2009-2010 Inflation (Or Hyperinflation)

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation.

In economics, hyperinflation is inflation that is "out of control", a condition in which prices increase rapidly as a currency loses its value. Formal definitions vary from a cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month." In informal usage the term is often applied to much lower rates.

I think a lot of things will be much higher in price, including oil, next year or maybe later this year. But, don't confuse price with value.

If there is any economic recovery globally and the dollar is falling, we could see any possible price you want to imagine but, it would be in dollars, and not other currencies.

There are several analysts that are predicting a large drop in the dollar and that will even give the markets a boost. Using an extreme example, you could see DOW 50,000 by the end of the year if the dollar gets dumped but, while you would have seen over 40,000 more pts. you couldn't buy any more at 50,000 than now, if you sold it and probably a lot less.

The price of the DOW doesn't reflect value, just price. Oil is the same. If there is a recovery globally, oil demand will rise and with all the supply being cut now, it will cause oil to go back up for all nations but, if the dollar is falling, even if they don't pay more, we will. We could pay $1,000 a barrel or $10,000 a barrel or $1 million a barrel as that is what happens when a currency collapses.

For those who say that would crush our economy. Correct 100%. That too, is what happens when a currency collapses. The world basically moves on without you.

If that happens to the U.S. then the world will move on but much slower than before. Because we are such large consumers there is good news and bad news in that.

The countries that move on would find fewer buyers but, also less demand for copper, oil, steel, concrete, etc. and thus, they could still have profits even with fewer exports. They may not be large for years but, there are two sides to U.S. consumption. It drives up both the price of goods and the price of things to make goods with when we consume a lot.

Peter Schiff goes as far as to say the world's exporters would actually be better off without us increasing demand for raw materials so much due to our consumption.

However, just as it takes a depression for us to go from debtor nation to creditor nation, it will take a global recession at the minimum to go from a global economy dependent on us to one that isn't.

Consumption is touted as this big "cure all," but, it isn't. Production and making things faster than debt rises, is the cure all. Spending less than you earn, saving so you can spend in down times, budgeting, and sensible investing vs. "gambling" on stock moves is the "cure." Less government, not more, less government spending, not more, fewer programs not more at the federal level is what we need.

If we aren't already there then soon we will be more of a drag on the global economy than aid to it. Peter Schiff, if not right now, soon will be.

Think of it this way. You make things. I buy from you but, to keep buying from you, you have to keep loaning me money from what I pay you. To make it worse, I pay you back with devalued money so that you are even losing buying power with every new loan to me.

How long are you going to keep selling to me? You end up better off making something else and selling to somebody else or just making the stuff for "trade" and "sale" with people you buy your raw materials from.

In the last couple of years, one oil nation, Venezuela has done just that. It "trades" some of its oil instead of selling it for things it needs from nations that don't want to "buy dollars" to buy oil with and that have materials that Venezuela needs.

Iran stopped using dollars, too. It even got Japan to buy the oil it gets from Iran in Yen as well as sell in euros to other nations.

In short, there are no certainties going forward except that we have to change the way we run this nation from top to bottom.

Should You Start a Business During a Recession?

I say a resounding - maybe. Regardless of all the bad news spewed out in the media versus all the contrarians telling you to sink everything you have into marketing because nobody else is and you will get market share, it's not that cut and dry.

I suggest you stick to your plan of starting the business. HOWEVER, now more than ever, you should keep your day job.  It's not time for experimenting. If your new venture starts to succeed with part-time results then you could keep shifting your emphasis in that direction. But what if you don't see any results? Is it because you don't have a good idea or a good product? Is it because the economy is slow and nobody's buying? Or, are you in an industry that is not "recession proof" and one that ebbs and flows with the general economy?

What I am saying, is that it's difficult enough to run a business and gauge its success during normal economic growth cycles. Don't put yourself under undue pressure when you don't need to. Recessions are called that because business recedes to a lower level. That being said, there are some businesses that actually do better in a recession and there are some products that people still have to have. Collection agency is one of the first businesses that come to mind. Discount or coupon related marketing are another. And people always have to eat; just maybe not at a restaurant.

There are some things that you can do during the downtime to help you prepare for the time when there is a better business climate. Here's a few tips:

Network more. Find people who would be great for your company when you start hiring. They may be looking for a job then. Also, go out to lunch with an entrepreneur. Ask them what they are doing to keep their business growing during the economic downturn.

Purchase products you know you will need. Typically, in a recession, prices come way down and there are some bargains to be had.

Keep learning. You have more time to use to your advantage. Use it wisely. Increase your learning effort on all aspects of your business, including studying your industry and your competition. I don't advocate spending a lot of time being obsessed with your competition, but in this case time is on your side and not theirs. Perhaps they might want to get out of a part of their business and let you take it over. Sometimes, if the timing is right, a business will be happy to let go of a product line or group, just for taking over the expenses.

We Miss the Eloquence and Logic of Milton Friedman Now More Than Ever

One of the signal economic thinkers of the 20th century was the Nobel Prize winning economist Milton Friedman. His many books and papers, interviews and television specials have left us a valuable trove of thoughts and observations that should serve as guideposts during our current difficult economic times. His death has left a void that no contemporary thinker has been able to fill. That is most unfortunate, especially now.

Recently, I revisited my copy of Professor Friedman's signature work, Free to Choose. It is still as pertinent, fresh and poignant, as it was the day it was first published. His reasoned defense of economic and personal freedom, strictly limited government and the rule of law need to be reviewed and protected fiercely by each citizen that values these sacred rights.

"Thank heavens we do not get all of the government that we are made to pay for", stated Professor Friedman in one of his most oft quoted observations. The simple, but powerful clarity of these 17 words serve as testament to the deep understanding and concern he possessed about the ever-expanding role of centrally planned, distant government and the excessive price we pay for it. We see the detritus of insatiable government in every aspect of our lives, and yet, we seem incapable of slowing, preferably stopping the rapid growth of this corrupt, inefficient monster.

The Federal Government is nearing a 3 trillion dollar annual budget. No one really knows the exact amount of deficit spending we incur each year, but it is massive and growing. The more revenue the government realizes, the faster spending increases. We have un-funded liabilities of somewhere around $53 trillion for Medicare and Medicaid, and $25 trillion for Social Security. These are just estimates; no one can state the absolute accurate numbers. And, remember the government refers to these obligations as "un-funded liabilities", not debt as private citizens and industry would be required to report and account for.

In 1976, President Jimmy Carter created the Department of Education. Before then, education was largely a local affair. This boondoggle has grown massively since its inception in employees, budget, programs and un-funded mandates. Less than 7% of the $60 Billion annual budget for the DOE is returned to state and local schools as grants. The rest is consumed in "bureaucracy heaven". Can anyone seriously argue that public school performance has improved since we were blessed with the Department of Education and the thousands of theoreticians, consultants and knowledge brokers that this cesspool supports? You can actually graph the decline of graduation rates, the increase in truancy, lowered standardized test scores and achievement tests from the date we were blessed with the DOE.

The government enjoys natural monopolies in many areas. The Postal Service, the Passport Office, AMTRACK, The FAA, and so many more government agencies provide we citizens with one stop shopping. In every case, the result is subsidy, waste, and mismanagement. Waiting up to 90 days to receive a passport is ridiculous. The Postal Service and AMTRACK require subsidies every year, while FedEx, UPS, and the railroads make billions of dollars in profit each year. Why would any thinking person believe that government should be expanded into even more areas of our lives.

Thomas Jefferson, a soul brother to Milton Friedman said, "He is governed best who is governed least". And yet, an ever-growing segment of our citizenry constantly seeks to redress perceived grievances and personally poor decision making by petitioning politicians for outcomes favorable to their desires. We know with absolute certainty that government is too large, inefficient, duplicitous and wasteful to solve problems.

Government is not in business to solve problems: it is in business to institutionalize problems! Social Security, Medicare and Medicaid, Welfare, Food Stamps have all grown exponentially. The problems these programs, and many others, were supposed to address have grown even more exponentially. Bureaucracies are not in the business of solving problems and shrinking, then going out of business as they successfully complete their mission. The very core of the nature of a bureaucracy is to grow insatiably.

As more citizens abdicate their personal responsibilities and seek government support, there are all too many politicians, lobbyists, issue advocates and social engineers ready to comply and satisfy this sycophancy. We see many people campaigning for a government takeover of the health care system. When government provides free health care: that is when health care will get really expensive! How in the world can so many people, be so blind about so much.

My Company provides consulting services to inventors, small businesses and entrepreneurs bootstrapping businesses. By their very nature, these people are fearless, independent, creative and driven. They seek to take advantage of the amazing opportunities available to every citizen of the United States, if only they would take advantage of these possibilities. To a person, successful entrepreneurs do not understand, and usually despise government dependency. Simply being a citizen of this great country is the equivalent of winning the geographic lottery.

President John Kennedy famously stated, "Ask not what your country can do for you, ask what you can do for your country"? The growing sentiment today seems to infer, ask not what you can do for your country; ask what your country can do for you? John Kennedy, Milton Friedman and Thomas Jefferson are symbolic personages of a sentiment that must be revived. Every citizen must contribute to the public good, but the government must get out of the way and let the populace live and prosper by the dint of their own efforts. Downsizing this albatross is in order, and quickly!

Interview for "Multitudes at the Crossroads" Author F. J. Colberg

Reader Views welcomes author F.J. Colberg, as he talks about his new book "Multitudes at the Crossroads. F. J. Colberg is talking with Juanita Watson, Assistant Editor of Reader Views.

Juanita: Thanks for talking with us today F. J. Please tell us what your book "Multitudes at the Crossroads" is all about.

Frank: I want to thank you for the opportunity to present this project to your readers. The book examines the recurring cycles in history, nature, economy and how these cycles and tendencies are converging before our very eyes, with very serious implications. When the events of the Middle East, the race for oil and the emergence of China as an economic powerhouse, are examined carefully, we can only come to the conclusion that powerful hiccups are coming our way. Then the Bible's prophetic relevance comes to life, as the events we are witnessing are clearly foretold by inspired prophets. The book examines these events and their implications.

Juanita: What inspired you to write your book?

Frank: For some years now I have had a great deal of interest in history, economy and the social sciences in general, and as I read into these topics I began to observe an emerging picture of deterioration or entropy, if you will, in our social fiber. As I began to put my thoughts on paper, the tsunami hit, and a great sense of urgency came over me. It was like a veil was lifted from my eyes and suddenly two plus two equaled four. Most people see the news, that is what the networks would have us see, not realizing that a tendency is clearly developing. I think most people don't give these topics more thought, out of a sense of impotence. Even though the book presents difficult times ahead, it also presents hope for a new world, without war, hunger and the suffering we are involved in.

Juanita: You talk about cycles and the effect they have on modern times. Can you explain how and why history repeats itself in this way?

Frank: Everywhere we look we can observe patterns that are continually repeated. We know that after the darkest night, the sun will rise. Seasons come and go with regularity. So too with most things that affect human nature. After a terrible war, think WWI , men spoke of it as "he war to end all wars". Well, we know that WWII was just around the corner. The cycle has been repeating for ages untold, so why would we not think that another, more terrible war is in the cards? If we look at empires we can mention Assyria, the Babylonians, conquered by the Persians, the Greeks, Romans and on and on until we come to our great nation. How long before the barbarians knock down our gates, is anybody's guess, but they will be there, in time. Somebody said, "the only thing that we have learned from history is that we don't learn from history". We can apply the same to weather patterns; we know that hurricanes have an intense period of activity and then a relatively quite period. We forgot and build on our coastlines as if the storms were never coming back. We will pay dearly for our forgetfulness as the pattern reasserts itself. We can say the same for economic times of prosperity and lack, yet we live as if there will be no tomorrow. Winston Churchill said something like "the further back we look in history, the more we see into the future". How true!

Juanita: What are some examples of things that are going on today that can be directly understood through the Bible?

Frank: Juanita, to many the Bible is nothing but an allegorical collection of stories that make for great bedtime reading. In reality it is more a message from beyond time and space, containing all the wisdom necessary to understand the world around us and not be confused by the events we are living. A clear example is the events of the Middle East. You do not have to be a Bible scholar to know that there will not be any peace there anytime soon. Without being a prophet I can confidently tell you that in the near future Israel's only ally, the US, will also turn its back on the Jews. But no matter what the Arab nations do they will not succeed in driving Israel into the sea. Not while God is in control. The same promise that brought Israel back to the land in 1948, will keep her there, with much tribulation, until the Lord returns.

Juanita: What other significant examples are of most concern to you?

Frank: We know that nature will go thru much despair, and this in turn will mean famine, plagues and then, political unrest as never before. The book of Revelation goes into great detail of these not so distant events. There the picture is of four horsemen, one being a great political figure that will appear to bring peace and solutions to the troubled world, but instead will make the likes of Stalin and Hitler pale by comparison.

Juanita: How did those that prophesized our future in the bible, know what would happen in a time so far away?

Frank: This is the part that is most difficult for most to accept. The only explanation I know of is that the Bible is the inspired revelation of a God outside our limited dimensions, reaching out and revealing Himself to us. We know that the Old Testament was in existence as an integral document, translated from Hebrew to Greek 300 years before Christ in the Egyptian learning center of Alexandria. Yet it gives hundreds of prophesies about Jesus' coming, some as specific as to the sleepy village He would be born in, named Bethlehem, and that He would be crucified, in death, when that barbaric method of capital punishment was not yet being used. So the difference of hundreds of years as opposed to a couple of thousand, just places the revelation outside of the constraints of time.

Juanita: What is happening politically worldwide and how has this been prophesized in the Bible?

Frank: For one thing we know that the problems are getting more complex by the day. Wars are a different monster with the proliferation of weapons of mass destruction. Al Gore is not the only one concerned about Global Warming and all its implications. This all translates to a greater need for effective leadership, something that is more difficult as more polarized positions need to be bridged. Going back to history, we see that the great dictators of our times - Mao, Hitler, Stalin - all flourished when the corresponding societies were in shambles. Humans have a great need for paternalistic protection. So when things get really ugly we seek refuge in a strong hand that promises to pull us thru. The Bible speaks of a world dictator that will rule a "one world government" that promises peace, as well as a solution to currency instability, identity security and food and energy shortages. This guy is not going to play by anybody's rules, but his own. We have been warned.

Juanita: The Middle East is one of people's biggest topics of concern. What is the significance of the happenings in this region and how does it pertain to the Bible?

Frank: The Bible warns that Jerusalem would be a heavy burden to the nations. We are witness to this. To most people world wide the solution is to do away, somehow, with Israel as they are to blame for all the hostilities. They are in a no-win situation. They concede land for peace and only manage to get attacked from closer to their own territory. The Bible says that it all began in that region of the world, and it will all conclude there also. The prophet's description is of a terrible war that will bring all the armies of the nations for one final battle, Armageddon. Nuclear exchanges will take place; how long before one madman releases his trump card in desperation? It's only a matter of time, and it's running late! Ultimately the Bible describes these events as necessary to usher in Jesus' return before we wipe ourselves off the planet.
Juanita: What do you think has ultimately caused the downward spiral that seems to be happening globally in these times?

Juanita: All these events, political, environmental and social, are tied in together with man positioning himself as the center of the universe. Global warming and the ecological situation is related to the disregard of responsibility to a higher authority, as in the creator; after all, if we are the result of one Big Bang, so let another bang fix it, or not. Corporate and governmental corruption are the natural result of our own unchecked greed, why not, are we not the center of the universe? And if we are, what difference, if it feels good...just do it. When everything became relative, our own destruction became inevitable.

Juanita: What is your understanding of the Apocalypse?

Frank: This is just the picture of the future events that the prophet, John was given to keep the church aware and out of the dark, as God's ultimate plan of redemption is played out.

Juanita: What are some of the distressing events soon to occur that will greatly change our way of life?

Frank: Jesus himself described a time that the distressing factors would be like "birth pains". The implication here is that events of a troubling nature would grow in intensity as well as frequency. If we look at earthquakes, tsunamis, heat waves, crop failures, terrorist attacks and any other troubling event, we find that they are increasing in frequency and intensity. If we look at the situation with oil, most experts agree that the best is behind us, with all sorts of implications for a society that lives by and thru oil. Any isolated event like Katrina in New Orleans has great repercussions throughout. A combination of a few of these events, and our lives would be turned upside down, with little hope of recovery. A society without hope is a desperate society.

Juanita: What can we expect for our future? What advice can you give to those concerned about the state of the world today?

Frank: I think that once people begin to see where we are in regards to the times we are living, things can begin to change in our lives. Putting priorities in order is the first necessity in preparedness, and being prepared is our best hope of weathering the storm that is at the door. Many need to examine their spending habits, others draw closer to family. Ultimately, recognizing our dependence on Jesus Christ is the only safe harbor. I chose to believe the Bible, it hasn't been wrong yet.

Juanita: Your message has significant basis through the prophetic words in the Bible. Do you feel that one has to be a devoutly religious, surrendering to Jesus, to make it though these troubling times, or will others with diverse religious backgrounds also be safe?

Frank: Juanita, people who embrace the Bible as the true word of God, will cite Jesus' words that teach that "none come to the father, except by Him". Being in Jesus is the ultimate assurance of security for whatever life throws at you, disease, economic hardships, or the events to come. These trying times are God's way of calling our attention back to Him. The "great tribulation" is going to be particularly difficult for the Jews, who are a 'chosen' people. I believe that all will render an account in accordance to what they know. God gave man a conscience to guide him, and that conscience points to what is right and wrong above the religious rhetoric of different beliefs. A believer in Islam, who blows up innocent civilians, in an attempt to impose his cause, will have a hard time reconciling his conscience with his acts.

Juanita: Frank, you mentioned earlier that though your book presents difficult times ahead, it also presents hope for a new world, without war, hunger and the suffering we are involved in. What hope do you think we have in really turning things around at this point?

Frank: When I look at the events in the Middle East, the escalation of war and all the destruction that results, it is hard to be optimistic in of our own accord. The Lebanese youth are enraged at what they perceive as unjustified aggression. The Israelis, likewise. As the destruction adds up, the opportunities for reconciliation, the hope of living a 'happy, normal life', diminish with each missile. Desperation set in and you have a fresh pool of youth willing to blow themselves up, trading in a hopeless reality for the delusion of countless virgins in another existence. I do think that every effort should be put forth to address these problems- we should be seeking a resolution to political tension, we should be adopting children in Africa to stop the hunger, we should become aware of our environment and protect it in any way we can. We can make a huge difference in individual lives. As to turning things around, I don't think so. It's impossible to turn around a "Titanic", when impact is minutes away. But in the end, we have the certainty of a renewed earth, the unwavering promise by the same creator that fashioned this earth in the first place.

Juanita: What is the ultimate message you are conveying to readers through your book "Multitudes at the Crossroads"?

Frank: Look around you, do not be deceived. Things are not as rosy as some would want you to believe. Do the research, get your own answers. See what the Bible says, examine the prophetic record. Be prepared.

Juanita: Why do you feel so passionately about getting the message of your book out there?

Frank: I feel very passionate about this message because time is running fast. I see my own children, my students and friends, living like there is no tomorrow. There is much one need to do to prepare for a storm. Ignoring it will not make it go away.

Juanita: Who should read your book?

Frank: All those that are concerned with what they see in CNN. Those that have taken leave of their relation with God. Those that are seeking answers. On the cover it also addresses "the would be critic" because I run into many intelligent and educated people that have absolutely no knowledge of the Bible and discard it without as much as a thought. I think we need to continue to seek answers because the more we know, the more educated our choices. We all need a wake up call about now.

Juanita: Frank, how can readers find out more about you and your book "Multitudes at the Crossroads?"

Frank: Visit http://www.trafford.com/05-2503 . There you will be able to read excerpts from different chapters. They are the publishers, so the book will go out to you faster. Or you can buy the book from Amazon online on special order (it will take a little longer to get to you). If you would like to write to me, do so at fjcol@coqui.net.

Juanita: Thanks so much for talking with us today Frank. You have given us much to think about as we continue on in our daily lives. Do you have any last thoughts for your readers?

Frank: Education is expensive. Ignorance is so much more so. If you hide your head in the sand, you will miss the grandest of all times, the one just ushering in.

Business Confidence on the Rise

Despite failing economic growth and predictions for lower than average GDP growth in New Zealand, a recent report released by business consultant Grant Thornton illustrated that over two thirds of businesses are optimistic about the future outlook for their performance in 2010. The global survey interviewed more than 7,400 businesses across 36 economies for its annual International Business Report. The results are staggering compared to the same time last year where only 15% of those surveyed in New Zealand were optimistic about the outlook for 2009, compared with 66% for the upcoming year, resulting in New Zealand being rated the seventh most optimistic nation in the world. The turn of confidence is believed to be in part due to many New Zealand businesses, and their owners, scrutinising and streamlining their operations, becoming more cost efficient and effective.

With commerce confidence growing exponentially and key economic indicators showing signs that the worst of the recession is now past, there has never been a better time to peruse the market for a new business venture. Questions must be asked as to whether to start a business from scratch or to purchase an established business. With the high rate of failure of new business ventures, purchasing an established business can be a more secure and profitable method to take. Investing in a proven commerce model or an existing business with an established customer base, cash flow, suppliers and systemised operations can reduce the risks of the new venture, while securing instant income.

The question of where to identify potential opportunities in the market is best answered through the services of an experienced business broker, employed by a reputable real estate company. Business brokers are happy to meet and discuss your specific needs and requirements, assisting you in the process of matching your skills and experience with a trade that will compliment the knowledge base you possess. An excellent place to start is to peruse the website of the company that the business broker is employed by, identifying the various types, locations and price ranges of businesses available for sale in New Zealand. If there is nothing suitable to be found, your business broker will be able to network through their contacts in the industry and source a venture as per your requirements.

When deciding to purchase a business for sale in New Zealand, ensure that you assess the skills and strengths that you bring to the operation, and whether they correlate with the required skills for the successful operation of the business. Determine how much you are willing to risk, the budgetary limits you have, the hours you will work and the potential impacts on your lifestyle, market conditions and future outlook. Ensure that much care is taken with the due diligence process of researching the industry, its background and performance. Business brokers will be able to assist you with this process.

Alternative Tourism Strategies In The Sultanate Of Oman

The Sultanate of Oman is a country rich in Heritage and culture with a vast array of tourism attractions and natural beauty; making for a true Arabian experience. Yet, when holiday makers hear or think about Oman, the thoughts are often associated with a wealthy Oil rich country and not that of a holiday destination. This is where the need for a radical boost in Omani tourism stems from.

The Ministry of National Economy conducted a survey for both inbound and outbound tourism in 2001 and 2002. The results showed that in 2002, Oman received just over 1.1 million arrivals, of which only 35% were holiday markers. In the governments economic summary in 2003 'vision for Oman's Economy; Oman 2020' it was noted that Oil currently provided 40% of Gross Domestic Product (GDP), however by 2020 it is expected that it will fall to 20%, as Oman is not as rich in Oil as its neighboring gulf countries. The government is therefore seeking alternative sectors for economic growth and Tourism has been selected as one of the sectors.

At 1.7% of GDP the tourism industry has a lot of development to do, if it is to compensate for a lack of Oil in the Economy. Prior to the 1970's Oman was a closed and isolated economy, therefore new policies are encouraged to educate the world on its tourism gems. As a way forward, the government established the Tourism Ministry in 2004, to help address these issues.

Oman boasts a diverse range of well known tourist attractions such as archaeology, modern history, culture, traditional souks (Arabian markets) and architecture. The architecture in Oman ranges from forts to castles built by the Portuguese who colonised Oman for over a century until 1650. It seems evident that tourists are not aware of the other gems Oman has to offer, such as scuba diving and ecotourism.

I sought to speak to tourists at one of the grandest and first six-star hotels in Oman the Shangri-La Resort & spa. An English family stated the reason for their trip was they felt Dubai (their former holiday destination) had become too commercialised and crowded; Oman offered them a more relaxing holiday experience, with its vast beaches and hospitable natives. This is a unique selling point for Oman as the Tourism Ministry is focusing on quality rather than quantity of tourists, therefore attracting those that wish to relax in beautiful surroundings whilst respecting local customs. Oman also has an advantage over other gulf countries, with its comparatively temperate climate.

On the other hand, a family with differing interests were from Germany, as it happens they arrived in Oman on the spur of the moment and were not in fact aware of all the country had to offer. I then proceeded to tell them about one of Oman's little Gems, watching the Turtles nesting in the Wilayat of Sur; they were intrigued and keen to make a trip there. As these tourists would pay for sightseeing and ecotourism trips in addition to staying at hotels, they are therefore the market segment Oman should focus on; those that wish to experience the vast richness of the natural surroundings of Oman.

According to the inbound Tourism survey , 2002, some general figures on the average expenditure of tourists in Oman are as follows: The average tourist in Oman spends 83 Omani Riyals (OMR) equivalent to $215 USD. Europeans spend 147 OMR, Asians 81 OMR, Gulf cooperative countries 59 OMR, other Arab nations 78 OMR and the remaining tourists spend 152 OMR (equivalent to $380, $209, $152, and $201 USD respectively). It is hoped, that by diversifying the tourism attractions, Oman will encourage more tourists with a higher disposable income; yielding a higher average expenditure.

With the expansion of new hotels and developments in Oman like the Wave, the country will be able to accommodate for an increase in tourists and thus the demand for accommodation, spa's, golf courses and restaurants. The Wave is one of the largest developments in Muscat costing $900 million USD and is scheduled to open in 2008. It will be an extremely luxurious residential and tourist area, comprising of a golf course with 505 luxury villas located around it and around the beach, luxury condominiums, apartments and luxury hotels. It will also include a marina with a Yacht Club and moorings for 250 boats, a marina village with retail outlets, restaurants and an international market.

Although the wave is the biggest development in Oman, there are several other similar ones and no doubt many more to be developed in the future; thus accommodating for both expatriates and tourists.

Accommodating tourists in not an issue, however, keeping them entertained and gaining new holiday makers that would not have considered Oman, remains an issue. It seems the majority of tourists in Oman come to enjoy the relaxation aspect of the country, but if there was more of a focus on additional activities or even adventure activities, there could be a greater influx of tourism in the country.

The Tourism Ministry has sought new strategies to promote tourism by focusing on the ecotourism and adventure tourism sectors. By focusing on the potential for adventure tourism such as rock climbing, bouldering, diving, camping and also on ecotourism, we find Oman provides the perfect setting for those seeking adventure.

Rock climbing and bouldering Tourists coming from Europe will benefit from the warm climate for a climbing destination. With more than 160 climbs for all levels and with many unclimbed mountain limestone; it is the ultimate climbing experience.

Rock climbers can climb throughout Oman with its mountainous geography; more specifically they can take to the Musandam peninsula or Wadi Dhum in Nizwa (a few kilometers from Jebel Misht) which is both the highest cliff in Arabia and an established rock climbing arena. It is both an exciting and intriguing experience as the most remote Musadami settlements are accessible only by sea. The Musadami region with its sheltered fjords is a fantastic canoeing destination; it is also a fantastic diving destination. Alternatively, for those seeking diving destinations closer to Muscat, the majority of hotel resorts offer scuba diving. For those that require lessons the dive centre with its private secluded beach, runs PADI courses and also have several trips a day to the most beautiful diving spots. Alongside the specialised activities, tourists can enjoy water sports such as Jet skiing at most hotels.

Ecotourism is prevalent and protected in Oman; Oman is cited by the United Nations Environmental Program (UNEP) as a country with one of the best records in environmental conservation. Bird watchers will love Al Wusta with more than 130 species of bird; an estimated 372 species of bird nest or migrate through Oman.

Tourists that are looking for a new experience can make the trip to the Ra's Al Hadd peninsula, located in the Wilayat of Sur in the Sharqiya region. Oman is a nesting area for green turtles in the Indian Ocean and in Sur you will be able to witness the protected Green turtle as it lays its eggs, or if you're lucky you will see some hatchlings. Sur is the migration destination for 6000-13000 turtles that make their annual journey, from the East African Coast, the Red Sea to the Arabian Gulf. Additionally, Oman has a number of exotic and rare animals such as the Arabian oryx, the Arabian wolf, the gazelle, the leopard, the caracal lynx, taher and the striped hyena.

With the new strategies from the Tourism Ministry supported by the government, Oman should be well on its way to an increase, even doubling Tourism by 2010; resulting in an increase in employment opportunities in Oman by creating new jobs from construction to catering. The Omani infrastructure will be able to support the tourists and Oman's sense of identity will not be harmed by the government's approach of quality rather than quantity. By creating a unique mix of a tourism product for those seeking culture and adventure, Omani tourists will benefit from a truly Arabian experience.

Basics of Welfare Economics

Human beings are the building blocks of society. The societies agglomerate to make states. And then the nations are formed. The economy of a nation is the indicator of its prosperity. What the economy affects primarily are the people of a country. The technique, which uses the concepts of macroeconomics to achieve social goals, has been christened as welfare economics. Economics with all the data, tables, graph etc. can seem to be a very strict and rigid field. But the economists have now attached the human touch to the economic sphere too. Broadly speaking this field essentially involves the distribution of wealth among all the people and hence providing them with the buying capacity.

The need for this approach to study economics arises because of the increasing index of poverty. The people normally do not pay heed to the poor and the needy. There are increasing numbers of people involved in minimum wage jobs. They are employed but yet poor. The wage jobs do not cover the medical insurance or education for the kids. Now in this situation the person prefers to fulfill the need of a square meal then to go for the education option.

In a democratic set up it is seen that the welfare takes a high position in the agenda of the governments. This is, for one, required to ensure the votes. And secondly democracy has an influence of socialism and communism in it, thus the psyche of the government is for the benefit of the masses. America is known for being one such democracy. There are enough people to work for such causes.

The gamut of social welfare is very wide and anything can be brought under it. In one way it is provision of safety to the country's citizens. Safety from poverty, hunger, disease and many other things a social worker can think of. Now a very thought-worthy question arose when Ralph Nadar brought forward the concept of corporate welfare to the forefront, in 1956. This involves giving tax holidays and other regulatory leverages to the corporations. The debatable issue is that the corporate firms in a capitalist structure cannot be expected to work for the social welfare. And at every step the interests of society and the corporate seem to clash. The design of the corporate structure of the country should be such that it can cater to the needs of themselves as well as those of the society. Corporate governance jurisprudence is probably stemmed out of such conflicts.

The core issue of this problem is probably the distribution of income. The dichotomy on this count arises when one school of thought suggests the governmental influence on income slabs and the other theorizes that government should not at all be involved but it should be the sole discretion of the employer to pay the employees. The actual game lies somewhere in the middle. The governmental regulations do influence the wage schemes. The need of the hour is however, to check the accumulation majority of the wealth among a few hands.

The economic reforms to boost the grass root level employees too have to be brought because it is they who really are at the hem of the economic growth. The new approach is good from the point of view of the low-income people but a balance has to be struck between their interests and the interests of business giants.