International Business Finance Essay Example for Free

International Business Finance Essay 1.Introduction This report is specific for JKX Oil Gas. She is a petroleum company focusing on exploration and production in countries of the ex Soviet Union and the Ukraine. Her management is considering weather following her competitor expansion into Far East and Oceania. In this report I am going to show analysis in two sections. The first section is analysis on motivation of cross border investment in using FDI and find out the reasons of home countries host countries encourage company to FDI. The second section is evaluating any key causes of a financial crisis and show how financial crisis affect the international trading. 2.Motivations of using FDI as cross border investment Basically FDI could be divide into three type of motivates they are market-seeking, resource-seeking, and efficiency-seeking (Malllampally and Sauvant 1999). Other than above there are a lot of academics theories, which could explain the motives behind the FDI by enterprises. In these theories I have chosen five theories that is common to be use for explain the motivations of FDI. First is international product life cycle theory (Vernon 1966), every product ought to go thought some stages from a new product to a mature product. In order to take efficient and cost advantages in different stage, production plant move towards foreign. This theory help explain the motive of manufacturing business efficiency-seeking and market-seeking in using FDI but fail to explain reason of using FDI instead of using others methods such as licensing. For example car producer such as Honda, their new car will be firstly starting design and produce in Japan during the new product stage, then shift to USA for listen to the market where have a huge demand and lastly the production will be shift to the East-Asia to produce in order to lower the production cost in the standard product stage. Second is transaction cost theory (Williamson 1993), it stated that when enterprises business is affected by market imperfection, which lead transaction cost increase. They will go international which benefit the efficiency and decrease the transaction cost. Be remind that this theory fail to explain reason of enterprises using FDI instead of using others methods and it is usually apply to manufacturing business efficiency-seeking which products are low in price, heavy, and easily to product in every where. For examples cement manufacturing industry as the raw-material is easy found in every where and easy to product also it is cheap in price and heavy so that firm will be product it locally instead of export it. Third is market imperfection approach, (Hymer 1970) assume that due to market imperfection FDI present. Theory stated that when any factors which lead failure of perfect market. Because of extra cost of cover the barriers, advantage present in foreign countries, and advantages in using FDI over licensing such as full control, unique knowledge, and skill cannot be transferred. Enterprises will do the FDI to achieve profit maximization on their business. This theory help explain the motive of efficiency-seeking in every business by using FDI when they facing market imperfection. Fourth is eclectic theory (Dunning 1993), theory stated that following factors found by enterprise FDI will be present. Firm will get advantage over particular location ownership, the advantage of have location ownership are not by selling or leasing, for the advantage a profit advantage must be gain. This theory help explain the motive of industries using FDI to take advantage of market-seeking and resource-seeking. Fifth is following competitors theory (Knickerbocker 1973), this theory stated that in oligopolies industries firm will follow her competitors to move towards foreign countries. Following competitors in order to reduce the chance monopoly in a new oversea market by her competitor. This theory help explain the motive of oligopolies industries go international for market-seeking But this theory fail to explain the reason of first mover and reason of using FDI to expand other than licensing. Eclectic theory, following competitors theory, and market imperfection approach which help explain why JKX chose to invest internationally with FDI. JKX is focusing on petroleum exploration and production of oil. It is just perfectly apply the eclectic theory because JKX is fully depending on use of local resources oil field. FDI is the only way to gain the resource by takeover the location ownership, and JKX uses the location resource to generate profit by production. Also maybe reason of addition cost on oil production JKX will decide move to other country because of the unique knowledge and skill cannot be transferred JKX need to use FDI to build new production plant. Also exploration and production oil industry in oligopolies. If JXK do not follow her competitors she will lost the potential oil field and her potential customer in new location. Moreover when JKX decides to invest internationally she needs to beware of the following such as economic risks, political risk, exchange rate risk, and cultural risks. 3. FDI impact on nation states Because of FDI bring a lot of advantages to nation states (host home), nation states attempt to encourage FDI to do so. 3.1Advantage of FDI to host country There are seven advantages of FDI to nation states, which explain why host countres attempt to encourage foreign to do FDI. First is resource transfer effects, FDI by foreign firm bring along with their capital, technology, and management skill to host country. Capital bring alone by FDI is an importance source of stable private external finance for every country especially to developing countries. For example JKX buy an oil field form the host country and invest on the oil drilling equipment and build production plant ,which is a long term investment, profit making though production ,and could not leave easily. Moreover the external finance give a big hand on the balance of payment and foreign exchange reserve which is importance element for the economic health. Technology and Management Skill are another resources bring alone with FDI, which enhance productivity and competitiveness of host country. Both of them are importance elements for success in global market when chance comes. Foreign firm provide training on knowledge and skills on how to produce and management skill to local employee in order to facility the production. These knowledge transfer direct benefits to local labors and enhance productivity and competitiveness of host country. For example in the 90’s computer parts MNCs build production plant in Taiwan by FDI, nowadays Taiwan is be came another computer parts manufacturing kingdom in Asia. Second is employment effect, FDI creating employment for host country. Foreign firms build up their manufacture plant in the host country which increases the employment directly by foreign own plant and relative industry, for example in Mexico FDI create every 1 job in the foreign production plant and create 7 job in the relative industry (Farrell 2004). Also the local trained employees may start their own business. But there will be opposite effect in market-seeking† FDI raise unemployment by forcing less competitive companies out of business as foreign firm will bring along with advance technology reduce employment need in same production, For example Wal-Mart’s entry into the Mexican food Market which decrease the margin of that industry push less competitive companies exit (Farrell 2004). But actually this effect is just base how government manage the FDI for example in the 90’s china government restrict of the sold inside market of foreign firm which protect the local employment would not be substitute. Third economic growth and local multiplier effect, high employment leads more consumption by the local country citizen. As a result encourage industries further develop to fulfill increasing consumer needs; lower prices, better quality, and more selection for consumers. It is because of further developed of the industries, which increase employment, and new products encourage consumer to do more purchase, the cycle will go on and on. Fourth credibility in international market because of demonstration of first mover success, build up a model for the followers others foreign firms will be more confident to FDI to the same country. As followers could learn the first-comer experience, enjoy the effort done by first comer in host country such as infrastructures, educated customers, trained labors, and research done. Also stop the first-mover to become monopoly. In additional the credibility may attract short-term investment others than FDI. For example India starting by the first mover to starting computer software relating industry, nowadays it became another silicon valley in. Fifth access to return markets (Malllampally and Sauvant 1999), as FDI by foreign firm increase accessing international marketing network. The network benefit to transnational systems related industry, domestic firm to getting spillovers foreign business, and wider economic of host counties, by greater the links between foreign and domestic. This also helps spread the enhanced productivity and competitiveness of host countries. Sixth tax revenue from profit (Razin 2002), profit generated by FDI contribute to tax revenues to the host country in general. But some countries may cancel out direct taxes for the MNCs to attract for investment, tax revenues will still be benefit as more consumption in local {Sales Tax} and better income of citizen {Income Tax} Seventh reinvestment within local economy, the credibility of host country established the foreign firm may reinvestment into same country by using the profit earns in there. Moreover host counties encourage foreign firms to do so as foreign firm bring the profit back to their home country may deplete the foreign reserve and the profit earned put back to host country will bring along with new benefit to host country. In additional FDI force host country improve their economic health such as policy system, industry, and better the living standard of the host country by better income, lowing price, improve quality and more selection for customer. 3.2Disadvantage of FDI to host country There are also some bad points together with FDI incoming such as, Adverse effects on local competition due to spending power and brand of MNC, MNCs become an impact on government decision due to the economic power of MNCs, Over exploitation of country mineral wealth etc†¦ 3.3Advantage Disadvantage of FDI to home country Looking on the surface impact of FDI to home country surely will be lot disadvantages follow by such as negative impact balance of payment and increase unemployment. But why home country will encourage company to do FDI aboard , FDI will benefit the country in such ways, company go aboard may increase the export due to new development demand, MNCs will bring the FDI profit back to home country that benefit the balance of payment, jobs will be create as additional need of support activity represent by FDI aboard. FDI increase the long-term competiiveness by learn from others countries. Home country could benefit from the FDI of the sunset industries to free labor force form the costly and low-value industry. FDI good to host country and long-run good to home country FDI need management and benefit to both MNCs and host government For FDI to be successful it require win-win situation benefit both MNC and Host country, but require a good control in order to manage FDI well. If the management of FDI is done badly which may result in harmful to whole host country’s economic system. On the other hand FDI going aboard not only bring alone with disadvantage to host country in the long-run which may also give a huge benefit to the home country. The following paragraph will be shown both advantages and disadvantages of FDI to nation states 4.Root causes of financial crisis  There are many underlying reason which form a financial crises such as excess capital inflow, speculation activities, poor financial infrastructure, monetary policy etc.. all these factors encourage financial crises breakout. The following is a simple flow of twin crises (Kaminsky and Reinhart 1999). Starting form establishes of credibility of a country, foreign investors will start to invest into the country because expectation of return high. When the capital going into the local economic, that increase the economic health, local money supply, economic activity, foreign reserves, and government budget. All these factors increase country credibility and once again increase the attractiveness of capital inflow. The continuous increasing expectation of return will form rational bubble (Blanchard 1979) investors and speculators will holding an overvalued currency but would not sell it yet, they believe there will be a further appreciation on the local currency. Because of more and more capital inflow, banks in the country will facing difficult in generating profit as they have too much cash on hand, the banks will decrease the liquidity ratio lend more money out of the banks which result in increase risky loan, overinvestment, over-consumption, and asset price bubble. Banking crisis will more like to happen when bubble bursts and increasing bad loan. When the Banking Crisis outbreak which decline economic activity, costly fiscal bailout, decline the country credibility and lead capital flight. (Aghevli 1999) Capital outflow, costly fiscal bailout, decline economic activity, and speculation activities fasten decline the foreign reserves that result currency crisis.

Puritan society Essay Example for Free

Puritan society Essay So far the audience is aware that Hale can be a pragmatic character because it is clear that he does not believe some of the accusations can be true, which is why he is on his rounds. The puritan theology that he relies on has brought him to be a stern character, believing that theology is a fortress, that the audiences have to decide is congenial or disagreeable.  The arrival of Cheever causes a mass silence in the room. This is done to give the audience a chance to put events into perspective and allows the tension floating tirelessly around in the room to build up. Cheever approaches the household with bad news. The audience must be feeling sorry for him, as the men seem to be friends. Giles says to Cheever, its a pity that such an honest tailor might have gone to Heaven must burn in Hell. Cheever is sympathetic but he says that he is doing what he is told. This shows differences between some of Giles friends. Proctor is willing to darken his name in order to revert the charges to Giless wife but Cheever is two faced, willing to throw away his friendship with Giles for money that he earns on his rounds. The suspense is built up even more as the audience is now eager to know what Cheever is doing in the house and what business of the court he is addressing. The audience is then stunned on the note that Cheevers arrival is because he holds the warrant for the arrest of Elizabeth. Proctor, whom has had an overt hate for Hale since his entry, is enraged as he said that Elizabeth was not charged just, somewhat mentioned. Hale, however, is just as shocked and proceeds by asking, when were she charged. The audience is really interested by this point; Miller has timed and written this section linking almost everything to a previous scene. We learn from Cheever that sixteen people had been charged that evening and all to be arrested. Cheever then begins to look around the room for any poppets. Miller has timed this to perfection as the audience is queued to remember the one that Mary Warren had given Elizabeth earlier that evening. Of course Elizabeth will not remember this after all the commotion. The audience are shown this when Elizabeth claims she has kept poppets since she was a girl. Cheever persists in his search, as her word is not reliable in court. Cheever finds the one that Mary gave to Elizabeth earlier and refuses to believe that it is Marys. This adds to the tension and also is a ploy for an even more terrible consequence. Elizabeth then goes to get Mary Warren in an attempt to prove her innocence, whilst she is away a most unimaginable discovery is made. There is a needle stuck in the belly of the poppet. Miller makes Proctor struggle to find out the significance of the needle. Whereas the audience is well aware of the significance that the needle has as this will be misinterpreted for a link to Abigail Williams being stabbed and are eager as to what Proctor will say or do. Proctor claims that she done it herself. But Cheever does not believe this statement because Abigail had accused Elizabeths familiar spirit of doing the deed. In such a puritan, god-fearing biblically run society accusing somebodys familiar spirit will mean they are telling the truth and the accused was a witch. The audience does not know this it what it means but they are able to catch on. At this point tension is at a titillating peak and the plot is steady. Hale is struck by the proof and is incapable of believing Proctors suggestion. Mary is brought down and is questioned consecutively. Her bewildered attitude as well as disagreeing opposition questioning her allows the questioners to manipulate her words and stutters to their own liking. After gathering the basic outline in all the conflicting opinions she clearly says, I made it.  Her admittance to the ownership and the placing of the needle in the poppet but this does not dissuade Cheever. He is convinced Tis hard proof! Miller has an excellent perception of the thoughts and moments that the audience are not anticipating, his pauses and hesitation in Marys dialogue give the audience an idea of how she is feeling and why she is stuttering so much. When Elizabeth finds out that Abigail is the one who has accused her, she loses her temper and says something that guaranteed her a one way ticket to jail. She must be ripped out of the world. Elizabeth, by saying this, has virtually condemned herself, and the chances of her leaving innocent get slimmer. Proctor then gets a chance to protect his wife; this appeals to the audience, as they know he is sincere and trying to forget Abigail. Proctor in a fit of rage tears Cheevers warrant and attempts to get rid of the uninvited company. Miller has opted for Hale to stay quiet throughout this confrontation to show his cowardly characteristics to the audience, as he has not said anything that he had said to the Proctors to Cheever. Proctor also knows this and his hate for Hale is again shown when he himself calls him a coward. This also shows how everyone who is a sceptic of the goings on in Salem does not want to publicise their queries in case the girls, for being too close to the truth, accuse them. Proctor keeps backing up his wife, whom knows there is no point because she will have to go whatever he does. Elizabeth is scared and the audience has now adopted a serious hate for Hale whose words are ineffective and does nothing to stop Giles, Franciss and Proctors three wives from being arrested, he is frowned upon by everyone as a fake. Before she leaves Elizabeth tells Proctor to continue as normal. The audience may be sympathetic towards Hale because they know his religious status restricts his opinion. There are a few main points when hale enters that form the rest of the play; when Proctor claims that the goings on in Salem had naught to do with witchcraft and the arrest of Mrs. Proctor. This scene is flooded with instruments that create drama, suspense and emotion provoking feeling. The character description is appropriate and lets the audience differentiate good from evil. Miller employs splendid literary skills that keep the tempo and tension levels at unbearable highs. The language is elementary and a lot of it is biblically surrounded reflecting the puritan society. His repressed feelings about the freedom of thought and speech in 1956 are all expressed without regret in the story and gives the Crucible a tailor made, captivating essence for the reader and audience.

Application Of Islamic Microfinance In Poverty Alleviation Economics Essay

Application Of Islamic Microfinance In Poverty Alleviation Economics Essay Poverty is one of the fundamental problems in developing countries. It is estimated that around 80 percent of the worlds population is living in countries where income distribution gap is widening. Poverty rate is quite high in all Muslim countries except a few countries in Southeast Asia and the Middle East. Poverty levels have also been associated with high inequality alongside low productivity. Half of the Indonesia population (about 129 million) is living below the poverty line of $2 a day. While in South Asia two largest Muslim states Bangladesh and Pakistan alone account for 122 million each living below the poverty line where as 100 million Muslims of India is also living below the poverty line. (Source: Islamic Microfinance Development: Challenges and Initiatives, IRTI website, 2007) Microfinance is a part of financial services which includes not only credit facility but also savings, insurance, and fund transfers to facilitate low-income people. The World Bank estimates that there are over 7,000 microfinance institutions; serving some 16 million poor people in developing countries. The total cash turnover of MFIs world-wide is estimated at $2.5 billion and the potential for new growth is outstanding. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) The Microcredit Summit estimates that $21.6 billion is needed to provide microfinance to 100 million of the worlds poorest families. The Summit planners said it should be possible to raise US$2 billion from borrowers savings alone and the final figure may be even higher. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) Fewer than 10 million out of the 500 million people who run micro and small enterprises have access to financial support for their business and fewer than 2% of the poor people have access to financial services (credit and savings) from sources other than lenders. (Source: MICROFACTS: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) The supporters of microfinance believed that it will help in reducing poverty and the concept became more popular in 1974 when famine struck Bangladesh. At the time, Dr. Muhammad Yunus was a professor of economics at the University of Chittagong. He subsequently started Grameen Bank which has been a wonderful success with more than 90 percent recovery rate. (Source: Short history of Grameen Bank, Grameen Bank website, 2010) Studies have also shown that during an eight year period, among the poorest Bangladesh with no credit service of any type, only 4 % pulled themselves above. But with only individuals and families with credit from Grameen Bank, more than 48% rose above the poverty line. (Source: MICROFACTS: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) In Pakistan there are 25 Microfinance institutions with the total deposit of $52.3 million which covers 1.83 million of population out of total population of 174 million (Fehmeen, 2010). Pakistan is ranked 6th in terms of population with the labor force of 53.78 million as estimated for 2009. (Source: CIA world Fact book, Central Intelligence Agency website, no date) Figure 1: Unmet Demand for Microfinance in Pakistan from 2008-2009 Source: Microfinance Hub Website From the statistical figures of 2008-2009; it can be said that the population below the poverty line is 29,928,000 million which represents 17.2 % of the total population and the unemployed population is 26,448,000 which means 15.2% of the total population; that sums up to 32.4% out of the total population of Pakistan. These people need microfinance support to improve their living standard because the people living below the poverty line are not even able to get basic necessities of life (Fehmeen, 2010). In this regard, the Financial Inclusion Program (FIP) has been implemented by SBP with support of the UK Department for International Development (DFID), which aims to transform the financial market with a clear objective to provide equitable and efficient market-based financial services to the otherwise excluded poor and marginalized population including women and young people. FIP has developed an evidence based policy and a realistic target of reaching out to three million microfinance users by the end of 2010. (Source: Financial Inclusion Program, SBP, no date) Some facts about the outreach of Islamic Microfinance in different countries are mentioned in the Table 1. Region No. of Included Institutions % of Female clients (Avg.) Total no. of Clients Total Outstanding Loan Portfolio (US$) Avg. Loan Balance (US$) Afghanistan 4 22 53,011 10,347,029 162 Bahrain 1 N/A 323 96,565 299 Bangladesh 2 90 111,837 34,490,490 280 Indonesia 105 60 74,698 122,480,000 1,640 Jordon 1 80 1,481 1,619,909 1,094 Lebanon 1 50 26,000 22,500,000 865 Pakistan 1 40 6,069 746,904 123 West Bank and Gaza 1 100 132 145,485 1102 Saudi Arabia 1 86 7,000 586,667 84 Sudan 3 65 9,561 1,891,819 171 Syria 1 45 2,298 1,838,047 800 Yemen 3 58 7,031 840,240 146 Total 63 299,441 197,583,155 564Table 1: Outreach of Islamic Micro Finance by Country Source: CGAP Survey, 2007 Islamic finance is still in its introductory phase, but it has achieved double digit growth both in Pakistan and around the world. Some of the well known Islamic finance instruments are Murabaha (Sale Contract), Musharakah (Equity Participation), Mudarabah (Partnership), Ijarah (Lease Financing), Bay Muajjal (sale on Credit or deferred payment sale), Bay Salam (Deferred Delivery Sale) etc. 1.2 Problem Statement Interest based micro lending carries high interest rates and is impermissible in Islam; hence, this study strives to analyze how the mix of debt and equity based Islamic finance contracts be used in providing Islamic micro financial services in Pakistan which has more than one quarter people living below the poverty line and huge rural population. 1.3 Objectives of the study It will identify and analyze various instruments of Islamic microfinance that can eliminate poverty effectively than conventional micro financing. It will recognize and analyze the mix of debt and equity based Islamic finance contract; used in providing Islamic micro financial services in Pakistan. It will explore the scope of opportunities for Islamic microfinance in Pakistan. It will discover the challenges that Islamic microfinance could face in Pakistan. 1.4 Importance of the study This  study  highlights the importance of Islamic microfinance to help reduce poverty in Pakistan. As the poor are becoming poorer in Pakistan due to rising inflation and very limited sources of employment, this research will discuss how the Islamic microfinance could help in poverty alleviation, equitable redistribution and employment creation. 1.5 Research Methodology This research study will inquire that how far Islamic microfinance would be helpful in reducing poverty in Pakistan. To substantiate the case for microfinance; the study will analyze five major countries where microfinance is prevalent. Panel data on four variables which include per capita income, education which will be measured through literacy rate, poverty measured through percentage of population living below the poverty line and inequality measured through gini co-efficient will be taken from the selected five countries. The period of study will be different for each country starting from when microfinance started in particular countries to the current period. Secondly, the research will identify and analyze the mix of debt and equity based Islamic finance contract which could be used in providing Islamic micro financial services in Pakistan. For this purpose, specific entrepreneurial activities with investment requirements will be identified and then the ideal Islamic mode to be used in specific entrepreneurial activities with particular investment would be recommended. 1.6 Plan of the study This study consists of five phases. Work in each phase would be reported as a separate chapter. The first chapter of study will cover the introduction which includes the background of the study, Problem statement, Objectives of the study, importance of the study and scope of research. The second chapter will cover the literature review of will the academic and practical progress in Microfinance. The third chapter will discuss the research methodology i.e. the various tools and techniques that will be used to conduct research. The fourth chapter will include the data collection and findings obtained from the analysis of the data collected. The fifth chapter will comprise the research conclusion based on the findings. 1.7 Limits of the study This study on application of Islamic microfinance in poverty alleviation would be useful and provide experiential support to future studies on Islamic microfinance in Pakistan. There exist no full fledge Islamic microfinance bank in Pakistan. Hence, the models and instruments discussed have not been put into practice and empirical analysis of performance will be hard to make. CHAPTER 2 LITERATURE REVIEW 2.1 What is Microfinance? According to Abedelhamid 1991 (p. 57-64). Microfinance is a set of financial services which provides loans to clients who are excluded from the traditional financial system on account of no or little collateral. In the third world countries, microfinance has become very popular because inflation tends to be high and volatile; government is often incompetent; and the necessary legal framework for financial services is often missing Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. Microfinance services are provided by three types of sources: Formal institutions, such as rural banks and cooperatives; Semiformal institutions, such as nongovernment organizations; and Informal sources such as money lenders and shopkeepers. Institutional microfinance is defined to include microfinance services provided by both formal and semiformal institutions. Microfinance institutions are defined as institutions whose major business is the provision of microfinance services. (Source: Finance for Poor: Microfinance development Strategy, ADB website, 2000) 2.2 History of Microfinance Microfinance history dates back to the mid of the 18th century when the philosopher Lysander Spooner was doing research on the advantages from small loans to entrepreneurs and farmers as a way to get people out of poverty. The economist Timothy Guinnane at Yale had been doing some research on Friedrich Wilhelm Raiffeisen ´s village bank movement which started in 1864 in Germany and by the start of the year 1901 the bank reached 2 million rural farmers. As per Timothy Guinnane explanation it was proved that microcredit could pass the two tests concerning peoples payback moral and the possibility to provide the financial service to poor people. Today, the expression Microfinance has its roots in the 1970s when the Grameen Bank of Bangladesh was established. At that time a new span of microfinance initiatives introduced many new procedures into the sector. Pioneering enterprises started doing experiments with providing credits to the poor people. Increasingly, it was thought that people could be relied on for repayment of their borrowings and it is feasible to provide financial services to underserved people through market based enterprises without subsidy. In 1974, Shore bank was the first microfinance and community development bank founded in Chicago for the first time in USA. (Source: History of micro finance, Global envision website, 2006) Today the World Bank estimates that more than 16 million people are served by some 7000 microfinance institutions all over the world. CGAP experts suggested that about 500 million families benefits from these small loans making new business possible. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) 2.3 Present Situation and Growth of Microfinance The year 2008 is considered as the beginning of a challenging period for microfinance in a number of countries. The economic and financial crises that reached MFIs and their clients turned calm waters into rough shores for many institutions in the industry. The year 2009 MIX Global 100 Composite Ranking captures the effects of this changing environment, where global growth rates slowed for the first time in years, and many MFIs faced stagnant or rising costs, and in some in ­stances a slow rise in credit risk. Figure: 3 Growth Pattern of Microfinance in all continents Source: MIX Global website, 2009 The 2009 edition of the MIX Global 100, surveyed 955 institutions from nearly 100 countries as illustrated in Table 2. As a group, surveyed institutions represented nearly 85 percent of the known pool of microfinance borrow ­ers, serving 72 million borrowers with 37 billion USD in loans and holding 22 billion USD in deposits from 67 million microfinance clients (Source: MIX Global website, 2009). Table 2:2009 MIX Global 100 Composite Ranking Countries with Most MFIs in Top 100 Country MFIs in Top 100 All Ranked MFIs India 20 51 Ecuador 9 44 Egypt 6 12 Philippines 6 34 Bangladesh 5 9 Cambodia 5 13 Bolivia 4 22 Bosnia and Herzegovina 4 13 Armenia 3 7 Mexico 3 27 Morocco 3 5 Dominican Republic 2 2 Jordan 2 6 Mongolia 2 4 Nepal 2 16 Peru 2 54 Serbia 2 4 Vietnam 2 5 Source: MIX Global website, 2009 Microfinance is assured as one of the tools that can decrease as well as eradicate poverty. According to Saefullah (2010) numbers of research have been conducted in order to measure the success of microfinance. The stories of Grameen Bank in Bangladesh, Bank Rakyat Indonesia (Indonesian People Bank) in Indonesia, Self-Help Group in India show the extent to which microfinance can eliminate poverty. Obaidullah (2008) has also done research that attempts to identify the glory of microfinance. Table: 3 Poverty Level and Financial Access in Bangladesh, Indonesia and Turkey Source: Islamic Microfinance Development: Challenges and Initiatives, 2008, IRTI, IDB Name of Member Counrty Human Poverty index Rank Income poverty Index Population Below Population in millions No. of poor in millions Financial access percentage (2007) $ 1 a day (%) $ 2 a day (%) Poverty Line Peoples republic of Bangladesh 85 36 82.8 45 147.37 122 32 Republic of Indonesia 41 7.5 52.4 17.8 245.45 128.6 40 Republic of Turkey 21 3.4 18.7 20 70.41 13.2 49 Impact of microfinance in household and community level components According to study of Chowdhury Bhuiya (2004) the wider impacts of BRAC (Bangladesh Rural and Advancement Committee) poverty alleviation program found that there was a positive impact on living standard as the survival rate and schooling of children improved. The Impact of microcredit on borrowers of Grameen Bank by Khandker (2003) illustrate that there was a positive impact on the households poverty reduction that availed the microfinance facility. Latif (2001) in his study on the effects of microcredit on the household saving of Bangladeshi borrowers concluded that saving-income ratio was significantly higher for the customers of microfinance as compared to poor who were not participants of microfinance institutes. Another research conducted by Zaman (2001) on the Impact of microcredit on poverty and vulnerability found that there is positive impact on income and decision making capability of poor using microfinance. Bangladesh Institute of Development Studies (2001) researched on the Impact of microcredit on savings and informal borrowings discussed that microcredit increased savings and this was more prominent in women than men. Hakim (2000) in the study Impact of microfinance program highlighted the higher social relations and mobility among women clients and the positive impact of microfinance on asset-ownership. Mosley and Hulme (1998) studied the possible conflict between growth and poverty alleviation. Their main finding is that the income and assets of the borrowers had increased due microcredit. Halder (1998) in the research identification of the poorest and the impact of credit on them asserted that the members of BRAC (Bangladesh Rural and Advancement Committee) consumed high calories as compared to non-members. Pitt and Khandaker (1996) explained in their study the Impact of microcredit on borrowers of BRAC, BRDB (Bangladesh Rural Development Board) and Grameen Bank that there was positive impact in women employment, total per capita weekly expenditure and womens non-land assets. Villagers attitude and other behaviors can be changed through credit programs. (The Challenge of Poverty and Mapping out Solutions: Requisite Paradigm Shift from a Problem-Solving and Islamic Perspective Dr. Mohammad Omar Farooq) M.A.Hamid (no date) found in his research that from 200 customers of Grameen Bank 46 were willing to join the Islamic bank of Bangladesh limited and one of the three main reasons was that this Islamic bank will provide services of microfinance within the limits of Islamic Shariah and Grameen Bank will not. Microfinance has a very essential role to play in development according to proponents of microfinance. As per UNCDF (2004) studies microfinance plays three vital roles in improvement. First of all it helps needy people to fulfill their basic needs and protect against hazards and is also related with up gradation of household economic welfare and lastly it motivates women by their participation in economy and also encourage equality. Results of a research on monitoring and evaluation of PKSF (Palli Karma-Sahayak Foundation) (2005) sponsored microfinance programs shows that absolute poverty decreased by 9% and moderate poverty reduced by 5% through 1997 to 2000. Amin et al. (2003) in his study the Impact of microcredit on clients of Grameen Bank, BRAC and ASA concluded that Microcredit program was successful in reaching poor Objective of microfinance according to Otero (1999) is not just about providing capital to the poor or fight against poverty on an individual level but it also has a responsibility on an institutional level. It seeks to create organizations that can provide their financial services to the poor, who are continuously ignored by the formal sector. According to Littlefield and Rosenberg (2004) study people that are below poverty line are not part of financial services sector of the economy so thats why microfinance institutions have established to provide solution to these issues. MFIs become a major part of financial sector of country by providing these services to poor people and hence it can also access capital markets for the funding of their lending portfolios. (Otero, 1999) The overall collision of microfinance can be analyzed on three things including level, type and its variable. Level defines its depth that on which level it has affected the target market whereas type of impact examines how it has benefited the people along with the impact variables as mentioned in fig. 2. Impact of microfinance on household can be accessed on two levels household and community through its types by considering its different variables. It can be scrutinize through income, education, empowerment and other social things as well. Level s of Impact Types of Impact Impact Variable Economic Variables: Income Household Assets Housing Access to food Human Capital: Education Health Confidence Skills Empowerment Social Capital: Social Networks Social Mobility Household Community Social Economic Figure: 2 Impact of Microfinance in House hold and community level Source: Eoin Wrenn, 2005 2.4 Challenges for Microfinance The achievement in microfinance in the world has been impressive relative to the status in the 1970s. However, a number of major problems remain. 2.4.1Policy development environment for financial sectors programs The policy environment for microfinance in many countries still remains unfavorable for sustainable growth in microfinance operations. For example, in countries such as Peoples Republic of China, Thailand, and Viet Nam, the ceilings on interest rates limit the ability of MFIs to provide increased and continuing access to an increasing segment of the excluded households. 2.4.2Inadequate financial infrastructure It is another major problem in the world. Financial infrastructure includes legal, information, and regulatory and supervisory systems for financial institutions and markets. Most governments have not focused to build financial infrastructure that supports, strengthens, and ensures the sustainability of such institutions or programs and promotes participation of private sector institutions in microfinance. The other major financial infrastructure-related problems include lack of: A legal framework conducive for emergence and sustainable growth of small-scale financial institutions, Regulatory and supervisory systems for microfinance in countries where the microfinance subsector is approaching a level of maturity, and Emphasis on development of accounting and auditing practices and professions 2.4.3Limitation of retail level institutional capacity Most retail level institutions do not have adequate capacity to expand the scope and outreach of services on a sustainable basis to most of the potential clients. Lack capacity to leverage funds, Are unable to provide a range of products and services compatible with the potential clients characteristics. Do not have an adequate network. (Source: Finance for Poor: Microfinance development Strategy, ADB website, 2000) 2.5 Islamic Microfinance According to Mufti Muhammad Taqi Usmani( no date) , from years Muslims are trying to frame their style of living according to Islam thats why they restrict themselves within the limits of Shariah which on the basis of Islam prohibits the practice of Riba or interest in any of the financial or trade activities. According to Dr. Abbas Mirakhor, Executive Director of the IMF as referred by Chaudhri (2006) An important function of Islamic finance that is seldom noted à ¢Ã¢â€š ¬Ã‚ ¦ is the ability of Islamic finance to provide the vehicle for financial and economic empowerment à ¢Ã¢â€š ¬Ã‚ ¦ to convert dead capital into income generating assets to financially and economically empower the poor Islamic Microfinance is the way of financing to the underserved population without using the concept of interest. Microfinance is already more structurally aligned to applying Islamic equity financing structures. As microfinance programs are based on group sharing of risk and personal guarantee while maintenance of trust and honesty is tied to the availability of future funds. 2.5.1 Importance of Islamic Microfinance In his famous book Wealth of Nations, Adam Smith argued that participation in religious sects could potentially convey two economic advantages to adherents. The first could be seen as a reputational signal while the poor might look alike to potential employers, lenders, and customers, membership in a specific group could convey a reduction in risk associated with the particular individual and ultimately improve the efficient allocation of resources. Second, religious groups could also provide for extra-legal means of establishing trust and sanctioning miscreants in intra group transactions, again reducing uncertainty and improving efficiency, especially where civil remedies for failure to uphold contracts were weak. (Case study: Islamic microfinance and socially responsible investment Anderson and Noland, 1988). Islamic finance techniques could give thousands of entrepreneurial poor the access to microfinance an option they might not consider if traditional, interest-based commercial loans were offered. More experimentation and practice in the field should contribute to more knowledge and a better understanding of effective loan delivery mechanisms using Islamic banking principles (Muhammad Ramzan, 1996). 2.5.2 Islamic approach to poverty alleviation All principles or laws in Islam owe their origin to its holy book the Quran and the sayings and deeds of its Prophet (peace be upon him) encapsulated in books of Hadith. A saying of the Prophet (peace be upon him) forcefully drives home the central message of Islam regarding poverty: Poverty is almost like disbelief in God.. On another occasion, the Prophet (peace be upon him) is reported to have said Allah! I seek refuge with you from the affliction of poverty (Soruce: Sahih Bukhari: read, study, search online Volume 8, Book 75, Number 379). Islam views poverty to be a curse to be eradicated through productive efforts. Poverty is in conflict with enrichment of self (nafs), which is one of the primary objectives (maqasid) of Shariah. Islamic jurists have unanimously held the view that it is the collective obligation (fardkifayah) of a Muslim society to take care of the basic needs of the poor. (Obaidullah, Muhammed (2008) 2.5.2.1Charity Charity occupies a central position in the Islamic scheme of poverty alleviation. The broad term for charity in Islam is Sadaqa. When compulsorily mandated on an eligible Muslim, Sadaqa is called Zakah. When Sadaqa results in flow of benefits that are expected to be stable and permanent (such as, through endowment of a physical property), it is called Sadaq-e-jariya or Waqf. Establish Prayer and dispense the Purifying Alms (Zakat) and bow in worship with those who bow (Al-Quran, (2:43)) The research paper by Professor Habib Ahmed (no date) asserts that Zakah play an important role in eliminating poverty and a significant impact of Zakah can be seen if the macroeconomic policies are in the alignment with poverty reduction objective. Zakah is the third among five pillars of Islam and payment of zakah is an obligation on the wealth and production of every Muslim. The primary issue with a zakah or sadaqa-based solution to the challenge of poverty is the issue of sustainability. Funds mobilized through these tools tend to fluctuate from time to time and may not lend themselves to careful planning and implementation. Further, these funds are meant mostly for the extremely poor and function as a safety net for meeting their immediate and basic needs. Benefits from waqf, assets are of course, meant to flow to the community at large and also on a sustainable basis (M U Chapra, 2008).It has been In FY 2009, approximately Rupees 150 billion were paid by people in Pakistan in charity, of which 90 percent was for the purpose of paying Zakat. (Dawn, September, 7, 2009) According to Dr Mohammad Omar Farooq people when pay Zakah should be concerned with its impact on the society in the long or short term to get the solutions for poverty alleviation. In another research conducted by Nafis Alam (no date) states in his study Islamic venture philanthropy: a tool for community development that Islamic charities are significant influential tool for sustainable community development. 2.5.3 Islamic Microfinance Products Islamic approach to poverty alleviation is a composite of a mission based and market-based interventions. Islamic Microfinance need not be restricted to not-for-profit modes alone. Islam permits for-profit trade and creation of wealth. It depends on the customer that what he/she wants to do with the money either needs just security of the money against which he/she may not claim the profit or wants to invest the money and share both profit and loss. The poor need a range of microfinance services, such as, micro-savings, micro-credit, micro-equity, micro-Takaful and micro-remittance. In the context of mainstream Islamic finance, people come across a host of for-profit modes through which such services may be provided to the poor. These could be used for microfinance with minor modifications wherever needed (Obaidullah, 2008). Micro-Savings Micro-savings is a critical financial service for poor and excluded households. Poor people want secure, convenient deposit services that allow for small balances and transactions and offer easy access to their funds. However, microfinance institutions across the globe tend to neglect this product while giving undue importance to micro-credit. The contract underlying a savings product must be free from elements of Riba and Gharar. This constitutes one of the most well known Islamic products, consisting in a cost-plus profit financing transaction in which a tangible asset is purchased by an Islamic institution at the request of its customer from a supplier. The Islamic institution then sells the asset to its customer on a deferred sale basis with a markup reflecting the institutions profit Various contractual options for designing savings products are: wadia, qard hasan and Mudarabah (Obaidullah, 2008). Micro-Credit The Islamic alternative to interest-based conventional loan is trade based or lease-based credit that permits the ownership and/or use of commodities or physical assets needed for productive ente

Ethan Frome: List of Quotes explained Essay -- essays research papers

1. ?Guess he?s been in Starkfield too many winters? This quote was found on page 13, in the introduction when Harmon Gow is explaining to the narrator who Ethan Frome is. When Harmon states that Ethan has been in the town of Starkfield too many winters leads to the narrator finding out that Starkfield and the town members become emotionally buried under the snow covered blanket of Starkfield?s winters. Winter in Starkfield is depressing and cold and it seems to rub off on the residents of the town. People of the town say he is cold and depressing, simply because he has been in Starkfield too many winters. 2.?But it was not only that the coming to his house of a bit of hopeful young life was like the lighting of a fire on a cold hearth.? This quote is found on page 33, in chapter one, which is explaining the entrance of Mattie Silver into the Frome home to assist the Fromes with house work because of Zeena?s sickness. This quote is explaining the feeling of Ethan when Mattie Silver comes into his home. Ethan was gloomy and pretty much sick of his wife and when Mattie comes to his house she brings hope and a whole new outlook on life to Ethan. Ethan feels that she is warm person and a polar opposite compared to Zeena. Her coming transforms Ethan?s cold and depressing existence. 3.?Against the dark background of the kitchen she stood up tall and angular, one hand drawing a quilted counterpane to her flat breast, while the other held a lamp. The light on a level with her chin, drew out of the darkness her puckered throat and the projecting wrist of the hand that clutched the quilt, and deepened fantastically the hollows and prominences of her high-boned face under its rings of crimping-pins. To Ethan, s... ...e way they are now, I don?t see?s there?s much difference between the Fromes up at the farm and the Fromes down in the graveyard, ?cept that down there they?re quiet, and the women have got to hold their tongues.? This quote is also found on page 140, in chapter 9, still while Mrs. Hale is telling the narrator about the Fromes. Mrs. Hale tells the narrator that if Mattie had dies, Ethan may have lived, but as things are, his existence is a kind of a living death. In addition, in chapter two, he had asked his dead ancestors, at their graves, to help him keep Mattie with him. We find that his natural ally is death and life is his enemy. Mrs. Hale believes that Mattie? surviving the accident is literally a fate that is worse than death, since the dead hold their peace, whereas Mattie and Zeena are often mad at each ther, adding to Ethan?s suffering and unhappiness.

The Three Gorges Dam Essay -- China Chinese Infrastructure

Flood control and drought relief The most significant function of the dam is to control flooding, which is a major problem of a seasonal river like the Yangtze. Millions of people live downstream of the dam, and many large and important cities like Wuhan, Nanjing and Shanghai lie next to the river. Plenty of farm land and the most important industrial area of China are built beside the river. In 1954, the river flooded 47.75 million acres (193,000 kmÂÂ ²) of land, killing 33,169 people and forcing 18,884,000 people to move. The flood covered Wuhan, a city with 8 million people, for over three months, and the Jingguang Railway was out of order for more than 100 days. In 1998, a flood in the same area caused damage to the value of billions of dollars. The Chinese government asked for support from its military to fight the flooding. Two thousand and thirty-nine square kilometers of farm land was flooded. The flood affected more than 2.3 million people, and 1,526 were killed. The reservoir's flood storage capacity is 22 cubic kilometers (18 million acre feet). This capacity will reduce the frequency of major downstream flooding from once every 10 years to once every 100 years. With the dam, it is expected that major floods can be controlled. If a "super" flood comes, the dam is expected to minimize its effect. Power distribution The electricity generated by the Three Gorges Dam project is sold to the State Grid Corporation and China South Power Grid Corporation at a rate of ÂÂ ¥250 per MWh ($32.5 US). Nine provinces and two cities consume the power from it, including Shanghai. The power distribution and transmission of the Three Gorges Dam project cost about 34.387 billion Yuan. It was completed in December 2007, one year ah... ...t into the reservoir on average per year, in time, this silt could accumulate behind the walls of the dam, clogging the turbines' entranceway. Further, the absence of silt down stream would have two dramatic effects: ? Some hydrologists think that this could make downstream riverbanks more vulnerable to flooding.[45] ? The city of Shanghai, more than one thousand miles (1600 km) away from the dam, rests on a massive plain of sediment. The "arriving silt -- so long as it does arrive -- strengthens the bed on which Shanghai is built... the less the tonnage of arriving sediment the more vulnerable is this biggest of Chinese cities to inundation..." Also, the weight of the dam and reservoir can cause induced seismicity, which occurred with the Katse Dam in Lesotho. The Benthic sediment build up is a cause of biological damage and reduction in aquatic biodiversity. The Three Gorges Dam Essay -- China Chinese Infrastructure Flood control and drought relief The most significant function of the dam is to control flooding, which is a major problem of a seasonal river like the Yangtze. Millions of people live downstream of the dam, and many large and important cities like Wuhan, Nanjing and Shanghai lie next to the river. Plenty of farm land and the most important industrial area of China are built beside the river. In 1954, the river flooded 47.75 million acres (193,000 kmÂÂ ²) of land, killing 33,169 people and forcing 18,884,000 people to move. The flood covered Wuhan, a city with 8 million people, for over three months, and the Jingguang Railway was out of order for more than 100 days. In 1998, a flood in the same area caused damage to the value of billions of dollars. The Chinese government asked for support from its military to fight the flooding. Two thousand and thirty-nine square kilometers of farm land was flooded. The flood affected more than 2.3 million people, and 1,526 were killed. The reservoir's flood storage capacity is 22 cubic kilometers (18 million acre feet). This capacity will reduce the frequency of major downstream flooding from once every 10 years to once every 100 years. With the dam, it is expected that major floods can be controlled. If a "super" flood comes, the dam is expected to minimize its effect. Power distribution The electricity generated by the Three Gorges Dam project is sold to the State Grid Corporation and China South Power Grid Corporation at a rate of ÂÂ ¥250 per MWh ($32.5 US). Nine provinces and two cities consume the power from it, including Shanghai. The power distribution and transmission of the Three Gorges Dam project cost about 34.387 billion Yuan. It was completed in December 2007, one year ah... ...t into the reservoir on average per year, in time, this silt could accumulate behind the walls of the dam, clogging the turbines' entranceway. Further, the absence of silt down stream would have two dramatic effects: ? Some hydrologists think that this could make downstream riverbanks more vulnerable to flooding.[45] ? The city of Shanghai, more than one thousand miles (1600 km) away from the dam, rests on a massive plain of sediment. The "arriving silt -- so long as it does arrive -- strengthens the bed on which Shanghai is built... the less the tonnage of arriving sediment the more vulnerable is this biggest of Chinese cities to inundation..." Also, the weight of the dam and reservoir can cause induced seismicity, which occurred with the Katse Dam in Lesotho. The Benthic sediment build up is a cause of biological damage and reduction in aquatic biodiversity.

Racial Controversy Surrounding the Assassination of Martin Luther King,

The Racial Controversy Surrounding the Assassination of Martin Luther King, Jr. The impact of Martin Luther King, Jr. today is no doubt revered. He is commonly called the â€Å"Father of Civil Rights,† and is looked upon as a national icon, in an almost presidential-type light. His achievements have not only begat a national holiday for his birthday, but also helped lead to the creation of Black History Month. However, his accomplishments were not so regaled in his own time. In fact, most Caucasian Americans refused to even recognize any ban or barrier he and his cohorts attempted to change. African-Americans were just simply not respected by most whites in the 1950s and 1960s because they were considered â€Å"inferior.† This resonates with Baldwin’s opinions of whites’ refusals to accept that they may have made a mistake, and instead of taking responsibility for that mistake, they dump it on African-Americans and other races. A good example of this â€Å"dumping† of responsibilities occurred with the assass ination of King. It may be a possibility that the many different conspiracy theories that evolved after King’s assassination were created in a way to avoid Caucasians admitting that a single white person shot and killed the head of the Civil Rights Movement. Along with the many different conspiracy theories, there has been an uncovering of faults in the FBI’s investigation, some of which include not taking African-Americans’ eyewitness testimony seriously. Martin Luther King, Jr.’s first step into the world of civil rights occurred in Montgomery, Alabama, in December of 1951. After she refused to surrender her bus seat to a white passenger, Rosa Parks was arrested for violating the city’s segregation ... ... Luther King, Jr.: Conspiracy Theory #4†. Infoplease. 8 Apr. 2004 . Frank, Gerold. An American Death: The True Story of the Assassination of Dr. Martin Luther King, Jr. and the Greatest Manhunt of Our Time. Garden City, NY: Doubleday, 1972. â€Å"King Report—Part 2†. U.S. Department of Justice. 8 Apr. 2004 . "Martin Luther King, Jr.". Encyclopedia Britannica. 2004. Encyclopedia Britannica Online. 8 Apr. 2004. Library Gateway, Champaign-Urbana, Illinois. . Ripley, Anthony. â€Å"Funeral Is Ignored by Whites But Some Atlanta Stores Close.† New York Times 9 Apr. 1968: 1-2. ProQuest Historical Newspapers The New York Times. Library Gateway, Champaign-Urbana, Illinois. 11 Apr. 2004 .

An Analysis of My Fair Lady

HIS first big number, â€Å"With a Little Bit of Luck† was hilarious, and I think I enjoyed It more than â€Å"Get Me to the Church on Time† even though the latter Is the song you first think of associating with his character. HIS two dustmen friends were perfect as well, the three of them did the funniest little gig and the harmonize they did on the refrain was spot on. Scarcest sounded so exactly like Rexes Harrison it gave me chills. I have seen the 1964 film version of My Fair Lady eternally hundreds of times, I'm pretty sure I wore out the VS. version that my parents had when I was very young.I can hear Harrison reciting some of the most famous lines in my head. When Scarcest said â€Å"She's so De-Al-callously low, so HO-rivalry dirty,† the hairs on the back of my neck stood up. The best number that Higgins did was probably â€Å"I'm an Ordinary Man†. The orchestra was fabulous especially In that song. â€Å"Vive Grown Accustomed to Her Face† has to be a close second. Aurora Florence played Elise Doolittle. Just because she wasn't my favorite character In this particular reduction does not mean she wasn't wonderful, because she was.She obviously worked very hard on her accents, and really she had the most work in that area to do since she had to learn both a Cockney accent and a proper English one. There was a few times where her Cockney fell flat, however. It seemed like she was concentrating too hard on the most â€Å"important† lines (â€Å"I washed me face an' ‘ands before I come, I did†, â€Å"C'mon Dover, move hay blooming' ears†) and I became aware that she was doing an accent, which is exactly what you don't want to happen, it breaks the magic. That Ewing said, Ms. Florence has a beautiful singing voice and played a very touching and convincing Elise.The costumes were unbelievable. All of Elijah's costumes were replicas of the costuming done in the film version. Even down to the flower girl outfit and the green skirt and white blouse that she wears In the â€Å"The Rain in Spain† scene. I didn't really realize It until the scene at the Ascot racetrack when Elise emerges In that white dress with the horizontal black and white ribbon and the enormous feathered hat. I'm pretty sure I squealed. My favorite costume of Elijah's is of course en gown Tanat seen wears to ten Massey Ball Ana ten costume gleaner 01 disappoint.The Jewels dripping from Elijah's neck, ears, and wrists (not to mention that gorgeous tiara) seemed even more dazzling in the bright stage lights than they did in the film version. To summarize, this was the best production that Vive seen outside of Chicago or SST. Louis. I would argue that it was done as well or better than most of the productions Vive seen at the Lyceum as well. Big League Productions has its own website, and is touring extensively all over the country. If you get the chance to see this play, Jump on it.