Media and Good Governance

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Media and Good GovernanceTapanath Shu kla, Nepal

The important role media plays in fostering an environment of good governance needs hardly be emphasized. As the

watchdog and interpreter of public issues and events, the media has a special role in every society. In our

information-based society the media has a disproportionately visible and influential role.

Democracy cannot exist in the absence of a free press. This is because democracy is based on popular will and

popular opinion depends on the publicsawareness and knowledge. It is the mass media that brings up, promotes

and propagates public awareness.

The main responsibility of the press is to provide comprehensive, analytical and factual news and opinion to the

people on everyday issues and events of popular concern. To fulfill its duty and responsibility, the press must work

according to the fundamental principles of professional ethics, as well as norms and values of journalism.

1. Press freedom

Democracy can neither be sustainable nor strong without a free press. On the other hand, press freedom will not be

possible without democracy. Therefore, the mass media and journalists must be committed to democracy. For this,

the press must be perpetually involved in the establishment and promotion of a democratic culture.

2. Right to information and freedom of expression

The press must remain ever vigilant to protect and enforce peoples freedom of thought and expression and citizens

right to all information relating to the various aspects of their life and future.

The fact that access to information is a citizens right must be taken to heart, and information must be presented in a

simple and palatable manner. Right to information is inherent in democratic functioning and a pre-condition for goodgovernance and the realization of all other human rights, including education and health care. The main objectives

should be the promotion of transparency and accountability in governance so as to minimize corruption and

inefficiency in public office and to ensure the publics participation in governance and decision making.

3. Accuracy and objectivity

Media must be credible and trustworthy. Trust is the most valuable asset for any media. Once lost, it cannot be

earned back. It is for this reason that all media must uphold their principles to provide accurate and factual news and

other programmes.

4. Impartiality and diversity of opinion

It is not enough that news presented by the media is factual. It must also be impartial, covering a diversity of opinions.

Both sides of the argument must get due consideration. Voices and opinions of all the groups, ethnicities, languages,

political and religious beliefs within the society must be included.

5. Fairness


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Broadcasters must not harbour any prejudices for or against any individual that is mentioned in the news item.

Hidden recording can be carried out without permission only if there is adequate basis in the public interest to do so.

6. Violence, crime and anti-social behaviour

Broadcast organizations must protect the society from crime, criminals and criminal activities. Any material that

promotes violence and ethnic, religious, linguistic and other kinds of hatred must not be broadcast. Programmes that

glorify violence and crime, or turning criminals into heroes, must not be allowed. However, programmes that clearly

spell out the consequences of violence and provide moral education should be encouraged.

News and other programmes that promote ethnic, religious, regional and cultural goodwill in the society should also

be encouraged.

7. Protection of the underprivileged

Issues, opinions and expressions regarding women, minority communities, neglected groups, elderly people, disabled

and backward classes must be given the opportunity to be aired.

To guarantee the rights and interests of the marginalized and underprivileged communities, content should be rights-

oriented.

8. Political impartiality

Broadcasters must understand the difference between politics in general and party politics. Media should not be a

vehicle, or used as an advocate for any political party or ideology.

Public and political issues should be clearly understood, analyzed and presented in an impartial manner.

9. Elections

During elections / political campaigns, equal time slots or opportunity must be allocated to each of the legitimate

political parties and candidates.

In the course of elections, messages that encourage goodwill and harmony among all the ethnic groups, religions,

genders, cultures, languages, regions and communities should be broadcast.

Media plays the role of watch-dog in reporting corruption, complacency and negligence. In a changing, competitive

landscape, compliance to good governance has never been taken so seriously, as people demand more

transparency from both the government and private sectors. Responsible practices from government, universal

principles on human rights and the fight against corruption have assumed great importance.

A flourishing media sector enables people to make informed decisions, becoming more effective participants in

societys development.

In a developing country like Nepal, the relatively low level of literacy, the variations in topography and limited access

to electricity all make radio the most suitable medium to satisfy the information needs of the masses.


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A robust, independent and pluralistic media environment is crucial for good governance and the overall development

of the country.

Freedom of expression, free flow of information and fair reporting without government and commercial influences are

accelerators of development.

The rapid growth of private independent radio and TV broadcasters and the changing role of the state boracasters

are creating a more congenial atmosphere for the effective functioning of the media as a major player in good

governance.

Nepal has gone through phases of armed conflict, struggle for democracy, abolition of the monarchy and the

tumultuous events leading to the declaration of a Federal Democratic Republic, and the media has been a vital player

at every juncture.

The issue of good governance assumes the highest priority in an atmosphere of chaos, instability, insecurity and lack

of accountability. These are also characteristics of the absence of a legitimate, democratically elected government.

During times of political upheaval when attempts were made to stifle press freedom, the media has stood up and

played the role of watch-dog and ombudsman, upholding public interest above everything else.

Let us now examine the relationship between media and good governance

1. Transparency

Radio can play an active role in promoting transparency in governance. By reporting on issues with adequate

research and objectivity, radio ensures that citizens are well informed and that their right to information is protected.

2. Participation

The issue of inclusiveness has featured in many debates and discussions. One of the causes of the Maoist

insurgency was inadequate representation of the marginalized groups in the decision making process. Radio can

ensure the greater participation of marginalized groups, ethic communities, language minorities and the

underprivileged. Nepal has witnessed the greater participation of such groups through a process of empowerment

brought about by responsible media.

3. Accountability

Media also ensures accountability through adherence to generally accepted standards. While giving a voice to the

voiceless, the media has also played its role in holding those in power accountable for their actions.

4. Stability

Radio serves as a unifying force by providing a forum for informed debates in times of political conflict. Informed and

responsible citizens contribute to the stability of the country.

5. Fairness


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The essential quality of the press is to be fair and just. Radio in Nepal has always attempted to be fair in reporting

events during times of upheaval and political uncertainty.

6. Human rights

Respect for human rights is the hallmark of every democracy. In a country like Nepal, there have been instances of

violation of human rights by opposing sides in a conflict. Radio has been quick to report on human rights violations on

numerous occasions. Ensuring human rights leads to good governance. Radio is the most effective tool to draw the

attention of the concerned authorities as well as the international community to human rights issues.

All the above contribute to ensuring effective government, and radio lies at the heart of good governance.

Observance of the requirements for neutrality, upholding balance and impartiality, educating the public on

governance issues and exposing malpractices should be the guiding principles for radio broadcasters.

There have been times when the media in Nepal resorted to sensationalism in reporting crime and criminal activities.

Reporting ethnic or religious riots must be undertaken with caution, always keeping ethical values in mind. It is the

duty of the media to be balanced and also to ensure that the consequences of the reporting do not disturb law and

order or ferment unrest. Desperate attempts by competing media to win audiences through sensational reporting

should not be encouraged.

In conclusion, I wish to stress the need for radio to evolve in order to fulfill its function to ensure good governance.

Radio must promote and help enforce human rights more assertively. It must strive to maintain its role as a public

watchdog. The media should neither doctor facts nor resort to reporting along partisan lines. It cannot be expected to

report anything but the truth. It is precisely this role -- and the responsibility that comes with it -- which radio needs to

assume. It is a development which the government needs to accept, and further facilitate.

"Bitchin' Summer"

Oh oh oh oh

Oh oh oh oh

[Verse 1]

Everyone is waitin' on the bell

Couple seconds, we'll be raisin' hell.The sun is shinin' down, school is finally out.

Nothin' matters, so we might as well.

[Pre-chorus]

Everybody's bakin' in the sun,Come and party, do it while we're young.

Move your body, when you hear the drum.SO PUT YOUR HANDS UP!

[Chorus]

It's gonna be a bitchin' summer,

We'll be livin' fast, kickin' ass togetherLike high school lovebirds


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Gonna have a blast make it last forever

I'll pick you up at the liquor store

Hurry up, we can fit one more.It's now or never

It's gonna gonna be, be a bitchin' summer.Bitchin' summer

Bitchin' summer

[Verse 2]Throwin' empty bottles in the fire

Whiskey's got us singin' like a choir

We're all gonna run, when the police come.But in the mornin' we're so alive.

[Pre-chorus]Everybody's bakin' in the sun,

Come and party, do it while we're young.

Move your body, when you hear the drum.

SO PUT YOUR HANDS UP!

[Chorus]

It's gonna be a bitchin' summer,We'll be livin' fast, kickin' ass together

Like high school lovebirds


I'll pick you up at the liquor storeHurry up, we can fit one more.

It's now or never

It's gonna gonna be be a bitchin' summer.Bitchin' summerBitchin' summer

[Bridge - rap]Right-right-right near the beach

Te party don't stop

If we don't get harassed by the motherfuckin' copsQuarter tank of gasAbout a half a pack

My cell phone's dyin' but there's no turnin' back

I can feel the breezeSteerin' with my knee

Drummin' on the dashboard

Bumpin' to the beatHit the windshield wiper

Searchin' for my lighterI gotta get right before this all nighter

[Chorus]

It's gonna be a bitchin' summer,

We'll be livin' fast, kickin' ass togetherLike high school lovebirds


I'll pick you up at the liquor store


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Hurry up, we can fit one more.

It's now or never

It's gonna gonna be be a bitchin' summer.Bitchin' summer

Bitchin' summer

Pick you up at the liquor storeHurry up, we can fit one more.

It's now or neverIt's gonna gonna be be a bitchin' summer.

John Maynard KeynesFrom Wikipedia, the free encyclopedia

"Keynes" redirects here. For other uses, seeKeynes (disambiguation).

John Maynard Keynes

Keynesian economics

Keynes on 8 March 1946.

Born 5 June 1883

Cambridge,Cambridgeshire,

England, United Kingdom

Died 21 April 1946 (aged 62)

Tilton, nearFirle,East Sussex,
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England, United Kingdom

FieldPolitical economy

Probability

Alma mater King's College, Cambridge

Eton College

Opposed Marx

Hayek

Marshall

Pigou

Contributions Macroeconomics

Keynesian economics

Liquidity preference

Spending multiplier

ADAS model

John Maynard Keynes, 1st Baron Keynes,[1]CB,FBA(/kenz/KAYNZ;5 June 188321 April 1946) was a

Britisheconomistwhose ideas have fundamentally affected the theory and practice of

modernmacroeconomics,and informed the economic policies of governments. He built on and greatly refined

earlier work on the causes ofbusiness cycles,and is widely considered to be one of the founders of modern

macroeconomics and the most influential economist of the 20th century.[2][3][4][5]

His ideas are the basis fortheschool of thoughtknown asKeynesian economics,and its various offshoots.

In the 1930s, Keynes spearheadeda revolution in economic thinking,overturning the older ideas

ofneoclassical economicsthat held thatfree marketswould, in the short to medium term, automatically provide

full employment, as long as workers were flexible in their wage demands. Keynes instead argued

thataggregate demanddetermined the overall level of economic activity, and that inadequate aggregate

demand could lead to prolonged periods of highunemployment.According to Keynesian economics, state

intervention was necessary to moderate "boom and bust" cycles of economic activity.[6]He advocated the use

offiscalandmonetarymeasures to mitigate the adverse effects of economicrecessionsanddepressions.Following the outbreak ofWorld War II,Keynes's ideas concerning economic policy were adopted by leading

Western economies. In 1942, Keynes was awarded ahereditary peerageas Baron Keynes of Tilton in the

County of Sussex.[7]Keynes died in 1946, but during the 1950s and 1960s the success of Keynesian

economics resulted in almost all capitalist governments adopting its policy recommendations.
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Keynes's influence waned in the 1970s, partly as a result of problems that began to afflict theAnglo-

Americaneconomies from the start of the decade, and partly because of critiques fromMilton Friedmanand

other economists who were pessimistic about the ability of governments to regulate the business cycle with

fiscal policy.[8]However, the advent of the globalfinancial crisis of 200708caused aresurgence in Keynesian

thought.Keynesian economics provided the theoretical underpinning for economic policies undertaken in

response to the crisis by PresidentGeorge W. Bushof the United States, Prime MinisterGordon Brownof the

United Kingdom, and other heads of governments.[9]

In 1999, Timemagazine included Keynes in their list of the100 most important and influential people of the

20th century,commenting that: "His radical idea that governments should spend money they don't have may

have saved capitalism."[10]He has been described byThe Economistas "Britains most famous 20th-century

economist."[11]In addition to being an economist, Keynes was also a civil servant, a director of theBank of

England,a part of theBloomsbury Groupof intellectuals,[12]a patron of the arts and an art collector, a director

of theBritish Eugenics Society,an advisor to several charitable trusts, a successful private investor, a writer, a

philosopher, and a farmer.

This article includes alist of references,but its sources remain unclear

because it has insufficientinline citations.Please help toimprovethis

article byintroducingmore precise citations. (September 2010)

Lon Walras

Lausanne School
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nes#cite_note-8http://en.wikipedia.org/wiki/Milton_Friedmanhttp://en.wikipedia.org/wiki/Anglo-Americahttp://en.wikipedia.org/wiki/Anglo-America


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Lon Walras

Born December 16, 1834

vreux,Upper Normandy,France

Died January 5, 1910 (aged 75)

Clarens, nowMontreux,Switzerland

Nationality French

Field Economics,Marginalism

Influences Augustin Cournot

French Rationalism

Influenced Vilfredo Pareto

Joseph Schumpeter

Maurice Allais

Wassily Leontief

Grard Debreu

Gustav CasselHenry Ludwell Moore

Knut Wicksell

Alfred Marshall

Oskar R. Lange

Contributions Walras' Law

General equilibrium

Marie-Esprit-Lon Walras(French: [valas];[1]December 16, 1834January 5, 1910) was aFrenchmathematical economist.He formulated themarginal theory of value(independently ofWilliam

Stanley JevonsandCarl Menger)and pioneered the development ofgeneral equilibrium theory.

Contents

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1 Life and career

o 1.1 Marginalist theory

o 1.2 General equilibrium theory

2 Reception

3 Major works of Lon Walras

4 See also

5 Notes

6 References

7 External links

Life and career[edit]

Walras was the son of French economistAuguste Walras.His father was a school administrator and not a

professional economist, yet his economic thinking had a profound effect on his son. He found the value of

goods by setting their scarcity relative to human wants.

Walras enrolled in the ParisSchool of Mines,[2]but grew tired of engineering. He also tried careers as a

bank manager, journalist, romantic novelist and a clerk at a railway company before turning to

economics.[2]Walras received an appointment as the professor of political economy at the University of

Lausanne.

Walras also inherited his father's interest insocial reform.Much like theFabians,Walras called for

thenationalizationof land, believing that land's value would always increase and that rents from that land

would be sufficient to support the nation without taxes.

Another of Walras' influences wasAugustin Cournot,a former schoolmate of his father. Through Cournot,

Walras came under the influence of FrenchRationalismand was introduced to the use of mathematics ineconomics.

Professor ofPolitical Economyat theUniversity of Lausanne,[2]Switzerland, Walras is credited for having

founded what subsequently became known, under direction of his Italian disciple, the economist

andsociologistVilfredo Pareto,as theLausanne schoolof economics.[3]

Because for a long time most of Walras' publications were only available in French, only a relatively small

section of the economics profession really became familiar with his work. This changed in the 1950s,

largely due to the work of William Jaff, the translator of Walras' main works, and the editor of

his Complete Correspondence(1965).[citation needed]Walras' work was also too mathematically complex for

many contemporary readers of his time. On the other hand, it has a great insight into the market process

under idealized conditions so it has been far more read in the modern era.

Marginalist theory[edit]

Although Walras came to be regarded as one of the three leaders of themarginalistrevolution,[4]he was

not familiar with the two other leading figures of marginalism,William Stanley JevonsandCarl Menger,

and developed his theories independently.
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g/wiki/Sociologisthttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#cite_note-Economyths-2http://en.wikipedia.org/wiki/University_of_Lausannehttp://en.wikipedia.org/wiki/Political_Economyhttp://en.wikipedia.org/wiki/Rationalismhttp://en.wikipedia.org/wiki/Augustin_Cournothttp://en.wikipedia.org/wiki/Nationalizationhttp://en.wikipedia.org/wiki/Fabianshttp://en.wikipedia.org/wiki/Social_reformhttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#cite_note-Economyths-2http://en.wikipedia.org/wiki/L%C3%A9on_Walras#cite_note-Economyths-2http://en.wikipedia.org/wiki/Mines_ParisTechhttp://en.wikipedia.org/wiki/Auguste_Walrashttp://en.wikipedia.org/w/index.php?title=L%C3%A9on_Walras&action=edit&section=1http://en.wikipedia.org/wiki/L%C3%A9on_Walras#External_linkshttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Referenceshttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Noteshttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#See_alsohttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Major_works_of_L.C3.A9on_Walrashttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Receptionhttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#General_equilibrium_theoryhttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Marginalist_theoryhttp://en.wikipedia.org/wiki/L%C3%A9on_Walras#Life_and_career


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General equilibrium theory[edit]

In 1874 and 1877 Walras published Elements of Pure Economics, a work that led him to be considered

the father of thegeneral equilibrium theory.The problem that Walras set out to solve was one presented

by Cournot, that even though it could be demonstrated that prices would equatesupply and

demandtoclearindividual markets, it was unclear that an equilibrium existed for all markets

simultaneously.

Walras constructed his basic theory of general equilibrium by beginning with simple equations and then

increasing the complexity in the next equations. He began with a two person bartering system, then

moved on to the derivation of downward-sloping consumer demands. Next he moved on to exchanges

involving multiple parties, and finally ended with credit and money.

Walras created a system ofsimultaneous equationsin an attempt to solve Cournot's problem "(which

supposedly Walras at first thought was complete merely because the number of equations equalled the

number of unknowns)"[5]

The crucial step in the argument wasWalras' Lawwhich states that any particular market must be in

equilibrium, if all other markets in an economy are also in equilibrium. Walras' Law hinges on themathematical notion that excess market demands (or, inversely, excess market supplies) must sum to

zero. This means that, in an economy with n markets, it is sufficient to solve n-1 simultaneous equations

for market clearing. Taking one good as thenumrairein terms of which prices are specified, the

economy has n-1 prices that can be determined by the equation, so an equilibrium should exist. Although

Walras set out the framework for thinking about the existence of equilibrium clearly and precisely his

attempt to demonstrate existence by counting the number of equations and variables was severely

flawed: it is easy to see that not all pairs of equations in two variables have solutions. A more rigorous

version of the argument was developed byKenneth ArrowandGrard Debreuin the 1950s.

Alfred MarshallFrom Wikipedia, the free encyclopedia

For the United States Representative from Maine, seeAlfred Marshall (politician).

Alfred Marshall

Neoclassical economics
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Born 26 July 1842

Bermondsey,London,England

Died 13 July 1924 (aged 81)

Cambridge,England

Nationality British

Influences Lon Walras,Vilfredo Pareto,Jules Dupuit,Stanley

Jevons,Sidgwick

Influenced Neoclassical economists,John Maynard Keynes,Arthur

Cecil Pigou,Gary Becker

Contributions Founder ofneoclassical economics

Principles of Economics(1890)

Alfred Marshall(26 July 184213 July 1924) was one of the most influentialeconomistsof his time. His

book,Principles of Economics(1890), was the dominant economic textbook in England for many years. It

brings the ideas ofsupply and demand,marginal utility,andcosts of productioninto a coherent whole. He is

known as one of the founders ofeconomics.
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Contents

[hide]

1 Career

2 Economics

3 Principles of Economics(1890)

4 Later career

5 Theoretical contributions

6 The Marshallian industrial district

7 Works

8 See also

9 References

10 Bibliography and further reading

11 External links

Career[edit]

Marshall was born in Clapham, England, July 26, 1842. His father was a bank cashier and a devout

Evangelical. Marshall grew up in the London suburb ofClaphamand was educated at theMerchant Taylors'

SchoolandSt John's College, Cambridge,where he demonstrated an aptitude in mathematics, achieving the

rank ofSecond Wranglerin the 1865Cambridge Mathematical Tripos.[1][2]Marshall experienced a mental crisis

that led him to abandon physics and switch to philosophy. He began with metaphysics, specifically "the

philosophical foundation of knowledge, especially in relation to theology.".[3]Metaphysics led Marshall to ethics,

specifically aSidgwickianversion of utilitarianism; ethics, in turn, led him to economics, because economics

played an essential role in providing the preconditions for the improvement of the working class. Even as he

turned to economics, his ethical views continued to be a dominant force in his thinking.

Marshall and a sharp reduction of inequality. He saw the duty of economics was to improve material conditions,

but such improvement would occur, Marshall believed, only in connection with social and political forces. His

interest in liberalism, socialism, trade unions, women's education, poverty and progress reflect the influence of

his early social philosophy to his later activities and writings.

Marshall was elected in 1865 to a fellowship at St John's College at Cambridge, and became lecturer in the

moral sciences in 1868. In 1885 he became professor of political economy at Cambridge, where he remained

until his retirement in 1908. Over the years he interacted with many British thinkers includingHenry

Sidgwick,W.K. Clifford,Benjamin Jowett,William Stanley Jevons,Francis Ysidro Edgeworth,John Neville

KeynesandJohn Maynard Keynes.Marshall founded the "Cambridge School" which paid special attention to
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econd_Wranglerhttp://en.wikipedia.org/wiki/St_John%27s_College,_Cambridgehttp://en.wikipedia.org/wiki/Merchant_Taylors%27_School,_Northwoodhttp://en.wikipedia.org/wiki/Merchant_Taylors%27_School,_Northwoodhttp://en.wikipedia.org/wiki/Claphamhttp://en.wikipedia.org/w/index.php?title=Alfred_Marshall&action=edit&section=1http://en.wikipedia.org/wiki/Alfred_Marshall#External_linkshttp://en.wikipedia.org/wiki/Alfred_Marshall#Bibliography_and_further_readinghttp://en.wikipedia.org/wiki/Alfred_Marshall#Referenceshttp://en.wikipedia.org/wiki/Alfred_Marshall#See_alsohttp://en.wikipedia.org/wiki/Alfred_Marshall#Workshttp://en.wikipedia.org/wiki/Alfred_Marshall#The_Marshallian_industrial_districthttp://en.wikipedia.org/wiki/Alfred_Marshall#Theoretical_contributionshttp://en.wikipedia.org/wiki/Alfred_Marshall#Later_careerhttp://en.wikipedia.org/wiki/Alfred_Marshall#Principles_of_Economics_.281890.29http://en.wikipedia.org/wiki/Alfred_Marshall#Economicshttp://en.wikipedia.org/wiki/Alfred_Marshall#Careerhttp://en.wikipedia.org/wiki/Alfred_Marshall


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increasing returns, the theory of the firm, and welfare economics; after his retirement leadership passed

toArthur Cecil PigouandJohn Maynard Keynes.

Economics[edit]

He desired to improve the mathematical rigor of economics and transform it into a more scientific profession. In

the 1870s he wrote a small number of tracts on international trade and the problems of protectionism. In 1879,

many of these works were compiled into a work entitled The Theory of Foreign Trade: The Pure Theory of

Domestic Values. In the same year (1879) he published The Economics of Industrywith his wifeMary Paley.

Although Marshall took economics to a more mathematically rigorous level, he did not wantmathematicsto

overshadow economics and thus make economics irrelevant to the layman. Accordingly, Marshall tailored the

text of his books to laymen and put the mathematical content in the footnotes and appendices for the

professionals. In a letter toA. L. Bowley,he laid out the following system:

(1) Use mathematics as shorthand language, rather than as an engine of inquiry. (2) Keep to them till you have

done. (3) Translate into English. (4) Then illustrate by examples that are important in real life (5) Burn the

mathematics. (6) If you cant succeed in 4, burn 3. This I do often."[4]

Marshall had been Mary Paley's professor of political economy at Cambridge and the two were married in

1877, forcing Marshall to leave his position as aFellowofSt John's College, Cambridgein order to comply with

celibacy rules at the university. He became the first principal atUniversity College, Bristol,which was the

institution that later became theUniversity of Bristol,again lecturing on political economy and economics. He

perfected his Economics of Industrywhile at Bristol, and published it more widely in England as an economic

curriculum; its simple form stood upon sophisticated theoretical foundations. Marshall achieved a measure of

fame from this work, and upon the death ofWilliam Jevonsin 1882, Marshall became the leading British

economist of the scientific school of his time.

Marshall returned to Cambridge, via a brief period atBalliol College, Oxfordduring 18834, to take the seat

asProfessor of Political Economyin 1884 on the death ofHenry Fawcett.At Cambridge he endeavored to

create a newtriposfor economics, a goal which he would only achieve in 1903. Until that time, economics was

taught under the Historical and Moral Sciences Triposes which failed to provide Marshall the kind of energetic

and specialized students he desired.

Principles of Economics(1890)[edit]

Main article:Principles of Economics (Marshall)

Marshall began his economic work, the Principles of Economics, in 1881, and spent much of the next decade

at work on the treatise. His plan for the work gradually extended to a two-volume compilation on the whole of

economic thought. The first volume was published in 1890 to worldwide acclaim that established him as one of
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the leading economists of his time. The second volume, which was to address foreign trade, money, trade

fluctuations, taxation, and collectivism, was never published.

Principles of Economicsestablished his worldwide reputation. It appeared in 8 editions, starting at 750 pages

and growing to 870 pages. It decisively shaped the teaching of economics in English-speaking countries. Its

main technical contribution was a masterful analysis of the issues of elasticity, consumer surplus, increasing

and diminishing returns, short and long terms, and marginal utility; many of the ideas were original with

Marshall, others were improved version of ideas byW. S. Jevonsand others.

In a broader sense Marshall hoped to reconcile the classical and modern theories of value.John Stuart Millhad

examined the relationship between the value of commodities and their production costs, on the theory that

value depends on effort expended in manufacture. Jevons and theMarginal Utilitytheorists had elaborated a

theory of value based on the idea of maximizing utility, holding that value depends on demand. Marshall's work

used both these approaches, but he focused more on costs. He noted that, in the short run, supply cannot be

changed and market value depends mainly on demand. In an intermediate time period, production can be

expanded by existing facilities, such as buildings and machinery, but, since these do not require renewal within

this intermediate period, their costs (called fixed, overhead, or supplementary costs) have little inf luence on the

sale price of the product. Marshall pointed out that it is the prime or variable costs, which constantly recur, that

influence the sale price most in this period. In a still longer period, machines and buildings wear out and have

to be replaced, so that the sale price of the product must be high enough to cover such replacement costs. This

classification of costs into fixed and variable and the emphasis given to the element of time probably represent

one of Marshall's chief contributions to economic theory. He was committed to partial equilibrium models over

general equilibrium on the grounds that the inherently dynamical nature of economics made the former morepractically useful.
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Alfred Marshall's supply and demand graph.

Much of the success of Marshall's teaching and Principlesbook derived from his effective use of diagrams,

which were soon emulated by other teachers worldwide.[5]

Alfred Marshall was the first to develop the standard supply and demand graph demonstrating a number of

fundamentals regarding supply and demand including the supply and demand curves, market equilibrium, the

relationship between quantity and price in regards to supply and demand, the law of marginal utility, the law of

diminishing returns, and the ideas of consumer and producer surpluses. This model is now used by economists

in various forms using different variables to demonstrate several other economic principles. Marshall's model

allowed a visual representation of complex economic fundamentals where before all the ideas and theories

were only capable of being explained through words. These models are now critical throughout the study of

economics because they allow a clear and concise representation of the fundamentals or theories being

explained.

Later career[edit]

He served asPresidentof the first day of the 1889Co-operative Congress.[6]

Over the next two decades he worked to complete the second volume of his Principles,but his unyielding

attention to detail and ambition for completeness prevented him from mastering the work's breadth. The work

was never finished and many other, lesser works he had begun work ona memorandum on trade policy for

theChancellor of the Exchequerin the 1890s, for instancewere left incomplete for the same reasons.

His health problems had gradually grown worse since the 1880s, and in 1908 he retired from the university. He

hoped to continue work on hisPrinciplesbut his health continued to deteriorate and the project had continued to

grow with each further investigation. The outbreak of theFirst World Warin 1914 prompted him to revise his

examinations of the international economy and in 1919 he published Industry and Tradeat the age of 77. This

work was a more empirical treatise than the largely theoretical Principles, and for that reason it failed to attract

as much acclaim from theoretical economists. In 1923, he publishedMoney, Credit, and Commerce,a broad

amalgam of previous economic ideas, published and unpublished, stretching back a half-century.

From 1890 to 1924 he was the respected father of the economic profession and to most economists for thehalf-century after his death, the venerable grandfather. He had shied away from controversy during his life in a

way that previous leaders of the profession had not, although his even-handedness drew great respect and

even reverence from fellow economists, and his home atBalliol Croftin Cambridge had no shortage of

distinguished guests. His students at Cambridge became leading figures in economics, includingJohn Maynard

KeynesandArthur Cecil Pigou.His most important legacy was creating a respected, academic, scientifically
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founded profession for economists in the future that set the tone of the field for the remainder of the 20th

century.

Having died aged 81 at his home in Cambridge, Marshall is buried in theAscension Parish Burial

Ground.[7]The library of the Department of Economics at Cambridge University (The Marshall Library of

Economics), the Economics society at Cambridge (The Marshall Society)[8]as well as theUniversity of

BristolEconomics department are named for him.

His home, Balliol Croft, was renamedMarshall Housein 1991 in his honour when it was bought byLucy

Cavendish College, Cambridge.[9]

Theoretical contributions[edit]

Marshall is considered to be one of the most influential economists of his time, largely shapingmainstream

economic thoughtfor the next fifty years, and being one of the founders of the school ofneoclassical

economics.Although his economics was advertised as extensions and refinements of the work ofAdam

Smith,David Ricardo,Thomas Robert MalthusandJohn Stuart Mill,he extended economics away from

itsclassicalfocus on the market economy and instead popularized it as a study of human behavior. He

downplayed the contributions of certain other economists to his work, such asLon Walras,Vilfredo

ParetoandJules Dupuit,and only grudgingly acknowledged the influence ofStanley Jevonshimself.

Marshall was one of those who used utility analysis, but not as a theory of value. He used it as a part of the

theory to explain demand curves and the principle of substitution. Marshall'sscissors analysiswhich

combined demand and supply, that is utility and cost of production, as if two blades of a pair of scissors

effectively removed the theory of value from the center of analysis and replaced it with the theory of price.

While the term "value" continued to be used, for most people it was a synonym for "price". Prices no longer

were thought to gravitate toward some ultimate and absolute basis of price; prices were existential, between

the relationship of demand and supply.

Marshall's influence on codifying economic thought is difficult to deny. He popularized the use ofsupply and

demandfunctions as tools of price determination (previously discovered independently byCournot); modern

economists owe the linkage between price shifts and curve shifts to Marshall. Marshall was an important part of

the "marginalistrevolution;" the idea that consumers attempt to adjust consumption untilmarginal utilityequals

the price was another of his contributions. Theprice elasticity of demandwas presented by Marshall as anextension of these ideas. Economic welfare, divided intoproducer surplusandconsumer surplus,was

contributed by Marshall, and indeed, the two are sometimes described eponymously as 'Marshallian surplus.'

He used this idea of surplus to rigorously analyze the effect of taxes and price shifts on market welfare.

Marshall also identifiedquasi-rents.
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arshallian_surplushttp://en.wikipedia.org/wiki/Consumer_surplushttp://en.wikipedia.org/wiki/Producer_surplushttp://en.wikipedia.org/wiki/Price_elasticity_of_demandhttp://en.wikipedia.org/wiki/Marginal_utilityhttp://en.wikipedia.org/wiki/Marginalisthttp://en.wikipedia.org/wiki/Cournothttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/w/index.php?title=Scissors_analysis&action=edit&redlink=1http://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/Jules_Dupuithttp://en.wikipedia.org/wiki/Vilfredo_Paretohttp://en.wikipedia.org/wiki/Vilfredo_Paretohttp://en.wikipedia.org/wiki/L%C3%A9on_Walrashttp://en.wikipedia.org/wiki/Classical_economicshttp://en.wikipedia.org/wiki/John_Stuart_Millhttp://en.wikipedia.org/wiki/Thomas_Robert_Malthushttp://en.wikipedia.org/wiki/David_Ricardohttp://en.wikipedia.org/wiki/Adam_Smithhttp://en.wikipedia.org/wiki/Adam_Smithhttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/w/index.php?title=Alfred_Marshall&action=edit&section=5http://en.wikipedia.org/wiki/Alfred_Marshall#cite_note-9http://en.wikipedia.org/wiki/Lucy_Cavendish_College,_Cambridgehttp://en.wikipedia.org/wiki/Lucy_Cavendish_College,_Cambridgehttp://en.wikipedia.org/wiki/Marshall_House,_Cambridgehttp://en.wikipedia.org/wiki/University_of_Bristolhttp://en.wikipedia.org/wiki/University_of_Bristolhttp://en.wikipedia.org/wiki/Alfred_Marshall#cite_note-8http://en.wikipedia.org/wiki/The_Marshall_Library_of_Economicshttp://en.wikipedia.org/wiki/The_Marshall_Library_of_Economicshttp://en.wikipedia.org/wiki/Alfred_Marshall#cite_note-7http://en.wikipedia.org/wiki/Ascension_Parish_Burial_Ground,_Cambridgehttp://en.wikipedia.org/wiki/Ascension_Parish_Burial_Ground,_Cambridge


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Marshall's brief references to the social and cultural relations in the "industrial districts"of England were used

as a starting point for late twentieth-century work ineconomic geographyandinstitutional

economicsonclusteringandlearning organizations.

Gary Becker(b. 1930), the 1992 Nobel prize winner in economics, has mentioned that Milton Friedman and

Alfred Marshall were the two greatest influences on his work.

Another contribution that Marshall made was differentiating concepts of internal and externaleconomies of

scale.That is that when costs of input factors of production go down, it is a positive externality for all the firms

in the market place, outside the control of any of the firms.[10]

The Marshallian industrial district[edit]

A concept based on a pattern of organization that was common in late nineteenth centuryBritainin which firms

concentrating on the manufacture of certain products were geographically clustered. Comments made by

Marshall in Book 4, Chapter 10 of Principles of Economics[11]have been used by economists and economic

geographers to discuss this phenomenon.

The two dominant characteristics of a Marshallian industrial district[12]are

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