Inflation in Saudi Arabia

Introduction In the recent past, there has been an unprecedented easing of monetary and fiscal policies in many countries. This has raised widespread concerns that the policies may plunge the world economy into a period of hyperinflation. Already in Saudi Arabia, inflation has been rising. This has been attributed to the government’s recent expansion of fiscal lending, which makes a rise in inflation inevitable. The main factors that drive Saudi’s inflation include food prices, high inflation in trading partner’s economies, and a rise in domestic rent.Advertising We will write a custom essay sample on Inflation in Saudi Arabia specifically for you for only $16.05 $11/page Learn More Methodology In the eighties and nineties, inflation in Saudi Arabia was maintained at a low of 1%. However, since 2003, the inflation rate has risen rapidly and by 2008, it exceeded 11%: a phenomenon that has negatively affected the citizens (Mehran, 2009 , p. 3). Although the World financial crisis resulted to a temporary decline in the inflation rate, it again started rising since 2010. This paper, using the quarterly data from 1980 to 2010, examines the causes behind the inflation in Saudi, its effects, and the effectiveness of the counter-strategies and policies the Saudi government has put in place to curb the rising inflation. The paper will also investigate the solutions provided to the problem of runaway inflation and give recommendations on the same. The paper utilizes a methodology that incorporates both foreign and domestic factors that affect the inflation rate in the Saudi context. It will examine the external factors as a source of inflation in Saudi, given the open trade nature of the Saudi economy characterized by oil exports and importation of consumer goods from overseas. The rise in the prices globally will be examined alongside the Saudi domestic prices. Given Saudi’s dependence on exports, fluctuation in t he value of the US dollar is a fundamental determinant of the rate of inflation in Saudi both in the short-term and long-term. Additionally, the rise in the domestic demand fuelled by the sharp increase in oil prices has also accelerated the rate of inflation in Saudi Arabia. By focusing on each factor in turn, this paper aims to find the correlation between inflation in Saudi’s trading partners (OECD countries) and the domestic inflation rate. The paper will also undertake a food price outlook in the wake of rising inflation rate and its effects on Saudi staples such as rice and wheat. What is Inflation? Inflation is a common term in economic circles, but its meaning is often misconstrued. Inflation, in simple terms, refers to a continuous increase in prices of goods and services in an economy (Dhakal, Kandil, 1993, p. 414). More specifically, inflation refers to the continuous increase in prices as measured by consumer indices like the Consumer Price Index (CPI) or a price deflator such as that used for the determination of Gross National Product (GNP) (Juselius, 1992, p. 401).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Inflation can also be described as the loose of the purchasing power of a country’s currency because of too much money in circulation, or rise in consumer demand. Under these circumstances, more cash is needed to purchase goods previously bought at a lower price. Thus, in defining inflation, two terms must be clarified. First, is the general or aggregate; this implies that the inflation rate constitutes the rise in prices of the entire goods in an economy as opposed to focusing on an isolated increase in the price of a given commodity (Juselius, 1992, p. 402). Here, the implication is that a rise in prices of a single commodity cannot serve as an indication of inflation in an economy. However, in some circumstances, a rise in the price of a single commodity can lead to a rise in the prices of other products. An example here is oil prices. Nevertheless, such an isolated rise in prices of a given commodity does not indicate inflation, unless the price induces the aggregate price level of an economy to rise. Second, the increase in the aggregate price level must occur over a given period; that is, it must be sustained for inflation to occur. In other words, the aggregate price level must rise continuously over a given period or period intervals separated by one sharp increase in the price level. Types of Inflation The types of inflation are distinguishable based on the magnitude of the rise in annual prices and the period over which it continues to rise. As such, inflation conventionally ranges from mild inflation to severe inflation. An annual price rise of 1% for several years amounts to mild inflation, which does not warrant much attention given that the price index figures may not be remarkably accurate. Fo r instance, in times of war, quality or quantity of goods may deteriorate resulting to a rise in the real price level, which the price index may not capture. On the other hand, an aggregate price level that rises at an average of 2 or 3 percent annually cannot be ignored especially if it continues over a prolonged period (Juselius, 1992, p. 404). It may not be serious if it continues for a few years after which the prices decline or stabilize at a lower level. However, if the annual price rise is continuous with no spans of lower prices, then it presents a serious problem even at 2 or 3%.Advertising We will write a custom essay sample on Inflation in Saudi Arabia specifically for you for only $16.05 $11/page Learn More Inflation can be grouped into four broad categories based on its magnitude; creeping inflation, walking inflation, running inflation and hyperinflation (Juselius, 1992, p. 407). Creeping inflation-is the inflation that occurs when the an nual price rise is low. A continuous annual price rise of not more than 3 % per annum is a creeping inflation. It is considered ineffectual and necessary for economic growth. If this inflation continues for a prolonged period, it is referred to as chronic creeping inflation, which can be intermittent or continuous. Walking Inflation- is the inflation that occurs when the annual price rise is moderate. The inflation rate in this case is a single digit usually above 3% but less than 10% per annum. Walking inflation indicates that the government must implement policies to control it before it becomes a galloping or trotting inflation. Running Inflation- is the inflation that occurs when the price rise is rapid and accelerated at a rate of 10 to 20% annually. It is also known as galloping or trotting inflation. Running inflation has profound adverse effects on the middle class and the poor citizenry of a country. It calls for strong fiscal and monetary policies to control it. When it ha ppens, creditors demand protection from anticipated lose of the currency’s purchasing power while debtors get the impression that they will reap from the higher rates. Hyperinflation- is the inflation that occurs when the annual price rise is unusually high with double or triple digit inflation rates. At hyperinflation stage, the inflation rate is immeasurable and uncontrollable. As such, the prices of commodities can rise continuously in a short time resulting to a continuous decline in the currency’s purchasing power. Causes of Inflation in Saudi Arabia Previous studies on the reasons behind inflation in most countries identify some domestic and external factors as the causes of inflation. These factors include demand, monetary factors, cost-push, and foreign inflationary trends. Hasan and Alogeel (2008, p. 45), while focusing on Saudi Arabia and Kuwait, established that currency supply and demand affect the inflation rate in the short run while inflation in foreign trade partners influences inflation in the two countries in the long run. In contrast, Darrat (1985, p. 211) established that inflation in Libya, Saudi Arabia and Nigeria is affected by minimal growth in real income and higher currency supply. He also established that Saudi’s inflationary rate is more affected by prices in international markets than by fiscal or monetary policies. Another study by Alshathree (2003, p. 12), examined the causes of inflation in the countries that make up the Gulf Cooperation Council (GCC) of which Saudi is a member. He found that internal factors such as GDP growth and currency supply and external factors such as high world prices, import prices and interest rates globally influenced inflation in these countries. Additionally, Alshathree (2003, p. 17) established that inflation is not a serious threat to Gulf countries at least I the short run. However, it has the potential of causing harm to the economies of these countries in the end. Thus, t he world prices and interest rates is a leading cause of inflation in the GCC economies because of their reliance on imports. However, Kandil and Hanan (2009, p. 4) believe the contrary; that world prices are not the main cause of inflation in GCC economies, rather oil prices are. They contend that oil prices influence the world prices leading to a sharp rise in the prices of imports. Additionally, the increase in oil prices results to increased government spending due to a rise in oil revenues, in these countries. This in turn results to a rise in domestic demand pushing up inflation. By using a methodology that includes both internal and external factors, this paper will investigate inflation in a Saudi context. The economy of Saudi Arabia is an open trade economy given that the country is a significant exporter of oil products and a net importer of a variety of products.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This means that Saudi is prone to inflation resulting from a rise in the price imports from inflation-affected countries. At the same time, Saudi can transfer inflation to its trading partners via oil exports. Additionally, the domestic price is largely influenced by the cost of non-tradable items that rely on a number of monetary factors. Normally, the price level, an indicator of inflation, is determined as a weighted mean of the cost of both the tradable and non-tradable goods (Engle, Granger, 1987, p. 252). Tradable goods rely on external factors such as exchange rates and world prices. The prices of non-tradable goods, on the other hand, depend on the domestic demand, which is a product of the domestic money market conditions. Thus, in a Saudi context, the external factors are the principal causes of inflation, which arises from the fact that the Saudi economy is an open economy with high import volumes from oversea markets. As a result, a rise in world prices and the fluctuat ion in exchange rates i.e. the Riyal against the Dollar stimulate inflation in both the short run and long run. Additionally, a rise in domestic demand in Saudi resulting from a sharp rise in oil prices, has also led to a rise of the inflation rate. Effects of Inflation in Saudi Arabia A small inflation rate or creeping inflation is a praiseworthy thing in any economy. In contrast, deflation tends to reduce domestic consumption as it makes households postpone expenditure by expecting a further drop in prices. This, in turn, influences firms to reduce their investment as the consumption rate declines. Subsequently, the national output begins to shrink resulting to unemployment and slow economic growth. Additionally, the real interest rates increase resulting to a credit crunch and massive defaults. Nevertheless, high inflation is problematic. It distorts prices of commodities adversely affecting savings and the value of earnings, which discourages investment. It also stimulates capit al flow into foreign assets and unprofitable real estate thereby affecting economic planning. Hyperinflation can trigger political and social unrest. Thus, an average, predictable and sustainable inflation rate is the ultimate goal of any monetary policy as it protects producers and consumers and encourages saving. Saudi’s experience with rising inflation has had profound effects on its economy Given the rise in inflation, the cost of living index (CLI) Saudi rose by an average of 9.9 % in 2008 indicating a rise in prices of consumer goods (Hasan, Alogeel, 2008, p. 34). The wholesale price index also increased by 9% over the same period, which indicates a further pressure on consumers. In particular, the inflationary pressures were felt in the food and beverage index that rose by an average of 14% in 2008. Large increase were evident in the cereal sector with rice, a key staple food for Saudi citizens, cooking oil and dairy products; all of which are imported from other coun tries. The trend reflected the global oil prices, which rose by an average of 38% during in 2007/2008 period, consequently raising transportation costs for food products. Furthermore, there has been a general rise in consumer inflation in Saudi’s main trading partners in 2008 occasioned by the global financial crisis. Indeed, the majority of Saudi’s main import markets have experienced a rise in the inflation rate with the inflation rate in the US (the utmost import market of Saudi Arabia Kingdom) rising from 2.9% in 2007 to 3.8% in 2008. The inflation rate also rose in other import markets including Germany (from 2.3% to 2.8% in 2008), India (6.4% to 8.3%), Korea (2.5% to 4.7%), and China from 4.8% to 5.9% (Dhakal, Kandil, 1993, p. 419). This general rise in the inflation rate in Saudi’s leading import markets triggered a price increase involving a broad range of imports including chemicals (rose by 14% in 2008), manufactured products (increased by 14%) and ma chinery and other equipment (rose by 6.2%). The Saudi inflation resulted to weakening of the exchange rates with leading currencies including the US Dollar against the Saudi’s Riyal. The current economic growth in Saudi began in 2003, but this did not translate to higher rents as much of the labor comprised of expatriates. However, in 2008, the rents began to rise because of the higher inflation rate. In particular, real estate and commercial establishments, which are in high demand, have registered increased rents occasioned by inflation. Inflation in Saudi Arabia from 1980 to 2010 The inflation rate in the Saudi economy has been low for the period 1980 to 2003 largely because of the oil boom experienced in the seventies. During this duration, the Saudi’s inflation rate fluctuated between a deflation and a small inflation with the average rate being less than 1% (Dhakal, Kandil, 1993, p. 421). However, since 2003, the rate of inflation has increased rapidly reaching a maximum of 11% in 2008. Then, between the last quarter of 2008 and the year 2009, it slowed down to an average of 4% in the aftermath of the global financial crisis. Nevertheless, the inflation rate began rising beginning in 2010 to about 6% currently. Thus, Saudi Arabia has a history of fluctuating inflation. In particular, the consumer price index in most of Saudi’s history has been low. In the period between 1990 and 1999, the consumer price index rose by an average of only 1.3% while from 2000 to 2006, it increased by just 0.1%. The slow inflation rate indicated several factors including the availability of low-cost imports, average economic growth, capital mobility and high flexibility of the labor market. Additionally, the fixed exchange contributed significantly to a lower inflationary rate. Serious inflation only started in the year 2007. In this year, the average consumer-price inflation rose to an average of 4% annually in the first quarter (from 2.4% reported in 2006) to a high of 6.5% in the last quarter of 2008. The consumer prices gathered pace in this year, resulting to an inflation peak of 11.1%. This weakened the exchange rates. Nevertheless, lending by commercial banks was expanding, and by the second quarter of 2008, it stood at 35% just like in all other GCC countries. Global Financial Crisis and the Saudi Inflation The global financial crisis in 2007/2008 resulted to a decline in the inflation rate in most economies including Saudi Arabia because it resulted to a decline in liquidity and demand. However, there are indications that the inflation rate will not return to a low of 1% as experienced in the 1980s. Already, the inflation rate started rising in 2010 despite government intervention policies eliminating any hopes that it will come down further. The Inflationary Spike in the 2007/2008 period (Government expenditure 2004-2009 as a percentage of GDP As shown in the graph, in the 2007/2008 period, Saudi experienced the highest inflation in the country’s history. The IMF identified various factors as responsible for this unprecedented inflationary spike. The rise in food prices by an average of 7% during this period resulted to a pronounced Cost of Living Index of 4%. The food products that experienced sharp rises in prices included; vegetable (rose by 12%), cereals (by 7%), fish (by 12%), legumes (by 30%) and meat products, which rose by 6% (Hasan, Alogeel, 2008, p. 38). The inflation in other countries (trading partners) is also considered responsible for this inflationary spike. Since it is not easy to disentangle the inflation involving the global food prices, it is a leading cause of inflation in Saudi Arabia. In 2007/2008, inflation was also felt in many countries including Germany, China, the US, which form the principal import markets of Saudi Arabia. The trends increased in the 2007/2008 period with the CLI standing at 9.9%. The Computation of Inflation in Saudi Arabia In Saudi Arabia, inf lation is computed by the Central Department of Statistics and Information, a government department that operates independent of the Saudis central bank, the Saudi Arabia Monetary Agency (SAMA). This department uses two different indices in computing inflation: the Whole Sale Price Index and the Cost of Living Index (CLI), both of which are surveyed regularly by this department. However, the inflationary trends and the labor productivity are not regularly surveyed (Mehran, 2009, p. 3). Historically, Saudi has had a low and stable inflation. The CLI, in the context of Saudi, incorporates the prices of a broad range of products. The CLI relies on a 1999 index (Hasan, Alogeel, 2008, p. 41) whereby approximately 44% of the CLI comprises of rental and food costs. About 10% of the goods or services included in the CLI are the goods subsidized by the government such as electricity and petroleum products. In Saudi, the prices of these subsidized goods are set, and as a result, they have no impact on the CLI. In Saudi Arabia, the central bank, SAMA, is responsible for stabilizing the prices and the exchange rates. In theory, the maintenance of exchange rates is given a priority by SAMA to price stability. For a long period, this has been the case in Saudi’s economy. The consumer prices only rose by an average of 1.3% in the 1990-1999 periods and only 0.1% during the 2000-2007 periods (Wang, Wen, 2007, p. 204). During these periods, the exchange rate remained relatively stable. The inflation rate during these periods was low attributable to cheap imports from import markets, flexibility in capital and labor markets and a moderate economic growth. Evidently, the fixed exchange rate lowered the inflationary rate. How Does Inflation Affect the Society, Firms and the Government? The effects of inflation in an economy are everywhere. It affects people, various firms or government economic agents in different ways. In any society, there are two broad economic groups: the flexible income group and the fixed income group (Keran, Al Malik, 1979, p. 11). During periods of inflation, individuals in the flexible income group gain while those belonging to the fixed income group lose. This arises because the price or cost of various goods and services is not uniform. Usually, during inflation, although the aggregate price level rises, the rate at which the cost of individual goods increase differs. In other words, the prices of some goods or services may rise while that of other goods remains relatively unchanged. The middle class and the poor, whose salaries are largely fixed even as the prices of consumer goods continue to increase. By contrast, people in the flexible income group including the industrialists, traders, speculators, businesspersons, and real estate developers, gain from the rise in prices of goods. Thus, the second category becomes rich at the expense of the first group. This means there is a net movement of wealth and income from th e poor in the society to the wealthy individuals. In general, the income group in the society that loses or reaps from high inflation is largely dependent on anticipatory practice of individuals. The individuals who anticipate inflation accurately, can change their buying, lending or borrowing practices to avoid either lose of income or gain wealth from inflation (Engle, Granger, 1987, p. 253). The effect of inflation on individuals is different, and as such, it is vital to discuss the effect on various groups separately Debtors and Creditors- In times of inflation, the creditors, in general, are adversely affected. The real value that they can get from money lent out is pegged on the inflation rate. On the other hand, the debtors benefit during periods of inflation as they pay significantly less than the amount they had borrowed in real value (Engle, Granger, 1987, p. 253). As such, inflation affects the creditors while favoring the debtors. Wage Earners – This group may lose or gain during inflation based on how their wages respond to increases in prices. If the wages appropriately respond to the rising prices of goods, then their wages may be pegged on the Cost of Living Index. If this happens, then the wage earners get protection from the adverse effects of inflation. However, more often, there is a delay between the rise in prices and the increase in the employee’s wages by employers, which exposes the wage earners to the negative effects of inflation. The Salaried individuals- Normally, white-collar jobs adjust to inflation slowly than other jobs, as they are performance-based and contractual. Thus, during inflation, individuals with white-collar jobs lose as their salaries are fixed. Fixed Income group of individuals- This group comprises of pensioners, persons under social security, and unemployment benefits among others. Additionally, the recipients of rent also fall under this category. They lose because the payment they receive is f ixed, while the prices of goods continue to rise and the value of money deteriorates. The Investors- The investors fall under the flexible income category; they gain from increased demand. During inflation, the rising prices mean that the company reaps more and more profits. Consequently, the value of the shares or equities held continues to increase as does the dividends. However, investors in bonds and debentures, which have a fixed interest rate, do not gain during inflation as they receive a fixed income even as the value of money declines. Businessmen and other Traders- This group comprises of real estate developers, producers and businesspersons. They gain during inflation as the prices of the goods or property they are trading in rises. At the same time, the cost of production does not increase in line with the prices. Thus, when the price of the trader’s products rises, the income also rises by the same proportion especially in the short run. For real estate developer s, the prices of land and property rise at a faster rate during inflation and hence they make a profit. However, prolonged instability in prices hampers accurate business decision-making. Thus, in the end, wages may rise and subsequently reduce the profits, which in turn would affect future investments. Agriculturalists and Peasant Farmers- This group include peasant farmers, property owners and agriculturalists with no land ownership. The property owners receive fixed rents despite the increase in prices; thus, they loose. In contrast, the peasant farmers gain, as they own land and cultivate goods whose prices keep on rising during inflation. In times of inflation, though the cost of production increases, the prices of agricultural products increase at a much faster rate (Nelson, Plosser, 1982, p. 141). In other words, the cost of farm inputs and land rates do not increase at the same rate as the increase in the prices of agricultural products. Thus, peasant farmers who own and cu ltivate crops gain during inflation as the general prices of food crops rise. On the other hand, agricultural workers who are landless and rely on wages paid by the owners of farms lose during inflation, as their wages remain the same even as the prices of consumer goods increase. Additionally, since they often lack trade unions to lobby for wage increment, they are losers during inflation. The Government- The government loses and gains during inflation as inflation affects the government both positively and negatively. As a debtor, the government gains from inflation through high interest paid by creditors, usually households. This arises from the fact that, â€Å"during inflation, the interest rates on debentures and government bonds remain fixed† (Engle, Granger, 1987, p. 254); they are not raised to offset the corresponding increase in prices. Additionally, the government through the tax levied can pay off its domestic debt. Inflationary finance obtained from the tax can help the government to fund its activities. As the level of income of employees in response to inflation increase, the government gains through taxation and levies on the incomes and goods. As a result, the government revenue increases as prices rise during inflation. However, the government can also lose through the rise in the salaries of public servants and the rise in the cost of financing public projects including infrastructure, healthcare and schools or educational facilities. Policies taken by the Saudi Government to Curb Inflation The decline in Saudi’s inflation during the 2007 world financial crisis was attributed to several reasons. Among them is the fall in prices of commodities in Saudi’s import markets, a reduction of oil prices, a reduction in domestic demand, and the rise in the Dollar value against leading currencies globally. However, the outlook of Saudi’s inflation indicates that inflation is likely to increase again despite the government policies to curb it. The expected rise in oil prices, which will result to increased public spending, prolonged dollar weakness, expected increases in world prices of agricultural products and the rise in public expenditure are among the factors that would lead to the rise in inflation again. The government policies in response to inflation have not been effective as indicated by the rise of the inflation rate since 2010. The SAMA tightened the monetary and fiscal policies during the inflationary spike. These included an increase in the value of reserve requirements for commercial banks and tightening of the treasury bills issues. However, the ineffectiveness of these measures prompted SAMA to change focus to exchange rate control especially the pegging of the Saudi riyal to the US dollar. Commentators made two observations; first, the pegging of the riyal on the dollar created imported inflation as indicated by the sharp rise in inflation during the weakening of the US dollar rela tive to leading world currencies (Kandil, Hanan, 2009, p. 7). In 2007, the US dollar’s Nominal Effective Exchange Rate i.e. its value against weighted value of principal currencies depreciated by 4.3% in 2007 compared to only 1.5% the previous year. This resulted to increase in import prices and subsequently on Saudi’s retail prices. The second observation regarded the monetary policy. The pegging of the riyal on the dollar limited SAMA’s policy options especially with regard to reducing credit and interest rates. If SAMA increased or lowered the interest rates without consideration of the US rates, then this will attract capital inflows, which in turn would result to a rise in the exchange rate. The 2007 financial crisis did little to dampen lending by commercial banks, which stood at 35%: an indicator that, Saudi’s economy was growing remarkably fast (Kandil, Hanan, 2009, p. 9). However, the rate cutting by the US during the same period meant that SAM A had limited options of redeeming liquidity growth to curb inflation. In particular, many policy options are available to the Saudi government to curb inflation. The first policy option involved government’s intervention in the determination of the prices of essential goods. The mechanism here involved price control of commodities especially food products. However, this presented a problem; it affected investment and affected the privatization program in a market economy. The second policy involved government intervention to prevent the rise of rents and real estate rates through the determination of the annual rent increases. However, this had the potential of affecting the real estate sector, reducing investments into the sector and encouraging capital outflow into other investment destinations abroad. Ultimately, this would create a shortage of real estate in the country. A third policy option involves delinking the evaluation of the riyal on the US dollar or raising its value to a higher level. However, this would enhance speculation on the riyal, which would hamper investment and the riyal’s stability. Other policies available include reducing the export of agricultural goods whose prices are high especially agricultural products. The mechanism here involves taxation to reduce the export volumes. However, this affects investments in production and agricultural sectors. Another policy option involves increasing the interest rates to discourage borrowing and encourage saving and reduce liquidity. However, this again affects investment as the cost of borrowing increases. The other policy option involves the reduction of the government expenditure especially in public projects. However, this hampers economic growth rate and recovery as distinguished projects are delayed. The Solution Provided for these Problems The policies implemented by the Saudi government were largely ineffective as the inflation rate, which declined to 4% in 2009 rose to 5 % in 2010 (Kandil, Hanan, 2009, p. 4) The solution provided here is to implement policies that curb inflation but do not affect the national economy or conflict with market mechanisms. The policies need to be comprehensive with fewer impacts on the market economy. In particular, maintaining the stability of the Saudi currency is paramount in curbing inflation. However, this does not mean fixing its value at a higher rate relative to other currencies. Instead, it implies not pegging the Saudi Riyal entirely on the US dollar as this affects the monetary policy especially when the value of the dollar, relative to capital currencies, declines. By not pegging the riyal on US dollar, agricultural goods will attract other investors dealing in other leading currencies, which would raise the world food prices. Additionally, this would result to increased domestic investment especially in the housing sector and ultimately raise the rent rates. However, the mortgage law, which has been propos ed, could serve to alleviate the rental pressures by discouraging investments in real estate and commercial buildings by encouraging investments in middle-level residential housing. Thus, the solution is two pronged: not pegging the riyal on the US dollar alone and the proposed mortgage law. Conclusion This paper involved a study of the causes and effects of inflation in Saudi Arabia between 1980 and 2010. This period showed a significant fluctuation of inflation due to both external and domestic factors. Evidence from the 2008 inflationary spike indicates that, external factors are the prime determinants of Saudi’s inflation; a finding that agrees with the fact that Saudi’s economy is an open trade economy with oil exports and import of many commodities from abroad. The rise in world prices, accompanied by the decline in the value of the US dollar relative to the world main currencies, helped trigger inflation in Saudi during the 2000-2006 period. Additionally, domest ic factors such as the rise in demand occasioned by a rapid rise in oil prices also contributed to the high inflation in Saudi. Nevertheless, the high inflation appears unrelated to money supply in Saudi’s economy. This could be explained by the observation that the riyal is pegged on the US dollar and, therefore, Saudi interest rate is consistent with the fed interest rates. As a result, the low interest rate involving the US dollar has led to low interest-rate effect on Saudi inflation. On the other hand, the low interest rate has presented challenges to Saudi’s monetary policy. Thus, in order to curb inflation in Saudi, monetary policies have to be formulated in a way that diversify the Saudi economy and encourage local output to cut down on imports. Also, reviewing the exchange rate policy by avoiding the pegging of the Riyal on the US dollar can be helpful in combating the high rate of inflation in Saudi. Recommendations To control inflation rate in Saudi in light of external factors, this paper proposes the following recommendations: The adoption of a monetary policy that targets the inflation rate. The fiscal and monetary policies should be based on the inflation rate framework so that the exchange rates and wages are adjusted in line with the prices. For this monetary policy to become successful, the government must reveal the inflation target to all citizens, investors and business community when presenting the national budget so that the interest rate of their savings is adjusted in this regard. Additionally, the Saudi Arabian Monetary Agency (SAMA) should show commitment in achieving target inflation rate by enhancing transparency in the computation of inflation. Period publications, which show the inflation rates and the deviation from the target inflation rates, can also be useful. The government must also illustrate the approaches of dealing with inflation and strategies of mitigating the effects of inflation, in order to cushion i nvestors and savers from unpredictable interest rates and prices. In controlling inflation or its effects, the government must not rely on policies that in any way affect the market mechanisms and force as this will affect liquidity. The government must undertake to increase the national output, especially of agricultural and food products to cut down on imports. The findings in this paper indicate that import inflation is largely responsible for the current high inflation in Saudi. Thus, by reducing increasing production, imports from inflation-prone economies will be reduced. Lastly, the Saudi government must seek a solution for the high rents for real estate and housing sector through the mortgage law. Otherwise, inflation and its effects will continue to affect the national economy. Reference List Alshathree, S. (2003). Determinants of inflation in GCC: Master Dissertation. Economic  Department, King Saud University, 12-25 Darrat, A. (1985). The monetary Explanation of Inflat ion: The experience of three major OPEC economies. Journal of Economics and Business, 37(16), 209-221. Dhakal, D., Kandil, M. (1993). The inflationary experiences of six developing countries in Asia: An investigation of underlying determinants. Applied Economics, 25, 413-425. Engle, R., Granger, J. (1987). Co-integration and error correction: representation; estimating and testing. Econometrica, 55, 251-276. Hasan, M., Alogeel, H. (2008). Understanding the Inflationary Process in the GCC Region: The Case of Saudi Arabia and Kuwait. International Monetary Fund Working Paper, 08/193, 33-47 Juselius, K. (1992). Domestic and foreign effects on prices in an open economy: The case of Denmark. Journal of Policy Modeling, 14(6), 401-428. Kandil, M. Hanan, M. (2009). Determinants of inflation in GCC. International Monetary  Fund Working Paper, 09/82, 1-9. Keran, M., Al Malik, A. (1979). Monetary sources of inflation in Saudi Arabia. Federal  Reserve Bank of San Francisco Economic Re view, 11-18. Mehran, H. (2009). Inflation in the Gulf Cooperation Council Countries and the role of oil funds in economic stability. Discussion Paper Series, Arab Planning Institute, 2-4. Nelson, C., Plosser, C. (1982). Trends and random walks in macroeconomic time series. Journal of Monetary Economics, 10(4), 139-162. Wang, P., Wen, Y. (2007). Inflation dynamics: A cross-country investigation. Journal  of Monetary Economics, 54(7), 204-231. This essay on Inflation in Saudi Arabia was written and submitted by user Azar1a to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

An Indie Authors Checklist for Self-Publishing on Amazon

An Indie Authors Checklist for Self-Publishing on Amazon Comic book, cook book, travel guide, childrens book, educational text, memoir, manga, or the next great novel †¦ youve decided to publish your book yourself and market it on Amazon, the worlds largest bookstore.In so doing, you will maintain creative control of your work and own your copyright. Print-on-demand means no minimum orders and your book will never be out of stock, as Amazon presents it to readers throughout a behemoth international distribution network.Since its owned by Amazon, Kindle Direct Publishing (KDP) is a likely choice for many indie authors. Publishing eBooks since 2009, KDP took over from CreateSpace last year as Amazons paperback self-publishing platform. Books published on KDP link directly to Amazon and earn up to 60% royalties on the set list price (minus printing costs), and 70% for eBooks.To make a self-publishing income stream a reality, you will wear a lot of hats and need to accomplish the 32 tasks listed below. Decide which jobs you can do yoursel f and which you will contract out. Use every business and artistic decision as an opportunity to reinforce your author brand.Write the book. Rewrite. Submit it to your critique group. Rewrite. Submit it to your beta readers. Rewrite. Hire an editor. Rewrite. Polish the final manuscript to a glossy sheen. This is the Body of the book.Decide how you want your book to physically look and feel. Stack up books you admire and study them. Educate yourself to the particular trim sizes, fonts and other characteristics that are conventional for different genres. Notice, for example, that young adult fiction doesnt have the same layout as narrative non-fiction.Hire an artist or graphic designer for illustrations, tables, maps or chapter heading designs. Or master Photoshop and do this yourself, ensuring all images are at least 300 dpi.Prepare the Front Matter (some of which is optional): the frontispiece, title page, copyright page, dedication, epigraph, table of contents, foreword or preface, prologue or introduction. You will print the books ISBN on the copyright page, so you need to acquire that and type the 13-digit number on the copyright page before saving the manuscript as a PDF file.Prepare the Back Matter (again, much is optional): epilogue or conclusion, appendix or addendum, chronology or endnotes, bibliography and references, list of contributors, endnotes, copyright permissions and acknowledgments, glossary, authors note (including contact invitation), teaser for the next installment in the series.Link the Front Matter, the Body and the Back Matter- thats your book!Design the book or hire a book designer. This is a centuries-old art form, not pages slapped between a cover. Every element from font type to chapter headings and scene-separating symbols is an opportunity to reinforce your story and your author brand.Format the book or hire a book formatter. Microsoft Word is capable of formatting many projects, though for multiple or complex manuscripts, its wor th learning Adobe InDesign. Formatting is a focused, detail-oriented task involving running headers, pagination, beginning chapters on a right-facing page, and banishing widows, orphans and unintentional blank space. Be thorough and consistent. Dont be intimidated by terms like recto, verso, kerning and leading. Youre an author- master the language! KDP Tools and Resources has a step-by-step formatting guide. You can format an eBook and a paperback with simple layout working off your Word document and templates from Kindle Create, a free desktop app.Turn your formatted book into a single PDF.Design the cover or hire a cover designer. Write the back cover copy. You will not know the precise width of the spine, until you have uploaded the interior of the book. Also, you will later obtain a bar code with a specific ISBN number and (optional) pricing information. The bar code will be printed on the back cover. So you will complete the cover design step later. KDP offers Cover Creator, a free tool to design a simple cover that meets Kindles specifications. Whatever your design method, choose simple elements so your cover will read well and stand out among Amazons thumbnail images.Plan the book launch campaign. Should your release date dovetail with Latvias Centennial Celebration, or something significant to your subject matter? Plan to get face-to-face with readers during the excitement of your new book release by planning a calendar of bookstore and library signings now. Write a press release and set up who will receive it and when. Prepare a list of reviewers who will receive advance copies of your opus.Amazon rankings are influenced by a flurry of sales activity in a short period of time, so take advantage of the initial hoopla to affect a spike in sales.Build or maintain your author platform. You want your book to arrive hot-off-the-press to fanfare! Dont let your social media presence lapse just because you are in formatting purgatory. Schedule six months of p osts in advance.Print bookmarks, display posters and flyers. Practice performing readings before an audience.Use your e-mail list to keep fans and readers in the loop, let them count down with you to the release date, and invite them to events.Make sure your browser is updated.Congratulations! If you have completed the above 16 steps, youve accomplished the work of a team of publishing professionals.At this point, you may choose from many print-on-demand providers. If your heart is set on a hardcover, for example, Ingram Spark would be a better fit than KDP. You can utilize both or several platforms to achieve your objectives. Research your options thoroughly for the best fit before committing your time and money or signing any agreements. Authors who select Amazons KDP will find the process to be straightforward and user-friendly. Onward!Set up your KDP account. Then, go to your Bookshelf and Create A New Title. Most of the info required is obvious, but Book Description, Keywords a nd Price should be carefully considered.Your 4000-character Book Description will appear on Amazon, and must catch a readers interest and motivate a purchase.Provide 7 keywords or short phrases that will make your book discoverable.Set the price.KDP offers authors the option to use their own ISBN (International Standard Book Number), purchase discounted Bowker ISBNs, or obtain free ISBNs with KDP Print as the imprint.Select trim size, page color, and cover finish, as prompted.Upload the PDF file containing your paperbacks manuscript, aka the interior.Complete the Cover Design (step #10 above) with the precise, required dimensions (front, back and spine) and bar code. Now that you know the books page count, ISBN, and pricing, KDPs Cover Template Generator will give you the covers exact dimensions and unique bar code.Upload the cover PDF file.Launch the Previewer. Any problems that will impact printing will be reported. Some errors will have to be corrected. Others may be ignored if y ou want to risk a suboptimal outcome. You may inspect a digital proof by downloading the Print Previewer, or order a physical proof, or both.Approve the proof and submit the files for a Manual Check. After your book passes, it is available for sale on Amazon.Kindle Create will format the manuscript file for an eBook, which is similarly uploaded, proofed, submitted, reviewed and published.Your KDP Bookshelf will show that your books are Live and Available for Purchase on Amazon! Purchase a quantity for your promotional needs. Savor holding your book in your hands and the effort it represents.Go to Amazons AuthorCentral.com and set up your Author Page- an important and potentially juicy component of your platform. Through this portal, add editorial reviews for your book, track book sales, see and respond to reader reviews, chat with your readers and fix issues with your book listings.Create your Amazon.com Author Page.Dont forget to create a direct link from your website to your books detail page on Amazon. Post this link on your social media sites.Get reviews! Potential readers may ignore a book that has zero reviews.Promote! Move up Amazon rankings with flights of intense promotional activity in a short period of time. Drop the price of your book for 5 – 7 days. Or invent a giveaway, hoping that many of the winner-readers will return a favorable review. Do a virtual book or blog tour. Learn more on KDP Select and Kindlepreneur.Deposit royalties. KDP pays royalties every month, approximately 60 days after the end of the month in which they were earned.Follow this checklist to self-publish on Amazon. Photo by Suzy Hazelwood from Pexels.Remember, as an indie author, you are the ultimate and only source for your book. If youre new to this, you may make mistakes. Correct them. You are not Simon Schuster. You offer an artisanal product, according to a savvy business model that maintains 60% royalties. Put forth your best effort and build ethical, personal re lationships with your readers and publishing associates.Further help: K-boards and the KDP Community.

Business-accounting information systems Essay Example | Topics and Well Written Essays - 1500 words

Business-accounting information systems - Essay Example The purpose of this report is to provide a company with an inadequate accounting system the basic elements of an accounting system and which computerized accounting system can provide assistance for the company. Accounting is the information system that identifies, records, and communicates the economic events of an organization to interested users (Weigant & Keiso & Kimmel, 2002, p.2). The identification process involves the recognizing economic events which create activity that affects the bottom line of a business. These activities include expenses, sales of physical goods or services, purchase of materials or inventory, payroll, accounts payables, account receivables, recognition of liabilities and equity investment transactions. The activities must be recorded in a book called the general journal which can be either manual or electronic. The general journal is a simple system which records transactions as two input transactions where a debit and its corresponding credit are recorded for every economic transaction. In all accounting systems the sum of all credits must equal the sum of all debits. The reporting of the financial results of a company is illustrated within its financial sta tements. These must be created at the end of an accounting cycle which is typically a one year cycle. The four basic financial statements are The Income Statement, The Balance Sheet, The Statement of Cash Flow and the Statement of Stockholders Equity. In order for a company to create the end result of the accounting system which is the financial statements, a series of procedures occur over the course of a year which is called the accounting cycle. Appendix A provides a flow chart which illustrates the 9-step process of the accounting cycle. The accounting discipline is self regulated and people practicing accounting must follow a strict set of standards which are called generally accepted accounting

Tea Party Movement Research Paper Example | Topics and Well Written Essays - 1250 words

Tea Party Movement - Research Paper Example It is quite easy to find analogues of the present phenomenon of Tea Party Movement in a recent American history - this is the relative success of Ross Perot in the Presidential Election in 1992 and the overall success of Ronald Reagan with his right-wing populist coalition which supported him in the election of 1980, and even Barry Goldwater’s presidential campaign, who lost the elections, yet mobilized a significant public support in his favor (Harris, 2010, p. 33). Nevertheless, TPM gives the impression of something very new. Its name – Tea Party, was borrowed from American history, as it is associated with American olden times and patriotic spirit. Growing tension between the colonies and the metropolis after the Boston Tea Party eventually led to the War of Independence. There is a clear relationship between the Boston Tea Party and the present one: people in Boston were protesting against arbitrariness of British political and financial elite and now people protest against the arrogant financial elite and the federal government and presidential policies all over America. This conservative movement, disappointed with the policy of the U.S. President and excessive, in their view, liberalism of the Republican Party, has strengthened its political position. According to the recent survey, the percentage of Americans who support the military campaign in Afghanistan fell to its lowest level since 2001.   The result is very unfavorable for Barack Obama, who actively plays the card of fighting global terrorism.  The situation looks even gloomier on the domestic political front, where the Administration has to struggle fierce critics of the health reform.  In other words, President Barack Obama has created the Tea Party Movement with his own hands, the movement, which expresses the most conservative views primarily of white middle- aged and middle class Americans and took its present shape probably in 2010. Moreover, it involved thousands of people who were totally indifferent to politics before. The nature of American politics has been dramatically rev olutionized by the Tea Party’s ability to politicize people who were previously apolitical. Having never felt any deference for elite opinion makers in the first place, the newly politicized Tea Partiers find it easy to turn their backs on them.  (Harris, 2010, p. 5) The initial impulse for its creation, apparently, was the adoption of the Paulson Plan by Congress in autumn of 2008, aimed at saving the largest U.S. banks at the expense of the state budget, that is, ultimately, taxpayers.  The law was adopted against the clear disagreement of the majority of voters. Disturbance by the actions of the political establishment, which rushed to rescue the fat cats at the expense of ordinary Americans, was very strong.  Around the same time another problem appeared at the center of public attention practically first – the state debt.  It was a kind of reality breakthrough in the mass consciousness.   Our political system is dysfunctional, Congress is unrepresentativ e; government is out of control and the political parties are part of the system, both of them. (Hillyer, 2009, p. 47) February 19, 2009, about 7 o’clock in the morning,  standing in the midst of stock gamblers and officials of the Chicago Mercantile Exchange, the editor of business news of CNBC channel, Rick Santelli, attacked the Obama administration’s plan to refinance mortgages. It was he who sarcastically said about Chicago Tea Party in July, advising all the capitalists to

Harlem Renaissance Essay Example for Free

Harlem Renaissance Essay I. Introduction The Atlantic slave trade caused the large movement of Africans across different parts of the world largely in the Americas, Europe, and Asia. This African Diaspora brought about eleven million of black people in the New World (P. Larson. â€Å"Reconsidering Trauma, Identity, and the African Diaspora: Enslavement and Historical Memory in Nineteenth-Century Highland Madagascar†). The descendants of those that were brought in the Americas, chiefly those in the United States working as slaves in the south, later experienced another diaspora: moving from the south to the north to escape the hardships brought about by intense racial discrimination. A large portion had settled in the city of Harlem, New York City which opened up a surge of excellent creative works done by blacks and became in vogue for some time. This period came to be known as the Harlem Renaissance, also variously known as the New Negro Movement, or the New Negro Renaissance. This was a period of outstanding creativity expressed in visual arts, writings, and music during this large movement of black population, wherein the African-American Diaspora has moved into larger cities. It changed the character of black American artworks, from conventional imitations of white artists to sophisticated explorations and expressions of black life and culture that revealed and stimulated a new confidence and racial pride. The movement centered in the vast black ghetto of Harlem, in New York City, thus the name of the movement. Harlem became the place of gathering for aspiring black artists, writers, and musicians, sharing their experiences and providing mutual encouragement for one another. The term Harlem â€Å"Renaissance† is a misnomer. If measured by quantity alone, it was more a birth than a â€Å"rebirth†, for never before had so many black Americans produced so much literary, artistic, and scholarly material at the same time. If measured by quality, however, it was actually a continuum, the quickening of a lively stream fed earlier by the important works of poet Paul Laurence Dunbar, novelist and short story writer Charles W. Chestnutt, poet and novelist Hames Weldon Johnson and the essays of Du Bois. The Harlem Renaissance created a significant breakthrough, wherein it marked the first time wherein literary and artistic works done by African Americans gained in national attention and interest. Doors of opportunities were opened for such works to be publicized and presented to the general public, which before were not possible. Although its main achievement is found primarily in literature, it also bore the great African-American works in politics and other creative mediums such as visual art, music, and theater that explored different aspects of black American life (R. Twombly. â€Å"Harlem Renaissance†). II. Background and Discussion During the early part of the 1900s, Black Nationalism and racial consciousness began to emerge particularly during the 1920’s. One key factor that helped this development was the surfacing of the black middle class, which in turn were brought about by the increasing number of educated blacks who had found employment opportunities and a certain degree of economic advancement after the American Civil War (â€Å"Harlem Renaissance†). During World War I, thousands of black people left the depressed rural South for jobs in northern defense plants. Known as the Great Migration, more African Americans established themselves in cities such as Harlem, in New York City. They were socially conscious, and became a center of political and cultural development of the black Americans. This population created racial tensions over housings and employment that resulted in increased black militancy about rights, including vigorous agitation by the national Association for the Advancement of colored People (NAACP) and other civil rights organizations. Foremost for this black movement’s agenda, which was expressed in various mediums, is to clamor for racial equality. Championing the cause were black intellectuals W.E. B. Du Bois and Alain Locke. White responses to these developments were both negative and positive. The Ku Klux Klan and other white supremacist groups reached their peak of northern popularity during the 1920’s. At the same time unprecedented white interest in racial maters created a large audience for black authors who began to settle in the district of New York City known as Harlem. Like other black ghettoes, Harlem was a new, untapped source of themes and materials, which partially accounts for its popularity among artists and intellectuals, but unlike other ghettoes it was a newly constructed, fashionable, residential section. Functioning as a kind of black mecca, Harlem’s excellent housing, its prestige, excitement, and cosmopolitan flavor, attracted a black middle class from which sprang its artistic and literary set. A. General Characteristics Not all works during this movement is militant in nature. However, participants and contributors in the Renaissance were intensely race-conscious, proud of their heritage of being black, and much in love with their community. Most of them, some more subtly than others, criticized racial exploitation. Partly as a tribute to their achievements and partly as a reflection of their racial self-awareness, the Renaissance members were collectively called â€Å"New Negroes†, also indicating that they had replaced the (largely white created) literary image of the comic, pathetic plantation Negro with the proud, busy, independent black man of the northern city. The â€Å"New Negroes† were generally integrationists, optimistically interpreting their own individual successes as harbingers of improvement in race relations. Acceptance from Harpers, Harcourt, Brace, Viking, Boni Livewright, Knopf, and other front-line publishers began coming through quick succession, boosting more optimism among African-American contributors of the Harlem Renaissance. Rather than depicting a new movement of style, the art during the Harlem Renaissance is united by their common aspiration of depicting and expressing in artistic form the African-American psyche and life. Common characteristics can be found among such works such as the birth of racial pride among black Americans. This called for tracing its roots and origin by taking attention and interest to the life of blacks primarily in Africa and South America. Also, such strong social and racial consciousness brought a strong desire for equality in the American society, both socially and politically. But one of the most common and significant characteristic of the Harlem Renaissance was the abundant production of a variety of creative expressions. Diversity was the main distinctive quality, brought about by an experimental spirit of the movement such as in music which ranged from blues, jazz, to orchestra music. B. Primary Artist of the Harlem Renaissance:   Aaron Douglas (1898-1979) The celebrated artist of the Harlem Renaissance was Aaron Douglas, who chose to depict the New Negro Movement through African images which bore â€Å"primitive† techniques: paintings in geometric shapes, flat, and rugged edges. In his works, Douglas wanted the viewers to know and recognize the African-American identity. As such, Aaron Douglas is often referred to as the â€Å"Father of African American Art†. Born in Topeka, Kansas, Douglas was able to finish his B.A degree. Moving to Harlem in 1925, Aaron immediately set to work, creating illustrations for prominent magazines of the Harlem Renaissance. Douglas was influenced in his modernist style under the tutelage of German artist Winold Reiss, a style which marked most of his celebrated works and incorporating both African and Egyptian strokes of illustration and design. It was Reis who encouraged Douglas to take African design into his works which became his trademark (â€Å"The Harlem Renaissance: Aaron Douglas†). Such manner of African â€Å"primitive† style caught the attention of the main proponents of the Harlem Renaissance, namely W.E.B. Dubois and Alain Locke who found Douglas’ works as an appropriate embodiment of the African-American heritage. They were encouraging young artists to depict their African legacy through their artworks. Even though at a time when DuBois stilled considered Henry Tanner more important, Douglas has fairly established a reputation as the leading visual artist of his time. Harlem Renaissance painters are united by the desire to promote and portray the life and condition of blacks, particularly African-Americans. However, at this point the similarity ends. Harlem Renaissance artworks are as varied in style as the artists themselves. Although like Douglas, most painters of this period received formal trainings and as such, their style and strokes are no different from other non-black artists. What only separate the artists of the Harlem Renaissance from others are their themes and subjects. III. Conclusion A. Ending and Significance As a conclusion, one of the strengths of the Harlem Renaissance was also a serious weakness. Because they were dependent on white patrons and viewers for popularity, black artists were not fully free to explore the mechanisms that perpetrated racial injustice, nor could they propose solutions unacceptable to whites. Furthermore, when the Great Depression dominated American life during the 1930’s, the whites, who had been the bulk of the Renaissance audience, concentrated on economics and politics, oblivious to black American suffering. American arts and letters took up new themes, and although the best artists continued to work, they ultimately lost popularity. The Great Depression drove many black artists to scatter; and were mostly forced to leave New York or to take other jobs to tide them over the hard times. Creativity was drowned by necessity. Nevertheless, despite its many weaknesses and disadvantages, the Harlem Renaissance was a milestone in black American culture and the basis for later achievements.

protest song report :: essays research papers

Report on Protest Song 'This Bomb has Got to Go' by Peggy Seeger and Ewan MacColl. Peggy Seeger and Ewan MacColl were popular Folk musicians prior to and during the Vietnam War Era. They had a love of humanity and a great desire for justice and peace in the world. The subjects of their songs were real people in a real world. They wrote and sang about survival. Their lyrics were simple and sometimes traditional melodies formed the basis of their songs. Their musical equipment was mostly acoustic and they performed to large audiences throughout the world. They released many albums. A favourite peace march song around 1963 was 'That Bomb has Got to Go'. In this song Seeger and MacColl describe the feelings and relate the events surrounding the times of the 1960's when many nations were arming themselves for war and they warn of the dangers of using all bombs(including nuclear bombs)as weapons. This can be seen through such lyrics as 'fall out here and fall out there' and 'strontium ninety everywhere'. The song also describes their prophetic dream where the Prime Minister calls for disarmament in an over-crowded world and the Tories 'see the light'. The main points of the song tell about the size of the bomb and the number of people one bomb can kill. It tells of the hopes of old folk, children at school, and the newly-born Prince, all of whom have a plan to march to Trafalgar Square, London to protest 'That Bomb Has Got to Go!' The purpose of the song is to encourage the audience to take action and to attend the protest march which ends in the gathering of protestors at Trafalgar Square, London, where the politicians, the Queen, the Prime Minister would notice them and be forced to re-think their Defence Policies. The lyrics, 'I dreamed the Tories saw the light' and MacMillan (the Prime Minister) spoke in Parliament, 'let's stop this damned rearmament' indicate that the songwriters believed that their cause would result in successful disarmament and ban of nuclear bombs. Even the newly-born prince who could not yet walk was supposed to have said 'We're marching to Trafalgar Square, ... to declare 'THAT BOMB HAS GOT TO GO'. Because everyone, including babies and old folk were marching, the audience would have felt compelled to join in. They were being positioned to feel that it was normal to protest. The song appeals to all persons who want to see peace in an overcrowded world, to those who want to 'live to a ripe old age', and to those persons who practice 'the golden rule'.

Meaning of Life and Dream Boy Essay

â€Å"Dream Boy† is a song written by Natalia Genie, a high school student at A. S. T. Rafael Villeda, also known as â€Å"Faike†, was her inspiration. Faike was a 17-year old teenage boy who suffered from bone cancer. Faike was a very important person in Natalia’s life as well as in mine, and for many, many other people. During his struggles battling cancer, Natalia got inspired to write this song about him and his hard-hitting life fight. It’s a very emotive song, that has touched a lot of people’s hearts. It’s a song people listen to when missing or thinking about Faike. First, the title â€Å"Dream Boy† is an inspiration to believe in that no matter how hard life gets or how complicated it seems to be, you just can’t give up on your dreams. You have to dream big, try not to be so realistic in life. â€Å"I used to ask myself Why is this happening? Why were you the chosen one? And I used to believe that this was never goanna happen. But now I see it did† is the song’s lead. It tells you about how you never imagine someone you love and care about having a really severe and fatal illness. This verse represents the beginning of the journey when no one could understand that something so terrible could happen to someone so close to us and no one knew why it had to happen to him. The song continues with â€Å"And I bet it must be hard. And I know that you are strong. And you will stand up when you fall. † It’s a representation of the author having a conversation with Faike on how he inspires us and how proud we are of him because we all know his strength. Also, makes us realize that he is not a quitter and how he can fight to be in the top. The chorus goes like this â€Å"So Dream Boy, have faith in Him boy. He is taking care of you. So why don’t you dream, dream, Dream Boy. Why don’t you dream, boy dream. † It is one of the most important lines of the song that represents many things. When Natalia sings the word â€Å"Him† she is talking about God. Showing him God is by his side as well as all the people who care about him are. That God can make everything happen and we all should have faith in Him. She is also telling him to dream. Dream is a very broad word, but in this case it means to have faith that a miracle can come to light, to keep on living his life to the fullest. Also, that he should have big hopes and dreams and cancer can’t get in his way into becoming the best person he could be, and to achieve anything he wants in his life. â€Å"If you keep smiling your heart will brighten. And the joy will burn the pain. He gave you the heart of a lion to keep you strong and brave. † These verses imply if he gets all depressed about the fact he has bone cancer, he will even feel worse than the pain he has. So, if he believes that it’s over and that he lost his battle, he will worsen and feel that there is no point in even trying. Then again, if he lives like if the cancer was not there, he will feel better about himself and what is going on in his life. When the author wrote â€Å"Heart of a lion,† she gave double meaning to it. The first connotation is that the lion is the strongest in the animal kingdom, meaning he is brave, strong and a fighter. The second one is for his favorite team in the world â€Å"Olimpia,† being the lion the team’s mascot. â€Å"It’s a struggle what your going through. And you must fight with all your might. And I know that it’s scary and I know that it’s hard. But it’s fine. You’ll be alright. Cause he is by your side. He’s by your side. † These verse means that we really don’t know what he is going through but we know it’s harsh. It’s not something that is going to be cured from one day to another. It’s something really hard to get through and to battle with everyday of his life. So the only thing left to do is to fight with everything you’ve got. Besides all of that, he is going to be fine. If he dies, it’s going to be fine. It’s really sad, but he is going to be in a better place where pain is not felt anymore. If he survives, he will be with us and God will never leave his side. So he will always be fine, with or without us. â€Å"She is reaching out. They’re reaching out. We’re reaching out. You’re reaching out. He is reaching out. † Natalia uses the different pronouns to describe every different people reaching out for him. She is reaching out referring to Mother Mary. They’re reaching out means all the kids that are battling cancer all over the world. We’re reaching out is all the people that love him including family, friends, girlfriend and everyone praying for him. You’re reaching out refers to himself, Faike. He is reaching out means God. All for Faike to reach out for him to keep him going, to keep him trying; not to give up to win this horrible, painful, and ugly battle. In conclusion, â€Å"Dream Boy† is the song. It is Rafael Villeda’s song. Only for him, telling his life story and his tough battle. It symbolizes how strong he is, how a great fighter he is. When people listen to â€Å"Dream Boy† the only thing that pops in everyone’s head is Faike. Sadly Rafael Villeda passed away in November 20, 2012; it was the saddest day in a lot of people’s lives and we have this song to remember how strong of a person he was. He is an inspiration of perseverance and now he is our angel in heaven that showed us how to be a dreamer and a believer.