ENG 401

READING PACK

Prepared by : Filiz ETİZ

March 2011

1 TEXT 1

The changing shape of employment versus demographic change

The “developed world” is experiencing great demographic change, characterized by declining birth rates, greater longevity and ageing populations. The trend towards ageing populations raises issues about the management of ageing workforces. In western industrialized nations these shifts are predicted to result in labour market skill shortages, and in combination with social and technological changes and the wider forces of globalization, are creating major challenges for employers and nations in managing labour supply. The popular premise, that ageing populations go hand-in-hand with ageing workforces, appears to be contradicted by much of the available evidence, which points to rather more complex scenarios, in which outcomes are uncertain, but clearly where older workers may not necessarily fare well.

In combination with declining birth rates, the retirement of a large cohort of baby boomers is expected to reduce the supply of skilled workers, contribute to a lowering of workforce participation rates while also raising dependency ratios. Of concern, in western industrialized nations these demographic shifts are predicted to result in labour market skill shortages. Reports from governments and institutions in Australia, the USA and in Europe have noted that demographic change poses serious challenges for employers and economies in the developed world.

However, the problem of a decline in labour supply in OECD (Organization for Economic Cooperation and Development) nations adopts a new dimension when considered from a global perspective. For example, the expansion of global capitalism to China, India, and the former Soviet bloc, doubled the supply of labour available to the global capitalist system, and in future years, workforce growth is expected to be strongest among developing nations.

Countries now compete, not only for markets, technology and investment to grow and to raise living standards but also skilled labour. International migration has thus become a key element of national policy agendas.

Limits of public policy

These types of challenges have prompted new approaches to labour market management. Active labour market policies are a feature of modern policy approaches and are designed to improve labour market efficiency, to ease the load and to share the burden. However, for a significant number of at risk workers, such as late career workers, policy approaches inherent in the language of individual responsibility do little to adjust the social habitus of life's circumstances, culturally embedded roles and the limited fields of opportunity. Consequently, policymakers now face the challenge of predicting change and identifying jobs at risk in an increasingly dynamic environment.

New pathways out of the workforce are exerting catalytic effects, and for some, these effects are facilitating, if not accelerating, transitions into marginalized employment and premature exit from the workforce. These changes now require a rapid response from government, enterprise and workers across all industries. In the past, manufacturing jobs were perceived to be most at risk while for workers in non-traded sectors most would have felt secure from the adverse effects of international

2 competition. Now, a wide range of white collar jobs, previously regarded as “safe” (non-tradable), face the same off-shoring and industry competition risks.

Challenges to working later

Against a background of changing patterns of employment and a desire to remove barriers to the workforce entry of older workers, it is useful to consider the influence of individual and organizational factors. Redesigned jobs are frequently more demanding than the jobs they replace. For older workers this will frequently necessitate re-skilling, requiring that they undertake the difficult task of adjusting to new routines to re-establish their job “fit” and to overcome the fear of starting again. Older workers, however, may not want or be able to negotiate this transition. Feelings of uncertainty and anxiety represent significant obstacles to work transitions among late career workers. There is also evidence of severe employer prejudice against employing older workers with surveys indicating a strong preference for other strategies to address problems of labour supply. Older employees are perceived as being less effective than younger workers and to represent a serious barrier to organizational change and flexible performance.

This presents as a troublesome outcome, given the evidence that jobs now require employees to be able to access higher levels of skills across a broader repertoire of capabilities and to be prepared to continually update these skills because: “Jobs are no longer for life, and employees can no longer train just once in their lives”. The challenge of managing late career workers may also present an obstacle to policy success.

Reconceptualizing careers

Transition into adulthood is increasingly occurring at a later age; a move which reflects a broader trend towards “delayed maturity”. Young people are studying for longer, joining the labour market at a later age, leaving home later, marrying later and starting families later. Individuals are seeking to establish a secure base, in terms of employment security (employability), financial security and a secure/stable partner before taking on broader responsibilities such as starting families and purchasing homes.

Employees have come to understand that the psychological contract between employer and employee no longer provides a pathway to work-life security. Chronological age no longer defines the point at which an individual is at in their career. Instead, greater consideration should be given to ”career age” where, for example, five years in a particular speciality might be considered as ”midlife” for that particular activity. As the lifecycles of products and technologies shorten, careers will increasingly consist of a succession of “mini-stages”.

Transnational governance

National Governments seeking to respond to these types of challenges will need to adopt a range of new ways that involve a far more intensive level of engagement with transnational corporations (TNCs). The preferred approach will be to recognize that participation in policy through partnership with national, inter-governmental and global institutions and new national structures that reflect the merits of joined-up practice is required.

3 Organizations personally engage with consumers on a daily basis, through the routine of exchange for goods and services. Through the routine of exchange, long- term relationships with customers can then be established. These relationships drive profitability and are often a key focus of business marketing activity. This type of relationship is of a very different character to the relationships shared between citizens and their governments, which tend to oscillate around political cycles. This presents as a potential partnership conundrum for policy makers. The objectives of TNCs and multilateral institutions do not necessarily overlap and by engaging with customers on a daily basis and investing in global flows, transnational corporations are able to exercise significant global influence.

Explore the alternatives

The integration of the world economy has facilitated the movement of industrial production to new centres and with this, new sources of international demand for skilled labour. High levels of foreign direct investment in developing economies, along with industry restructuring and the emergence of global production networks, have also radically reshaped human capital and financial flows. These change effects carry with them potentially adverse complications for at-risk late career workers. In the absence of a deep understanding of the current relationship between demographic ageing, the labour market and economic globalization, the policy aspirations of government face the prospect of limited success.

Though policy actions around the themes of participation, migration, population, and productivity have developed extensively in recent years, the aspirations of government remain little more than rhetoric. Employees, organizations and government have not yet managed to triangulate or agree on their mutual objectives.

The factors influencing employer actions such as low cost competition, dynamic change, poaching by competitors, attitudes and behaviour towards older workers, and older worker preferences for work and retirement, stand in the way of policy aspirations and mandate immediate action to transgress the isolated and competing realms of private, public, international and non-governmental institutions to create a way that gives voice to each while protecting the vulnerable from the prospect of uselessness.

Ahead of this, business is continuing to explore the viability of alternative business models that, increasingly, involve transnational activities and cannot wait for government or future employees to adjust. It seems obvious that our near future will witness some drastic changes in the shape of employment.

Adapted from:

Jorgensen, B. & P. Taylor. (2008, June 21). Employees, employers and the institutions of work: the global competition for terrain in the ageing workforce agenda. Foresight. 10 (1). Retrieved 6 October, 2008 from http://info.emeraldinsight.com/learning/management_thinking/articles/employment_change.htm

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4 Refugees

Refugees are people who leave their homes in order to seek safety, or refuge. In general, people become refugees to flee violence, economic disparity, repression, natural disasters, and other harsh living and working conditions. In the context of intractable conflict, refugees are those who flee from inevitable, often long-term violence and other difficult living conditions brought on by the conflict. The United Nations more narrowly defines refugees as "persons who are outside their country and cannot return owing to a well-founded fear of persecution because of their race, religion, nationality, political opinion, or membership in a particular social group."

On January 1, 2002, the United Nations High Commissioner for Refugees (UNHCR) estimated that there were more than 12 million refugees in the world. This number of refugees has remained relatively constant at greater than 10 million since 1981. Some refugees have been living in camps for most of their lives. For example, Afghans have lived in camps in Pakistan and Iran since the early 1980s when the Soviet Union invaded their nation. While some return each year to resettle, almost equal numbers leave to escape new regional fighting. The number of Afghan refugees living abroad now stands at over 3.5 million.

Currently, Asia hosts nearly 50 percent of the world's refugee population, with Africa and Europe both hosting just over 20 percent. Ongoing conflicts in Afghanistan, Iraq, central Africa (Angola, Sudan, Democratic Republic of Congo, and Burundi), and Bosnia-Herzegovina have either created new refugees or prevented refugees from returning home in 2001. Each of these countries now has over 400,000 refugees living abroad, with Afghanistan having at least seven times more than any other.

Why Refugees Matter

Refugees are a recognizable result of the breakdown of the economic and/or political situation in an area. Refugees flee violence, discrimination, economic hardship, and political conflict. In some ways, the very existence of refugees is evidence of the world's economic and political disparities, thus proving that many changes need to occur in the world before intractable conflict becomes a thing of the past. Refugees are prime indicators for social, political, and economic instability, for human atrocities and great human suffering. They signal our failure to provide basic human security for all.

In regions that have little exposure to outside media, refugees can be the first clue that trouble is taking place. North Korean refugees found in China and South Korea tell of famines that the government didn't always acknowledge. Tibetans risking their lives to walk over the Himalayas talk of repression by the Chinese government. When refugees fled Vietnam by boat in 1979 it was obvious that a repressive government was in power.

Refugees have always been used as political pawns. During the Cold War, refugees were considered trophies by the other side. A Soviet defector who spoke of the repressive Soviet regime would further prove the American belief that Communism repressed a person's political and economic freedoms. Today, refugees are used as bargaining chips by powerful governments who do not wish to allow refugees to migrate to their countries. Instead, they convince other governments to take in the refugees in exchange for financial assistance. Refugees are also political pawns in places like the Sudan, where opposing armed groups fight over resources that are 5 intended as relief. Refugee camps are raided to kidnap boys as new recruits for the troops.

By understanding what makes a refugee and what life as a refugee is like, it is possible to understand one result of intractable conflicts and conceive of ways to avoid such situations. Also, knowing what refugees encounter allows relief agencies and concerned citizens to provide better assistance that protects refugee independence and human rights and prepares refugees to return home one day or to move elsewhere to a more secure life.

Life as a Refugee

Life as a refugee is defined by uncertainty for all but the wealthiest or those who can reside in the homes of relatives. For the most part, refugees are poor and they seek refuge from a conflict or repressive government, uncertain of their destination or if they will ever return home. They often leave home at a moment's notice, either forcibly or voluntarily, and must leave their possessions behind. Occasionally, even family members are lost in the journey. Once refugees arrive at a place of refuge, such as a camp run by the UNHCR or a non-governmental organization (NGO), they must establish a makeshift home, locate friends and family, receive food and water, and try to discover news that will give them some idea of what is happening.

It is unfortunate and ironic that most refugees flee in order to escape human rights violations and violence, yet their vulnerable situation as refugees exposes them to additional human rights violations and violence. Walking away from danger with one's valuables makes a refugee vulnerable to robbery from armed marauders. Young boys are always susceptible to being kidnapped and forced to fight for a military group. Women of all ages are potential rape victims. Children are no longer assured of receiving an adequate education. NGOs have trouble ensuring the safety of those who live in refugee camps. Refugees also occasionally have problems receiving food and water because such resources are often in short supply and are major targets of armed groups.

Life as a refugee also strongly affects one's sense of identity. Because most refugees are economically dependent on relief agencies and have no way of knowing what their situation will be from one day to the next, they are left with few ways of expressing their independence. Refugees are also removed from their everyday cultural reminders. Life as a refugee always brings the possibility of encountering others who are different. Associating with people from different cultures can make one more tolerant, or it can lead to a group or individual losing his or her cultural identity or clinging to it in a more extreme form. For example, when Afghans fled to Iran in the 1980s, they were exposed to a more conservative form of Islam than they had previously practiced. This led to greater pressure on men to place stricter restrictions on the women in their families. These restrictions included the end of education for women, the imposition of arranged marriages, and in some cases the almost total confinement of women to the home.

Refugee Status

When one crosses an international border, one is supposed to be protected by international law and is eligible to receive assistance from the UNHCR and other NGOs. Many countries

6 recognize their duty to assist refugees, but not all are forthcoming in providing such assistance. Especially in instances of mass violence and mass exodus, a neighboring country lacks the resources or does not wish to welcome such a large number of refugees. Refugees are often thought to strain the resources, land, economy, and culture of the host country.

For many refugees, returning home is their eventual goal, but only when the government has changed or when the violence has ended. Voluntary repatriation is the ideal, but is not always possible. Unfortunately, some countries refuse to allow refugees to enter and receive protection or the countries only allow refugees to stay a short time and then forcibly repatriate them, often placing refugees in the same dangerous situations that they fled in the first place.

Ideally, a refugee will only remain in the host country for a short time. Intractable conflict, however, often prevents voluntary repatriation. Refugees either end up living in camps for years with little or no hope of returning, or they attempt to become residents of another country. By applying for asylum, a refugee can ask a host government for permission to legally reside and work in the country. Each country has its own unique asylum procedures, but all offer the government's protection from deportment and freedom of movement.

Asylum-seekers can cause political headaches, however, as governments are torn between upholding their moral obligations to protect the persecuted, and their obligations to provide adequate services to their own citizens. In some cases, asylum-seekers put a great economic and cultural strain on a host country. All asylum-seekers need the host nation's social services, but those who are poor, unskilled laborers will be able to contribute little to the nation's tax base. These people will require education and training, which will likely be grudgingly provided by the host country's taxpayers. Some asylum-seekers will also require language training and their children will have special educational needs as well.

Despite these potential drawbacks, governments award asylum to thousands of refugees every year. Even though there are always more applicants than can be provided for, many nations, including the United States, accept asylum-seekers and assist them in adjusting to their new lives. Notable examples include political refugees from China and the so-called Lost Boys of Sudan, a group of boys who walked to refugee camps in Ethiopia and Kenya before finally beginning new lives throughout the United States. It is obvious that refugees are prone to numerous hardships as states have become less open to accepting refugees than in the past owing to economic, cultural, and political reasons.

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Reference:

McMorran, Chris. (2008, July 4). Refugees. Beyond Intractability. Eds. Guy Burgess and Heidi Burgess. Conflict Research Consortium, University of Colorado. Retrieved 8 October, 2008 from http://www.beyondintractability.org/essay/refugees/

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7 Women Entrepreneurship

Indications of global changes in venture businesses in Japan

Japan maintains a traditional economic system that is deeply rooted in a male- dominant society. Women are expected to stay home and take care of their families. Social expectations toward women are low, regardless of a woman's education, ability, or career aspirations. In recent years, however, the Japanese economic system has begun to favor women who take an active part in the business world. Entrepreneurship rather than employment in large companies particularly offers Japanese women an improved chance of advancing in their careers.

Similar to that of the U.S., the business environment in Japan over recent years has also been drastically changing due to the internationalization of Japan's economy, an aging population, diversification of talent in corporate structure, diversification of lifestyles, and technological innovation. In this changing environment, women are starting to play a significant role as a critical knowledge-based workforce component in Japan, the world's second largest economy in Gross Domestic Product (GDP) sales.

This article investigates how the Japanese economic system, which is beginning to show signs of revitalization, is changing to favor the emergence of female entrepreneurship and also discusses the potential reasons for that trend. Given Japan's important role in the global economy plus its traditional position in terms of not supporting women in entrepreneurship, these developments have implications far beyond Japan's national borders.

Women entrepreneurs in Japan

Japanese small and medium sized enterprises (SMEs) comprise more than 99 percent of the total number of Japanese enterprises. These one million-plus businesses which employ 72.7 percent of workers, account for more than 50 percent of the total value, and almost 60 percent of the value added. Small and medium businesses are not only a crucial source of employment, but through the extensive subcontracting networks that form the basis of the Japanese and U.S. production systems, they are also essential participants in global business practices. In the world's second largest economy, SMEs in Japan are suppliers to both global and domestic multinationals. These enterprises are a critical segment of both U.S. and Japanese innovation and economic systems. However, little is known about the relationship between institutional changes in SMEs and their use of information resources, a critical component of strategic advantage in business practice.

In contrasting women's roles in business, we must consider that Japanese women have played a very traditional role in Japan's post-World War II era. In the traditional household, men go to work and earn income to support their families, and women stay home and raise their children and care for elders. Even though women work after graduation from school, they are expected to leave school when they get married or give birth to children. If they should decide to re-enter the business world, they tend only to get clerical work featuring lower wages than men earn, regardless of the woman's level of education. For many years, this system in Japan isolated women from participating in society and prevented them from acquiring technical knowledge or social skills and from establishing a network of business colleagues. In the Gender Empowerment Measure Index, which evaluates whether or not women are able to participate actively in economic and political activities and take part in 8 decision-making, Japan has been ranked 43rd among 80 countries evaluated. In contrast, the United States was ranked 12th, and Norway was ranked first in 2005.

Japan: Recent changes favor women in business

In recent years, however, the Japanese economic system has changed to favor women who take an active part in the business world, although the male-dominated traditional economic system persists. Japan's birth rate reached a record low in 2004 of 1.29 children per woman. Japan faces a serious labor shortage in the coming years as its population ages.

Women are now recognized as a capable workforce to help reduce Japan's labor shortage. The Ministry of Finance report, "Women Activities and Enterprise Operating Results," recommends that firms increase productivity by encouraging women to participate in the firm's activities. According to Hajime Hori, a senior official in the Japanese Economic Planning Ministry, the labor shortage runs through the entire Japanese economy, but is especially acute in the rapidly growing high-tech sector. The top five large companies, as defined by the number of employees that are proactively recruiting women, are IBM Japan, NEC, Fujitsu, Nippon Telegraph & Telephone, and Suntory. According to a plan posted on the Japanese Cabinet Office website, the government has also come up with measures for women to work full- time. The central government positions offer shorter hours for women who are raising children or are caring for family members. The government also urges companies to rehire women who left their jobs after giving birth. This type of government involvement in business practice is different in Japan, as in other parts of Asia. In this regard, the government in Japan does not get directly involved in business decisions, but does set up incentives and discussions with business leaders to define, encourage and achieve specific goals.

Female entrepreneurship in Japan

The most remarkable support programs are provided nationwide for female entrepreneurship. Many local government offices and community organizations are providing female entrepreneurs with information and programs on how to start businesses. A survey in 2002 showed that the most common sector in which women began new business was in services, such as small restaurants, take-out food stores, nursing, massage centers, relaxation clinics, and pet grooming. These jobs were once considered low-paying female labor. A similar program, called the Center for the Advancement of Working Women, was also launched in 2001 by Japan's Health, Welfare and Labor Ministry to aid women entrepreneurs. Under current economic conditions, women now stand a better chance of advancing their careers as entrepreneurs, as opposed to being employed in large companies.

Potential of Japanese women for entrepreneurship

Driven by a desire for independence, flexibility, a need for fulfillment, and by a multitude of other reasons, Japanese women from 1997 to 2002 have started their own businesses at twice the rate of businesses initiated by Japanese men, according to the most recent data provided by the Japanese Ministry of Health, Labor and Welfare. There are three potential reasons to explain this trend:

1. Japanese women have little obligation to give financial support to their families, and women have a subdued social expectation in the traditional

9 Japanese economic system. This secondary societal position gives women an advantage in taking risks and taking on new challenges. 2. Women are the majority portion of the consumers in Japan. Women can understand consumers' needs and wants and get business ideas from their daily lives. 3. Advances in technology, such as the pervasive use of Internet and mobile Internet services in Japan have also made it possible for Japanese women to manage both career and family.

Practical implications for business and for Japanese women

Japan's important role in the global economy plus the country's traditional position in terms of weak support of women entrepreneurs have implications far beyond Japan's national borders. Women entrepreneurs who succeed in the current business environment provide examples for enhancing the opportunities for Japanese women in the future as well as for women around the globe who have great potential for transforming the global marketplace. In this regard, the potential role that women are playing in revitalizing the Japanese economy through their close ties to the marketplace is notable.

Finally, the implications created by successful women SOHO (Small Office/Home Office) entrepreneurs for technology companies throughout the world are notable as well. Telecommunications and IT companies would do well to focus on the rapidly growing demographic of women who are capable of contributing to societies in need of specific technology-based business competencies.

Conclusion

Japanese women excel in entrepreneurship for three reasons. First, women's traditional supporting roles in the family, while restrictive, have in many ways allowed them to take on risks and new challenges because they have more to gain than lose in terms of career opportunities in Japan. Second, as the "official" holder of the family purse strings, Japanese women can understand consumers' needs and wants, and they are able to derive new business ideas from their experience as consumers. Finally, technological advances now allow women to utilize the Internet and their computer skills to manage both career and family.

Many very bright and capable Japanese women have not realized their career potential. Although the Japanese business environment has made profound changes in favor of women, improvements are still needed in the Japanese economic system. Further improvements such as government programs, changes in laws and regulations, advancements in technology, networks of support organizations, and the perspectives of the Japanese people themselves are all critical to encouraging the growth of female entrepreneurs in Japan.

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Adapted from:Griffy-Brown, C. & N. Oakland. (2007). Women Entrepreneurship. Graziado Business Report. Pepperdine University. 10 (1). Retrieved 10 October, 2008 from http://gbr.pepperdine.edu/071/japan.html

Comprehension Questions

10 TEXT 1

1. How is the demography in western nations evolving? 2. What effect does the demographic change in western nations have on workforce? 3. What are the challenges policymakers face in today’s changing world of employment? 4. Explain the term “career age” as opposed to “chronological age”

TEXT 2

1. Who are refugees? 2. What are the reasons why refugees flee their country? 3. How are refugees (ab)used politically? 4. What sort of an identity change may a refugee undergo while s/he is located in a host country?

TEXT 3

1. What was the traditional role of women in Japan? How has that changed in time?

2. What are the potential reasons for the emergence of female entrepreneurship in Japan? 3. What sectors are Japanese women especially keen on advancing their careers as entrepreneurs? Why do you think so?

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