How Global Corporations Affect National Economies Essay

The growing size of the Multinational Companies around the world; their global operations and financial practices pose some serious questions about the implementation of best practices that do justice to everyone, including the countries with less developed economies, where many of these corporations operate. Global Corporations may create problems regarding the national balance of accounts. Every company operates globally, to maximize its profits and pay less tax. To gain the optimum advantage, they follow accounting practices that contravene the domestic ones, used within the countries where they operate. For example, corporations charge their own internal transactions and present them as expenditure. This matter has evolved in such a way, that today, global corporations are the winners, and most of the times the countries where they operate are the losers. Multinational Corporations and the Distribution of Income There is an increasing tendency among multinational corporations to transfer their intangible assets to non-domestic associates. These foreign affiliates are created for a unique purpose: to gain a larger share of their profits, by reducing operational costs. Many international businesses transfer their operations like production and services to the countries where the tax rates are lower, compared to their mother country, where the parent company has its headquarters. According to OECD Statistics, that researchers have performed, there is a remarkable growth in the transfer of all these intangible assets from 13 percent to 37 percent in a period of 28 years, from 1983 to 2011. Corporations continuously pursue the policy of getting tax benefits and find different means to get benefited by lower tax rates in the countries where the affiliates are located. They keep their main focus on increasing their profits and showing incomes in the countries where there are lower tax rates applied. They do this by transferring their intangible assets, interposing their operations, producing more in the countries where they pay lower taxes. They also tend to shift their manufacturing units to offshore locations, in low tax and cheap labor countries. They also make changes and make an affiliate into an owner and an owner into an affiliate. Naturally, an affiliate in the low tax country becomes the parent company leading to many structural changes in the entire organization and therefore, influencing business in their host countries. According to authors such as John Dunning, the ultimate result of all these activities reflects in showing a recorded low Gross Domestic Product where the tax rates are high and making the recorded Gross Domestic Product higher in the low tax countries. The raise in the lower tax countries is shown as a relative growth.

Analysis of Battle Royal – 1

A White Compromise In the short story, â€Å"Battle Royal†, Ralph Ellison uncovers a boy’s fight to maintain his dignity in a world of racial injustice. The first person narration portrays a naive view of the boy’s values of what he believes is important in life that is only questioned by his grandpa’s firm conviction of dignity. On page 39, starting with paragraph 99, the text depicts the differences between the two segregated worlds of black and white. The text elucidates the boy’s conformity to the wishes of white man.His acceptance of the scholarship symbolizes his acceptance of separation between the two societies as â€Å"it was a scholarship to the state college for Negroes. † Although the boy realizes that whites and blacks are restricted to societal confines that can never merge and never become equal, the boy fails to see the force exercised by the whites that lock him into this box. When he prioritizes materialistic wealth, â€Å" smelling the fresh leather† of the brief case over his own dignity, he resigns himself to the desires of society in that he blinds himself with affluence and thus becomes incapable of realizing his own visions.This is further strengthened by the boy’s quote â€Å"I felt an importance that I had never dreamed† because it implies that he no longer needs his dignity in order to achieve a feeling of success. It provides him with self-respect and happiness that prevent him from questioning the advantages of conformity. Stripped from his pride and naively reaching for wealth he contributes to his own confinement as he goes to â€Å"attend college† in order to â€Å"shape the destiny of [his] people† and thus fulfills the plans of whites.While the boy puts his destiny in the hands of white society, he conforms to the rules of white control. Despite the boy’s conformity to white rule, he continues to struggle in discovering his dignity. The repetitio n of the word â€Å"blood† serves as an important symbol for the boy’s dignity; it signifies the pride he has in his own race and binds him to his people. However, the boy remains ignorant of this tie and his â€Å"rope of bloody saliva† only forms â€Å"a shape like an undiscovered continent†.This imagery represents the possibility of discovering his own dignity and a new world in which he is free to shape his own destiny. Yet the boy’s blindness leads him to wipe the blood â€Å"quickly away† as it had â€Å"drooled upon the leather† of his brief case, and smeared the desired promises of the white men. The juxtaposition of the line â€Å"I was overjoyed; I did not even mind when I discovered that the gold pieces I had scrambled for were brass pocket tokens advertising a certain make of automobile† strengthens the idea of the boy’s blind struggle for dignity.It connotes that the â€Å"scholarship to the state college f or Negroes† he had received is just as fake as the â€Å"brass pocket tokens†, thus symbolizing his reach for a false dignity. The boy’s dream in the following paragraph continues to enhance his internal struggle to find dignity by contrasting his character to that of the grandpa. Through the setting of a circus, the narrator suggests that the boy is merely a clown and compliant to any orders that he is given, while the grandpa, who â€Å"refused to laugh at the clowns no matter what they did,† sticks to the dignity of his race.The juxtaposition of this sentence also shows that the grandpa is not humored by the naivete of the boy; instead he is rather disappointed as the boy is unable to see that he serves as entertainment to society. Unlike his wizened grandfather, the boy idealistically believes any promise given to him, â€Å"another and another, endlessly† until his dignity is consumed by the will of white men. The boy is so occupied in reaching these promises that he â€Å"would fall of weariness† before he could realize that the further he reached, the more distant he was from discovering his dignity.While society wants to â€Å"‘Keep This Nigger-Boy Running’† by undermining his dignity with the false glamour of a scholarship, the boy realizes that the whites only give him what he thinks he wants; means to attain racial equality as a return for complacency. However, what he truly desires is break free from being oppressed and gain equal status through demonstrating that his intellect and abilities are equivalent to that of the whites.Because â€Å"at that time [he] had no insight into its meaning,† he had to compromise between what society could offer him and his dignity. Nonetheless, the authorial intrusion demonstrates that the narrator gained extensive perspective on his former naivete when telling his story; thus the reader can infer that the boy no longer sees any value in the confo rmation to white society. The trade-off between his dignity and false glamour is similar to the zero sum theory in that it takes power from one entity and puts it in the hands of another.Every time the boy conforms to the wishes of white society he gives up some of his dignity, similarly when he strives to find his dignity he gives up his willingness to conform to ways of the white men. In the end, his realization depicts him choosing his dignity above all as illustrated by the last line â€Å"First I had to attend college†. Therefore, the boy’s struggle to discover his dignity is resolved through his gain of power that allows him to shape his own destiny and simultaneously break free of white oppression.

Intellectual Disabilities Research Paper Example | Topics and Well Written Essays - 1500 words

Intellectual Disabilities - Research Paper Example Moreover, intellectual disabilities affect individuals during aging. Understanding intellectual disability is critical in education to help students having this condition (Woodcock & Vialle, 2010). This paper will discuss the definition of intellectual, its characteristics and its impacts on intellectual functioning and adaptive behavior. Moreover, strategies to assist students in this disability category will be described. Defining Intellectual Disability World Health Organization describes intellectual disability as the significant reduction of the ability to comprehend new information and in learning and applying new skills. The American Association of Intellectual and Development Disability (AAIDD) explain that intellectual disability is not usually an isolated disorder. AAIDD offers a three dimensional definition of intellectual disability and this is the most widely acknowledged definition (Barrett, 2011). According to the AAIDD, intellectual disability is a disorder that begin s before one gets to the age of 18 years that is characterized by great limitation in intellectual functioning and adaptive behavior. Intellectual functioning refers to various aspects of life such as learning, reasoning, problem solving (Barrett, 2011). On the other hand, adaptive behavior touches on a range of practical and social skills in areas of self-care, communication, self-direction, health, safety leisure and work. Intellectual disability has been introduced as a replacement to mental retardation that was previously used (Jellinek, Patel & Froehle, 2002). The prevalence of intellectual disability in America is relatively high with about one in every ten families affected. However, the estimated prevalence varies based on the criteria used in diagnosis, study design and ways of ascertaining (Barrett, 2011). For instance, when intelligent quotient (IQ) is used in diagnosis, the prevalence of intellectual disability is estimated at 3 percent but when applying the AAIDD defini tion, national prevalence stand at 1 percent. Prevalence of intellectual disability is higher among males and the male to female ration is about 1.5 to 1 (Barrett, 2011). Diagnosis and Assessment of ID Assessment of intellectual disability involves a multidisciplinary team comprising of psychiatrists, pediatricians, psychologists and clinical geneticists. The assessment is usually comprehensive where intellectual ability, adaptive behavior and medical and family history of the patient is assessed (Garbutt, 2010). DSM-IV-TR offers standardized criteria used in the diagnosis of the disorder and this is used among children and adults. Intellectual is characterized by below average intellectual functioning. The characteristics of intellectual disability include the fact that disorder begins before the age of 18. DSM-IV-TR requires that all the symptoms of intellectual disability must have begun before the age of 18 (Garbutt, 2010). However, this does not limit diagnosis after 18 years. Nevertheless, children who have not reached the age of two years should not be subjected to intellectual disability diagnosis. This may however be conducted in case a child demonstrates severe symptoms related to intellectual disability for instance Down syndrome (Garbutt, 2010). The other characteristic of intellectual disability is poor adaptive functioning. Adaptive functioning is described as the effectiveness of an individual to functioning in tandem with

Statistics Assignment Speech or Presentation Example | Topics and Well Written Essays - 3250 words

Statistics Assignment - Speech or Presentation Example The probability of winning the lottery is then around nine in a billion. It should be noted that the resulting equation actually simplifies to a multiplication rule. However, the binomial distribution may be used to model more complex lottery options. In the construction of a 5-digit number, the order in which is numbers are drawn is clearly important. Also, since repetition of digits is not allowed, a single digit chosen is removed from the pool of possible succeeding digits. These conditions indicate that the total number of digits can simply be taken using a permutation. The given table can only be classified as a probability distribution if its individual probabilities are between zero and one and the total probability is equal to one. In the given table, the probability at X = 2 is greater than one. Since no negative probabilities are present, the total probability is also greater than one. As both requirements are not met, the table cannot be a probability distribution. The sample data is relatively sparse (n To determine whether a relationship exists between the two variables, the given data may be fitted onto a function. The simplest approach is to use a linear model for approximating the relation. To aid in this, a column representation may be constructed. It should be noted that the independent variable based on the description is the cost of the product. An assumed frequency distribution is assumed in this case which allows the use of the Goodness of Fit test. The computations for the chi square statistic can then be determined as shown in the following table: Data is a very important

Fashion Police - Flint Cracks Down on Sagging Essay

Fashion Police - Flint Cracks Down on Sagging - Essay Example Flint The essay "Fashion Police - Flint Cracks Down on Sagging" gives a detailed information about photographies of fashion and provides a critique on the trends in them. The pants are not being used for the purpose that they were made for. As for the third picture, in which not only underwear is showing but so is the butt, the image is offensive, which is to say that the male the image is depicting is offensive. Private parts of the body should be covered up and not on display for everyone to see. Furthermore, both the pants and the underwear no longer serve their purpose of keeping those areas covered up. As for the comments based on each picture, stating that the picture in which the pants sag but still remain above the butt, are correct. At least in this first image the male is merely sagging his pants, showing a little bit of underwear, which is something that can happen to someone who is not even wearing saggy pants. Though I disagree that the second image where the male has hi s pants below the butt is considered disorderly conduct. He is showing much more of himself than he needs to be, and therefore this should be considered indecent exposure, just as the third image is considered. After reading the article that accompanies the photograph, the purpose behind the â€Å"criminal offense† system of sagging pants seems almost as ridiculous as the sagging pants themselves. Arresting people simply because their pants sag a little too low seems like a cheap way for a police officer.

Human resource - service industry Essay Example | Topics and Well Written Essays - 5250 words

Human resource - service industry - Essay Example The airline company, which has been chosen to structure this report, is the British Airways. It is one of the world's leading scheduled international passenger and cargo airlines catering to about 300 destinations across the world. ("Annual Report of British Airways", 2008). According to the International Air Transport Association the airline industry, lost up to $8 billion in the year 2008 which surpassed previously forecasted amount. The marketing environment is constantly changing and with every change the industry gets affected. The demand for airline industry is highly income elastic ("An analysis of British Airways Marketing Environment", 2008). Thus the rise in fuel price last year and the recent economic turmoil has affected the airlines industry in a huge way as passengers are avoiding more expensive travels. According to a report by Air Transport Association (ATA), the revenue generated from passenger travels for all airlines fell by 19% during the month of February, 2009 when compared to February 2008. The company saw a decline in 8.6 percent in premium traffic and 4.1 percent in non premium. ("Lucrative Business class air travel hit by crisis", 2009). Thus the situation within the company is not showing encouraging signs. In such operating e nvironment the company is applying reactive strategies by planning to cut down on employees. It has to be remembered that British Airways is formed by the collaboration of two state owned airlines. As a result the company previously lacked in any focused Human Resource Management policy. The significant changes took place when Lord King was appointed as the chairman of the company in the year 1981, and he was quick to identify the low employee moral that was present within the organization. The company's core values lies with the quality of customer service they provide which is attached to its brand. Given this operating environment in the industry, the company needs to incorporate concentrated human resource management policies into their revival strategy. This is because of the fact that, in the case of industries like this industry, where the most of the employees are coming in direct contact with the customers the level of employee motivation required is very high. The way in w hich the employees are being treated and compensated will reflect the effectiveness of value proposition being delivered to the customers. British Airways was formed by the merger of British European Airways and British Overseas Airways Corporation in the year 1974. (Lundy, Cowling, 1996). As both of the merging airlines were state owned the merger resulted in the overstaffing (more than 50 thousand) of the new enterprise and also there were evident management related issues within the organization. In the year 1980 the management style of the company was bureaucratic in nature containing many layers of hierarchical management. (Lundy, Cowling, 1996). At that time less importance were given in the qualitative aspects like employee relation, customer loyalty etc. Focuses were more given on the operational aspects but till then the company was incurring heavy losses. The significant

Malcolm X Essay Example | Topics and Well Written Essays - 750 words - 1

Malcolm X - Essay Example His following into the wrong crowd is the aftermath of finding a job with the New York-Boston line, where he is forced to make the choice of joining a gang by virtue of being a black person and being of a different ethnic grouping from the rest of society, which is being black (Omi 10). The scene of Malcolm facing justice is peculiar to race issues in that other members of society from other races engaging in similar or worse activities were let off, as is the case of the Ku Klux Klan, who killed his father and no action was taken against them. This shows that certain members of a certain race can be held accountable for their own actions, while the rest based on their race can go scot free with no charge. Still on this scene, another concept comes up, where there are races that are higher than the rest in regard to who qualifies to join which corps in society and who does not, which brings forth the concept of segregation based on race. This is seen in the same scene in that there a re certain social problems that only affect certain races and not others, as Malcolm X is forced into the wrong crowd, where he joins a gang, not out of choice, but out of circumstances that he cannot help. With this in mind, race shows the scene shows the inequity amongst different races as it shows the gang problem as being unique to young black people living in the ghetto. The scene also raises the concept of moral responsibility found among different races, which is not common to all, as certain races tend to engage in certain conduct. This issue is intertwined with the earlier issue raised on unique problems affecting certain races in that joining gangs is made to appear as a thing only black youth would do and not the rest of the society. This is to mean that only black youth did drugs, as Malcolm X was an active participant in peddling coke for the local gang leader, according to the 1992 movie. The movie only depicts one other gang that is not of African American origin enga ging in gang and criminal activity, which is the Ku Klux Klan, and its depiction is that it is a white supremacist groups aimed at lowering the dignity of the local black people. The awareness of the moral issues is that racially, white supremacy groups are not morally wrong in trumping on the interest and rights of the black people, who they perceive as lesser beings compared to themselves (Omi 11). In race, the issue of double standards is brought again in this scene in that it shows the shifting goal posts of morality and rulings based on who is who in society, all based on the color of the skin and ethnicity. The same scene of the Ku Klux Klan draws the concept of race as a concept, where segregation thrives based on cultural differences, as well as the differences of skin color. This is as can be seen in the killing of Malcolm X’s father when Malcolm X was a child, which then brings to perspective how race makes people socially incompatible based on color and cultural va lues. The Ku Klux Klan could not handle the fact that there were black people and white people in the same society thus social supremacy comes in. In conclusion, the movie Malcolm X of 1992 on different levels draws out the concepts of race based on

Why did the suffragette movement in London turn violent in 1908 Essay

Why did the suffragette movement in London turn violent in 1908 - Essay Example The Daily Mail in London, on 10th January 1906, used the word â€Å"suffragette† to identify those women who adopted the method of action and violence in their campaign for their right to vote. â€Å"Suffragists† was used for those women who adopted peaceful and conventional methods in their campaign. Although the women had been fighting for their right to vote ever since the 1860s, the movement gained its momentum under the leadership of Emmeline Pankhurst and her two daughters Christabel and Sylvia. The Pankhursts’ established the Women’s Social and Political Union (WSPU) in 1903. According to June Purvis (2003), Emmeline was moved by the plight of women in poverty. She believed that the only way the women could gain their rights in the society was through the right to vote. As June Purvis (2003) writes, Emmeline believed that â€Å"women.. had to form their own independent movement if the vote was to be won and to find new ways of breathing life into the women’s suffrage campaign.† Pankhurst disagreed with the ways of the NUWSS led by Millicent Garrett Fawcett. NUWSS had adopted peaceful and â€Å"ladylike† conventional methods of campaigning and also recruited men for various positions. According to Purvis (2003), â€Å"Emmeline was convince d that a fresh approach was needed and that women had to do the work themselves.† This led to the formation of the WSPU. It was made clear that the WSPU would be different from the NUWSS. They pledged to limit the membership to women only and to be satisfied with nothing but action. As Purvis (2003) writes, â€Å"Deeds, not words† was adopted as the main motto of the WSPU.

The similarities, and differences, between the philosophies of John Term Paper

The similarities, and differences, between the philosophies of John Rawls Theory of Justice, Adam Smith Theory for Moral Sent - Term Paper Example In the end what we have in Gates creative capitalism is an extrapolation of earlier theories, customized and set to the more practical tune of direct intervention and redistribution. Rawls and Gates’ in the Looking Glass Bill Gates and creative capitalism in relationship to Rawls’ Theory of Justice provides the basis for comparison between pure social theory and practical application. Not that the two always coincide, and certainly not that either necessarily agrees with the other implicitly. Yet both Shaw and Barry put forth the proposition that Rawls’ ideas [like those of Gates] ‘touch a responsive chord† (Shaw and Barry:128). Rawls’ concept of society â€Å"as a cooperative venture† (Shaw and Barry 129) resonate throughout Gates 2008 remarks before the World Economic Forum. As social contract theory, both Gates and Rawls call for a rethinking and extension of original social contracts proposed by earlier philosophers. But perhaps the most significant connection tying the two emanates from Rawls’ theory â€Å"that social and economic inequalities are justified only if those inequalities benefit the least advantaged members of society† (Shaw and Barry 129). ... (Gates, Economic Forum: 1) Guth goes further in his criticism, referring to Gates’ proposals for creative capitalism as a â€Å"revision of capitalism† (Guth par 1), a concept never popular with purists. It can also be said that in rethinking the terms of capitalism vis a vis the world’s poor, Gates returns to Rawls’ concept of original position. Beyond mere philanthropy--a term often used to describe Gates work--he is offering the wealthiest an opportunity, as Rawls’ theory suggests, to gather, think and discuss the meaning of true social justice [in economic terms] (Shaw and Barry 133). Rawls rather naive conclusion, however, that those discussing original position must not be conscious of social status runs counter to Gates’ full acknowledgement of social level and his direct appeal to the wealthiest. Stating the two great forces of human nature as† self interest and caring for others† (Gates, World Economic Forum: 3), Gates ag rees with Rawls at least regarding self interest as a driver, taking the theory of what makes capitalism tick a step further in proposing that â€Å"The genius of capitalism lies in its ability to make self interest serve the wider interest† (Gates, World Economic Forum: 3). Regarding the thrust of both Rawls’ theory and creative capitalism, it is difficult and wrong to declare that one or the other is based on pure reason or pure sympathy. Yet in analyzing Rawls and Gates one might tend more toward judgments of reason over sympathy as the catalyst for their proposals. Gates, however, at times tends toward the latter in his declaration that the poor of the world have not enough resources to sustain them.(Gates, World

Marketing case Essay Example | Topics and Well Written Essays - 1250 words

Marketing case - Essay Example ions were manifested regarding the introduction and marketing of casual runners and walkers in 11 new designs, instead of focusing on the 5 designs that the company has produced for the last 15 years. There are different symptoms that were identified in the case such as: (1) an eroding regional share; (2) eminent failure to increase the share in the broader market; (3) inability to cope with production of more designs using the present workforce; and (4) ineffective advertisements that confused old customers more than attracting new ones. From these symptoms, one could deduce that using the 5 Why Analysis: why was there an erosion in regional share? (could be due to increasing competition where more product options were available); why did they fail to increase the share in a broader market base despite increasing the number of designs? (could be due to their inability to cope with the required high quality expected of the products they produce); why were they unable to cope with the production of new designs (maybe their present staff of 35 production workers could not comply with the increased product designs or there were failure to detect the quality of work outsourced from t wo plants in South Korea); and, why was there ineffective advertisements (maybe due to the increase product designs, management could not focus on the product and marketing strategies that they want to project to the consumers). In this regard, after closer evaluation, the root problem actually stemmed from the overexpansion in product lines and designs that have not been supported by appropriate marketing strategies to enhance public awareness and to establish core competence and competitive advantage for a particularly strong product brand or line. 1. What had Henry done right? Actually, Henry was right in identifying that Pacer must respond to the changing and increasing demands of the athletic shoe market. The industry’s largest players begun to go after their established market

Interpreting Financial Results Essay Example for Free

Interpreting Financial Results Essay Targets mission is for their customer to except the most out of them and to pay less for their products. They plan to achieve this by delivering outstanding values, continuous innovation and exceptional guest experiences. As I have research and interpret Targets Financial Results, I was able to identify some trends they have experiences within the last three years. When it comes to Targets Liquidity Ratio, the pattern shows that from 2011 to 2013 they start up went down and slowly went back up. As for their Efficiency Ratio the trend identifies that from 2011 to 2013 they were still starting high then dropping low and slowly coming back up. Now when it comes to the Leverage Ratio Targets has continuous increase for 2011 to 2013 with just a little decrease in some areas and this also goes for the Profitability Ratio, Market Value Indicator soon. I also had the opportunity to compare the financial results of Target with their benchmarking company Walmart. Once I review Walmarts financial results, I saw some of the same trends target had. I also notice that Walmart has a lot more revenue being generated then what Target does. I have attached a financial ratio sheet which will also confirm and identify the trends of both Target and Walmart.

Humanistic Theology and the Educational System

Humanistic Theology and the Educational System The influx of humanistic theology into the educational system has given rise to considerable tension within the Christian community in the recent years. Questions have been asked of what humanism is and where it comes from. Humanism is a methodology that concentrates on the welfare or progress and happiness of all humanity in this alone and only life. Humanism can be traced back to the times of Democritus and Aristotle of Ancient Greece. (Lamont, 1992). Its tie to the Greek culture resulted in pagan features such as glorification of mankind (Dodgen, 1986, 195).). It is said that the Greek set about humanizing everything. They humanized God, nature and daily life, and it is out of these acts that great minded men measured all things and gave a firm and noble body of standards to the human life which came after them (King). The theory of humanism as said has given rise and considerable tension within the Christian community. This brings out curiosity to know what the statement of concern is. Well Humanism is a school of thought that gives primacy to the study of human needs and interest, for instance looking at the theory of Abraham Maslow and his definition of humanism which says â€Å"The focus of the humanistic perspective is on the one self who translates to, â€Å"you† and â€Å"your† perception of â€Å"your† experiences. This view proposed by Maslow argues that you are free to choose â€Å"your† own behaviour rather than react to environmental stimuli or reinforces. This statement is also in contrast to the beliefs of operant conditioning developed by the American research psychologist Burrhus Frederic Skinner. Skinner believed that all behaviour is the result of application of consequences. The theory of humanism emphasized on faith in action. Faith in action but not in a good way. Humanism teaches that it is immoral to wait for God to act for us. It emphasizes that we must act to stop the wars and the crimes and the brutality of ties and future ages. Humanism says we have powers of remarkable kind. We have a high degree of freedom in choosing what we will do. It tells us that whatever our philosophy of the world may be, ultimately the responsibility for the kind of world in which we live in lies with us. All this brings the fact that the issue of concern is that humanism is a philosophy for those who love themselves, a philosophy of imagination and it is focused upon human’s means for comprehending reality. It does not leave any room for God as the Creator of the universe rather it only portrays God as one who ordains the good or bad that we do. Hence Humanism causes tension because it does not preserve the legitimacy of the spiritual world and God being the deity of all things All that left aside the understanding of humanism becomes relevant to the practices of Christian education when one begins to look at the principles of humanistic education or educational humanism. Keep in mind that humanism did not birth in a conference room, educational reform or legislative act. It has been influenced by people of different fields. Perhaps it is the advocacy by the modern or naturalistic humanists that seems to have drawn the ire of religious leaders towards humanism, especially fundamentalist Christians. This is in spite of the fact that modern humanists advocate a strict separation of church and state, especially in the domain of public education. When humanism is applied to education it encompasses a variety of assumptions about the teacher, learner, curriculum and the context of learning. There are a lot of principles and each principle highlights the understanding of humanistic education. Some of the principle and objectives that can be seen as basic are: Teachers should be trusting, sincere and empathetic with their students. They should prize their students and hold them with high regard. This as proposed by Carl Rogers who concludes that such an attitude on the part of the learning leader would set stage for successful experiences and students would become more self accepting and aware of themselves. As proposed by Gage and Berliner(1991) there are five objectives that a teacher must meet which are: promote positive self-direction and independence, develop the ability to take responsibility for what is learned, develop creativity, develop curiosity and lastly create an interest in the arts in students. This can also be known as sponsoring invitational learning. Affective factors should be explored as much as the cognitive dimension of classroom instruction (Beihler, 1986, 399). Research by Bayer (1986) indicates that children who are taught in an atmosphere which is conclusive to effective learning will also have a more positive self concept (130-131). The relationship between the teacher and the pupil has important impact on the learning process. Thomas Gordon (1974) a popular humanist educator, describes a healthy teacher student relationship. He says that the relationship between a teacher and a student is good when it has (1) openness or transparency-so each is able to risk directness and honesty with the other, (2) caring-whereby each know they are valued by the other, and lastly (3) interdependence on one another. William Purky (1978) call attention to the relationship between a student’s self-concept and scholastic achievement and recommends that instructors develop and use skill of invitational learning. Such a skill as learning students names, having one on one contact with them outside of class, praising and affirming them, demonstrating personal and classroom discipline , and being transparent with personal feeling will help the child recognize his/her values and capabilities or in other word influencing self efficacy. That all teachers must always keep in mind that learning is facilitated when the pupil is prized, valued and respected by the teacher who can care without being possessive. This is what Abraham Maslow would call promotion of self actualization which would push students to work very hard. Teachers should use techniques for encouraging students to identify with others, emphasize with them, and relate their feelings to the feeling of others. Teachers are to endorse self determination or self regulation to make students accountable for their action and choices. Looking at those principles of humanistic education it becomes clear that many of them are based upon sound principles of education. It would not be difficult to cite biblical references to demonstrate examples form scripture where many of the principles can be seen. That is not to say that educational humanism has its roots in scripture, because such a statement would be based on faulty methods of hermeneutics. For someone who would study humanism there are a few key terms that would help them understand more about humanism and what it stands for when it comes to education. Some of these are: Self-efficacyis the extent or strength of ones belief in ones own ability to complete tasks and reachgoals. This can be seen as the ability to persist and a persons ability to succeed with a task. As an example, self-efficacy directly relates to how long someone will stick to a workout regimen or a diet. High and low self-efficacy determines whether or not someone will choose to take on a challenging task or write it off as impossible. Self-actualization Maslow explicitly defines self-actualization to be the desire for self-fulfilment, namely the tendency for him [the individual] to become actualized in what he is potentially. This tendency might be phrased as the desire to become more and more what one is, to become everything that one is capable of becoming Self- determination, the process by which a person controls their own life. Invitational learning, William Purky said â€Å"no aspect of education is more important than the feeling on the part of the teacher that the individual student is important, valuable, and can learn in school† However humanism goes much further than modernism in its view towards the bible .the view of the humanist is much more radical. Humanism believes in few things that as Christians we may consider them as blasphemy. Some of which are; â€Å"We believe however those tradition dogmatic or authoritarian religions that place revelation, God or creed above human need do a disservice to the human speciesAs non-theists; we begin with humans, not God, nature not deity†. As Paul Blanshard, an editor of the Humanist (a slick national publication) wrote: â€Å"The evangelists reverently call the Bible â€Å"The Book†, and they say it is God’s word. Let’s be blunt about it. By no stretch of the imagination can the bible be called either the revealed word of God or the errorless work of God. It is not one book, and it is not holy. It is very bad history and even of questionable morals† Looking at this we see that humanism is not indifferent toward the Bible-but is at all out ward against it. The quotations are fully typical and representative of humanistic thinking toward any revelation from God. The only way Christians can combat their vicious and desperate influences of humanism and its war on the bibles, is by being so knowledgeable and conversant in the scriptures that can effectively wield the mighty sword of the Spirit. The essence of positive pride is confidence and contentment, a sense of gratitude and accomplishment in the productive use of your gift (Faw, 134-136). There is a need to have a Biblical perspective of the person and human experiences in order to correctly understand the insights contained in certain theories. The truths about human nature in scripture focus largely on our relationship with God and our need for salvation He alone can provide (Faw, 137). A Christian who meditates upon the word of the lord and keeps in his heart will have no difficulty seeing the vast superiority of Christianity over humanism or any other vain philosophy. The bible has something real and stable. The Bible offers a perfect guide for day to day living: teaching the value of time (Eph. 5:15-16); honesty (Eph. 4:25,28); the putting away of every vice which is harmful to ones self and others (Col. 3:5-9); benevolence and kindness in thought and deed (Col. 3:11-14). The Bible condemns all partiality and prejudice (Col. 3:11; Gal. 3:26-28; James 2:19). The Bible teaches moderation, patience, and peace (Phil. 4:4-8). Humanism stresses that this life is all there is that our existence is extremely brief and ultimately hopeless. The Bible, on the other hand, teaches us that while the outward man perishes, the inward man is renewed day by day. Gods word offers us eternal life and provides the motivation to live an honourable, godly life that we might live eternally with God. The Bible and humanistic philosophy are at war. The battle is bitter, but there is only one way that wickedness can prevail: If Christians fail to study and practice the teaching of Gods word. There is a major difference between the belief system of the messengers of God and those who reject the word of God. Others find their beliefs humanistically upon their evidences form senses, logic, philosophy and observation. Instead of founding their human study upon the word of God, they sought to test the Word of God by their human study. Paul warned: â€Å"As you have therefore received Christ Jesus the lord, so walk in Him, rooted and built up in Him and established in the faith. Beware lest anyone cheat you through philosophy and empty deceit, according to the tradition of men, according to the basic principles of the world, and not according to Christ†(Colossians 2:6-9). The difference between the humanistic system of the world and God’s system is outlined in 1Corinthians 1 and 2. The world bases faith in the wisdom of men. Some seek signs- that which can be measured, seen, touched, tasted, and heard. Others look for Philosophical reasoning. Humanistic and Biblical concepts of faith can be compared in many ways some of which are: The humanism starts with doubt in order to prove assertion while the Bible starts with the gift of God. Humanism relies on the autonomy of humanity while the bible relies upon the word of God. Humanism is based on 5 senses while the bible is based on the power of God rather than the wisdom of men. The comparisons are many but the point still stand that humanism cannot attack the bible because God gave us all our reasoning abilities and our senses too. All this raises the question that, what is the implication for Christian education. The focus of humanism is somewhat curious as other scientific theories regarding humans learning and behaviour also advocate a strictly materialistic view of human’s beings. The general issue of concern is how humanism affects Christian education and somewhat advocates a strictly materialistic view of human beings. Its focus has been on helping the student become ‘’humanized’’ or ‘’ self-actualized therefore helping the student discover, become and develop his or her real self and full potential. This brings us to what implication humanism has on Christian education. Humanistic approach to learning means a process that is inevitable and unique for every individual. Humanistic approach considers human being as the central part of learning by humanistic approach. Place of the child in teaching-learning: According to this approach student plays a central role in whole teaching-learning process. This approach believes in child-centred-education. This approach, considers that we should first understand the needs, interests, abilities, age level, attitudes, aptitude of students then try to organize teaching learning process according to these. It emphasizes on reach, touch and teaches the child according to his nature, and interests. All teaching material and its process must be related to individual characteristics of students. 2. Emphasis on individuality: According to this approach every individual has his own individuality. Teacher should respect and develop this individuality through education. Individual differences should be respected and internal virtues of individual be developed. Teacher should understand this individuality and organize his/her teaching-learning process according to this individuality. 3. Understanding the child: According to this approach, we should understand the child first of all, and then teach him. We, as a teacher, should know our students, their interest, personality, capabilities and background environment and use teaching methods and content accordingly. Because this approach believes in student centred education so before teaching, a teacher should understand students thoroughly. 4. Method of teaching: In this approach teacher should use methods of teaching which are based on psychological principles. Teacher should not use teacher centeredness and traditional methods of teaching in it. Teacher should emphasize on active learning which could consider the learner. Teacher should use the methods which could teach according to needs, interests, abilities and attitudes of learners. Learners readiness, mental set and motivation are considered as basis for deciding the method of teaching to be used. So teacher should use learner centred innovative methods of teaching. 5. Discipline: Teacher should not force student to be disciplined. He/she should encourage self discipline and self-control among students. Students should be given the responsibility of to be disciplined. 6. Place and role of the teacher: According to this approach student plays a central role in teaching learning process. Teacher acts as a guide, friend or helper of the students. Students should freedom to develop and make progress according to their own pace, needs and interests. Teacher should be considered as the milestone in the journey of total development of the child. Teacher should not force his own methods and views on students but he should be only a guide in this development process. Looking at all this we wrap it all up in a nutshell that the implication or consequence that humanism has on Christian education is that it helps Christian educators become better teachers, educators and facilitator. Having discussed all this we see that we come to a conclusion that humanism is a rational philosophy informed by science, aspired by art, and motivated by compassion. System of values and beliefs that is based on the idea that people are basically good and their problems can be solved using reason instead of religion. We have seen what the general issue of concern is on humanism form a Christian perspective. We have also seen why the understanding of the topic is relevant to Christian education and lastly the implications it has for Christian education. That humanism gives primacy to the study of human needs and interests. Bibliography . (n.d.).. Retrieved, from http://www.mc.mancopu.edu/dept/d46/psy/des/fallas. Anthony, M. J. (2001). Humanism.Evangelical Dictionary of Christian Education(ed,). : Baker Book House Company. Bayer. D.L. (1986).The Teaching and Learning Process. Beihler.R. F. and Snowman. J.(1986). Humanism in the classroom: An Eclectic Approach to Teaching and Learning. Blanshard. Paul.(1978). Humanism versus Orthodoxy. Truth Magazine. Dodgen.D.J., McMinn.M.R.(1986). Journal of Psychology and Theology. Dolio .J. (2000).Symposium on the Bible and Adventist Scholarship( ed.). Dominican Republic: Dominican republic publishers. Gage, N., Berliner, D. (1991).Educational psychology(5 ed.). Boston: Houghton,: Mifflin. Lamont. C. (1982). The Humanistic Altenative. Lefrancois, G. R. ().Psychology for Teaching( ed.). Boston: Houghton, : Wadsworth. Moody. T. (). Humanism And The Bible:Truth Magazine. Louisville, Kentucky/ Rogers.C, Freiberg,H.J. (1994). Freedom to Learn(3rd ed). New York: Macmillan/Merrill. Rogers.C. (1969). Freedom to learn(1st ed.). New York: Macmillan/ Merrill. Faw, W. Harold. (1995). Psychology in a Christian Perspective, an Analysis of Key Issues. Baker Books

History Of The Uae Foreign Policy Politics Essay

History Of The Uae Foreign Policy Politics Essay Since its establishment in 1971, the United Arab Emirates implemented an objective foreign policy based several beliefs including the adoption of dialogue, appreciation of international conventions, commitment to the United Nations Charter , the non-interference of other countrys internal affairs, and the resolution of disputes by peaceful means. One of the core foundations the UAEs foreign policy has been building cooperation-based relations with all countries of the world. These relations have insured a substantial development assistance, which has increased the UAEs importance among recipient states. Most of this foreign aid (in excess of $15 billion) has been to various Arab and Muslim countries. UAE Foreign Policy The UAEs political leadership operates within a foreign policy framework which emphasizes diplomacy, negotiation and a willingness to help those less fortunate. The UAE is attentive of its commitment to its neighbors and the international community with regard to regional peace, stability and security. To achieve these goals, it has purposefully built bridges, partnerships and dialogue, and has emphasized moderation, tolerance and respect for all peoples and religions. Relying on these tools of engagement has allowed the Government to pursue effective, balanced and wide-ranging ties with the international community. One of the central features of the UAEs foreign policy has been the development of closer ties with its neighbors in the Arabian Peninsula through the six-member Gulf Cooperation Council (GCC). The UAE is also a member of the Arab League, the Arab Quartet, the Committee for the Arab Peace Initiative, the Organization of the Petroleum Exporting Countries (OPEC), the Organization of Arab Petroleum Exporting Countries (OAPEC), the Organization of the Islamic Conference (OIC), and many other regional, international and intergovernmental organizations, as well as, the United Nations (UN) and its affiliated bodies. UAEs Foreign Policy and its commitment to the security Arabian Gulf and Peninsula The UAE it continues to press for the preservation of Gulf waters as an open international trade zone and the Strait of Hormuz (a strait between the Sultanate of Oman and Iran) as an open maritime passageway. However, Irans continuing occupation of three UAE islands in the Gulf, Abu Musa and the Greater and Lesser Tunbs, is a source of instability in the region. Although historically governed by the rulers of the emirates of Sharjah and Ras al-Khaimah, they were forcibly occupied by Iran hours before the federation was formed on 2 December 1971. The UAE has consistently rejected the Iranian occupation, demanded the restoration of its full sovereignty and emphasized that all actions and measures taken by the occupying Iranian authorities are illegitimate, and are contrary to international law and to universal norms. Since 1971, Iran has been unwilling to seek a mutually agreeable solution. The UAE, in contrast, has called for a just settlement of this issue, either through direct nego tiation or by referral to the International Court of Justice to settle this dispute in accordance with the principles of the Charter of the United Nations and the provisions of international law. Further afield, in pursuit of regional security, the UAE participated in the GCC attempt to propose an initiative to resolve the ongoing political crisis in Yemen. In 2011, it played a pivotal role in the lead-up to the passing of UN Security Council Resolutions 1970 and 1973 dealing with Libya and within the Libya Contact Group and other forums. The UAE played a stabilizing role during the Bahrain crisis, providing police forces for a GCC-sanctioned plan to bring peace to the island nation and counseling the government and opposition forces to pursue a national strategy for dialogue. More recently, the UAE has condemned the conflict in Syria as heartbreaking pointing out that it exceeds all limits and humanitarian norms and noting with deep concern the escalating acts of violence perpetrated by the Syrian regime against its people, which have stripped the regime of its legitimacy. Moreover, since the Israeli-Hezbollah war of 2006, the UAE has sponsored the rebuilding of hospitals and schools in southern Lebanon. In 2001, it joined over 60 countries in Afghanistan in providing 1300 troops on the ground in a humanitarian, educational and security mission that continues today. Prior to this, the UAE participated in a peacekeeping mission in Kosovo in the 1990s. It is also among the largest contributors of international aid assistance to developing countries. As a small emerging regional and global player, it is clear that the UAE is dealing with challenges on many fronts and at different levels, largely in cooperation with a diversified group of friends and allies in the GCC, the Arab League, the Organization of the Islamic Conference, and the United Nations and its diverse organizations. UAE foreign policy also emphasizes the strong relationship and mutual interests the country has with the United States and other countries, including the United Kingdom, France and South Korea and, although not a member of NATO, the UAE has chosen to join the coalitions Istanbul Cooperation Initiative (ICI). Terrorism is one such global challenge. In this regard, the UAE continues to renew its firm condemnation of all acts of terrorism, illicit trafficking in drugs and arms, and organized crime and reaffirms its resolve to continue cooperating with international and multilateral efforts aimed at total elimination of these activities, which pose a direct threat to international peace and security. In pursuit of this goal, the UAE has announced the establishment of the Centre of Excellence for Countering Violent Extremism in collaboration with several friends and actors, which will begin its work in Abu Dhabi at the end of 2012. Overview of UAEs Foreign relations with the US. The UAEs strategic relationship with the United States dates back to the 1990 invasion of Kuwait. Subsequent to joining the military effort, the two countries signed an agreement in late 1992 allowing for US bases on Emirate soil.[50] July 25, 1994, a formal Defense Cooperation Agreement has been in place.[51] Ten years later, despite publicly opposing the US led war on Iraq, the UAE permitted a minimal amount of US forces to support the operation from the Al Dhafra air base, Jebel Ali, and naval facilities at Fujairah. Enhancing security relations, has been a US arms sale in March 2000 to the Emirates, valued at $8 billion and included over $2 billion worth of weapons, munitions, and services.[52] A nuclear deal was signed between the US and the UAE meant to supply nuclear technology, expertise and fuel. Despite international opposition to neighboring Irans nuclear developments, the US is confident of the UAEs compliance with the Nuclear Non-proliferation Treaty and the International Atomic Energy Agency safeguards to refrain from enriching uranium and extracting plutonium.[53] It firmly believes this agreement has the potential to usher in an era of responsible nuclear-energy development throughout the Middle East.Global Security.org, New U.S.-U.A.E. Deal Raises Eyebrows Amid Concern Over Irans Nuclear Program, January 16, 2009 [54] Commercially, the UAE is also the States largest export market in the Middle East constituting $11.6 billion in exports annually. In March 2005, the US opened negotiations on a free trade agreement and despite recent increasing depreciation of Gulf currencies, the UAE dirham remains pegged to the plunging dollar.[55] The two countries have also maintained close ties through an exchange of cultural and educational partnerships which include the Guggenheim Museum, and a number of American Universities opening campuses in the Emirates.[56] Development of the UAE Foreign policy from 1970 to 2012 The Emirates foreign policy has gone through a dynamic change in recent years. The change is apparently broad and indeed fundamental. It encompasses the very content as well as the style in which the UAE deals with external opportunities and challenges. The relatively small but oil-rich UAE is noticeably more assertive and active regionally and globally than it used to be during the first three decades of its establishment as a federal state on December 2, 1971. During the time of the late founding father and first president of the country, Shaikh Zayed Bin Sultan al Nahyan, UAE foreign policy was predominantly idealistic in its orientation and essentially Arab world-centred. The main drive at the time was limited to preserving the countrys sovereignty and newly-won independence. However, since 2004, a confident and ambitious UAE has been pursuing a more global and palpably a more realistic foreign policy. The dissertation uses a theoretical framework called the Dynamic Process Model, which asserts that the UAE essentially pursues a tripartite foreign policy, namely: identity, security and economy. The Arab world is needed for identity, the West for security and most recently Asia for the economy. However, in the current tripartite foreign policy, the economic leg looms large. Economic interests and not identity, not even security, are the new anchor in this mainly realistic approach to international politics. The growing emphasis on economic interests constitutes a fundamental shift away from the mostly idealistic and humanistic UAE foreign policy of the Shaikh Zayed era with its preoccupation with Arabness. The Arab world is still needed for the identity and affinity, but it is no longer the main focus of the UAEs current foreign policy. The US and the West also remain as indispensable, strategic allies. Yet their importance is increasingly reduced to serve as a security insurance. Asia, on the other hand, is the new centre of interest in the present UAE foreign policy. The UAE, like the rest of the world, is going East to discover China, the second biggest economy in the world, South Korea, the fourth biggest economy in Asia, and all the other Asian tigers. They are the new destinations for economic, energy and security diversification policy. The UAE foreign policy priorities are sensibly changing to accommodate the contemporary global and regional realities. However, external influences aside, the noticeable change in UAE foreign policy is mainly a reflection of the formal and the informal domestic sociopolitical structures of the present state. Unlike the old guardians of UAE foreign policy, the younger elites come strictly from the realist school with emphasis on economics and balance of power as the new anchor for UAE foreign policy today. They are ready to defend the countrys national interests frontally and decisively. They are not shy to pick up the fight when it is needed to defend the countrys vast global investments. Canadas refusal to give the UAE carriers landing rights is a case in point. Another sign of the more confident and assertive post-founding father UAE foreign policy is the UAEs adherence to the strict UN economic sanctions against a characteristically difficult neighbour like Iran. The message coming out of this freshly submitted master dissertation is that the mature and self-assured UAE should not be taken for granted and is no longer the state anyone messes with anymore. The world is well advised to take the UAE more seriously. Over the last five years, the UAEs diplomacy has witnessed a major shift towards relationships with new regions such as South America, Central America, Africa, Central Asia and the Pacific, where a number of embassies and consulates have been opened. Looking to the future, the UAE leadership is committed to ensuring that its foreign policy will continue to be characterized by prudence, support, conciliation and consensus, as well as cooperation with international institutions. At the same time, it is ready to contribute to the defense of the rights of the weak and vulnerable states.

Quantum vs. Classical Mechanics :: essays research papers

Classical and Quantum mechanics are the two main fields of mechanics in physics. Classical mechanics came a few hundred years before Quantum mechanics. Subsequently it is less accurate and less reliable then the more recent mechanic field of Quantum mechanics. Despite being outdated, Classical mechanics can still be used for many everyday problems with bigger and slower moving objects. However, when dealing with extremely fast moving or small subatomic particles a Classical approach will not produce sufficiently accurate results as was the case around the 19th century.   Ã‚  Ã‚  Ã‚  Ã‚  Difficulties with the Classical mechanics theory came right around the 19th century. First was the Ultraviolet Catastrophe. Experimental data when testing blackbody radiation was found to be inconsistent with Classical mechanics. The data showed that as the wavelength of the incoming radiation approaches zero, the amount of energy being radiated also approaches zero, whereas Classical mechanics says the emitted energy is infinite. The second difficulty with the theory was its inability to correctly describe the photoelectric effect. The photoelectric effect says that photons from a surface are released when light hits it. Classical mechanics says that electrons will be emitted from a metal by light waves with any frequency as long as the intensity of the light is strong enough, and even if it is weak over a long enough period of time electrons will eventually be emitted. The theory was proved incorrect after experiments showed that light under certain frequencies did not produce the photoelectric effect on the metal, which meant that the emitting of electrons is related not to intensity but the waves frequency. A new string of mechanics, Quantum mechanics, was created in order to resolve the incompatibilities of Classical Mechanics. A main difference between the two fields of mechanics is the make up of the atom. In Quantum mechanics electrons in an atom are outside of the nucleus in specific orbitals around the nucleus that they can jump from one to another only when a specific energy level is reached, and can never be in-between the specific orbitals. Also Quantum mechanics says that a photon is released only when an electron jumps from a higher energy level to a lower energy level, or a higher energy orbital to a lower energy orbital. Classical mechanics, contradicting this, says that an atom is constantly emitting radiation. Quantum mechanics describes light as both a wave and a particle, depending on the situation.

Essay --

Witness, A Classic Novel Witness, a Newbery Medal awarded novel, was one of the many novels created by Karen Hesse, a wonderful author who has taught kids and children about the past, has made a very interesting book about life that exists on a foundation of segregation and hatred. Racism as we all know it is very disturbing, annoying, and is not tolerable. This story is based on life on a foundation of segregation and dangers of racism. This one novel is placed in a small, under-populated city of Vermont, where a family of three, the Sutters, another family of 3, the Hirsch's with a caring person, named Sara Chickering, and some people face many problems and solutions in their lives. As racism continues on to thrive in the town, Esther Hirsh, becomes a young girl who also faces discrimination only because she was a Jewish. In the same school as Esther, was a young African-American girl named Leonora who faces bully about almost every day, and everywhere, just because of her race. Her family is very well in poverty, and her mother is badly sick. She died later that month. In one quote,†Why can’t white folks leave me alone?†(P7), explains how excruciating racism was. As the storyline progresses into the center of the story, Leonora saves Esther from a passenger train, everybody knows it as the â€Å"Heaven Train.† Esther wanted to meet her mother on the train who died when she was just a tiny little young girl, perhaps at the age of four or five. Leonora understood her but she didn’t want her to go because Esther was perhaps her only best friend. Back in the transition from the beginning of the story, Esther also saved Leonora’s life from the chilling winter cold. Sara Chickering, the caretaker of Esther, fina... ... the bridge to convince Johnny to get back down. â€Å"I’m afraid of the Klan,† he said. Then he surprisingly†¦ just jumped. All these scenes were all real, it all happened from 1920-1927. Karen witnessed a lot of horrors, but also some happiness. She did that by just simply writing books, novels and poetry. She mostly writes her novels in poetic form, what everybody does not usually do. This book inspired me and a lot to perhaps write a lot about the past, and admire and appreciate the present and what will happen in the future. It also taught me many lessons about the important things, like the history of the KKK and what they did, also the history of segregation and how this country was broken up into pieces and how they were sawn back together. So this book is a very useful tool in learning and understanding and should be brought down from generation to generation...

Experimental and Quasi-Experimental Design Essay -- Research Analysis

Experimental and Quasi-Experimental Design There are basically two main categories of measuring variables with a sample of participants or subjects: experimental and quasi-experimental. According to (Hopkins, 2008), research studies can be carried out using body tissues, cells, animals or humans. The researcher is looking for a relationship between the variables, and this can be accomplished using statistics, relative frequencies, and/or correlations (Hopkins, 2008). One can accomplish this by simply observing without influencing, manipulating, or controlling the environment or interaction. One can observe and explore one subject, or one can compare one subject with another (Hopkins, 2008). Experimental Study The goal of this study is to discover whether the intervention of using relaxing music has can impact the emotional state. The hypothesis of this study asks to what extent does listening or not listening to music before a test decrease test-taking anxiety in middle school students? The second hypothesis is to what extent does listening or not listening to music increase test scores in middle school students? If the hypotheses are supported, then the students will not only state a decrease in physical and emotional symptoms of anxiety, but will score higher than the average of their prior three tests. This means that a decrease in anxiety will occur after the intervention, and a decrease in anxiety will produce a higher score. Having one variable decrease and the other increase is known as a negative correlation (Cozby and Bates, 2012). This means that there is a relationship between the two variables. Of course, this must be not only proven by statistical ev... ...e Research. Association of Operating Room Nurses Journal, 90, 543-551. doi:200698620 Blankinship, D. G. (2011, January 13). Testing anxiety: Researchers find solution to help students cope. Huffington Post Education. Retrieved from http://www.huffingtonpost.com/2011/0114/testing-anxiety-research_n_809221.html Cozby, P. C., & Bates, S. C. (2012). Methods in behavioral research (11th ed.). New York, N.Y.: McGraw Hill. Fiske, S. T. (2010). Social Beings: Core Motives in Social Psychology (2nd ed.). Hoboken, N.J.: John Wiley & Sons, Inc. Hopkins, W. G. (2008). Quantitative research design. Sportscience, 4(1). Retrieved from http://www.mendeley.com/research/quantitative-research-design-5/ Smith, R. A., & Davis, S. F. (2007). The psychologist as detective: An introduction to conducting research in psychology (4th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.

Proposing a solution for global warming

INTRODUCTION.The occurrence of increased average temperature in the earth’s surface air and water bodies in the recent decades and its projected continuation constitutes global warming.  These increments in temperatures are due to higher amounts of green gas concentrations, which warm the surface and lower atmosphere thereby increasing the green house effects  On the other hand, natural phenomena such as volcanoes and solar variation have also impacted on global warming(1).Increased global temperatures results into other changes such as sea level rise, changes in precipitation patterns that result in floods, droughts and glacier retreat. These adverse effects of global warming have sparked off serious debate especially after Intergovernmental Panel on Climatic change (IPCC) projected climatic models that global surface temperatures are likely to increase to 6.40C (2.0 TO 110F) between 1990 and 2100.(2)The debate focuses on world scale regarding, what, if any, action should be taken to adapt to expected consequences or reduce future warming.  There is however a general agreement that affirmative action should be taken to avert further crisis.(3) To this effect, most governments have signed and ratified the Kyoto Protocol aimed at reducing the green gas emissions, which cause global warming.The major challenge to this process is that industrialized nations who are the major contributors of green house gases such as America are reluctant to make this worthy commitment(4).  The main aim of Kyoto protocol is to reduce â€Å"Anthropogenic Climatic Change†(Human induced changes).It is believed that implementation of the Kyoto protocol will plummet these climatic changes. However, thermal inertia of the earth’s ocean and slow responses of other indirect effects would still cause further warming but at drastically reduced levels that are not very harmful (at 0.90f) as indicated by climatic changes studies.(5) The scientific consensus indicat es levels of green house gases due to human activity.In 1824, Joseph Fourier discovered the green gas effect, and Svante Arrhenius investigated it quantitatively in 1896.Green house effect is the process by which absorption and emission by infrared radiation by atmospheric gases warms a planet’s atmosphere and its surface(6). The green house gases include natural ones such as water vapor, carbondioxide, methane, ozone and nitrous oxide. Atmospheric concentrations of carbon and methane have increased by 31% and 149% above pre-industrial revolution times since 1970.This occurrence has been attributed to fossil fuel burning and other anthropogenic causes such as deforestation.(7)Further, carbon dioxide levels are expected to increase due to ongoing fossil fuel burning processes around the globe. And land use change. This will depend on uncertain economic, technological and natural developments.(8)IPCC projected increase of methane from melting permafrost peat bogs in Siberia may lead to significant additional sources of green gas emissions.(9)  Thus, the effect of global warming including sea level rise, extreme weather events, stream flows, and change in rainfall patterns, increased deaths, displacements and increased economic losses projected due to extreme weather may even be exacerbated by increased population densities.(10) There is also expected reduction of ozone layer, intensity and frequency of hurricanes and worse, spread of diseases such as malaria and other epidemiological related ailments.A typical example is the current heavy rains experienced in Britain, which scientists have attributed to be, and effect of global warming.(11) The scientists, lead by Peter Stott at Hadley center, have used computer models in finding evidence to predict the course of global warming which all show heavy rainfall as it is documented in the local daily, The Independent. The effects of these rains have been disastrous with many Britons fleeing their homes.(12)B ritain is currently making headlines in the world media; only because of the destructive results its citizens are experiencing from the heavy rains. The new Prime Minister called a crisis meeting with the top leadership of his government in response to this crisis.(13)  The rains have left many Britons desperate and in dire need of humanitarian assistance. Droughts attributed to global warming currents witnessed in several parts of the world such as Sub-Saharan Africa has left their citizens in famine and utter penury,(14) malnourished only to depend on aid. Surely the world cannot continue like this, it is only prudent, affirmative action is taken to avert this situationTHE   Ã‚  SOLUTIONS.Just as it is called Global warming, it needs global solution, which calls for nothing other than global input. Participation of the whole globe is necessary without exclusion of any particular state or individual.  Efficiency in the use of energy (Use of renewable energy) is a major step t o reduce global warming to reduce dependenc4 on oil and other fossil fuels that cause global warming. Currently, over 70% of USA electricity comes from fossil fuels such as coal, natural gas and oil in contrast to only 2% from renewable energy sources(15). We should therefore focus on sources such as wind, solar, georthermal and bioenergy to generate our electricity instead of fossil fuel sources that increase global warming emissions.It is indeed true that these measures need radical step. Fortunately, we have the solutions, and the energy to implement them(16). What we lack is the will. The steps we make will in most cases save consumer’s money. Radical measures include total overhaul of our practices, where instead of Deforestration, we should plant trees in bare lands. Deforestation accounts for 20% of global warming. We should therefore protect threatened forests(17).  Most scientists believe postponing these measures would require much more input once severe consequen ces occur than if we had implemented them today.Pollution of the atmosphere needs to stop forthwill, it will become an irreversible damage and we had better stopped the practice. Carboon dioxide remains in the atmosphere for about 100 years.(18) Pollution practice would require more duration to reverse its effects on global warming, we better prevent this. Waste damping particularly in water bodies such as rivers needs to be addressed to avoid decomposition and subsequent release of carbon dioxide that would increase the green house effect in the atmosphere.(19)We must also strive to reduce the production of Chlorofluorocarbons that are powerful green house gases and ozone depleters .(20) For such a radical course, legislation control from the central government in different democracies and even globally is apparent. However, individual citizens must institute in themselves the required environmental standards to make it their own initiative to act on this end. For instance it would be wiser to use a push mower to cut your lawn instead of a power mower(21). Or have a low water-use machine. It is also wise to reduce the water heater thermostat heating degree. Buying energy efficient compact fluorescent bulbs for most used lights in the house is also important.A solar water heater system instead of electric or other fuel use is wiser move. In addition, an individual should drive a fuel-efficient car or a new hybrid gasoline electric vehicle. Insulating homes, installing energy efficient showerheads and even tuning up of the furnace are some of the basic steps individuals should implement to reduce global warming(22). Wise and committed person (not necessarily an environmentalist) should also contact his or her utility company for a home energy audit check for poor insulations or energy-inefficient places in the home.Other credible moves to reduce global warming by individuals include wrapping up the heater in an insulating jacket. Workers should also consider le aving their cars at home for some days and then walking to work or alternatively using public means of transport. Recycling of wastes newsprint, cardboard, glass and metals are also better alternatives to using non-renewable that emit green gases after use.(23) People should also consider buying food and other products with less packaging or reusable packaging instead of those in non-recyclable packaging.I believe most measures outlined above are but mere common sence, very achievable if we introduce discipline amongst ourselves.(24) Drastic reduction of global warming will have much more benefits that would outweigh possible risks involved in its implementation. We as humans must entitle ourselves to tackle the anthropogenic causes of global warming to treat the world we live in(25).The world’s leading scientific authority on global warming documents that the warming of the last 50 years has been due to anthropogenic (human caused) green house gases. The panel, after monitor ing current trend of human approach to the envoiroment, further says the rise could be by 50C this century.(26) This would represent twice the entire warming after the last ice age 12000 years ago and it would take place in 100 years. Shocking!More confirmation to human destructive trends on the atmosphere were detailed in the recent statement by the American Geophysical Union that there is no known geological precedent for the transfer of Carbon from the Earth crust to the atmospheric carbon dioxide. Inequalities comparable to the burning of fossil fuels, without simultaneous changes in other parts of the carbon cycle and climate system( 27).We must therefore strive to achieve our aim through all means including institutionalization of global warming reduction programs such as developing systems to clean our electric power plants, currently using coal to produce electricity. This should be converted into plants that burn cleaner natural gas.(27) In addition, harnessing clean, abund ant energy of the sun and wind is a viable measure to solving the global warming problem.  We have what it takes to make the globe a better place to live in.EXECUTIVE SUMMARYThe havoc global warming has caused the earth is perhaps the greatest. From its effects such as floods, droughts we have seen, read and understood the implications of destroying our atmosphere.(28) Millions of lives have been lost through its related effects.  Implementation of the possible solutions outlined in this essay, provides the framework for improving our livelihood in the globe.  For this worthy course, every single individual or nation on the globe must play an active role through involvement in the pragmatic measures aimed at alleviating global warming from the world.This should be done today.REFERENCES 1,2,3 .Revkin, Andrew C, Rise in Gases Unmatched by a history in ancient ice, The New York times, 2005-11-054-9Tans, Peter, Trends in Atmospheric carbon dioxide, Mauna Loa.National oceanicand At mospheric Administration.10-14Hansen, James; et al (2006-09-26) Global temperature ChangePNAS 103 14288-1429315-23Purse, Betham V, Philips (Feb 2005) Climate change and the recent emergence of bluetongue in Europe (2) 171-18124-28Harte, John, et al, Shifts in Plant Dominance Control Carbon Cycle Response To Experimental Warming and widespread drought environmental research letters

Jason and the Argonauts

JASON AND THE ARGONAUTS The Early Years Jason was the son of the lawful king of Iolcus, but his uncle Pelias had usurped the throne. Pelias lived in constant fear of losing what he had taken so unjustly. He kept Jason's father a prisoner and would certainly have murdered Jason at birth. But Jason's mother deceived Pelias by mourning as if Jason had died. Meanwhile the infant was bundled off to the wilderness cave of Chiron the Centaur. Chiron tutored Jason in the lore of plants, the hunt and the civilized arts.When he had come of age, Jason set out like a proper hero to claim his rightful throne. The First Test Unknowingly, Jason was to play his part in a plan hatched on lofty Mount Olympus. Hera, wife of almighty Zeus himself, nursed a rage against King Pelias. For Jason's uncle, the usurper king, had honored all the gods but Hera. Rashly had he begrudged the Queen of Heaven her due. Hera's plan was fraught with danger; it would require a true hero. To test Jason's mettle, she contr ived it that he came to a raging torrent on his way to Iolcus. And on the bank was a withered old woman.Would Jason go about his business impatiently, or would he give way to her request to be ferried across the stream? The Oracle's Warning Jason did not think twice. Taking the crone on his back, he set off into the current. And halfway across he began to stagger under her unexpected weight. For the old woman was none other than Hera in disguise. Some say that she revealed herself to Jason on the far shore; others claim that he never learned of the divine service he'd performed. Jason had lost a sandal in the swift-moving stream, and this would prove significant.For an oracle had warned King Pelias, â€Å"Beware a stranger who wears but a single sandal. † When Jason arrived in Iolcus, he asserted his claim to the throne. But his uncle Pelias had no intention of giving it up, particularly to a one-shoed stranger. The Challenge Under the guise of hospitality, he invited Jason t o a banquet. And during the course of the meal, he engaged him in conversation. â€Å"You say you've got what it takes to rule a kingdom,† said Pelias. â€Å"May I take it that you're fit to deal with any thorny problems that arise?For example, how would you go about getting rid of someone who was giving you difficulties? † Jason considered for a moment, eager to show a kingly knack for problem solving. â€Å"Send him after the Golden Fleece? † he suggested. â€Å"Not a bad idea,† responded Pelias. â€Å"It's just the sort of quest that any hero worth his salt would leap at. Why, if he succeeded he'd be remembered down through the ages. Tell you what, why don't you go? † The Argonauts And so it came to pass that word went out the length and breadth of Greece that Jason was looking for shipmates to embark upon a perilous but glamorous adventure.And in spite of the miniscule chances of anyone surviving to lay eyes upon the Fleece let alone get past t he guarding dragon and return with the prize, large numbers of heroes were ready to run the risk. These were known as the Argonauts, after their ship, the Argo. Among them were Hercules (or Heracles, to give him his proper Greek name) and the heroine Atalanta. Jason had the vessel constructed by the worthy shipwright Argus, who in a fit of vanity named her more or less after himself. The Adventure BeginsArgus had divine sponsorship in his task, Hera having enlisted the aid of her fellow goddess Athena. This patroness of crafts secured a prow for the vessel from timber hewn at the sacred grove of Zeus at Dodona. This prow had the magical property of speaking – and prophesying – in a human voice. And so one bright autumn morning the Argo set out to sea, her benches crewed by lusty ranks of heroic rowers. And true to Pelias's fondest aspirations, it wasn't long before big troubles assailed the company.After stopping for better than a fortnight on an island populated exclu sively by women, they put in at Salmydessus. The Harpies The king welcomed them but was in no mood for festive entertainment. Because he'd offended the gods, he'd been set upon by woman-headed, bird-bodied, razor-clawed scourges known as Harpies. These Harpies were possessed of reprehensible table manners. Every evening at dinnertime, they dropped by to defecate upon the king's repast and hung around making such a racket that he wouldn't have been able to eat had he the stomach for it.As a result, King Phineus grew thinner by the hour. Fortunately two of Jason's crew were direct descendants of the North Wind, which gave them the power to fly. And they kindly chased the Harpies so far away that the king was never bothered again. The Clashing Rocks In thanks, Phineus informed the Argonauts of a danger just ahead on the route to the Golden Fleece – two rocks called the Symplegades, which crashed together upon any ship passing between them. The king even suggested a mechanism by which one might avoid the effects of these Clashing Rocks.If a bird could be induced to pass between the crags first, causing them to clash together, the Argo could follow quickly behind, passing through safely before they were ready to snap shut again. By means of this device, Jason caused the rocks to spring together prematurely, nipping only the tail feathers of the bird. The Argo was able to pass between them relatively unscathed. Only her very stern was splintered. The Flying Ram Once arrived in Colchis, Jason had to face a series of challenges meted out by King Aeetes, ruler of this barbarian kingdom on the far edge of the heroic world.He and his people were not kindly disposed toward strangers, although on an earlier occasion he had extended hospitality to a visitor from Jason's home town. This may have been due to the newcomer's unorthodox mode of transportation. For he arrived on the back of a golden-fleeced flying ram. The stranger's name was Phrixus, and he had been on th e point of being sacrificed when the ram carried him off. Having arrived safely in Colchis, he sacrificed the ram to the gods and hung its fleece in a grove. Aeetes gave him the hand of one of his daughters in marriage.Medea King Aeetes had taken a disliking to Jason on sight. He had no particular fondness for handsome young strangers who came traipsing into his kingdom on glorious quests featuring the trampling of his sacred grove and the carrying off of his personal property. For King Aeetes considered the Golden Fleece to be his own, and he was in the midst of telling Jason just what he could do with his precious quest when he was reminded of the obligations of hospitality by another of his daughters named Medea. Medea was motivated by more than good manners.For Hera had been looking out for Jason's interests, and she had succeeded in persuading her fellow goddess Aphrodite to intervene on Jason's behalf. A Farmyard Chore It was no problem at all for the Goddess of Love to arrang e that Medea be stricken with passion for Jason the moment she first saw him. And it was a good thing for Jason that this was so. For not only was he spared a kingly tongue-lashing and a quick trip to the frontier, but Medea quietly offered to help him in his latest predicament. For once her father had calmed down, he had waxed suspiciously reasonable.Of course Jason could have the Fleece and anything else he required in furtherance of his quest – Aeetes couldn't imagine what had possessed him to be so uncooperative. All he required of Jason as a simple token of good faith was the merest of farmyard chores. The Fire-Breathing Bulls There were two bulls standing in the adjacent pasture. If Jason would be so kind as to harness them, plow the field, sow it and reap the harvest in a single day, King Aeetes would be much obliged – and only too happy to turn over the Golden Fleece. Oh, and there was one trifling detail of which Jason should be aware.These bulls were a bit un usual in that their feet were made of brass sharp enough to rip open a man from gullet to gizzard. And then of course there was the matter of their bad breath. In point of fact, they breathed flames. Along about this juncture Jason thought he heard his mommy, Queen Polymede, calling. But then, as noted, Medea took him gently aside and suggested that she might be of aid. Plowing and Sowing Quite conveniently for Jason, Medea was a famous sorceress, magic potions being her stock in trade. She slipped Jason a salve which, when smeared on his body, made him proof against fire and brazen hooves.And so it was that Jason boldly approached the bulls and brooked no bullish insolence. Disregarding the flames that played merrily about his shoulders and steering clear of the hooves, he forced the creatures into harness and set about plowing the field. Nor was the subsequent sowing any great chore for the now-heartened hero. Gaily strewing seed about like a nymph flinging flowers in springtime, he did not stop to note the unusual nature of the seed. The Dragon's Teeth Aeetes, it turns out, had got his hands on some dragon's teeth with unique agricultural properties.As soon as these hit the soil they began to sprout, which was good from the point of view of Jason accomplishing his task by nightfall, but bad in terms of the harvest. For each seed germinated into a fully-armed warrior, who popped up from the ground and joined the throng now menacing poor Jason. Aeetes, meanwhile, was standing off to the side of the field chuckling quietly to himself. It irked the king somewhat to see his daughter slink across the furrows to Jason's side, but he didn't think too much of it at the time. Having proven herself polite to a fault, maybe Medea was just saying a brief and proper farewell.Conquest of the Seed Men In actuality, she was once more engaged in saving the young hero's posterior. This time there was no traffic in magic embrocations. Medea merely gave Jason a tip in basic psy chology. Jason, who it was quite clear by now lacked the heroic wherewithal to make the grade on his own, at least had the sense to recognize good advice. Employing the simple device suggested by Medea, he brought the harvest in on deadline with a minimum of personal effort. He simply threw a stone at one of the men. The man, in turn, thought his neighbor had done it.And in short order all the seed men had turned on one another with their swords until not one was left standing. The Golden Fleece Aeetes had no choice but to make as though he'd give the Fleece to Jason, but he still had no intention of doing so. He now committed the tactical error of divulging this fact to his daughter. And Medea, still entranced by the Goddess of Love, confided in turn in Jason. Furthermore, she offered to lead him under cover of darkness to the temple grove where the Fleece was displayed, nailed to a tree and guarded by a dragon. And so at midnight they crept into the sacred precinct of Ares, god of war.Jason, ever the hothead, whipped out his sword, but Medea wisely restrained his impetuosity. The Aftermath Instead, she used a sleeping potion to subvert the monster's vigilance. Together they made off with the Fleece and escaped to the Argo. Setting sail at once, they eluded pursuit. Thus Jason succeeded in his heroic challenge. And once returned to Greece, he abandoned Medea for another princess. For though Jason had sworn to love and honor Medea for the service she had done him, he proved as fickle in this regard as he'd been unfit for single-handed questing

Banking Concepts and Practices

XITE, Gamharia Banking Concepts & Practice [Paper 11: Elective II, Academic Session 2011-12] 1. Evolution of Banking: Bank-Meaning, Definition, Features & Classification, Concept of Different Types of Banking System, Overview of Indian Banking System 2. Commercial Bank: Basic Concept of Commercial bank, Role of Commercial bank in Financial System, Credit Control by Central Bank 3. Central Bank: Meaning, Functions, Methods of Credit Control 4. Monetary Policy: Meaning, Objectives and Instruments 5. Customer Relationship: Definition, Features of Contractual Customer Relation, Customer Orientation, Retail Banking 6. E-Banking: Concept, ATM, Core Banking, Virtual Banking, Electronic Payment System Reference Books: 1. Banking Law and Practice- P. N. Varshney 2. Indian Banking- P. Parameswaran & S. Natarajan 3. Money, Banking & International Trade- M. C. Vaish 4. Banking Concepts & Practices- Shekhar & Shekhar 5. Banking Concepts & Practices- Canon Notes prepared by: Fr. Alex Mascarenhas SJ, Loyola Nivas, H-15, St Mile Road, Sakchi, Jamshedpur 831 001 INDEX | | |EVOLUTION OF BANKING |NEGOTIABLE INSTRUMENT | |MEANING OF BANKING |BILL OF EXCHANGE | |CLASSIFICATION OF BANKS |PROMISSORY NOTE | |SYSTEMS OF BANKING |CHEQUE | | |CROSSING & ENDORSEMENT | |INDIAN BANKING: PROFILE | | |INDIGENOUS SYSTEM |BANKING PRACTICE | |MODERN FINANCIAL SYSTEMS |BANK ACCOUNTS | |CHANGING PROFILE |TIME DEPOSITS | |CHALLENGES AHEAD |LOANS & ADVANCES | | |CHARGE CREATION | |COMMERCIAL BANK |TYPES OF SECURITIES | |FEATURES |BILLS COLLECTION | |ROLE IN FINANCIAL SYSTEM |PAYING BANK | |MULTIPLE CREDIT CREATION |COLLECTING BANK | | |GRIVANCE REDRESSAL | |CENTRAL BANK | | |CONCEPT & MEANING RETAIL BANKING | |FUNCTIONS | | |RESERVE BANK OF INDIA |BANKING SERVICES | |NEW TRENDS IN CENTRAL BANKING | | | |ANCILLARY SERVICES | |MONETARY POLICY | | |MEANING |E-BANKING | |OBJECTIVES | | |INSTRUMENTS |CONCEPT EVOLUTION | |TYPES OF MONETARY POLICIES |CORE BANKING | |RBI MONETARY POLICY |VIRTUAL BANKING | |LIMITATIONS |E-PAYMENTS | | |MERITS & DEMERITS | |CUSTOMER RELATION | | |MEANING |APPENDIX | |NATURE OF RELATIONSHIP |MUTUAL FUNDS | |FEATURES |BANK NATIONALIZATION | |CUSTOMER ORIENTATION | | EVOLUTION OF BANKING A. MEANING OF BANKING: Banking was first associated only with the lending activity. The idea of accepting deposits from the public in order to lend it to others on credit developed much later. Modern banks have gone way beyond traditional banking and have added fee based financial as well as ancillary services to banking which are very much within the limits of their expertise. A1. DEFINITION: Dictionary gives multiple meanings of a BANK- †¢ It is a heap or storage of goods. †¢ It is the shallow edge of the sea. †¢ It is the raised edge of a river or a road. †¢ It is a blockage of sandbags to a flow of water. Though none of these explanations speak directly about financial dealings, all of them give a common meaning that it is a sort of CUSHION provided to PROTECT something. Hence, there can be a grain bank, a blood bank, a sperm bank, a question bank, a river bank, money bank, etc. The exact origin of the word bank is not certain. Some trace its origin to German word ‘Banck’ which means heap or mound, others trace it to Italian word ‘Banco’ which means heap of money while some others trace it to the French word ‘Banque’ which means a bench for keeping things. Jewish bankers and money changers transacted their business of lending and exchanging money on benches in the marketplace in Lombardy and so the bench became the banking counter. Bible has a reference to money changers who were transacting business on their benches inside the Jewish temple and Jesus throws their benches and scatters them. If a banker failed by losing all his money, his bench was broken up by the people which gave birth to the word ‘bankrupt’ Monetary banks derive their meaning from all the above concepts. They provide facility to the customers to ‘store’ their wealth and give ‘protection’ to it and in the mean time they lend it to others to ‘gain’ some returns. †¢ According to Kent, â€Å"bank is an organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. †¢ According to Crowther, â€Å"bank is one that collects money from those who have it to spare or who are saving it out of their incomes and lends the money so collected to those who require it. † †¢ According to Hart, â€Å"banker is one who in the ordinary course of business honors cheques drawn upon him by persons from and for whom he receives money on current accounts. † †¢ According to John Paget, â€Å"no person or body corporate otherwise can be a banker who does not take deposit, does not take current accounts, does not issue and pay cheques and does not collect cheques for his customers. † All these definitions have described the meaning of a bank but have not given a precise definition. Banking Regulation Act of 1949 u/s 5(1) has given the meaning of banking as follows- â€Å"Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque. † Hence, bank in the technical sense can be defined as â€Å"an institution that accepts refundable deposits for lending or investing. † The concept of offering fee based services has no direct connection to traditional banking; it evolved much later due to the financial expertise available with the banks. A2. HISTORY OF BANKING: The concept of banking is as old as the authentic history of humanity. ANCIENT WORLD: The system was started by the Babylonians before 2000 BC. The practice of granting credit was widely prevalent in ancient Greece and Rome. Credit by compensation and by transfer orders is traced to Assyria, Phoenicia and Egypt even before its development in Greece and Rome. EUROPE: Many European countries established public banks either for facilitating commerce or to serve the government. Begun as an office for transfer of public debt, The Bank of Venice [1157] is the most ancient bank. The Bank of Amsterdam was established in 1609 to meet the needs of the merchants of the city. It accepted all kinds of specie deposits to be withdrawn or transferred to another account later using a certificate valid for six months. These written orders in the course of time got transformed into modern day cheques. ENGLAND: English banking began with the London Goldsmiths who accepted customer’s valuables for safe custody and issued ‘payable to bearer’ receipts which in course of time enjoyed considerable circulation. Actual growth of private commercial banking began with the establishment of Bank of England in 1694. INDIA: The first reference to banking in India is found in the book ‘Arthashastra’ by Chanakya in the year 300 BC. He mentions about guilds of merchant bankers who received deposits and advanced loans. The traditional indigenous bankers and money lenders were active in India since time immemorial. The first bank in today’s understanding to be established in India was Bank of Hindustan in 1770. Unfortunately it failed subsequently. Presidency Bank established in 1806 which then became Imperial Bank and finally State Bank of India is the first successful bank in India. Co-operative credit banks started playing significant role since II world war. A3. FEATURES OF A BANK: Features of a bank are the services they offer to their customers. Traditional banks have just two features: accepting deposits and lending money on credit. Modern banks have introduced a third feature of fee based services. A3a. DEPOSITS are basically of two types- Demand deposits & Time Deposits. Demand deposits are in the form of running accounts like Savings Bank A/c, NRE A/c, Current A/c and Overdraft A/c depositing or withdrawing money without any advance notice. On Savings Bank A/c and NRE a/c banks offer interest on the balance amount where as for an overdraft a/c they charge interest on the money overdrawn. Current A/c and the credit balance in Overdraft A/c fetch no interest to the account holders. All these accounts will have cheque book and passbook facility. Now one can do banking transactions from the comforts of ones own office or room or while traveling even without entering the bank premises, pay bills anywhere and anytime and draw cash from ATM day and night and even during holidays through e-banking. Time deposits are always accepted to mature on a due date. Banks give interest on time deposit. Longer time deposits usually [but not necessarily] fetch higher interest. All banks allow pre-maturity withdrawals of time deposits and give whatever interest is applicable for the duration the deposit was with the bank with or without a penalty interest for pre-maturity withdrawal. A3b. CREDITS can be further sub-grouped duration-wise or security-wise: Duration-wise credits can be short term for less than a year or medium term for one to three years or long term for beyond three years. Banks usually prefer short term credits as they give better liquidity. Long term credits are usually given for capital requirements. Customers are charged interest on credit which is little higher than the interest banks give on deposit. Security-wise credit may be secured, partially secured or clean. When credit is given against a collateral tradable security of at least equal value it is termed as secured credit. If the securities offered against the credit do not cover the credit amount completely then it is partially secured credit. If personal guarantees are offered instead of any tradable securities, it is a clean credit. Banks usually prefer secured credit to ensure the capital safety. A3c. FEE BASED SERVICES may or may not be linked directly to banking activities. These features are unique to commercial banks and are on offer because of the expertise they have and also because their primary aim is profit. Cooperative banks usually do not offer such services except cheque book and bill collection facility. Some of the fee based services offered by them are- Financial Services are those involving money through the customer’s accounts like Cheque, Bill Pay, Bill Collection, Debit Card, Fund Transfer, etc. Free availability of sufficient funds in the account is pre-condition for these services. †¢ Utility Services are those financial services which are provided by the bank to th e general public even without having an account in the bank like Foreign exchange, Bank Pay Order, Bank Drafts, Traveler Cheque, etc. Funds and the bank charges have to be provided at the time of availing these services. †¢ Agency/Fiduciary Services are those services in which the bank acts like an agent/trustee on behalf of its customers like Letter of Credit, Bank Guarantee, Originator/ Underwriter of Capital Issues, Safe Deposit Locker, Safe Custody, etc. Investment Services are those agency services where bank guides the customers in making investments outside the bank for higher returns like D-Mat A/c, Brokerage and Advisory Service. B. CLASSIFICATION OF BANKS: There are various types of banks depending on the purposes of their businesses. But such a classification may or may not be exclusive since some overlapping is always possible- B1. COMMERCIAL BANKS by their very name mean business and so perform all kinds of banking functions such as accepting deposits, advancing cr edits, offering fee based ancillary services including foreign exchange and foreign currency remittances. They are organized in the manner of joint stock companies. Their main aim is to maximize profit from their banking business. Hence, they have expanded their network through branches wherever there is a possibility of better banking business. In many developing countries like India, commercial banks are obliged to contribute to the economic growth of the country through various regulations of the regulatory authorities. These banks may be govt. owned, public sector or private sector or even foreign banks. Private sector and foreign banks vie with each other in providing personalized services in order to expand business. B2. FOREIGN EXCHANGE BANKS are specialized in foreign exchange and financing foreign trade in addition to the normal banking services. They also offer other information collecting services to their customers on foreign trade prospects, foreign agents, and foreign collaborators and provide foreign currency remittance facilities. Foreign exchange banks usually have their head offices outside the country. Their branch network is usually bare minimum; restricted only to big urban centers with great potential for foreign exchange business. B3. INDUSTRIAL BANKS are also known as development banks and are specialized in providing long term loans to industries for the purchase of assets. They are usually not into ordinary banking services; they basically underwrite shares and debentures of industries and also subscribe to them. Some of the industrial banks are- Industrial Finance Corporation of India-IFCI, Industrial Development bank of India-IDBI, Industrial Credit & Investment Corporation of India-ICICI [now merged with ICICI Bank Ltd. ] and Small Industries Development Bank of India-SIDBI. These are more of finance companies set up by government than banks. B4. AGRICULTURAL BANKS like State Cooperative Banks-SCB, District Central Cooperative Banks-DCCB, State Cooperative Agricultural & Rural Development Banks-SCARDB, Primary Cooperative Agricultural & Rural Development Banks-PCARDB and Regional Rural Banks-RRB provide all types of agricultural credits to the farmers for their short term, medium term and long term agricultural needs. They also offer limited ordinary banking services that are required by the farmers. Land Development Bank of India-LDBI gives long term loans on mortgage of agricultural land and National Bank of Agriculture & Rural Development-NABARD gives refinance to other institutions which give direct agricultural loans to the farmers. Both these banks do not provide retail banking services. B5. COOPERATIVE BANKS work on the principle of cooperation among a group of shareholding members usually confined to a small geographical locality and the purpose of their cooperation. Their activities are largely restricted to their own members. They do not come under the strict regulatory controls of Central Bank since they are separately covered under Cooperative Societies Act. But they do have regulatory norms to satisfy, though not of the same level as that of the commercial banks. Cooperative banks are basically of two types- Urban Cooperative Banks that cater to the needs of urban population and †¢ Rural Cooperative Banks which cater to the needs of the rural population. B6. SAV INGS BANKS promote small savings and mobilization of resources. They may not lend on credit; they may invest the entire sum to produce returns enough to pay good interest to their deposit holders. They are very successful in Japan, Germany and India. Post Office Savings Bank, Employee Provident Fund and Public Provident Fund are some examples of Savings Banks. B7. INVESTMENT BANKS are financial organizations which assist business houses to raise funds for their long term capital requirements from the market hrough the sale of their shares and bonds. Hence, they certainly conduct other ordinary banking business in order to collect funds for their business. These banks act basically as middlemen or agents. They function in two ways- †¢ Originator- They act as originators of the capital issue by bringing out the new issue and managing it until the shares are finally allotted for a fee for the services provided by them. They have nothing to do with the gain or loss of the capital i ssue which goes directly to the company. †¢ Underwriter- They under-write the entire capital issue for a mutually agreed price and re-issue the shares to the public for the market price. The entire gain or loss made in the process is the gain or loss of the bank and not of the issuing company. Commercial Banks are also eager to provide investment banking facilities since these are basically wholesale banking activities with definite sources of large gain in a short span of time with or without committing one’s own funds. B8. MERCHANT BANK is a loosely used term. Some merchant banks may neither be a merchant nor a bank. Merchant banks mainly deal with corporate financial advice such as share issue, capital re-construction, mergers and acquisitions. Merchant banks also accept deposits and are involved both in money market operations and foreign exchange dealings. They also manage funds on behalf of their clients. B9. CENTRAL BANK is not a commercial bank; it is the apex bank of a country which controls nation’s monetary and banking structures, like Reserve Bank of India. It is owned by the central government in most of the countries but not necessarily always. For example, in USA it is owned collectively by the member banks. Central banks work in the national interest in developing the nation’s economy. Central bank does not deal with ordinary banking activities. It issues and regulates currency, provides banking services only to the central government, the state governments and the member banks, keeps cash reserves of the member banks, holds gold reserves of the country and nation’s forex reserves, acts as clearing house and acts as a lender of last resort. C. SYSTEMS OF BANKING: There is no uniform system in commercial banking. They have evolved based on the needs of a particular place. Philosophically there are two banking systems- Capital based Western Banking System and Service based Islamic Banking System. Islamic banking system is the only banking system in the world that is totally fee based and does not pay or give interest. Islamic banks collect fees for all the services offered by them since giving or receiving interest is against the Islamic Law- Shariat. Most commercial banks follow capital based banking systems: they accept deposits from the public at lower interest rate and give out credit on higher interest. The difference in interest rate is their profit which is gained by from their capital. They also charge a fee for all the value added services rendered by them. In practical sense we come across three major western banking systems worldwide- C1. GROUP BANKING is commonly found in USA. It is a federal system favored mostly by banks in USA. Under this system, a group of banks come under a centralized management of a holding company may or may not be affiliated to a larger bank or any government controlled agency. Holding company exerts control over all the subsidiary banks though each subsidiary bank maintains its own distinctive identity. The group may also include non banking financial corporations. In some cases instead of a holding company, individuals or a group of individuals take the control over administration of the member banks through ownership of their stocks. Such a system is known as CHAIN BANKING. For all practical purposes, both mean the same except for their ownership pattern. MERITS- 1. Parent bank pools the resources and helps the member banks. 2. Large credits more than a member’s capital can be handled through consortium basis. 3. CRR, SLR and capital requirement is centrally maintained by the parent bank. 4. Parent bank provides service on research, legal matters and investments, reducing individual member bank’s cost. DEMERITS- 1. It is a step towards monopoly, not healthy from economic point of view. 2. Decline in business of one member in the group affects the entire group. 3. If the parent body is not a bank, it may divert funds to further its own interest. C2. UNIT BANKING system is an individualistic system also favored largely in USA. In this system each bank is a centralized unit without branches; it may have service centers like ATM at multiple convenient places or even a few branches within a strictly limited area. All functions of the bank are performed at one centralized place. For remittances they are linked through correspondent banks. MERITS- 1. Every type of banking service is available under one umbrella 2. It is competitive and highly efficient. It can take prompt decisions. 3. Continuity in personal relation helps in customer care. 4. Even unique local needs are addressed by this system. DEMERITS- 1. Being localized, it can not spread risk and its resources are limited. 2. They can not diversify services, can not have large scale operations 3. Mobilization of funds is limited to their own area and so fear of failure exists. 4. They have to depend upon their correspondent bank for remittances, increasing cost. 5. Very difficult to run unit banking in rural areas since rural resources are limited. C3. BRANCH BANKING system is followed almost universally. In this system banks will have their head office at one place and branches at multiple convenient places. Each branch functions like any other full fledged bank and yet is fully controlled by the head office. They even have specialized branches to take care of specific requirements of customers, like NRI branch, SSI branch etc. This is very convenient to the customers. In some branches even the weekly holiday is changed to suit the people of the area. MERITS- 1. This system can spread risk, diversify services, can have large scale operations. 2. It can have specialized branches for exclusive purposes. 3. They can move cash reserve from less required branch to more required branch. 4. Remittance through branch system is easy, cheap and efficient. 5. Brings uniformity in the functioning supported by centralized system. 6. There will be an efficient head office control and less fear of failure due to its size. DEMERITS- 1. Centralization of command delays decision making process. 2. Every branch may not be in a position to offer all banking services 3. Administration tends to be bureaucratic, sticking to the rules at the cost of the need. 4. More the branches, difficult will be monitoring and supervision 5. Unique local needs may not be well taken care of From the above analysis we can safely conclude that branch banking system is the best system and so is favored world over. NOTE: State Bank of India is planning to bring itself and its subsidiary banks with all their branches under one Holding Bank which will be like a Central Bank with full policy control over its member banks and yet with administrative freedom given to each of the member bank to maintain their unique identity. This will also be a group banking system with an important change that the holding company is a bank whose majority stake is held by the government. Hence, this system is going to combine the advantages of all the three systems discussed above. INDIAN BANKING: PROFILE In India, ancient scripts as old as ‘Manu Smriti’ deal with regulations on credit like- credit instruments, judicial proceedings on credits, renewal of commercial papers, interest on loans, etc. Chanakya’s Arthashastra refers to accepting deposits for lending. This was mainly money lending where as the modern concept of banking came to India with the colonial rulers. Though Chanakya’s Arthashastra speaks both about deposit and credit, it is basically money lending. INDIAN BANKING SYSTEM – AN OVERVIEW v v v INDIGENOUS SYSTEM BANKING SYSTEM NBFI v v v Indig. Banker Money Lender. ____ _v______ DFI NFFC MF. v Cooperative Scheduled v v Rural, Urban, LTCCS Coop Commercial v v v SCB, DCCB, PACS SCARDB, PCARDB Public, Private, Foreign, RRB v Nationalized Banks, SBI, SBI Group A. INDIGENOUS SYSTEM is the oldest system of banking in India. It is basically a business for profit controlled by a few upper caste communities. Hence, it got degenerated into highly exploitative system against the lower castes and accepted by the masses out of helplessness. A1. INDIGENOUS BANKERS are individuals or firms who lend money against securities- hundis, promissory notes and legal bonds which state the amount of loan, due date, rate of interest and penalty interest beyond due date. They may or may not accept deposits from the public. It is a monopoly of certain castes among Multanis and Marwaris, in the West, Gujratis and Bengalis in the East and Chettis and Brahmins in the South. The interest rates of these bankers range from 6% to 150% depending on the nature of the security. Many of them have trading interests and control the marketing of the borrower’s products. They operate mainly in big trading centers with their offices and branches. A2. MONEY LENDERS are individuals usually from Mahajan, Sowcar and Pathan communities. They do not accept deposits and their methods of business are not uniform. Others with surplus funds too are involved in money lending occasionally. Money lenders usually lend small amounts on personal security without any written agreement with prohibitive interest ranging from 75% to 300%, invariably quoted and collected on a monthly basis. They operate mainly among peasants and urban labor class. The lenders in both these categories are not interested in increasing productivity through credit. They are not even bothered about the principal amount as long as the interest keeps coming on time. Most of their credit goes for non-productive consumption activities. They are willing to give fresh credit to pay off the old credit with interest as it enhances their earning. There are enough cases where illiterates get cheated by them. Money lending now requires a govt. license and has a cap on interest rates. In spite of such restrictions, money lending business it still continues illegally among the low income groups because of easy access, absence of paper work and familiarity with the lenders. B. NON BANKING FIN. INSTITUTIONS or NBFI consist of development finance institutions, non-banking finance companies and mutual funds governed under SEBI. They do not come under direct RBI control like the commercial banks. B1. DEVELOPMENT FINANCE INSTITUTIONS: established by the central government for specific priority sector developmental activities. They are EXIM Bank, NABARD, NHB & SIDBI. EXIM Bank derives its name from Export-Import and its main activity is direct lending by way of long term loans and investments in export and import activities. †¢ NABARD is abbreviation for National Bank for Agriculture & Rural Development and is involved in refinancing banks and non banking financial institutions for agricultur al and rural developmental activities. †¢ NHB stands for National Housing Bank refinancing banks and non banking finance institutions on housing credits. †¢ SIDBI is short form for Small Industries Development Bank of India and it extends refinance to banks and non banking finance institutions for small scale industries. B2. NON-BANKING FINANCE COMPANIES: come under the regulations and supervision of RBI since 1998 but not under the II schedule like the scheduled banks. They are private or public limited companies and are allowed by RBI to accept deposits and offer 1% higher interest than the banks. They give credit only for the specific activities for which they are established like- equipment leasing companies, hire purchase finance companies, investment companies, loan companies, housing finance companies, etc. B3. MUTUAL FUNDS: are trusts that accept funds from the investors and redeploy them both in equity market as well as non-equity securities in a pre-determined pattern made available to the investor in advance and fully share the accrued profits with the investors after deducting their legitimate expenses. Hence, gain from mutual funds depends on the types of securities purchased by them. Broadly speaking there are three types of Mutual Funds. Equity Funds invest at least 65% of their funds in various equities and may give superlative returns or make one lose one’s own money depending on the market situation. Debt Funds invest in non equity securities and give low but steady returns. Balanced Funds are combination of both equity & debt funds. For a detailed discussion on Mutual Funds please see appendix at the end. C. BANKING SYSTEM consists of both cooperative and scheduled banks. C1. COOPERATIVE BANKS received momentum after the 2nd World War. They are formed by the cooperation of any group under the Co-op Societies Act. Such groups are largely localized and the success depends on their own expertise. Urban Co-op Banks catering to the needs of the urban population and Rural Co-op Banks such as State Co-op Banks and District Central Co-op Banks catering to the needs of the rural population fall in this category. Co-op Banks are not listed under the second schedule of RBI Act, 1934 but they come under RBI supervision separately. They are required to allocate 40% of their credit to the priority sector of the government like any other commercial bank, work within the jurisdiction of their state and are primarily into short term credit to its members. They are allowed to offer cheque book facility and interest 1% higher than commercial banks on deposits, but they do not offer all the banking and other ancillary facilities of a full fledged bank. All co-op banks/ credit societies have to be registered under Cooperative Societies Act of the respective states. They work on the basis of cooperation and can be established by any group of people by forming a co-op society and subscribing for their shares. The main difference between a co-op bank and a co-op credit society is that the former can receive deposit from general public and give cheque book facility but give credit only to the members where as the latter provides its services and benefits only to its members. Besides these, there are also Primary Agricultural Credit Societies, Primary Cooperative Agriculture & Rural Development Banks and State Cooperative Agriculture & Rural Development Banks in the cooperative sector. Cooperative banking structure, particularly the rural sector cooperative banking is quite complex in India. It can be broadly classified as follows- Urban Cooperative Banks alone have a single tier structure catering to all types of needs of the urban population through their branches in major cities spread all over the state, just like any other bank. Rural Cooperative Banks have three tier structures of delivery- State Cooperative Bank at the Apex level, District Central Cooperative Bank at the Intermediary level and Primary Agricultural Credit Societies at the Base level. Long Term Cooperative Credit Societies usually have two tier system- Primary Cooperative Agriculture & Rural Development Banks at the base level and State Cooperative Agriculture & Rural Development Banks at the state level. Some states have unitary system with State level banks working through their own branches and some other states have a mixture of both systems. C2. SCHEDULED BANKS are those which are registered as joint stock companies under Indian Companies Act and are also listed under 2nd schedule of the RBI Act, 1934. They are licensed by RBI to have branches all over India or even abroad and perform all banking activities including foreign exchange. They are required to lend 40% of their credit to the priority sectors of the government. They directly come under RBI regulations and supervision. RBI control over the scheduled banks is so efficient that we do not have any example where a scheduled bank has ever applied for liquidation since the inception of RBI. Scheduled banks are basically of two types- a. SCHEDULED COOPERATIVE BANKS are those cooperative banks with a large capital base and listed under the 2nd schedule of RBI Act of 1934. They can offer all banking facilities just like any other commercial bank. b. SCHEDULED COMMERCIAL BANKS are those private or public limited joint stock companies listed under the 2nd schedule of RBI Act of. They are further classified into 4 groups: Public Sector Banks, Private Sector Banks, Foreign Banks and Regional Rural Banks. b1. PUBLIC SECTOR BANKS are public limited companies whose majority shares are held by the government. Hence, their board of directors is fully controlled by the govt. and they come directly under govt. regulations. They are further classified into State Bank of India, Subsidiary Banks of SBI and Nationalized Banks. †¢ STATE BANK OF INDIA: The East India Company established three banks- Presidency Bank of Bengal in 1809, Presidency Bank of Bombay in 1840 and Presidency Bank of Madras in 1843 as bankers to the respective Presidency Governments. In 1921 they were amalgamated into Imperial Bank of India which also functioned as the central bank till RBI was formed in 1935. In 1955 it was nationalized and re-named as State Bank of India, popularly known as SBI. It also acts as the banker to the government wherever RBI does not have its offices. †¢ SUBSIDIARY BANKS OF SBI or SBI Group was formed by SBI with majority shareholding in them. State Banks of Saurashtra / Indore have merged with SBI in 2008 & 2010 respectively. State Banks of Mysore / Travancore / Hyderabad / Patiala / Bikaner & Jaipur are in the process of merger. SBI European Bank is their foreign subsidiary bank. †¢ NATIONALIZED BANKS: 14 commercial banks were nationalized in 1969. They are- Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, United Commercial Bank, United Bank of India and Union Bank of India. 6 more were nationalized in 1980. They are Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab & Sind Bank and Vijaya Bank. b2. PRVIATE SECTOR BANKS do not have any govt. stake in their share holdings. Most of them are owned and controlled by business groups and follow aggressive corporate culture in their functioning to maximize their profits. The promotion prospects of their employees are directly linked to the business they promote unlike in public sector. Hence, they are far ahead of public sector banks in value added services, customer care and at the same time they also charge a host of hidden costs unlike the public sector banks. b3. FOREIGN BANKS are those banks whose head offices are located outside India and are allowed to do banking business under certain conditions. Prominent among them is lending 32% of their credit to the priority sector including export credit. Financing foreign trade remains their main business in India. They can fulfill their priority sector lending requirement by lending to priority sector export business and investing in priority sector government financial institutions. b4. REGIONAL RURAL BANKS were created to provide institutional credit and other facilities to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in rural areas under 20 point Economic Program of the central government. 19 such banks were established in 1976, one in each state. They were given a jurisdiction to work, freedom to have branches or agencies within their jurisdiction and were put under the sponsorship of a nationalized bank. Ownership pattern of the capital was 35% with sponsor bank, 50% with the central govt. and 15% with the state govt. D. CHANGING PROFILE: Indian economic policy has been founded on the philosophy of economic growth and social justice. Indian banking sector has undergone a dynamic change over the years based on the needs of its economy. Most important among them are- REACH- The branch network of Indian banking system in so extensive, it covers almost all remote corners of India. It is one of the largest networks in the wo rld. †¢ DEVT- The diversification and development of our economy and its rapid growth is all because of our banking system’s credit to various priority sectors. These achievements have become a reality because of the changing profile of our banking system over the years. We shall discuss the major changes in the profile as under- D1. CHANGE IN SECURITY ORIENTATION: Traditionally personal creditworthiness of the borrower mattered a lot for any credit to be released. It meant, safety of the credit alone mattered for the banks and this safety came from the wealth the customers possessed. It effectively meant that only moneyed people could borrow from the bank. Now, banks have now changed their orientation from safety to purpose. Credit is now made available to make them creditworthy. Hence, technical competence of the borrower, operational flexibility and economic viability of the project has become more important than the security offered by the borrower. D2. CHANGE IN REGIONAL IMBALANCES: Private Banks opened their branches in urban locations because of the business potential. As a result Rural India remained unconnected by the banks. For example, pre-nationalization of banks there were only 12555 branches of banks in the entire country and they were located mainly in the urban centers. Post nationalization of banks number of branches has rapidly risen and as of Mar-09 it stands at 82408 branches. It is important to note that over 49% of these branches are now in the rural areas. It gives evidence that banking network has now spread uniformly to cover the entire nation without rural-urban bias. D3. CHANGE IN BANKING HABIT: As a natural corollary to the development in the field of branch banking, development of baking habits in India have grown at an unparalleled pace. Banks have successfully induced the customers to save a part of their earning in banks for the future. Some banks even sent their agents door to door to collect the savings. This helped the banks to diversify their lending portfolio considerably. If the deposits & advances counted for 13% & 10% of GDP respectively in 1969 they shot up to a whopping 50% & 25% respectively in 2002. D4. CHANGE IN BANKERS ATTITUDE: A welcome change is the change in the attitude of the bankers. Earlier lending had a wholesale character coupled with the security of the credit. This attitude of the bankers made the banking facilities almost the exclusive prerogative of the elite classes. With the branches reaching the rural areas banking went retail and for the ordinary masses. Grant of credit no more became a matter of privilege; it became available for genuine production need based purely on technical norms. D5. CHANGE IN BANKING PRODUCTS: As the focus got shifted from wholesale to retail banking, private banks in particular came up with novel products to suit the needs of the retail customers, like- home loan, auto loan, credit card, etc. Pigmy deposit introduced by Syndicate Bank and imitated by others in its various forms for example aimed at pooling idle money and inculcate saving habits among people. Banks sent their agents door to door to collect the deposit money on a daily basis and without setting a minimum. Bank deposits grew substantially because of this scheme. Such innovative products were considered a tough proposition earlier by the banks due to the volume of operations involved. Now, computerization of banking system has removed this difficulty. Some of the banks have started offering even auto FD where amounts above a pre set limit gets converted automatically into FD to fetch higher interest and gets redeemed automatically when cheques are presented and the account runs short of balance. D6. CHANGE IN MODE OF BANKING: When the banking system was manually operated, almost all services were time consuming except depositing money into the account in the base branch where the account is maintained. Computerization of banking has made service faster; the entire country is made to appear like one branch and even the necessity to go to the bank during banking hours for transactions is becoming redundant. Cash can be drawn from ATM anytime, even during holidays and bills can be paid directly to the account from one’s own office. D7. CHANGE IN NON-BANKING ACTIVITIES: Many banks have diversified their activities beyond traditional banking activities like equipment leasing, hire purchase financing and factoring [acting as agents for the customers. ] A major step in this direction is the merger of ICICI with ICICI Bank D8. CHANGE IN APPROACH TO CREDIT: As a corollary to the shift from security orientation to purpose orientation, bank’s approach to credit also changed from lending to development in the recent past. Banks started lending for the purpose of industrial development, providing access to capital market and long term savings of the economy. They even started specialized branches to cater to the specific needs of the customers, like- NRI Branch, Overseas Branch, SSI Branch, Recovery Branch, etc. D9. CHANGE IN CUSTOMER SERVICE: Private Banks started giving more focus to customer care in order to win more business. They even gave free collection and delivery facilities to HNI customers. To cope with the increasing banking habit, RBI too came up with a Banking Ombudsman scheme to redress the customers’ complaints. E. CHALLENGES AHEAD: Banks have sacrificed some qualitative aspects of growth while expanding the banking system to achieve development and increase its reach. Prudent regulations have no doubt helped to ensure systemic stability, but enhanced efficiency would necessitate institutional changes in the internal functioning of the banks in the following fields- E1. ORGANISATIONAL STRUCTURE: Centralized structures work wonders under uniform conditions. As the banks diversify their business into the field of agriculture, rural development and other priority sectors they have to deal with different types of customers who need different kind of treatment. They can not afford to force the standard sophisticated practices on all the customers uniformly. For example, to finance rural development it is very much essential that banks evolve simple and meaningful procedures to the comfort of the rural folks. The most common complaint against banks is the under-financing and non-availability of timely credit to meet the borrowers’ need based requirements. Hence, banks must revamp their organizational structures by delegating power, decentralizing control and monitoring performance. E2. EXCELLENCE IN MANAGEMENT: Quality of management is another challenge in the face of fast expansion. Here are ten critical characteristics of a good bank management- 1. An open culture and extensive vertical and horizontal communication, 2. Strong shared values, 3. Profit performance as a value, 4. Customer focused business orientation, 5. Willingness to invest in new products, 6. Strong sense of direction and consistent leadership, 7. Commitment to recruit best persons, 8. Investment in training, 9. Product information system and 10. Strong credit risk management. E3. CORPORATE GOVERNANCE: There are instances where the boards have shown reluctance to ratify and adopt RBI circulated covenants on professinalization of bank boards. Corporate governance can not be enforced through regulations, it must spring from within. E4. EMPLOYEE COMPETENCY: Together with the change in organizational structure there is a need to increase employee competency also. When new entrants into the market like Mutual Funds are cutting into the business of the banks, contemporary banking is becoming more and more skill sensitive and information technology is throwing new challenges to the banking systems, employee competency has become all the more important to retain the existing business of the banks and expand it. E5. APPROPRIATE TECHNOLOGY: Well established banks are facing stiff competition from the new entrant banks in terms of use of appropriate technology that makes banking convenient. The established banks do use modern technology but are way behind in maintaining pace and are challenged by these new entrants in order to remain in business. E6. NONPERFORMING ASSETS: These are popularly known as NPA, the loans that do not perform- loans under litigation or bad loans that are doubtful of recovery. 6. 2% of loans of scheduled commercial banks were NPA and the public sector banks had to write off 42. 5% of the NPA as on 31. 3. 2002. It reflects on the quality of the loan portfolio. At 5% NPA, 17 out of 21 major banks in Japan were on the red. As per developed country standards it has to be around 2%. Hence, banks have to bring down the NPA ratio drastically. E7. DIRECTED CREDIT: NPA as discussed above is a direct result of the quality of the loan portfolio of the banks. The system of directed credit to priority sector has no doubt brought impressive performance in quantitative terms but qualitatively it has brought more loan delinquencies since the relation between credit expansion and productivity has become weak. Political interference in credit decision-making is pointed out as a factor. The populist phenomenon of ‘loan mela’ is certainly contrary to the professional appraisal of bank credit needs. What is required to improve the quality of loan is- 1. Serious appraisal of credit need, 2. Potential productive activity and 3. Effective post credit supervision. E8. RISK MANAGEMENT: Risk is intrinsic to any business; all the more to banking. Risks encountered by banks have increased with the diversity of banking business and growing sophistication of banking operations. The major risks encountered by banks are credit risk, interest rate risk, operational risk, forex risk and liquidity risk. While deregulation has opened up new vistas for banks to shore up more revenue, it has entailed greater competition and greater risks too. Hence, greater attention needs to be iven in strengthening of internal controls of risk management. E9. SICK INDUSTRIAL UNITS: Funds locked up in industrial sickness has reached a staggering 2% of the entire credit of the banking system in March 2000. When sick units have to be nursed for ‘social objectives’ banks should not be forced to suffer; actual stakeholders must bear the burden of nursing them. When sick units are nationalized for protecting the employment or they are public sector entities, govt. must give adequate compensation to the banks to cover their dues which rarely happens in reality. It is neither legitimate nor practical for the banks to nurse sick units in all circumstances. E10. PROFIT PLANNING: Banking can not run like other profit making business since excessive and unjustified profits can only be at the cost of development of the society so far as the lending rates push up the production cost and ultimately is passed on to the customer. At the same time strong operating profits allow for allocations to capital and reserves which are very much essential for any bank to maintain its competitive viability. This setback was realized in the 90’s when the nationalized banks posted declining profits. Nevertheless, concerted efforts by these banks improved the situation by 2002. Stiff competition makes the banks to work on thin interest rate margins but to increase their profitability, they have to increase their fee based non-fund services substantially. E11. CUSTOMER SERVICE: Though entry of new private banks no doubt has increased the quality of customer service, it is by and large confined to urban areas and to wealthy customers. Only the educated and wealthy customers have access to detailed information on all the banking facilities available. Customer care is very much wanting in public sector banks where the unionized employees are sure of not losing their jobs on this count. Efforts must be made to collect customer feedback on regular basis and remedy the defects pointed out if any, at the earliest wherever possible. E12. GLOBAL STANDARDS: Computerization has revolutionized in banking in India. But it has not yet made much progress in expanding it beyond the ational boundaries. Not many branches of Indian banks are found outside India. Just like its progress in Information Technology and software, India has to make good progress in the banking sector internationally since allocation of capital can not be bound by geographical bound aries. COMMERCIAL BANK A. FEATURES: Commercial banks are private or public limited joint stock banking companies registered under Indian Companies Act. There are three distinct features of a commercial bank- they accept DEPOSITS on lower cost and give CREDIT on higher cost and the cost difference between deposit and credit is their GAIN. [For more details refer features of a bank] Its capacity to earn profits depends on its investment policy which in turn depends on the manner in which it manages its investment portfolio. Portfolio management refers to prudent management of a bank’s profit, liquidity and safety. But most commercial banks have gone way ahead of their basic functions introducing a host of fee based ancillary financial services in order to maximize their profits. Thus a commercial bank now may be defined as â€Å"an institution that accepts deposits from the public on lower cost and lends it on credit on higher cost as well as offers ancillary services for a fee in order to increase its profits. † B. ROLE IN FINANCIAL SYSTEM: Commercial banks strive to earn a profit. At the same time their entire business of credit depends on public money deposited with them. Hence, they can not afford to risk public money just to increase their own profits. It is common knowledge that national level bank strikes throttle the lifeline of the nation’s economy and inflict heavy losses on the GDP. The significance of banks’ role in the financial system must be understood in the words of Walter Leaf, who says â€Å"The banker is the universal arbiter of the world’s economy† Commercial banks have to play a major role in three distinct areas- †¢ Providing fiscal liquidity to the financial system, †¢ Giving capital protection to the economy and †¢ Speeding up economic growth of the nation. B1. FISCAL LIQUIDITY: By fiscal liquidity we mean the capacity to produce cash on demand. The most important role of any bank is to provide liquidity to the financial system. Banks pool around idle money in small pockets through their wide spread branches into a large capital and redeploy it wherever needed. For better management of credit, banks like to have as much funds in liquid as possible while maximization of gain is possible only by deploying maximum available funds on credit. Both are important for the bank. Hence, bank has to strike an effective balance between them so that neither its profitability suffers nor the liquidity of the market is affected. Liquidity of the assets of the bank is planned in three stages- a. CASH is the most liquid asset. But it is an idle asset earning no returns for the bank. Yet certain percent of deposits must be always kept in reserve with the Central Bank in addition to cash in hand to meet immediate withdrawal of deposit. This is known as Cash Reserve Ratio or CRR. It is decided by the Central Bank. b. CALL MONEY is the investment in Money Market, Bond Market and Reverse Repo. # Money Market securities include short term securities like Certificate of Deposit [CD] of banks, Commercial Papers [CP] of companies, treasury bills of the govt. which give stable but low returns and long term govt. securities whose yield depend on the interest scenario. Bond Market securities include Medium Term as well as Long Term bonds of any banks or companies tradable in the secondary bond market. They are bought and sold at discount or premium and hence, their yield also depends on interest scenario. # Reverse Repo is the system through which RBI borrows from commercial banks to abs orb excess liquidity at lower interest rate. These funds are made available to commercial banks through bills repurchase under repo system on a little higher interest. These securities are the next best liquid assets but the returns from these securities are low. But it is important to select only those securities which give a fairly stable return. These securities can easily be liquidated in the Market with short notice. RBI prescribes a Statutory Liquidity Ratio or SLR for banks by which banks have to maintain certain percent of their deposits as liquid assets. c. CREDIT and investments give maximum gain to the bank but they are the least liquid. Hence, these assets should be created only in required proportion, never as a priority. Among them, short term credits are preferred by banks over long term credits for the sake of liquidity. B2. CAPITAL SAFETY: Commercial banks strive to earn profit. But this must be done through prudent ways without risking the deposits of their customers. They have an important role to play in the capital protection. Hence, 1. Protection of deposits must be the top priority for the banks. Deposit Insurance and Credit Guarantee Corporation set up by the govt. gives guarantee only up to Rupees one lakh per customer in case a bank fails and has to be closed down. 2. Banks must avoid investing in equity related instruments or giving loan for speculative business since equity market weakens capital safety to a large extent. This is required to increase stability of the capital. 3. Banks have to use self restraint in their credit to other volatile businesses like real estate, film industry, etc. Similarly they must be extra cautious while accepting volatile securities as surety for credit. 4. Banks must restrict long term credits and investments to a small percent since capital safety in short term credits is higher than the long term credits. 5. Before giving clean loans, banks must have a thorough reality check on the creditworthiness of the borrowers to repay the loan on time. 6. Banks must maintain a fair margin between their interest rates on deposits and credits. B3. ECONOMIC GROWTH: Banks have a greater role to play in the economic growth of the nation through economic development of all the sectors. Hence, they must provide more credit to developmental and productive activities than non-productive or consumption oriented activities. Basically there are three types of developmental activities- Large capital based corporate activities, medium or small capital based priority sector activities and export activity. a. CORPORATE SECTOR- While funding developmental activities, banks find it easy to provide credit to large capital based profit making corporates in industry & trade since timely repayment of credit received by them with interest is almost guaranteed. Funding is required not only for corporates but also for other sectors like industry, trade, service, infrastructure, transport, housing, power, finance, technology, etc and the banks can not overlook one sector at the expense of the other. Besides, corporate sector companies also have the capacity to increase its capital base or raise funds from the open market by issuing their own bonds. In other words they do not depend heavily on banks for their capital requirements where as others heavily depend on banks. Hence, banks must use their prudence while deciding percentages for corporate credit. Large capital companies, particularly industry contribute to the economic growth of the nation not only by increasing production but also by increasing job opportunities. But their main drawback is that they are basically profit oriented and development is a byproduct of their activity. They are reluctant to venture into non-profit sectors that are essential for a balanced growth of economy. b. PRIORITY SECTOR- For all-round and real development there are certain priority sectors of the nation that require funding assistance by the banks. They are- infrastructure development like housing, rail and road construction, power, transport, etc. as well as small scale industry, trade, technology, agriculture, etc. From the profit perspective these priority sectors may not be always lucrative. It will not be always easy for these sectors either to increase their capital or borrow from open market; they depend heavily on banks for their capital requirements. RBI has mandated 40% of the total credit of all cooperative & scheduled banks and 32% for foreign banks towards priority sector lending. Banks are allowed to invest in special bonds or investment instruments of these sectors to meet these requirements. c. AGRICULTURE SECTOR is surely a super priority sector. It must attract special attention of the banks since self sufficiency in agriculture has to be a top priority of any nation. Agricultural production is commercially unprofitable at least in Indian context. Small and medium farmers produce just enough to sustain since their personal labor in agricultural production gets them no returns. Any other production can wait, not food; it has to be produced proportional to the population irrespective of the cost. For the same reason, governments are providing subsidy and refinance facilities for agriculture. Banks must ensure that the government benefits really reach the medium and small farmers. d. EXPORT SECTOR is not an exclusive sector like corporate or priority sector. It can pervade both corporate as well as priority sectors. Economies of the world are so interdependent that each country must have enough reserves in the currencies of other countries to pay the bills for supplies received from those countries. In its absence they end up in raising foreign debt which in turn has a cost by way of interest; or else they end up in depleting nation’s gold reserves. If a country depends on foreign supplies, it must give high priority to exports to that country to strengthen their balance of payment. In such a situation banks must step in to provide credit to export activities in a preferred manner to increase county’s reserves in that currency. C. MULTIPLE CREDIT CREATION: There are two views on whether banks can create credit- †¢ One view held by Walter Leaf is that banks can not create money out of thin air. They can lend what they have in cash. †¢ Another view held by Hartley Withers is that banks can create credit by opening a deposit every time they advance a loan. It is interesting to know that in an effort to maintain lowest possible idle cash, banks end up in increasing the money in circulation without increasing tender cash currency while creating credit! In fact, credit creation is one of the most important functions of a commercial bank. They increase the purchasing power of people. Let us see how does this happen. C1. METHOD: When bank gives a loan it pre-supposes that bank has cash through deposits. From the deposit bank gives loan which in turn gets deposited in the bank account. It creates an asset as well as a deposit with the bank. The beneficiary customer can issue cheques for payments in addition to the existing customers who have originally deposited the money. Thus money available in circulation superficially becomes more than the actual tender cash currency. This is the view of practical bankers. Concrete Example: Let us presume that our country has only one bank B and all the citizens are heavily into banking making the cash requirement of B just 10%. B gets total demand deposit of R. 10000 and that is the only currency in circulation in our country. Balance sheet of B will read as follows: |LIABILITIES |ASSETS | |Deposits 10000 |Cash in Hand 10000 | |TOTAL 10000 |TOTAL 10000 | B has to maintain 10% of its deposit of 10000 which is 1000 as cash reserve. It implies that B can give 9000 as loan. It creates an additional deposit as it is released to the deposit account while creating a credit of 9000 and the new balance sheet will read thus: LIABILITIES |ASSETS | |Deposits 19000 |Cash in Hand 10000 | |