Posts tagged "H."

A Balanced Strategy: Reprogramming Ngos and Enhancing Their Relevance as Development Partners in Sierra Leone

What should be the defining principle of the Koroma administration National Development Strategy is balance. President Koroma cannot expect to eliminate national development challenges through a unilateral political agenda, to do everything and coordinate everything based on his All People’s Congress (APC) party ideology. His APC party with its “corporate agenda” for Sierra Leone rolled over the incumbent Sierra Leone People’s Party (SLPP) in a run-off that reflected the expectations and desires of a majority of Sierra Leoneans for far-reaching socio-economic change, institutional reform and full inclusion of the mostly youth and indigenous poor. If Koroma is to succeed to reduce Sierra Leone’s grinding poverty and the creation of a more effective, inclusive and just state, however—and he must if his leadership is going to be different from the SLPP administration it replaced—he will need to set priorities and consider trade-offs and show understanding and offer support as he grapples with explosive issues of judicial reforms, corruption and development policy.

The strategy strives for balance in three areas: between trying to prevail in eliminating corruption in his government and preparing for other contingencies; between institutionalizing capabilities such as nongovernmental engagement and supporting the relevance of NGOs as development stakeholders and maintaining NGO’s existing organizational independence and strategic edge in terms of advancing national development objectives through community involvement; and between retaining those cultural traits that have made grassroots involvement in development work possible and discouraging behaviors of NGOs that hamper their ability to do what needs to be done. “In its broadest sense, the term “nongovernment organization” [NGO] refers to organizations (i) not based in government; (ii) not created for financial or material gain; but (iii) created to address concerns such as social and humanitarian issues of development, individual and community welfare and well-being, disadvantage, and poverty, as well as environmental and natural resources protection, management, and improvement” (Asian Development Bank).

Strategic Thinking

The Koroma administration’s ability to deal with performance problems of NGOs will depend on its capacity in handling corruption in government. To be blunt, to fail—or to be seen to fail—in addressing corruption in government would be a disastrous blow to the APC party credibility, both among party supporters and voters and among opposition adversaries. Sierra Leoneans want to see serious effort to address corruption and the injustices of the legal system in the country—and the people of Sierra Leone have lost all patience in this regard. Still, there will continue to be high expectations for Koroma’s zero-tolerance against corruption to be seen to work in Sierra Leone.

Given its endemic nature, corruption, poverty, and the tragic history of violence, Sierra Leone in many ways poses an even more complex and difficult long-term challenge—one that, despite a strong rhetorical effort, will require significant determination and commitment to punish drastically for crimes of corruption for some time. And given the country’s ever changing political game, the resounding victory of Ernest Koroma in the 2007 run-off elections could prove just another wrong turn along the road going nowhere. Sierra Leoneans have already started to question the leadership of Koroma, who in his inauguration in September 2007 announced his zero-tolerance stance against corruption, but “has not had a lot of luck with his cabinet” (The Africa Report). The instances of presumed corruption and shady dealings [the controversial Income Electrix power deal, the suspended Transport Minister Ibrahim Kemoh Sesay 700kg haul of cocaine deal, and the Attorney General Abdul Serry-Kamal Seventy Five Billion Leones Wanza saga] confirm the self-seeking and predatory activities of APC officials, “and that despite the best intentions announced by President Koroma, he [seems to] lack the moral standing and political backbone to implement his ‘zero-tolerance’ policy for corruption and his call for accountability of his cabinet” (The New People Newspaper).  Koroma still has to demonstrate he is following a drummer different from that of every Sierra Leonean leader of the past 45 years.

What is dubbed the war on corruption is, in grim reality, a prolonged, nationwide conventional campaign—a struggle between the forces of blatant corruption and those of moderation. Direct ACC engagement will continue to play a role in the long-term effort against corrupt officials in government and the private sector. But over the short term, a determined leadership may have to use draconian rules of engagement to ending corruption in Sierra Leone. Where possible, what the ACC calls prompt service in addressing corruption cases  should be subordinated to concrete measures by a strong presidency aimed at definitely promoting better governance, economic programs that spur development, and efforts to address the grievances among the discontented which justified the civil conflict that so badly destroyed the social fabric of Sierra Leone over the years. It will take the active engagement as well of NGOs in a collaborative effort over a long time to educate, rebuild and advance infrastructural development objectives.

Sierra Leone is unlikely to experience another civil war—justifiable by the injustices resulting from bad governance and rampant corruption—anytime soon. But that does not mean it may not face similar challenges in a variety of locales. Where possible, a government strategy is to employ indirect approaches—primarily through building the capacity of partner NGOs and their administrative processes—to prevent festering problems from turning into crises that require costly and controversial direct civil conflict. In this kind of effort, the capabilities of the government’s allies and NGO partners may be as important as its own, and building their capacity is arguably as important as, if not more so than, the partisan bickering the government has to deal with.

The recent past vividly demonstrated the consequences of failing to address adequately the dangers posed by bad governance. Rebel networks found sympathy among Sierra Leoneans and strength within the chaos of social breakdown. The small-arms infested State quickly collapsed into chaos and criminality and the worst of catastrophes befell the Sierra Leone homeland—towns and villages were reduced to rubble by rebel attacks as a result of the failed State. The kinds of capabilities needed to deal with such a historically dismal scenario cannot therefore any longer be played down with political rhetoric. Even the smallest of crimes of corruption should require stringent and uncompromising methods of investigations and punishment to avoid this failed State scenario. As Transparency International chair Huguette Labelle has noted, “Stemming corruption requires strong oversight through parliaments, law enforcement, independent media and a vibrant civil society. When these institutions are weak, corruption spirals out of control with horrendous consequences for ordinary people and for justice and equality in societies more broadly” (NGLS Go Between).

In many ways, the country’s national development capabilities are still coping with the consequences of the 1990s, when, with the complicity of the civil war, key instruments of the government of Sierra Leone regulatory mechanisms were reduced or allowed to wither on the corridors of power.  

“Sierra Leone has been a major recipient of foreign aid since the end of a devastating 11-year civil war in 2002. But government, donors and citizens are all questioning how effectively this aid is being used. Allegations of misappropriation of donor funds, both by government actors and NGOs, threaten this inflow. One of the government’s principal partners, the British Department for International Development, withheld aid in protest against such anomalies, for most of 2007 and early 2008 (Fofana/IPS, Freetown). Besides, the Government of Sierra Leone has not maintained a constructive relationship with NGOs.  However, the global push towards reducing poverty has created a new convergence among development practitioners and policymakers as the means of increasing access to new initiatives that will promote good governance and help reduce poverty. Citizen participation has increasingly been taken seriously to increase opportunity for lower income and other excluded populations whose interest are marginalized in classic representative institutions to influence policymaking processes. The government is beginning to appreciate the relevance of civil society in development—that community development lies at the heart of a strong, association-based civil society.

In this regard, the Koroma administration can assume more of the tasks of fostering effective collaboration with local and international NGOs for peace, security and development. To truly achieve victory as the High Level Forum on Aid Effectiveness defined it –“to bring new voices into a review of how aid is managed, and to sketch out a course for greater transparency, accountability and ultimately impact on the lives of the world’s poor—to attain a political objective” (Fofana/IPS, Freetown)–the Sierra Leone Government needs an NGO Coordination Unit whose ability to facilitate the diversion of huge donor funds to the NGO community is matched by its ability to use active evaluations and reviews as learning tools for itself and its development partners.  “The role of the Sierra Leone Association of NGOs (SLANGO), formed in January 1994, to coordinate NGO activities in order that efforts are not duplicated and resources not wasted” (BNET Business Network) has to be differentiated from what the NGO Unit at MODEP is doing; also to understand SLANGO’s relevance in development work.

Given these realities, the NGO Unit of MODEP has, however, been seen to make some impressive strides in recent years. “The revised National NGO Policy following the wide range of consultations held at national and regional levels with the involvement of all stakeholders especially the NGO Community, Line Ministries and Civil Society in the preparation of the policy [was a laudable effort]. The NGO Unit facilitated several meetings with other ministries particularly the Ministry of Finance, the National Revenue Authority (NRA), the Ministry of Labor and other stakeholders to discuss among other things: Duty Free Concessions, Resident/Work Permits and Taxation etc.” (NGO Unit/MODEP).

It can also be suggested that a New Development Operations Manual for a New National Development Strategy is developed to incorporate the lessons of recent years in NGO service delivery doctrine. “Train and equip” programs will allow for quicker improvements in the development capacity of partner organizations. And various initiatives should be undertaken that will better integrate and coordinate government efforts with civilian society agencies as well as engage the expertise of the private sector, including nongovernmental organizations and academia.

Organizational Problems in Perspective

Even as international NGOs hone and institutionalize new and modern management methods, the Sierra Leone Government still has to contend with the organizational challenges posed by local NGOs. The images of NGOs seen by many local people as corrupt and undeserving of support are a reminder that these Civil Society Organizations (CSOs) and their management processes do still matter.  NGOs in the country should be seen to improve their and several partners’ documentation of results, including the development of good monitoring indicators.

In addition, there is the potentially toxic mix of inadequate financial management of NGOs and inadequate reporting on budgetary issues to the Government of Sierra Leone’s NGO Unit. What all these problems portend is that the monitoring of development aid continues to be a major challenge for Sierra Leone and that a thorough framework of monitoring both recurrent and development activities must be put in place. The Government of Sierra Leone cannot take these organizational issues of NGOs for granted and needs to invest in the programs, platforms, and personnel that will ensure their relevance as development stakeholders.

But it is also important to keep some perspective. As much as the MODEP’s NGO Unit has come up with revised policy regulations with collated information in respect of funds disbursed by donors to NGOs for the implementation of programs it must be remembered that what is driving MODEP is a desire to exorcise the sloppy performance of NGOs over the years and to make them more relevant as development stakeholders—not an ideologically driven campaign to micro manage NGOs in the country. “Understandably, the logic behind massive NGO presence in Sierra Leone was to create a civic culture, pluralize the political, economic and social arena and bridge the gap between the masses and the State. So NGOs thus act as intermediaries between, what donors call ‘the unorganized masses’ and the State and are expected to represent the people and express their voices in policymaking. In fact, among NGOs is a small sector of voluntary organizations that genuinely monitor regimes, engage in advocacy on behalf of the poor and serves as watchdogs in ensuring that government contractors deliver services”.

It is true that the Poverty Reduction Strategy Paper (PRSP) with clear link to the Millennium Development Goals (MDGs) is the main focus of Government and its development partners. “The PRSP calls for pro-poor sustainable growth. However, achieving this means maintaining macro-economic stability IMF-style with low inflation and strict fiscal deficits, despite research by CSOs and development agencies which seriously question the poverty impact of these types of policies” (European Network on Debt and Development). NGOs’ participation was recognized in the process. NGOs could now play an active role in the implementation process by shifting their interventions and assistance from relief/humanitarian programs to sustainable infrastructural development programs. Answerability and transparency, adequate financial management and adequate budgetary reporting are to be the watch words in the new dispensation.

NGOs in Sierra Leone may have their organizational problems, but they can be quite relevant stakeholders in promoting people’s participation in poverty reduction programs. Use of funds has not been cost effective for most NGOs but the thematic areas most of these NGOs focus on (health, education, skills development, micro-finance, skills training, etc.), are relevant for the end users that are often poor and vulnerable children, youth and women. These are priority support areas that are in accordance with Sierra Leone’s development priorities and the PRSP as well international development agencies’ priorities.

Now that the performance bar has to be raised for the government and NGOs following their dismal performance in terms of handling aid money, the Sierra Leone Government must now endeavor to maintain a credible strategic relationship with NGOs through effectively evaluating, reviewing and monitoring their activities. Toward this end, the steps the NGO Unit at MODEP is taking to return excellence and accountability to NGO stewardship are commendable. Presidential and Parliamentary oversight may also be necessary for a more reliable and sustainable NGO Unit coordination effort.

When thinking about the range of strengths, weaknesses, opportunities and threats (SWOT) of non-governmental organizations as development partners in Sierra Leone it is reasonable to understand that NGOs come in many shapes and sizes. Data used in the SWOT analysis stem from multiple sources including statistical reports, literature review, regulations and policies, and research articles by NGO professionals. These findings should provide a valuable reference for the Government and the international development community who are interested in developing excellence in the civil society organization which interestingly can provide some feed back into the effectiveness aspects of the development analysis.

Strengths

Grassroots (local) NGOs

• Have a positive presence on the ground.
• Demonstrate ability to seek common ground and commitment to poor and marginalized grassroots populations.
• Enjoy confidence and trust of local populations.
• Have experience-based knowledge of cultural, political and socio-economic conditions of indigenous populations.
• Understand vulnerabilities unique to local beneficiaries.
• Can achieve extreme flexibility with fewer resources and lower costs.
• Possess valuable experience, content and fundamental working knowledge about local trade issues and business contacts in their field.

International NGOs

• Have global appeal and have developed industry-wide reputation for positive work.
• Good at generating and mobilizing resources and core competencies for their operations.
• Ability to resolve issues of legitimacy and to address political and policy constraints.
• Ability to harness expert opinion to influence public opinion and policy-makers.
• Have paid core staff to ensure the quality of project work.
• Possess valuable experience, content and fundamental working knowledge about international trade issues and the labor market and business contacts in their field.

Weaknesses

Grassroots (local) NGOs

• May have limited financial and expert resources to support end-user development.
• May have limited strategic perspectives and weak linkages with other actors in development.
• May have limited managerial and organizational capacities.
• May sometimes miss the big picture on macro perspectives on capital markets, economy and geopolitics vis-à-vis community development.
• Indigenous NGO operators may be prone to corruption.
• Because of their voluntary nature, there may be questions regarding their accountability and credibility.
• May have difficulty managing operations on financially sustainable basis.
• Are not sustainable on membership fees alone.

International NGOs

• Some advocacy NGOs working to influence the policies and practices of governments, development institutions have limited implementation capacity.
• Questions sometimes arise concerning their motivations and objectives, and the degree of accountability they accept for the ultimate impact of policies and positions they advocate. Sometimes accused of “selling out” when they work with government or corporations.
• May find it hard to placate or manipulate special interests.
•  Suffer fluctuations in maintaining non-profit donations revenue streams.
• May have limited experience with poor populations and operations may not reflect the needs of communities.

Opportunities

Grassroots NGOs

• Can effectively work with community partners to assess local problems and opportunities and to promote export development programs.
•  Ability to implement successful training programs and advance participatory development.
• Ability to integrate their local expertise and experience in health and education initiatives in community development programs.
• Can be clearing-houses for local trade information.

International NGOs

• Ability to work out credible partnerships with government and private corporations to mobilize public opinion to increase influence on poverty reduction programs and trade issues.
• Effective at bringing the voice of efficient organizational practices into NGO work in developing countries.
• Ability to contribute sector-specific expertise to help producers add value, improve quality and find new export markets.
• Quite familiar with political and social accountability mechanisms that complement their interventions and advocacy work.

Threats

Grassroots NGOs

• Isolated and poorly coordinated efforts may have negative program outcomes.
• Lackluster relationship with trade and export development corporations causing unsustainable initiatives and lack of trade development solutions.
• Lacks technical capacity to connect poor people with trade and export opportunities.I

International NGOs

• Tendency to ignore the voices of the poor represented by the experience and professional input of local agencies when defining the dialogue and public understanding of trade and development issues.
• Inclination to compete by lobbying against one another thereby distracting policy-makers on major issues.
• Often accused of hijacking the macroeconomic policy making dominated by technocrats and external consultants in the process.

Overall, by sorting the SWOT issues of grassroots (local) and international NGOs into planning categories one can obtain a system which presents a practical way of assimilating the internal and external information about NGO work in Sierra Leone, delineating short and long term priorities, and defining and developing coordinated, goal-directed actions, and allowing an easy way to build management teams which can achieve the objectives of development growth and the essence of civil society. In reality, as the philosopher Michael Ignatieff has noted “without civil society, democracy remains an empty shell”. One can expect to see the efficacy of Civil Society Organizations to influence members of the wider public that adhere to their values and beliefs to engage in development programs at State and community levels.

Therefore, notwithstanding local NGO’s relatively dismal record they are still clearly quite relevant to the development equation. NGOs strengths can be harnessed with well coordinated capacity building programs.  Conversely, international NGOs can develop a partner strategy of supporting and working through strong professional local partners as an effective tool for having a greater development impact than being a self-implementing agency. NGOs can also be very effective as learning organizations by providing important support to build their own staff’s and partners’ capacities, through individual training activities, annual partner meetings and conferences, learning exchange between partners, and partner self-assessments of training needs.  Moreover, NGOs can also be very effective with regular active evaluations and reviews as learning tools for themselves and their partners.

Just as one can expect learning should be at the heart of these organizations, so too, should the Government of Sierra Leone seek a better balance in the portfolio of capabilities it has—the types of programs against corruption in government fielded, the punishment in place for crimes of corruption, the training done.

Moreover, given the development challenges Sierra Leone is struggling with—and given, for example, the struggles to field up hospitals and clinics, schools and colleges, maintenance of urban and rural roads, and the HIV threats to the society—the time has come to think hard about how to institutionalize the capabilities of NGOs and get them adequately fielded quickly. The NGO policy modernization programs of the NGO Unit at MODEP should seek a 99 percent solution to the organizational limitations of NGOs in the country and to build the kind of innovative thinking and flexibility capable of supporting rigid development processes.

Sustaining Organizational Performance

The ability to fight corruption in government and empower NGOs sometimes simultaneously fits squarely within the finest traditions of good governance, more so because adequate financial management, including adequate reporting on budgetary issues is key to sustained organizational performance of NGOs. For most NGOs in Sierra Leone, unsatisfactory practices with regard to vehicle and fuel use, procurement procedures and weak financial reporting and accounting are weaknesses which are also typical issues in bad government. Improving documentation of results, including the development of good monitoring indicators is also essential for sustaining organizational performance. The non performance of NGOs is coming at a frightful human, financial, and political cost. There has to be organizational improvements in government so that NGOs can be more resourceful and relevant to the development equation.

One of the enduring issues the NGO Unit at MODEP’s struggles with is whether personnel and organizational systems designed to coordinate the work of NGOs in the country will be able to reflect the importance of advising, training, and equipping NGOs in Sierra Leone—something still not considered a career-enhancing path for the best and brightest organizational development experts.  Another is whether the revised policy regulations can be adapted well enough and fast enough to empower NGOs—or, more significant, to build the capacity of local NGOs to make them more resourceful.

One can make the argument in favor of institutionalizing NGO skills and the ability to conduct stability and support operations. This has to be done and is necessary for maintaining the current advantage of the relevance of NGOs as development partners. Apart from recent revisions of NGO policy regulations there has been no strong, deeply rooted constituency inside MODEP or elsewhere for institutionalizing the capabilities necessary to support NGO work in Sierra Leone—and to quickly meet the important needs of civil society organizations engaged in development work in Sierra Leone.

Think of the important work of NGOs in Sierra Leone.  NGOs often make the impossible possible by doing what governments cannot or will not do especially when new challenges crowd the national agenda. Increasingly, NGOs operate outside existing formal frameworks, moving independently to meet their goals and establishing new standards that governments, institutions, and corporations are themselves compelled to follow through force of public opinion.

Some humanitarian and development NGOs, for instance, have a natural advantage because of their perceived neutrality and experience. Amnesty International – Sierra Leone Section, for example, (as listed on the webpage directory of NGOs maintained by UNDP Sierra Leone promotes and protects human rights through advocacy and human rights education—maintaining documentation on human rights abuses and violations carried out during the ten year rebel war in Sierra Leone which proved helpful to the TRC in Sierra Leone. Other groups such as the Campaign for Good Governance (CGG) is a democracy-supporting NGO in Sierra Leone which promotes the building of democratic institutions, transparency and accountability in government, active citizen participation in the political process, voter education, human rights, and the rule of law. The Catholic Youth Organization (CYO) organizes religious, educational, social and cultural programs to meet the spiritual, mental and recreational needs of members. The Centre for Coordination of Youth Activities provides training in leadership, peace building, skills development, and community development. The Kailahun District Development Foundation (KADDF), a district-wide non-governmental organization offers viable solutions to the pervasive problems of poverty and serves as a clearinghouse for outside agencies interested in carrying out programs in the Kailahun district. The Sierra Leone Adult Education Association (SLADEA) helps to reduce the high rate of illiteracy among adults in the non-formal sector; to enlist the co-operation and support of other NGOs with a view to motivating various forms of people’s participation especially women and youth in national development; to achieve public recognition and support for non-formal education sector. FORUT’s thematic areas (health, education, skills development, micro-finance, skills training, etc.), are relevant for the end users that are often poor and vulnerable children, youth and women. Action Aid is one of the largest NGOs operating in Sierra Leone promoting food security through agricultural programs to ensure seeds are available and crop production continues.

There is no doubt, therefore, that modernization programs will continue to have, and deserve, strong institutional and parliamentary support. There has to be the enabling environment needed to make sure that the capabilities needed for the complex organizational issues of NGOs also has strong and sustained institutional support over the long term. The need for an NGO Unit establishment that can make and implement decisions quickly in support of NGOs working in Sierra Leone is necessary.

In the end, the NGO capabilities needed cannot be separated from the cultural traits and the management structure of the institutions the Sierra Leone Government has: the signals sent by how funds are managed, what projects are funded, what skills are used to implement projects and how personnel are trained. As Foreign Minister Lloyd Axworthy has said, “Clearly, one can no longer relegate NGOs to simple advisory or advocacy roles. . . . They are now part of the way decisions have to be made.”

As Yale professor Steve Charnovitz has observed, NGO involvement seems to depend on two factors: the needs of government and the capabilities of NGOs. A good democracy encompasses all NGOs which strive to create formal but flexible systems fostering dynamism and self-adjustment. NGOs ought to be a part of the alternative development paradigm, because the State, its institutions, and public policy, are unable to address a host of issues of underdevelopment all alone.

Evidently, there are many NGOs today in Sierra Leone in different shapes and forms with substantial amounts of donor and individual funds being diverted through them for developmental purposes. These NGOs are thought to be participatory, community-oriented, democratic, cost effective, and better at targeting the poorest of the poor, although in recent years, the nimbus of righteousness around NGOs has almost disappeared, and there is wide acknowledgement of their inability to deliver what is expected from them. Many lessons, however, about NGOs in Sierra Leone present themselves. Two of the most important are an understanding of organizational challenges and a sense of determination to change. The determination and national reach of NGOs has been an indispensable contributor to national peace and stability. The NGO Unit at MODEP should be clear about what effective organizational management by competent operators of NGOs can accomplish. No matter what their aims, all organizations share two things in common: They are made up of people, and certain individuals are in charge of these people. NGOs therefore need strong managers to lead its staff toward accomplishing development goals. And these managers are more than just leaders—they are problem solvers, cheerleaders, and planners as well.

Think of the intricacies of management, for instance. No matter what type of organization they work in, NGO executives are generally responsible for a group of individuals’ performance. As leaders, they must expect their fellow workers to work earnestly to reach common NGO goals. As the management guru Peter Drucker said, “Executives owe it to the organization and to their fellow workers not to tolerate nonperforming individuals in important jobs.”

In national affairs, “aid can work where there is good governance,” the United States Congressional Representative Lee H. Hamilton wrote in his book on – A Legacy of Honor: The Congressional Papers of Lee H. Hamilton, U.S. House of Representative 1965-1998 Indiana Ninth District, “… and usually fails where governments are unable or unwilling to commit aid to improve the lives of their people.” It is thus believed any responsible National Development Strategy for Sierra Leone should provide a balanced approach to enhancing responsibilities and preserving the relevance of NGOs as development partners.

Kenday S. Kamara
http://www.articlesbase.com/non-profit-organizations-articles/a-balanced-strategy-reprogramming-ngos-and-enhancing-their-relevance-as-development-partners-in-sierra-leone-741482.html

David Icke: The Global Spiritual Awakening Of Humanity Part 1/5

http://www.prisonplanet.tv

http://www.infowars.com

David Icke: The Global Spiritual Awakening Of Humanity

In an exclusive interview for Prison Planet.tv members filmed in Phoenix Arizona, lecturer and author David Icke explains how the panic-stricken elite are desperate to put the lid back on a global awakening that is stalling their agenda for world domination. Icke details how the irresistible force, the mass of humanity awakening to the global agenda, is coming face to face with what thinks it is the immovable object, the new world order.
Icke explains how drugs, toxic food and electromagnetic pollution are all being ramped up in a last ditch effort to dumb humanity down to a sheep-like mentality so they can be more easily controlled.
The biggest headache for the global elite is the fact that they are vastly outnumbered by humanity and thus are finding it more and more difficult to control populations, which is why they are pursuing genocidal measures of population reduction by attacking our immune systems via food, vaccines and other biochemical attacks, explains Icke, labeling ludicrous the fact that infants are being injected with no less than 25 different vaccines before they reach the age of two.

Icke also recalls his 1997 meeting with a CIA agent during which he was told that microchips had been developed that were so small, they could be injected through a hypodermic needle, and that this was planned to be implemented via mass vaccination programs.
Icke slams the swine flu scare as a complete scam, proven by the fact that patents for the vaccine were applied for even before the virus was discovered
Icke highlights how not only are large numbers of people waking up than ever before, but they are doing so at a staggeringly fast rate, expanding their horizons and realizing that they can rise above the confines of the prison planet and truly become spiritually free.
Icke predicts that 2016 marks the watershed date whereby the new world order will come crashing down, submerged under the wave of an empowered and enlightened humanity.

Duration : 0:10:21

Read more…

David Icke: The Global Spiritual Awakening Of Humanity Part 3/5

http://www.prisonplanet.tv

http://www.infowars.com

David Icke: The Global Spiritual Awakening Of Humanity

In an exclusive interview for Prison Planet.tv members filmed in Phoenix Arizona, lecturer and author David Icke explains how the panic-stricken elite are desperate to put the lid back on a global awakening that is stalling their agenda for world domination. Icke details how the irresistible force, the mass of humanity awakening to the global agenda, is coming face to face with what thinks it is the immovable object, the new world order.
Icke explains how drugs, toxic food and electromagnetic pollution are all being ramped up in a last ditch effort to dumb humanity down to a sheep-like mentality so they can be more easily controlled.
The biggest headache for the global elite is the fact that they are vastly outnumbered by humanity and thus are finding it more and more difficult to control populations, which is why they are pursuing genocidal measures of population reduction by attacking our immune systems via food, vaccines and other biochemical attacks, explains Icke, labeling ludicrous the fact that infants are being injected with no less than 25 different vaccines before they reach the age of two.

Icke also recalls his 1997 meeting with a CIA agent during which he was told that microchips had been developed that were so small, they could be injected through a hypodermic needle, and that this was planned to be implemented via mass vaccination programs.
Icke slams the swine flu scare as a complete scam, proven by the fact that patents for the vaccine were applied for even before the virus was discovered
Icke highlights how not only are large numbers of people waking up than ever before, but they are doing so at a staggeringly fast rate, expanding their horizons and realizing that they can rise above the confines of the prison planet and truly become spiritually free.
Icke predicts that 2016 marks the watershed date whereby the new world order will come crashing down, submerged under the wave of an empowered and enlightened humanity.

Duration : 0:10:41

Read more…

David Icke: The Global Spiritual Awakening Of Humanity Part 4/5

http://www.prisonplanet.tv

http://www.infowars.com

David Icke: The Global Spiritual Awakening Of Humanity

In an exclusive interview for Prison Planet.tv members filmed in Phoenix Arizona, lecturer and author David Icke explains how the panic-stricken elite are desperate to put the lid back on a global awakening that is stalling their agenda for world domination. Icke details how the irresistible force, the mass of humanity awakening to the global agenda, is coming face to face with what thinks it is the immovable object, the new world order.
Icke explains how drugs, toxic food and electromagnetic pollution are all being ramped up in a last ditch effort to dumb humanity down to a sheep-like mentality so they can be more easily controlled.
The biggest headache for the global elite is the fact that they are vastly outnumbered by humanity and thus are finding it more and more difficult to control populations, which is why they are pursuing genocidal measures of population reduction by attacking our immune systems via food, vaccines and other biochemical attacks, explains Icke, labeling ludicrous the fact that infants are being injected with no less than 25 different vaccines before they reach the age of two.

Icke also recalls his 1997 meeting with a CIA agent during which he was told that microchips had been developed that were so small, they could be injected through a hypodermic needle, and that this was planned to be implemented via mass vaccination programs.
Icke slams the swine flu scare as a complete scam, proven by the fact that patents for the vaccine were applied for even before the virus was discovered
Icke highlights how not only are large numbers of people waking up than ever before, but they are doing so at a staggeringly fast rate, expanding their horizons and realizing that they can rise above the confines of the prison planet and truly become spiritually free.
Icke predicts that 2016 marks the watershed date whereby the new world order will come crashing down, submerged under the wave of an empowered and enlightened humanity.

Duration : 0:9:18

Read more…

Globalization: an Islamic Perspective

This paper investigates from an Islamic perspective the consequences of globalization in general. To specify my argument in accordance with my understanding of Islam, I would strive to argue that globalization might be very harmful before society reaches maturity but very useful after that. Allow me a brief prefatory note about my methodology in this essay: in the first part, I provide many specifics about how Islamic texts and sources view the human being as God’s creation and his ultimate goal in the world. In the second part, after a brief definition of globalization, I apply the analytic method employed in the conventional literature of economics to show why the market mechanism fails to satisfy equality and eradicate poverty in the globalization era. Finally, I try to explain how a free but virtuous, mature society can satisfy equality throughout the world in this era. Obviously, my argument relates, to some extent, to normative aspect of economics. However, it does not follow the ideological methodology at all.

Let me begin by elaborating briefly on the ultimate goal of man’s creation in Islam, since this is so essential to understanding my argument.

The Human Being as God’s Creation

From monotheism, the pivotal pillar of the Islamic worldview, we can conclude that the universe is the best and perfect manifestation of God’s beautiful names and that there is no better alternative system to govern the universe. Indeed, this principle refers to the conception of creation. That is, God is like a secret treasure, so He creates and expands the universe not only to give a clue to His throne but also to reveal His beauty and His brilliance. Some facets of His attributes such as His majesty may manifest themselves in a deterministic environment such as with galaxies and other physical phenomena. There are, however, other facets of His characteristics such as His wisdom and His mercifulness that are impossible to manifest themselves except in indeterministic form.

There seem to be many common elements in the explanation of the philosophy of man’s creation in all Abrahamic religions of which Islam is believed to be a sequel and culmination. By investigating the quality of Adam’s creation, which stands as the symbol of human being in the Quran, we can infer the kind of status he occupies in the sight of God in Islam, as well as in other religions.

In the beginning the Lord addresses all the angels[1]that He wants to create a viceroy[2] on earth. This position will be held by man. The angels object to Him and say that He wants to create a vengeful and vindictive creature to commit crime and bloodshed on earth again! But God responds that He knows something they do not know. And so, God became engaged in creating man. And this is the point which symbols, loaded with profound anthropological connotations, come into being.

From a faithful Muslim point of view, God is the greatest and most exalted. Thus, with this providential address the mission of man on earth is clarified. That is, man’s mission on earth is to fulfill God’s creative work in the universe. Therefore, man’s first superiority is that he represents God on earth.

Since God wants to create a viceroy for Himself on earth, He must, as a rule, choose the most valuable and sacred material. Yet He selects the basest matter. In the Quran there are three references relative to the material that man was made of: from sounding clay[3], like unto pottery[4], and from mud[5]. Finally, the Lord blew His spirit into the dry mud and man came into being.

In the human tongue, God is the most sacred and exalted being so the spirit of God refers to the most exalted, and the noblest manifestation of His being, while mud stands as a symbol of the meanest and the basest thing. Accordingly, He blew His own Soul, not something else like His breath, blood, or flesh, into man in its creating process. God is the most sublime being and His spirit is the finest entity for which man can possibly have an epithet in his language.

Thus, man who was formed from mud and God’s spirit is a two- dimensional being. For unlike all other beings which are one dimensional, man is two-dimensional; one dimension tends towards mud, lowliness, sedimentation, and stagnation while the other aspires to the loftiest imaginable point possible. Thus man’s significance and grandeur lie in the fact that he possesses two poles: mud and the spirit of the Lord. It is up to man to choose where to go, towards mud or providence. And as long as he has not selected either of the poles as his fate, struggle will perpetually rage within him.

Another surprising point in man’s creation in the Quran is that God calls upon the whole universe that He has a trust to offer it, but everything refuses to accept this offer except man[6]. This is indicative of the fact that man possesses another virtue; that is, his acceptance of a trust that everyone else refused. This means that man is a representative of God in the universe as well as His trustee. As to what the trust is, Islamic scholars mention many things. Some of them such as Mawlavi and Shariati[7], believe that it is will and choice. I agree with that, however, it means much more than that. It means that man has adopted a great responsibility to personify all His beautiful names; individually and collectively. Of course, such responsibility requires the ability of will and choice.

Shariati (1981) says that the only superiority that man has over all other beings in the universe is his will. He is the only being that can act contrary to his nature, while no animal or plant is capable of doing so. It is impossible to find an animal which can fast for two days. And no plant has ever committed suicide due to grief or has done a great service. Man is the only one who rebels against his physical, spiritual, and material needs, and turns his back against goodness and virtue. Further, he is free to behave irrationally, to be bad or good, and to be mud-like or divine. The point is that possession of will is the greatest characteristic of man and it throws light upon the relationship between man and God.

Man is a viceroy of God on earth as well as His trustee among the universe, and the spirit of both quenches their thirst from the same fountain of virtue: possession of will. God, the only being in the universe, who possesses an absolute will and can do whatever He wishes, blew His spirit in man. Hence, man is capable of working like God (not on par with Him, only as an image of God), or acting against the physiological laws of his own nature. Therefore, as in the Old Testament[8], He has created mankind as a potentially perfect image of Himself. Obviously, this perfect image goes beyond the interpretation that some distinguished scholars have given it[9]. It shows that all God’s beautiful names may manifest themselves with man and human society. Consequently, it requires the ability to mastery and rule over the universe.

Two kinds of rationality

As mentioned above, according to my Islamic understanding, man is a two-dimensional being. During his spiritual evolution, he should pass from being mud-like to approaching God-like. In other words, God has invited him to pass through an important reference point, maturity[10]. Thus, we can imagine that he has two distinct parts of his life: an individualistic, selfish period (before maturity of society, when the real love is not the dominant flow in the society); and a God-like, selfless period (after maturity of society). Clearly, each specific period requires a certain and separate corresponding rationality. The rationality[11] discussed in the conventional literature of economics, which is based on a low-level self-interest, only corresponds with the period of childhood. Mainstream economics, based on Adam Smith’s invisible hand and the market mechanism, quenches its thirst from this fountain of rationality. In the next part, I will explain how the market mechanism increases the gap between poor and rich countries as well as the gap between poor and rich classes. That is, the more international trade and the more integration of financial markets, the more market failure and more divergent economies! However, when society evolves from selfishness and being mud-like to altruism and being God-like, this rationality will not be effective at all and will collapse instantaneously. The alternative and mature rationality creates a special dynamism for the economy which is very powerful and without any failures. The driving force of this rationality is still self-interest, but a high-level one rooted in being God-like.

I would like to refer to one verse of the Quran, which clearly argues that the individual desires derived from a low-level self-interest lead to harm and corruption[12]: “Corruption doth appear on land and sea because of which men’s hands have done, that He may make them taste a part of that which they have done, in order that they may return.” We may deduce this corruption is only a part of the consequences of what man has done as a result of his selfishness, and that there might many other bad consequences washed clean by God’s forgiveness. In other words, the invisible hand in an immature society not only is not able to optimize social benefits, but also it creates a great deal of harm and corruption that surpasses our imaginations. However, most of this corruption will be removed by the mechanism provided in the universe by God. The remaining corruption serves to warn the people and deter them from being selfish.

Due to self-interest maximization in immature society, we may also observe clearly many, many problems such as global warming and environmental destruction which will definitely jeopardize future life, while the market mechanism and its price signals fail to reduce these consequences, much less to motivate sustainable development.

Globalization and the issue of equality

In this part of my essay, I would like to show why globalization in the context of low-level self-interest motivation and based on the market mechanism may not lead to equality. Instead, it is biased to developed countries where there is located a complex of various industries and the benefit of economies of agglomeration can be utilized. To do this, it is necessary to have a brief definition of globalization first.

The definition of globalization

As globalization is a multi-layer concept and it has become a buzzword in recent years, globalization has already been defined in many ways. I, in some extend, agree with what Thomas L. Friedman defines globalization. He says: “it is the inexorable integration of market, nation-states and technologies to a degree never witnessed before- in a way that it is enabling individuals, corporations, and nation states to reach around the world farther, faster, deeper and cheaper than ever before, and in a way that it is enabling the world to reach into individuals, corporations, and nation states farther, faster, deeper and cheaper than ever before” (Friedman 2000, 9). He says: globalization “also has one overarching feature- integration. The world has become an increasingly interwoven place, and today, whether you are a company or a country, your threats and opportunities increasingly derive from who you are connected to. This globalization system is also characterized by a single word: the Web”(ibid, 8). This system is a dynamic ongoing process, with a driving idea of free-market capitalism, and “its own dominant culture” involving “the spread of Americanization” (ibid, 9). It has its own defining technologies, and is measured by its speed, “speed of commerce, travel, communication and innovation” (ibid, 10). He suggests that “globalization is not simply a trend or a fad but is, rather, an international system. It is the system that has now replaced the old Cold War system, and, like that Cold War system, globalization has its own rules and logic that today directly or indirectly influence the politics, environment, geopolitics and economics of virtually every country in the world” (ibid, IX).

What I want to focus on is strictly the economic layer of globalization. In my view, economic globalization refers to a completely different process of internationalization. Although in internationalization the cross-border relations between countries will increase, the nation-state institution will play the main role in the economies, they can still make economic policies and decisions. Economic globalization, however, refers to the process of removing government-imposed restrictions on movements between countries in order to create an “open”, “borderless” world economy’ (Scholte 2000: 16) so that the nation-state institution will be eradicated and no longer play no role in economy. Instead, the Transnational Companies (TNCs) will be the main players in the economy. More technically speaking, the nation’s Production Possibility Frontier (PPF) makes nonsense in the literature and there is only the worlds PPF and TNCs follow fragmentization policy in their production and distribution which is definitely alien from conventional international trade and international finance.

The Inevitability of Asymmetry in Globalization

According to mainstream economics, policies of openness through liberalization of trade and investment regimes, and capital movements have been advocated worldwide for their growth and welfare enhancing effects on the basis of the propositions embedded in the well-known economic theories of international trade and investment (i.e. the Ricardian comparative advantage theory, the Heckscher-Ohlin-Samuelson (HOS) model, the new trade theories of Krugman, or the model of intertemporal international borrowing/lending or portfolio allocation models). In these models, the main goal of openness is assumed to increase social welfare through: (i) static efficiency gains associated with improved resource allocation for national economies as well as for the world economy due to increased specialization; (ii) dynamic efficiency gains from such factors as economies of scale, diffusion of information, technology transfers, knowledge spillover effects as well as intertemporal trade gains from cross-border borrowing/lending for increased investment and consumption smoothing and portfolio risk diversification.

Convergence in accordance with international trade theories is still a serious dilemma. That is, there is no doubt that the level of social surplus will increase totally after free trade or integration of financial markets. However, there is a lasting concern regarding how these gains are distributed between trade partners; are they biased toward developed countries or at least unbiased. Mainstream economics’ theories including static and dynamic insist that international trade will reduce the per capita income gap amongst the open countries. For instance, one of the main theorems that derived from the static model of HOS Theory, implies that when the prices of the output goods are equalized between countries as they move to free trade, then the rewards of the factors (capital and labor for instance) will also be equalized between countries. Therefore we should expect that the increase of free trade due to globalization will reduce the North-South per capita income gap. The dynamic version of this model also suggests a convergent per-capita income trend between north and south countries.

To explain cross-country differences in economic performance, Matsuyama (1996) employs symmetry-breaking methodology. Symmetry-breaking creates asymmetric outcomes in the symmetric environment. It is the key concept for understanding self-organized (a.k.a. endogenous) pattern formations[13].

As a key answer to the increasing gap between North and South countries in the level of cross-country differences as well as the increasing gap between poor and rich classes inside the countries, Matsuyama (2005), rejects coordination failures as the key notion to understand these questions. Instead, he argues that such emphasis is misplaced; the key to understanding the diversity is symmetry-breaking. The notion of coordination failures is not only irrelevant but also misleading when thinking about diversity.

Quoting Matsuyama’s (1996) explanation briefly, it will be shown how globalization can be considered as an endogenous (or a self-organized) factor to create the inequalities.

He offers a model of the world economy, where many (inherently) identical countries trade with one another. It is shown that cross-country differences in the standard of living and in income appear as a stable outcome of international trade. According to his model, the coexistence of rich and poor countries is not just a possibility. It is an inevitable aspect of the world trading system. Although his model adopts many assumptions for the sake of simplification and concreteness, the logic behind the result is fairly general and can be understood intuitively.

Imagine that there is a list of goods that need to be consumed. Furthermore, there are some agglomeration economies in the production of each of these goods. In the absence of international trade, these goods must all be produced in each country. Without any innate difference across countries, each country produces these goods in the same amount, and there is no cross-country difference.

Now introduce the possibility of international trade in these goods. As different countries start acquiring comparative advantage in different goods, the production of each good concentrates into some countries, which leads to an emergence of a system of international division of labor. The stable cross-country difference appears as a result of ‘‘symmetry-breaking’’ in the world economy, caused by international trade. Some countries become rich if they are lucky enough to acquire comparative advantage in goods associated with large agglomeration economies, while other countries, those which happen to acquire comparative advantage in goods with small agglomeration economies, become poor. They fail to achieve a necessary coordination to reach a Pareto-superior equilibrium and find themselves in a Pareto-inferior equilibrium. The problems thus seem just a matter of coordination failures. The global perspective, however, offers a different view. The international division of labor requires different countries to take charge of producing different tradable goods with differing degrees of agglomeration economies. International trade thus creates a kind of ‘‘pecking order’’ among nations. Not all countries can be rich: some countries must be excluded from being rich, just as in a game of musical chairs[14]. At the same time, the model does not rule out the possibility that some (but not all) countries might succeed in overcoming the coordination failures, and becoming rich. This feature of the model makes it possible to talk about the effects of such an ‘‘economic miracle’’ in the world economy.

Since the economies of agglomeration requires the diversity of industries which produce intermediates available in the marketplace, we can conclude that only those countries which have already bypassed the threshold of diversity have a chance to be industrialized and reach to a Pareto-superior equilibrium. Hence, this shows how the phenomena of economies of agglomeration cause a symmetry-breaking to separate the otherwise identical regions into the manufacturing belt and the agricultural hinterland.

Globalization in Mature Society

To explain how globalization in mature society accomplishes beneficial goals, first we have to take into account the two following challenges:

1. The problem of static market failure: This problem arises mainly because of externalities (including public goods, pollution and common pool resources), transaction cost, asymmetric information (such as incomplete markets[15], moral hazards and adverse selection), as well as organization failures. The most common response to a market failure in the literature of the public sector is to use the government to produce certain goods and services. However, government intervention may cause non-market failure. Besides, as mentioned above, globalization causes nation-state eradication so there will be no effective government in such an era. Furthermore, I can hardly believe that international institutions are able to fulfill this responsibility, even if they were independent from the USA.

2. The problem of dynamic market failure: As Matsuyama showed accurately, international trade creates a specific chaos in the symmetric environment so that the operations of markets normally lead to increasing inequality across the countries over time. Likewise, inequality across inherently identical households is caused endogenously by symmetry-breaking. Matsuyama (2004) explains how the class structure is an inevitable feature of capitalism. Even if every household starts with the same amount of wealth, the society will experience “symmetry-breaking,” and will be polarized into the two classes in steady state, where the rich maintain a high level of wealth partly due to the presence of the poor, who have no choice but to work for the rich at a wage rate strictly lower than the “fair” value of labor. Hence, in the capitalistic context we may consider these increasing gaps –whether between countries or inside countries – as an indication of market failure in a dynamic version.

It is now necessary to show how mature society, using a different rationality, may bypass these challenges. This rationality formally is very similar to the conventional one. It is, however, very different in content. I would like to refer to a few verses of Quran related to this subject. God says: “Man has been created restless, so he panics whenever any evil touches him, and withdraws when some good touches him; except for the prayerful who are constant at their prayers and whose wealth comprises an acknowledged responsibility towards the beggar and the destitute; and the ones who accept the Day for Repayment.” These verses show sufficiently that the rationality that guides immature people is definitely different than that which guides mature people, although they benefit from the same potential characteristics. The main distinction between mature and immature is that the mature direct these potentials toward a transcendental personality which is beyond selfishness. They are concerned with all human beings’ needs in all generations rather than their own selves individually or at most their families.

It is very appropriate to ask about the driving motivation in this society. Of course, conventional self-interest cannot motivate people efficiently to be concerned about others. It is extremely in need of a stronger motivation based on an exalted worldview. This worldview should consist of specific beliefs that grant the greatest reward to the doer when he considers all people of all generations altruistically. As I understand, the mature society may not be blind and aimless. Society can achieve this reference point of maturity only when the true beliefs such as the belief in oneness of God, the Day of Judgment, Justice drive it entirely. Passing this reference point is a necessary condition, but divine love, which requires perfection in selflessness, is the sufficient condition for the maturity. In general speaking, love when it appears, has no room but for itself and the lover thinks of no one except the beloved. In other words, selfishness destroys love and it can never be considered as co-existent of love. Nonetheless, worldly love is too weak and ineffective to last and motivate society toward its transcendental goals. In contrast, divine love is quite sustainable and powerful. Since nature is the realms where God’s beautiful names are exhibited, divine love implies, in turn, love of the entire world and the whole creation particularly human beings, the most comprehensive fruit of existence. Therefore, love is at the core of the concept of mature rationality and creates a specific invisible hand to satisfy social benefits including prosperity and equality for all regions and all generations.

Now, allow me to explain how globalization might be useful in a mature world society. As mentioned above, a mature society is a society where all God’s beautiful names have flourished. Therefore, as God provides mercifully all necessary requirements for all creatures, in such a society, each person possesses a certain portion of natural resources consistent with his area of interest. All initial endowments are redistributed by lump sum among the people so technically speaking, all individuals move to the central points of Edgeworth’s box. All members subject to all generations’ benefits do their best to produce more and more creatively because they are His representatives. According to symmetry-breaking methodology, there is still some potential of asymmetry. However, people will share their incomes voluntarily to produce public goods and to reduce the existent gap.

The communist system is as far away as the capitalistic system from the system based on love. The lack of motivation in people’s activities as well as the inefficiency of government –especially when the size of society grows enough- are the essential issues in communism while there is no concern about them in mature society. It is because the people are mature enough to understand that more being active means being closer to God. Besides, there is no need for the presence of strong and big government because this society is governed by many small components of authority connected together in a world wide network. There is hardly conflict of interest between these components because selfishness is the main source of confliction while here the people are selfless. Moreover, they are tolerant and educated enough to avoid violence and to discuss their problems peacefully.

It should be noticed that the economy in mature society serves only as a means by which we can improve the level of virtue so that we are not allowed to sacrifice humanity and its dignity and virtue because of economic benefits.

Endnotes

——————————————————————————–

[1] Quran, 2:30: And when thy Lord said unto the angels: Lo! I am about to place a viceroy in the earth, they said: wilt Thou place therein one who will do harm therein and will shed blood, while we, we hymn Thy praise and sanctify Thee? He said: Surely I know that which ye know not.

[2] It shows very clearly the worth of man in Islam. Even the Post-Renaissance European humanism has not been able to bestow such an exalting sanctity upon man.

[3] Quran, 15:26, 15:28, and 15:33

[4] Quran, 55:14

[5] Quran, 6:2, 7:12, 23:12, 32:7, 37:11, 38:71, 38:76

[6] Quran, 33:72 Lo! We offered the trust unto the heavens and the earth and the mountains, but they shrank from bearing it and were afraid of it. And man assumed it.

[7] See: Sahriati (1981)

[8] Old Testament, 1:27-28 Elohim said, “Let us make humanity as our image, according to our likeness. And let them rule over the fish of the sea, the bird of the heavens, the beast, the whole earth, and all the swarmers which swarm on the earth. And God created humanity as his image: as the image of God he created him, male and female he created them.

[9] Thomas Aquinas (1976) located the image in the human ability to think and reason, to use language and art, far surpassing the abilities of any animals. Leonard Verduin (1976) says that the image consists in our dominion over animals and plants, which continues despite our sinfulness. Emil Brunner (1976) says that it is our ability to have a relationship with God, reflected in the tendency of all societies to have forms of worship.

[10] Quran, 90:10-17 And [Did We not] guide him to the parting of the mountain ways? But he hath not attempted the Ascent. Ah, what will convey unto thee what the Ascent is! (It is) to free a slave, And to feed in the day of hunger, an orphan near of kin, or some poor wretch in misery, and to be of those who believe and exhort one another to perseverance and exhort one another to pity.

[11] I will discuss the other kind of rationality which corresponds with mature period later on.

[12] Quran, 30:41

[13] For example, cosmologists wonder why the matter in the universe is distributed in clusters, leaving much of the universe empty. Earth scientists study the formation of wave patterns, such as jet streams, ocean currents, and continental drifts. Material scientists study phase transitions, how molecules aligned themselves when they reach the critical temperature. Molecular biologists ask how life began in the primordial soup of amino acids, and developmental biologists attempt to explain how living organisms acquire forms through cell division and morphogenesis (Weyl 1969, Prigogine 1980). Similar questions of pattern formations also exist in economics. Why are there rich and poor countries? Why are industries clustered? Why are there booms and recessions? Why are some ethnic groups underrepresented in certain jobs or neighborhoods?

[14] Musical chairs is a game played by a group of people (usually children), often in an informal setting purely for entertainment such as a birthday party. The game starts with any number of players and a number of chairs one fewer than the number of players; the chairs are arranged in a circle (or other closed figure) facing outward, with the people standing in a circle just outside of that. A non-playing individual plays recorded music or a musical instrument. While the music is playing, the players in the circle walk in unison around the chairs. When the music controller suddenly shuts off the music, everyone must race to sit down in one of the chairs. The player who is left without a chair is eliminated from the game, and one chair is also removed to ensure that there will always be one fewer chair than there are players. The music resumes and the cycle repeats until there is only one player left in the game, who is the winner.

[15] The theory of incomplete markets is an extension of the general equilibrium approach to intertemporal economies with uncertainty, where the set of available contracts which can be used to transfer wealth across time is limited relative to the possible probabilistic states that an economy might find itself in. Unlike in the standard Arrow-Debreu model where all trade takes place at beginning of time, in an economy with incomplete markets, agents trade in sequential spot markets.

References

The Noble Quran.

Aquinas, T. (1976), Man to the Image of God, in Millard Erickson (ed.), Man’s Need and God’s Gift: Readings in Christian Theology, Grand Rapids: Baker, pp. 37-43.

Emil, B. (1976), Man and Creation,” in Millard Erickson (ed.), Man’s Need and God’s Gift: Readings in Christian Theology, Grand Rapids: Baker, pp. 45-54.

Friedman, T. L. (2000), The Lexus and the Olive Tree, New York: Anchor Books.

Krugman, P. (1992),Geography and Trade (Gaston Eyskens Lectures), The MIT Press

Matsuyama, K. (1996), Why Are There Rich and Poor Countries?: Symmetry-Breaking in the World Economy, NBER Working Paper Series

Matsuyama, K. (2005), Structural Change, forthcoming in L. Blume and S. Durlauf, eds., the New Palgrave Dictionary of Economics, 2nd Edition, Macmillan (available at: http://www.faculty.econ.northwestern.edu/faculty/matsuyama/Structural%20Change.pdf )

Prigogine, I. (1980), From Being to Becoming: Time and Complexity in the Physical Sciences, Freeman, 1980.

Scholte, J. A. (2000) Globalization. A critical introduction, London: Palgrave.

Shariati, A. (1981), Man and Islam, Translator: Fatollah Marjani, Houston: Free Islamic Literature-Filinc.

Verduin, L. (1976), A Dominion-Haver, in Millard Erickson (ed.), Man’s Need and God’s Gift: Readings in Christian Theology, Grand Rapids: Baker, pp. 55-74.

Weyl, H. (1969), Symmetry, Princeton: Princeton University Press.

Nasser Elahi
http://www.articlesbase.com/ethics-articles/globalization-an-islamic-perspective-293758.html

Alex Jones Tv: A Decade of Tyranny

Loss of basic freedoms has spurred a mass awakening, next decade will be defined by restoration of liberties

Alex Jones, Steve Watson and Paul Watson

http://www.prisonplanet.com/

Tuesday, Dec 29, 2009

During the first nine years of the new millennium we have been witness to a rapid erosion of freedom. Our basic liberties have been systematically denigrated and diluted by a vast expansion of coordinated global tyranny.

The decade is not over yet, there is still another year to go, however, given that the mainstream media is obsessively compiling its own decade lists, we felt it necessary to draw up our own to highlight the major events that have shaped the world we now live in and the future we face.

It is important to stress the fact that while we have indeed experienced a decade of tyranny, we have also seen a mass awakening, an expansion of knowledge and an exponential increase in opposition to the agenda we have come to know as the new world order.
http://www.prisonplanet.com/the-decade-of-tyranny.html

Duration : 0:10:58

Read more…

Preemption of State Law Intentional Tort Actions Under the Airline Deregulation Act of 1978

After years of tight government control over the airline industry, Congress chose to pursue a policy of economic deregulation, enacting the Airline Deregulation Act of 1978 (ADA). Areas formerly controlled by the federal government, such as the awarding of routes, the entry of new air carriers, and the setting of fares, were left to the airlines and the free market to determine. Congress, concerned that States might attempt to circumvent federal airline deregulation through their own state enforcement actions, included an express preemption clause in the ADA, which bars States from enforcing laws “related to a price, route, or service of an air carrier.” This apparently innocuous provision continues to cause confusion and divide courts over exactly what causes of action are preempted by the ADA.

 

Top-ranked Chicago personal injury attorney, Matthew A. Passen, examines one class of state-law based actions, intentional tort claims, and considers whether such actions are sufficiently “related to” an airline “service” for preemption under the ADA. For example, can a passenger who was refused boarding on a commercial airline and strapped to an immobile chair in the waiting area sue the airline for false imprisonment? Can a passenger detained by airline employees upon landing of an aircraft, wrongfully accused of stealing another passenger’s ring, and arrested by police, seek recourse against the airline for false arrest, intentional infliction of emotional distress or slander? Can an airline racially discriminate against a passenger or airline employee with impunity?

 

As the following discussion reveals, the answer to these questions often depends entirely on how broad or narrow courts interpret the ADA’s statutory phrase, “related to a . . . service of an air carrier.” If a narrow reading is adopted, plaintiffs will have their day in court. If, on the other hand, a court interprets the preemption provision broadly, airlines will essentially receive immunity from state-law intentional tort actions.

 

Often, the best answer to such questions of statutory interpretation is found by reconsidering the purpose of the underlying statute containing the preemption provision. Here, the purpose of the ADA is straightforward: economic deregulation of the airline industry.

 

BRIEF HISTORY OF THE ADA’s PREEMPTION CLAUSE

 

Prior to 1978, the federal government heavily regulated the airline industry.1 Beginning with the Federal Aviation Act (FAA) of 1958,2 Congress created a regulatory organization, known as the Civil Aeronautics Board (CAB), to serve three main functions: award routes to airlines, control the entry of air carriers into new markets, and regulate fares for consumers.3 Still, Congress preserved state common law actions against airlines by including a “saving clause,” which provided: “Nothing contained in this chapter shall in any way abridge or alter the remedies now existing at common law or by statute, but the provisions of this chapter are in addition to such remedies.”4

 

In 1978, however, Congress changed courses with respect to airline regulation, determining that “maximum reliance on competitive market forces would best further ‘efficiency, innovation, and low prices’ as well as ‘variety [and] quality . . . of air transportation services.”5 Accordingly, Congress enacted the Airline Deregulation Act of 1978 (ADA),6 which gradually ended economic regulation of the airline industry in a series of steps over the years, including the elimination of the CAB.7

 

The ADA, unlike its predecessor, contained express federal preemption clause to ensure that “States would not undo federal deregulation with regulation of their own.”8 The ADA’s preemption clause states:

 

Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce any law, regulation, or other provision having the force and effect of law related to a price, route, or service of any air carrier that may provide air transportation under this subpart.9

 

This preemption standard, while simply stated, has proven far more difficult to apply than Congress could have anticipated.

 

One source of confusion is Congress’ retention of the “saving clause,” which provides that “[a] remedy under this part is in addition to any other remedies provided by law.” 10 Some courts have found Congress preserved this clause in order to protect the states’ ability to control non-economic matters involving airlines within their respective borders.11 Still, the Supreme Court has referred to the saving clause as “a relic of the pre-ADA/no pre-emption regime,” without power to supersede the specific substantive preemption provision of the ADA. 12

 

The greatest source of confusion surrounding the ADA’s preemption clause concerns the ambiguous language of the statute itself. In particular, courts have struggled to advance a coherent framework for what types of causes of action are “related to a price, route, or service” for preemption under the ADA. Congress neither defined the terms nor specified what types of state action are preempted, and the Supreme Court has not drawn any distinct preemption lines.13 Consequently, lower courts have been left to apply their own, often conflicting, interpretations of the ADA’s preemption clause. Regardless of statutory interpretation, courts remain guided by fundamental principles of preemption doctrine.

 

BRIEF INTRODUCTION TO PREEMPTION DOCTRINE

 

The foundation for federal preemption of state law is based on the Supremacy Clause of Article VI of the Constitution, which provides: “This Constitution and the laws of the United States . . . shall be the supreme law of the land . . . anything in the Constitution or laws of any State to the contrary notwithstanding.”14 As a general rule, federal law preempts state law in three situations:15 (1) Express preemption: where Congress has explicitly preempted state law;16 (2) Field preemption: where Congressional intent to preempt may be inferred generally from the pervasiveness of a federal regulatory scheme in a particular area;17 and (3) Conflict preemption: where state law conflicts with federal law or interferes with the achievement of congressional objectives.18

 

Where Congress has included an express preemption clause in a statute, courts “typically do not consider the issue of implied pre-emption,” and instead simply “determine whether the state law in question falls within the scope of the statute expressly promulgated by Congress.”19 In other words, according to the Supreme Court:

 

When Congress has considered the issue of pre-emption and has included in the enacted legislation a provision explicitly addressing that issue . . . ‘there is no need to infer congressional intent to pre-empt state laws from the substantive provisions’ of the legislation. Such reasoning is a variant of the familiar principle of expression unius est exclusio alterius: Congress’ enactment of a provision defining the pre-emptive reach of a statute implies that matters beyond that reach are not pre-empted.20

 

Because Congress included an express preemption clause in the ADA, courts look to the specific statutory language in order to determine whether a particular state action is preempted. Unfortunately, the literal text of the ADA’s preemption clause is ambiguous; and the Supreme Court has not resolved the uncertainty.

 

SUPREME COURT INTERPRETATION OF

 

THE ADA’s PREEMPTION CLAUSE

 

The United States Supreme Court has interpreted the ADA’s preemption provision only twice since 1978. In Morales v. Trans World Airlines, Inc.,21 the Court decided whether the ADA preempts States from regulating deceptive airline fare advertisements through enforcement of state consumer protection statutes.22 The Court held such actions were indeed preempted by the ADA.23

 

In reaching its decision, the Court focused on the statutory phrase “related to” in the ADA’s preemption provision. First, the Court looked to Black’s Law Dictionary for guidance, concluding that “the words thus express a broad pre-emptive purpose.”24

 

Second, the Court examined the similarly worded preemption provision of the Employee Retirement Income Security Act of 1974 (ERISA),25 which the Court had previously interpreted as having a “broad scope.”26 Therefore, the Court held: “Since the relevant language of the ADA is identical [to the ERISA preemption clause], we think it appropriate to adopt the same standard here: State enforcement actions having a connection with or reference to airline ‘rates, routes, or services’ are pre-empted” by the ADA.27 Although the Court in Morales declined to define with particularity the circumstances under which a state law “relates to” airline services, it held the state consumer protection guidelines at issue were sufficiently “related to” airline “price[s]” because enforcement of such guidelines would compel or restrict airline price advertising.28

 

Notably, however, the Court recognized there are limits to the scope of the ADA’s preemption clause.29 Specifically, the Court explained that state action affecting the airlines in “too tenuous, remote, or peripheral a manner” will not be preempted by the ADA.30 The Court declined to expand on this notion, instead stating, “[t]he present litigation plainly does not present a borderline question, and we express no views about where it would be appropriate to draw the line.”31

 

In 1995, the Supreme Court revisited the ADA’s preemption clause in American Airlines, Inc. v. Wolens.32 Here, the plaintiffs brought claims against American Airlines for breach of contract and for violations of the Illinois Consumer Fraud Act following the airline’s unilateral devaluation of frequent flyer mileage credits earned by the plaintiffs.33 Rather than focusing on the “related to” language of the ADA’s preemption clause, the Court examined the phrase “enact or enforce any law” in the provision.34

 

First, in accord with Morales, the Court held that the plaintiffs’ claims based on the Illinois Consumer Fraud Act were preempted by the ADA.35 The purpose of the Illinois statute, according to the Court, was “to guide and police the marketing practices of the airlines; the Act does not simply give effect to bargains offered by the airlines and accepted by airline customers.”36 Therefore, because the plaintiffs sought to “enforce [a] law” regulating “the selection and design of marketing mechanisms appropriate to the furnishing of air transportation services,” the plaintiffs’ claims under the Consumer Fraud Act were preempted.37

 

Second, the Court carved out an exception to ADA preemption for the plaintiffs’ breach of contract claim. The Court explained: “We do not read the ADA’s preemption clause, however, to shelter airlines from suits alleging no violation of state-imposed obligations, but seeking recovery solely for the airline’s alleged breach of its own, self-imposed undertakings.”38 Because the plaintiffs’ breach of contract claim (based on American’s modification of its frequent flyer program) sought to enforce the terms of a voluntary undertaking by the airlines, and did not seek to “enforce any law,” the claim was not preempted by the ADA.39

 

COURTS OF APPEALS’ CONFLICTING DEFINITION OF “SERVICE”

 

Although the Supreme Court interpreted the “related to” phrase in Morales, and the “enact or enforce any law” language in Wolens, the Court has not defined the term “service” of an airline, as it is used in the ADA’s preemption clause. Instead, the United States Courts of Appeals have been left to define the term, resulting in conflicting approaches.

 

In Charas v. Trans World Airlines, Inc., the Ninth Circuit adopted a relatively narrow definition of “service.”40 Because the term “service” is inherently ambiguous, the court looked to the purpose behind the ADA, which Congress enacted to protect “the economic deregulation of the airlines and the forces of competition within the airline industry.”41 As such, only state laws that interfere with economic deregulation and the forces of competition within the airline industry should be preempted.42 Conversely, ADA preemption should not “displace state tort law in actions that do not affect deregulation in more than a ‘peripheral manner.’”43

 

With these principles in mind, the Ninth Circuit defined “service,” as referring to “the prices, schedules, origins and destinations of the point-to-point transportation of passengers, cargo, or mail.”44 This definition includes “such things as the frequency and scheduling of transportation, and to the selection of markets to or from which transportation is provided.”45 This definition of “service” does not, however, encompass things such as “the pushing of beverage carts, keeping the aisles clear of stumbling blocks, the safe handling and storage of luggage, assistance to passengers in need, or like functions,” which the court found only peripherally affect airline deregulation or competition.46 Any broader a definition, according to the court, “effectively would result in the pre-emption of virtually everything an airline does. It seems clear to us that that is not what Congress intended.”47 This approach to ADA preemption has been followed by the Third Circuit.48

 

In contrast, the Fifth Circuit adopted a much broader definition of “service.”49 In Hodges v. Delta Airlines, Inc., a female passenger was injured when another passenger opened an overhead compartment and dislodged a case of rum. She brought a state law personal injury claim against Delta Airlines based on alleged negligent operation of the aircraft.50 In order to determine whether the plaintiff’s claim was preempted by the ADA, the Fifth Circuit adopted the following definition of “service”:

 

“Services” generally represent a bargained-for or anticipated provision of labor from one party to another . . . Elements of the air carrier service bargain include items such as ticketing, boarding procedures, provisions of food and drink, and baggage handling, in addition to the transportation itself. These matters are all appurtenant and necessarily included with the contract of carriage between the passenger or shipper and the airline. It is these [contractual] features of air transportation that we believe Congress intended to de-regulate as “services” and broadly to protect from state regulation.51

 

This definition of “service” is clearly far broader than the Ninth Circuit’s definition in Charas.

 

Still, the Fifth Circuit held the plaintiff’s claims were not preempted by the ADA. The court distinguished between claims related to the “operation and maintenance of the aircraft,” and claims related to airline “services,” holding that claims falling in the former category are not preempted by the ADA.52 With respect to the plaintiff’s claims, the court explained: “One uses the overhead luggage racks or the food and beverages provided in aircraft operation just as one uses the cigarette lighter or built-in cooler compartment in an automobile, and all these devices are available to support the general purpose of navigation.”53 The court rejected Delta’s arguments that the plaintiff’s injuries arose out of the “service” of baggage handling and boarding.54 Instead, the court found: “Whether certain luggage may be placed in overhead bins and whether the flight attendants properly monitor compliance with overhead rack regulations are matters that pertain to the safe operation of a flight.”55

 

Thus, while the Fifth Circuit adopted a broad definition of “service,” it added another layer of confusion with an almost untenable distinction between “service” and “operation and maintenance.” 56 Nevertheless, at least three other Circuit Courts of Appeals have adopted the Hodges court’s definition of “service.”57

 

SUPREME COURT DECLINES TO DEFINE “SERVICE”

 

In late 2000, the Supreme Court declined the opportunity to resolve the conflict concerning the appropriate definition of “service” within the meaning of the ADA’s preemption clause.58 Earlier that year, in Duncan v. Northwest Airlines, Inc., the Ninth Circuit held that a class-action lawsuit challenging Northwest’s smoking policy was not preempted by the ADA.59 Relying on its earlier narrow definition of “service” in Charas, the Ninth Circuit held that allowing smoking on Northwest flights does not constitute a “service” because such decision does not deal with “the frequency and scheduling of transportation, [or] the selection of markets to or from which transportation is provided.”60 Northwest appealed the Ninth Circuit’s decision, and the Supreme Court denied the petition for a writ of certiorari.61

 

Justice O’Connor, joined by Chief Justice Rehnquist and Justice Thomas, dissented to the Court’s denial of certiorari. In her dissent, she notes how the Courts of Appeals have “taken directly conflicting positions on this question of statutory interpretation.”62 Given these contradictory interpretations, the dissenting Justices would have granted certiorari in order to “provide needed certainty to airline companies.”63

 

APPLICATION OF THE ADA PREEMPTION CLAUSE

 

TO STATE-LAW INTENTIONAL TORT CLAIMS

 

Also in her dissent to the Court’s denial of certiorari in Duncan, Justice O’Connor suggests that while the underlying case involved a state law personal injury claim based on an airline’s smoking policy, “the legal principle at stake,” namely, the correct definition of “service” within the meaning of the ADA’s preemption clause, “has ramifications for a host of other tort actions against airline,” including “false imprisonment,” “intentional infliction of emotional distress,” and “defamation.”64 This section examines how courts have analyzed and should analyze these types of actions. Such cases often include state law discrimination claims.

 

DISCRIMINATION CLAIMS

 

The United States Supreme Court has not decided whether actions against airlines alleging state discrimination violations are preempted by the ADA.65 For lower courts examining this issue, the preemption outcome largely depends on the court’s definition of “service.”

 

A. Employment Discrimination Actions

 

Generally, discrimination suits brought by former airline employees bear “too tenuous, remote or peripheral” a relation to airline rates or services for preemption under the ADA, regardless of the court’s definition of “service.”66 Courts refusing to preempt such actions stress the purpose of the ADA, which “was concerned with the states’ attempt to regulate airline fares, routes and services, not employment practices.” 67

 

For example, in the racial discrimination context, courts generally agree that neither air safety nor market efficiency is appreciably diminished by the operation of state laws forbidding racial discrimination.68 As the Second Circuit explained in Abdu-Brisson: “Unlike the regulation of marketing practices at issue in Morales or the regulation of frequent flyer programs at issue in [Wolens], whether an airline discriminates on the bases of age (or race or sex) has little or nothing to do with competition or efficiency.”69

 

In other contexts, however, enforcement of state discrimination laws may appreciably “relate to” airline “services,” warranting preemption by the ADA. For instance, in 1996, the Michigan Court of Appeals held that state law weight discrimination claims brought by a baggage handler who was terminated for failure to comply with the airline’s height and weight standards were preempted by the ADA.70 Applying the Supreme Court’s broad interpretation of the phrase “related to” in Morales, the Michigan Court of Appeals held the plaintiff’s discrimination claims “related to” the “services of an air carrier,” and were preempted accordingly.71 In this case, as well as in other disability discrimination actions where the state law arguably “relates to” airline “service,” the scope attached to these statutory terms ultimately determines the preemption outcome.

 

B. Passenger Discrimination Actions

 

Cases addressing the scope of ADA preemption in discrimination actions brought by airline passengers provide a less coherent body of case law.72 Ultimately, whether or not a discrimination claim is preempted depends on the court’s definition of “service.”

 

Generally, courts have found such claims entirely unrelated to the performance of airline services, and therefore outside the scope of ADA preemption.73 For example, in Doricent v. American Airlines, Inc., a male passenger alleged that prior to his flight’s departure from Haiti, American Airlines employees referred to him using racial epithets, threatened to remove him from the plane, and physically assaulted him.74 The court held the plaintiff’s state law race discrimination claims did not “relate to” airline “services” under the Supreme Court’s precedent in Morales.75 While the airline employees’ behavior might “arguably constitute ‘services’—poor services, to be sure,” the court found this behavior had “nothing whatsoever to do with any legitimate or quasi-legitimate industry-wide practice of affording airline service.”76

 

Still, in other contexts, discrimination claims may have some legitimate bearing on an airline’s ability to render safe and efficient “service.”77 In such cases, even those involving alleged race discrimination, the plaintiff’s discrimination claims might be preempted by the ADA.

 

For instance, in Huggar v. Northwest Airlines, Inc., the United States District Court for the Northern District of Illinois held that an airline passenger’s race discrimination claims against Northwest were preempted by the ADA.78 The plaintiff, a 21-year-old black male was removed from a Northwest flight after removing another passenger’s luggage from an overhead bin and throwing it on the floor, threatening to physically assault the passenger, and claiming he could “buy” the passenger.79 The plaintiff’s ten-count claim against Northwest alleged that his ejection from the flight was racially motivated, and included a claim for a violation of the Illinois Human Rights Act.80

 

In determining whether the plaintiff’s state law race discrimination claims related to Northwest’s “service” of providing airline transportation, the court employed the following analysis: “the critical inquiry is [sic] the underlying nature of the actions taken, not the manner in which they were accomplished. Therefore, a court should not look to the subjective motivations of the employees because they are irrelevant to determining what constitutes ‘services’ within the meaning of the [ADA].”81 According to the majority, because the plaintiff’s actions clearly posed a safety threat to the other passengers, the airline’s decision to eject him from the flight “related to” the “service” of boarding and seating passengers, notwithstanding the airline employee’s subjective, allegedly discriminatory motivations.

 

As the above case highlights, the preemption outcome in passenger discrimination cases often depends entirely on whether a particular jurisdiction employs a broad or narrow definition of “service.” In order to find the plaintiff’s claims preempted by the ADA, the Huggar court first had to include “boarding and seating decisions” as cognizable “services” under the ADA’s preemption clause. In a similar case, the U.S. District Court for the District of Massachusetts held that a passenger’s lawsuit alleging he was discriminated against on account of his handicap in connection with boarding on a particular flight was preempted by the ADA.82 Necessary to the court’s decision was its reliance on the Fifth Circuit’s broad definition of “service,” which explicitly refers to “boarding.”

 

Conversely, jurisdictions employing the Ninth Circuit’s narrow definition of “service” will reach the opposite result under identical scenarios. For instance, the Ninth Circuit held a plaintiff’s disability discrimination claim against American Airlines based on the airline’s refusal to allow the plaintiff to board without a doctor’s certificate (she was in a wheelchair and had a heart problem) was not preempted by the ADA.83 The court’s analysis was probably over-simplistic; it simply held, “the term ‘service’ does not refer to alleged discrimination to passengers due to their disabilities.”84 Consequently, whether a passenger discrimination lawsuit is preempted by the ADA may ultimately depend on the court’s definition of “service.”

 

FALSE ARREST/ IMPRISONMENT

 

Several courts have addressed the issue of whether the ADA preempts false imprisonment and false arrest claims, reaching divergent conclusions.85 These cases can, however, be reconciled.

 

Where the courts have held a plaintiff’s claim for false arrest or false imprisonment is preempted by the ADA, such cases involve incidents where the airline refused or failed to provide a service relating to the transportation of a passenger.86 In these cases, “where the crux of the claim was the airline’s refusal to transport the passenger,” the courts have concluded that the claims related to the services of the airlines, and were therefore preempted by the ADA.87 This makes sense because all Circuit Courts of Appeals agree that “transportation” of passengers is a cognizable “service” under the ADA.

 

Conversely, where the basis of a false arrest or false imprisonment claim “is that the airline caused the passenger to be arrested by authorities without a proper factual basis,” courts have held that such claims are not “related to” an airline “service.”88 For example, if “an airline held a passenger without a safety or security justification, a claim based on such actions would not relate to any legitimate service and would not be preempted.”89

 

OTHER INTENTIONAL TORT CLAIMS

 

The Circuit Court of Appeals for the Seventh Circuit, in Travel All Over The World, Inc., examined whether a travel agency’s intentional tort claims against Saudi Arabian Airlines, arising out of the travel agency’s unsuccessful attempts to arrange flights to Saudi Arabia for its clients, were preempted by the ADA’s express provision.90 The court organized the plaintiff’s claims into two categories: (1) defamation and slander; and (2) “other” intentional tort claims.91

 

With respect to the first category, the Seventh Circuit acknowledged that courts have reached “divergent results” concerning whether claims for slander and defamation are preempted by the ADA.92 Here, the plaintiff based its defamation and slander claims on the airline employees’ making knowingly false verbal and written statements about the travel agency to the agency’s clients; specifically, that the agency “was not a reputable company, that [the agency] had not booked seats on Saudi for many of them, that [the agency] often lied to its clients about reserving seats for them, and that” the agency’s president would not be there to help them.93

 

Even after adopting the Fifth Circuit’s broad definition of “service,” the Seventh Circuit held the statements themselves were not airline “services” within the meaning of the ADA.94 Citing the Supreme Court’s opinion in Morales, the court explained: “It is difficult for us to envision how tort claims based on an airline’s knowingly false statements about a travel agency would have even a ‘tenuous, remote or peripheral’ economic effect on the rates, routes, or services that the airline offers.”95 Furthermore, although the statements refer to the travel agency’s services, the court held they certainly do not refer to the airline’s rates, routes, or services.96 Therefore, the plaintiff’s defamation and libel claims were not preempted by the ADA.

 

With respect to the second category of “other” intentional tort claims, including intentional infliction of emotional distress, tortious interference and fraud, the Seventh Circuit reached a different opinion. Only where these claims are based upon the same slanderous and defamatory comments that the court already found not preempted, could such claims withstand preemption scrutiny.97

 

Yet, the Seventh Circuit doubted this would hold true for the plaintiff in Travel All, as with most plaintiffs. Instead, the “other” intentional tort claims were most likely “based, at least in part, on [the airline’s] canceling the confirmed tickets of [the agency’s] clients and requiring these clients to purchase their tickets directly through [the airline].”98 To the extent that the plaintiff’s intentional tort claims rely on this “conduct” of the airline, rather than the airline employee’s allegedly slanderous and defamatory “comments,” the court held such claims “expressly refer to airline ‘services,’ which include ticketing as well as the transportation itself,” and are therefore preempted by the ADA.99 Again, this holding depends entirely on the court’s adoption of the Fifth Circuit’s broad “service” definition in Hodges, as opposed to the Ninth Circuit’s narrow definition of “service” in Charas.

 

CONCLUSION

 

The ADA’s preemption clause continues to cause confusion and divergent opinions throughout our nation’s courtrooms. The fundamental problem concerns the seemingly benign phrase “related to a price, route, or service” of an air carrier. The Supreme Court has done little to clear the fog surrounding this issue. Aside from expressly declining the opportunity to define “service,” the Court’s interpretation of the phrase “related to” has recently come into question.

 

In Morales, the Supreme Court interpreted the “related to” language of the ADA broadly, based largely on the “broad scope” previously applied to the similarly worded ERISA preemption clause.100 Yet, in recent years the Supreme Court has been narrowing the reach of ERISA’s preemption provisions.101 Indeed, the phrase “related to” in ERISA’s preemption clause “appears to be developing, to some degree, to mean whether state law actually ‘interferes’ with the purposes of the ERISA legislation.”102 Although the literal text of ERISA’s preemption clause is “clearly expansive,” like the ADA, the Supreme Court has held that for practical purposes the statute must be interpreted more narrowly, “lest its reach stop nowhere.”103 Analogously, it is unclear whether the ADA’s “related to” phrase should likewise receive a narrower interpretation to mean: whether state law actually interferes with the purpose of the ADA.

 

The larger question involving the ADA preemption clause concerns the proper definition of “service.” The Supreme Court has expressly declined to answer the question, despite the objections of three Justices.104 If the Court is not going to answer this question, Congress should. A clear definition of “service,” from either the Supreme Court or the Legislature, “would provide needed certainty to airline companies.”105

 

The question becomes: What definition of “service” should the Supreme Court or Congress adopt for the ADA’s preemption clause? This question must be answered in light of the fundamental purpose behind the underlying statute—courts should look to the objectives of the ADA as a guide to the scope of state law that should survive. The ADA is an economic deregulation statute designed to promote competitive rates, routes and services among the nation’s airlines.106 As such, only those actions directly impacting the airlines’ ability to provide competitive rates, enter new markets, and provide effective transportation to consumers should be preempted by the ADA.

 

The Ninth Circuit’s narrow definition of “service,” which encompasses the “prices, schedules, origins and destinations of the point-to-point transportation of passengers, cargo or mail,” best aligns with the purpose of the underlying ADA statute. Furthermore, this definition comports with the Supreme Court’s approach to express preemption clause analysis: “the familiar principle of expression unius est exclusio alterius.”107

 

Neither the language nor the history of the ADA suggests that Congress was attempting to displace all state law tort causes of action against the airlines; nor should the preemption clause act as a safe harbor against claims having only a tenuous impact on airline services.108 The vast majority of state law intentional tort claims cannot be said to frustrate the goal of economic deregulation in the airline industry. Furthermore, such claims do not affect a particular airline’s competitive posture any more so than a lawsuit affects any corporation in America. Accordingly, such actions should fall outside the scope of federal preemption under the ADA.

 

1 For a good discussion of the ADA’s legislative history, see Daniel H. Rosenthal, Legal Turbulence: The Court’s Misconstrual of the Airline Deregulation Act’s Preemption Clause and the Effect on Passengers’ Rights, 51 Duke L.J. 1857, 1869-1872 (2002).

 

2 Pub. L. No. 85-726, 72 Stat. 731 (later codified as amended at 49 U.S.C. §§ 40010-44310 (1994)).

 

3 Matt Andersson, The New Airline Code 62-64 (iUniverse, Inc. 2005).

 

4 49 U.S.C. § 1506 (current version at 49 U.S.C. § 40120 (c)).

 

5 Morales v. Trans World Airlines, Inc., 504 U.S. 374, 378 (1992) (citing 49 U.S.C.App. §§ 1302 (a)(4), 1302 (a)(9)).

 

6 49 U.S.C. app. §§ 1301-1557 (1988).

 

7 Matt Andersson, The New Airline Code 67 (iUniverse, Inc. 2005).

 

8 Morales, 504 U.S. at 378; See also Trinidad v. American Airlines, Inc., 932 F. Supp. 521 (S.D.N.Y. 1996) (stating that the purpose of ADA’s preemption clause was to prevent states from interfering with the development of an air transportation system driven to higher levels of innovation and efficiency by economic competition).

 

9 49 U.S.C. § 41713 (1997) (emphasis added).

 

10 49 U.S.C. § 40120 (c); Chrissafis, 940 F. Supp at 1296.

 

11 Hodges v. Delta Airlines, Inc., 44 F.3d 334, 337 (5th Cir. 1995); Morales, 504 U.S. at 425 (Stevens J., dissenting).

 

12 Morales, 504 U.S at 385.

 

13 See Matthew J. Jelly, Federal Preemption by the Airline Deregulation Act of 1978: How do State Tort Claims Fare?, 49 Cath. U. L. Rev. 873 (2000).

 

14 U.S. const. art. VI § 1, cl. 2.

 

15 See Susan D. Hall, Preemption Analysis After Geier v. American Honda Motor Co., 90 Ky. L.J. 251 (2002).

 

16 Shaw v. Delta Airlines, Inc., 463 U.S. 85, 95 (1983).

 

17 Rice v. Santa Fe Elevator Corp, 331 U.S. 218, 230 (1947).

 

18 Florida Lime & Avocado Growers, Inc. v. Paul, 373 U.S. 132, 142-43 (1963).

 

19 Branche v. Airtran Airways, Inc., 342 F.3d 1248, 1253 (11th Cir. 2003).

 

20 Id.; Cipollone v. Liggert Group, Inc. 505 U.S. 504, 517 (1992) (quoting Malone v. White Motor Corp., 435 U.S. 497, 505 (1978)); compare Grier v. American Honda Motor Co., Inc., 529 U.S. 861 (2000) (existence of express preemption provision does not mean that implied preemption cannot exist where the express preemption does not apply).

 

21 Morales v. Trans World Airlines, Inc., 504 U.S. 374 (1992).

 

22 Id. at 378.

 

23 Id. at 391.

 

24 Id. at 383.

 

25 29 U.S.C. § 1144 (a).

 

26 Morales, 504 U.S. at 384 (citing Metropolitan Life Ins. Co. v. Massachusetts, 471 U.S. 724, 739 (1985).

 

27 Id. (emphasis added).

 

28 Id. at 390.

 

29 See John T. Houchin, Harris v. American Airlines: Flying Through the Turbulence of Federal Preemption and the Airline Deregulation Act, 51 U. Miami L. Rev. 955, 966 (1997).

 

30 504 U.S. at 390 (quoting Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 100 (1983) (emphasis added)).

 

31 Id.

 

32 American Airlines, Inc. v. Wolens, 513 U.S. 219 (1995).

 

33 Id. at 224.

 

34 Id. at 226.

 

35 Id at 228.

 

36 Id.

 

37 Id. (emphasis added).

 

38 Id. at 228 (emphasis added); see also Williams v. Midwest Airlines, Inc., 321 F. Supp. 2d 993, 996 (E.D.Wisc. 2004) (holding the plaintiffs’ breach of contract claim was not preempted because the airline’s agreement to transport plaintiffs to New York City “was a self-imposed undertaking, and plaintiffs’ attempt to enforce it does not involve the enforcement of any state law”).

 

39 Wolens, 513 U.S. at 232-33. The Court stated that this distinction makes sense in light of the ADA’s saving clause, which does not prevent states from “affording relief to a party who claims and proves that an airline dishonored a term that the airline itself stipulated.” Id.

 

40 Charas v. Trans World Airlines, Inc., 160 F.3d 1259 (9th Cir. 1998) (en banc).

 

41 Id. at 1261.

 

42 Id. at 1263 (citing Gee v. Southwest Airlines, Inc., 110 F.3d 1400, 1410 (9th Cir. 1997) (O’Scannlain, J., concurring).

 

43 Id. at 1265.

 

44 Id. at 1261.

 

45 Id. at 1265-66.

 

46 Charas, 160 F.3d at 1266.

 

47 Id.

 

48 See Taj Mahal Travel, Inc. v. Delta Airlines, Inc., 164 F.3d 186, 195 (3d Cir. 1998); Duncan, 531 U.S. 1058; compare Abdulla v. American Airlines, Inc., 181 F.3d 363, 367 (3d Cir. 1999) (holding that the entire aviation industry is field preempted).

 

49 Hodges v. Delta Airlines, Inc., 44 F.3d 334, 336 (5th Cir. 1995) (en banc).

 

50 Id. at 335.

 

51 Id. at 336 (citations omitted) (emphasis added).

 

52 Hodges, 44 F.3d at 336-37. The court found that claims relating to the “operation and maintenance of the aircraft” concern matters of “air navigation.” Id. at 338 (citing 49 U.S.C.App. § 1301(31) (1998)).

 

53 Id. (emphasis added)

 

54 Id. at 338-39.

 

55 Id. at 339.

 

56 The Firth Circuit admits that “the provinces of ‘services’ and ‘operation and maintenance of aircraft’ overlap somewhat conceptually; no strict dichotomy exists.” Id. at 339.

 

57 See Duncan, 531 U.S. 1058; Smith v. Comair, Inc., 134 F.3d 254, 259 (4th Cir. 1998); Travel All Over The World, Inc. v. Kingdom of Saudi Arabia, 73 F.3d 1423, 1433 (7th Cir. 1996); Branche v. Airtran Airways, Inc., 342 F.3d 1248, 1257 (11th Cir. 2003).

 

58 Northwest Airlines, Inc. v. Duncan, 531 U.S. 1058 (2000) (cert denied)

 

59 Duncan v. Northwest Airlines, Inc., 208 F.3d 1112 (9th Cir. 2000).

 

60 Id. at 1115 (quoting Charas, 160 f.3d at 1265-66).

 

61 Duncan, 531 U.S. 1058 (2000) (cert denied).

 

62 Id.

 

63 Id.

 

64 Id.

 

65 Lynette M. Bledsaw, The Express Preemption Provision of the Federal Aviation Administration Authorization Act Does Not Reach State Civil Rights Claims of Race Discrimination, American Bar Association (2000).

 

66 See Branche v. Airtran Airways, Inc., 342 F.3d 1248 (11th Cir. 2003) (former airline employee’s state court claim for retaliatory discharge was not preempted by the ADA); Wellons v. Northwest Airlines, Inc., 165 F.3d 493, 495 (6th Cir. 1999) (former airline employee’s race discrimination claim was not preempted); Parise v. Delta Airlines, Inc., 141 F.3d 1463, 1467-68 (11th Cir. 1998) (plaintiff’s age discrimination claim was not preempted by the ADA); Aloha Islandair Inc. v. Tseu, 128 F.3d 1301, 1303 (9th Cir. 1997) (holding Hawaii law barring physical disability discrimination was not preempted by the ADA); Abdu-Brisson v. Delta Airlines, Inc., 128 F.3d 77, 84 (2d Cir. 1997) (holding New York age discrimination action was not preempted by the ADA).

 

67 Id.; (citing Delta Air Lines, Inc. v. New York State Div. of Human Rights, 652 N.Y.S2d 253, 257 (1996);

 

68 Ryan L. Bangert, When Airlines Profile Based On Race: Are Claims Brought Against Airlines Under State Anti-Discrimination Laws Preempted By the Airline Deregulation Act?, 68 J. Air L. & Com. 791, 801 (2003); see Thomas v. United Parcel Service, 241 Mich. App. 171 (2000) (holding that former African-American employee’s race discrimination claim was not preempted by the ADA).

 

69 Abdu-Brisson, 128 F.3d at 84; Wellons, 165 F.3d at 496; Thomas, 241 Mich.App. at 181; see also Wellons v. Northwest Airlines, Inc., 165 F.3d 493, 495 (6th Cir. 1999) (“State law claims of racial discrimination—as opposed to claims of discrimination on the basis of physical characteristics that might have some bearing on the individual’s ability to render service safely and efficiently—are not preempted, in our view; they bear ‘too tenuous, remote, or peripheral’ a relation to airline rates or services.”); Thomas, 241 Mich.App. 171, 181 (2000) (“Plaintiffs’ race and gender are wholly unrelated to defendants’ services”).

 

70 Bledsaw, supra note 65; Fitzpatrick v. Simmons Airlines, Inc., 218 Mich. App. 689 (1996).

 

71 Fitzpatrick, 218 Mich. App. At 692. See also Belgard v. United Airlines, 857 P.2d 467, 471 (Colo.App.1992) (“any law or regulation that restricts an airline’s selection of employees, based upon their physical characteristics, must necessarily have a connection with and reference to, and therefore must be one ‘relating to,’ the services to be rendered by the airline”)

 

72 Bangert, supra note 22 at 803.

 

73 Bledsaw, supra note 65 at 5.

 

74 Doricent v. American Airlines, Inc., 1993 WL 437670 (D.Mass 1993).

 

75 Id.

 

76 Id. at *5.

 

77 Bledsaw, supra note 65 at 5.

 

78 Huggar v. Northwest Airlines, Inc., 1999 WL 59841 (N.D. Ill. 1999).

 

79 Id. at *1; see also Bangert, supra note 22 at 805-06.

 

80 Id.

 

81 Id. (citations omitted).

 

82 DeTerra v. America West Airlines, Inc., 226 F. Supp. 2d 274 (D.Mass. 2002).

 

83 Newman v. American Airlines, Inc., 176 F.3d 1128, 1131 (9th Cir. 1999).

 

84 Id. at 1131;

 

85 Chrissafis v. Continental Airlines, Inc., 940 F. Supp. 1292, 1298 (N.D. Ill. 1996).

 

86 Id.; see Williams v. Express Airlines I Inc.,, 825 F. Supp. 831, 832-33 (W.D. Tenn. 1993) (holding that plaintiff’s claim for false imprisonment after he was denied admittance to a flight and then strapped to an immobile chair in the airline waiting area was preempted by the ADA); Lawal v. British Airways, PLC, 812 F. Supp. 713, 715 (S.D. Tex. 1992) (holding that plaintiff’s false arrest and false imprisonment claims where airline personnel detained the plaintiff and forced him to purchase a new ticket were preempted); Galbut v. American Airlines, Inc., 27 F. Supp. 2d 146 (E.D. N.Y. 1997) (holding that plaintiff’s false arrest and false imprisonment claims arising out of airline’s refusal to permit plaintiff to upgrade using stickers the airline had falsely alleged were stolen and the demand for payment for the upgrade were preempted by the ADA); Smith v. Comair, Inc., 134 F.3d 254 (4th Cir. 1998) (passenger’s claim for false imprisonment based on the airline’s refusal to permit him to board due to the airline’s failure to ask for photo identification at the point of original departure was preempted).

 

87 Chrissafis, 940 F. Supp. at 1298.

 

88 Id.; see Diaz Aguasviva v. Iberia Lineas Aereas 902 F. Supp. 314, 316 (D. Puerto Rico 1995) (permitting a passenger to pursue a claim that airline personnel falsely identified the passenger as an illegal alien, causing police and customs agents to arrest and detain her); Curley v. American Airlines, Inc., 846 F. Supp. 280, 281-82 (S.D.N.Y. 1994) (holding that plaintiffs claim that the flight crew had falsely arrested the passenger for smoking marijuana, causing him to be strip-searched, was not preempted); Bayne v. Adventure Tours USA, Inc., 841 F. Supp. 206, 207 (N.D.Tex 1994) (refusing to preempt a passenger’s claim that an airline pilot made misrepresentations to police, causing the plaintiff to be taken into custody, detained, and subjected to a luggage search); Rombom v. United Airlines, Inc., 867 F. Supp. 214, 224 (S.D.N.Y. 1994) (finding that false imprisonment claims stemming from the airline’s decision to have plaintiff arrested, allegedly motivated by spite, were not preempted).

 

89 Smith v. Comair, Inc., 134 F.3d 254, 259 (4th Cir. 1998); Chrissafis v. Continental Airlines, Inc., 940 F. Supp. 1292, 1289-99 (N.D. Ill. 1996)

 

90 Travel All Over The World, Inc., v. Kingdom of Saudi Arabia, 73 F.3d 1423 (7th Cir. 1996).

 

91 Id.; see also Chrissafis , 940 F. Supp. 1292 (recognizing this distinction). In addition to defamation and slander, the “other” intentional tort claims included tortious interference with a business relationship, fraud, intentional infliction of emotional distress, and tortuous interference with a business relationship.

 

92 Travel All Over The World, Inc., 73 F.3d. at 1433; compare Fenn v. American Airlines, Inc., 839 F. Supp. 1218, 1223 (S.D. Miss. 1993) (finding claims for slander unrelated to airline “services”) with Chukwu v. Board of Directors of British Airways, 889 F. Supp. 12, 14 (D.Mass. 1995) (finding specific claims for slander related to airline “services”) and Pearson v. Lake Forest Country Day Sch., 262 Ill.App.3d 228 (1994) (same).

 

93 Id.

 

94 Id. at 1433.

 

95 Id. citing Morales, 504 U.S. at 383-85.

 

96 Id. at 1433.

 

97 Travel All Over The World, Inc., 73 F.3d at 1434..

 

98 Id.

 

99 Id. (citing Hodges, 44 F.3d at 336); see also DeTerra, 226 F. Supp. 2d at 277 (finding handicapped passenger’s claims for intentional and negligent infliction of emotional distress in connection with his denial of boarding on a particular flight was preempted); Chukwu v. Board of Directors British Airways, 889 F. Supp. 12, 13 (D.Mass. 1995) (concluding that plaintiff’s claim for intentional infliction of emotional distress based on the allegation that he had been improperly denied boarding on a flight was preempted by the ADA).

 

100 Morales, 504 U.S. at 384.

 

101 See Abdu-Brisson, 128 F.3d 77, 82 (2d Cir. 1997); DeBuono v. NYSA-ILA Medical and Clinical Serv., 520 U.S. 806, 816 (1997).

 

102 Abdu-Brisson, 128 F.3d at 82 (emphasis added); citing New York State Conf. of Blue Cross & Blue Shield Plans v. Travelers Ins. Co., 514 U.S. 645, 655 (1995); Boggs v. Boggs, 520 U.S. 833 (1997) (“We can begin, and in this case end, the analysis by simply asking if state law conflicts with the provisions of ERISA or operates to frustrate its objects).

 

103 Travelers Ins. Co., at 655 (Too expansive an interpretation of “relate to,” according to the Court, “would be to read Congress’s words of limitation as mere sham, and to read the presumption against pre-emption out of the law whenever Congress speaks to the matter with generality. That said, we have to recognize that our prior attempt to construe the phrase ‘relate to’ does not give us much help drawing the line here”).

 

104 See Duncan, 531 U.S. 1058 (cert denied).

 

105 Id.

 

106 See Morales, 504 U.S. at 378.

 

107 See Cipollone, 505 U.S. at 517 (quoting Malone, 435 U.S. at 505).

 

108 Smith v. America West Airlines, Inc., 44 F.3d 344, 346-47 (5th Cir. 1995).

 

Mathew A. Passen
http://www.articlesbase.com/personal-injury-articles/preemption-of-state-law-intentional-tort-actions-under-the-airline-deregulation-act-of-1978-706745.html