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Thursday, April 18, 2019

Economy of Asia (partial)

From Wikipedia, the free encyclopedia

Economy of Asia
Statistics
Population4.5 billion (60% of the world)
GDP$28.23 trillion (Nominal; 2017)
$56.62 trillion (PPP; 2017)
GDP growth
5.7% (2017)
GDP per capita
$6,690 (2017; 5th)
5.12 million (2016)
Unemployment3.8% (2010 est.)
Most numbers are from the International Monetary Fund.

All values, unless otherwise stated, are in US dollars.

The economy of Asia comprises more than 4.5 billion people (60% of the world population) living in 49 different nation states. Six further states lie partly in Asia, but are considered to belong to another region economically and politically. Asia is the fastest growing economic region, as well as the largest continental economy by both GDP Nominal and PPP in the world. China, Japan, India, South Korea and Indonesia are currently the top five economies in Asia. Moreover, Asia is the site of some of the world's longest modern economic booms, starting from the Japanese economic miracle (1950–1990), Miracle on the Han River (1961–1996) in South Korea, economic boom (1978–2013) in China and economic boom in India (1991–present).

As in all world regions, the wealth of Asia differs widely between, and within, states. This is due to its vast size, meaning a huge range of different cultures, environments, historical ties and government systems. The largest economies in Asia in terms of PPP gross domestic product (GDP) are China, India, Japan, South Korea, Indonesia, Turkey, Iran, Saudi Arabia, Taiwan, Thailand, Pakistan, Philippines, Malaysia and Bangladesh and in terms of nominal gross domestic product (GDP) are China, Japan, India, South Korea, Indonesia, Philippines, Turkey, Thailand, Taiwan, United Arab Emirates , Iran, Malaysia, Singapore, and Bangladesh

Wealth (if measured by GDP per capita) is mostly concentrated in the East Asia in Japan, South Korea, Taiwan, Hong Kong, Macau, Singapore, and Brunei, as well as in oil rich countries in West Asia such as Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman. Israel and, to a lesser extent Turkey are exceptions: both lie in the territory of Asia despite not often being counted as such. Israel (entrepreneurship on diversified industries) is a developed country, while Turkey (founding member of OECD) is an advanced emerging country. Asia, with the exception of Japan (heavy industry and electrical sophistication), South Korea (heavy industry and information and communication technology), Taiwan (light industry and hi-tech parts manufacturing), Hong Kong (financial industry and services) and Singapore (high-tech manufacturing, biotechnology, financial and business services, and tourism governed by Casino Regulatory Authority of Singapore) in recent years, is currently undergoing rapid growth and industrialization, and China (manufacturing and FDI-led growth) and India (commodities, outsourcing destination and computer software), the two fastest growing major economies in the world. 

East Asian and Southeast Asian countries generally rely on manufacturing and trade (and then gradually upgrade to industry and commerce), and incrementally building on high-tech industry and financial industry for growth, countries in the Middle East depend more on engineering to overcome climate difficulties for economic growth and the production of commodities, principally Sweet crude oil. Over the years, with rapid economic growth and large trade surplus with the rest of the world, Asia has accumulated over US$4 trillion of foreign exchange reserves – more than half of the world's total, and adding tertiary and quaternary sectors to expand in the share of Asia's economy.

Economic development

Ancient and medieval times

China and India alternated in being the largest economies in the world from 1 to 1800 AD. China was a major economic power and attracted many to the east, and for many the legendary wealth and prosperity of the ancient culture of India personified Asia, attracting European commerce, exploration and colonialism. The accidental discovery of America by Columbus in search for India demonstrates this deep fascination. The Silk Road became the main East-West trading route in the Asian hitherland while the Straits of Malacca stood as a major sea route.

Pre–1945

Prior to World War II, most of Asia was under colonial rule. Only relatively few states managed to remain independent in the face of constant pressure exerted by European power. Such examples are China, Siam and Japan.

Japan in particular managed to develop its economy due to a reformation in the 19th century. The reformation was comprehensive and is today known as the Meiji Restoration. The Japanese economy continued to grow well into the 20th century and its economic growth created various shortages of resources essential to economic growth. As a result, the Japanese expansion began with a great part of Korea and China annexed, thus allowing the Japanese to secure strategic resources.

At the same time, Southeast Asia was prospering due to trade and the introduction of various new technologies of that time. The volume of trade continued to increase with the opening of the Suez Canal in the 1860s. Manila had its Manila galleon wherein products from the Philippine islands and China were traded with Spanish America and Europe from 1571 to 1815. The Spanish colony of the Philippines was the first Asian territory to trade with the Americas, from Manila to Acapulco. The route continued overland across present-day Mexico to Veracruz on the Atlantic coast, then to Havana and Seville, forming the first global trade route. Silk, porcelain, ivory, tobacco, coconut and corn were some of the goods exported from Asia to the Americas and Europe, through the Philippines. 

Singapore, founded in 1819, rose to prominence as trade between the east and the west increased at an incredible rate. The British colony of Malaya, now part of Malaysia, was the world's largest producer of tin and rubber. The Dutch East Indies, now Indonesia, on the other hand, was known for its spices production. Both the British and the Dutch created their own trading companies to manage their trade flow in Asia. The British created the British East India Company while the Dutch formed Dutch East India Company. Both companies maintained trade monopolies of their respective colonies.

In 1908, crude oil was first discovered in Persia, modern day Iran. Afterwards, many oil fields were discovered and it was learnt later that the Middle East possesses the world's largest oil stocks. This made the rulers of the Arab nations very rich though the socioeconomic development in that region lagged behind.

In the early 1930s, the world underwent a global economic depression, today known as the Great Depression. Asia was not spared, and suffered the same pain as Europe and the United States. The volume of trade decreased dramatically all around Asia and indeed the world. With falling demand, prices of various goods starting to fall and further impoverished locals and foreigners alike. In 1931 Japan invaded Manchuria and subsequently the rest of China and south-east Asia in what eventually became the Asia-pacific leg of World War II.

1945–1990

Following World War II, the People's Republic of China and India, which account for half of the population of Asia, adopted socialist policies to promote their domestic economy. These policies limited the economic growth of the region. They are being abandoned in India and reformed in China. In contrast, the economies of Japan and the Four Asian Tigers (South Korea, Taiwan, Singapore and Hong Kong) were economic successes, and the only successful economies outside of the Western World. The success of these four economies led other Southeast Asian countries, namely Indonesia, Malaysia, Philippines, and Thailand to follow suit in opening up their economies and setting up export-oriented manufacturing bases that boosted their growth throughout the 1980s and the 1990s.

One of the most pronounced Asian economic phenomenons during this time, the Japanese post-war economic miracle, greatly impacted the rest of the world. After World War II, under central guidance from the Japanese government, the entire economy was undergoing a remarkable restructuring. Close cooperation between the government, corporations and banks facilitated easy access to much-needed capital, and large conglomerates known as keiretsu spurred horizontal and vertical integration across all industries, keeping out foreign competition. These policies, in addition to an abandonment of military spending, worked phenomenally well. Japanese corporations as a result exported and still export massive amounts of high quality products from "the Land of the Rising Sun".

Another amazing economic success story is that of South Korea's, also referred to as the Miracle on the Han River. The country was left impoverished after the Korean War, and until the early 1970s was among the world's poorest countries (even poorer than North Korea). However, it was since able to recover with double digit annual growth rates. Many conglomerates, also known as chaebols, such as Samsung, LG Corp, Hyundai, Kia, SK Group, and more grew tremendously during this period. South Korea has now become the most wired country in the world.

Taiwan and Hong Kong experienced rapid growth up till the 1990s. Taiwan became, and still remains one of the main centers of consumer electronics R&D as well as manufacturing. However, unlike in Japan and South Korea, the bulk of Taiwan's economy is dependent on small to medium-sized businesses. Hong Kong, on the other hand, experienced rapid growth in the financial sector due to liberal market policies, with many financial institutions setting up their Asian headquarters in Hong Kong. Till today, Hong Kong has been ranked as the world's freest economy for many years running, and it remains among one of the world's top 5 leading financial centers.

In Southeast Asia, economic development was fueled by the growth of the bamboo network. The bamboo network refers to a network of overseas Chinese businesses operating in the markets of Southeast Asia that share common family and cultural ties. The network expanded as Chinese refugees emigrated to Southeast Asia following the Chinese Communist Revolution in 1949. Singapore in particular experienced very rapid economic growth after declaring independence in 1965, following a two-year federation with Malaysia. In addition to creating a conducive economic and political climate, the government developed the skills of its multi-racial workforce, and established export-oriented industries by encouraging foreign investors to set up regional operations in manufacturing. The government also played a prominent role in Singapore's growth as a major financial and business services centre. Singapore is today one of the richest countries in the world, both in terms of GNI per capita, and GDP (PPP) per capita

This period was also marked by military conflict. Wars driven by the Cold War, notably in Vietnam and Afghanistan, wrecked the economies of these respective nations. When the Soviet Union collapsed in 1990–91, many Central Asian states were cut free and were forced to adapt to pressure for democratic and economic change. Also, several of the USSR's allies lost valuable aid and funding.

1991–2007

The Chinese economy boomed under the economic measures undertaken by Deng Xiaoping, in the late 1970s, and continuing under Jiang Zemin and Hu Jintao in the 1990s and 2000s. After the liberalization of the economy of India, growth in India and China increasingly shifted the center of gravity of the global economy towards Asia. By the late 2000s, China's economic growth rate exceeded 11% while India's growth rate increased to around 9%. One of the factors was the sheer size of the population in this region.

Meanwhile, South Korea, Taiwan, Hong Kong and Singapore emerged as the Four Asian Tigers with their GDPs growing well above 7% per year in the 1980s and the 1990s. Their economies were mainly driven by growing exports. The Philippines only began to open up its stagnated economy in the early 1990s. Vietnam's economy began to grow in 1995, shortly after the United States and Vietnam restored economic and political ties.

Throughout the 1990s, the manufacturing ability and cheap labor markets in Asian developing nations allowed companies to establish themselves in many of the industries previously dominated by companies from developed nations. By the dawn of the 21st century, Asia became the world's largest continental source of automobiles, machinery, audio equipment and other electronics.

At the end of 1997, Thailand was hit by currency speculators, and the value of the Baht along with its annual growth rate fell dramatically. Soon after, the crisis spread to the ASEAN region, South Korea and other countries in Asia, resulting in great economic damage on the affected countries (but with Japan and China both largely escaping the crisis). In fact, some of the economies, most notably those of Thailand, Indonesia, and South Korea actually contracted. By 1999, most countries had already recovered from the crisis. In 2001, almost all economies in both Europe and Asia were adversely affected by the September 11 attacks, with Indonesia and Japan was hardest. Both continents quickly recovered from the attacks in United States after more than a year.

In 2004, parts of Sumatra and South Asia were severely damaged by an earthquake and the subsequent tsunami. The tsunami wreaked havoc, causing massive damage in the infrastructure of the hit areas, particularly Indonesia, and displaced millions. For a short time, GDP contracted among nations such as Indonesia and Sri Lanka, despite massive inflow of foreign aid in the aftermath of the disaster.

Japan suffered its worst post-World War II economic stagnation set in the early 1990s (which coincided with the end of Cold War), which was triggered by the latter event of Asian financial crisis in 1997. It, however, rebounded strongly in the early 2000s due to strong growth in exports, although unable to counteract China in 2005 after China gradually surpassed it as the largest economy in Asia.

2008–present

In 2008, the Global Financial Crisis, triggered by the housing bubble in the United States, caused a significant decline in the GDP of the majority of the European economies. In contrast, most Asian economies experienced a temporary slowdown in their rates of economic growth, particularly Japan, Taiwan,South Korea, and China, resuming their normal growth soon after.

The Arab Spring since 2011 had caused economic malaise in Syria, Lebanon and Yemen, amongst the most adversely affected nations in the Middle East. At the same time, in the early 2010s, Iraq, Saudi Arabia, the United Arab Emirates and Kuwait registered high GDP growths in the years that followed due to increased oil prices and further diversification of exports, as well as rising Foreign exchange reserves.

In 2013, in a once-in-a-decade party leadership reshuffle in China (change of Hu-Wen Administration to Xi-Li Administration), the Chinese economy experienced a significant slowdown in the GDP growth, slowing down from the unprecedented decades of 9–10% annual growth to around 7–8%, which has significant effect in some developing economies, particularly in Southeast Asia and India

The Philippines, however, managed to grow at rates at par with China in the period 2012–2013, and became Asia's fastest-growing economy beginning 2014. It also recovered after getting hit by Typhoon Haiyan, the strongest storm on record to make landfall, in November 2013, which killed at least 5,200 and displacing millions more.

On September 29, 2013, China opened the Shanghai Free-Trade Zone. This free trade zone allows international trade to be conducted with fewer restrictions and lower customs duties. The zone is tax free for the first ten years to encourage foreign direct investment (FDI) with a 'negative list' used to regulate in which fields foreign investments are prohibited.

Future

Asia's large economic disparities are a source of major continuing tension in the region. While global economic powers China, Japan, India, continue powering through, and Indonesia, Malaysia, Philippines, Thailand, Vietnam, Bangladesh and Sri Lanka have entered the path to long-term growth, regions right next to these countries are in severe need of assistance.

Given the enormous quantity of cheap labor in the region, particularly in China and India, where large workforces provide an economic advantage over other countries, the rising standard of living will eventually lead to a slow-down. Asia is also riddled with political problems that threaten not just the economies, but the general stability of the region and world. The nuclear neighbors—Pakistan and India—constantly pose a threat to each other, causing their governments to invest heavily in military spending.

Yet another potential global danger posed by the economy of Asia is the growing accumulation of foreign exchange reserves. The countries/regions with the largest foreign reserves are mostly in Asia – China (Mainland – $2,454 billion & Hong Kong – $245 billion, June 2010), Japan ($1,019 billion, June 2009), Russia ($456 billion, April 2010), India ($400 billion, October 2017), Taiwan ($372 billion, September 2010), South Korea ($286 billion, July 2010), and Singapore ($206 billion, July 2010). This increasingly means that the interchangeability of the Euro, USD, and GBP are heavily influenced by Asian central banks. Some economists in the western countries see this as a bad thing, prompting their respective governments to take action.

According to the World Bank, China surpassed the United States and the European Union to become the world's largest economy by early 2015, followed by India. Both countries are expected to rank in the same positions between 2020 and 2040. Moreover, based on Hurun Report, for the first time in 2012 Asia surpassed North America in amount of billionaires. More than 40 percent or 608 billionaires came from Asia, where as North America had 440 billionaires and Europe with 324 billionaires.

Regional variation

Recent reforms in China

Hong Kong Exchange Trade Lobby 2005
 
Following a Third Plenum of the Central Committee of the Communist Party of China in 2013 China revealed plans for several sweeping social and economic reforms. The government would relax its one-child policy to allow single-child parents to have two kids. This reform was implemented as a response to the aging population of China and provide more labor. The government also reformed the hukou system, allowing the labor force to become more mobile.

The reforms will make financial loan systems more flexible encouraging increased economic involvement of private firms. Additionally, state-owned enterprises will be required to pay higher dividends to the government. The benefits of this will go to Social Security. Reform also allows farmers to own land for the first time ideally encouraging farmers to sell their land and move to cities which will boost consumerism and increase urban work force.

On April 10, 2014, China Securities Regulatory Commission (CSRC) and Securities and Futures Commission (CSRC) made a Joint Announcement about the approval for the establishment of mutual stock market access between Mainland China and Hong Kong. Under the ‘Connect Program’, the Stock Exchange of Hong Kong Limited and Shanghai Stock Exchange will establish mutual order-routing connectivity and related technical infrastructure to enable investors to invest in Chinese equities market directly. On November 17, 2014, the program officially launched with the approvals from Beijing.

The 'Connect Program' is a groundbreaking initiative with significance to both Hong Kong and Mainland. It brings another opportunity for the growth of the Hong Kong securities market. More importantly, it provides, for the first time, a feasible, controllable and expandable channel to investors to invest in both Hong Kong and Mainland, in addition to current schemes including QDII, QFII, AND RDFII programs.

The Shanghai-Hong Kong Connect Program is open to all market participants, but those must satisfy all requirements prescribed by the exchange and regulators. The design of the program will ensure a minimal change of regulatory structure in each market as well as the ability to expand to other markets or other asset classes in the future.

Local government's spending plays a critical role in China's fiscal system. Following the 1991 intergovernmental fiscal reform, the central government's share of total fiscal revenue increase from less than 30 percent to around 50 percent in 2012. Local governments are now responsible for infrastructure investment, service delivery and social spending, which together account for about 85 percent of the total expenditure. Without a rule to guide the distribution of intergovernmental expenditure responsibilities, significant levels of risk would be associated with the spending.

China's central administration will impose hard caps on local government borrowing in order to control financial risks from an explosive level. Statistics showed that total debt had reached $3 trillion by the middle of 2013, raising total government debt to 58 percent of GDP. Similar jump occurred in corporate debt as well, which pushed China's overall debt-GDP ratio up to 261% from 148% in 2008. IMF warned that rapid debt run-ups could lead to financial crisis.

The new rules are expected to be combined with broader fiscal reforms aimed at bringing local government tax revenue in line with expenditure. The central government will provide more guidance to local governments in terms of how to manage and invest wisely.

As of 2017, China boasts the world's second largest economy by nominal GDP at a staggering $11.8 trillion. It has the largest manufacturing economy in the world, and is the largest exporter of goods. China is also the world's largest producer and consumer of agricultural products. Unsurprisingly, China produces the most rice in the world, and is a key producer of wheat, corn, tobacco, soybeans, and potatoes, among others. The real estate industry in China has been a controversial subject, but, since 2010, China has had the largest real estate market in the world. Despite China's focus on manufacturing, in the last two decades, China's service sector has doubled in size, accounting for 46% of China's total GDP. In 2011, the Chinese government instituted a five-year plan to prioritize the development of the service economy. The telecommunications sub-sector in China is the largest in the world, with over a billion mobile customers. Tencent, the developer of WeChat, is dominating Chinese mobile culture unlike anything in history has. In 2015, China contributed a third of global GDP growth. China's influence in the global economy is a force to be reckoned with, and, as more and more Chinese citizens are becoming bigger consumers, it would be no surprise if this continues for the foreseeable future.

Economic liberalisation in India

The economic liberalisation in India refers to the ongoing economic liberalisation, initiated in 1991, of the country's economic policies, with the goal of making the economy more market-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalisation has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. The overall direction of liberalisation has since remained the same, irrespective of the ruling party, although no party has yet solved a variety of politically difficult issues, such as liberalising labour laws and reducing agricultural subsidies. There exists a lively debate in India as to what made the economic reforms sustainable.

The Economy of India is the sixth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). The country is classified as a newly industrialized country, one of the G-20 major economies, a member of BRICS and a developing economy with an average growth rate of approximately 7% over the last two decades. Maharashtra is the richest Indian state and has an annual GDP of US$320 billion, nearly equal to that of Pakistan or Portugal, and accounts for 12% of the Indian GDP followed by the states of Tamil Nadu and Uttar Pradesh. India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China.

The long-term growth prospective of the Indian economy is highly positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. The Indian economy has the potential to become the world's 3rd-largest economy by the next decade, and one of the largest economies by mid-century. And the outlook for short-term growth is also good as according to the IMF, the Indian economy is the "bright spot" in the global landscape. India also topped the World Bank’s growth outlook for 2015–16 for the first time with the economy having grown 7.3% in 2014–15 and expected to grow 7.5–8.3% in 2015-16.

India has the one of fastest growing service sectors in the world with annual growth rate of above 9% since 2001, which contributed to 57% of GDP in 2012–13. India has capitalized its economy based on its large educated English-speaking population to become a major exporter of IT services, BPO services, and software services with $174.7 billion worth of service exports in 2017–18. It is also the fastest-growing part of the economy. The IT industry continues to be the largest private sector employer in India. India is also the fourth largest start-up hub in the world with over 3,100 technology start-ups in 2014–15 The agricultural sector is the largest employer in India's economy but contributes to a declining share of its GDP (17% in 2013–14). India ranks second worldwide in farm output. The Industry sector has held a constant share of its economic contribution (26% of GDP in 2013–14). The Indian auto mobile industry is one of the largest in the world with an annual production of 21.48 million vehicles (mostly two and three wheelers) in FY 2013–14. India has $600 billion worth of retail market in 2015 and one of world's fastest growing E-Commerce markets.

India's two major stock exchanges, Bombay Stock Exchange and National Stock Exchange of India, had a market capitalization of US$1.71 trillion and US$1.68 trillion respectively as of Feb 2015, which ranks 11th & 12 largest in the world respectively according to the World Federation of Exchanges. India also home to world's third largest Billionaires pool with 97 billionaires in 2014 and fourth largest number of ultra-high-net-worth households that have more than 100 million dollars.


Successive Indian governments have been advised to continue liberalisation. Even though, in early years India grew at slower pace than China (however, since 2013 India has been growing faster than its northern counterpart in terms of percentage of GDP growth, although it should be noted that China's absolute growth still exceeds India by a large margin). The McKinsey Quarterly states that removing main obstacles "would free India's economy to grow at 10% a year". 

There has been significant debate, however, around liberalisation as an inclusive economic growth strategy. Since 1992, income inequality has deepened in India with consumption among the poorest staying stable while the wealthiest generate consumption growth. As India's gross domestic product (GDP) growth rate became lowest in 2012–13 over a decade, growing merely at 5.1%, more criticism of India's economic reforms surfaced, as it apparently failed to address employment growth, nutritional values in terms of food intake in calories, and also exports growth – and thereby leading to a worsening level of current account deficit compared to the prior to the reform period. But then in FY 2013–14 the growth rebounded to 6.9% and then in 2014–15 it rose to 7.3% as a result of the reforms put by the New Government which led to the economy becoming healthy again and the current account deficit coming in control. Growth reached 7.5% in the Jan–Mar quarter of 2015 before slowing to 7.0% in Apr–Jun quarter.

By 2050, India's economy is expected to overtake the US economy, putting it behind China in the world's largest economies. Like China, agriculture makes up a large part of the Indian economy. As the Indian economy has grown, agriculture's contribution to GDP has steadily declined, but it still makes up a large portion of the workforce and socio-economic development. India's industrial manufacturing GDP output was the 6th largest in the world in 2015, largely due to petroleum products and chemicals. India's pharmaceutical industry has also grown at a compound annual growth rate of 17.5% over the last 11 years, and is one of India's fastest-growing sub-sectors today. However, the engineering industry in India is still the largest sub-sector by GDP. Perhaps the most exciting development in India is its incredibly fast-growing information technology and business process outsourcing sub-sector. Cities like Bangalore, Hyderabad rival the United States's Silicon Valley in innovation and technological advancement as more and more skilled, tech-savvy students and young professionals are entering the entrepreneurial world.

Abenomics in Japan

Abenomics is a policy named after, and implemented by the Japanese Prime Minister Shinzō Abe. Following the global economic recession, the Prime Minister hoped to boost Japanese economy with "three arrows": massive fiscal stimulus, more aggressive monetary easing and structural reforms to make Japan more competitive. The stimulus package was 20.2 trillion yen ($210 billion) and the government also aimed to create 600,000 jobs in two years. In addition, this stimulus package aimed to ensure public safety with reconstruction efforts, creating a base for future business growth, and revitalizing regions by promoting tourism, revitalizing public transport, and improving infrastructure. 

The Bank of Japan also aimed to raise inflation to 2% in part by buying up short-term government debts. Critics point out that hyperinflation and an unbalanced GDP/debt ration could be negative results of Abenomics. Furthermore, currency changes could aggravate international relations, especially those between China and Japan.

Trade blocs

Association of Southeast Asian Nations

The Association of Southeast Asian Nations (ASEAN) is a political, economic, security, military, educational and socio-cultural organization of countries located in Southeast Asia. Founded in 1967, its aim is to foster cooperation and mutual assistance among members. The countries meet annually every November in summits. The organisation serves as a central platform for cooperation and unity in Asia, its affiliates created several trade blocs in the region, including Regional Comprehensive Economic Partnership, the world's largest trade bloc.

The current member countries of ASEAN are Myanmar (Burma), Laos, Thailand, Cambodia, Vietnam, Philippines, Malaysia, Brunei Darussalam, Singapore and Indonesia. East Timor and Papua New Guinea are given observer status.

In 2005, ASEAN was instrumental in establishing the East Asia Summit (involving all ASEAN members plus China, Japan, South Korea, India, Australia and New Zealand) which some have proposed may become in the future a trade bloc, the arrangements for which are far from certain and not yet clear.

The Asian Currency Unit (ACU) is a proposed currency unit for the ASEAN "10+3" economic circle. (ASEAN, the mainland of the People's Republic of China, India, Japan, and South Korea).

Shanghai Cooperation Organisation

The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and security organisation, the creation of which was announced on 15 June 2001 in Shanghai, China, its members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, India and Pakistan; the Shanghai Cooperation Organisation Charter, formally establishing the organisation, was signed in June 2002 and entered into force on 19 September 2003. Known as the "alliance of Asia", it is the world's forefront regional organisation in economic power and political influence, one of the world's strongest military alliances, and the largest regional organisation in the world in terms of geographical coverage and population, covering three-fifths of the Eurasian continent and nearly half of the human population. At present, the SCO is one of the world's most powerful and influential organisations.

Regional Comprehensive Economic Partnership

The Regional Comprehensive Economic Partnership is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing free trade agreements (Australia, China, India, Japan, South Korea and New Zealand). It is the world's largest trading bloc, covering nearly half of the global economy.

RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia. The free trade agreement is scheduled and expected to be signed in November 2018 during the ASEAN Summit and Related Summit in Singapore, after the first RCEP summit was held on 14 November 2017 in Manila, Philippines. RCEP is viewed as an alternative to the Trans-Pacific Partnership (TPP), a proposed trade agreement which includes several Asian and American nations but excludes China and India.

Asia-Pacific Trade Agreement

The Asia-Pacific Trade Agreement (APTA), formerly called the Bangkok Agreement, is the only trade agreement bringing together China and India, in addition to Bangladesh and the Republic of Korea, among others. The Secretariat of the agreement is provided by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). While the agreement covers only a limited number of products, members agreed in 2009 to implement a Trade Facilitation Framework Agreement aimed at streamlining trade procedures between members.

Asia-Pacific Economic Cooperation

The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries who meet with the purpose of improving economic and political ties. Although the initial intention was to create a free trade area covering all membership (which includes China, the United States and Australia, among others) this has failed to materialize. In 2014, APEC members committed to taking a concrete step towards greater regional economic integration by endorsing a roadmap for the Free Trade Area of the Asia-Pacific (FTAAP) to translate this vision into a reality. As a first step, APEC is implementing a strategic study on issues related to the realization of a Free Trade Area of the Asia-Pacific. The study will provide an analysis of potential economic and social benefits and costs, analyze the various pathways towards a Free Trade Area and identify challenges economies may face in realizing this goal.

Gulf Cooperation Council

The Gulf Cooperation Council (GCC), is a regional intergovernmental political and economic union founded in 1981. The current member states of GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Closer Economic Partnership Arrangement

The Closer Economic Partnership Arrangement (CEPA) is an economic agreement between the People's Republic of China, the Hong Kong SAR government (signed on 29 June 2003), and the Macau SAR government (signed on 18 October 2003), in order to promote trade and investment facilitation. 

The main aims of CEPA are to eliminate tariffs and non-tariff barrier on substantially all the trade in goods between the three, and achieve liberalization of trade in services through reduction or elimination of substantially all discriminatory measures.

Arab League

The Arab League is an association of Arab countries in Africa and Asia. The Arab League facilitates political, economic, cultural, scientific and social programs designed to promote the interests of its member states.

Commonwealth of Independent States

Flag of the Commonwealth of Independent States
 
The Commonwealth of Independent States (CIS) is a confederation consisting of 12 of the 15 states of the former Soviet Union, both Asian and European (the exceptions being the three Baltic states). Although the CIS has few supranational powers, it is more than a purely symbolic organization and possesses coordinating powers in the realm of trade, finance, lawmaking and security. The most significant issue for the CIS is the establishment of a full-fledged free trade zone / economic union between the member states, to be launched in 2005. It has also promoted cooperation on democratisation and cross-border crime prevention.

South Asian Association for Regional Cooperation

The South Asian Association for Regional Cooperation (SAARC) is an association of eight countries of South Asia, namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and, Sri Lanka. These countries comprise an area of 5,130,746 km² and a fifth of the world population. SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics control and anti-terrorism. Also, a FTA called South Asia Free Trade Agreement was reached at the 12th South Asian Association for Regional Cooperation summit. It created a framework for the creation of a free trade zone covering 1.6 billion people of member states.

Economic sectors

Primary sector

Asia is by a considerable margin the largest continent in the world, and is rich in natural resources. The vast expanse of the former Soviet Union, particularly that of Russia, contains a huge variety of metals, such as gold, iron, lead, titanium, uranium, and zinc. These metals are mined, but inefficiently due to the control of a few state-sponsored giants that make participation difficult for many international mining companies. Nevertheless, profits are high due to a commodity price boom in 2003/2004 caused largely by increased demand in China. Oil is Southwest Asia's most important natural resource. Saudi Arabia, Iraq, and Kuwait are rich in oil reserves and have benefited from recent oil price escalations.

 
Asia is home to some four billion people, and thus has a well established tradition in agriculture. High productivity in agriculture, especially of rice, allows high population density of many countries such as Bangladesh, Pakistan, southern China, Cambodia, India, and Vietnam. Agriculture constitutes a high portion of land usage in warm and humid areas of Asia.

Many hillsides are farmed in a terrace method to boost arable land. The main agricultural products in Asia include rice and wheat. Opium is one of major cash crops in Central and Southeast Asia, particularly in Afghanistan, though its production is prohibited everywhere. Forestry is extensive throughout Asia, with many of the items of furniture sold in the developed nations made out of Asian timber. More than half of the forested land in Asia is in China, Indonesia, and Malaysia. China is considered a top exporter of wood products like paper and wood furniture while tropical timbers are a top export in Malaysia and Indonesia. Fishing is a major source of food, particularly in Japan and China. In Japan larger, high-quality fish are common while in China, smaller fish are being consumed at a higher rate. As the middle-class population in Southeast Asia expands, there is an increase of more expensive meats and foods becoming a part of the traditional diet.

Secondary sector

The manufacturing sector in Asia has traditionally been strongest in the East Asia region—particularly in China, Japan, South Korea, Singapore, and Taiwan. The industry varies from manufacturing cheap low value goods such as toys to high-tech value added goods such as computers, CD players, games consoles, mobile phones and cars. Major Asian manufacturing companies are mostly based in either South Korea or Japan. They include Samsung, Hyundai, LG, and Kia from South Korea, and Sony, Toyota, Toshiba, and Honda from Japan.

Many developed-nation firms from Europe, North America, Japan and South Korea have significant operations in developing Asia to take advantage of the abundant supply of cheap labor. One of the major employers in manufacturing in Asia is the textile industry. Much of the world's supply of clothing and footwear now originates in Southeast Asia and South Asia, particularly in Vietnam, China, India, Thailand, Bangladesh, Pakistan, and Indonesia.

Tertiary sector

A view of the Tidel Park in Chennai, India. Software industries of late, have been outsourced to Asian cities as such for good infrastructure, efficient man-power and cheap labour.
 
Asia's top ten important financial centers are located in Hong Kong, Singapore, Tokyo, Shanghai, Beijing, Dubai, Shenzhen, Osaka, Seoul, Mumbai. India has been one of the greatest beneficiaries of the economic boom. The country has emerged as one of the world's largest exporters of software and other information technology related services. World class Indian software giants such as Infosys, Hindustan Computers Limited, Wipro, Mahindra Satyam and Tata Consultancy Services have emerged as the world's most sought after service providers.

Call centers are also becoming major employers in Philippines due to the availability of many English speakers, and being a former American colony familiar with the American culture. The rise of the Business Process Outsourcing (BPO) industry has seen the rise of India and China as the other financial centers. Experts believe that the current center of financial activity is moving toward "Chindia" – a name used for jointly referring to China and India – with Shanghai and Mumbai becoming major financial hubs in their own right.

Other growing technological and financial hubs include Dhaka (Bangladesh), Chittagong (Bangladesh), Chennai (India), New Delhi (India), Pune (India), Bangalore (India), Hyderabad (India), Shenzhen (China), Kolkata (India), Jakarta (Indonesia), Kuala Lumpur (Malaysia), Lahore (Pakistan), Metro Manila (Philippines), Cebu (Philippines) and Bangkok (Thailand).

Multinational corporation

From Wikipedia, the free encyclopedia

Replica of an East Indiaman of the Dutch East India Company/United East India Company (VOC). The VOC is often considered by many to be the world's first formally listed public company and the first historical model of the multinational corporation (or transnational corporation) in its modern sense.
 
A multinational corporation (MNC) or worldwide enterprise  is a corporate organization which owns or controls production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation. There are subtle but real differences between these three labels, as well as multinational corporation and worldwide enterprise. 

Most of the largest and most influential companies of the modern age are publicly traded multinational corporations, including Forbes Global 2000 companies. Multinational corporations are subject to criticisms for lacking ethical standards, and that this shows up in how they evade ethical laws and leverage their own business agenda with capital, and even the military backing of their own wealthy host nation-states. They have also become associated with multinational tax havens and base erosion and profit shifting tax avoidance activities.

Overview

Toyota is one of the world's largest multinational corporation(s) with their headquarters in Toyota City, Japan.
Toyota is one of the world's largest multinational corporations with their headquarters in Toyota City, Japan.
 
A multinational corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries. The two main characteristics of MNCs are their large size and the fact that their worldwide activities are centrally controlled by the parent companies.
  • Importing and exporting goods and services
  • Making significant investments in a foreign country
  • Buying and selling licenses in foreign markets
  • Engaging in contract manufacturing — permitting a local manufacturer in a foreign country to produce their products
  • Opening manufacturing facilities or assembly operations in foreign countries
MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial know-how globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries, and gain access to special R&D capabilities residing in advanced foreign countries.

The problem of moral and legal constraints upon the behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that emerged during the late twentieth century.

Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week, the conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management, and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations we are some quarter century into an era of stateless corporations - corporations which meet the realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries.

One of the first multinational business organizations, the East India Company, was established in 1601. After the East India Company, came the Dutch East India Company, founded March 20, 1603, which would become the largest company in the world for nearly 200 years.

The main characteristics of multinational companies are:
  • In general, there is a national strength of large companies as the main body, in the way of foreign direct investment or acquire local enterprises, established subsidiaries or branches in many countries;
  • It usually has a complete decision-making system and the highest decision-making centre, each subsidiary or branch has its own decision-making body, according to their different features and operations to make decisions, but its decision must be subordinated to the highest decision-making centre;
  • MNCs seek markets in worldwide and rational production layout, professional fixed-point production, fixed-point sales products, in order to achieve maximum profit;
  • Due to strong economic and technical strength, with fast information transmission, as well as funding for rapid cross-border transfers, the multinational has stronger competitiveness in the world;
  • Many large multinational companies have varying degrees of monopoly in some area, due to economic and technical strength or production advantages.

Legal domicile

Multinational corporations can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile; The Economist suggests that the Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States.

Corporations can legally engage in tax avoidance through their choice of jurisdiction, but must be careful to avoid illegal tax evasion.

Regulation

Multinational corporations may be subject to the laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control".

Alternatives and arrangements

For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements.

Dispute resolution and arbitration

Disputes between corporations in different nations is often handled through international arbitration.

Theoretical background

The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services.

To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to the internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies.

International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm. The latter is also known as the OLI framework.

The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example:
Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963, was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that "cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but the creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself.

Transnational corporations

The United East India Company (VOC) was a pioneering early model of the multinational/transnational corporation at the dawn of modern capitalism.
 
17th-century etching of the Oost-Indisch Huis (Dutch for "East India House"), the global headquarters of the United East India Company (VOC) in Amsterdam.
 
The Fort Batavia, seen from West Kali Besar (Andries Beeckman, c. 1656). In Batavia in 1610 the VOC established its overseas administrative centre, as the second headquarters, with a Governor-General in charge, as the Company's de facto chief executive. The Company also had important operations elsewhere.
 
A transnational corporation differs from a traditional multinational corporation in that it does not identify itself with one national home. While traditional multinational corporations are national companies with foreign subsidiaries, transnational corporations spread out their operations in many countries to sustain high levels of local responsiveness.

An example of a transnational corporation is Nestlé, who employ senior executives from many countries and tries to make decisions from a global perspective rather than from one centralized headquarters.

Another example is Royal Dutch Shell, whose headquarters are in The Hague, Netherlands, but whose registered office and main executive body are headquartered in London, United Kingdom.

Multinational enterprise

"Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as the firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs.

Colonialism

The history of multinational corporations is closely intertwined with the history of colonialism, the first multinational corporations being founded to undertake colonial expeditions at the behest of their European monarchical patrons. Prior to the era of New Imperialism, a majority European colonies not held by the Spanish and Portuguese crowns were administered by chartered multinational corporations. Examples of such corporations include the British East India Company, the Swedish Africa Company, and the Hudson's Bay Company. These early corporations facilitated colonialism by engaging in international trade and exploration, and creating colonial trading posts. Many of these corporations, such as the South Australia Company and the Virginia Company, played a direct role in formal colonization by creating and maintaining settler colonies. Without exception these early corporations created differential economic outcomes between their home country and their colonies via a process of exploiting colonial resources and labour, and investing the resultant profits and net gain in the home country. The end result of this process was the enrichment of the colonizer and the impoverishment of the colonized. Some multinational corporations, such as the Royal African Company, were also responsible for the logistical component of the Atlantic slave trade, maintaining the ships and ports required for this vast enterprise. During the 19th century, formal corporate rule over colonial holdings largely gave way to state-controlled colonies, however corporate control over colonial economic affairs persisted in a majority of colonies.

During the process of decolonization, the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company, dissolving in 1972. However the economic impact of corporate colonial exploitation has proved to be lasting and far reaching, with some commentators asserting that this impact is among the chief causes of contemporary global income inequality.

Contemporary critics of multinational corporations have charged that some present day multinational corporations follow the pattern of exploitation and differential wealth distribution established by the now defunct colonial charter corporations, particularly with regards to corporations based in the developed world that operate resource extraction enterprises in the developing world, such as Royal Dutch Shell, and Barrick Gold. Some of these critics argue that the operations of multinational corporations in the developing world take place within the broader context of neocolonialism.

However, multinational corporations from emerging markets are playing an ever-greater role, increasingly impacting the global economy.

Criticism

Anti-corporate advocates criticize multinational corporations for being without a basis in a national ethos, being ultimately without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards. In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality, unemployment, and wage stagnation.

The aggressive use of tax avoidance schemes, and multinational tax havens, allows multinational corporations to gain competitive advantages over small and medium-sized enterprises. Organizations such as the Tax Justice Network criticize governments for allowing multinational organizations to escape tax, particularly by using base erosion and profit shifting (BEPS) tax tools, since less money can be spent for public services.

Employment discrimination law in the United States

From Wikipedia, the free encyclopedia

Employment discrimination law in the United States derives from the common law, and is codified in numerous state and federal laws, particularly the Civil Rights Act of 1964, as well as in the ordinances of counties and municipalities. These laws prohibit discrimination based on certain characteristics or protected categories. The United States Constitution also prohibits discrimination by federal and state governments against their public employees. Discrimination in the private sector is not directly constrained by the Constitution, but has become subject to a growing body of federal and state law. Federal law prohibits discrimination in a number of areas, including recruiting, hiring, job evaluations, promotion policies, training, compensation and disciplinary action. State laws often extend protection to additional categories or employers.
 
Under Federal law, employers generally cannot discriminate against employees on the basis of:

Constitutional basis

The United States Constitution does not directly address employment discrimination, but its prohibitions on discrimination by the federal government have been held to protect federal government employees. 

The Fifth and Fourteenth Amendments to the United States Constitution limit the power of the federal and state governments to discriminate. The Fifth Amendment has an explicit requirement that the federal government does not deprive individuals of "life, liberty, or property", without due process of the law. It also contains an implicit guarantee that the Fourteenth Amendment explicitly prohibits states from violating an individual's rights of due process and equal protection. In the employment context, these Constitutional provisions would limit the right of the state and federal governments to discriminate in their employment practices by treating employees, former employees, or job applicants unequally because of membership in a group (such as a race or sex). Due process protection requires that government employees have a fair procedural process before they are terminated if the termination is related to a "liberty" (such as the right to free speech) or property interest. As both Due Process and Equal Protection Clauses are passive, the clause that empowers Congress to pass anti-discrimination bills (so they are not unconstitutional under Tenth Amendment) is Section 5 of Fourteenth Amendment

Employment discrimination or harassment in the private sector is not unconstitutional because Federal and most State Constitutions do not expressly give their respective government the power to enact civil rights laws that apply to the private sector. The Federal government's authority to regulate a private business, including civil rights laws, stems from their power to regulate all commerce between the States. Some State Constitutions do expressly afford some protection from public and private employment discrimination, such as Article I of the California Constitution. However, most State Constitutions only address discriminatory treatment by the government, including a public employer. 

Absent of a provision in a State Constitution, State civil rights laws that regulate the private sector are generally Constitutional under the "police powers" doctrine or the power of a State to enact laws designed to protect public health, safety and morals. All States must adhere to the Federal Civil Rights laws, but States may enact civil rights laws that offer additional employment protection.

For example, some State civil rights laws offer protection from employment discrimination on the basis of sexual orientation, gender identity or political affiliation, even though such forms of discrimination are not yet covered in federal civil rights laws.

History of federal laws

Federal law governing employment discrimination has developed over time.

The Equal Pay Act amended the Fair Labor Standards Act in 1963. It is enforced by the Wage and Hour Division of the Department of Labor. The Equal Pay Act prohibits employers and unions from paying different wages based on sex. It does not prohibit other discriminatory practices in hiring. It provides that where workers perform equal work in the corner requiring "equal skill, effort, and responsibility and performed under similar working conditions," they should be provided equal pay. The Fair Labor Standards Act applies to employers engaged in some aspect of interstate commerce, or all of an employer's workers if the enterprise is engaged as a whole in a significant amount of interstate commerce.

Title VII of the Civil Rights Act of 1964 prohibits discrimination in many more aspects of the employment relationship. "Title VII created the Equal Employment Opportunity Commission (EEOC) to administer the act".  It applies to most employers engaged in interstate commerce with more than 15 employees, labor organizations, and employment agencies. Title VII prohibits discrimination based on race, color, religion, sex or national origin. It makes it illegal for employers to discriminate based upon protected characteristics regarding terms, conditions, and privileges of employment. Employment agencies may not discriminate when hiring or referring applicants, and labor organizations are also prohibited from basing membership or union classifications on race, color, religion, sex, or national origin. The Pregnancy Discrimination Act amended Title VII in 1978, specifying that unlawful sex discrimination includes discrimination based on pregnancy, childbirth, and related medical conditions. A related statute, the Family and Medical Leave Act, sets requirements governing leave for pregnancy and pregnancy-related conditions.

Executive Order 11246 in 1965 "prohibits discrimination by federal contractors and subcontractors on account of race, color, religion, sex, or national origin [and] requires affirmative action by federal contractors".

The Age Discrimination in Employment Act (ADEA), enacted in 1968 and amended in 1978 and 1986, prohibits employers from discriminating on the basis of age. The prohibited practices are nearly identical to those outlined in Title VII, except that the ADEA protects workers in firms with 20 or more workers rather than 15 or more. An employee is protected from discrimination based on age if he or she is over 40. Since 1978, the ADEA has phased out and prohibited mandatory retirement, except for high-powered decision-making positions (that also provide large pensions). The ADEA contains explicit guidelines for benefit, pension and retirement plans. Though ADEA is the center of most discussion of age discrimination legislation, there is a longer history starting with the abolishment of "maximum ages of entry into employment in 1956" by the United States Civil Service Commission. Then in 1964, Executive Order 11141 "established a policy against age discrimination among federal contractors".

The Rehabilitation Act of 1973 prohibits employment discrimination on the basis of disability by the federal government, federal contractors with contracts of more than $10,000, and programs receiving federal financial assistance. It requires affirmative action as well as non-discrimination. Section 504 requires reasonable accommodation, and Section 508 requires that electronic and information technology be accessible to disabled employees.

The Black Lung Benefits Act of 1973 prohibits discrimination by mine operators against miners who suffer from "black lung disease" (pneumoconiosis).

The Vietnam Era Readjustment Act of 1974 "requires affirmative action for disabled and Vietnam era veterans by federal contractors".

The Bankruptcy Reform Act of 1978 prohibits employment discrimination on the basis of bankruptcy or bad debts.

The Immigration Reform and Control Act of 1986 prohibits employers with more than three employees from discriminating against anyone (except an unauthorized immigrant) on the basis of national origin or citizenship status.

The Americans with Disabilities Act of 1990 (ADA) was enacted to eliminate discriminatory barriers against qualified individuals with disabilities, individuals with a record of a disability, or individuals who are regarded as having a disability. It prohibits discrimination based on real or perceived physical or mental disabilities. It also requires employers to provide reasonable accommodations to employees who need them because of a disability to apply for a job, perform the essential functions of a job, or enjoy the benefits and privileges of employment, unless the employer can show that undue hardship will result. There are strict limitations on when an employer can ask disability-related questions or require medical examinations, and all medical information must be treated as confidential. A disability is defined under the ADA as a mental or physical health condition that "substantially limits one or more major life activities."

The Nineteenth Century Civil Rights Acts, amended in 1993, ensure all persons equal rights under the law and outline the damages available to complainants in actions brought under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the 1973 Rehabilitation Act.

The Genetic Information Nondiscrimination Act of 2008 bars employers from using individuals' genetic information when making hiring, firing, job placement, or promotion decisions.

The proposed US Equality Act of 2015 would ban discrimination on the basis of sexual orientation or gender identity. As of June 2018, 28 US states do not explicitly include sexual orientation and 29 US states do not explicitly include gender identity within anti-discrimination statutes.

LGBT employment discrimination

The regulation of LGBT employment discrimination in the United States varies by jurisdiction. Many states and localities prohibit bias in hiring, promotion, job assignment, termination, and compensation, as well as harassment on the basis of one's sexual orientation. Fewer extend those protections to cover sexual identity. Some cover government employees but do not extend their protections to the private sector. Protections at the national level are limited.

There is no federal statute addressing employment discrimination based on sexual orientation or gender identity. During President Obama's tenure Congress came close to enactment of the Employment-Non-Discrimination Act (ENDA), a federal statute explicitly prohibiting discrimination against LGBT workers. The Washington Blade noted that the Employment Non-Discrimination Act (ENDA) has had strong bipartisan support, and even Democratic leadership has signed on. Although the Senate passed ENDA it did not survive the House. In March 2014, 195 lawmakers, 148 House members, and 47 Senators, all Democrats, signed an appeal to President Obama, encouraging him to enact protections for LGBT workers in an executive order. (Executive Order 13672.) 

Federal courts have generally agreed that Title VII of the Civil Rights Act of 1964, which prohibits sex discrimination in the workplace, does not prohibit discrimination on the basis of sexual orientation although some courts following Pricewaterhouse v. Hopkins support protecting transgender employees from discrimination as a form of sex stereotyping. In early 2018 two federal appellate courts (Second Circuit and Seventh Circuit) reversed circuit precedent on sexual orientation discrimination to hold Title VII prohibits sexual orientation discrimination. The Sixth Circuit also reversed precedent finding Title VII prohibits transgender discrimination in the workplace.

According to Crosby Burns and Jeff Krehely: "Studies show that anywhere from 15 percent to 43 percent of gay people have experienced some form of discrimination and harassment at the workplace. Moreover, a staggering 90 percent of transgender workers report some form of harassment or mistreatment on the job." Many people in the LGBT community have lost their job, including Vandy Beth Glenn, a transgender woman who claims that her boss told her that her presence may make other people feel uncomfortable.

Almost half of the United States has laws banning the discrimination of gender non-conforming and transgender people in both public and private workplaces. A few more states ban LGBT discrimination in only public workplaces. Some opponents of these laws believe that it would intrude on religious liberty, even though these laws are focused more on discriminatory actions, not beliefs. Courts have also identified that these laws do not infringe free speech or religious liberty.

State law

State statutes also provide extensive protection from employment discrimination. Some laws extend similar protection as provided by the federal acts to employers who are not covered by those statutes. Other statutes provide protection to groups not covered by the federal acts. Some state laws provide greater protection to employees of the state or of state contractors.

Government employees

Employees of federal and state governments have additional protections against employment discrimination. 

The Civil Service Reform Act of 1978 prohibits discrimination in federal employment on the basis of conduct that does not affect job performance. The Office of Personnel Management has interpreted this as prohibiting discrimination on the basis of sexual orientation. In June 2009, it was announced that the interpretation would be expanded to include gender identity.

Exceptions

Bona fide occupational qualifications

Employers are generally allowed to consider characteristics that would otherwise be discriminatory if they are bona fide occupational qualifications (BFOQ). For example, a manufacturer of men's clothing may lawfully advertise for male models.

Religious Employment Discrimination

Religious discrimination is treating individuals differently in their employment because of their religion, their religious beliefs and practices, and/or their request for accommodation (a change in a workplace rule or policy) of their religious beliefs and practices. It also includes treating individuals differently in their employment because of their lack of religious belief or practice” (Workplace Fairness). According to The U.S. Equal Employment Opportunity Commission, employers are prohibited from refusing to hire an individual based on their religion- alike race, sex, age, and disability. If an employee believes that they have experienced religious discrimination, they should address this to the alleged offender. On the other hand, employees are protected by the law for reporting job discrimination and are able to file charges with the EEOC. Some locations in the U.S. now have clauses that ban discrimination against atheists. The courts and laws of the United States give certain exemptions in these laws to businesses or institutions that are religious or religiously-affiliated, however, to varying degrees in different locations, depending on the setting and the context; some of these have been upheld and others reversed over time.

Members of the Communist Party

Title VII of the Civil Rights Act of 1964 explicitly permits discrimination against members of the Communist Party.

Military

The military has faced criticism for prohibiting women from serving in combat roles. In 2016, however, the law was amended to allow them to serve. In the article posted on the PBS website, Henry Louis Gates Jr. writes about the way in which black men were treated in the military during the 1940s. According to Gates, during that time the whites gave the African Americans a chance to prove themselves as Americans by having them participate in the war. The National Geographic website states, however, that when black soldiers joined the Navy, they were only allowed to work as servants; their participation was limited to the roles of mess attendants, stewards, and cooks. Even when African Americans wanted to defend the country they lived in, they were denied the power to do so.

Unintentional discrimination

Employment practices that do not directly discriminate against a protected category may still be illegal if they produce a disparate impact on members of a protected group. Title VII of the Civil Rights Act of 1964 prohibits employment practices that have a discriminatory impact, unless they are related to job performance.
The Act requires the elimination of artificial, arbitrary, and unnecessary barriers to employment that operate invidiously to discriminate on the basis of race, and, if, as here, an employment practice that operates to exclude Negroes cannot be shown to be related to job performance, it is prohibited, notwithstanding the employer's lack of discriminatory intent.
Height and weight requirements have been identified by the EEOC as having a disparate impact on national origin minorities.

However, when defending against a disparate impact claim that alleges age discrimination, an employer does not need to demonstrate necessity; rather, it must simply show that its practice is reasonable.

Enforcing entities

The Equal Employment Opportunity Commission (EEOC) interprets and enforces the Equal Pay Act, Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, Title I and V of the Americans With Disabilities Act, Sections 501 and 505 of the Rehabilitation Act, and the Civil Rights Act of 1991. The Commission was established by the Civil Rights Act of 1964. Its enforcement provisions are contained in section 2000e-5 of Title 42, and its regulations and guidelines are contained in Title 29 of the Code of Federal Regulations, part 1614. Persons wishing to file suit under Title VII and/or the ADA must exhaust their administrative remedies by filing an administrative complaint with the EEOC prior to filing their lawsuit in court.

The Office of Federal Contract Compliance Programs enforces Section 503 of the Rehabilitation Act, which prohibits discrimination against qualified individuals with disabilities by federal contractors and subcontractors.

Under Section 504 of the Rehabilitation Act, each agency has and enforces its own regulations that apply to its own programs and to any entities that receive financial assistance.

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) enforces the anti-discrimination provisions of the Immigration and Nationality Act (INA), 8 U.S.C. § 1324b, which prohibits discrimination based on citizenship status or national origin.

State Fair Employment Practices (FEP) offices take the role of the EEOC in administering state statutes.

Lie point symmetry

From Wikipedia, the free encyclopedia https://en.wikipedia.org/wiki/Lie_point_symmetry     ...