The feasibility of wind energy from strategic management perspective in Russia

1. INTRODUCTION This research proposal has been complied to outline how an investigation into one part of the feasibility studies for wind energy developments are undertaken. From a strategic management perspective the socio-economics aspects of this shall be examined. These shall be considered by examining a number of case studies in Russia (as an example see; POWER, 2013; BAREC, 1998). 2. INTRODUCTION TO THE STUDY This study shall be undertaken by critically evaluating how these assessments are currently implemented in practice. The effectiveness of these shall then be assessed by comparing them to practices adopted by other countries (see as an example: Bell, Gray & Haggett, 2005; Bergmann, Hanley & Wright, 2006; Van der Horst & Toke, 2010). This could help to identify some opportunities, which may be utilised in Russia, to improve the undertaking of feasibility studies. 4. PROBLEM STATEMENT In Russia, feasibility studies are conducted to establish if wind turbine projects are viable (as an example see; POWER, 2013; BAREC, 1998). However, a variety of practices have been adopted to undertake these to date (Devine?Wright, 2005). This research seeks to ascertain if these practices could be improved, by establishing how these assessments have been undertaken in other countries. 5. RESEARCH AIMS AND OBJECTIVES In conjunction with the problem statement above, the following aims have been formulated: To use available and relevant data, to investigate how socio-economic assessments are managed by using various management strategies (during the feasibility investigation phase of wind farm developments). To use available and relevant data, to investigate how socio-economic assessments are implemented by using various management strategies (during the feasibility investigation phase of wind farm developments). To use the findings from the above two aims make recommendations for how practices may be improved in Russia. Additionally, the following objectives have been developed: To evaluate how socio-economic assessments are strategically managed and implemented (during the feasibility phases of wind farm projects in Russia and other countries). To evaluate if these assessments may be improved in Russia. 6. PROPOSAL STRUCTURE The proposed outline of the dissertation is described in the next section. 7.LITERATURE REVIEW To date, studies have been undertaken into the development of wind farms (see as an example: Bell, Gray & Haggett, 2005; Bergmann, Hanley & Wright, 2006; Van der Horst & Toke, 2010). The majority of these have been focused on developments in Europe or the United States of America. There are a few case studies, which are pertinent to these types projects in Russia (as an example see; POWER, 2013; BAREC, 1998). Mainly, these case studies show that a variety of techniques are used to seek to ascertain if these developments are feasible. To ensure that this is the case a number of assessments are undertaken (see as an example: Bell, Gray & Haggett, 2005; Bergmann, Hanley & Wright, 2006). This helps to ensure that each aspect of the development and its impacts are fully considered. One assessment, which is important, seeks to evaluate the socio -economic impacts of wind farm developments (Wolsink, 2007). It is the management and implementation of these in Russia, which this study s eeks to explore. This shall be achieved by examining the literature from Europe or the United States of America (see as an example: Bell, Gray & Haggett, 2005; Bergmann, Hanley & Wright, 2006; Van der Horst & Toke, 2010) and comparing this to the Russian case studies (as an example see; POWER, 2013; BAREC, 1998). This will enable the researcher to understand how these are undertaken in a number of countries and how practices may be improved in Russia. 7.3 LITERATURE REVIEW SUMMARY The findings from this review shall be detailed in a summary and the research questions shall be outlined. 7.4. RESEARCH QUESTIONS Provisionally, the following research questions have been developed. How have socio-economic assessments been strategically managed (during the feasibility studies of wind farms in different countries) How have the socio-economic assessments been implemented (during the feasibility phases of wind farm developments in Russia and other countries) To date, what lessons have been learnt from one and two, and how may these be applied in Russia 7.5 METHODOLOGY Due to the nature of this study, the research shall be based on an extensive review of the literature and case studies. Once all of these have been examined and collated a number of recommendations shall be made. 7.6 RESEARCH PHILOSOPHY The research philosophy, which has been adopted for this study is positivism. This will allow the investigation to be a critical and objective base method (Sundars, 2003). 7.7 RESEARCH APPROACH The research approach, which has chosen for this study is qualitative in nature, as it will be based on a literature review (Sundars, 2003). This will allow the research to explore the problem, which was outlined above, to see if any improvements may be made. 7.8 RESEARCH STRATEGY The research strategy, which has been chosen for this study is a literature review (Sundars, 2003). 7.9 DATA COLLECTION The literature review shall be conducted by searching websites electronic journals, case studies and relevant books. Once a number of relevant sources have been identified these shall be used to collect information to investigate the research problem. 7.10 DATA ANALYSIS All analyses shall be based on the literature, which is identified during the data collection phase of this study (Sundars, 2003). 7.11 ACCESS Access to this literature shall be established through searching library resources, electronic journals and websites. 7.12 RELIABILITY, VALIDITY, AND GENERALISABILITY The reliability and validity of this research shall be ensured by only using sources of information, which are deemed to be suitable for this study. The generalizability of the findings from this study shall be limited as it will be based on secondary sources and the study findings will only be valid whilst these sources of information remain current (Sundars, 2003). 7.11 ETHICAL ISSUES There are no ethical issues which need to be considered whilst this research is being conducted. 7.12 RESEARCH LIMITATIONS As this research is based on secondary sources, the data, which is available, may limit the findings from this and as already stated as the study is based on the current situation in Russia, its findings may only be valid for a limited time. 8 CONCLUSION In conclusion, this study shall be undertaken by seeking to identify and critically evaluate a number of secondary sources. This will enable the strategic management and implementation of socio –economic analyses to be critically evaluated. The effectiveness of these in Russia shall then be assessed by comparing them to practices adopted by other countries. Then a number of recommendations may be made where this is appropriate. 9 TIME CHART TasksTask LeadStartEndDuration (Days) DissertationResearcher7/06/137/15/1310 Write Up Results 7/06/137/20/1315 Write up analysis 7/21/138/01/1312 Write Recommendations 1/08/1313/08/201310 Draw Conclusions 13/08/201318/08/20135 REFERENCES BAREC (1998) Conditions for the development of Wind Power in the Baltic Sea Region. Available from http://www.basrec.net/files/basrecdocs/Projects/BASREC-wind%201_enabling%20studies_120424.pdf (Accessed 03/07/2013) Bell, D., Gray, T., & Haggett, C. (2005). The ‘social gap’ in wind farm siting decisions: explanations and policy responses. Environmental politics, 14(4), 460-477. Bergmann, A., Hanley, N., & Wright, R. (2006). Valuing the attributes of renewable energy investments. Energy Policy, 34(9), 1004-1014. Devine?Wright, P. (2005). Beyond NIMBYism: towards an integrated framework for understanding public perceptions of wind energy. Wind energy, 8(2), 125-139. POWER (2013) Perspectives of Offshore Wind Development. Available from http://www.corpi.ku.lt/power/ (Accessed 03/07/2013). Saunders, M. (2003) Research Methods for Business Students. South Africa: Pearson Education. Van der Horst, D. (2007). NIMBY or not Exploring the relevance of location and the politics of voiced opinions in renewable energy siting controversies. Energy policy, 35(5), 2705-2714. Van der Horst, D., & Toke, D. (2010). Exploring the landscape of wind farm developments: local area characteristics and planning process outcomes in rural England. Land Use Policy, 27(2), 214-221. Wolsink, M. (2007). Planning of renewables schemes: Deliberative and fair decision-making on landscape issues instead of reproachful accusations of non-cooperation. Energy policy, 35(5), 2692-2704.

Julius Ceasar

Brutus gives his thoughts of killing Caesar in William Shakespeare’s tragedy Julius Caesaract 2 scene 1. In Brutus’s soliloquy he reveals how Caesar â€Å"might change his nature† (4). Brutus also states â€Å"he may do danger† (8). What Brutus is referring to is if Caesar gets crowned he might abuse his power. Brutus is an honorable man who is for the people of Rome. Although this might not be his reasoning for killing Caesar. It may be that Brutus himself wants power. Therefore Brutus is willing to do anything necessary to get what he wants. The metaphor Brutus uses in his soliloquy is how Caesar may climb â€Å"young ambitions ladder† (13). Brutus repeats that Caesar is climbing a ladder to get what he wants. To repeat Brutus declares â€Å"whereto the climber-upward turn’s his face but when he once attains the upmost round he then unto the ladder turns his back† (14-16). To be sure Brutus wants to join the conspirators to kill Caesar, Brutus articulates how Caesar will turn his back on the people that he once used to get to the high place he wants to be at, which is the crown. â€Å"So Caesar may† (18). Which means Caesar might do all these bad things. Therefore Brutus thinks of Caesar as a â€Å"serpent’s egg† (23). Thus Brutus thinks it’s necessary to â€Å"kill him in the shell† (25). At the end of Brutus’s soliloquy Brutus has made up his mind to join the conspiracy and kill Caesar. There could be many topics from this quote but the two most important topics are projection and ambition. In this soliloquy Brutus projects how he feels about Caesar. In doing so, Brutus manipulates what Caesar actions to get what he wants. Brutus wants what is best for the people and himself and Brutus thinks that Caesar will do harm to the people if he is crowned. Brutus also suggests that Caesar will change and be a different person. Everything that Brutus projects about Caesar, Brutus is construing to his own fashion. To be correct Brutus states that Caesar is ambitious. Brutus implies that Caesar is striving for the crown. Although Caesar doesn’t show his ambition literally he shows it other ways. Granted that Brutus may also be ambitious, due to the fact that he wants to kill Caesar and join the conspiracy. Brutus says that Caesar is ambitious for power but that might not be the case. It might be that Brutus is more ambitious than Caesar for power. Brutus does not show how ambitious he is for power until the end of his soliloquy. In this soliloquy it shows how ambition can be a negative connotation because desires something. Brutus esires Caesar to die and to make him self seem like honorable man to the people. Although in reality Brutus is just trying to get one of his desires. And Caesars desires were the crown. If Caesar desires the crown then Caesar is in the way of Brutus’s desire. So therefore Brutus needs to think that killing Caesar is the right thing to do for himself. To conclude Brutus must kill Caesar to get what he desires the most. Although Brutus was not only influenced by his desires but the desires of Cassius. By the end of this quote it shows how Cassius projected Brutus’s thoughts of Caesar. Therefore Brutus must kill Caesar.

Goodwill Impairment Testing Essay

Galaxy Sports Inc. (Galaxy), a U.S.-based manufacturer of sports equipment, is a calendar year-end SEC registrant with one operating segment and the following three reporting units: Fitness Equipment. Golf Equipment. Hockey Equipment. Galaxy is in a competitive industry with several publicly traded companies in which growth and profitability are tied to the market and consumer demand Three reporting units are appropriate because discrete financial information is available for each component, each component is a business, and each component is managed separately. The Fitness Equipment component is Galaxy’s largest reporting unit. Over the years, various acquisitions have resulted in recorded goodwill of $200 million assigned entirely to this reporting unit. The Golf Equipment component is a large golf equipment manufacturer that was acquired in 2004. Upon acquisition of the business, Galaxy recorded $130 million of goodwill that was assigned entirely to this reporting unit. The Hockey Equipment component is a small hockey equipment manufacturer acquired in 2003 to gain entry into the very profitable hockey equipment market. Galaxy recorded $30 million of goodwill related to this acquisition, which was assigned entirely to this reporting unit. Galaxy has elected an annual goodwill impairment testing date of December 31 for all three reporting units. In December 2010, Galaxy management engaged Big Time LLC (Big Time), a reputable external valuation firm, to perform three annual ASC 350, Intangibles — Goodwill and Other, impairment analyses (one for each reporting unit) on the $360 million of goodwill recorded by Galaxy as of December 31, 2010. Previously, management had performed the annual goodwill impairment analysis internally. However, given the increasing complexities involved in the calculation and resource constraints at Galaxy, the company decided to use a third party. Through early discussions with Galaxy’s management and Big Time, it was expected that the entity was going to pass step 1 of the goodwill analysis for all three reporting units with a significant cushion (i.e., the estimated fair value of each reporting unit significantly exceeded the book value) for each reporting unit. This was also consistent with the goodwill analysis that was performed internally by Galaxy in the previous year. Copyright 2009 Deloitte Development LLC All Rights Reserved. Case 11-9: Goodwill Impairment T esting Galaxy management indicated that the significant cushion was likely because 2010 Q4 sales were very strong, and strong sales were also expected for 2011and beyond. Big Time completed its analysis in late January 2011 and, as expected, Galaxy passed step 1 of the annual goodwill impairment test for each reporting unit. Galaxy’s common share price was $56.75 as of December 31, 2010. Note: As of December 31, 2010, Galaxy’s share price was $56.75 and 46 million shares were outstanding, indicating a market capitalization of $2.6 billion. The implied control premium of 18 percent is viewed by management as reasonable. First Quarter of 2011 Management released Q1 earnings, which were slightly below expectations. In a Q1 press release, Galaxy attributed the lower earnings to the slowing economy and reduced consumer spending on recreational activities. Galaxy’s common share price fell to $49.25 after the release of Q1 earnings. Second Quarter of 2011 Management released Q2 earnings on July 15, 2011. As in Q1, Q2 earnings were also below expectations because the slowing economy resulted in continuing reductions in consumer spending. In Galaxy’s press release, management discussed the impact of the slowing economy on its business. Further, the company experienced additional pressure on its sales during the quarter as a result of an increase in sports equipment manufactured in China that was being sold at large discount retailers. The equipment has a lower price point, which is appealing to consumers during difficult economic times. Historically, Galaxy has not experienced significant competition from imports because the quality of the imports is inferior to the quality of the sports equipment manufactured by Galaxy. Galaxy’s common share price fell to $45.25. Third Quarter of 2011 During the financial close process, management considered performing an  interim goodwill impairment test but, after reviewing ASC 350, determined it was not necessary. Copyright 2009 Deloitte Development LLC All Rights Reserved. Case 11-9: Goodwill Impairment T esting Page 3 Management released earnings on October 15, 2011, and indicated that although Q3 earnings were significantly below expectations because of a continued slowing economy and reduced consumer spending, revenue would rebound in Q4 as retailers stocked up for the holiday shopping season. Historically, Q4 has been the strongest quarter for Galaxy with Q4 sales representing more than 50 percent of the company’s annual sales. Galaxy’s common share price fell to $31.50 after the earnings release. On September 15, 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which amends the guidance in ASC 350-202 on testing goodwill for impairment. Under the revised guidance, entities testing goodwill for impairment have the option of performing a qualitative assessment before calculating the fair value of the reporting unit (i.e., step 1 of the goodwill impairment test). The carryforward option permitted in ASC 350-20-35-29 was removed. The amendments are effective for an nual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted; however, Galaxy elected NOT to early adopt this guidance when performing their annual goodwill impairment test as of December 31, 2011. Year-End 2011 As Galaxy prepared for its annual goodwill impairment test, management determined that (1) assets and liabilities of the Fitness Equipment and Hockey Equipment reporting units had not significantly changed, (2) the most recent fair value determinations (the 2010 analysis prepared by Big Time) for both reporting units resulted in an amount that exceeded the carrying amounts by substantial margins, and (3) on the basis of its analyses, there  have been no significant events or circumstances that would cause the fair value to fall below book value for both reporting units. As a result, management decided to carry forward the prior-year step 1 analyses for the Fitness Equipment and Hockey Equipment reporting units. Management believed that ASC 350 supported its determination to carry forward these analyses. For the Golf Equipment reporting unit, management used the analysis created by Big Time last year and updated it as of December 31, 2011, by using the same growth rate and discount rate as in the prior year. On the basis of this updated analysis, management concluded that the Golf Equipment reporting unit passed step 1. A summary of Galaxy’s 2011 annual goodwill impairment test follows: * We have elected to carry forward the fair value as of December 31, 2010. Note: On December 31, 2011, Galaxy’s share price was $27.50 and 50 million shares were outstanding, indicating a market capitalization of $1.375 billion. We firmly believe that the reporting unit fair values represent management’s view of the company’s business and expectations. The market has undervalued the company’s stock. Accordingly, the implied control premium of 120 percent is viewed by management as reasonable given the overall market climate. Galaxy released year-end earnings on January 25, 2012. On the basis of the annual earnings release and the lack of an expected Q4 rebound, Galaxy’s common share price fell even further, from $27.50 on December 31, 2011, to $21.25 after the earnings release. Galaxy filed its December 31, 2011, Form 10-K on February 10, 2012. Required: Should management have performed an interim goodwill impairment test as of September 30, 2011? Assume no interim test is required. Was management justified in carrying forward the prior-year goodwill impairment test for the Fitness Equipment and Hockey Equipment reporting units?

Globalization Argumentation Essay

(1, Premise) Globalization effects on economy, administrative, and geographical system of the nations in an effective manner. In today’s more challenging and competitive business era, globalization is one of the most important factors that have a direct or indirect effect on the economic, administrative, and geographical system of the nations in an effective and proper manner. There are rapid changes in the economics of the nations, due to globalization. In addition, different kinds of issues are developed or created by the globalization to the countries. Also, these are effecting the nations directly or indirectly. For example. High risk investment in other countries is considered a significant issue. (1, Conclusion) â€Å"After the globalization of the worldwide market, foreign investors faced the high risk to invest in the other nation due to the differences in administrative, geographic, economic, culture and demographic condition of the countries.†(Lynch & Gemini, 2010) (2, Premise) Globalization contributes to the improvement of technology that helped national companies. There are various technological improvements that create effective contribution in the globalization of markets and production. It is identified that the use of computers help the companies to adopt globalization and improve its market share in the global market. In computers, the use of the internet helps companies go global and add extra features to their production and operation activities. (2, Conclusion) â€Å"Through international technology, companies are also able to achieve competitive advantages over national and international competitors in an effective way.† (Mobius, 2012) (3, Premise) Globalization provides options of companies to improve their business through enter in the new country market. One improvement in technology related to change in the transportation technology helped the companies make globalization of markets  and production. The development of commercial jet aircraft and super fighters and development of ship transportation help companies simplify the trans-shipment from one mode of transport to another. (3, Conclusion) â€Å"Globalization helps companies to improve its market presence in the global market and introduce new production plants in different countries of the world to provide the right product to the right customers at the right time with the lowest cost† (Peng, 2009). (4, Premise) Globalization provides options of the companies to improve their position to attract or reach the new market and more customers. Technology is helpful for companies to generate global opportunities through attracting global customers for products and services. Changes in the telecommunication and introduction of the World Wide Web help companies connect with the global customers in an effective way and develop the opportunities in order to improve the market. There are various global marketing trends a global company needs to fulfill. The changing demand of customers, changes in advertising media and attraction for global customers are all important. In order to reach this target, global marketers need to target global advertising in order to attract global customers in an effective way. (4, Conclusion) â€Å"Through the targeting global advertising for the products and services, companies can also increase its customer base in the international market and can achieve competitive advantages over competitors in national and international market† (Shan, 2012). The first premise is an example of inductive reasoning as it is intended only to be so strong that, if the conclusion is different with premises. First premise: globalization impacts on countries economy, administrative, and geographical system, but the conclusion states differences that after the globalization, foreign investors face the high risk of investment in other countries due to the differences in countries’ administrative, geographic, economic, culture and demographic condition (Swenson, 2005). In addition, deductive argument is thought to be completely guaranteed of the premises truth, which means the conclusion is similar to the premise. Premise 2 is the example of the deductive argument as the premises and conclusion is the same, which the globalization or internationalization contributes into the improvement of technology as international technology reached of the companies that helped companies to achieve competitive advantages. References Lynch, M. & Gemini,C. (2010). Wealth: How the World’s High-Net-Worth Grow, Sustain, and Manage Their Fortunes. USA: John Wiley & Sons. Mobius, M. (2012). Passport to Profits: Why the Next Investment Windfalls Will be Found Abroad and How to Grab Your Share. USA: John Wiley & Sons. Peng, M.W. (2009). Global Business 2009. USA: Cengage Learning. Shan, W. (2012). The Legal Protection of Foreign Investment: A Comparative Study. USA: Hart Publishing Limited. Swensen, D.F. (2005). Unconventional Success: A Fundamental Approach to Personal Investment. USA: Simon and Schuster.

No topic Essay Example | Topics and Well Written Essays - 250 words - 8

No topic - Essay Example The leucocytes involved in inflammatory response are basophils, eosinophils, neutrophils and macrophages along with tissue cells called mast cell. The damaged tissues release chemicals like histamine, kinins and prostaglandins that cause widening of blood vessels and increase in blood flow to site of injury. These chemicals initiate the white blood cells or leukocytes to migrate to injured site that is known as chemotaxis. The inflammatory response can be triggered by exogenous or endogenous agents like complement found in the plasma helps in releasing bradykinin and fibrinopeptides that helps antibodies to fight against the foreign substances. Two types of white blood cells are visible near the injured site, neutrophils are first found that help in avoiding the harmful bacteria from spreading while microphages are seen later to help clearing the damaged area of bacteria or dead cells thereby generating new tissue that reside until the injury is healed completely. 3. Proliferation takes up to four weeks or more depending on the severity of injury, in cases of severe injury the area affected may compose of specific tissue cells and other tissue known as granulation tissue which forms the scar tissue if not removed thereby decreasing the functional ability of tissue. 4. The new cells spread in the injured area try to produce a functioning tissue that might take months or years to develop with proper functioning. Stretching is helpful in strengthening the new tissue during remodeling. Organelles are bodies present in the cytoplasm that tend to serve various metabolic activities within the cells while lysosomes are sac like compartments that contain several enzymes helpful in breaking down harmful cell products, waste materials, cell debris and foreign substances in a phagocytic cell example macrophages and neutrophils. Stroma is the supporting framework of an organ composed of

The Later Roman Empire Essay Example | Topics and Well Written Essays - 750 words

The Later Roman Empire - Essay Example Stephen Williams and Gerard Friell discover why and how, contempt same political and military agitations, the western empire all but broke down and the eastern empire lived and amalgamated its strength confront of the incursive weak, barbarians, and immature imperial and machinations around the globe.   The article explores the threats from the huns, due to the fact of tribal power. The article discusses about the factors of durability during establishment of Roman Empire. It highlights the administrative, fiscal and diplomatic experience.The Rome That Did Not Fall examines the remarkable convalescence of the eastern empire, equating the straight and varying growths in east and west, and retracing the development of new accomplishments and schemes in the east_diplomatic, political, military and fiscal (Williams, Feriell 1). It gives a clear and explanatory discovery of the Roman Empire in fifth century.The end of the Roman Empire is written by BRYAN WARD. It discusses about the dec line of Roman Empire.   It highlites the factors and facts that are related to the decline of the Roman Empire. It covers both the sequential annihilation of the political, military, and economic and other related social schools of Rome and the barbarian encroachments that were concluded as its final sentence in Western Europe (Perkins 1).The Roman Empire decline was slow, it didn’t occur overnight. Many authors look this decline in several different perspectives. The slow decline took place over.... s raise the question about the importance of this date, this is not just because the legitimate emperor Julius Nepos, identified by the East Roman Empire, used to live in Dalmatia, until he was killed in 480. More significantly, the Ostrogoths who safely assumed themselves maintainers of the direct line of Roman traditions. And as Bryan noticed, the Eastern Roman Empire was losing its strength and continuously facing decline until the on May 29, 1453 when the Fall of Constantinople occurred. The author takes the new perspective of the Fall of Rome, by arguing that the caused the demise of the Empire. He has concluded that the fall of Rome was because of the political instability, reduced tax revenue and foreign invasion (Demandt 12). The invasion left long term damage on Rome. The invasion lessoned about the long term capability to equip the hordes with predictable outcomes. As regular invasions instigates provisional rebellion as self help by implementing imperial resources. He argu es that some people did not see the decline of the Rome as a bad thing for the involved. On the other hand, many authors consider the decline of the Rome as a disaster. The author also points the series of facts, and decision which caused the huge disaster in Rome (Jones 284). Western Europe has now recovered a lot but it took around thousand years and still there is room for recoveries. Rome still needs to recover a lot in order to retain its previous position back. The decline was a huge disaster and it needs more efforts and strong policies in all sectors in order to regain its position. Proper implementation of strong policies will surely help a lot in achieving the powering position of Rome (Heather 41). Western Europe has actually recovered a lot but it took a long to retain back its

How has inflation adversely affected social security Term Paper

How has inflation adversely affected social security - Term Paper Example The fund raising mechanism of Social Security makes it a ‘pay-as-you-go’ system and can be termed as advance-funded. In simple words, funds to this program are contributed by the people who are presently working and are utilized for the benefit of the retirees. Ohlemacher (2010) states that Social Security is funded by a 6.2 percent payroll tax, paid by workers as well as employers. The Social Security corpus is being constantly used and is being replenished at the same time. Since inception, the Social Security program has done exceedingly well and has helped the country tide over many difficult situations. Till date, it remains one of the most successful and most popular programs in the United States which has touched the lives of millions of Americans. Vernon (2011) reveals that as of January 1, 2011, the Social Security trust fund stood at $2.6 trillion. At the end of 2010, close to 54 million people were beneficiaries of this program, while another 157 million peopl e had earnings covered by Social Security and paid payroll taxes. The outflow (expenditures) of the scheme stood at $713 billion while the total inflow (income) was $781 billion in 2010. Of this $664 billion was non-interest income while $117 billion was generated by way of interest. Inflation and Cost of Living Allowances There have been annual increases in Social Security benefits which try and counterbalance the adverse effects of inflation on fixed benefits. This indexing of Social Security benefits for inflation is of monumental importance because the absence of such indexing would result in the erosion of the purchasing power of the beneficiaries. Prices tend to rise over time and increase the cost of living. In such a scenario the beneficiaries would be able to purchase fewer goods and services unless the benefits rise in line with inflation. Known as Cost of Living Allowances (COLAs), these increases in Social Security benefits, based on the annual increase in consumer price s, have become an automatic annual feature of the program beginning 1975. Prior to that, such increases were accorded to the beneficiaries only when the Congress enacted a special legislation. The COLA adjustment is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Work ­ers (CPI-W) over the last year. In periods of deflation where the CPI-W does not increase, no COLAs are announced. Change in Formula Recent reform proposals have called for changes in Social Security’s cost-of-living adjustment (COLA) formula. It has been proposed that a new ‘chained CPI’ be used instead of ‘CPI-W’ that is being used at present. The chained CPI would take into account ‘substitution purchases’ that consumers make to avoid high prices. Estimates reveal that the beneficiaries of Social Security would have to contend with smaller increases under the modified, chained CPI. Estimates reveal that the revised formula would res ult in a retiree receiving $560 less as benefits per year in the first decade. This loss in benefits would reach $984 in two decades from now. There is a section of the society that avers that the government should adopt an elderly-specific