Economic and Social Implications System †Free Samples to Students

Question: Discuss about the Economic and Social Implications System. Answer: Introduction: People used to refer to the unknown reasons of societal risk as the "witchcraft" in Europe and North America. As the society developed, the idea of the witch had been virtually eliminated. Historically, the church did not believe in the witchcraft, but it took the responsibility of sustaining the societal welfare. Today experiments take place to decide the real causes of risk in different conditions. The modern science is against the self-delusion as it relies on the process of critical inquiry to discover the source of errors and uncover the truth. Skeptical could provide evidence that the witch effect does not exist in fact. The importance of the analysis of the witch effect and the witchcraft phenomenon of the early days is to realize the fact that what actually happens in the society and creates a risk to people is totally different from what they think as a reason. This phenomenon leads us to learn from the past experiences and consider their effect today. Also, the way the chur ch had treated the fear of people from the natural risk that affected them provides us with insights about the political system adopted in the past and how it had affected peoples' life. The power of the institutions have been increased as they used peoples' fear to govern people who believed that the evil was the cause of all the negative events, not the princes and pops. The argument by Trevor-Roper that the witch craze exists in the mindset of the renaissance, reveals that the human progress was not easy or simple. The political power used to respond to the unknown risk rather than to investigate it and control its effects. This approach represents a dream of risk-free life that would never take place (Clark 1980). The basic nature of risk assessment is mainly caused by people interest in resource management. The natural resources carry good and bad at the same time, for example, the river that carries water necessary to drink and irrigation also brings floods. This context is more realistic than the witch effect, as people have to adapt and cope with the events rather than use their imaginations and fiction to interpret the events that cause risk. The anthropological studies showed that the early societies used to adjust peoples' behavior to cope with the environmental risks. On the contrary, the modern societies have tended to pursue a different course of adaptation to reduce the variability of nature and control the environment by using large, capital intense and long-term projects. This modern approach could also succeed in achieving short-term goals. An argument to the modern approach assumes that the short-term achievements were at the expense of the long-term unexpected consequences, whi ch means that policymakers did not consider the uncalculated risk. The efforts made by the governments today aim to control risk, but each policy has positive and negative effects. The control of a risk is responsible for another risk which is not considered in planning for a solution to the first emerging risk. For example, preserving the forests by sustaining their varied and preserving the biological conditions. The invariability of the insecticides control, insects could spread in the entire forest, which requires continuous efforts in RD to prevent the evolution of the risk to become an epidemic. It is important to plan for eliminating the causes of the risk rather than to focus on the symptoms (Clark 1980). The same situation occurs in controlling the risk of the disease in the human beings. The control of uncertainty may result in increased vulnerability to become a disaster. For example, polio disease is still creating a big threat to the public health worldwide. The public health officials seek to eliminate the disease from the entire population that is why they conduct campaigns to ensure the total elimination of the disease. If the officials started to consider that polio does not represent a risk anymore, this could lead the society to face a real epidemic. Here we assure again that continuous monitoring and evaluation should take place to prevent any sort of potential risk. Moreover, the evolutionary biology results in substantial genetic differences in the population's survival. One form is likely to adapt to the environmental condition better than the others. Which means that some people will be able to adapt to the environmental changes, while others will fail, but the variation in the environment is likely to prevent a certain form from replacing the others. It is a mercy from God that the environment changes or many types of lives that cannot adapt to the environment would have been disappeared. The uncertainty of the natural system is a result of the dynamism of the system. It evolves continuously, as policymakers think they could control it and feel optimistic they are surprised by a wave of risk and hazard. The variability of the natural system plays a critical role in creating and maintaining relationships among the system components. The elimination of variability results in the creation of new relationships that people find that they have to deal with a new sort of variability. This leads us to realize a fact that resource management is a complex process that yields different and surprising new circumstances over the time. The resource management scheme should be designed in a resilient way to be able to cope with the unexpected conditions and the variability of the resource system. To overcome the system variability, uncertainty-tolerant management policies have emerged in the form of "soft-failure" system that goes beyond the resource management system. This approach represents the aggregate risk assessment as it measures the probability of risk, makes trade-offs, calculates the social risk-benefit and defines the common goods (Clark 1980). Risk detection is very important to ensure the public safety. The advocates argue that regulation failed to detect risk of introducing the American drugs. They seek the best safety conditions to the public and people represented in the drug review panels. This situation represents an argument of ensuring the public safety from different parties, the regulating party which is the main responsible for assuring public safety, the advocates of the peoples' safety who argue that the regulatory framework did not provide sufficient guarantees for public safety and the peoples' representatives in the drug review panel. The Congress which shows responsive action to the importance of drug safety by intervening the FDA on regular bases. The Congress efforts failed to meet the requests of the FDA in representing a legislative mandate that balances between the risks and benefits of a public good in a democratic way. This situation transformed the public safety issue into a political issue. Which means an involvement in the process of risk assessment that considers the basic goals to contribute in the public interest. Joshua Lederberg a systems analytic- argues that issues related to the public health are complex, time-consuming and expensive. That is why it should not be treated as a plausible safety measure as it might lead to increase in the total risk. The experimental design is different from the routine issues. Deregulation could be a solution, but it does not assure the total public safety. An appropriate risk assessment needs to emerge from empirical experiences from different countries governed by different regulations (Clark 1980). The three represented approaches to risk management aim to manage risk to establish a more predictable environment with better response to it through the contribution of different parties, including, politicians, regulators, advocates and people. Collective efforts are coordinated in order to manage the unexpected events that evolve continuously. Risk management is coping with uncertainty in an effective way, with creativity and confidence to the changing environment. Increasing the risk-taking ability should be the main target, not the accommodation with the unknown as represented in the first approach. The three represented approaches show the improvements in the human ability to manage risk through the knowledge of both of the risk and the benefits, making trade-offs and the reaction to the unexpected changes in the environment. Despite the emergence of the "risk-free" earning strategies, Boehm-Bawerk's Law theory has emerged. It assumes that the greater benefits could arise from the greater uncertainty through risk-taking. This theory represents the basis of the strategic corporate planning, as entrepreneurial success depends on its ability to take the risk. The ability of the entrepreneurs to take risk is considered as a biological factor that enables them to cope with risk. Different researchers have argued the issue of quality control and its effect in managing risk, others argue the importance of a rigorous science to eliminate the exploitation and incompleteness that characterize risk science today. This research has effectively differentiated between the old ways of risk management by just responding to it and the contemporary risk management with its ability to control risk and manage the social safety. Learning from errors is a central notion of the modern policy analysis. The rational management is used to evaluate policies and its evolution in different fields of examination (Clark 1980). Personal and societal responses to risk An example of a societal risk is the great failure of Malaria control in Africa. Malaria is still the most important parasitic disease that threatens the humans' lives. About 600 million malaria cases occur every year and 1 million deaths because of it. The majority of infections takes place in sub-Saharan Africa, it is considered an obstacle to development (Kouyat et al. 2007; The European Alliance Against Malaria 2007). Item People affected by the disaster Management Imposition People resist chloroquine, but they accept pyrimethamine-sulfadoxine Imposed antimalarial drug worldwide called 'chloroquine' Voluntariness People kept refusing chloroquine Volunteering efforts are made by WHO and the UNICEF Equitability Chloroquine is the main treatment of Malaria in Burkina Faso. The people resist this drug Suggested to switch from the chloroquine to ACT State of knowledge Peoples' disagreement about risk stems from their resistance to change, they tend to reject any information that seems inconsistent with their beliefs. The population state of knowledge is high. The management of societal risks in Burkina Faso failed to gain the acceptability of risk to the community Proximity People in Sub Saharan Africa are the most affected people with the Malaria pandemic. The proximity of infection and death is very high The proximity of risk is very high as people refuse to take the chloroquine and ACT is not available in the market. Time In the case of Malaria pandemic in Burkina Faso, the consequences happen as a continuous process as nothing could prevent it. No series actions were taken by the government to set a time limit to the expansion of infection. Extreme value The severity of risk that people face increases. It also leads people to focus on the extreme values of consequences. It also represents a high level of fear to people as their children die daily with no hope for a suitable solution. The UNICEF argues for the necessity of developing strategies to prevent Malaria and the adopt practices of personal hygiene Dread Malaria in Burkina Faso is highly endemic and the main cause of morbidity and even mortality The ministry of health has arranged for a national meeting to discuss the options of malaria treatment that suggested to switch from the chloroquine to ACT Unknown People ignore the fact that the ACT is unavailable in the market. The World Health Organization (WHO) also discovered that the decision of switching to ACT was not developed in practice and the drug is not available through government health services The UNICEF also argues for the necessity of developing strategies to prevent Malaria and the adopt practices of personal hygiene. Number affected People and their children die every day. As a result of the affection. It kills a child every 30 seconds About 600 million malaria cases occur every year and 1 million deaths because of it. Sources: Kouyat et al. (2007), The European Alliance Against Malaria (2007), UNICEF (2012), Slovic (1987) and Viner (2018). Legal and victim views of risk The general statements of expectation of theWork Health and Safety Act 2012of South Australia (SafeWork SA 2012 p.1), are as follows: Establish health and safety duties, including the primary duty to protect any person from exposure to hazards and risks that arise from work. provide for worker representation, consultation and participation including through Health and Safety Representatives and Health and Safety Committees. Assessment of risk in relation to a class of hazards, tasks, circumstances or things (South Auatralia 2017 p. 56) all hazards, tasks, things or circumstances in the class are the same; and the assessment of risks for the class does not result in any worker or other person being exposed to a greater, additional or different risk to health and safety than if the risk assessment were carried out in relation to each individual hazard, task, thing or circumstance. Regulations and codes of practice in relation to reasonably practical According to the Government of South Australia (2015 P. 6-7): 'In accordance with SA Health Policy Directive Work Health, Safety and Injury Management, SA Health acknowledges that the strategic and operational management of risk is integral to everyday sound management practice and good corporate and clinical governance. Roles and Responsibilities: The following Roles and Responsibilities are specific to this policy directive and should be read in conjunction with SA Health Policy Directive - Roles, Responsibilities and Governance (WHS): 5.1 Chief Executive / Deputy Chief Executives Will take reasonably practicable steps to: Exercise due diligence to ensure compliance with the intent of this policy directive and associated procedure; Establish awareness and accountability for the implementation of this policy directive. The four common law tests of negligence from a defending lawyer point of view The case represents Samarco iron ore mine disaster that resulted in the collapse of the Fundo dam at Mariana and caused a death of 19 people, damaging of villages and hundreds of homeless people beside of the pollution of the river. Samarco is owned by BHP and fellow iron ore giant Vale. It is considered as the largest disaster in Brazil's history (Lannin 2017). The case of Samarco reveals the lack of an emergency plan, problems in the licensing process, failure of the supervisory, and the negligence (Neotropica 2016). The four common law tests of negligence could be discussed according to Thomson (2015), Belmans (2017) and Ong (2016), as follows: The test of causation: The government of Brazil is the plaintiff of the disaster and Samarco has agreed to pay $US2.3 to the government to compensate the damages that took place after the collapse of the Fundo dam. Foresee-ability: The investigations that took place after the disaster revealed that BHP, Vale and Samarco are the direct responsibiles for the disaster due to a range of construction and design flaws. This puts a burden on the owners of the mine and they will respond accordingly. Controllability: The owners of the mine confess their responsibility for the disaster and decided to finance the efforts of cleaning up Samarco by allocating $US181 Mn. and $US133 million to the Renova Foundation, the charitable organization responsible for restoration works and compensate people and $US48 Mn. to run the mine. Reasonableness: The owners of the mine take the responsibility of eliminating the consequences of the disaster on the side of the environment, the homeless people and the work activities in the mine. Samarco Dam failure The risk assessment techniques are used to describe the means of combining qualitative ratings of consequence and probability to yield a risk rating (Peace 2017). Risk assessment is the basis for successful health and safety management, it is essential for reducing the occupational diseases and work-related accidents(Wijeratne, Perera Silva 2014). The successful risk management involves technical and social complementary functions. The social functions include actions related to the institutional dynamics necessary to communicate and understand the risk results and action implementation to reduce risk (Murnane, Simpson Jongman 2016). The disaster of the fall of the Samarco dam in 2016 has been negotiated by different governmental entities to evaluate the environmental and socio-economic damage caused by the disaster. The time period since the disaster happened is not enough to accurately evaluate the environmental and socio-economic damage that happened as a result of the disaster. The government has allocated a fixed amount of money of BRL 240 Mn. per year to cover the expenditure needed for compensation of the disastrous consequences. These disbursements are scheduled with a limited contribution for the first six years for the victims of the disaster. The Federal Prosecutor's Office offers the settlements primarily to the companies to protect their assets at the expense of the affected populations and the environmental needs. Moreover, it does not offer a mechanism for any foundations to implement projects required by Samarco. The MPF and the Public Prosecutors Office of the State of Minas Gerais in 2015 have e stablished an environmental guarantee of BRL 1 Bn. to fund the compensation. In addition, in order to better understand the consequences of the disaster, a multilateral agreement was established between several governmental entities and Samarco in 2015 to conduct a series of measures for emergencies including the water supply to certain cities (Salinas 2016). Management involves two components, risk determination and risk evaluation. The determination of the risk consequences involves the consequences of the potential risk, its magnitude and impact. The risk could be classified into four types of undesirable consequences representing the different severity and predictability. Crockford (1986) as cited in Tummala Schoenherr (2011) classifies them in trivial, small, medium and large. He assumes that the trivial consequences occur with a very high frequency, Many financial advisors and fund boards are reevaluating the organizational structures in relation to risk management through the adoption of more formal risk management practices. They adopt different approaches according to size, resources, business type and complexity of funds (The Investment Company Institute 2011). Stakeholders have to adapt to the needs and dedicate internal and external resources to assist in the risk management needs (Deloitte 2016). With regard to the previous analysis, the severity of the Fundo dam collapse is very high. After one year of the disaster, 43 million m3 of iron ore are still causing environmental damage and polluting 668 km of water (Do Carmoa et al. 2017). BHP Billiton Brasil Ltda has signed an agreement to fund a US$181 Mn. to support Renova Foundation and Samarco Minera financially. About US$48 Mn. were allocated to Samarco to carry the ongoing repair works in the short-run and cover facilities to support restart planning with a value of US$42 Mn. and the rest of the fund of US$6 Mn. were allocated to fund the experts contracted with the compensation programs (BHP Billiton 2017). Moreover, the total support allocated to Samarco by the various stakeholders accounted for US$137,097 in the first half of 2017 and US$142,000 in the second half of 2017. It is also expected that two more stakeholders will contribute with US$313,000 to directly fund the compensation programs continuously. All of these agreements are held under the control of Samarco (Samarco 2016). 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