Population Seven Billion Essay Example for Free

Population Seven Billion Essay There will soon be seven billion people on the planet. By 2045, the global population is projected to reach nine billion. Can the planet take the strain? The first attempt to estimate the human population may have been carried out by Antoni Van Leeuwenhoek in the 17th century. Based on his calculations, Leeuwenhoek concluded triumphantly, there could not be more than 13.385 billion people on Earth a small number indeed compared with the 150 billion sperm cells of a single codfish. Historians now estimate that in Leeuwenhoek’s day, there were only half a billion or so humans on Earth. After rising very slowly for millennia, the number was just starting to take off. A century and a half later, when another scientist reported the discovery of human egg cells, the world’s population had doubled to more than a billion. A century after that, around 1930, it had doubled again to two billion. The acceleration since then has been astounding. Before the 20th century, no human had lived through a doubling of the human population, but there are people alive today who have seen it triple. According to the U.N. Population Division, by the end of 2011, there will be seven billion of us. The population explosion, though it is slowing, is far from over. Not only are people living longer, but so many women across the world are now in their childbearing years 1.8 billion that the global population will keep growing for another few decades at least, even though each woman is having fewer children than she would have had a generation ago. U.N. demographers project that the population may reach nine billion by the year 2045. The eventual tally will depend on the choices individual couples make when they engage in that most intimate of human acts, the one Leeuwenhoek interrupted so carelessly for the sake of science. With the population still growing by about 80 million each year, it is hard not to be alarmed. Right now on Earth, water tables are falling, soil is eroding, glaciers are melting, and fish stocks are vanishing. If developing countries follow the path blazed by wealthy countries such as clearing  forests, burning coal and oil, scattering fertilizers and pesticides, they too will be stepping hard on the planet’s natural resources. How exactly is this going to work? At certain time periods in history, a high fertility rate was important. In 18th-century Europe or early 20th-century Asia, when the average woman had six children, she was doing what it took to replace herself and her mate, because most of those children never reached adulthood. When child mortality declines, couples eventually have fewer children but that transition usually takes a generation at the very least. Today in developed countries, an average of 2.1 births per woman would maintain a steady population; in the developing world, â€Å"replacement fertility† is somewhat higher. In the time it takes for the birth-rate to settle into that new balance with the death rate, population explodes. The good news is high fertility rates currently only occur in around 16 per cent of the world’s population and mostly in Africa, according to Hania Zlotnik, director of the UN Population Division. In most of the world, however, family size has shrunk dramatically. The UN projects that the world will reach replacement fertility by 2030. â€Å"The population as a whole is on a path toward non-explosion which is good news,† Zlotnik says. The bad news is 2030 is two decades away and the largest generation of adolescents in history will then be entering their childbearing years. Even if each of those women has only two children, population will coast upward under its own momentum for another quarter of a century. One thing is certain: close to one in six of them will live in India. The goal in India should not be reducing fertility or population, Almas Ali of the Population Foundation told me when I spoke to him a few days later. â€Å"The goal should be to make the villages liveable,† he said. â€Å"Whenever we talk of population in India, even today, what comes to our mind is the increasing numbers and these numbers are looked at with fright. This phobia has penetrated the mind-set so much that all the focus is on reducing the number.† The Annual meeting of the Population Association of America (PAA) is one of the premier gatherings of the world’s demographers. Last April the  global population explosion was not on the agenda. â€Å"The problem has become a bit passà ©,† Hervà © Le Bras says. Demographers are generally confident that by the second half of this century we will be ending one unique era in history the population explosion and entering another, in which population will level out or even fall. From this, one can also draw a different conclusion, that fixating on population numbers is not the best way to confront the future. The number of people does matter, of course, but how people consume resources matters a lot more. The central challenge for the future of people and the planet is how to raise more of us out of poverty while reducing the impact each of us has on the planet.

Intermediation Process and the Allocation of Resources

Intermediation Process and the Allocation of Resources The importance of the financial system in facilitating economic development cannot be overstated. Banks and other financial institutions have a key role in the efficient allocation of resources and as such, sound financial systems are systemically important to the economic viability of a country. The Asian Financial crisis of 1997-98 brought home the significance of financial sector soundness by highlighting the consequences of underlying weaknesses in the financial sector and the negative impact that weak financial sectors could have on stakeholders, particularly the depositors. Sound financial system is therefore not only important for the welfare of the financial entities themselves, but it is also of vital importance to the growth of individual economies. In allocating resources in an economy, financial institutions must assess competing demands for funds and prioritize the analysis of risk. Improper decisions about financing activities, that is, which activities to finance and which not to finance, (depending on which activities will bring the best risk-adjusted return), can have a crucial negative long-term impact on economic prospects. Sound investment decisions are vital ingredients in fostering economic growth and development. These decisions therefore should produce feasible outcomes not only for the financial intermediary but also for the economy. Investment should be for productive purposes and should be deployed for the common good. Financial intermediaries should also have a harmonious relationship with the macro-economic space within which they operate. For example, in the nineteenth century, Britain was seen as the most successful economy and was the home to the worlds most successful financial centre at the time. This was not only due to the fact that London had developed expertise in assessing risk and in allocating financial resources efficiently, but also to the fact that the macro economic environment was conducive to the operation of financial intermediaries operating in the financial centre. The assessment of risk also assists financial institutions to be individually more competitive with their peers. This results in a more efficient process of capital allocation in addition to engendering more prudent practices. Financial intermediaries that can assess risk and allocate resources efficiently will outperform those less skilled in this regard. Effective competition should reduce borrowing costs and help to diversify financial risk within the economy. However, to ensure that banks are performing as intended, an effective regulatory framework must exist. The importance of adequately capitalized financial institutions to underwrite appropriate risks in their portfolios cannot be over emphasised. If financial intermediaries undertake too little risk, then potentially efficient projects may be starved of capital and if they undertake too much risk, then less efficient projects may consume capital that could be used for more viable projects. The role of regulators in providing effective oversight for the sector and be able to respond appropriately to changes in the financial environment becomes even more important. William J McDonough (1998) postulates that a nation must be able to mobilize domestic savings and other sources of funds that are needed to finance investment and other productive expenditures[1]. This requires the development of an effective banking system that transfers surplus funds of households and businesses to borrowers and investors. He further argues that, fair and impartial allocation of credit accommodates the economic development that results in improved national living standards. According to McDonough: financial intermediation is particularly important in the context of most emerging market countries given the relative scarcity of savings, a relatively under-banked population, and large-scale investment needs. The banking sector in emerging market countries also tends to be more concentrated and represents a larger share of the domestic financial system. Consequently, issues in the banking sector have an amplified effect on the economy and on the fiscal costs associated with bank rescues. Importantly, current developments in western economies are anchored in a robust financial sector development.. Consequently, the relationship between economic growth and financial sector health are now more closely linked than ever before. Some of these linkages or interrelationships are further explored in this thesis from the perspective of risk relationships. The demands of the changing business environment emphasize the importance of effective risk management practices in banking institutions. Financial intermediaries continue to face tremendous unrelenting pressures regarding pricing decisions, increase in service expectations from customers, regulators and shareholders. There is also a demand for more sophisticated products and services, new regulatory requirements, improved capital standards, more capital injection and the introduction of new technologies and systems. Technology is important in supporting new and flexible risk relationship structures in the areas of credit, market, liquidity and operational risk management. Advanced technologies are often used by intermediaries to identify, quantify and monitor risks. The employment of these technologies also comes with their own attendant risk exposures and as such significant investments and focus have been placed (particularly in recent times) on operational risk management issues from both regulatory and financial intermediary perspectives. Risk management must be seen as an integrated process and as such managing existing relationships, developing new relationships and leveraging the value of all risks relationships are critical to the management of overall risk exposures. It is important therefore that the approach which institutions and regulators take in managing risk, be relational. Both the qualitative and quantitative aspects of risk management must find consensus within the same framework. No longer should institutions view risk as an isolated and individualized structure with separate and mutually exclusive elements but risk should be managed as a system, which is intricate, collaborative and bound by mutual responsibilities. Banking Supervision The identification, assessment, and promotion of sound risk-management practices have become central elements of good supervisory practice. Risk management has evolved as a discipline that is driven both by the private sector (made up of banking institutions and other market participants) and public sector (especially Regulatory Authorities and Banking Supervision). The relationship between the private sectors interest in economic capital and the public sectors interest in regulatory capital should be identified and managed in a framework that ensures optimization. With regard to the management of risks and risk relationships, several key innovations have been made by the private sector over the years. These are evident in the way financial intermediaries have ordered their balance sheets to respond to various risk stimuli and impulses both internally and externally. Additionally, the private sector has been the driving force behind the development of sophisticated tools used to identify, measure and manage risk relationships. The public sector on the other hand, has been at the forefront in the development of best practice standards and principles used to guide financial intermediaries. For years, the public sector has been playing a pivotal role in preventing the total collapse of the entire financial systems in their capacity of lender of last resort. The regulatory and supervisory arms of the public sector have taken the lead in identifying emerging issues through their approach to supervision of financial intermediaries. Several regulatory bodies routinely performs on-site inspections and examinations as well as off-site monitoring and surveillance of banks and other financial institutions to assess risks and provide feedback to the financial intermediaries board and management. These reviews include the assessment of policies and procedures in place to guide risk management; the assessment of governance and internal controls and the assessment of capital adequacy, asset quality, earnings and liquidity and sensitivities to risks. Reviews could also include comparisons of peer institutions coupled with the establishment of guidelines that codify evolving practices. Yellen (2005)[2] argued that although banks and bank supervisors have different motives, which certainly can lead to differing views about the appropriate levels of risks, they also have a common interest in having accurate measures of risk and in focusing on the processes and techniques for identifying and managing risks. According to Alan Greenspan (2004),[3] the growth in the size and complexity of the largest US and foreign banking organizations, in particular, has substantially affected financial markets and supervisory and regulatory practices. He further states that authorities are required to focus more than before on the internal processes and controls of these institutions and on their ability to manage risk. According to Greenspan, the regulatory authorities must provide the industry with proper incentives to invest in risk-management systems that are necessary to compete successfully in an increasingly competitive and efficient global market.[4] The Basel Frameworks Over the last two decades, the system of bank capital standards has been the Basel Capital Adequacy Standard, known as the Basel I framework, which was established internationally in 1988. The Basel I standard came out of the banking supervision sub-group of the Bank for International Settlement (BIS). The Banking subgroup is made up of supervisors from the G10 countries. This group has been charged with the responsibility for setting bank standards around the world, which it does predominantly through the development and implementation of the Basel Core Principles for Banking Supervision. The Basel I framework was particularly geared towards credit risks in banking institutions and resulted in higher capital levels, a more equitable international marketplace and the relating of regulatory capital requirements to risk appetite and risk profile. The Basel framework is a dynamic one to which bank as supervisors continue to make important adjustments from time to time. For example, the 1988 Capital Accord was amended subsequently to incorporate a market risk component. Bernanke (2005)[5] argues that advances in risk management and the increasing complexity of financial activities have prompted international supervisors to review the appropriateness of the regulatory capital standards under Basel I, particularly for the largest and most complex banking organizations. Bernanke states further that supervisors recognize that some of the largest and most complex banking organizations have already moved well beyond Basel I in the sophistication of their risk management and internal capital models. The gap between the determinants of minimum regulatory capital (under Basel I) and the levels of risks that financial institutions were taking on began to widen, as risk relationships continue to become more complex and risk-management practices continue to evolve. Several innovations have sought to collectively reinforce this gap and indeed the relationship (regulatory capital/risk appetite) between the public sector and the private sector has also being mutually reinforced. These innovations have predominantly being originated by bankers in the private sector and not by Supervisors. Bankers and Risk Managers had developed models that encompass their processes, procedures, and techniques, including statistical models for assessing risks in their portfolios. These innovations by the private sector were seen as state of the art risk management tools which the public sector could use and as such Regulators began to leverage the risk management techniques that banks were using to address shortfalls in Basel I. This phenomenon helped to push the Basel Committee back to the drawing board to create the new capital adequacy standards for internationally active banks, known as Basel II. Bernanke (2006)[6] argues that the new framework links the risk taking of large banking organizations to their regulatory capital in a more meaningful way than does Basel I and encourages further progress in risk management. It does this by building on the risk-measurement and risk-management practices of the most sophisticated banking organizations and providing incentives for further improvements. When this framework is applied consistently across internationally active banks, Supervisors can easily identify shortfalls in the relationship between banks capital and risk levels. Banking institutions with capital levels that are not commensurate with their risk profile and risk levels would be subjected to closer assessment and monitoring. Additionally, Basel II has provided the Supervisor with an added tool, under the supervisory review process (Pillar II) to assess risks in the banking system. The new capital accord, Basel II, with its three pillars, will hopefully enhance and strengthen the process of risk management in banking institutions. Internationally active banks, and other banks and investment businesses in jurisdictions in which regulatory authorities deem it prudent to bring these institutions in scope, should expect significant revisions and modifications in their internal policies used to identify, measure, manage and report on risks. Not only should improvements be seen in risk management policies, but the process and general procedural framework would also see improvements. In this regards, banks and other financial institutions should envisage changes in their system used to capture and report on risks. Under Pillar I, changes are expected I the risk weights assigned to the credit portfolios, particularly, residential mortgages and as such banks could see some reduction in charges as weights for some categories are reduced. The reporting of market risks and operational risks should also improve as banks garner more granular data on its expected losses and risk exposures. In preparation for the supervisory review process (Pillar II) to be conducted by the regulatory authorities, banks should see significant improvements in their risk management practices as they subject their internal capital adequacy models to greater levels of scrutiny to ensure that the capital cover is adequate for all the material risks identified, their risk appetite, and risk exposures. The use of stress testing on both the banks investment and credit portfolios under the pillar II process should also seek to strengthen the institutions approach to deal with adverse down turn and general deterioration in some macro economic variables in the economies in which the banks operate. This should push banks to increase capital levels to cushion expected losses. Pillar III implementation under the new capital accord should also foster greater improvements in the risk management, policies, processes, and procedures of banking institutions as banks become more transparent in their efforts to disclose more information on the profile of risks, risk exposures and capital levels to their stakeholders. The Sub-prime Mortgage Crisis The conditions that gave rise to the current sub-prime mortgage crisis provides ample evidence to support the pressing need for both private and public sector, financial institutions and supervisors, to understand the nature and nexus of risk relationships and regulatory capital. The crisis also provide an opportunity for financial institutions and regulators to explore the risk relationships and risk dynamics existing within and outside of financial intermediaries, as well as the impact that failure to properly identify and assess risk exposures in financial institutions can have on the global financial system and economic growth and development in a particular country. The ongoing economic problem resulting from the sub-prime mortgage crisis has manifested itself through liquidity issues in the global banking system. The credit crisis has its genesis in the bursting of the US housing bubble and the subsequent high default rates on sub-prime or other adjustable rate mortgages, made to borrowers with higher risk profile and lower income levels, instead of to borrowers who are considered prime borrowers with higher income and good credit history. Borrowers were encouraged to take up mortgages based on the attractive housing incentives that led them to believe that notwithstanding the long term trend of rising housing prices, they would be able to refinance these mortgages at more favourable terms in the future. During 2006 however, the prices of houses started to fall, albeit moderately and as such, the possibility of refinancing was becoming more remote. Consequently, the interest rates on the adjustable rate mortgages (ARM) that the sub-prime borrow ers were able to obtain began to reset at the higher rate resulting in a significant increase in defaults and foreclosures. In 2007, foreclosure activities increased by approximately 80 percent over the 2006 figures as nearly 1.3 million United States housing properties were subjected to foreclosure activities. Major banks and other financial institutions globally reported losses of approximately US $379 billion towards the end of the first half of 2008. The first set of financial institutions to be impacted was mortgage lenders that retained the risk of payment default (credit risk). Several third party investors were also affected, as mortgage lenders had passed on the credit default risks arising from the rights to the mortgage payments through mortgage backed securities (MBS) and collateralized debt obligations (CDO). Individuals, institutional investors and other corporate entities holding MBS or CDO were now faced with significant losses as the value of the underlying mortgage assets declined. The sub-prime mortgage crisis also exposed financial institutions to liquidity risks as lenders were forced to reduce lending activities or grant loans at higher interest rates. The higher interest rate loans restricted the ability of corporations to obtain funds through the issuance of commercial paper, thereby posing liquidity challenges for several institutions. As a result, central banks, in their role of lenders of last resort, were forced to take action to provide funds to the banking sector so as to stimulate the commercial paper market and to encourage the resumption of lending to borrowers with good credit profile. The rate at which economies grew was also impacted by the credit crisis as business investments and consumer spending were curtailed due to the general unavailability of loans or the high cost of loans in cases where it was available. The United States government responded by cutting the federal reserve interest rates as well as proposing its economic stimulus package which was passed by congress in February 2008. This was necessary to alter the risk exposure to the broader economy brought on by the credit crisis and the related downturn in the housing market. Research Problem and Hypothesis While the benefits of risk management and positive risk relationships have been increasingly recognized in financial sectors worldwide, this study postulates that (i) risk relationships have not been sufficiently explored in the region and current risk management practices in the Caribbean have not kept pace with international trends on financial risk management and (ii) levels of capital being held by financial intermediaries in the Caribbean could be deemed inadequate to mitigate risk exposures. It could also be argued that where there are high levels of risk exposures in financial intermediaries in the region, the impact of risk mitigating factors are low and risk management policies, processes and procedures are less than robust. Additionally, risk exposures and regulatory capital might vary according to core business activities, risk categories or geographic location. In recognition of the existence of these relational gaps and the need to bridge them, this study will introduce principles, procedures, approaches, models and concepts in risk management, and concentrate on those risks inherent in the financial intermediaries balance sheet or risks associated with various elements of financial activities and environment. The writer will analyse the risk profile of financial intermediaries and their exposure to credit risks, funding/liquidity risks, interest rate risks and operational risk. The study also seeks to develop benchmarks for measuring risks in the region as well as a risk management scoring model with particular emphasis on the risk profile of Caribbean financial intermediaries. Sub-problems The first sub-problem is to ascertain the risk profile and relationship evident in financial intermediaries in Jamaica, Trinidad and Barbados, as well as those which may evolve consequent to the new Basel Capital Accord, Basel II, which is scheduled to be fully implemented by 2015 across all jurisdictions. The intention is to assess the risk profile and relationship in operation as a dynamic process and the likely impact of the capital accord on relevant financial entities. The second sub-problem is, using both the relevant and existing literature concerning risks, risk relationships and risk management and observation of current techniques, to ascertain throughout the course of the study, types of risk relationships that exist in credit, liquidity, interest rate and operational risk management in financial intermediaries. The third sub-problem is to provide the financial sector with a set of sound testable ideas that are systemically desirable and consistent with the future development of risk assessment. This will be done by reviewing the analyses outlined in the first two sub-problems, generating relevant model/framework of risk assessment, comparing the model/framework with real situation, identifying systemically desirable changes and documenting the results for the benefit of relevant stakeholders who are capable of applying change to the banking sector in general. Hypothesis The first hypothesis is that risk exposures (credit, liquidity, interest rate and operational risks) in financial intermediaries in Jamaica are relatively high when compared with Trinidad and Tobago and Barbados and could exhibit parasitic tendencies. This could impair the financial intermediaries ability to identify, measure, mitigate and monitor risks due to the fact that the internal control framework could be seen as less than robust. The second hypothesis is that there will be shortfalls in capital requirements specifically as a result of the introduction of the new Basel Capital Accord and more generally after taking account of specific risks not previously considered by financial intermediaries. The third hypothesis is that the cycle of analysis, application and testing will result in the implementation of rigorously defined early warning system for modelling and scoring risks and that this system will be adaptable to change, both outside and within the environment, and extendable to additional use. Justification for the Research Sound risk management practices, which include appropriate tools and techniques and the employment of relevant steps to assess risk exposure are at the heart of effective financial intermediation. However, many institutions are exposed to high levels of risks in their operations and few have put in place the relevant infrastructure to appropriately capture their risk exposures. According to the Government of Jamaica, Ministry of Finance (1998)[7]: the financial distress experienced in the mid nineties was in several ways due to the fact that many domestic financial institutions did not have the necessary risk and financial management capabilities to carefully assess the risk. As a result, they were left holding real estate and other long-term assets that could not be easily disposed of to meet their short-term obligations. The Ministry highlighted the fact that: banks in Jamaica tended to invest in enterprises that were outside the scope of their core business which had the following implication: The banks entered sectors in which their management did not have the requisite skills or expertise. The banks, when lending to related parties or parties under common control either (i) made poor and biased credit decisions; or (ii) invested in companies on less than arms length terms resulting in poorly secured loans. The banks, in many instances had fund investments in non-core businesses with short-term borrowing instruments with guaranteed high interest rates. As a result, many non-core business had to contend with an unsustainable capital structure that relied heavily on high cost loans with relatively short maturities[8]. Many studies have highlighted the risk management practices, including techniques and tools used to identify, measure, mitigate and monitor risks in industrial countries. However, few studies (note the researcher is not aware of any at the time of preparing this thesis) have sought to understand and explain the risk exposures, risk relationships and risk management practices in financial intermediaries in the Caribbean, particularly Trinidad and Tobago, Jamaica and Barbados. The study utilizes a novel approach to analyse risk exposures and risk relationships, which has not been evidenced in the literature generally and definitely not seen in research on risk management in the Caribbean region. The risk profile of financial intermediaries are analysed using ratio analysis and statistical techniques including the standard deviation and arithmetic mean coupled with a five-point scale response to determine risk relationships based on a biological science description. This study will document over a ten-year period, sectoral differences in risk exposure reflected in the balance sheets and income statements of commercial banks, merchant banks, trust companies and building societies in three Caribbean countries. The results of the research will provide a sound set of ideas for the management of risks in these institutions in emerging markets. It will also provide an enduring account of risk relationships and the implications of sound risk management practices in general. Thesis Outline and Methodology The study examines the risk management framework in emerging markets in the Caribbean region. The focus will be limited to three jurisdictions in the Caribbean region. These are Jamaica, Trinidad Tobago and Barbados. This paper takes account of four types of deposit taking financial institutions Commercial Banks, Trust Merchant Banks, Finance Companies and Building Societies. There are 8 financial intermediaries across the three jurisdictions. Elite interviews were also conducted with senior management in sixteen (16) financial institutions in Trinidad and Barbados. Interviews were held with select senior management executives in the financial institutions. Among the executives interviewed were CEOs, Senior Vice Presidents, Risk Managers, Credit Managers, Operations Managers and Treasury Managers. In Jamaica, detailed surveillance were done of all the in scope financial institutions ie, commercial banks, trust and merchant banks and building societies. Reviews of annual reports and websites of all the financial intermediaries captured in the scope of the thesis were also done. The purpose of the review of the elite interviews and qualitative reviews of the websites, annual reports and other published data was to obtain information on four risk categories, particularly on the policies, procedures and processes in place to manage risk. Twenty risk proxies were used to calibrate risk exposure across four risk types in the financial intermediaries and the countries. These risk proxies were further reduced to eight based on their relative weights and significance as a risk-sensitive measure. Additionally, eight macro-economic variables were used to assess the economic environment within each country as well as to determine the extent to which these macro-economic variables were correlated with the risk proxies. Using a Likert-type index, correlation analysis and the results of the observation and interviews, the study developed risk benchmarks and risk scores, which were later used to determine risk relationships within financial intermediaries as well as within each country. The aim was to identify the risk relationships and to provide the managers of financial institutions and policy makers with an early warning system to calibrate and mitigate risks. The study analyzed the degree to which three major economies in the Caribbean region were exposed to credit, liquidity, interest rate and operational risks and the extent to which different countries are similar or different in light of these risk exposures. The paper sought to determine the level of risk exposures across four different financial intermediary types in three Caribbean jurisdictions. It expounded on differences and similarities in the risk profile of financial intermediaries and sought to determine which intermediaries are likely to have higher risk profiles. The paper also explored synergies and alliances between the four main categories of risk under study. These are credit, interest rate, liquidity and operational risk. It disaggregated proxies for risks based on risk types and highlighted risks drivers that are significant to different intermediary types or country. Lastly, the paper explored relationship between the critical elements and proposed a model for the scoring of risks. The relational perspective to risk management envisaged risk within three basic constructs namely, Symbiotic, Parasitic and Saprophytic as well as the nexus between these constructs and the internal control framework as measured by financial intermediaries policies, procedures and processes used to manage risks. The Saprophytic Construct At this level, risk is calibrated as being relatively low. Risks outcome are systemically pleasing and financial intermediaries are making meaningful contribution to the common good. Risks and reward can thrive within a conducive macro environment and the profile of institutions balance sheet and income statement contributes positively to the risk calibration outcome. A low level of risk exposure is usually attributed to a very robust internal control framework and more effective risk mitigation strategies. The Symbiotic Construct Within the Symbiotic construct, risk relationships are generally balanced. Risk is calibrated as moderate and the regulatory interest and the economic interest are neutral. Risk management is generally integrated and there is usually a connection between the process of risk identification, measurement, mitigation and monitoring. The profile of intermediaries balance sheets and income statements are viewed as risk-neutral relative to risk outcome and the internal control framework and risk mitigation strategies used by financial intermediaries are generally adequate. The Parasitic Construct Within this construct risks are calibrated as high or very high. There is usually adverse macro-economic condition in existence and there is disconnect between the regulatory interest and the economic interest. There is a general state of disharmony in the qualitative and quantitative approaches and disunity in the way that risk is generally managed. The risk profile of institutions balance sheets and income statements negatively impacts risk calibration outcomes. A hig

Service Learning Should NOT be Mandatory For College Students Essay

Service learning is the name for forcing college students to do volunteer work as part of their college careers. The hope is that this volunteer work will give students a better sense of civic duty, and thus, be a worthy addition to college curriculums. However, this idea relies on the faulty premise that if one is forced to volunteer that one will derive the same benefits as someone who does it out of their own desire to help. Mandatory service learning will not have the desired effect, and should not be forced upon students. It is perhaps intuitive to think that by making students help others there will be a net positive; there could be no downside to volunteering time and effort to help the community. However, a more detailed inspection reveals there are many negatives, and any positive effects are just wishful thinking. To begin with, service learning wouldn’t benefit the students’ education. Indeed, many students would be unable to volunteer in their field. This negates any argument that service learning would help the students’ education. While there may be specific cases where a student with a practical major could benefit from volunteering their efforts, this would simply be a positive indirect effect. Not only that, but in many cases such students are already effectively volunteering their time in the form of unpaid internships. If schools wish students to volunteer in such a manner they should be working with charities to establish more voluntary internships. However, as soon as students are forced to volunteer for the sake of volunteering, it no is longer about helping the student. One has to ask: why it is exclusively schools that would take up this forced volunteer work? If it was really a needed benefit to s... ...he community. The only justification for having the students do the work themselves is a sense of civic duty. Unfortunately, by forcing the students to do the work, any positive sense of civic duty will be offset by negative emotions from being forced. A better way to gain the desired sense of civic duty is through additional education that addresses the problems and their causes. In the end, the idea of mandatory service learning doesn’t make sense. Works Cited: Bringle, Robet G. and Julie A. Hatcher. â€Å"Implementing Service Learning in Higher Educations† (Excerpt). Journal of Higher Education 67.2 (1996): 221-223. Print. Caret, Robert L. â€Å"Local Students Serve as They Learn.† Examiner.com. The Examiner. 20 September 2007. Web. 9 Sept. 2008. Egger, John B. â€Å"service 'Learning' Reduced Learning.† Examiner.com. The Examiner, 2 October 2007. Web. 9 Sept. 2008.

Macbeth - Downfall Of Macbeth Essay -- essays research papers

We see in the play Macbeth that when the motivation to succeed in life becomes overpowering, other people may easily influence one and elements and one may decide on wrongful actions to achieve a goal. Some of the influences on Macbeth include the witches and the apparitions, Lady Macbeth, and lastly Macbeth's own insecurities and misguided attempts to control his future. The witches and their prophecies are the first major influence on Macbeth's actions. Macbeth seems happy and content with himself until the witches tell him he will be king. He begins immediately to consider murdering Duncan. "If good, why do I yield to that suggestion / Whose horrid image doth unfix my hair / And make my seated heart knock at my ribs, / Against the use of nature?" (I, iii. 144-147). Macbeth immediately writes Lady Macbeth. "'They met me in the day of success; and I / have learned by the perfectest report, they have more in / them than mortal knowledge." (I, v. 1-3). He obviously has great faith in the witches' words. Later on, the apparitions, called by the witches, influence Macbeth by making him believe he is invincible. "Rebellion's head, rise never, till the wood / Of Birnam rise, and our high-placed Macbeth / Shall live the lease of nature, pay his breath / To time, and mortal custom." (IV, i. 106-109). Lady Macbeth is a second major influence on Macbeth. As soon as Lady Macbeth learns of the witches' words from Macbeth's letter, we learn Macbeth is c...

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CASE STUDY 1. What are the Inputs, processing and outputs of UPS’s package tracking system? Answer: INPUT: UPS’s package tracking system input is associated with a package that is scan able bar -coded label. The sender scan able label, package destination, the recipient, and the package should arrive Includes detailed information. Users downloaded by UPS or UPS website to access provided by using special software can print their own labels. PROCESSING: Package is raised before, scan able bar -coded label data Mahwah, New Jersey, or Alpharetta, Georgia, one of the centers in the UPS has transferred to the computer and sent to its final destination the closest distribution center goes. Label in the center dispatchers and traffic data downloaded every driver to know that the most efficient delivery route using special software to create, season, and location of each stop. A delivery information acquisition device (DIAD), a handheld computer, the way his or her day Free UPS enables drivers. DIAD also automatically sign users grab information as well as pickup and delivery. Package tracking information from UPS for the storage and processing is transferred to the computer network. At various points along the way from sender to receiver, bar code equipment package label and the progress of the package of Central computer data feed is used to scan shipping information. OUTPUT: UPS computer network information about users to provide delivery information or to answer customer questions can be accessed worldwide. Customer service representatives connected to the central computer, desktop computer, check the status of any package to customer inquiries and are able to respond quickly. UPS, users have their own computers or wireless devices... ...ollection options include receiving payments or can be very helpful and billing options as a business which can reduce the cost of shipping plus any third- party receiver and Shipper billed to other parties (receiver or any other person). Shipper -receiver only shipping costs or any other country in which a third party pays the duties and taxes paid to Shipper pays the duties and taxes are the options for international billing options can reduce the cost of business just for the shipping costs . Transactions with other businesses worldwide to make business easier and to get a business that can target market. Shipping cost analyzes and cost of such reports , management reports and reports as Freight generates reports , the download is available for download business analysis tool is also . This tool for accountants in business a long time and can save a lot of effort

Economic and Political Systems of Cuba Essay

The Economic System in Cuba is known to be communism. Communism can be defined as a scheme of equalizing the social conditions of life. This system considers the termination of inequalities in the possession of property as well as the distribution of wealth equally to all individuals. Therefore, the means to achieve this is by the collectivization of all private property. By extension, collectivization is the process of forming collective communities where property and resources are owned by the community and not individuals. Freedom of expression is also mediated by the state. Communism is a system that usually is unsuccessful however, the only way that communism may be achieved is if every single member of a communist society is in complete agreement with the arrangement which was mentioned above. In early Cuban Political history, there were various communist as well as anarchist organizations for example the Communist Party of Cuba which was initiated in the early 1920’s by Julio Antonio Mella, Carlos Balino, Jose Marti and Fabio Grobart. It was then later led by both the first secretary and secondary secretary: – Fidel Castro and Raul Castro respectively. In Cuba, no other political party other than that of the Communist Party of Cuba is allowed to be formed in the fear that a non – communist party which will be funded by the United States of America would intervene and claim Cuba’s independence. In comparison to other ruling communist parties around the world, the communist party in Cuba retains a stricter approach and adherence to the tradition of Marxism – Leninism and the traditional Soviet Model. In addition, the Cuban Political System is described as authentic which is based on the unique history of the struggle for equality amongst individuals as well as independence. Cuba is a republic with a centralized socialist system with a structure of the State of Republic of Cuba as follows: –* National Assembly of People’s Power * Council of State * Council of Ministers * Provincial and Municipal Governments * Judiciary System

Elements of Religious Traditions Essay

The term religion can bring up mixed emotions in people. Many people have different religious views and their traditions usually follow that religion. Religion is very vast and there are many different forms, views, traditions, and beliefs within each religion. Certain religions are monotheism, some are polytheism, and others are pantheism. Each religion encourages relationships with the divine, sacred time, sacred space or the natural world, and relationships with others. Relationships with the divine According to Molloy (2010), â€Å"All religions are concerned with the deepest level of reality, and for most religions the core or origin of everything is sacred and mysterious† (p 7). Each religion often calls the sacred by name such as Divine Parent, Great Spirit, the Divine, and the Holy to name a few (Molloy, 2010). Monotheism is a term that means belief in one God (Molloy, 2010). Polytheism is the belief in many Gods or Goddesses; the multiple Gods may be separate or a multiple manifestation of the same sacred reality (Molloy, 2010). Pantheism is the belief that the sacred as being discoverable within the physical world, in other words nature itself is holy (Molloy, 2010). Recently there are people who tend to deny the existence of any God or gods which is described as atheism (Molloy, 2010). Relationship with Sacred Time According to Molloy (2010), â€Å"Our everyday lives go on in ordinary time, which we see as moving forward into the future. Sacred time, however, is the time of eternity†(p 43). Many people have different names for this measurement of time such as the Artic people refer to it as â€Å"distant time†, Australian aboriginals refer to it as â€Å"dream time†(Molloy, 2010). Although there are many different names for sacred time they all refer to the time of eternity and each religion has a different theory on sacred time. Some people believe that sacred time is cyclical and returns to its origins for renewal. Others feel that by recalling and ritually reliving the deeds of the gods and ancestors (Molloy, 2010). Indigenous religions even structure their daily lives to conform to mythical events in sacred time which creates a sense of holiness in their daily lives (Molloy, 2010). Certain religions strongly encourage a relationship with sacred time and others tend to not worry about sacred time. Christianity for instance knows that someday Christ will return to earth however most Christians do not center their lives on waiting for this day. However some Christians live everyday as if it will be the day He returns and strive to be worthy in His eyes when that day does come. Relationship with Sacred Space or the Natural World Just like ordinary time there is also ordinary space. Sacred space refers to the doorway in which the other world of gods and ancestors can contact us and we can contact them (Molloy, 2010). Sacred space is often considered the center of the universe where powers and holiness are strongest; where we can go to renew our own strength (Molloy, 2010). In certain native religions sacred space is a mountain, great volcano, or other striking natural site. In Australian aboriginal religions Uluru (Ayers Rock) is their sacred center (Molloy, 2010). Sacred space can also be constructed into a certain shape, special building, or a boundary. For some religions, sacred space is often in the form of a church where people go to worship, pray, and learn about God; some churches are even built extremely tall to be â€Å"closer† to God. Critical Issues What should we study in order to properly understand religions? What attitude should we have when we study the religions of others? How can researchers be objective? These are just some of the complex questions that researchers should ask before attempting to study religions. Some of the issues in the first century included inability to travel, incomplete scriptures, or the translation they depended on were not accurate (Molloy, 2010). One of the main critical issues when studying religion is forming a prior opinion that can create a bias on the research. If a Buddhist is studying Christianity his opinion could be bias because of his own personal opinions on religion or a preference of his own beliefs versus the other. Conclusion Religion is sometimes defined as to join again. According to the common dictionary the word religion is defined as â€Å"a system of belief that involves worship of a God or gods, prayer, ritual, and a moral code† (Molloy, 2010 p 5). Within each religion there are specific beliefs, traditions, and values. Many religions encourage the relationships with the divine, sacred time, sacred space or the natural world. It is also crucial to identify critical key issues when studying religions. Whether someone worships one God, many gods, goddesses, or denies any existence of God or gods it is important to look inside each religion with an open mind. References Molloy, M. (2010). Experiencing the world’s religions: Tradition, challenge, and change (5th ed.). New York, NY: McGraw-Hill.