Summary:

The Global Economy is characterized by increasing interdependence, which facilitates the transmission of economic and financial shocks, since even geographically distant sites to the weaker economies resulting from globalization of society.

A manifestation of the aforementioned is in the sustained growth of the impact of speculative finance in the World Economy, which has been the subject of multiple investigations, in order to minimize its harmful effects on the weaker economies and to achieve greater economic and financial stability worldwide, which allows designing and implementing national development plans in all countries.

Taking into account the effect of the item stated this work was undertaken, which proposes a model for the global currency realignment, which is based on the monetary integration of the countries to one of three regional blocs that are the centers economic power at present: Asia, Europe and North America and discusses the main benefits arising from their employment as well as obstacles to their implementation.

Abstract:

The current World Economy is Characterized by a Growing Interdependence, Which Facilitate transmission of Economic and financial disturbance, Even from Geographically Distant places, to the Weakest Economies as Consequence of the globalization process of Society.

An aforemention is evidence of the speculative financing the Impact of Sustainable Growth on the World Economy. Therefore, a lot of research has-been done, in order to reduce adverse effects on the STI Weakest Economies and Achieve a Stronger Economic and Financial Stability at a planetary scale, That will allow to project and carry out National Development plans in all countries.

Taking Into account the current Validity of this subject, the present paper is present, in Which a model for a Monetary reordering at a world scale is propos, based on Monetary integration of countries to one of the three regional blocks That establishing the centers of Economic Power: Asia, Europe and North America. Also, the main Advantages derived from it are discussed, as well as the enforcement Obstacles for STIs.

I. Introduction

In recent times the word “globalization” has been gaining space in galleries worldwide. This is due largely to concerns expressed by governments, national institutions and the general community, the growing interdependence of countries and the consequences that this situation causes: transmission of economic and financial shocks from distant places to weaker economies, as evidenced in the cases of Mexican and Asian crisis.

However, it must mean that it is an oversimplification to associate the process of globalization exclusively to economic activity because it influences a greater or lesser degree in all spheres of human activity and therefore its study and characterization of major importance to establish conscious actions to reduce adverse nuances of impact.

A It should be added, that the rapid development of communications and Information Science, has helped to elevate the impact new levels of trading on local economies, which was observed at the time in affectations of Latin American economies because of the crisis of the Asian tigers, the “tequila effect” and so on.

In this context, the continuous growth of scientific expertise in all disciplines can, first, to obtain a more complete picture of the world and its laws, and otherwise contributes to the spread and emergence of new concepts. Such is the case of the concept of economic fact and development that have gone through several meanings and interpretations in economics can be summarized as follows:

– Before the 50s the concept of development was not used explicitly, because the economic strategies were associated primarily with economic growth, which was regarded as the supreme goal. At this point it is important to mean that after the 1929 crisis and the rise of Keynesianism appears the first element of a social (from a bourgeois perspective): the concern for employment and the debate continues about the feasibility or otherwise of full employment.
- In the run to the end of World War II, although the concept of growth theory was generally applied only to the metropolis that it exercised a conscious action on the economy
- At the end of World War II with the rise of the socialist camp and the end of colonialism (at least in its formal aspect), begins to show a concern for bourgeois theorists in relation to the strategy they should adopt the former colonies in the path to development, raising the Theory of Development-oriented basically economic growth as synonymous with development or expression from a capitalist approach
- The concept of development has evolved from a synonym to the contemporary growth of environmentally sustainable development, which is not only applicable to Third World countries but also developed countries in their growth strategies
- As a result of the aforementioned developments comes the concept of natural capital, which is considered as a source of investment rather than consumption
- The choice of how to establish a development strategy is not a finished issue, as there are multiple questions with different answers, so that each country should choose those that best suit their acquired advantages and its potential
- The state’s role should be aimed at regulating the economy, acting as a catalyst for social progress through the process of redistribution of wealth by all means possible (strategic planning)
- Initial development concept begins to evolve, and is gradually shifting its center of analysis to the man as a key issue in policy and strategy for development when some countries that have achieved significant economic growth rates do not reflect a significant improvement in its social indicators.
- At this time also began an awareness regarding the indiscriminate exploitation of natural resources, which has its climax in the oil crisis (1973) which strengthened the environmental concerns of the previous decade about the waste of resources, essentially non-renewable. Thus arises the concept of development within a framework of environmental protection
- This context gradually led to the concept of sustainable development, which blends the needs of economic growth with environmental preservation and expresses the inability to achieve true development if not carried out a more equitable distribution, which progressively reduce poverty rates in the Third World. Therefore, the concept of sustainable development gained in the evolutionary process of the Theory of Development, is equally applicable to developed countries or the Third World.

It may therefore be said that the current extent of Sustainable Development include: economic growth without which no development is possible fairer redistribution of wealth to ensure social equity and environmental protection through the use of technologies and projects appropriate development, where waste reduction, recycling and use of renewable energy has an essential role, and the solution of managerial and structural problems that reduce economic efficiency which is necessary for these purposes.

Another issue affecting the credibility and success of macroeconomic policies is corruption, a phenomenon that is not proprietary, as sustained in the recent past, the underdeveloped economies, it appears, with increasing frequency, in developed economies and that points to the need for supranational institutions to monitor and control the resources of all kinds, particularly for transnational corporations.

The above shows the existence of an adverse horizon, characterized by instability, which affects more significantly weaker economies, which they added to their unfavorable situation, the fact unattractive to investors, depriving the necessary capital to carry out development programs.

Taking into account the aforementioned aspects, the present work was undertaken with the aim of propo
sing a model of monetary turnover is likely to improve monetary and financial stability worldwide, which will provide a particularly advantageous in smaller economies and facilitate the design and implementation of national development plans and long term.

II. The financial environment
Financial institutions II.1

At present the two financial institutions contributed most to the performance of lower-income countries are the World Bank (WB) and International Monetary Fund, which are considered complementary institutions: the BM preserves the structure of production and long-term investment and the second short-term equilibrium (the exchange rate, money, credits).

However, the World Bank’s basic function is to finance development projects in its member states, especially the poorest, but the projects are selected based on economic criteria alone, despite the current development concept has three fundamental edges: economic growth, social development and environmental preservation.

In the case of the International Monetary Fund, its intervention in the macroeconomic policies of countries in difficulty has promoted neoliberal models, which have had an adverse social impact, especially in recent times and has been heavily criticized .

The information given in this section highlights the need for a transformation of the mission and strategies of these institutions and international financial scheme in order to achieve in practice the three shades of the development concept outlined above.

II.2 Solutions that do not work: the dollarization

A variant has been proposed and adopted by some countries is the dollarization of its economy, which in practical terms is when in some ways the U.S. dollar the currency moves in its three basic functions: as a means of payment, unit reserve account and pattern.

Its adoption by some countries is based on the advantages that recommend its defenders: elimination of currency risk and costs associated with foreign exchange commissions, low real interest rates, the business purposes easier to manage their accounts to make more real, reduce the financial cost, easier access to financing, it contributes to greater stability in prices (inputs, wages and final product), it maintains the value of the goods sold on credit and still keeps the value of debt.

However, the impact of the disadvantages of dollarization, as is the resignation of the economy in pursuit of domestic monetary policy with the disappearance of the central bank being subject to variations in the country issuing the currency is too high a price for poor countries.

In short, dollarization may contribute to financial regulation, but does not generate development, since it involves the same to the holders of more resources.

III. A magic number: the three

In everyday practice, in many systems is a key number of components that allow characterization: the three. Among the relevant examples, covering virtually all areas of human activity may include the following:

? In the design process there are three vital elements: inputs, outputs and feedback regulation ensures the system and hence their proper behavior
? The most stable structure in Civil Engineering is the triangle, which has three sides.
? The lights used in traffic control device are three: red, yellow and green.
? In physics there are three body types in response to the electrical charge that have: positive, negative and neutral, which represents the balance between the two.
? The Catholic religion is based on the Holy Trinity: Father, Son and Holy Spirit.
? The social sphere is not immune to it. In relationships, the third is an undesirable, but its potential presence is this a conscious or unconscious.
? The modern business is based on relations of the most effective and efficient three factors: external customers, internal customers and owners.
? The case is based on three components: plaintiff, defendant, impartial, responsible for ruling on the dispute.
? The development concept includes three shades: economic growth, social progress and environmental preservation.
? In terms of the World Economy, there are three centers of power: Europe, Asia and North America.
? The employment structure of a country consists of three components: agriculture, industrial production and services.
? The key elements of macroeconomic models are three: external and internal agents and state.
? The occupational structure of a country includes three basic categories: agriculture, industry and services.

The above examples show that patterns of activity in various spheres of human activity, from problems of limited significance to those ranging from technical problems related to the family relationship, through religion and economics have a set of three factors or characteristic magnitudes, which may be evidence of a more general behavior of nature and society, and therefore the modeling using this number of factors (three) may be thought to correspond to a natural behavior .

IV. Global monetary Rearrangement
IV.1 Background to the proposed model

Before presenting the model proposed in this paper is appropriate to identify a set of practical evidence that can be considered as background and which may be summarized as:

– The process of globalization is considered objective, namely, a law of social development, and thus promote the integration processes, including countries with greater economic power.
- The creation, establishment and survival, for the good of mankind, the Euro, which is not without logic uncertainty and instability of all change, especially when it opposes hegemony in a unipolar world, is evidence integration is possible without assimilation.
- Mr. Robert Mundell to comment on the impact of the Euro in the World Economy in the Economists’ Meeting held in February 2002 in Havana, said that in his opinion it would be complemented by the emergence of a currency for the Asian region.
- The adoption of a currency must be the result of gradual economic integration and not a means hold the government to avoid funding shortfalls in the public sector which should be done in times of stability and growth rather than deficit Troubleshooter .

IV.2 Proposed Model

The model proposed in this paper for the global currency realignment is based on the principle of monetary integration in each country to one of the centers of power which are limited to three currencies circulating worldwide.

In practice, to achieve an economic balance for the existence of parity between each of the currencies of the proposed currency blocs, they would consist of:

? Block # 1: Europe, Australia, Russia and Africa.
? Block # 2: Asian Countries.
? Block # 3: Americas and the Caribbean.

IV.3 Considerations about model
Strategy IV.3.1 its validity

The strategy for implementation of this model is the integration block in stages, so that the big powers feel competition and consider the need to integrate, a recent example of which is the WTO meeting held recently in Cancun, where a common position to the poorest countries prevented the adoption of agreements that were unfavorable to them.

In a first stage it appears that integration is more feasible in the Southern Cone from MERCOSUR and the Caribbean from CARICOM, while for the European region the challenge is to integrate the countries that have not yet made .

IV.3.2 Benefits

This organization has the following advantages:

? The internationalization of monetary organization can more effectively control the operations of transnational companies that exist today, which use this feature as a fortress against the countries of weaker economies.
? fiscal control is facilitated, as the supervisory standards adopt a more universal character.
? This financial organization model reduces the impact of natural disasters aff
ected the economy, the rest of the members can keep the exchange rate. However, the fact remains that if the weight on the bloc’s economy in the country concerned is high may represent a relatively large impact for the entire set, but always with less intensity than if it were an isolated economy.
? It facilitates the development of plans for comprehensive development in the sense indicated in this work, medium and long term, to have economic stability.
? As part of a bloc, countries with better performance, conduct actions to raise the level of activity of the poorest, to ensure a minimum prior to joining the bloc, which in itself is a contribution to improving conditions those most disadvantaged. Therefore, this model is also a way to make the most developed effectively support the development of those countries whose economies are most disadvantaged in today.
? Elimination of trade barriers between the countries within the bloc, which is favored trade.
? This ensures the necessary existence of a triad, as experience shows that the bipolar world competition can lead to disappearance of one of them in the absence of regulation, with the harmful consequences that are seen today in the international order.
? Unlike neoliberal policies, the presence of a supranational regulatory body, the Central Bank of the currency adopted, allows the action of the market without the initial allocation of resources leads inevitably to the abolition of some and social inequalities are produced or national .
? The time constants of the mechanisms of transmission of shocks, which are proportional to the strength of the economy concerned, they become much larger when integrated into a block, and therefore increases the delay in the propagation of a Indeed, thus has a greater ability to maneuver to develop macroeconomic policies that minimize the negative impact of externalities.
? The role of speculative finance decreases, thereby helping to reduce the likelihood of the emergence of a financial bubble with its consequent effects on the global economy.

IV.3.3 Barriers to solve

It would be utopian to finish this proposal without offering a series of reflections about aspects that in practice constitutes an impediment to the implementation of a strategy to achieve economic restructuring proposed in this paper.

The first consideration is addressed to the governments themselves, citing issues such as national security, sovereignty and similar concealed lust for power and misappropriation of fund operations and others, which enrich their own money and ego a group of staff officers.

Second is the fact that before such a strategy, how citizens react to the richest countries, whose income levels would be affected in the first place?. Certainly the initial reaction would be negative, but as is assumed in this paper the process of globalization is an objective process, ie a law of development, the process itself will demonstrate to those populations that integration is the solution to scale leading to global stability at all levels and preserve for future generations what has been achieved to date.

A third element to note is that the governments of most developing countries will not be prepared easily to the constitution of each block is a real integration, not assimilation by the nations largest economic power. This is the reason why the strategy is progressively bringing together blocks constitute the most deprived, that from a critical mass of compulsive be able to participate in the integration process.

The fourth aspect is the subject of Africa, possibly the most complicated by the existing political divisions inherited from colonialism, which does not respond to the demographic composition of the continent and is the main obstacle to the coherent development of the same and therefore their integration block.

Finally, there is one area: the Middle East, for inclusion in any of the proposed blocks, represents an unknown response to the current political instability and its petroleum-based economic performance and that the moment of its formation may have given a global rotation, considering the ecological impact of their use and strategies for using renewable energy sources.

V. Final Thoughts

Before concluding this paper, it is essential to note that an inviolable principle of this process is the criterion of integration and assimilation, as in this case cultural diversity would be lost by just one point among others, which is a social suicide, by imposing unique patterns (uniform) within the entire block to deny the very development of human diversity.

Nor is it idle to express at this time, which is not the sense nor can consider copying the solutions from the European Community to establish a strategy for this purpose, but, properly applied principles that ensure that each country maintains personality within the block.

VI. Conclusions

At the conclusion of this work may be noted that proposed a viable model in practice for the global currency realignment, which, without being free of complexities to materialize, if implemented, will contribute to the stability of the global economy and to decrease the impact of speculation on national economies, to be confronted them as a bloc and not independently as at present, while promoting progress improving the economies of those countries with fewer financial resourcing , natural or both.

VII. Bibliography

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Frickman Young, CE: “Natural Resources, Investment and Employment: A Macroeconomic Model”, Third Biennial Meeting of the International Society for Ecological Economics. Down to Earth, Abstracts, pp: 56, oct/94
Grossman, PZ: “Douglass North: why some nations manage to sustain development,” Economic Reform Today, # 3, pp :22-28, 1994
Mesa, J., Gonzalez. “Production and market of sugar”; http://www.monografias.com/trabajos10/azuc/azuc.shtml; feb/2002.
Mesa, J., Gonzalez, L.: ‘The evolution of the economic facts “; http://monografías.com/trabajos12/echo/echoshtml; ene/2003.
Mesa, J., Gonzalez, L.: “The agricultural industry of sugar cane in a framework of sustainable development” http://monografías.com/trabajos12/mnagraz/mnagraz.shtml; abr/2003.
Mesa, J.: “Characterization of the variation of the exchange rate,” http://monografías.com/trabajos14/balancedeco/balancedeco.shtml, ago/2003
Mesa, J.: “The Agribusiness cane sugar Sustainable Development Framework”, Master Thesis in Economics, University of Havana, jul/1997.
Pineiro, R., “More on dollarization: Latin America between the dollar and the wall ‘, El Economista de Cuba, pp: 7; sep-oct/2000.
Quah, DT:.: “The Economics of Knowledge”, UNESCO Courier, pp :18-20, dic/98.
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Saldivar, A.: “The crack of Mexico and the tequila effect,” Economic Time, information and analysis of economic conditions. Economic Research Institute, UNAM. may-jun/95, vol 79, pp: 27-30
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Corporate Finance Course, Latin American Association of Tourism Professionals and Entrepreneurs, Mexico City, jul/2001.
Granma, February 2002.

After the devaluation (legal) of the Argentine peso in early 2002, is frequent discussion in the monetary field, on whether or not to re anchor country’s monetary policy.

The ideas that prevail when talking about nominal anchor (or target’s hard) in general, point to a new currency. But proponents of this have (or do not explicitly) the economic model on which they rely to advise the system, and only refer to the inflationary bias problems that this system would eliminate. On the other hand, did not recommend who have no basis to make money.

Here is why attempts to outline how they interact with the Central Bank and the Treasury in a convertible economy, to see and compare the results of this monetary system against a discretionary regime, in pursuit of achieving a solid cash position with arguments to In proposing any of the two methods.

The development work is based on the macroeconomic fundamentals of the Mundell-Fleming model, which have been brilliantly adapted by two economists in Argentina: C. J. Rodriguez Ortiz (2001), in his paper: “New Perspectives on the Effects of Monetary and Fiscal Policy under a Fixed Exchange Rate.”

The development of this paper is as follows: First we review the relevant macroeconomic performance, then the model is developed, then compare the results of the different management of monetary policy using one function of social quadratic loss, and finally up to conclusions.

Macroeconomic Fundamentals:

Following Carlos Rodríguez and Javier Ortiz, the equations that make the balance between product market and the money are:

IS: Y (i, D), where Yi < 0, YD > 0.
LM: M = (1 / y) R = L (i, Y), Li < 0 Ly > 0 and y is the legal reserve ratio required by the center.
i = i * k (Deficit, reservations), where k is a risk premium such that K’D> 0 and K’R < 0.

• The single monetary policy variable under a strict currency board regime are bank reserves. A reduction of these causes an expansion in money supply. When i < i* los residentes locales presionan el mercado de divisas para obtener activos externos. La consiguiente disminución del nivel de reservas incrementa la prima de riesgo. Esto último genera un reequilibrio entre los mercados del producto y financiero con una mayor tasa de interés local y un menor nivel de ingreso.

Resultdos In contrast, the fiscal policy are ambiguous. An expansion of spending creates pressure on the internal rate, it attracts more capital, increasing reserve levels. But this mechanism applies to a certain degree of accumulated deficits. At this limit, a fiscal expansion has a strong effect on the risk premium causing the economy to contract due to the dominance of the side effect of the policy on domestic rates.

To summarize the effects on the amount of real balances with different policies:

· Tax policy: it generates capital inflows to some extent (shown in step Lm to Lm ‘last chart) which increases the amount of real balances. When the level of accumulated deficit is important, a new expansion contract spending activity level and the money supply (this is the movement of Lm ‘to Lm”)

· Lace reduction policy: it has a contractionary effect not only on the product level but in the money supply.
Elements of the model.

It is assumed the existence of a social loss function as follows:

V = (½) l (y – n – k) 2 (½) to (p – p *) 2

Where p * = inflation and optimal social = social value of inflation, and the rest of the symbols are those conventionally used Walsh (1998).

The inflation channel is specified as: p = v Dm where Dm = q (f, y, s) so that: q’f has indefinite sign indicating the effect on the change in the actual amount of money with a particular fiscal policy, q’y ³ 0 (where y is the socket which requires the central view of the deposits) and s represents shocks in international capital movements affecting the country.

Following Walsh assumes a supply function to the Lucas: y = n a (p – pe) e.
It is also assumed that: E (v) = E (e) = E (s) = 0, and the covariance between any of these three elements. Where neither s nor v are observable by choosing f * y *.

Making q (f,, y, s), a separable function [1] such that Dm = q1 (f) q2 (y) q3 (s), both the Treasury and the Central adjust their policy instruments to:

Close V = (½) l [a (q1 (f) q2 (y) - pe) e - k] 2 (½) a [q1 (f) q2 (y) - p *] 2

Then:

· V’f = l [a (q1 (f) q2 (y) - pe) e - k] aq’1 (f) [q1 (f) q2 (y) - p *] q’1 ( f) = 0

This condition is assured if: q’1 (f) = 0, which maximizes the Treasury capital inflows through tax policy, but also ends up causing all the inflation that is within your reach if p * = 0. Importantly, this could explain the huge fiscal deficit bias that existed in Argentina during the decade that ruled a currency board system.

· V’y = l [a (q1 (f) q2 (y) - pe) e - k] aq’2 (and) [q1 (f) q2 (y) - p *] q’2 ( y) = 0

As q’y ³ 0, Central ensures this condition by choosing a large enough reserve to q’2 (y) = 0 regardless of p *. This last point demonstrates the central intention to carry out a similar policy to that of “narrow banking.” In addition the policy also tends to maximize the inflow of capital and therefore generate higher inflation possible.

It is also clear that neither the central nor the treasury choose f * y * in terms of supply shocks (e). What is consistent with all rigid targeting, and implies an undesirable inflexibility in the design of economic policy.

With rational expectations: pe = E (Dm) = max (q1 (f) q2 (y)), since individuals are aware of the social loss function, how to choose f * y * and since neither individuals nor the state can prevent shocks to the movement of capital (s).

Because the agents perfectly predict inflation on average, it happens that there is an inflationary bias that has shifted in part to fiscal policy, based on the cash incentive is to maximize the inflow of capital. Without ignoring similar behavior is central to ‘carry out its policy of “strengthening” of the reserves and the financial system, which also generates an upward pressure on the price level.

In other words, the average inflation level is E (p) = q1 (f *) q2 (y *), as it coincides with the expectations, then on average there is no output gain. Making it clear that a nominal anchor of this kind is a safeguard for the problem of myopia in the appropriate choice of monetary policy and, now, attorney.

In comparing this policy against a nominal anchor of discretion where the central bank tries to minimize:

Vd = (½) l [y - n - k] 2 (½) a [p - p *] 2
subject to the conventional constraints: p = Dm v, y = n a (p – pe) e, reveals that:
(A) Dm * = p * (kla) / a – (ela) / (Ia2 a)
(B) pe = p * (kla) / a

In this way, the inflationary bias is given by: E (p) – p * = (kla) / a, which when compared to the nominal anchor policy are:

• A discretionary policy is socially less costly if:

/ P * (kla) / a – p * / < / max{q1(f) + q2(y)} – p*/ (c)

Since none of the two policies generate an average output gains.

To clarify these ideas are compared the expected values of loss functions in both cases:

E (Van) = (½) l E [a (q3 (s) v) e - k] 2 (½) E [q1 (f *) q2 (y *) q3 (s) v - p * ] 2

Since q1 (f *) q2 (y *) = pe. Developing the squares in each of the terms and assuming that p * = 0, we obtain:

E (Van) = (½) l (E [a (q3 (s) v) e] 2 K2) (½) to (E [q1 (f *) q2 (y *) q3 (s)] 2 S2E)

= (½) A2E (l [q3 (s) v] 2 S2E K2) (½) to (E [q3 (s)] 2 S2E [q1 (f *) q2 (y *)] 2)

= (½) l (a2 (s2q3 (s) s2v) S2E K2) (½) to (s2q3 (s) S2E [q1 (f *) q2 (y *)] 2)

E (Van) = (½) (s2q3 (s) (Ia2 a) s2v (Ia2 a) ls2e) (½) (LK2 a [q1 (f *) q2 (y *)] 2)

Before comparing this expression with the expected value of the loss function to a policy of discretion, it should be noted that in countries with developing financial markets and volatility with so
me institutional and Argentina, the value of s2q3 (s) (the variance in the shocks of international capital movements) tends to be very large, so that the value of E (Van) ends up being high. This is an indication of vulnerability of the nominal exchange rate anchor policy.

Working now with a loss function for a discretionary policy (for simplicity we again that p * = 0):

E (Vd) = (½) lE [a (v - (ela) / (Ia2 a)) e - k] 2 (½) aE [(kla) / a - (ela) / (Ia2 a) v ] 2

What comes to replace the values of Dm and those which arise eg by the optimization process (see equations (a) and (b)). Developing the squares:

=(½) L (E [a (v - (ela) / (Ia2 a)) e] 2 k2) (½) to (E [(kla) / a - (ela) / (Ia2 a)] 2 s2v)

= (½) lE [a2 (v - (ela) / a))] 2 – 2la2s2e / (Ia2 a) S2E k2) (½) a ([(kla) / a] 2

[(La) / Ia2 a)] 2s2e s2v)

= (½) l a2s2v S2E (([(la) / (Ia2 a)] 2-2la2 / (Ia2 a) 1 k2)) (½) a ([(kla) / a] 2

[(La) / (Ia2 a)] 2s2e s2v)

After running the previous algebraic expression:

E (Vd) = (½) LK2 (1 Ia2 / a) (½) ls2e ([La2 / (Ia2 a) 2 - 2la2 / (Ia2 a) 1]

As2e [La2 / (Ia2 a) 2] s2v [Ia2 a])

In comparing the two expected values reveals that: E (Vd) < E{Van}, si:

· A [q1 (f *) q2 (y *)] 2> l2K2a2 / a, ie if the square of the inflationary bias under a policy of nominal anchor is greater than the square of the bias generated by a policy of discretion when p * = 0 (see equations (a), (b) and inequality (c )).

· Ls2e> (ls2e [La2 / (Ia2 a) 2 - 2la2 / (Ia2 a) 1] as2e [La2 / (Ia2 a) 2]
Operating on this expression conveniently leads to the condition to be met is as follows: 2> (la) / (Ia2 a). That takes place when [a] tends to values close to or greater than one. That is when the impact of forecast errors in inflation generates a change in the level of output greater than the error of estimation.

· S2q3 (s) is a positive constant magnitude and sheds more evidence for the condition referred above. As already argued, it is known that volatility in emerging capital movement is very large, so this variance assumes a high value.

As a corollary to the above stated, is to highlight that if you have a policy of inflation targeting is further reduced inflationary bias. But at the same time you lose some flexibility in adjusting the supply shock in the design of monetary policy. Still, the final conclusion is that the inflation target in smaller social loss, and, at the same time more flexible exchange rate anchor.

Then we can think of a Pareto improvement in the passing of an exchange rate anchor to a policy of discretion or an inflation target, but between the latter two will remain a trade off between flexibility and bias.

[1] If this were not so, should be calculated response functions for the Central and the Treasury, when opting for f * y *. The fact that the function is separable in s is justified because neither the central nor the cash advance you can see it in choosing their policy tools.

Summary: The next paper entitled “The region of Cienfuegos: The agricultural sector” was developed as part of an investigation into the development line local Department of Economic Studies. Besides being part of a task from an internationally funded project by the NGO “HIBOS” from Holland called “system of knowledge and information for agricultural and rural development” of CETA “, Faculty of Agronomy of the University. The principal result of the work is the characterization of the agricultural sector based on information obtained through fieldwork.

Abstract:

The Following work titled The Agricultural Sector in Developed Cienfuegos is part of an investigation like inside the line of Local Development of the Department of Economic Studies. Beside Being part of a task of a project finance Internationally That it is denominated System of Knowledge and of information for the Agricultural and Rural Development of the CETA “

As the main result of this work the characterization of the agricultural sector starting from informations Obtained Through the field work.

Keywords: diagnosis of a sector, threats, strengths, weaknesses, agricultural sector.

Introduction

The diagnosis of a sector takes different forms in each area depending on the specific conditions of production specialization, natural resources, and existing human, the opening of the local economy to national and international markets.

The question to address is how to get more sectors are integrated into local economies, and how to make their products more competitive systems.

The solution is to restructure the economic system and adjust the business model, cultural and social development of each territory to the changing environment and competition according to their specific conditions.

The agricultural sector continues to consolidate in recent years as a key sector for economic development of our country, this sector is conceived as the main supplier of raw materials, because it represents the main link in the system of processing and food distribution, providing a considerable portion of wealth and employment generated within the regional productive system.

In these circumstances we must add the strong leadership and development are reaching many food manufacturing activities in the country as a whole, as is the case of production for tourism.

The idea to work is to achieve an adequate description and diagnosis of the agricultural sector in the region to have important information to use in mapping strategies for the development of the sector and region and to enhance future research on the incidence in regional development.

To do this we drew the following overall goal: To characterize the agricultural sector in the region of Cienfuegos by the evolution and composition of the various products of tubers and vegetables in the region.

In a first chapter gives an overview of the different theories of development, in the second chapter addresses the issue related to the trends and characteristics of the agricultural sector to international and national level describes the different models of agricultural development in Cuba.

In a third chapter sets out in detail is characterized and diagnosed the agricultural sector in the region, stating a strategic problem and the solution of the problem.

Methodology and materials used

Was used for the performance of work: interviews, group work, document review, and the use of the SWOT matrix to diagnose the sector in the region. We used the following data sources: Historical production from the Provincial Delegation of MINAGRI from 1994 to 2002, Cienfuegos Yearbook 2001, Yearbook of Cuba 2000.

Experimental part:

The province of Cienfuegos is located in southern and central China, between latitudes 21 º 21 ‘and 22 º 35′ north latitude and 80 º 20 ‘and 81 º 10′ west longitude. Bordered on the north by the municipalities of Santo Domingo Ranchuelo and Villa Clara province and the municipalities of Calimete and Arabs in the province of Matanzas. A portion of its territory in the east part of the Sierra del Escambray.

The highest elevation of the province is the Pico San Juan which is 1148 meters over sea level. To the east, with the municipality of Manicaragua Villa Clara province and the municipality Trinidad, Sancti Spiritus province.

In the South it borders the Caribbean Sea and the west by the municipalities and Zapata Swamp Calimete Matanzas.Surge province as a province to implement the new administrative political division in Cuba, in 1975, being made up of eight municipalities hereafter: 1-Passenger Aguada, 2 – Rhodes, 3 – Palmira, 4 – Lajas, 5 – Cruces, 6 – Cumanayagua, 7 – and 8 Cienfuegos – Abreus.

The region of Cienfuegos, in developing strategies was conceived with the concept of being an industrial center in the country, now is not the distinguishing feature of industrialization in the province, are already speaking of a service economy Cienfuegos, however that the services sector is gaining hold in the provincial industrial structure, characterization of the agricultural sector in the region is important for the scale that has the same not only in economic terms but social.

A very brief characterization of the municipalities of the province revealed the following:

Cienfuegos: It is the county seat, which are the main city and the bay of Cienfuegos, the municipality is located in south central province of Cienfuegos and the city is its capital.

Is bounded on the north by the municipalities and Palmira Rodas, the south by the Caribbean Sea, the west by the municipality of Abres and west by Cumanayagua. Natural enclave with an area of 88 square kilometers, has been instrumental in the location of the city and the industrial production takes place in the town [KC1].

Cienfuegos justly for its natural beauty and historical and architectural relics has been called the Pearl of the South. Equally often ranked as the city of the sea, for being located in a part of the shore of the bay of Jagua.

Since the triumph of the Revolution Cienfuegos has experienced a sustained industrial development.

The municipality has 96 263 inhabitants of working age, including 46 646 women (48.4%) covers only 8.15% of the territory of the province, is the most urbanized area of the province with a population of 154 897 inhabitants concentrated in four urban settlements and degree of urbanization of 95.9% which has a large impact the city of Cienfuegos, its population rose from 37.9% of the provincial total in 1987 to 40.96% in 2001 representing 31 647 inhabitants.

Has the highest population density in the territory, reaching 478.17 inhabitants per km ² in 2001 ..

Your dispersed rural population decreased during the study period of 2926-1069 people.

The employed population in 1987 accounted for 50.03% of the province and proportionally decreased to 41.4% in 2001, when it secured 60.6% of the Commercial Production of the territory, a 9.9% less than in 1987, which claimed 70.5%.

On average, this municipality has executed 77.3% of total gross investment of the period. It has 120 production sites and services, and the remaining 63 companies are budgeted units and economic entities. It has 80 stores and total offshore centers are 73 national subordination.

The industry is key to the development of the municipality. It is divided into three industrial zones in the area I dominated the branches food, non-electrical machinery, construction materials and the transport sector.

The fundamental characteristic of zone II is its port development and zone III is primarily related to chemical production.

Is an area that has severely affected their development in recent years.

In the urban and outside the city are other important industries for the municipality, for example, the cement factory. He had a farm and has a CPA.

Cumanayagua: Located in the mountainous pr
ovince in the southeastern part of the province of Cienfuegos. Occupies 26, 33% of the total geographical area, the largest in area and second in population, averaging 13, 11% of the total population in the period, which is distributed in nine urban and 37 rural. Its population density is 46.79 inhabitants per km ² in 2001.

Is the only municipality in the province in which the dispersed rural population increased from 6376 in 1987-6475 inhabitants in 2001. It has two sheep industry, a citrus fruit, coffee and a Combined Dairy Escambray, which is highly dependent on the results of livestock and raw materials imported.

The livestock development and citricola in the flat area and foothills, also brought a large social development in those regions where large communities emerge as Parra, Arimao, the Board, Breñas, “Camilo Cienfuegos”, equipped with a service infrastructure that greatly improved the living conditions of the population.

Palmyra-Lajas-Crossroads: The sugar industry is the main economic activity. Each had two sugar agro-industrial complex and a conformation quite similar in the services business.

Palmira. This municipality is located in central and west of the province.

Is the second smallest municipality in terms of land area and has a high population density, 104.77 inhabitants per km ². Its population settlement system consists of five urban and 25 rural and dispersed rural population decreased from 4725 to 3099 inhabitants in the period investigated.

The topography is mostly flat with natural conditions that allow a sugarcane agro-industrial development, is distinguished by the potential field of construction materials and mineral water production system incorporated into its two major companies in the period studied, and a Business Pig other producer of meat, which gives it a distinctive position in the volume of production and labor productivity.

He went from 2.57% of the provincial total volume of commercial production from 1987 to 8.38% in 2001, roughly similar to that of Cumanayagua.

Lajas is by far the least populated municipality in the province, accounting for 6.17% of the total population on average in the period.

It has 5 urban and 21 rural and dispersed rural population declined sharply from 5119 inhabitants in 1987-2129 in 2001. Its commercial production reached only 3.05% of the provincial total in 2001 and total investments averaged only 1.87% in the period.

Cruces is the municipality of less land area, occupying only 4, 73% of the territory and has the second largest in terms of population density, which rose to 166.67 inhabitants per km ² in 2001.

It has 4 urban and 19 rural and dispersed rural population decreased from 5658 inhabitants in 1987-3467 in 2001.

Las Cruces main economic activities include Agriculture and Industrial, with its most important centers of two sugar agro-industrial complexes “Bad Weather” and Martha Abreus.

Consists of its main production in cane sugar, raw sugar, and molasses, and other related industries and support such as hoppers and workshop PROCUBA

Rhodes-Aguada: Both are distinguished by agroazucarera and livestock production. They had two each and agro-industrial complex paths have sheep industry.

Passenger Aguada is the town farthest from the city of Cienfuegos and the closest to the capital.

It is the second municipality in the province by land area and the largest acreage.

Concentra 8.15% of the total population and average population is distributed in four towns with 26 029 inhabitants and 20 rural inhabitants 4954.

It is the fourth municipality favored by the investment process in the period studied.

In the main aspects of the economy is farming, industrial and livestock, is produced mainly sugar cane, raw sugar, molasses, yeast, alcoholic beverages, livestock and marble counting major sugar agro-industrial complexes and First Antonio Sánchez May along with the modern alcohol distillery which is the most fundamental production centers throughout the territory.

Abreus: The municipality is located south and west of the province. Bordered on the north by the municipalities of Aguada Passenger and Rhodes. They are two companies in various crops which play an important role in the food program territory, so that its main activity is agriculture.

It also has a farm and the trash “Damuji.

The main economic activities are agricultural and industrial. Here are located the major centers of production, and the Agroindustrial Complex Guillermo Moncada and several Crops Enterprise Horquita, Juraguá, citrus company and the paper Damuji.

The main productions of the municipality are: cane sugar, raw sugar, molasses, miscellaneous crops, citrus, sisal and paperboard for corrugated.

The province of Cienfuegos, can be seen that is making strides in the agricultural sector, given that the agricultural sector was devoted to a single product before the 90, s which is the sugar cane, but after the collapse of socialism and under the United States embargo on Cuba provoked the Cuban economic downturn resulting in a crisis

. Respect to developments in the agricultural sector, it was decided by the conversion of agriculture to organic management on a large scale this nationwide.

Is implemented organic production techniques in an almost national scale, so as to exploit the abilities of biological organisms that replace fertilizers and pesticides in their productive roles.

Cuba owns 11% of scientists and an appropriate research structure, allowing the mobilization of human resources for a knowledge-intensive technological innovation to replace the inputs are not available.

These advances now constitute the Achilles heel of the new Cuban agricultural model to address the economic crisis.

Although the province is making successful inroads, it should be noted that weather problems also affected the slowed a few years, this is the case of cyclones (Michael, Lily, others.)

That in recent years hit the country. can be seen great advances and great changes as the creation of UBPC, the use of techniques such as organic farms, houses and orchards intensive crops, which are helping the recovery of local and national agricultural sector compared to the decade of the 80, s.

The province now has a total of 183 Agricultural Market, 173 Agriculture (121 Collection, 52 that belong to other companies of Agriculture) and 10 of Commerce. With a current total of 521 organic farms across the province, 489 in home gardens and 71 intensive crops. And in Annex C can appreciate the production of tubers and vegetables by municipalities.

As shown in this annex has been increased production of tubers and vegetables in an acceptable manner, but we see that in most municipalities decreased production in 2001 it reflects the situation in the region at this time.

Also see the reflection of this decline in production as the historical series of production of the Provincial Delegation of MINAGRI that from 2000, 2001 shows a continued decline in production if the production of both sectors, public sector and non-state sector to a lesser extent, in some products which shows that it is still insufficient production of these products to ensure a stable supply in the markets.

Results and Discussion

Once characterized the agricultural sector in the province with respect to types of ownership and land use, as well as the assortment of production (Annex B, C, D, E, F) that is at work , we carry out the strategic diagnosis of the sector with a view to have an accurate picture of the position of the sector within the province, this knowledge will be important for defining future strategies.

Threats-external factors such as weather (cyclones, drought and other causes), pests and diseases, The time of year, it has been observed that in the months of April, May, September and October reduced the number of products in the market, because it changes the months
of spring and summer campaigns, little access to updated information.

Opportunities: There is the presence of the College of Agriculture and the CEA, University of Cienfuegos, count upon the presence of agricultural polytechnics in Cienfuegos, It has the presence in the province of industrial certification center in the province .

Weaknesses: There is a lack of control and monitoring of the production base, discouraging wage compensation, both as technical workers and leaders, insufficient attention to policy frameworks and women, short training at the base, few collaborative projects for income MLC, lack of use of the CTA (Technical Advisory Board) as a subsidiary body to the board, some organic farms are in bad situations, with weeds and poorly maintained, some organic farms do not benefit the whole area can be cultivated, There is a decrease sown areas, There is a low number of professionals and technicians, are motivation to work in the MINAGRI, Using computers to economics alone, without access to professionals, There is a discipline information.

Strengths: There are six companies in business development, There is a board created in each of the companies in the territory, There is a strong link with different agencies, institutions and mass organizations (CITMA ANIR, BTJ, ANAP, CDR , FMC, MINAZ, FISHING, MINAL, MINED AND MINFAR) There are links with various research institutions, ICA, INIVIT, INIFAT, Liliana Dimitrova, UNAH, CIMA, IISuelos, IIRiego, INISAV, IIAvicola, and IIPorcinas.

To diagnose sector SWOT matrix was applied to determine in which quadrant it is. From the results determined that the agricultural sector is in Quadrant 4 Survival.

Strategic Problems: Lack of preparation and training at the base as well as technological obsolescence does not allow the sector in the region to meet the needs of the consumer demand in the province.

Strategic Solution: If the power of good relations with research centers and exploits the full capacity of the companies are in business improvement could be reducing environmental threats, especially in scientific research to limit the influence pests and diseases and proper optimization of marketing processes which would enable the effects of seasonal crops, the industry can recover.

Conclusion

1.-The resulting information gained from the characterization of the agricultural sector in the region of Cienfuegos is important for future research in the industry and gives us the measure as far along the production thereof by the different interests of both the state sector as non-state.

You can see the evolution of the production sector, production is the starting point for the survival of the region and the rest of the sectors that use it.

2.-The changes from the 90s, as a consequence of the crisis after the collapse of the socialist, however this has managed to raise the same set of indicators, but not required rates for them.

For this it is necessary that this sector retargeting with trends in the world, the products actually the same is in decline, which predominates in the world are agricultural products with higher added value, and easy acquisition for the consumer.

3.-It is noteworthy that the region has achieved outstanding results in urban agriculture and this has played a key role in regard to fresh produce and fast to obtain, and self-sufficiency achieved from them, both in the municipality and the province
.
4 .- The more problems that impair their indicators, it is only by external factors that affect it, but also has a role that has to do with the subjective factor.

References:

Cuba.Ministerio of Agriculture. Historical Series Production / MINAGRI.-Cienfuegos: MINAGRI, 2002 .-
González, Benjamin. Cuban agriculture: A critical review. Economic and Development Review (Havana) V118 (12): 81, 1995
Ministry of agriculture. Technical Manual intensive organic gardens and orchards.
. The economic restructuring of the agricultural sector. Economics and Development Review (Havana) (1): 85, 1995
The evolution and transformation of agriculture in the nineties., 2003
The evolution and transformation of agriculture in the nineties ..
The Basic Units of Cooperative Production Farm and Cane between 1993 and 2000.

Libero Van Hemelryck. Evolution and changes in explanatory theories on regional development .- Chile South Corporation, 2002 .- 50p.

In the case of breach of the sponsorship, has served as a reference the work of Professor Juan VIDAL Portabales who makes a study of how to produce a breach of contract under the General Law on Advertising Spanish [Vidal, 1998: pp. 183-231].

1. GENERAL

In order to outline the framework in which they are framing the rules for non-compliance with obligations under the contract of sponsorship, it seems desirable to advance a brief reference to the general theory of breach of contract. When the doctrine concerning this issue, part of a broad concept of failure considering it as a synonym for any breach of legal duty imposed on the bound [1], in this line, BELTRAN DE HEREDIA and Onis [2] believes the extension should the maximum limits of non-compliance in order to include within it the various situations that may arise in the daily life of the bonds.

Now, this range does not stop, according to the prevailing doctrine, to clarify the various aspects that are included in the debtor’s default, in order, if necessary, to accommodate the breach of the sponsorship contract. Thus, following PUIG BRUTAU [3], can distinguish the following cases: 1st, one in which the debtor makes a provision that does not conform to the requirements of the bond required; in it, the debtor meets, but does poorly [ 4]. This course has received various names, and sometimes uses the term compliance “defective” in the past has spoken of compliance “irregular” or discharge “irrituale.” In all cases, these applications include cases in which compliance by the debtor-in not conform exactly to the agreed-detrimental to the service; two meetings, the situation in which the debtor does not comply with the provision to had been forced definitively, using in these cases the term of non stricto sensu [5], 3rd, and finally, the case in which the debtor does not meet the delivery on time, but may do so at a later time if the obligation does not preclude the exercise postponed, and without prejudice to the obligation to compensate the damage resulting from delay or default.

These three situations described above, called the doctrine ordinarily defective performance [6], definitively and compliance failure delinquent, are collected in our positive regulation [7]. Specifically, in the art. Cc 1321 [8] and the fortuitous event or force majeure referred to in the art. Cc 1315 [9].

The notion of intentional match “with the subject’s will to cause damage [10], which coincides with the art. Cc 1318 [11] on the failure of the obligation (to refer to the adverb “knowingly “).

The notion of guilt must be understood as “the relationship between harmful behavior and that required by the laws under the same circumstances, in order to avoid injury to the interests of others” [12]. From another perspective, the term guilt, “creating an unreasonable risk and assess whether the risk is justified or not, you will need to compare this with the social utility of the activity to which it relates, taking into account the cost of the removal of this: When the bigger social utility and the cost of removal, the greater is the risk unjustified “[13]. Must be distinguished: 1st, objective guilt, the guilt for violation of the laws. The fault is in re ipsa, ie the system determine the pattern of behavior and if the agent does not comply, he is responsible [14]; two meetings, the subjective guilt, is one that is based on “personal characteristics of agent [15]. From this it follows that the core of the concept of fault as are the attitudes of negligence and carelessness of the debtor [16]

The liability for breach of the obligations, generally differentiate various degrees of guilt, namely: 1st, gross negligence, is the non-use of care [17] which is characteristic of the absolute majority of men, ie , who has had such an action has not done that all men are commonly made. Art. Cc 1319 [18] defines inexcusable fault, which coincides with the concept of gross misconduct “to” gross negligence “, 2 ª, very slight fault is when not using proper diligence people exceptionally prudent and cautious. This assumption is not regulated in the Civil Code [19], but this degree of guilt has been heavily criticized for its dubious validity “in terms of logic and legal reality” [20], 3rd, and finally , has been called, in a happy expression as an “island of typicality” [21] in the sea of tort atypical. This means that, for a person responsible for an omission, there must be the norm before it forces them to act in a certain way.

And finally, regarding the failure of unforeseeable circumstances or force majeure shall take account of the arts. Cc 1315 and 1317 [22]. The most recent doctrine considers overcome the distinction between fortuitous event and force majeure [23]. These notions have the same characteristics, for special events must be unforeseeable and irresistible, the only difference from the source of the event, as noted above, under Article 1315 clearly flows Cc.

From what has been said about the causes of failure shows that when it depends on the will of the debtor, the debtor is subject to the consequences and the responsibility for that, and where the breach relates to circumstances beyond its control, does not generate responsibility for the debtor. This follows from the comparison between the art. 1321, which imposes the obligation to pay damages to that in the performance of their duties, incur fraud, fault or inexcusable negligence, and art. CC 1317 excludes liability to the debtor where the breach has been caused by accident or force majeure.

2. BREACH OF BENEFITS

2.1 The boundaries of the cancellation clauses

Here we make some clarifications, the failure of a certain obligation to perform may result in the resolution on the basis of a termination clause in the contract, provided that this lack of implementation has been determined to exercise the right to terminate the obligatory link that way.

In the sponsorship contract, the total events of default or inadequate performance which does not ensure an effective advertising return, provided by the parties to exercise the option subsequent, can not be entirely peaceful.

For example, in the case of a television program, the sponsor may agree that it reserves the right to terminate the relationship if tuning mandatory or “rating” has fallen significantly. To avoid any doubt about the popularity of the show, it is optimal that both parties nominate, together, the company would be responsible for conducting the survey or poll. But what if the sponsorship has been granted to a squadron sports, can be agreed resolution if, for example, that is relegated to a championship and hence “lower division”?. As is easy to see the tournament results can not be guaranteed either by computer or by the organization. But, although the sponsor is not a creditor of the usual sponsored activity, it can undertake to develop the work assigned to it with great effort, so if it has been agreed that the lower division will give rise to the sponsor to exercise the resolution, it seems that there would be any obstacle to the link terminated. Return advertising would not be the same if the squad has lost category, which would undermine the expectation of the sponsor.

If, however, the sponsorship agreement has been concluded with an athlete, is your poor performance or suspension, and even disease, may confer a right to recourse to the Resolution.

Do not forget that in any of the hypotheses, the meeting has been sponsored display or carry the name, brand, etc. the sponsor, so that the return advertising has been, until then, a reality. That is, the athlete has met for some time. On this particular example, VEGA [24] tells us that the poor performance, suspension or illness (not attributable) are not, per se, grounds for resolution, but, to discuss their possible inclusion in the contract as such, we confess that we find a strange pact. The suspensions, moreover, may be due to the vagaries of the activity itself, beyond every good intenti
on and any provision (even if the promised sponsored observe respectful behavior and proper regulation). The course of disease seems contrary to any provision in this regard. The low yield, in turn, depends on many complex factors that give a sure answer.

However, the parties are the ones who shape the plan sponsored by the performance based and are free to stipulate the terms they deem appropriate to their interests. However, none of them should be at odds with the basic principle of good faith.

A possible resolution may be grounds for triggering a public outcry by the sponsored. While no one can rule out that perhaps such an event the return would be more effective advertising and, therefore, increase the demand for products of the sponsor.

2.2 The repair of damages in case of failure

One of the most complex topics sponsorship contract must be presented when the damage caused by the failure of either party.

If the sponsor fails to provide funding or goods or clothing to sponsored and will have to analyze the significance of non-compliance.

The payment of damages appears to be more difficult, which is not necessarily true in the case of compensation for loss of profits.

The determination of the quantum for the missed profit must be based on the effects of the breach. If so does not affect the usual egregious public outreach activity sponsored (looking only reduce certain costs, but can be handled directly by him), compensation may be fixed on a schedule more affordable. But if it frustrates the realization of the activity, serious problems can be entity.

In fact, how to determine the gain for the sponsored frustrated?. The reference or consultation from the past can help with anything. Not possible, it would apply art. 1332 [25] Civil Code [26].

I think the same would happen if that is the sponsored who fails, because although we can determine the damages suffered by the sponsor, loss of profits is difficult to quantify. This is so because one can not know accurately what would have been concrete results in the increased demand for goods produced by the sponsor if it had complied with the “advertising payback.”

Given the difficulty in applying certain criteria, it is advisable to include penalty clauses to ensure the repair of damages, without discarding the covenant of further damage in the event that the sponsor will be possible to prove the quantum of damages have been sponsored by failure.

Now, this classic routine about the modes and causes of failure just discussed advises us to follow the pattern exposed on failure modes, distinguishing, in a timely manner, including defective performance and failure to comply delinquent final sponsored and the sponsor.

3. COMPLIANCE DEFECTIVE

3.1 From sponsored

In view DÍEZ-PICAZO [27], the cases of defective performance [28] can be summarized as follows: the situation where the debtor carries out acts of compliance and enforcement of the provision, but it deviates from the business lines referred to in establishing the obligation, and the case in which the debtor executed timely and accurately the principal service, but it fails to carry out the necessary ancillary to produce the first full effect to the achievement of aims pursued. Also called “special violation” to refer to cases in which the forced compliance, albeit poorly. This expression covers all alleged members of the different failure mode and ultimate default. So, specifically, refers to this author, on the one hand, alleged determinants of compliance “erosoniante” of the benefit, because with this type of performance was undermining the positive effects to the creditor, on the other, concerns alleged determinants of compliance “irregular” because the performance of the debtor goes through the normal channels agreed, thirdly, it refers to cases determining compliance with “defective” because the conduct of the debtor have been faults or defects to the creditor, and Finally, compliance refers to situations “irrituale” because there was no adjustment in the debtor’s acts or program with the rite path to become an obligation. All of these assumptions, then, constitute what is known under the name of defective performance.

Set forth the general lines of the concept of defective performance, we now turn to the effects it produces under civil law. It can be said that concerning synallagmatic obligations, such as from sponsorship contracts, the creditor has the claim for rectification of defective performance [29], without prejudice to any action to demand compensation for damages if the defects are attributable to the debtor.

In addition, the functional interdependence of these obligations is determined that the creditor can exercise what is known exception of defective performance, which takes place in the context of art. Cc 1426 [30], this exception is called “exceptio non rite adimpleti contractum” [31]. It should also be the possibility of an adjustment or reduction of the latter provision that suits the actual value of the service provided badly. And finally, it is possible in certain cases of defective performance, the possibility of claiming the resolution of obligational link.

Exposed general scheme applicable to defective performance, then we refer to specific legislation applicable to the sponsorship. Thus, if the medium-sponsored, for reasons attributable to it, fulfilled an order for alteration, defect or impairment of some of the items, you must re-run advertising, if the repetition is not possible, the advertiser-sponsor may require price reduction and compensation for damage caused.

Having regard to the applicable legal framework, we now refer, albeit briefly, to the reality to which it is addressed. And on it is true that situations of defective performance in the contract of sponsorship are as varied as those presented by the defective performance of obligations in general. Thus, in many cases, the defective performance stems from the fact that the sponsored meet the debt obligation, but not ancillary services. Imagine an individual sponsorship in which sponsored, in addition to its activity, must attend certain social events fulfilling this obligation only in some, in this case could even think of a case of partial failure because it may happen that in a complex relationship -such as sponsorship, in which there are several unique benefits and which have been performed and broken some others, all have, from the point of view, the same value [32].

On other occasions, however, is more difficult to detect defective performance situations. However, defective performance sponsored by the will, most of the time, in carrying out the activity that is required without the skill or diligence appropriate to the rules of the profession in question, consider, for example, Argentina Football Association selection in last World Cup in Korea-Japan 2002 was eliminated in first round (when under-normal parameters taken into account by the sponsor to hire him, “Selection” must “reach the final)

The obligation to develop sponsored activity is an obligation of means and, therefore, the sponsored can not guarantee the result. But there will be cases in which the meet sponsored badly for not meeting the minimum to be expected from their professional training.

In the sponsorship contract, although a large part of the obligations are sponsored result, there are also obligations of media, such as the obligation to develop sponsored activity and require the storage of the record.

Let’s see the requirement of accountability of the sponsored. Indeed, as noted by Beltran de Heredia and Onis [33], failure, and therefore also defective performance, as a structural component requires the existence of charges against any individual. However, the inadequate performance of the provision requires that the sponsor has no known faults or defects of the activity before receiving the benefit, so if the sponsor is aware that the sponsored activity will develop in a certain way and concret
e then seeks to challenge, then it can not rely on inadequate performance.

But, without doubt, the most significant is focused on the legal consequences of inadequate performance by the sponsored. As we have seen, is the obligation of the medium-run sponsored advertising in agreed terms. Are required to apply the legal consequence of the repetition of the obligation that is defective performance of “some” of the “elements.” Well, in the sponsorship contract will be very difficult to establish the boundary between the defective performance of any item that generates an obligation to repeat and defective performance by their agency frustrates the objective pursued by the sponsor.

On the other hand, if the repetition is not possible, the advertiser-sponsor may require a price reduction and compensation for damages caused. In many cases not fit doubt that repetition is not possible, consider, for example, sponsorship of activities to be held without fail on a fixed date, scenario in which no repetition can take place, or do not want to sponsor. For these cases, theoretically the sponsor may require a price reduction and compensation for damage caused. This course is a difficult fit sponsorship, given that the sponsorship means “help”, and it is difficult to speak of a reduction [34]. And second, because from a practical standpoint, the “help” would perceive the sponsored, as a rule, before performing the activity so that it can take place. So in any case we should speak of the obligation to repay the amount received.

The general principle of adjustment or reduction of benefits in case of defective performance and in this sense, it should be noted that the problem of defective execution are no easy solutions in the private law. So perhaps the complaint that could be the regime of defective performance in the Case of sponsorship, mainly the result of fuzzy configuration of this contract in their daily lives and the word “help”, a term that does nothing but further, as stated above, the general criteria that result from common law. In this sense, replace the word “help” by “consideration” [35]. In any case, we believe it should remain open to the sponsor for the possibility of requiring the return of the “help” (when possible) in cases of defective performance by the sponsored.

3.2 The sponsor

Continuing with the inadequate performance attributable to the environment, consider the case of default by the sponsor. The obligation to pay damages and the obligation to pay the price (the amount of “help”) is more consistent with the absolute non-compliance with the defective performance. Thus, we must seek an appropriate regime to the case, though, first of all, we must examine the circumstances in which we can speak of an incorrect or defective performance by the sponsor.

First it should be noted that the inadequate performance should be imputed to the sponsor. Thus, if the defective performance is produced by the intervention of another person, may not apply to sponsor the legal consequences of the actions of that third person. Imagine, in sports sponsorship, that the material supplied by the sponsor are in bad condition the team sponsored by the negligence of the carrier. The sponsor may, in this case, a defense for him to show that, for its part, has taken all necessary measures to prevent damage.

Obviously, defective performance admits of degrees. This makes it convenient to refer mainly to cases of defective performance characterized by their lightness. So one wonders what would happen if a sponsor delivered as inadequate supply of equipment to practice the activity (for example if it handed over a soccer team boots inappropriate to do so), or suitable material for the activity in question, but in poor condition, this behavior of sponsors, “would be a breach itself? It seems clear that, in this case, the foreign doctrine has defended sponsored by the possibility of claiming the right material, returning to sponsor the inappropriate material [36]. Still, it remains a very sensitive issue to fix the consequences of inadequate performance. We recall here the case of a Formula 1 driver who publicly blamed its poor performance to the material supplied by the sponsor.

This type of defective performance may occur frequently in the so-called technical sponsorship where the sponsor is committed to providing technical support to the sponsored material. In this case, the sponsor is subject to compensation for damages under Art. 1321 cc, the sponsor, in these situations, pay, usually the amount that the sponsored is obliged to pay for the repair of the supplied material.

In the light of these assumptions, what lies in situations of defective performance of the latter is the question of whether it is the readjustment of providing advertising [37], as set out in the case of defective performance by the sponsored. And here, the reduction and realignment of services presents difficulties similar to those seen when examining the defective performance of the sponsored. To include the provision of sponsored development of a series of publicity activities should perhaps distinguish two cases: first, that in which the sponsor complies poorly before delivery takes place advertising in this case we think it might be possible strict adjustment of the benefit, while the sponsored, in fact, advertising might reduce performance. For another, the case in which the sponsor support is provided after the delivery takes place advertising in this case, the adjustment may occur by way of financial compensation to sponsored.

In general, the problem of defective performance can be said that while it is possible, as stated above, that the creditor (either sponsored, is the sponsor) may encourage the debtor to complete the difference in the provision The main issue should normally focus on the monetary amount of the penalty compensation. At this point that the doctrine permits is integrated on two factors: first, a steady economic factor, equivalent to quantum missing defective performance, sufficient to establish proof of implementation of defective performance, and another, from an economic variable (properly, compensation for damages) represented by the impairments, loss or damage which the creditor has suffered as a consequence of defective performance, being necessary to prove this claim have been actually incurred by the creditor of the benefit.

3.3 Assessment

In the light of the above, is insufficient to accommodate the complex reality of sponsorship for breach defective. But it should be noted that the residual law also offers few solutions to the problem, as stated DÍEZ-PICAZO [38], if it is generally difficult to make a list of cases to be considered under the purview of the concept of defective performance, the more difficult specify the legal consequences of this situation. Civil law is overwhelmed by a motley reality that must be taken into account a number of general principles drawn from different precepts [39], for example, be taken into account, inter alia, ss. 1220 (under which is understood not paid a debt only when it has fully implemented) and 1221 (according to which the creditor can not be compelled to receive part of the supply under the obligation).

4. COMPLIANCE MOROSO

4.1 Introduction

The pay is identical with the blame for the delay performance of the obligation does not prevent its further realization [40], whether as a result of the delay no longer possible to fulfill the obligation, it will be before a total failure. In order to present the delay is necessary that the delay in compliance is attributable to the debtor and, at the same time, there is a possibility of compliance with the requirement [41]. The elements that are supported unanimously by the doctrine, are others that are discussed.

The undisputed requirements group belong the enforceability of the provision, the liquidity of debt and charging to the debtor for the delay in compliance. It is unanimously accepted the thesis that there is no default if the obligati
on is unenforceable for not having reached maturity, or nature (think of the natural obligations), or be subject to a condition [42]. Nor was there when the debt is illiquid (“in illiquidis non fit mora”) and, finally, is the default condition of the debtor’s guilt in the delay. As regards the proof of the absence of guilt, under the presumption of guilt of the art. 1329 of Cc [43] the same is payable by the debtor, that is, the creditor is sufficient to prove the existence of credit, and where appropriate, of the order, the debtor, in order to escape liability, must prove that the delay is not attributable.

Among the requirements of the delay discussed include the need of the positive character of the obligation and the interpellation of the creditor, specifically required in the art. Cc 1333 [44].

For the debtor’s delay, connect the blackberry with the idea of time in which the services met. Mora and delay are concepts that do not automatically coincide and therefore it is said that the delay is a delay qualified.

Among the requirements for the creation of the debtor in arrears are: (i) Duty to give or do, but it is conceivable that when a non facere must start from a certain point is reached late if it is not started the predicted behavior and failure if once started is violated, (ii) Intimation of the creditor, this declaration of will is not subject to shape. The declaration of will of the creditor must be directed precisely to the debtor or his legal representative, is, in short, recepticia, producing its effects since it becomes aware of those. To be issued after expiration. It is not required in cases of art. 1333, (iii) Enforceability of the obligation, (iv) The lack of compliance must be voluntary, and (v) It must be liquid or realizable. In any case, whatever the kind of obligation, the delay does not eliminate the obligation to fulfill.

Important effect of the delay is called perpetuatio obligationis. The debtor responds even the cause not imputable to produce the supervening impossibility, unless he proves that the cause not the fault would have affected the provision, although it had complied in a timely manner (art. 1336 Cc [45 ]).

The impact of the delay may disappear on its drain, which occurs when the creditor waives the rights to make use of the delay has been granted. Different case is the termination of the state of default, because in it the effects of such cessation occurs from the moment it happens.

5.III.IV.

Introduction

In the humanities and social sciences have been used profusely terms have been coined from the processing of natural sciences of physics and natural science par excellence. The economy has not been immune to this treatment, thus accounting as a scientific discipline in its efforts to economically acquire a degree of scientific rigor, has neatly used in the construction and reconstruction of conceptual structure of the elements that have allowed theoretical advance of natural science.

Thus, approaches the study of accounting theories have been used for development of Popper’s theories, and critical in its evolution or similarly addressed criteria referring to Thomas Samuel Kuhn, Imre Lakatos and Paul Feyerabend. Understanding the construction of these authors developed in ongoing dialogue, you can discover a common core problem but with logical solutions in the first, historical and sociological in the second, historical and logical in the third and methodological pluralism in the third.

Epistemology and accounting

If the study of accounting using proper tools of natural sciences, could be facing three elements that allow such transfer or not:

– The first accounting is not a science and hence are using language for different category of knowledge.
- The second that accounting is a science, but it would be classified in the social sciences in this regard would be using for a science itself an instrument of knowledge with diametrically opposite characteristics.
- A third option is that accounting is a social science, and allows the use of methodological instruments used by natural science, because the method is not characteristic of natural science, but of all sciences, which can be called a monism methodology.

To extend the evidence, we present some specific considerations regarding the terms. Karl Popper in his book “the logic of scientific research” originally published in Vienna in 1934. addresses the problem of demarcation and the problem of induction, these considerations and later the author can describe his theory as a “critical rationalism” [1]

Regards Popper “the man of science either theoretical or experimental, proposed statements and contrasts them step by step” [2], is radically opposed to the “inductive method”, defined as “inference that passes from singular statements, comments and experiments, to universal statements, hypotheses or theories, “this criticism is treated with elements that David Hume had already made known as the” problem of induction. “

Hume argues “even after noting that there is often a constant conjunction of objects, we have no reason to draw any inference about any subject that transcends those of us who have had experience,” why from this experience we form any conclusion beyond the cases that we have had experience ?”.

Kant attempt to solve the “problem of induction (Popper, 1982, p.29), through what he called the” principle of universal causation, “was” valid a priori “, but Popper concluded that” no succeeded in its attempt ingenious. ” The solution developed in the Kantian “critique of Pure Reason and Prolegomena to any future metaphysics.”

Popper is opposed to any type of induction, even the probability, which posits that theories (Lakatos, 1983, p.12) “may achieve some degree of certainty or probability,” he says “that the mathematical probability of all scientific theories and scientific or liability for any amount of evidence is zero. “

In the appendix “zero probability and the probability fine structure and content (Popper, 1982a, pp. 338-351), argues that develops” probabilistic theory of induction – or idea of an inductive probability is unsustainable .
Faced with the induction, Popper proposed “theory of the deductive method of contrasting” – a method that emerges result of a problem formulated as follows “I wanted to distinguish between science and pseudoscience, knowing full well that science often wrong and that the pseudo-science sometimes leads to the truth “[3].

The way of contrast is presented in four stages, (Popper, 1982, p. 32) “we can distinguish four procedures for carrying out of a theory: the logical comparison of the findings with each other … logical study … theory, comparison with other theories … and contrast by means of the empirical application of the conclusions to be drawn from it “

Under these criteria, the accountants have used leguaje Popper for the development of accounting theories, Professor Richard Mattessich has submitted a proposal for the General Accounting Theory as the universal framework of conceptual orientation of the various existing accounting systems, this General Theory, is validated from a Popperian test of falsification in the classical sense, while the interpretations of the General Theory have a teleological validation, ie utilitarian function. (What relevance is the application of this criterion?)

Professor Tua Pereda said “the basic assumptions of the general theory is eminently positive propositions, whose origin is the search for commonalities between different accounting systems in the presence and operating environment … the finding of a general theory of accounting must be invariably linked to specific propositions that govern particular accounting systems, using the Popperian criterion of falsification or verification negative [4]
Tua by appointment of Mattessich says “in actual practice can be characterized systems other than in the general theory, which obviously constitute a refutation potential. If these defective systems properly fulfill their purposes, would constitute a refutation of the theory, but if not, the only thing that is clear is their exclusion from the previous theory “…

Under this approach are evident consequences of the transfer of instruments of a science – the physical-to-accounting discipline, “when the latter has a very particular account of (Tua, 1983, 605)” the universal nature of nomological laws must be understood in relative terms in accounting, law, accounting or accounting best an assumption, is universal in both plays in all accounting systems, but as these mutable, universal law is subject to change. “

Let us evaluate the issue of demarcation, Popper also addressed in “The logic of scientific inquiry,” the problem of emaciation is to find a criterion by which to distinguish between empirical science and metaphysical systems, the problem of demarcation is essential, as Lakatos says “has serious ethical and political implications”

But what is to Popper science and what determines the scientific rigor of the theories, the criterion proposed by the author is the falsifiability of the systems, noting that theories are never empirically verified, however the scientific system is characterized by “should be possible to refute the experience a empirical scientific system.”

In order to implement the falsification must be a set of singular statements to serve as premises in inferences falsifying; The accounting José María Requena in his book “Epistemology of accounting as a scientific theory” in reference to the “singular statements” says “… we will obtain two non-empty subclasses: one that includes the set of statements that that excludes or prohibits theory and all those who are not in conflict with itself” [5]

The problem concerns the empirical basis of singular statements empirical character and its contrast, in the natural sciences, this issue has generated much discussion, finding only tentative answers, ie paradigms in Kuhn’s sense, in more sociological meaning the term. If there is no solution to this discussion only in so-called hard sciences, more emphasis will be presented multiple alternative solutions to the justification of the empirical basis in the social sciences, since, as Kuhn says, “I was amazed the number and extent of disagreements patents among social scientists about the nature of problems and accepted scientific methods “[6]

In accounting for the possibility
of apprehending their own concepts, through the language of epistemic-social science methodology is highly inappropriate. In the empirical data the reference to “sensory perception” as an alternative solution gives an output not conclusive because accountants do not try to determine “if this table is red or blue,” but trying to determine the “value” of the same . Concept of “value” that generates a dissimilarity of findings on the specific determination of the value of goods and / or service, with the techniques used and allowed within the accounting for its calculation, in addition to the egregious problem of guidance from the economy the adoption of the term “value”, if that accounting fails to have its own guidance.

For Popper the solution of the problem of empirical basis, not in the “sensory perception”-to no-accounts, or the infinite regress of justification of statements through statements or on the psychological, where statements are justified by statements and perceptual experience. In accounting approach this concept of rejection of the justifications not accepted by Popper, focused on building Mattessich of sharing the Goedel’s incompleteness theorem, by turn to infinity.

In this sense critical rationalism offers the features that should satisfy basic statements (Popper, 1982, p.96)

1. No one can deduct basic statement from a universal set of initial conditions unaccompanied.
2. A universal statement and a basic statement must be able to contradict one another.

A basic statement has the form of a singular existential statement such as “just a crow in the temporary space K region.” The item referred to the basic statement must be “observable”, ie intersubjectively testable by “observation.”

In Accounting formulation of the basic assumptions made by Mattessich in twenty assumptions, [7] are referred to empirical phenomena, in that sense they are contrasted with the reality, we understand that if there is an accounting system with characteristics different from those made in General Theory versatile and meets the objectives of the system successfully, is a system that serves as a falsifying statement. This approach emphasizes the objectives for which it was designed an accounting system, consideration is not compatible with Popper, where the “crucial fact” is an element of the nonempty set of falsifying statements, which are contrasted with empirical reality is not objectified “subjective intervention of the researcher and not a teleological validation criteria, such as the accounting system.

Tua in the section on Epistemology and Accounting Principles (Tua, 1983, pp. 637-634), “epistemology book presents some specific characteristics of the material derived from the same … we have to stress again the distinction between two possible levels of epistemology accounting: the cognitive and deontic aspects, “that is recognized for accounting Tua a positive and a teleological structure, recognizing the derivation of principles from the general theory as a teleological orientation and forgetting that the theory is generally constructed on the basis of common characteristics and universal accounting systems to justify their technical and methodological utility and not by reference to an existing reality in an aseptic manner, where the man is a mere observer as the positivity rate the knowledge itself .

The transfer of own tools sciences harsh, other types of knowledge, as was the case in the economy, and not accounting sciences makes a harsh, quite in contrast, rather than hinders their development allows the implementation of specific objectives, reason for their existence, even worse when they try to follow the path of neutrality of the natural sciences in its most abstract stage, completely abandoning demands that society should do and the knowledge they have clear and specific function responding to the problems that arise in daily and unique regional conditions and not on generalizations, was employed to science, for the deterministic, defenders of the absolute.

In the process of falsification must accept a basic statement, as a starting point, the defense of this agreement Intersubjective by scientists is not a logical response in the strict sense that Popper offers the problem to the problem of justification of statements , as he himself recognizes “a kind of dogmatism is innocuous.”

The preference of a theory due to the competitive position of existing ones, “that natural selection proves to be more apt to survive,” further states (Popper, 1982, 104) “the election is determined in part by utility considerations “, the latter approach would allow a rapprochement with the economic and accounting knowledge, where the reference to truth is displaced by the preference to the theories more useful.

If you share this conventionalist principle [8] instrumental assumptions of accounting, understood as macro-rules for action, follow a scientific method in its teleological validation criteria, in contrast the fulfillment of the objectives for which is applied, plus the inference follows a logical structure, in the derivation of lower-level statements, from a deductive logical route in the construction of accounting principles.

What Popper aim is to achieve a high degree of “objectivity”, the objective and subjective term used by that critical rationalist with a meaning very close to that used by Kant, but differs in terms of certainty that both handled differently, it is Kant believes that while the possibility of complete and verifiable science fully-inspired science-Newton, Popper is an advocate of provisional theoretical and negative verification tollendo use of Tollens: “the negation of the consequent is the negation of history “and concluded that” the objectivity of scientific statements lies in the fact that they can be compared intersubjectively. Coming to the conclusion that “the theoretical systems are contrasted statements by deducting from them a lower level.”

In this validation Mattessich summarizes the accounting proposals in three points (Tua, 1995, 350).

1. Tenders high degree of abstraction, for general accounting theory, are verified in relation to the full range of systems using the dual classification.

2. Proposals from the lowest level of abstraction, the latter specific hypothesis accounting system should be checked ensuring positive net income in relation to the objectives pursued and not less than the net profit of the best alternative not chosen.

3. Each proposed intermediate levels of abstraction must be consistent on the one hand, with the next higher proposition and the other with all the propositions derived below Dela same.

This Mattessich guidance regarding the accounting double validation (cognitive and teleological), is particular to the applied sciences.

It also warns Professor Romero [9] in the section “accounting theory is scientific,” “to be considered a scientific theory must satisfy certain minimum requirements before it is constituted as a systematization of laws or law formulas by which events can be predicted … this conception of theory is ruled out for accounting, first because it is formulated to factual science, studying the facts, and accounting is not concerned with facts. “

The proposed Durkheim-developed the idea of Auguste Comte, positivism applied to the analysis of social facts, is a potential response to Romero León, a proposal that includes: social understand that things come to reality only through men are a product of human reality and its study requires, as formulated by Bacon and Descartes, to dispense with all sorts of idols and preliminary notions, which gives us the common sense to address the social fact as a thing is totally unknown to us, is formulated as the rule of “ignorance methodical” and the necessary criteria for “systematically discard all preconceptions” [10] largely as a source taking account of Descartes.

Descartes made in this direction the first rule of method “was not the first to ever receive anything a
s true that I did not know clearly as such, that is careful to avoid precipitation and prevention, and not to include anything in my judgments but that which is submitted to my mind so clearly and so distinctly, not having any opportunity to dispute it “[11]

Formula Durkheim that “social facts should be treated as things,” “any object of science is one thing, except, perhaps, the mathematical objects [12], is in this sense that recognizes that his method has nothing is essentially a revolutionary and conservative, also states (Mardones, 1991, p.148) “social facts are things whose nature, yet flexible and malleable, however can not be changed at will.”

The treatment the authors as Mattessich, Cañibano, Tua Pereda, Requena and Montesinos, among others, have given accounts of science is also the methodology used agree-separated and / or jointly, of Popper, Kuhn, Lakatos , Laudan, Balzer, Bunge and Stegmüller as instrumental for study and validation, which requires identifying accounting theories, their assumptions and statements and criteria for matching.

Mauricio Nieto (Universidad de los Andes, Colombia) said on the movement of this type of approach, “the proposal from the traditional philosophy of science of logical positivism or the work of Karl Popper and formal criteria and a-historical were inappropriate to describe the development of scientific knowledge “and highlights the historicist orientation” science must be capable of a sociological study in the same way as any other knowledge or culture, “refers to Kuhn, Lakatos and Feyerabend. “Western science has traditionally been seen as benevolent, apolitical and neutral, and its extension as an unquestionable contribution to material progress and civility”, the prosecution can think if more appropriate to transfer knowledge is thoughtless or study and building our own scientific history, I refer to Latin America, “says Nieto also” Western science has also contributed to the stagnation of others, “” the introduction of Western science and technology can contribute to the dispossession of the native control their own resources, less power systematically.

Ends Nieto “history and philosophy of science, too often, has been a powerful tool for anyone interested in legitimizing this, who want to offer a future determined by” unbreakable historical forces “[13], but Nieto categorical “no reason to prevent us from thinking about things differently and we are not forced to embark on a career of scientific modernization and competitiveness of the game whose rules are determined by the interests of specific social groups.” This critical analysis of philosophy and history of science, could be applied almost verbatim to the current debate only tax economic model and developed in Colombia in the nineties and the implementation of International Accounting Standards from January 1 2005.

It is only the method that gives the category of science to knowledge when knowledge that not having the status of science more applicable analysis for social and human knowledge, and uses the methods and tools specific to the natural science, hard sciences, “not only fails to achieve its claimed scientific status, but may also be moving away from its true raison d’être, as for the social knowledge is the successful resolution of specific problems of society that can be achieved with an instrumental rigor, finalist and participatory, while the natural sciences have a status of neutrality, objectivity does not teleological.

With regard to the science says (Kant, 1985, p. 29), “if you want to represent knowledge as a science, must above all be able to determine exactly what differentiated, so it is not common to any other and is peculiarity … “This statement must be understood in the sense of necessary but not sufficient.

(Requena, 1981, p.157) meets this criterion accounting is empirical science, that with respect to an economic unit, we can at any time, qualitative and quantitative knowledge of economic reality in order Generic highlight the situation of the unit and its evolution over time “… (Requena, 1981, p.149)” Accounting has a material object common to the economy “economic reality”, but a formal object itself the qualitative and quantitative knowledge of this reality. “This concept is mentioned as an example of the concern for identifying the subject of study of accounting, but also must be understood as reducing the range, role and scope of accounting.

Was addressed to the study of accounting, a term that is transferred from the natural sciences, Popper addresses a problem that will light the relevance of use of that term, this analysis is discussed in his text “Objective Knowledge” , Chapter V “The object of science.”

Part of the statement that “science itself has no goals,” agrees that unemployment as a rational scientific activity has to have goals, and “the object of science is to give satisfactory explanations of everything that seems clear explanation “and” explanation is a set of statements by which describes the state of affairs to explain “and in this sense are preferred” theories that have an increasingly rich content, a degree of universality and increasingly high degree increasing precision. “

Popper develops the thesis of the existence of physical systems that are highly regular and biological and social systems that are highly irregular, messy-as opposed to the classic word-order and more or less unpredictable. Regular physical systems, orderly and similar behavior in time the clocks associated with prediction-clock-pendulum unpredictable systems, links with the clouds.

It does not indicate the analogy that some systems are more perfect and better than others, but shows two different natures, which require specific and unique conditions of the study, this assertion is contrary to the line proposed by Popper with regard to methodological monism ” falsificationism-methodology which makes no distinction between one system and another or between natural science and humanities.

(Popper, 1982, 195) “As a typical example of cloud exciting draw on a cloud or swarm of flies or mosquitoes. Individual mosquitoes as gas molecules, are all a swarm move in a strikingly irregular).

The accounting system would be classified within the analogy of the clouds at its scientific and clocks near the technical part. “The accounts, as science seeks knowledge of economic units is different from technical accounting, can say that this is what it thought to action. Science is beginning, the technical rules of application “

If science book is “subject to formal study” the economic reality in terms of their qualitative and quantitative characteristics, “it against an object dynamic, evolving and constantly moving, hardly predictable.

But the physical determinism, which makes “all clouds are clocks” indicate that the fact that we do not know the laws governing certain seemingly irregular movements, is only “an agreement of our ignorance” but we can one day able to determine these regularities.

In some accountants accepted accounting technique that has the performance of a pendulum clock, otherwise they could not make the equation A = CP assets, assets equal to liabilities plus equity, this is a consequence of the acceptance of a and a theory of value and valuation metrics, which are highly fallible and easy to empirical refutation. This shows that the linear operation and precise is the result of accommodating the reality of the theory, but there is no satisfactory explanation, comparing and contrasting of reality, which is the reason of science.

Like a cloud work in accounting interpretations or applications of the general theory accounting depend on the conditions of environments, the specific objectives of the systems which are installed and in good measure of the value judgments of who designs and implements the system in a clear interdisciplinary, as in line with respect to Popperian problems do not achieve a solution from a single discipline of knowledge but require the active inv
olvement of different fields of knowledge.

The American physicist Pierce made “all clocks are clouds” that is “only there are clouds,” which takes you to specify a knowledge-determinism, for Compton physical indeterminism “resolved not only physical, biological and without also philosophical. ” This influence is evident in physics at different times, for different authors assume position in philosophy that determinism or indeterminism, as shown by Kant in his work, under the dominance of classical Newtonian science, wrote to approach absolutist about science, ethics and aesthetics. – It must be noted that this absolutism is partial, as the noumenon, remains unknowable.

What is accounting?, A “social science”-meet some authors, and in this sense, ethics is a foundation for development and validation still the same and the definition of the structure that has to sustain their bases, even with the possibility of a parallel-matching auxiliary hypotheses in a scientific research program language, and a hypothesis Lakatos instrumental in the interpretation of a general theory of accounting by a teleological orientation.

In order to consider accounting as a science, it must determine their “statements” and / or “explanatory theory”, “observation statements” or “test statements” and “justification for the claim that a theory is true” because them (Popper, 1982b, p.19), tentatively resolves the problem of translating subjective terms in objective terms, the subjective or psychological terms were “belief” and “print”, “justification of a belief.”

The problem of demarcation between what is science and pseudo-scientific, includes the term “crucial experiment”, meaning the rigorous experiment or attempt to falsify a theory, through, of an act of falsifying a genuine test; a singular statement that is observable, leading to the falsification of the theory.

In accounting, this requirement must be set the number of accepted theories, (exclusive and inclusive, because in Kuhnian terms, Hendriksen, I speak of accounting as a discipline multiparadigmatic), like all of falsifying singular statements existing theories, rivals or monopolies.

How then to understand accounting?, Determinism of the physical, social or political, is another variable to consider, the economy can not be understood as a closed system, it is possible that there are no closed systems.

Summary

It is our goal to raise in this paper the impact that accounting has led to new trends from globalization processes. Proof of this accounting standardization contemplate today the opening of markets, multilateral treaties and even domestic legislation such as the National Development Plan approved by the Republic of Colombia for the period from 2003 to 2006 and that in this case is the element we use to focus on the development of our goal.

It is interesting to think about the evolution that has been public accounting for the current economic model, it is no longer the profession by applying a simple technique (as has been wrongly called accounting), was responsible for recording monetary resources at the state and private sector, on the contrary we can now confirm that public accounting has become the most important profession in the process of globalization to the point that some prefer to call it accounting professionals will find mainly supported by the science of accounts, which used a mathematical mechanisms allows us to quantify and project in a reasonable manner all the elements and facts presented in the environment, but when you can not materialize in a concrete number, accounting science gives us the tools of accounting, economics, sociology, among others, to make more dynamic understanding.

Moving on we can see that the policies of the National Government have effect throughout the accounting context, a product of his strength to tear up, that is its abrupt connotation in the current situation in the country because some of its objectives are suitable for social environment and others are not so much. In order to extend this concept a little evaluate how consistent is the implementation of this National Development Plan sovereignty as broken as ours and more specifically in accounting.

The objectives of the National Development Plan, are:

1. Democratic providing security, ensuring the viability of democracy and entrench the legitimacy of the state.

2. To promote sustained economic growth and job creation in an environment of macroeconomic and price stability, ensuring the sustainability of public debt and adequate access to the Colombian economy in the financial markets and goods and services.

3. Building social equity, improve income distribution and economic growth.

4. Increase transparency and efficiency of the state, through a redesign of the entities, substantive cross-cutting policies and progress in decentralization and effective lead to higher levels of territorial autonomy.

These goals also support elements such as:

• budget management indicators.
• Diagnosis of the economy and its key sectors and social groups.
• Projected financial resources available to the public investment plan.
• Investment programs.
• Environmental sustainability.
• Restriction on operating costs.
• Improve the use of public resources … … …

In this measure, and emphasizing the points previously established from an accounting view we can interpret the essence of Act 812 of 2003 (June 26):

1. Provide democratic security, we can classify accounting from two viewpoints: social and an economic one. On the economic front is to identify the accounting treatment to be given to expenditures of money made by the government to achieve this end, it is known that this item is of vital importance today to determine the national budget, where resources more effective charge are generated by external debt. In the social perspective the challenge is on how to register properly, the benefits of investment in the Colombian people. In either against the ways of standardizing accounting approach, a big question arises How to apply accounting regulation has been created in countries with high economic and social development and also do not present the same problems of internal security in countries like ours?

2. Promote sustainable economic growth and employment generation, accounting is the most the implications, since that handles a lot of variables of an economic and social as well as directly covers public and private sectors in the country. Now from the fact that the country should properly penetrate international markets, is forced to adjust our environment to the international economic structure and thus meet all the opinions issued by the multilateral banks and agencies like the UN, WTO, IASB and others.

This is how we found no correlation with what you want and what actually is being done, for example:

In the implementation of international accounting standards is breaking with the possibility of sustainable economic growth, as it would implement a model that was developed in another economic environment and that obviously would not be consistent with the characteristics of our environment without suffice it, implementation of this model is quite expensive in the private sector, as it would incur costs of adaptation, training among others, especially at times when the economy is slowing so, in the public sector in addition to incurring these deployment costs worryingly, they can not be guaranteed sustainability of public debt. If you barely get to survive we do to respond in a cost so high and extraordinary?

Another element to consider is the indiscriminate opening being proposed, which can destroy us economically and certainly goes against our accounting community and the progress in accounting may be present to respond genuinely environment.

Dr. Samuel Alberto Mantilla based on the text “Who stole my cheese”, she proposes, “… … When you move the cheese must move with it, without thinking too much … …”, we believe that the position is quite interesting and may be convincing to many, but we are a serious concern arises according to the analysis that we make today .- Professor Mantilla what we do when the cheese is moving into a trap … ..?

3. Building social equity in this objective are accounting and economic perspective. Economically discussed matters related to income distribution but the raw accounting rooted as it is through this to be known as such income is distributed, by advocating for a country of owners will be the accounts that actually determine the involvement of the same in the nation, this will be achieved through the presentation of financial statements and reports of social, besides the increase in the country’s participation in the stock market.

You should also consider the presentation and implementation of budgets and control systems of these policies. Here again and play the processes of globalization and standardization of accounts.

4. Increase transparency and efficiency of the state, this objective has implications for professional ethics in the Accounts as are those in charge of rooting out corruption and misappropriation of funds through the performance management and accounting. The reforms proposed that this objective can only be projected through a public financial accounting approach.

CONCLUSIONS

THE NATIONAL DEVELOPMENT PLAN, is good as long as it meets the needs and characteristics of the environment and given the same security in each row of the Colombian economy. From an accounting perspective the focus is on research, study, analysis and interpretation of accounting information to be not only one picture of the economic entity but must also display its projection in time. In this sense we can assess the social impact of the national development plan from the management of science-backed government accounting.

As you can see, even in the determination of domestic policies such as the National Development Plan found that the accounts have their highest influence in all fields and perspectives, economic, social, political, etc, and that is absolutely need to give today to the importance of accounting actually deserves, because as we indicated earlier in the process of globalization that are occurring today is accounting which will all altern
atives and to develop proper models and determinants for our society, so much so that many other disciplines, and will not be more than to serve the accounts to meet its mission.

BIBLIOGRAPHY

LEY NUMERO 812 DE2003 (d National Development Plan Colombia 2003-2006).

1. Introduction

In many real life situations, there are problems in which there is a relationship between two or more variables and we need to find the nature of this relationship.

This paper illustrates a real situation of the company estimates LTDA where revenues and costs have made over the past 18 months and discusses the relationship between them.

For this was done using the technique of regression and correlation, which is a very useful tool in analyzing the behavior of two or more related variables.

The aim is then set using a regression relationship between these data as well as some forecasts estimate that may give an idea about the behavior of revenues and costs in the coming months.

Objectives

General

Underscore the importance and usefulness of Regression and Correlation to model and investigate the relationship between two variables.

Specifics:

• Apply the technique of regression to the revenues, costs and profits earned by the company estimates LTDA in 2002 and the first six months of 2003.
• To build the mathematical model that best fits the data set collected.
• Forecast revenue and costs within six months according to the mathematical model obtained.

2. Theoretical Framework

The regression is a statistical technique used to simulate the relationship between two or more variables. Therefore can be used to build a model to predict the behavior of a given variable.

The regression is widely used to interpret real situations, but is commonly made in bad shape, making it necessary to make a proper selection of variables to construct the regression equations, and to take unrelated variables In practice, we will throw a meaningless model, that is illogical.

According to the dispersion of the data (point cloud) in the Cartesian plane, there may be one of the following relations, Linear, Logarithmic, Exponential, Quadratic, among others. The equations of each list are presented in the table below.

Table 1. Regression equations

REGRESSION

EQUATION

Linear

Y = A Bx

Logarithmic

Y = Bln (x)

Exponential

Y = Ae (Bx)

Quadratic

Y = A Bx CX2

However obtain the regression model is not sufficient to establish the regression, since it is necessary to assess how suitable is the regression model obtained. For this is done using the correlation coefficient R, which measures the degree of relationship between variables. The value of R varies between -1 and 1, but in practice it works with the absolute value of R, then R is as close to 1, the greater the degree of correlation between the data accordingly the correlation coefficient can be classified in several ways, as shown in Table 2.

Table 2. Classification of the degree of correlation.

CORRELATION

VALUE OR RANGE

Perfect

| R | = 1

Excellent

0.9 <= |R| < 1

Good

0.8 <= |R| < 0.9

Regular

0.5 <= |R| <0.8

Bad

| R | < 0.5

So the regression analysis is a statistical tool to analyze and predict or estimate future observations of two or more interrelated variables, that is a useful tool for planning.

After this surface treatment on regression, we continue with a case study related to the company estimates LTDA.

Here are the revenues and costs in million recorded monthly throughout the year 2002 and the first six months of 2003.

We chose to present this case as it is very handy when you apply the regression technique. Furthermore it allows to analyze how they have behaved revenues and costs of the company since 2002 and in turn predict the trend as thrown, as will the behavior of revenues and costs for the remainder of 2003 and based on their inferred or making decisions in the short term.

Distributions Bivariate

It is when a population study simultaneously the values of two statistical variables, the set of pairs of values for each individual is called a bivariate distribution.

Example 1:

The notes of 10 students in mathematics and language are given in the following table:

MATHEMATICS

2

4

5

5

6

6

7

7

8

9

Languages

2

2

5

6

5

7

5

8

7

10

The pairs of values ((2.2) (4.2) (5.5), …, (8.7), (9,10)), form the bivariate distribution.

Regression

The regression is a statistical technique used to simulate the relationship between two or more variables. Therefore can be used to build a model to predict the behavior of a given variable.

• Correlation

It is common for a single population studies on the values of two different statistical variables, to see if there is any relationship between them, ie whether changes in one affect the other values. If this happens we say that the variables are correlated or that there is no correlation between them.

Measuring the Correlation

The visual appreciation of the existence of correlation is not sufficient. We use a parameter called correlation coefficient, denoted by the letter r, which allows us to assess whether it is strong or weak, positive or negative.

The calculation is a mechanical task, which can be done with a calculator or a computer program. Our interest is in knowing how to interpret

Highlight one of its properties

1 < r < 1

Correlation and Linear Regression line

When you see a cloud of points we can see if the points are grouped near a curve. Here we will just see if the points are distributed around a straight line. If they do say that there is linear correlation. The line is called the regression line.

We will discuss strong linear correlation when the cloud look a lot like a line and will become weaker (or less strong) scattering when the cloud goes over the line.

In the graph we observe that in our example the correlation is quite strong, as we have drawn the line is close to the points of the cloud.

When the line is increasing the correlation is positive or direct: to increase a variable, the other has also tended to increase, as in the example above. When the line is decreasing, the correlation is negative or inverse: increasing one variable, the other tends to decrease.

Example 2:

A person is trained to obtain a driving license repeating a test of 50 questions. The chart describes the number of errors that relate to attempts.

Note that there is a strong correlation (the points are “almost” aligned) and negative (the line is low).

Scatterplot

The first way of describing a bivariate distribution is to represent the pairs of values in the Cartesian plane. The graph obtained is called the cloud of points or scatter diagram.

A scatter diagram is a graphical representation of the relationship between two variables, widely used in the stages of verification of theories and identification of root causes and solutions design and maintenance of the results. Three concepts are particularly remarkable that the discovery of the true cause-effect relationships is the key to the effective resolution of a problem, the cause-effect relationships often show variations, which is easier to see the relationship in a diagram dispersion in a simple table of numbers

Trendline

The trend line is the most important basic tool which has the technical analyst.

Is a line or set of lines that are plotted in the graph joining with a same slope successive series of troughs (trendline) or peaks (trendline).

Is used to first determine market direction and define its goals of projection.

Make the levels of support or resistance that are projecting prices.

Lets look at each moment the level of benefit / risk you can take when you start or close a position, with reference to the current price trend l
ine respect and prestige.

The breaking of a trend line upwards or downwards is a signal that confirms a change in price direction.

Are the basis for drawing the channels that cover the possible price movement.

According to the dispersion of the data (point cloud) in the Cartesian plane, there may be one of the following relations, Linear, Logarithmic, Exponential, Quadratic, among others.

Mathematical Model

Also called curve fitting equation is given in a graph, depending on the degree of correlation that best fit the data set.

-Linear fit: Y = BX A
-SET LOG: Ln Y = B X A
EXPONENTIAL-FIT: Y = AC BX
-SET PARABOLIC, quadratic or polynomial: Y = AX2 BX A

Dear

Is an approximate evaluation based on data from previous periods (historical or statistical data) by sampling.

Forecasts

Is to estimate a value of y given or assumed a value of x. You can also say that it is predicting the future.

Enunciates the steps to adjust a data set and create a set mathematical modeling

Have a set of data tabulated Xi, Yi are variables whose relation

“Utilities Cost Vs
-Cost vs. Quantity Produced
Utilities Vs-Month
“Cost Vs Weeks
-Income Vs Year

To graph the data Xi, Yi (scatter plot or point cloud). This allows to see the trend line.

Built the mathematical model that best fits taking into account the degree of correlation.

• Pefect [r] = 1
• Excellent 0.9 <=[r]<=1
• Regular 0.5 <=[r]<0.8
• Poor [r] <0.5

Time Series

A series is a set of observations (ordered in terms of time). Examples of such issues would be time series of daily rainfall records, weekly sales, quarterly gross domestic product, temperature measurements.

The purpose of analyzing such data is to determine whether there are certain patterns or non-random patterns.

Some times it is to find non-random patterns that can be used to predict the future.

In other constraints, the objective is to ensure that no non-random patterns. In these cases, these patterns are considered a sign that a system or process is “out of control.”

The following discussion relates to the intrinsic analysis, which focuses on historical data of the study variable. Cabria intrinsic noted that the analysis is widely used in business and industry. The avowed objective of the analysis is to describe more intrinsic to explain the historical patterns of data (ie, identify different patterns). In addition, the case in which the analysis is based intrinsic stable causal system there is a constant related to time, which influences the data. In other words, historical data are supposed to reflect the influence of all factors uniformly through time. For example, a study of sales in a period of 14 years may reveal that sales have grown consistently at a rate of almost 10% annually. Based on this performs a projection of future sales, assuming that whatever the forces that have given rise to this pattern, continue to the future.

Index Numbers

An index number measures how much a variable has changed over time.

It measures the relative variation between economic variables: Changes in prices, wages, income, etc.
Are calculated for two periods of a time series or for all periods of a time series over a fixed period called the base period.

How important are these themes for any science.

The statistics is of great importance in different businesses, focused from any professional area by helping to ensure proper planning and control supported by studies of forecasts, budgets and so on.

• motivate senior management to define the basic objectives of the company.
• To ensure that an appropriate structure is defined, determining the responsibility and authority of each of the parts of the organization.
• Increase the participation of different levels of the organization, when there is proper motivation.
• obligated to maintain a verifiable historical data file.
• Facilitate the administration the optimal use of different inputs.
• Facilitate the sharing and integration of the different areas of the company.
• obligated to conduct a periodic self-analysis.
• Facilitate administrative control.
• They are a constant challenge that is presented to executives of an organization to exercise their creativity and professional approach to improving the company.
• Help to achieve greater effectiveness and efficiency in operations.

That important to you as an accountant (a) the making of predictions.

• To prevent changes in the environment, so in anticipation of them is easier adaptation of organizations.
• To integrate the goals and decisions of the organization.
• Over the forecast can be anticipated losses on the results of future financial statements, and so decisions can be made either by reducing costs and expenses, plan strategies to help the improvement of the company, and compliance with the objective of any company is profit.
• Based on analysis of inventory turnover may decide to increase or recall a product.

In which areas of their expertise is useful to apply this knowledge.

-Economy
-Administration
“Psychology and other related areas (social sciences and sciences)
Etc-Medicine. We think that these statistical issues are essential in any area as situations occur daily involving two variables and this knowledge is important for decision making.

3. Analysis Results

Making a brief analysis of the company estimates LTDA. We observe little or no commercial stability, which took a lot of variability in each of the months, we can conclude that the company had received by customers, if we look at monthly income was increasing, profits were sinembargo increasingly diminishing due to mismanagement given by the heads of production where they spent more than it actually sold. This, in turn, shows that in a situation like the one presented in the period of 2002 and the first six months of 2003, is harder to achieve a balance, ie the investment effort is greater for offset what is left of winning at the margin.

As shown in the table of fixed base index numbers (# page) in the month of June 2003 is too much of the mismanagement by the company because we have a variation in the cost of 250%, a variation in income of 125% and a variation of the profits from a deficit of 125% which does not make sense in the development of an undertaking, where the overall business objective is to obtain profitability.

In the table of index numbers in mobile base, we note that the percentage change in costs and revenues on the fixed base table are diminishing as time progresses, while the percentage change in earnings in the two tables were very different, the mobile base earnings were highly variable between profit and loss, in contrast to the fixed base is always present in growing deficit as they progressed.

4. Conclusions

It is important that the company estimates LTDA. Make a budget planning in order to investigate the behavior of different markets, which have direct impact on the product, as do the input requirements plan which is to identify the requirements of the different resources involved in the production process so that we can tackle the market plan.

Implementing the financial plan is intended to decide how they will solve the problem of liquidity and financing of the company, once it has forecast revenue and expenditure plan from the input requirements.

With a good degree of correlation, we can easily make estimates about how it will lead to a variable of interest (in our case, revenues, costs and profits of the company estimates monthly LTDA.) Over time.

ESTIMATING revenues LTDA. since January 2002, show a growing trend and even mathematical model was fitted polynomial with a good correlation, R = 0.9627, showing a good relationship between the data used. >

It is noted that ESTIMATING LTDA. is a company with a very bad administration, because costs were higher than revenues although these were more or less the same level significantly affect earnings negatively, for this reason it is necessary to maintain standard costs in the company updated in order to facilitate the preparation of budget requests of raw materials, labor and manufacturing overhead costs, and that otherwise, would be determined in a very imprecise.

The best strategy for the above from happening is to take practical measures to reduce costs, which generate higher margin and allow the company to improve its competitive position.

5. Bibliography

· Douglas C. Montgomery, George C. Runge, Applied Probability and Statistics for Engineering, Ed McGraw Hill, 1996, Chapter 9.
· AULAFACIL.COM, Course Statistics, Chapters 12 and 13, 2003.
· Accounting Administrative, David Noel Ramírez Padilla

6. Appendix: Calculations:

Earnings improved taking into account the increased revenue