elements and that a ‘one-off’ payment in the nature of a ‘gift’ cannot be income. (demonstrated by Squatting Investment Co) In Moore v Griffiths, the bonus received was a testimonial or personal gift rather than a reward for services rendered by the taxpayer in the course of his employment. The payment had no foreseeable element of recurrence, and there was no knowledge or expectation on the taxpayer’s part that the payment would be made as a reward for rendering his services.A bonus payment is ordinary income for the purposes of subsection 6-5(2) of the ITAA 1997, which provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources, whether in or out of Australia, during the income year. The initial presumption, prima facie, a payment from taxpayer to recipient is not income (Hayes v FCT) may be displaced if in substance and reality the payment was a product of services.Ordinary income is typically regarded as including salary and wages and fees connected with employment or provision of services; the critical element being the connection with an earning activity. Amounts derived from employment or the provision of services are income. In FCT v Dixon, the amount taxpayer received was assessable because the receipts were of an income character, and the amount was an expected periodical payment arising out of circumstances, and also because it formed part of the receipts upon which he depended for regular expenditure.Similarly, the bonuses Jino and Anna received fulfille d 3 critical elements in FCT v Dixon; the payment was periodical, incidental to employment and relied upon for regular expenditure. In FCT v Harris, payments were unrelated to the length or quality of service, and were periodic yet unpredictable. Hence, they were unassessable as the critical elements in Dixon’s case were absent in Harris. In FCT v Kelly, the prize money the footballer received was held to be payments as income. Kelly was aware that the prize would be offered,S15-2 sets out that allowances and other things provided in respect of employment or services can be included in your assessable income. S15-2(1) states that â€Å"assessable income includes the value to you of all allowances, gratuities, compensation, benefits, bonuses and premiums provided†¦ in respect of†¦ any employment of or services rendered†. Hence, if the bonuses are consequently not considered ordinary income, it will still be regarded assessable under s15-2 as the amount that is assessable as ordinary income under s6-5 is not included in assessable income under s15-2(3).The key issue to consider is the ‘connection with earning activity’. It was for ‘work throughout the year’. The $100,000 bonuses can therefore be included in assessable income under s. 15-2 as a reward for personal exertion, even though the bonuses were unexpected and not relied upon by Jino and Anna (Moore). The bonuses were recurring, incidental to employment, of an ordinary kind. (Scott) There is direct nexus with employment; FCT v Cooke & Sherden is irrelevant because the holidays received did not represent income.There was no entitlement to alternative compensation if the holidays were not taken, and it was also not convertible into money. 2. Whether Jino and Anna are entitled to deductions for interest paid on the amount they redraw from their loan on the Darling Point property to partly finance their investment in the King Street property. ITAA97 S8. 1 (1) p rovides that you can deduct from your assessable income any loss or outgoing to the extent that â€Å"it is incurred in gaining or producing your assessable income†.Hence, Jino and Anna will be entitled to deductions for interest paid on the amount they redraw from their loan â€Å"to the extent† they are using it to finance their investment in the King Street property. Interest is characterised by the use of the funds; the fact that the original loan was for the Darling Point property is irrelevant. Consideration must be given to the redraw facility, that any fund used from the redraw is used to produce assessable income or for the business, and the interest on the portion of the fund will be deductible to that extent.In FCT v Munro, the deduction for interests were not permitted under s. 8-1 ITAA97. It was held that the â€Å"deductibility of interest depends on the purpose for which the principal is borrowed, a deduction in interest is not permitted when the borrow ed money is used for a purpose whereby no income is produced, even if the money is borrowed on the security of rent producing property†. The commissioner disallowed the taxpayer’s claim for deductions, on the basis that the borrowed moneys had not been applied exclusively to produce assessable income.The borrowed money had been applied for the benefit of the sons and hence interest was not incurred in gaining assessable income. Conversely, the purpose for which the principal amount of $400,000 Jino and Anna borrowed was for an investment in property that would produce rent. The fact that the Darling Point property was used as security for the loan as it was withdrawn from the ‘repayment redraw’ facility for residential property is irrelevant. Hence, Jino and Anna should be entitled to deductions for the 6% interest paid on the $100,000 withdrawal from the redraw facility.Steele v FCT considers whether there is sufficient nexus of residence with income produ ction; interest incurred before assessable income is derived is deductible if there is. It was established that the meaning of ‘assessable income’ in the first limb of s51(1) is summarised in Fletcher & Ors v FCT (1991) 173 CLR. Assessable income is to be â€Å"construed as an abstract phrase which refers not only to assessable income derived in that or in some other tax year but also to assessable income which the relevant outgoing ‘would be expected to produce’†¦Ã¢â‚¬ .The 6% interest withdrawn from their loan is incurred before assessable income is derived hence is deductible. 3. Appropriate tax treatment of the lump sum payout to Thomas from both Jino and Anna’s perspective and from Thomas’s perspective From Jino and Anna’s Perspective TR 2005/6 1. This Ruling explains the circumstances where it is considered that: (a) a lease surrender receipt is assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997); and (b) a lease surrender payment is deductible under section 8-1 of the ITAA 1997. . This Ruling also addresses the application of the provisions of the ITAA 1997 covering capital gains and capital losses (CGT). The first issue to consider is first considering the general deduction provision s8-1. Although the lump sum payout passes the 1st positive limb, based on Sun Newspaper Ltd v FCT, we can establish that the payout is not of revenue but of a capital nature. There are 3 matters to consider in determining whether the payout is on revenue or capital account. Footnote: pg 446 of casebook) Parallel to the features of transactions of the expenditure in Sun Newspaper, [1] (a) the payout was of a large sum intended to remove competition for Tony, (b) the payout was recurrent in the sense that the risk of a competitor arising must always be theoretically present, (c) the chief object of the †¦Ã¢â‚¬ ¦ Considering the general deduction provision s8-1, if the payout was reve nue, it would be deductible. However, the capital nature of the payout fails the negative non-capital requirement under s8-1.As Jino and Anna are not â€Å"carrying on a business of gaining or producing assessable income† (s8-1(b)) in leasing out the shop, it is still a capital gains tax and we must consider further provisions for specific deductions for capital expenditure. Jino and Anna were not obliged to lease the shop to receive rent because Thomas was already willing and happy to pay fixed rental of $3,500 per month for 5 years. Therefore, the $5000 is not deductible because it is not a loss, but rather a result of voluntary action. If it were a loss incurred, then the amount would be deductible.Second, for the lump sum payment to be deductible, the expense has to be related to producing assessable income. Herald and Weekly Times Ltd v FCT derives the notion ‘incurred’, as â€Å"the expenditure (legal fees) incurred by the taxpayer was wholly and exclusive ly expended in gaining or producing its assessable income and was therefore deductible under s23(1)(a). † Since the $5000 payment was to terminate Thomas’s lease and provide an opportunity for Jino and Anna to obtain $500 more in monthly rent, it can be seen as being incurred to gain assessable income from the new lessee Tony.Consequently, the expense of $5,000 is deducted by straight line method over five years. Thomas’s Perspective The amount paid to Thomas can either be capital in nature where â€Å"the lease formed part of the profit-yielding-structure of the lessee’s business† or it could be income which â€Å"arises in the course of business activity†. If the compensation payment lead to the cancellation of business leaving the profit-making structure permanently impaired, then it constitutes as a capital gain. Considering Heavy Minerals (1966) Californian Oil ProductsIn Van den Bergs Ltd v Clark (1935), the House of Lords held that â⠂¬Å"the sum received by the taxpayer†¦ on the termination of the arbitration and in consideration of the taxpayer’s consent to termination†¦ was a capital receipt and shouldn’t be taken into account in computing the taxpayer’s liability to tax. † 4. Appropriate tax treatment of the waiver of Tony’s first month’s rental from both Jino and Anna’s perspective and from Tony’s perspective Jino and Anna’s perspective No money involved – agreement Not meant to pay each other money. Tony didn’t pay out any rent and anna didn’t receive.No money exchanged therefore first month no assessable income as no exchange. For tony didn’t pay out any rent therefore no deduction Tony’s perspective Orica Reduction in expenditure can not be income according to ordinary concepts assessable under s25(1). There was no profit or gain made as a result of the taxpayer entering into arrangements which was à ¢â‚¬Ëœa singular transaction, not part of the regular means whereby the taxpayer obtained returns’. Lees & Leech Even if it was assumed the payment received by taxpayer constituted a profit or gain, the payment was not received by it in the ordinary course of carrying on its business.TR 93/6 1. This Ruling is concerned with those arrangements which are used to reduce the interest payable on a customer's loan account. These are commonly referred to as ‘interest offset arrangements' but are called ‘loan account offset arrangements' in this Ruling. These products are generally structured so that no interest is derived by the customer and therefore the customer is not liable to pay income tax in respect of the benefit arising from the account. This Ruling: †¢ outlines the manner in which acceptable loan account offset arrangements usually operate; and †¢ xplains the limits on acceptable arrangements. 5. The appropriate tax treatment of the early repayment pe nalty from both Jino and Anna’s perspective and from Tony’s perspective TR 93/7 A penalty interest payment is generally deductible under subsection 51(1) if: (a) the loan moneys were borrowed for the purpose of gaining or producing assessable income or for use in a business carried on for that purpose; and (b) the payment is made in order to rid the taxpayer of a recurring obligation to pay interest on the loan, where such interest would itself have been deductible if incurred.Where the repayment of loan moneys borrowed for the purpose of producing assessable income is secured by mortgage, penalty interest payable on an early repayment which effects a discharge of the mortgage will generally be deductible under section 67A. 5. Penalty interest is not expenditure incurred in borrowing money so as to be deductible under section 67. 6. Where penalty interest is paid upon repayment of a loan incidental to the disposal of an asset, the payment is not taken into account unde r Part IIIA of the ITAA in calculating the amount of any capital gain or capital loss arising on the disposal.Subsection 51(1) provides that: â€Å"all losses and outgoings to the extent to which they are incurred in gaining or producing the assessable income, or are necessarily incurred in carrying on a business for the purpose of gaining or producing such income, shall be allowable deductions except to the extent to which they are losses or outgoings of capital, or are of a capital, private or domestic nature, or are incurred in relation to the gaining or production of exempt income. 9. Generally speaking, provided loan moneys were borrowed for the purpose of gaining or producing assessable income or for use in a business carried on for that purpose, penalty interest payable on early repayment of the loan will, unless it is of a capital nature, qualify for deductibility under subsection 51(1). This will commonly involve borrowings used to acquire an income-producing asset or to p rovide working capital to operate a business. 10.In the case of such borrowings, the central issue is whether penalty interest payments are â€Å"losses or outgoings of capital, or of a capital†¦ nature†. If so, then they will not be deductible under subsection 51(1), but may be deductible under sections 67 or 67A. 11. We do not consider that so-called penalty interest is, in fact, in the nature of interest. This is so even if the loan agreement uses the term â€Å"penalty interest†. The description of an item used in any relevant agreement is not conclusive of its character (refer FC of T v. Sth. Aust.Battery Makers Pty. Ltd. (1978) 140 CLR 645 at 655; 78 ATC 4412 at 4417; 8 ATR 879 at 884 per Gibbs ACJ and Cliffs International Inc. v. FC of T (1979) 142 CLR 140 at 148; 79 ATC 4059 at 4064; 9 ATR 507 at 512 per Barwick CJ). To call a payment â€Å"interest† does not conclusively determine that it in fact answers that description. Nor does it prevent the pa yment from being an outgoing of a capital nature. 12. Interest is considered to be â€Å"compensation to the lender for being kept out of the use and enjoyment of the principal sum†: see FC of T v.The Myer Emporium Ltd. (1987) 163 CLR 199 at 218; 87 ATC 4363 at 4371; 18 ATR 693 at 702). Penalty interest is not paid for the use of the lender's money. It is paid in respect of a period when the borrower has repaid the loan and does not have the use of the money (refer R. W. Parsons, Income Taxation in Australia at para. 6. 330) 13. The critical factor in determining the essential character of an outgoing is the character of the advantage sought by the making of the expenditure ( Sun Newspapers Ltd. v. FC of T (1938) 61 CLR 337 at 363 per Dixon J).Whether an outgoing is capital or revenue in nature â€Å"depends on what the expenditure is calculated to effect from a practical and business point of view† ( Hallstroms Pty. Ltd. v. FC of T (1946) 72 CLR 634 at 648 per Dixon J ). 14. As a penalty interest payment is a cost directly attributable to obtaining early repayment of a loan, the question to be answered is effectively: â€Å"what, from a practical and business point of view, is the advantage sought from an early repayment of the loan? † This is a question of fact to be answered on a case by case basis. 5. Where the advantage sought is the release from the contractual obligation to incur a recurrent liability to pay interest on the loan, and such interest would itself have been deductible, then the penalty interest payment is on revenue account ( FC of T v. Marbray Nominees Pty. Ltd. 85 ATC 4750; (1987) 17 ATR 93, Metals Exploration Ltd. v. FC of T 86 ATC 4505; (1987) 17 ATR 786). Such a payment does display certain capital indicia in terms of the tests enunciated by Dixon J. in the Sun Newspapers case (supra); i. e. t is a once-and-for-all type lump sum which eliminates a threatened disadvantage and thus produces a benefit of a lasting char acter for the taxpayer. Nevertheless, where the initiating cause for early repayment of the loan is a saving in future interest outlays, the payment is essentially revenue in character. 16. On the other hand, where the penalty interest payment is paid effectively as a price to rid the taxpayer of a burdensome capital asset or is otherwise incidental to the realisation of an asset, then it will generally be on capital account. 17.Where repayment of a loan is secured by mortgage, penalty interest payable on early repayment may be deductible under section 67A. Section 67A provides a deduction for expenditure (excluding principal or interest payments) incurred in connection with the discharge of a mortgage securing repayment of moneys borrowed for the purpose of producing assessable income. Unlike subsection 51(1), deductibility is not affected by whether the expenditure is capital or revenue in nature. As previously discussed, so-called penalty interest is not, in fact, in the nature o f interest, and is therefore not excluded on his basis from deductibility under section 67A. 18. Borrowing expenses which are on capital account and for that reason not deductible under subsection 51(1) may qualify for deduction under section 67. However, penalty interest is not â€Å"expenditure incurred†¦ in borrowing money† for section 67 purposes. These words, in the context of section 67(1), refer to a â€Å"cost† of borrowing; i. e. expenditure incurred in relation to the actual establishment of the relevant loan. The liability to pay penalty interest is first incurred after the money is borrowed, and is therefore not incurred in borrowing the money.The payment is not made pursuant to a contractual obligation which was incurred at the time of borrowing as an incident of establishing the loan (refer Ure v. FC of T 81 ATC 4100; (1981) 11 ATR 484). 19. Where penalty interest is paid upon repayment of a loan incidental to the disposal of an asset, the payment is not taken into account for Part IIIA purposes in calculating the amount of any capital gain or capital loss arising on the disposal. The payment would not be included in the cost base of the asset under section 160ZH.In particular, it is not within the categories of â€Å"incidental costs† of acquisition or disposal in subsections 160ZH(5) or 160ZH(7), and, as it is not in the nature of â€Å"interest† (see paragraphs 11 and 12 above), is not a â€Å"non-capital cost† under subsection 160ZH(6A). 22. Anne obtains a loan from a financial institution to purchase a rental property. Within the term of the loan Anne decides to sell the property. This requires her to repay the loan in order to discharge a mortgage over the property which secures the loan. In paying out the loan early Anne incurs a penalty interest payment. 3. The repayment of the loan, and the associated incurrence of the penalty payment, is a necessary incident of the sale of the property. A payment so connected to the realisation of a capital asset will be on capital account. The payment is therefore not deductible under subsection 51(1). The payment will, however, qualify for deductibility under section 67A as expenditure incurred in discharging a mortgage. 6. The CGT effects for Jino and Anna of the sales of the Darling Point apartment and of the King Street Property ———————–

Pakistan Cement Industry

Compiled by: Mirza Rohail B http://economicpakistan. wordpress. com/2008/02/12/cement-industry/ History & Introduction Growth of cement industry is rightly considered a barometer for economic activity. In 1947, Pakistan had inherited 4 cement plants with a total capacity of 0. 5 million tons. Some expansion took place in 1956-66 but could not keep pace with the economic development and the country had to resort to imports of cement in 1976-77 and continued to do so till 1994-95. The industry was privatized in 1990 which led to setting up of new plants. Although an oligopoly market, there exists fierce competition between members of the cartel today. The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the installed production capacity of 44. 09 million tons. The north with installed production capacity of 35. 18 million tons (80 percent) while the south with installed production capacity of 8. 89 million tons (20 percent), compete for the domestic market of over 19 million tons. There are four foreign companies, three armed forces companies and 16 private companies listed in the stock exchanges. The industry is divided into two broad regions, the northern region and the southern region. The northern region has around 80 percent share in total cement dispatches while the units based in the southern region contributes 20 percent to the annual cement sales. Cement industry is indeed a highly important segment of industrial sector that plays a pivotal role in the socio-economic development. Since cement is a specialized product, requiring sophisticated infrastructure and production location. Mostly of the cement industries in Pakistan are located near/within mountainous regions that are rich in clay, iron and mineral capacity. Cement industries in Pakistan are currently operating at their maximum capacity due to the boom in commercial and industrial construction within Pakistan. The cement sector is contributing above Rs 30 billion to the national exchequer in the form of taxes. Cement industry is also serving the nation by providing job opportunities and presently more than 150,000 persons are employed directly or indirectly by the industry. The industry had exported 7. 716 million tons cement during the year 2007-08 and had earned $450 million, while is expected to export 11. 0 million tons of cement during 2008-09 and earn approximately $700 million. Fiscal Performance 2008-09 Business Recorder reported that Pakistan’s cement exports witnessed a healthy growth of 65%, to over 6 million tons during 7 months of the current fiscal year mainly due to rise in international demand. The exports may reach to 11 million tonnes and earn approx $ 700 million during 2008-09. The statistics of All Pakistan Ce ment Manufacturers Association also showed that cement exports had mounted to over 6 million tons in 7 months as compared to 3. 2 million tons of same period of last fiscal year, depicting an increase of 2. 38 million tons. Cement exports during January 2009 went up by 30% to 0. 81 million tons as compared to 0. 623 million tons in January 2008. However, slow construction activities in the country during the period badly upset domestic sale of cement, which depicted decline of 15%, to 10. 77 million tons as compared to 12. 59 million tons of last fiscal year. On MoM basis, local dispatches of cement during January 2009 showed a decline of 8%, to 1. 51 million tons from 1. 65 million tons of January 2008. Overall dispatches, including export and local sales, reached 16. 77 million tons during July to January of 2008-09 as against 16. 20 million tons of last fiscal year, depicting an increase of 3%. By September 2009, after witnessing substantial growth in all three quarters of fiscal year (FY) 2008-09, cement sector concluded the fourth quarter with a handsome growth of 1,492 percent on yearly basis, All Pakistan Cement Manufacturers Association’s report revealed on 29th September 2009. Higher retention prices (up 59 percent) and high rupee based export sales amid rupee depreciation (20 percent) drove profits up north. However, this growth is magnified, as FY2007-08 was an abnormally low profit period for the sector. Moreover, the performance is skewed towards large players with export potential as profitable companies in both years posted increase of just 109 percent, said analyst at JS Research Atif Zafar. He said that cumulative profitability of companies in FY09 stood at Rs 6. 2 billion or $78. 2 million as compared to Rs 386 million or $6. 2 million depicting a massive growth of 1,492 percent. Companies with profits in both the years posted 109 percent earnings improvement. Though total dispatches were down 2 percent, net sales grew by 55 percent to Rs 101. 4 billion or $1. 3 billion on the back of higher net retention prices (up 59 percent) and improved export based revenues. Cost of sales/tonne also rose by 33 percent on yearly basis amid higher realised coal prices and inflationary pressures, the analyst maintained. Production Capacity In Pakistan, there are 29 cement manufacturers that are playing a vital role in the building up the country’s economy and contribution towards growth and prosperity. After 2002-3, most of the cement manufacturers expanded their operations, and increased production. This sector has invested about $1. 5 billion in capacity expansion over the last six years. The operating capacity of cement in 1991 was 7 million tons, which increased to become 18 million tons by 2005-06 and by end of 2007 rose to above 37 million tones, and currently the production cpapacity is 44. 07 million tonnes. Cement production capacity in the north is 35. 18 million tons (80 percent) while in the south it is only 8. 89 million tons (20 percent). The cement manufacturers in 2007-08 added above eight million tons to the capacity and the total production was expected to exceed 45 million tons by the end of 2010. It may result in a supply glut of seven million tons in 2009 and 2010. Actual Cement Production (in million tons) According to Government Board of Investment, 2001-02 – 9. 83 2002-03 – 10. 85 2003-04 – 12. 86 2004-05 – 16. 09 2005-06 – 18. 48 2006-07 – 22. 73 2007-08 – 26. 75 2008-09 – 20. 28 Exports & International Markets The cement industry of Pakistan entered the export markets a few years back, and has established its reputation as a good quality product. Deregulation after accession of Pakistan to WTO is expected to open the window of competition from cheaper markets. The recent acquisition of Chakwal Cement by an Egyptian giant, Orascom may be a beginning of such an entry in Pakistan by multinationals. New avenues for export of cement are opening up for the indigenous industry as Sri Lanka has recently shown interest to import 30,000 tons cement from Pakistan every month. If the industry is able to avail the opportunity offered, it may secure a significant share of Sri Lanka market by supplying 360,000 tons of cement annually. In 2007, 130,000 tons cement was exported to India. In 2007, the exports to Afghanistan, UAE and Iraq touched 2. 13 million tons. At present, the economies of major countries are facing recession, but Pakistan’s cement sector is still maintaining a healthy growth. Cement export to India has already slowed after imposition of duty by Indian authorities. Pricing Another problem faced earlier by the Industry was the high taxation. The general sales tax (GST) was 186% higher than India. The impact of this tax and duty structure resulted in almost 40% increase in the cost of a cement bag (50 Kg). A bag in India earlier cost Rs. 160 as compared to Rs. 220 in Pakistan. In the budget of 2003-04, a duty cut of 25% was permitted to the cement sector with assurance from the cartel to pass on this benefit to the consumers. In 2006, the price of a bag went up to Rs. 430 however in 2007 it has stabilized at Rs. 315 per bag. In mid 2008, cement prices stabilized further at Rs. 220 per bag. The Government has reduced central excise duty (CED) on cement in the budget for 2007-08 in order to boost construction activity. Average industry cost of cement bag/50Kg = Rs. 193 Average industry price of cement bag/50Kg = Rs. 235 Domestic Demand Local demand in the country for the year 2008-09 is expected to be around 20 million tons. Domestic demand is expected to grow at 13% Capacity growth rate (CAGR) during next five years. Certain factors will also affect the growth of cement industry as well. These are as follows: Strong GDP growth O Higher GDP growth has positive impact on cement demand. O Cement demand growth rate was double the GDP growth rate in last three years. Housing sector growth O Housing projects consume roughly 40% of cement demand. O Low interest rates, post 9/11 remittances’ inflow, and real estate boom have helped housing sector growth. Government Development Expenditures O Government development expenditures count for one third of total cement consumption. O Increase in PSDP – from Rs. 80 bn in 1999 to Rs. 520 bn in 2007. O Infrastructure development in a region triggers private development projects having even positive impact on cement demand. Earthquake Rehabilitation O Earthquake losses of October 8th are estimated at $ 5. 2bn O Reconstruction work will boost construction material demand O Reconstruction work is expected to generate cement demand of 4mn tons over next 3-4 years Announcement of large Dams O Construction of four large dams will generate demand of 3. 7mn tons. Bhasha Daimer Dam, Munda Dam, Akhori Dam and Neelum Jhelum. Per Capita Cement Consumption Pakistan currently has a per capita consumption of 131kg of cement, which is comparable to that for India at 135kg per capita but substantially below the World Average 270kg and the regional average of over 400kg for peers in Asia and over 600kg in the Middle East. Cement demand remained stagnated during 90’s owing to lack of development activities. In 1997, per capita consumption was 73 kg in both Pakistan and India. By 2005-06, consumption in India rose to become 115 kg/capita whereas ours rose to 117 kg/capita. A comparison of few countries in 2005: Bangladesh 50 kg/capita Pakistan 117 kg/capita India 115 kg/capita USA 375 kg/capita Iran 470 kg/capita Malaysia 530 kg/capita EU 560 kg/capita China 625 kg/capita UAE 1095 kg/capita Challenges to Cement Industry The cost and exports may be affected due to weakness of the US dollar causing coal, electricity charges and freight prices, comprising 65 to 70 percent of the cost. The PSDP allocation for 2009 has been cut by Rs 75 billion and feared further cuts would curtail cement demand. Major capacities of countries like India and Iran are expected to come online by FY10 and onwards which are likely to convert these countries from dependent importers to potential exporters. Moreover, this current rising trend is expected to be short-lived due to higher interest rates and inflationary concerns are likely to make it disadvantageous for investors to enter the construction industry. In addition to this, to control real estate prices the government is considering imposing a tax on it. Major General Rehmat Khan, Chairman of All Pakistan Cement Manufacturers Association (APCMA), told Business Recorder, â€Å"cement industry is getting Rs 24 per ton as day dutydrawback for export of cement which needs to be revised. In view of today’s calculation for duty drawback, which works out to Rs 130 per ton, he proposed that duty drawback be increased to Rs 130 per ton ,instead of Rs 24 per ton. † Referring to taxation on cement, he said that cement dispatches are subject to payment of federal excise duty @ Rs 900 per ton, general sales tax @ 16 percent, special excise duty @ 1 percent, marking fee @ 0. 1 percent of ex-factory price, besides provincial duties and taxes. These taxes come to around Rs 96 per bag which is the highest in the world. Cement, it appears, is being treated as a luxury item for the purpose of taxes and duties. He proposed that the government should reduce excise duty by Rs 450 per ton in the forthcoming budget while the remaining half should be eliminated altogether along with the special excise duty. Besides this, sales tax should not be charged on excise duty paid value. He also proposed withdrawal of customs duty on Pet Coke and remove it from negative list for import from India because cement industry imports Coal and Pet Coke as fuel for production and customs duty on imported coal is zero while on Pet Coke it is charged @ 5 percent. (c) ECONOMIC PAKISTAN