On the Absence of Self-Control as the Basis for a General Theory of Crime Essay

Self-control theory theorizes the single most important factor behind crime is an individual’s lack of self-control. This is explored and explained much more in-depth in A General Theory of Crime. In this book, Gottfredson and Hirschi theorized that low self-control is the root to all crime at all times and ultimately the general theory of crime. They referenced back to the cause of low self-control describing the parenting that they claim is to blame and therefore theorized that bad parenting leads to low self-control that leads to crime, making low self-control the root of all crime. Gilbert Geis, a criminologist, has dissected the theory and found many deficiencies regarding its applicability to all crime. Although Geis admires the attempt to generalize a theory to explain all crime he also admires a saying that states â€Å"nothing is more tragic than the murder of a grand theory by a little fact† (p. 77). Through many examples of different crimes, criminal behaviors, and scenarios, Geis was able to dispute the self-control theory in regards to: its definition of crime, the matter of tautology, its discussion of criminal law, its inclusion of the acts analogous to crimes, exceptions to the theory, the role played in the theory by the concept of opportunity, its views about specialization in criminal behavior, its handling of the matter of aging, how it deals with white collar crime, research on the theory, ideological issues, and child-rearing and the theory. How much variance can the theory explain? There should be one theory per one type of crime. It is not likely that any contributing variable is applicable for all crimes. This is the idea that fueled Geis to dispute the claims made by Gottfredson and Hirschi. The idea of creating one general theory is too great of a goal where as a more modest and effective goal would be to create a family or group of theories to explain the root of most crime. It is believed by Geis that this self-control theory will be sloughed off as a general theory to explain all crime. Everything should be made as simple as possible but not simpler than possible. Research and facts that are incompatible with the theory should not have to be explained away or shaped to fit within the patterns consistent to the theory. A study conducted in 2007 by Cretacci examined self-controls ability to explain different forms of crime and whether the support that it has gained has been exaggerated. The results collected from these tests indicated that self-control theory is a predictor of probability of involvement in property and drug crime but is practically silent in its ability to explain crimes of violent nature. In addition to this, Cretacci also has found many logical deficits that exist in many explanations the theory is supposed to serve. One particular deficit is the idea of the stability of self-control. According to Gottfredson and Hirschi the level of self-control an individual possesses levels out around the age of 7 and remains the same throughout the individual’s lifetime. This information was only supported by one resource. Questioning this claim, Turner and Piquero conducted a study in 2002 to reexamine the resource utilized by Gottfredson and Hirschi that resulted in mixed support for their claim. Geis feels that the idea of explaining a massive field with one general theory is impossible. This belief applies to all human acts and broad categories such as criminal behavior. There are too many variables within a broad category or topic as such to be fully explained by one explanation. Human nature drives us to believe such easy explanations for sake of simplicity and solidity and this is often why individuals tend to hold theories such as this for truth even when factual research and support contradict said theory. A famous scientist once said â€Å"Nothing is more surprising than the way in which a theory will continue to survive long after its brains have been knocked out† (p. 177)

Hunting skills Essay

Without hunting we would all be dead. Our ancestors needed to hunt for food and clothing. Hunting is very important to our human history. Today hunting is not as significant to some people, the populaces who hunt these days hunt for food or they hunt for a hobby. To hunt successfully, you need patience, the equipment and skill. Patience is one of the key ingredients to a good hunt. One of the hardest things to do for me is being patience because half of the time you are sitting (or standing) in one spot looking for the animal and if you see the animal you got to debate whether you want it or to look for a better animal. If it is not in a good position you got to wait for it to move to get a good shot. Having patience is one of the best things to have when hunting. Having the right equipment when hunting is like going to school with a pencil it is common sense. The weapon is the most important so you can get the animal, but you need different weapons for different animals like 22. is good for hunting grouse, not for hunting a moose. Clothing is second; you do not want to go hunting in a T-shirt and jeans there is clothing made just for hunting. The right gear is vital to a successfully hunt. Skill is everything you need to be a great hunter. First a skilled hunter would know how to find the animal, where it lives. Second you need to be a good shot because you do not want to miss the animal then it would get scared and run away. Also you do not want to shot the animal more than once because the meat would get ruined. Skill is all you need to have a good hunt. Hunting is a way of life and a hobby to some. People have been hunting throughout the ages and are still hunting today.

Mining in the Philippines Essay

A. Introduction The Philippine Government believes that a well-developed minerals industry is an option that can catalyze economic development and community empowerment. Minerals are part of its national patrimony, hence there is a big responsibility to maximize the benefits that can be derived from their utilization with due regard to the protection of the environment and without sacrificing the interests of communities. The legal and administrative framework governing the minerals industry in the Philippines is contained in Republic Act No. 7942 (otherwise known as the Philippine Mining Act of 1995) and given flesh by its revised implementing rules and regulations (Administrative Order No. 96-40) and its subsequent amendments. These policies advocate the sustainable development of mineral resources in the country. While both the Mining Act and its regulations provide a strong focus on environmental and social management, they continue to be the subject of debate by some non-government organizations who are questioning the compatibility of extraction and utilization of minerals with sustainable development. Also, they have questioned the constitutionality of the major provisions of the Mining Act governing the participation of foreign-owned corporations in the exploration, development and utilization of these mineral resources by filing a case at the Supreme Court in February, 1997. After eight years of study, the high court initially decided to sustain the charge of the contesting parties. However, after successful presentation of arguments by Government and industry on the merits of allowing foreign investors to participate in the development of the minerals industry, the case was finally resolved in December 1, 2004 when the high court reversed its earlier decision and upheld the constitutionality of the contested provisions in the Mining Act. With this legal impediment removed, exploration and development activities in the Philippine minerals industry is due to become vibrant once again. Compared to previous policy regimes on mining, the Mining Act calls for a greater responsibility from Government and the industry. Mining companies are expected to work closer with stakeholders to improve the quality of life within the communities where they operate. As regulator, Government, on the other hand, has the responsibility of establishing and maintaining the enabling environment for a sustainable development of the industry. Minerals development in the country is led by no less than the President of the Republic of the Philippines. In her declaration of a policy shift in mining â€Å"from tolerance to promotion†, minerals development was elevated among the priority economic activities in the country during her presidential tenure. Early this year, she signed Executive Order No. 270 which approved a national policy agenda on revitalizing the minerals industry based on the principles of sustainable development. From this order, a Minerals Action Plan (MAP) was subsequently formulated by Government to chart a roadmap for the future development of the minerals industry. Minerals development is now an important component of the Medium Term Philippine Development Plan 2004-2010.

Organisations & Behaviour Learning Organisations Essay

Organisations & Behaviour Learning Organisations - Essay Example A learning organisation intentionally designs the structures and strategies in order to enhance and maximise the learning of its employees. (Dodgson, 1993) With the changing environment of business and advancing technology the notion of the Learning organisations has gained much more importance. Learning has become an important characteristic of an organisation in order to compete in the global business. Learning is a volatile and dynamic concept through which the process of updating in an organisation takes place. With the growing size of the corporations and continuous innovations in the field of technology the individual learning has transformed to the notion of the organisational learning. The notion of learning plays an important part in the progress of an individual just like that the learning on the organisational level plays an important part in the growth of an organisation. The organisational group of people can define the organisational learning as the sum of the learning activities of the individual, which takes the shape of combined effort. (Dodgson, 1993; Fiol & Lyles, 1985). An organisational learning program should be designed in the way that it is not lost when the members of the organisation leave the organisation. ... ive environment of the business in today's high pace changing business environment enhancing the learning capabilities of business is the solution of half of the problems. (Prahalad & Hamel, 1994). Equally important is the creation of an unlearning organisation which essentially means that the organisation must forget some of its past. Thus, learning occurs amidst such conflicting factors (Dodgson, 1993). Most of the leading companies of the world like Shell were among the first to embrace the notion of learning. In Shell Arie de Geus described learning as the only strategy to compete effectively. Hence learning organisation can be defined as "The essence of organisational learning is the organisation's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own" (Dixon, 1994) "A Learning Company is an organisation that facilitates the learning of all its members and continually transforms itself" (Pedler, Burgoyne & Boydell, 1991) "Organisations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to learn together" (Peter Senge, 1990) The following are the important characteristics of the learning organisations: Learning organisations adopts the external environments. They are flexible and continue the process of change. Depicts the combination of individual and collective learning. Keeps on learning with the outcomes. Learning can be done in two ways. 1) Single loop 2) Double loop In single loop learning people learn in a way prescribed to them by the organisation. In double loop learning people, people not only learn in a

From Evaluating a Skilled Care Initiative in Rural Burkina Faso to Article

From Evaluating a Skilled Care Initiative in Rural Burkina Faso to Policy Implications for Safe Motherhood in Africa - Article Example The study also reveals humans as prejudicial, for failing to put in place universal policies that would incorporate poor people as well. (Meda, et.al., 2008). The research questions of this study include: what practices lead to the rise in maternal mortality? What is the role of safe motherhood policy in alleviating fatalities of motherhood? How can these alarming rates of mortalities be reduced? The purpose of the research is to study the current situation of motherhood safety, identify contributing factors and recommend possible solutions to the problem, through the generation of evidence-based policies that would be useful in promoting safe motherhood programs in Burkina Faso (72-74). The type of research design used in this study is a descriptive, evidence-based design, carrying out studies in different settings and providing the factual representation of results from the field. It involves naturalist studies, drawing citations from case studies, intent observation of human behavior within the study settings of Burkina Faso, and use of surveys. It also involves the review of the literature, this has elements of Review design. The findings of this study reveal that for safe motherhood to prevail, three main issues have to be addressed: user fees, human health professionals and geographical access to health facilities by the mothers. Additionally, owing to the importance of skilled attendance at delivery, effective health policies should be established to achieve its successful implementation. Other policies that have emerged to be important in such implementation include fostering maternal referral service, to take care of emergency procedures; promoting community mobilization to encourage women to use maternal health services; and abolishment of user fees to cater for poor women as well (73-76).

Thermodynamic Cycle Analysis Coursework Example | Topics and Well Written Essays - 1500 words

Thermodynamic Cycle Analysis - Coursework Example 2. You should set the initial conditions (green boxes) to reasonable values, explaining your choices. You should also explain the effects that increasing or decreasing these values have on the model. The initial conditions for density of air, ambient pressure, and ambient temperature for the engine have been input in the relevant green boxes in the excel file. The air pressure at sea level is 1.225 kg/m3, rounded off to 1.2 kg/m3 (Ahrens et al. 2012). This is at a temperature of 15Â °C (The Engineering Toolbox 2013). This air density is chosen because it is the density of air present at sea level. The ambient temperature is set at 300 K because this is generally taken as the average room temperature. The ambient pressure is chosen as 1.000 bar because the standard atmospheric pressure is generally indicated as 1 bar, which is equated to 100,000 Pa (Ahrens et al. 2012). Air density affects the pressure in the cylinder, ambient pressure affects the power generation and ambient tempera ture affects the efficiency of the engine. The effect of increasing the given value of air density would be that the pressure in the cylinder will increase for the compression ratio mentioned in the table. There will be more air to mix with fuel if the air density is high and therefore, there will be more power. Increase in the pressure at the same temperature will result in increase in power generation. Increasing the given value of ambient pressure will cause an increase in the maximum pressure in the cylinder. This will in turn increase the power and torque of the engine and vice versa. At low pressure, the air per cubic meter is lesser due to lesser pressure. This will lead to a reduction in performance of the engine. This effect is dependent on the speeds, as shown by Shannak and Alhasan (2002). At a low speed of up to 2500 rpm, volumetric efficiency and fuel consumption of the engine are found to decrease at with decrease in ambient pressure. On the other hand, at a higher spe ed of 3000 rpm, engine performance is found to decrease with increase in atmosphere pressure. Furthermore, while it can be assumed that at higher pressure the power and torque of the engine increases, there are more structural loads on the car and the fuel consumption is also increased (Ayers 1997). If the ambient temperature is reduced, the efficiency of the engine will increase. Increase in the ambient temperature results in a reduction in the engine efficiency as well as output (Energy and Environmental Analysis, Inc. 2008). All engines are known to have a better performance at lower temperatures (Ayers 1997). This will happen because reduction in ambient temperature will cause a higher energy transfer to the crankshaft. Thus, the energy loss will be reduced and the engine will have higher efficiency. 3. You now need to select suitable values for the polytropic index for compression and expansion (pink boxes) explaining your choices with reference to adiabatic, isothermal and pol ytropic processes and the differences between them. The suitable values for the polytropic index for compression and expansion have been input into the relevant pink boxes in the excel file. The values are given as 1.3 and 1.2 respectively for polytropic index of compression and polytropic index of expansion. The polytropic index of compression for petrol engines is generally reported as 1.3 (Huleihil and Mazor 2012). A polytropic index of 1 is considered isothermal while that of 1.4 is considered adiabatic (The Engineering Toolbox 2013). In our engine, the

Fashion and Celebrities in time of Modernism Essay

Fashion and Celebrities in time of Modernism - Essay Example The essay "Fashion and Celebrities in time of Modernism" talks about Fashion and Celebrities in the Modernism era. Paul Poiret and Madeleine Vionnet share the tribute for liberating women from their corsets. Swan bill, S-bend, or â€Å"health corset† was designed to ease pressure on the diaphragm and stomach and take the shape of the natural figure of the body of a female. Gibson, an American graphic artist designed the â€Å"Gibson Girl† hair style that was an ideal description of the gorgeous, autonomous American woman at the twist of the 20th century. A little boy kneeling down visualizes Gibson Girls magnifying him under a pair of lens, like an insect. Mariano Fortuny designed a Delphos Gown which was a finely pleated silk dress. Modernism at the same time has to do with futuristic, which is always connected with streamline and simplicity. One of the famous artist in the modernism faction was Pablo Picasso‘s cubism and futuristic. This is best demonstrated by the revolutionary fore-front leader in fashion, Paul Poiret with his illustrious lampshade dress in the year 1992 that depicted the best impression of modernism in fashion with simple lines and vivid color. Geometric patterns are among the common elements that can be seen in modernism. The space-age modern giant Pierre Cardin, in his design that combined esthetic strong lines and geometric shapes that were simple and remarkable, best illustrates these modern patterns. His style was simple, straight forward and emphasized some minimalism of ornament.

Death and dying Research Paper Example | Topics and Well Written Essays - 750 words

Death and dying - Research Paper Example Religiously-motivated terrorism is seen in Afghanistan (Walker, 2011) and in America (Robinson, 1999) and throughout history and all over the world. Religion-inspired genocide was seen in the Crusades and in the treatment of the Tibetans by the Chinese government (Kopel, 2010). Religiously-motivated cult suicides, such as the People’s Temple Jonestown Massacre (Ross, 2001) or the Heaven’s Gate group suicide in which 41 died (religioustolerance.org, 1997), are seemingly less rare than they used to be. There are laws against killing, yet the government reserves the right to kill for punishment or to kill in war. They can even create a justification to kill for experimental purposes (Educational Foundation for Nuclear Science, 1970). The interpretation of law is complex. Another death and dying controversy centers around whether an individual has a fundamental right to die. The US Constitution talks about the right to life and liberty, but does not specify whether one’s liberty extends to the right to decide when to die. Dr. Kevorkian was a modern day Apostle , evangelizing for this right in society. He argues that everyone has that right and that doctors have the right to help people in carrying out a decision to end their own life (Nelan & McBride/Detroit, 1993) There is also a controversy around the meaning of near death experience. Some believe it to be a spiritual experience that comes with death and explains where you go after death , while others argue that it is just a result of the compression of the optic nerve and cerebral anoxia (Blackmore, 1998) and carbon dioxide in the blood (Science Daily, 2010). Some people meet Jesus or relatives and take it literally, while skeptics look for alternate explanations. There is controversy around how to dispose of the dead person’s corpse. Some people want to be buried, while others want to be cremated. There are

Plea Bargaining Assignment Example | Topics and Well Written Essays - 250 words

Plea Bargaining - Assignment Example On the part of the prosecution, the advantage is the assurance of having a conviction, albeit for a lesser crime or minimal penalty, over the possibility of the accused walking off with an acquittal. On the part of the defense, the benefit is the chance of being convicted to a lesser offense or for the same offense for a significantly lighter penalty over the possibility of a conviction on the original charge and for the maximum penalty [Premo v.  Moore (Docket No. 09-658)]. Finally, especially for high profile parties to case, a plea bargain avoids prolonged trial which means less publicity and media frenzy. It is admitted that a criminal prosecution is an action of the State and the prosecutor represents the State; nevertheless, the victim needs to be consulted in the process of plea bargaining. The victim suffered from the criminal act and will have difficulty in overcoming the trauma and in moving on if he still feels that he has never been truly vindicated with the plea bargai n deal. I agree with plea bargaining. Although it is never a perfect system, it sure does make the wheels of our criminal justice system move forward for the common good. Reference List: Jeff Premo v. Randy Joseph Moore, Docket No. 09-658. Accessed on May 26, 2011. Available at http://www.supremecourt.gov/opinions/10pdf/09-658.pdf

Racial Profiling Essay Example for Free

Racial Profiling Essay A person should not be judged due to their appearance. Today skin color makes you a suspect in America. It makes you more likely to be stopped, more likely to be searched, and more likely to be arrested and imprisoned. When police officers stop or charge a person based on their race; that’s racial profiling. Racial profiling has been occurring around the nation for years. Statistics show that if a Caucasian man and an African American man are both driving a nice car and speeding at the same time; the police officer is most likely to stop the African-American man. Not only is racial profiling wrong, but is disrespectful to minorities, and should be illegal throughout America. Racial profiling should be illegal because it causes discomfort and humiliation to many minority citizens, lack of unity in the American people, and the possibility of real criminals getting away because he is not a minority thus becoming a threat to society. Racial profiling causes a huge discomfort and humiliation to many minority citizens. New Jersey officials admitted to racial profiling on April 20, 1999. The report showed that racial profiling practices in New Jersey are not just an insight. The report recognized the targeting of African American and Latino drivers to troopers who abused their positions by ignoring the rights of minorities. Police officers dont understand how degrading and humiliating this can be. Yes racial profiling can be used by countries to fight crimes thus giving security to its citizens, but it also causes a discomfort to minorities. Additionally, the more police continue to arrest citizens based on their race, cultural background, and religion the more we lack unity in America. When police officers offend minorities by racial profiling, it makes the country divide even more. You would think that after the civil rights movement people would become as one; however, racial profiling only makes it worse. How can we unite as a country if we can not look past the surface? Racial profiling is a great divider among the people in America; if America can not look past its differences this problem will worsen, and then America, the land of the great, will fall. Don’t ask what the police can do to make the situation better-but what can we do to help the police make the  situation better! The Possibility of real criminals getting away is becoming a threat to society because police are overlooking the fact that he or she is not a minority. If a detective is given a description that does not include the ethnicity of the suspect, they automatically search for a suspect that has the ethical background of the African American, or Hispanic decent. This happens because African-Americans and Hispanics are known for causing the most crimes, which is why we need to stop the racial profiling. With that being said, this inevitably disregards all the possible suspects who are not of the minority decent. Even though racial profiling is used by police to narrow down their search for the possible suspects, minority citizens become more intensified with the fact that they are the ones being targeted and accused for such crimes that they did not commit. To conclude, racial profiling is a conflict all around America. We as citizens in America need to our best to stop racial profiling; I reiterate we need to try our best to stop racial profiling! I heard this quote once â€Å"United we stand, but divided we fall.† This quote should urge you to want to put an end to racial profiling. Racial profiling is something that may never stop in America. It is wrong and unjust. Still, it is something worth fighting for, for the many who suffer because of the problem and for this country in general. Everyone has different opinions on Racial Profiling, some people say there are benefits or others have negative impacts on racial profiling.

Death In Shakespeares Hamlet

Death In Shakespeares Hamlet The Issue Of Death In Shakespeares Hamlet And Its Relation To The Renaissance Thinking The issue of death is inseparably linked with a traditional idea of tragedy. Such ancient dramatists as Aeschylus, Euripides, Seneca and Sophocles implemented the theme of death into their dramatic works to reflect the essence of their own times and the attitude of ancient people towards death. Their treatment of death was presented through serious and tragic elements that intensified a portrayal of certain events and characters, but the concept of death was restricted by the ancient religious dogmas. The Renaissance gave birth to new visions and interpretations of various issues of existence, especially concerning life and death. According to William Engel (2002), The decline and decay of every individual is an old theme with many ways of being expressed during the Renaissance (p.14). Although William Shakespeare, a famous English dramatist of the Renaissance period, constantly applies to various aspects of death in his tragedies, he goes beyond the ancient and Renaissance conceptio n on death. Shakespeare interprets the issue of death through both tragic and comic elements, making an attempt to solve one of the most crucial issues of that era. The dramatist revives some medieval customs associated with death and interprets them through the Renaissance vision. His idea of death is connected with both religious dogmas and atheistic values; for him, death simultaneously embodies everything and nothing. The aim of this essay is two-fold: 1) to analyse the empowerment of death in Shakespeares play Hamlet and 2) to evaluate the concepts relation with the Renaissance thinking of Michel de Montaigne, Thomas More, Sir Walter Raleigh and Desiderius Erasmus Roterodamus. In Renaissance England death was perceived as a mysterious phenomenon that aroused debates among Elizabethan philosophers, priests and writers (Cressy, 1997, pp.465-468). The lack of knowledge in regard to various diseases resulted in constant increase of mortality rates. Thus, death was regarded as a leveller that eliminated social inequality, that is, both the poor and rich could die of an incurable illness or be murdered (Duddley, 1999, pp.277-281). Executions and mutilations were usually conducted in public and were rather popular among certain groups of British population. As Michael Neill (1997) puts it, death and other funerary issues constitute a crucial part of any Elizabethan drama that is aimed at transforming individual death into a common recollection (pp.12-17). During Elizabethan ruling various funeral images and buildings were created in Britain, so that people could constantly think of their mortality (Gittins, 1984, pp.140). Death became an integral part of British existence; as Nigel Llewellyn (1991) claims, Images reminding people about their own mortality were to be found in all kinds of public and private situations In early Modern England, Death always accompanied the individual on the streets or at home among the family (p.25). Thus, Renaissance literature reflects this aesthetics of death, as Neill claims (p.356). In this regard, William Shakespeares Hamlet is also overwhelmed with characters deaths that usually come out from revenge or deception. This is just the case with almost all principal characters of the play. For instance, Laertes, Ophelias brother, is masterfully deceived by Claudius and dies. Claudius makes Laertes avenge Hamlet who is accused of the murder of Laertes father. As Claudius claims, Laertes, was your father dear to you? / Or are you like the painting of a sorrow, / As face without heart? (Shakespeare, 1985 4.7.107-109). Although Hamlet makes an attempt to apologise for Polonius death, Laertes refuses to forgive him, because he feels fury and anger, as his sister Ophelia and his father Polonius are dead. Laertes utilises the poison sword during the dual, but Hamlet accidentally changes the sword and kills Laertes. Ophelias death does not fall under the category of revenge; instead her suicide is closely connected with her sexual desires towards Hamlet. As Jonathan Dollimore (1998) puts it, Death inhabits sexuality: perversely, lethally, ecstatically (p.xi). As Ophelia experiences strong desires for the P rince, she implicitly wishes death. Dollimore (1998) demonstrates that there is a close connection between sexual desires and death; the Renaissance ideas on love reveal that love is a changing phenomenon, and if it is so, sexual desires are also exposed to changes. With the loss of love and desires a person starts to feel a desire for death. According to Dollimore (1998), For the Jacobeans, as for us, what connects death with desire is mutability the sense that all being is governed by a ceaseless process of change inseparable from an inconsolable sense of loss (p.xii). Such a thought is consistent with a Christian dogma that human desires bring destruction and death, as is just the case with Eves desire for an apple. Claudius death also conforms to the Christian principles; he is punished for his cruel actions and is killed by Hamlet. Claudius obsession with wealth and power results in many deaths and troubles; thus Shakespeare reveals that Claudius deserves death. But despite so many deaths, Shakespeares treatment of the issue of death is especially obvious through his portrayal of Hamlet who is presented as a person preoccupied with the idea of death and the Ghost of King Hamlet. It is through these characters that the dramatist reveals his ambiguous representation of the principal theme. From the very beginning Hamlet reflects a youthful idolization of death, living life as a journey toward death (Engel, 2002, p.10); although he is afraid of the Ghost, he tries to get in touch with him. Initially Hamlet is anxious about death, because he does not know what awaits him after death. Hamlet reflects his anxiety in his famous soliloquy To be or not to be, where he demonstrates the controversy of the issue of death. As he claims, But that the dread of something after death, / The undiscovered country from whose bourne / No traveler returns, puzzles the will / And makes us rather bear those ills we have / Than to fly to others we know not of (Shake speare, 1985 3.1.86-90). However, as Hamlet collides with cruelty, murders, injustice and deaths, he seems to form a certain unconcern towards death. In his search of revenge, Hamlet thinks much about death and afterlife. But these attempts to revenge for his father are only a prerequisite to Hamlets thoughts of committing suicide. This obsession with death gradually drives him mad; William Shakespeare demonstrates this obsession with implicit mockery. For instance, when Hamlet kills Ophelias father, he is not able to remember, where he hides his body; instead he starts to madly speak about the worms that eat a dead body. Shakespeare demonstrates that even Hamlets appearance shows his obsession with death; he wears black clothes and looks depressed. In the graveyard scene Shakespeare intensifies Hamlets preoccupation with death, revealing Hamlets gloomy thoughts. As he claims, No, faith, not a jot; but to follow him thither with modesty enough and likelihood to lead it; as thus: Alexander died, Alexander was buried, Alexander returned into dust; the dust is earth (Shakespeare, 1985 5.1.201-206). In fact, the image of the grave is shown several times throughout the play to reveal the characters attitud e towards death. With the exception of Hamlet, all characters demonstrate fear and pity at the sight of the grave that they associate with death. As Hamlet constantly thinks of death, he does not value his own life, as well as other peoples lives. As a result, Hamlet appears to be also responsible for the death of Ophelia, Claudius, Polonius, Guildenstern and Rosencrantz. Thus, Hamlets obsession transforms him from a miserable youth into a cruel murderer. However, contrary to other characters deaths that are portrayed with a certain degree of irony, Hamlets death is depicted in more serious terms. From the very beginning of Shakespeares play each death seems to be blackened and is soon forgotten by other characters. For instance, Hamlet demonstrates that his fathers death is already neglected by people, although King Hamlet died only a couple of months ago. When Horatio claims, My lord, I came to see your fathers funeral, Hamlet responds: I prithee, do not mock me, fellow student. I think it was to see my mothers wedding (Shakespeare, 1985 1.2.183-185). Such an ironic viewpoint reveals that even the most generous people are forgotten. The death of Polonius is also ignored by the principal characters; Ophelia and Laertes are too preoccupied with their emotions and feelings to remember their father, and Hamlet who accidentally kills Polonius expresses o nly some sympathetic words: Thou wretched, rash, intruding fool, farewell (Shakespeare, 1985 3.4.38). Ophelias death is described in even more ironical portrayal, as the dramatist presupposes that her death is a result of suicide and asks: Is she to be buried in Christian burial, when she wilfully seeks her own salvation? (Shakespeare, 1985 3.4.38). Similar to Ophelias death, the deaths of Gertrude, Claudius, Guildenstern and Rosencrantz are able to arouse only sympathy in readers. In this regard, Hamlets death stands out against a background of other deaths; it evokes respect and powerful emotions towards the character. Although Hamlet expresses irony to death throughout the play, his death is a tragedy for those who knew him. As Horatio claims, Now cracks a noble heart. / Goodnight sweet prince. And a flight of angels sing thee to thy rest (Shakespeare, 1985 5.2.397-398). Hamlets death is the tragedy for the whole country, because it has lost its noble king and can hardly find another great person. Fortinbras considers that For he was likely, had he been put upon, to have proved most royal Speak loudly for him (Shakespeare, 1985 5.2.443-446). Hamlets noble death corresponds with the ideas of death maintained by such a Renaissance philosopher as Michel de Montaigne (1910) who claims that death uncovers the true essence of a person. According to him, a person can be really judged at his/her last moments. The similar attitude towards death is revealed by Sir Walter Raleigh who claimed that only death could provide people with real understanding of life. During his imprisonment Raleigh demonstrated real courage and was not afraid of death. As he wrote in the latter to his wife, I perceive that my death was de termined from the first day (Raleigh, 1940, p.82). In this regard, Hamlets real self is obvious only after his death. At the end of the play Hamlet accepts his death with courage and inevitability. However, Shakespeare demonstrates that, despite Hamlets indifference to life, he needs much time and courage to prepare himself for killing and death. As Hamlet observes numerous deaths, he becomes immune to his own fortune. He starts to perceive death with irony, realising that life has no value for him. To a certain extent, it is Hamlets insanity that helps him to adjust to the idea of death and succeed in his revenge. As Hamlet collides with cruel reality, he seems to be mentally destroyed by it: Who does it, then? His madness. Ift be so, / Hamlet is of the faction that is wrongd; His madness is poor Hamlets enemy (Shakespeare, 1985 2.233-235). Simultaneously, the principal character manages to create an ironical attitude towards death that is intensified by the utilisation of Biblical and classical allusions. For instance, Hamlets revenge resembles the classical story of Priam and Pyrrhus; when Priam kills the father of Pyrrhus, the latter decides to kill Priam in revenge. In Hamlets case the irony is explained by the repetition of the situation, but Hamlet finds it difficult to succeed in his revenge; he avoids some fortunate situations and kills Claudius only at the end of the play. Another allusion is taken from the Bible: when Shakespeare (1985) mentions the primal eldest curse A brothers murder (3.3.40-41), he draws a parallel between the story of Cain and Abel with the murder of King Hamlet by Claudius. Although Claudius seems to ask for forgiveness in the church, he does not really repent of his action. When Hamlet recognises the truth about his fathers death, he decides to make a play The Murder of Gonzago, where h e implicitly depicts the murder of his father by King Claudius. Ironically, the play has a great impact on Hamlet who has to suppress his desire to kill Claudius and his mother Gertrude. As he states, Let not ever the soul of Nero enter this firm bosom. / Let me be firm, not unnatural. / I will speak daggers to her, but use none (Shakespeare, 1985 3.2.426-429). As Agrippina, the character of the play The Murder of Gonzago, is killed by her son Nero, Hamlet is afraid of his desire to also kill his mother. Another element of death that Shakespeare strengthens in his play is the Dance of Death that is crucial for understanding the dramatists interpretation of the issue. In the Renaissance this dance was performed in the form of a carnival, during which some people disguised themselves into skeletons and guided other people into afterlife. As a humorous festivity, the Dance of Death was popular among different groups of people and was depicted in many dramatic works (Freedberg, 1989). The image of the Dance of Death occupies the principal place in Hamlets graveyard scene. In Hamlets conversation with the gravedigger, Shakespeare uncovers many important issues of existence. For instance, Hamlet asks Did these bones cost no more the breeding but to play at loggets with them? Mine ache to think ont (Shakespeare, 1985 5.1.91). The Dance of Death ha s a great impact on Hamlet, especially when he sees the skull of his friend Yorick who occupied a position of fool in the court during his life (Triggs, 1990, pp.73-76). Hamlet realises that death is inevitable for all people, as he puts it, We fat all creatures else to fat us and we fat ourselves for maggots. Your fat king and your lean beggar is but variable service two dishes but to one table (Shakespeare, 1985 4.2.21-24). But this scene also reveals that the gravedigger and Hamlet are blasphemous in their treatment of death, although to a different extent (Frye, 1979, pp.17-22). As the gravedigger prepares the grave for Ophelia, he sings songs; Hamlet regards this action as awful, although his further action is more cruel. When he finds Yoricks skull, he begins to mock at him, simultaneously laughing at death: Where be your gibes now? your gambols? your songs? your flashes of merriment that wont to set the table on a roar? Not one now to mock your own grinning? Quite chapfallen? (Shakespeare, 1985 5.1.196-199). Such an ironic vision of the principal character reveals Hamlets inner degradation; Ewan Fernie (2002) considers that Hamlet involves into the depth of mortality and destruction, because he feels shame that makes him regard death in an easy and obscure manner. Hamlet thinks that the inner destruction is a necessary prerequisite of revenge, and the failure of this tragic hero works against the i llusion and the tyranny of the self (Fernie, 2002, p.225). Although death is a natural phenomenon, Shakespeare demonstrates that people imagine and endure death before they really die, as the ancient culture forms an attitude of people towards death based on suffering and purgatory. As Stephen Greenblatt (2001) puts it, by the late Middle Ages in Western Europe, Purgatory had achieved both a doctrinal and a social success (p.14). In other words, it not only concerned the religious side and the idea of existence, but was also associated with society and its attitude towards reality. In the sixteenth century there were two religious groups in Britain Catholics and Protestants; the first group maintained the idea of Purgatory, while the second group opposed it. Although during the Renaissance period Protestants made everything to eliminate the principles of Purgatory, Shakespeare demonstrates that Purgatory was also closely connected with cultural beliefs of British people. In this regard, the Ghost of King Hamlet confirms to the dogma of Purgatory, as he appears as a creature that suffers much because of his murder and that demands revenge. In fact, the very image of the Ghost brings up the question of death and supernatural elements, simultaneously demonstrating an ambiguous attitude of Renaissance literature towards the issue of death. On the one hand, on the example of his principal character Shakespeare reveals peoples wish to communicate with dead people, but, on the other hand, he shows the wish of the dead to communicate with human beings. Thus, the Ghost in the play seems to ask not only for revenge, but also for recollection. Despite the fact that Shakespeare does not utilise the word purgatory in regard to the Ghost, the dramatis t implicitly mentions that the Ghost comes back from this particular place. As Shakespeare (1985) states, Doomed for a certain term to walk the night / And for the day confined to fast in fires, / Till the foul crimes done in days of nature / Are burnt and purged away (1.5.11-14). Purgatory, mystery plays and various medieval rituals were prohibited by the Church of England in the era of Reformation, destroying many important aspects of English culture. Purgatory was closely connected with the beliefs in phantoms, that is why the Church made everything to suppress the spread of these beliefs. However, Renaissance tragedy seems to revive some earlier traditions and customs associated with the dead, and Shakespeare is considered to be one of the principal Renaissance dramatists who combine medieval and Renaissance cultural traditions. Making the Ghost come back from Purgatory, Shakespeare simultaneously signifies the revival of the very concept of Purgatory, although in a changed form. In this regard, William Shakespeare resembles a famous Renaissance philosopher Desiderius Erasmus Roterodamus (1994) who also rejected many religious dogmas of Protestants and tried to revive some traditions, such as Purgatory. In his work Praise of Folly (1509) Erasmus reveals an ironical vision towards the issue of death, although he believed in God. According to Greenblatt (2001), Shakespeares play takes part in a cult of the dead (p.203), investigating in depth various aspects of death. Shakespeare demonstrates that Purgatory is an important tool for preserving a connection between society and continuity, between life and death; thus the rejection of the principles of Purgatory is considered by the dramatist as the destruction of the Renaissance cultural traditions. In this context, Shakespeares interpretation of the issue of death corresponds with the thinking of such conservative philosophers as More, Erasmus, Montaigne and Raleigh. In particular, Sir Thomas More in his works The Supplication of Souls (1529) and The Last Things demonstrates the importance of Purgatory for saving the ghosts and establishing relations between the quick and the dead. Thomas More also discusses the issue of death through the Seven Deadly Sins that are closely connected with Purgatory (More, 1997, pp.142-160). On the other hand, Shakespeare does not explicitly reveal his support for the issue of Purgatory. Although he challenges the Reformists rejection of Purgatory, he avoids taking one or another side. Shakespeare shows that the image of the Ghost is crucial for the Renaissance public, as Ghost stories were an integral part of British cultural traditions. Despite the fact that other Renaissance tragedies also portray the images of Ghosts, Shakespeares interpretation of the issue greatly differs from other interpretations. As Greenblatt (2001) puts it, Shakespeares ghost is presented in three different images: the Ghost as a figure of false surmise, the Ghost as a figure of historys nightmare, and the Ghost as a figure of deep psychic disturbances (p.157). All these images demonstrate that Shakespeare treats the Ghost in a rather serious way, cons idering that it can give answers to some issues of existence, albeit the dramatist does not reveal these answers; he simply points at the possibility to get these answers. The fact is that Shakespeare intentionally makes the Ghost a controversial creature, so that readers can interpret this image in their own ways. The controversy of the Ghost reflects the controversial attitude of Elizabethan society to the issue of death and afterlife. If the Ghost is thought to come back from Purgatory, then Hamlet may believe that it is the Ghost of his father who suffers much and is in search of revenge (Low, 1999, pp.463-472). However, the Ghost may also appear to come back from Hell; in this regard, his aim is to turn Hamlet into insanity. William Shakespeare reveals this controversy, but he does not solve it. The issue remains open throughout the play and is aggravated with the disappearance of the Ghost. Greenblatt (2001) even claims that purgatory exists in the imaginary universe of Hamlet and [it provides] many of the deep imaginative experiences, the tangled longing, guilt, pity and rage evoked by More (p.252). However, the deaths of Hamlet and other principal characters of the play uncover the truth about these people. In particular, throughout the narration Hamlet pretends to have a secret, althou gh he does not reveal it, but at the end he seems to expose his heart and all his secrets: Thou wouldst not think how ill alls here about my heart; but it is no matter It is but foolery (Shakespeare, 1985 5.2.208-211). Hamlet tries to fool other characters, but instead he fools himself, as he is not able to admit that he is also afraid of death. Analysing the treatment of death in William Shakespeares play Hamlet, the essay suggests that the play contributes much to the Renaissance debate on the issue of death. In particular, the dramatist goes beyond the ancient and Renaissance understanding of death, reviving some medieval death customs in Hamlet and challenging the traditional religious dogmas in regard to death. Introducing the image of the Ghost of King Hamlet, Shakespeare brings up the crucial issues of life and death and eliminates the suppression of the Purgatory concepts. According to the dramatist, the suppression of some earlier beliefs, such as the belief in Purgatory, destroys Renaissance culture. Shakespeares thinking cooperates with the thoughts of such philosophers as Erasmus, Raleigh, More and Montaigne who also demonstrate the necessity to preserve the medieval beliefs and traditions and who believe that a person reveals his true self only at death, while life is a preparation for death. However, Shakespeare avoids supporting either side of the Renaissance death debate; although he revives some concepts, he does not provide an explicit answer to the controversial issue of death. In this regard, the reasons for his characters death are also different; such characters as Hamlet and Laertes die because of their anger and revenge, Claudius dies because of his murderous actions, Ophelia dies as a result of her madness and sexual desires towards Hamlet, while her father Polonius and Hamlets mother die from an unintentional murder, similar to Guilde nstern and Rosencrantz. Applying to these characters deaths, Shakespeare reveals both serious and ironical attitude to death that, on the one hand, reflects Renaissance preoccupation with death, while, on the other hand, demonstrates his own philosophical treatment of this crucial issue. References Cressy, D. (1997). Burial, Marriage and Death. New York: Oxford University Press. Dollimore, J. (1998). Death, Desire, and Loss in Western Culture. New York: Routledge. Dudley, S. (1999). Conferring with the Dead: Necrophilia and Nostalgia in the Seventeenth Century. ELH 66.2, 277-294. Engel, W. E. (2002). Death and Drama in Renaissance England: Shades of Memory. Oxford and New York: Oxford University Press. Erasmus, D. (1994). The Praise of Folly. Prometheus Books. Fernie, E. (2002). Shame in Shakespeare. London and New York: Routledge. Freedberg, D. (1989). The Power of Images. Chicago: Chicago University Press. Frye, R. M. (1979). Ladies, Gentlemen and Skulls: Hamlet and the Iconographic Traditions. Shakespeare Quarterly 30.1, 15-28. Gittings, C. (1984). Death, Burial, and the Individual in Early Modern England. London: Croom Helm. Greenblatt, S. (2001). Hamlet in Purgatory. Princeton: Princeton University Press. Llewellyn, N. (1991). The Art of Death: Visual Culture in the English Death Ritual 1500-1800. London: Reaktion Books, 1991. Low, A. (1999). Hamlet and the Ghost of Purgatory: Intimations of Killing the Father. ELR 29.3, Autumn, 447-463. Montaigne, M. de. (1910). The Works of Montaigne. New York: Edwin C. Hill. More, T. (1997). The Yale Edition of The Complete Works of St. Thomas More. Vol.1. English Poems, Life of Pico, The Last Things. A. S. G. Edwards, C. H. Miller K. G. Rodgers (Ed.). New Haven: Yale University Press. Neill, M. (1997). Issues of Death: Mortality and Identity in English Renaissance Tragedy. Oxford: Clarendon Press, 1997. Raleigh, S. W. (1940). Sir Walter Raleigh to his Wife. In M. L. Schuster (Ed), A Treasury of the Worlds Great Letters (pp.81-85). New York: Simon and Schuster. Shakespeare, W. (1985). Hamlet, Prince of Denmark. In P. Edwards (Ed.), The New Cambridge Shakespeare. Cambridge: Cambridge University Press. Triggs, J. A. (1990). A Mirror for Mankind: The Pose of Hamlet with the Skull of Yorick. The New Orleans Review 17:3, Fall, 71-79.

Five Basic Corporate Finance Functions

Five Basic Corporate Finance Functions Introduction UBS AG is a diversified global financial services company, having its main headquarters at Basel and Zurich, Switzerland. In June 1998, Union Bank of Switzerland and Swiss Bank Corporation (SBC) completed the merger announced six months previously. Just two years later, UBS acquired the US brokerage firm Paine Webber, greatly increasing the size and scope of its business. Then the new firm set the seal on these achievements by proclaiming a single brand. In this light, UBS is both a new institution and new brand. In the picturesque Swiss region of Valposchiavo, for example, one UBS branch traces its origins as far back as 1747. The core components of todays UBS date back to the second half of the nineteenth century. At the same time, its history extends many generations into the past, particularly in Switzerland, the US and the UK. UBS is ranked second worlds largest asset manager of private wealth, and is the second-largest bank in Europe, in both market capitalisation and profitability. With its major presence in United States UBS has its headquarters located in New York City; Weehawken, Private Wealth Management in New Jersey; and Stamford, Connecticut for Capital markets, UBSs has its retail offices throughout the U.S., and has its presence in more than 50 countries (www.ubs.com/1/e/about/history.html). UBS was force to turn to the Government of Singapore for fresh funding after incurring a huge loss in 2007. After funding, Government of Singapore Investment Corporation became the largest shareholder of UBS in 2007. UBS managers pledged to return bonuses after a dramatic loss in November 2008. New financial aid was expected from Swiss government after the UBS shareholders voted to restore the shaken trust in UBS (www.ubs.com/1/e/about/history.html). Credit Suisse found a new cross-town rival in the form of UBS which has evolved on a similar path. Both of them originated from Switzerland indulging in commercial and retail banking who purchased major investment banks in United States and both are being investigated by U.S. authorities currently for helping 17,000 American citizens to avoid taxes. Based on the order by the Swiss Financial Markets Supervisory Authority (FINMA), UBS on 18th February 2009, immediately has agreed to provide the identities of and account information of about 250 American clients to United States and also agreed to pay US$ 780 million in the form of compensation and fines (www.ubs.com/1/e/about/history.html). Corporate Finance Modern companies need to raise finance from the capital market in order to invest in the real and intangible assets they need to earn profits. Their first priority is to ensure that they can source finance for both their short run and their long run needs in the most economical way possible. Corporate investment is by its nature risky and often capital intensive (Ryan, 2007). In order to justify the use of other peoples money a firm needs to ensure that the investment decisions it makes, taking into account its cost of capital, lead to an overall increase in the value of the firm and hence its investors wealth. Alongside the problem of sourcing finance at the cheapest cost, the firm has to make sure that all the investment decisions it undertakes are value adding. If they are not the firm will not be able to justify its existence for very long and will find itself out of business (Ryan, 2007). The ability to trade the financial claims of business ventures has been known about and practised for centuries. In the modern era the standardization of financial claims into homogenous trading units has transformed the way markets operate. Until the 1930s companies, for example, borrowed money from banks but following the Wall Street Crash in the United States there was a sudden loss of confidence in the banking sector. As a result, companies started to practise what governments had been doing for some time and sidestepped the banks going directly to lenders and offering them securitized debt in the form of bonds (Ryan, 2007). Although modern financial intermediaries are marvel of efficiency, the role of traditional intermediaries such as banks as providers of debt capital to corporations has declined for decades. Instead, nonfinancial corporations have increasingly turned to capital markets for external financing, principally because the rapidly declining cost of information processing makes it much easier for large number of investors to obtain and evaluate financial data for thousands of potential corporate borrowers and issuers of common and preferred stock equity (Megginson and Smart, 2006). The Five Basic Corporate Finance functions: Although corporate finance is defined generally as the activities involved in managing cash flows (money) in a business environment, a more complete definition would emphasize that the practice of corporate finance involves five basic functions: Raising capital to support companies operations and investment programs (the external financing function); Selecting the best projects in which to invest firms resources, based on each projects perceived risk and expected return (the capital budgeting function); Managing firms internal cash flows, its working capital, and its mix of debt and equity financing, both to maximize the value of firms debt and equity claims and to ensure that companies can pay off its obligations when due (the financial management function); Developing company-wide ownership and corporate governance structures that force managers to behave ethically and make decisions that benefit shareholders (the corporate governance function); and Managing firms exposures to all types of risk, both insurable and uninsurable, to maintain and optimal risk-return trade-off and therefore maximize shareholder value (the risk-management function). (Source: Megginson and Smart, 2006) External financing When corporations are young and small, they usually must raise equity capital privately, either from friends and family, or from professional investors such as venture capitalists. These professionals specialize in making high-risk/high-return investments in rapidly growing entrepreneurial businesses. Once firms reach a certain size, they may decide to go public by conducting an initial public offering (IPO) of stock-selling shares to outside investors and listing the shares for trading on a stock exchange. After IPOs, companies have the option of raising cash by selling additional stock in the future (Megginson and Smart, 2006). Capital Budgeting The capital budgeting function represents firms financial managers single most important activity, for two reasons. First, managers evaluate very large investments in the capital budgeting process. Second, companies can prosper in a competitive economy only be seeking out the most promising new products, processes, and services to deliver to customers. Companies such as Intel, General Electric, Shell, Samsung, and Toyota regularly make huge capital outlays. The capital budgeting process breaks down into three steps: Identifying potential investments; Analysing the set of investment opportunities and identifying those that create shareholder value; and Implementing and monitoring the investments (Source: Megginson and Smart, 2006) Risk Management Historically, risk management has identified the unpredictable act of nature risks (fire, flood, collision, and other property damage) to which firms was exposed and has used insurance products or self-insurance to manage those exposures. Todays risk-management function identifies, measures, and manages many more types of risk exposures, including predictable business risks. These exposures include losses that could result from adverse interest rate movements, commodity price changes, and currency value fluctuations. The techniques for managing such risks are among the most sophisticated of all corporate finance practices. The risk-management task attempts to quantify the sources and magnitudes of firms risk exposure and to decide whether to simply accept these risks or to manage them (Megginson and Smart, 2006). Corporate Governance Recent corporate scandals-such as financial collapses at Enron, Arthur Andersen, WorldCom, and Parmalat-clearly show that establishing good corporate governance systems is paramount. Governance systems determine who benefits most from company activities; then they establish procedures to maximize firm value and to ensure that employees act ethically and responsibly. Good management does not develop in a vacuum. It results from corporate governance systems that hires and promotes qualified, honest people, and that motivate employees to achieve company goals through salary and other incentives (Megginson and Smart, 2006). Developing corporate governance systems present quite a challenge in practice because conflicts inevitably arise among stockholders, managers, and other stakeholders interests. But rarely is it in the interest of any individual stockholder to spend the time and money needed to ensure that managers act appropriately. If individual stockholders conducted this type of oversight, they would personally bear all the costs of monitoring management, but would share the benefits with all other shareholders. This is a classic example of the collective action problem that arises in most relationship between stockholders and managers (Megginson and Smart, 2006). Bankruptcy and Corporate Financing Patterns The more debt a firm uses in its capital structure, the less likely the firm will be able to meet its debt service obligations, and the more likely default will occur (Benning and Sarig, p.347). It is this default likelihood that introduces bankruptcy costs into capital structure. As argued by Van Horne (p.268), the presence of bankruptcy costs is an important source of imperfection in the markets for corporate funds. Under imperfect conditions, there are the administrative costs of bankruptcy, and assets may have to be liquidated at less than their economic values (Bekter, p. 56). It is also this tendency that Myers (p.218) describes as the direct cost of bankruptcy. The implication of the presence of bankruptcy cost in financial leverage is manifested more by the fact that debt-financing generates risks. Not only that, but it has been argued that for instance that every financing decision comes with some risk implications on the value of the firm (Glen and Pinto, 1994). The largest bankruptcy in U.S. history was finally coming to an end. On April 20, 2004, MCI, Inc. Emerged with an announcement that it had begun distributing securities and cash to its creditors according to a court-approved reorganization plan. MCIs chief executive officer, Michael Capellas, heralded a new beginning for his company, which had filed for bankruptcy court protection twenty-one months earlier-when the company was called WorldCom-after disclosing and $11 billion accounting fraud. At the time of its Chapter 11 filing, WorldCom had assets totalling nearly $104 billion and debts of $32 billion (Megginson and Smart, 2006). WorldCom shocked the business world when the company announced in June 2002 that it had fraudulently overstated $3.9 billion of expenses as capital expenditures, which had allowed it to book higher profits during the telecom boom years of 1998-2001. WorldCom chief financial officer Scott Sullivan was fired the day the accounting fraud was disclosed, and his exit followed that of founder and long-time CEO, Bernine Ebbers, who had been forced out in April 2002. Over the next two years, more than $7 billion in additional accounting errors and frauds were uncovered,, bringing the total misstatements to $11 billion, and in a March 2004 restatement of its 2001 and 2002 financial results, the company wrote off over $74 billion in previously booked profits and goodwill (Megginson and Smart, 2006). Corporate Control Transactions Changes in corporate control occur through several mechanisms, most notably via acquisitions. An acquisition is the purchase of additional resources by a business enterprise. These resources may come from the purchase of new assets, the purchase of some of the assets of another company, or the purchase of another whole business entity, which is known as a merger. Merger is itself a general term applied to a transaction in which two or more business organizations combine into a single entity. Oftentimes, however, the term merger s reserved for a transaction in which one corporation takes over another upon the approval of both companies boards of directors and shareholders after a friendly and mutually agreeable set of terms and conditions and a price are negotiated (Megginson and Smart, 2006). Statuary Merger A statutory merger is a form of target integration in which the acquirer can absorb the targets resources directly with no remaining trace of the target as a separate entity. Many intrastate bank mergers are of this form. Subsidiary Merger Conversely, an acquirer may wish to maintain the identity of the target as either a separate subsidiary or division. A subsidiary merger is often the integration vehicle when there is brand value in the name of the target, such as the case of PepsiCos merger with Pizza Hut in 1997. Sometimes, separate tracking or target shares are issued in the subsidiarys name. Sometimes, these shares are issued as new common shares in exchange for the targets common shares, as occurred when General Motors issued new Class E and Class H shares to acquire, respectively, Electronic Data Systems and Hughes Electronics during the 1980s. Alternatively, a new class of preferred stock may be issued by the bidding firm to replace the common shares of the target as well (Megginson and Smart, 2006). Consolidation Consolidation is another integrative form used to effect a merger of two publicly traded companies. Under this form, both the acquirer and target disappear as separate corporations and combine to form an entirely new corporation with new common stock (Megginson and Smart, 2006). Dealing with the Crisis The merger of the Union Bank of Switzerland and the Swiss Bank Corporation in June 1998 resulted in UBS evolution. The new company was named originally as Union Bank of Switzerland, but officials chose to call it as UBS as the name was clashing with United Bank Switzerland a subsidiary part of the United Bank Limited, Switzerland. United Bank of Switzerland is no longer known for its name as it made its brand name UBS like 3M. The carried over logo from SBC, which stands for confidence, security and discretion has remained with UBS. With its acquisitions of Dillon Read in New York and S. G. Warburg in London, SBC had investment banking business all over the world before the merger. Due to the Long-Term Capital Management crisis, in October 1998, the first chairman of the merged bank resigned which affected the Union Bank of Switzerland. After the acquisition of Paine Webber Group Inc. by UBS in 2000, it became the largest private clients wealth management company in the world. A CHF 3.265 trillion assets was invested in wealth management businesses, including the U.S. As the company began to operate as one large firm, all the business group of UBS were rebranded under the UNBS name on the 9th June 2003. All major companies bought by Union Bank of Switzerland like UBS Paine Webber, UBS Warburg, UBS Asset Management and others were just called UBS. With the retirement of the Paine Webber brand UBS took a US$1 billion write-down for the loss of good will associated with as a result of the rebranding (www.ubs.com/1/ e/about/history.html). In a report released on 01st April 2008, 15 billion Swiss francs (US$15.1 billion) in a new capital was seeked by Swiss bank UBS AG as it expected to post net losses of 12 billion Swiss francs (US$12.1 billion) for the first quarter of 2008. Approximately US$19 billion on U.S. real estate and related credit positions were expected to write-down as UBS was hit by U.S. Subprime mortgage crisis and losses. Fitch Ratings and Standard Poors, and Moody are cut down the long term credit rating of UBS in April 2008 to AA and Aa1 respectively. A new capital of CHF 6 billion through mandatory convertible notes was announced by UBS which they had on the 16th October 2008, and was place with Swiss Confederation. Transfer agreement of approximately USD 60 billion currently illiquid securities and various assets from UBS to a separate fund entity were made between the Swiss National Bank (SNB) and UBS (www.ubs.com/1/e/about/history.html). The third quarter Group net profit was announced by UBS on 4th November which was in line with their 16th October pre announcement, CHF 296 million standing with net profit attributable to UBS shareholders. A further CHF 4.8 billion of write-downs and losses on risk positions affected that quarter in gain on tax credit of over CHF 900 million and own credit of CHF 2.2 million. In an announcement made on the 12th November 2008, UBS said that from 2009 there will be no more than one-third of any cash bonus paid out in year it is earned with the rest held in reserve. Top executives will have to hold 75% of any vested shares; incentives would also vest after three years on shares with share bonus accounts subject to malus charges. US$6 billion of equity was put into the new bad bank entity by UBS in November 2008; a benefit option was kept only if the value of its assets were to recover. UBS structure guaranteed clarity for UBS investors by making an outright sale, which was indicated as a neat package by the New York Times (www.ubs.com/1/e/about/history.html). The head of the Swiss National Bank (SNB) and Chairman Jean-Pierre Roth on Friday the 30th January 2009 was quoted on Reuters as saying that the two best capitalised banks in the world are UBS and Credit Suisse. In an announcement made on the 09th February 2009 by UBS, said that it lost nearly 20 billion Swiss francs (US$17.2 billion) in 2008, which is the single-year biggest loss in the history of Switzerland. The commitment to each of the UBS business divisions and strategy were confirmed by UBS Board of Directors and the Group Executive Board on the 10th February 2009. Investigations relating to UBS U.S. cross-border business are getting resolved by entering into a deferred prosecution agreement with the US Department of Justice and a Consent Order with the US Securities and Exchange Commission. US$380 million represents disgorgement of profits from its cross-border business out of US$780 million which UBS agreed to pay. And the remaining represents the tax amount of United States which UBS failed to withhold to the accounts. The interest, penalties and restitution for unpaid taxes are included in the figures. UBS also entered into an agreement with the Securities and Exchange Commission as part of the deal in which it agreed to the charges of having acted as an unregistered broker-dealer and investment adviser for Americans (www.ubs.com/1/e/about/history.html). Initiative taken CHF 20.9 billion (US$ 18 billion) loss was posted by UBS AG on the 11th march 2009 which was stated in their revised FY 2008 report. It was said that UBS was extremely cautious about the outlook of 2009. UBS announced in its Annual General Meeting held on 15th April 2009, it has plans of cutting 8,700 jobs in its return to profitability. UBS had to make about US$50 billion in write-downs and announce of 11,000 job cuts since 2007 due to the global financial crisis. UBS agreed to sell its Brazilian financial service business, UBS Pactual, to BTG Investments for approximately USD 2.5 billion in a statement made on the April 21st 2009. UBS was aiming to reduce its risk profile and to become more profitable by the sale of the Brazilian business. U.S. federal grand jury charges were made on private banker Raoul Weil for which UBS formally cut all its ties on the 1st May 2009. Raoul had been suspended in November 2008 after he was indicated in correlation to the tax evasion affair. A first quarter net loss of two billion Swiss francs (USD1.75 billion) was confirmed by UBS on May 20th 2009 which was less than initially expected. UBS restated its 2008 annual report on the May 20th 2009. A further reduction in the net profit was announced by the bank of CHF 450 million, and CHF 269 million in reduction of equity and equity attributable to UBS shareholders (www.ubs.com/1/e/about/history.html). UBS strengthened its capital base by placing 293.3 million shares from existing authorized capital by taking the advantage of current market conditions. A small number of large institutional investors were placed with the shares. In the view of the regulators it was consistent that this capital raising aims at strengthening confidence in UBS and the Swiss financial centre which is claimed by UBS. The second quarter loss of CHF 1.4 billion (US$1.32 billion) was reported on the 4th August 2009. The Swiss government made a statement of selling its CHF 6 billion stake in UBS on the 20th August 2009, making significant profit; the mandatory convertible notes of 332.2 million which it had purchased in 2008 to help UBS clear its balance sheets of toxic assets (www.ubs.com/1/e/about/history.html). In the Lundquist CSR Online Awards 2009, UBS ranked No.1 in Switzerland and No. 2 globally in November 2009. The award is given for demonstrating best online CSR communications.

The Scarlet Letter Essay -- Literary Analysis, Hawthorne

The aspect of Nature in Nathaniel Hawthorne’s The Scarlet Letter seems to have been characterized to readers with having a mixed blessing. Rather than illustrating Nature in the typical Puritanical manner of the 1600’s, that Nature is downright evil, tying Nature to the â€Å"Black Man,† Hawthorne uses a different approach. Instead, Nature is fairly two-sided in that it portrays destructive as well as somewhat therapeutic powers. The text reveals the positive attributes of Nature that the Puritans overlook or fear. Conversely, the text shows that aspects of Nature that help mankind also harm him. The duality of Nature mirrors the complex inner feelings and dual nature of the novel’s characters. Nature represents the paradoxical juxtaposition of both good and evil in man, by showing both good and evil attributes in itself. Ultimately, Nature reveals man's inherent inability to be pure. By presenting a number of aspects of Nature that are beneficial to man, the text manages to discount the one-sided Puritanical view of Nature as an outright evil influence. Nature provides both Hester Prynne and Arthur Dimmesdale with some feelings of renewal and relief by giving each a sense of freedom from the oppression of society. For example, Hester, by living in a "lonesome cottage, by the sea shore,† (166) a place representative of Nature, is able to invoke such thoughts "dared to enter no other dwelling in New England† (166). Her isolation from society amidst the liberating influence of Nature, releases her from the restrictions that determine what is acceptable to believe, allowing her mind to roam "as freely as the wild Indian in his woods"(203). Her "estranged point of view," her "fate and fortunes", in addition to her homely cottage by the se... ...he way her mother does is best. Also in her pursuit of truth, she fervently desires Dimmesdale to stand with her and Hester in the sunlight, unknowingly requesting that her father reveal the truth about the bond between them all. Her quest for truth eventually leads her to "pledge that she [will] grow up amid human joy and sorrow"(251), ceasing to "forever do battle with the world"(251), and instead "be a woman in it"(251). The novel culminates its message of duality by showing the lawless child of nature embrace, in part, the morality of society. In order to live truth, Pearl must hold on to her wild roots, while accepting a civilized future. She must free herself from the isolation of New England, but not give herself over to the complete lawlessness of the forest. She seems on the verge of living the message of the novel by accepting the duality of her nature.

Division Classification :: Division Classification

Division Classification: A logical way of thinking that allows us to make sense of a complex world. The institution that what people stated the purpose.   Ã‚  Ã‚  Ã‚  Ã‚  -Division-taking a single unit or concept, breaking the unit down into its parts, and then analyzing the connections among the parts and between the parts and the whole.   Ã‚  Ã‚  Ã‚  Ã‚  -Classification-brings two or more related items together and categorizes them according to type or kind. II. How Division-Classification fits your purpose and audience.   Ã‚  Ã‚  Ã‚  Ã‚  A) Break the subject into parts as it is easier during prewriting.   Ã‚  Ã‚  Ã‚  Ã‚  B) It imposes order to the mixture of ideas during prewriting.   Ã‚  Ã‚  Ã‚  Ã‚  C) Helps the writer analyze topics   Ã‚  Ã‚  Ã‚  Ã‚  D) Helps structurize an essay.   Ã‚  Ã‚  Ã‚  Ã‚  E) When writing on certain things you divide such as writing about parts, stages, or a process.   Ã‚  Ã‚  Ã‚  Ã‚  F) When showing categories use classification. III. Suggestions for using Division-Classification in an essay 1. Select a principle of division-Classification with your purpose.   Ã‚  Ã‚  Ã‚  Ã‚  A) Subjects can be divided according to a number of different principles.   Ã‚  Ã‚  Ã‚  Ã‚  B) A single principle of Division-Classification provides the foundation for each major section of the paper.   Ã‚  Ã‚  Ã‚  Ã‚  C) Division-Classification can use more then one principle. The paper can shift from one principle to another in different parts of the paper. 2. Apply the principle of division classification logically.   Ã‚  Ã‚  Ã‚  Ã‚  A) Take your time while writing division-Classification and other words don’t wait till the last minute.   Ã‚  Ã‚  Ã‚  Ã‚  B) be sure to hit every angle of your subject, meaning don’t leave at the obvious.   Ã‚  Ã‚  Ã‚  Ã‚  C) Don’t overlap for example dividing birds you could use the Bald Eagle, but he is almost extinct, so don’t over lap by saying he is a bird plus extinct. 3.Prepare an effective thesis.   Ã‚  Ã‚  Ã‚  Ã‚  A) A division-Classification thesis does more then signal the paper’s subject and suggest your attitude the general subject   Ã‚  Ã‚  Ã‚  Ã‚  B) The thesis can state the principle of division-classification at the heart of the essay.   Ã‚  Ã‚  Ã‚  Ã‚  C) The thesis can reveal which part or category you regard as most important.   Ã‚  Ã‚  Ã‚  Ã‚  D) It signals the paper’s plan of development.   Ã‚  Ã‚  Ã‚  Ã‚  E) Use specific facts, examples, and details.

Failed Amendment: Protecting Slavery Essay

In 1861, an Amendment was proposed to protect the practice of slavery, known as the Corwin Amendment.. It would make it so not amendments could be made to effect the use of slavery. This is the only proposed Amendment that has the signature of the President, to not be ratified. The President’s signature is considered unnecessary due to the face the constitutional provision that on the concurrence of two-thirds of both Houses of Congress the proposal shall be submitted to the States for ratification. Two states approved this proposal, Ohio and Illinois. It is believed that Maryland also ratified the Corwin Amendment, but due to military conflict during the Civil War it was never official. I believe that it was never ratified for many reasons but the main was because many state did not agree with slavery at the time, and they did not want to â€Å"protect† it with an amendment, they also saw that change was coming and if it was ratified, change could not happen. Technically the Corwin Amendment is still â€Å"live† and it could still be ratified, although the 13th Amendment put an end to slavery. If the 13th Amendment did not make slavery illegal, it still not be ratified, especially today. People’s views on equal rights, and racism have changed drastically, and if the Corwin Amendment was proposed today people would be disgusted. I believe that is the Corwin Amendment was even suggest America would become a very different place. Many citizens would change their views on the government and protest and riots would break out.

Economics story

The Indian Economy Since Independence India Wins Freedom On 14 August 1947, Nehru had declared: â€Å"Long years ago we made a tryst with destiny, and now the time comes when we shall redeem our pledge. The achievement we celebrate today is but a step, an opening of oopportunity, to the great triumph and achievments that await us. † He reminded the country that the tasks ahead iincluded â€Å"the ending of poverty and ignorance and disease and inequality of oopportunity†. These were the basic foundations on which India embarked upon its path of development since gaining independence in 1947.The purpose of this talk is to analyze how much has India really achieved in the last 55 years in fulfilling the aspirations on which it was founded. Indian Planning process The objective of India’s development strategy has been to establish a socialistic pattern of society through economic growth with self-reliance, social justice and alleviation of poverty. These objectives were to be achieved within a democratic political framework using the mechanism of a mixed economy where both public and private sectors co-exist. India initiated planning for national economic development with the establishment of the Planning Commission.The aim of the First Five Year Plan (1951-56) was to raise domestic savings for growth and to help the economy resurrect itself from colonial rule. The real break with the past in planning came with the Second Five Year Plan (Nehru-Mahalanobis Plan). The industrialization strategy articulated by Professor Mahalanobis placed emphasis on the development of heavy industries and envisaged a dominant role for the public sector in the economy. The entrepreneurial role of the state was evoked to develop the industrial sector. Commanding heights of the economy were entrusted to the public sector.The objectives of industrial ppolicy were: a high growth rate, national self-reliance, reduction of foreign dominance, building up of indigenous c apacity, encouraging small scale industry, bringing about balanced regional development, prevention of concentration of economic power, reduction of income inequalities and control of economy by the State. The planners 1 and ppolicy makers suggested the need for using a wide vvariety of instruments like state allocation of investment, licensing and other regulatory controls to steer Indian industrial development on a closed economy basis.The strategy underlying the first three plans assumed that once the growth process gets established, the institutional changes would ensure that benefits of growth trickle down to the poor. But doubts were raised in the early seventies about the effectiveness of the ‘trickle down’ approach and its ability to banish poverty. Further, the growth itself generated by the planned approach remained too weak to create adequate surpluses- a prerequisite for the ‘trickle down’ mechanism to work. Public sector did not live upto the e xpectations of generating surpluses to accelerate the pace of capital accumulation and help reduce inequality.Agricultural growth remained constrained by perverse institutional conditions. There was unchecked population growth in this period. Though the growth achieved in the first three Five Year Plans was not insignificant, yet it was not sufficient to meet the aims and objectives of development. These brought into view the weakness of economic strategy. We discuss the failure of the planning process in more detail in the next section. A shift in ppolicy was called for. The Fifth Plan (1974-79) corrected its course by initiating a program emphasizing growth with redistribution.To accelerate the process of production and to align it with contemporary realities, a mild version of economic liberalization was started in the mid 1980s. Three important committees were set up in the early 1980s. Narsimhan Committee on the shift from physical controls to fiscal controls, Sengupta Committe e on the public sector and the Hussain Committee on trade ppolicy. The result of such thinking was to reorient our economic policies. As a result there was some progress in the process of deregulation during the 1980s. Two kinds of delicencing aactivity took place.First, thirty two groups of industries were delicensed without any investment limit. Second, in 1988, all industries were exempted from licensing except for a specified negative list of twenty six industries. Entry into the industrial sector was made easier but exit still remained closed and sealed. Hence, the roots of the liberalization program were started in the late 80’s when Rajiv Gandhi was the Prime Minister of India, but the reach and force of the reform 2 program was rather limited. There were political reasons as to why this program could not be enhanced which we talk about later.The Failure of the Planning Process While the reasons for adopting a centrally directed strategy of development were understanda ble against the background of colonial rule, it, however soon became clear that the actual results of this strategy were far below expectations. Instead of showing high growth, high public savings and a high degree of self-reliance, India was actually showing one of the lowest rates of growth in the developing world with a rising public deficit and a periodic balance of payment crises.Between 1950 and 1990, India’s growth rate averaged less than 4 per cent per annum and this was at a time when the developing world, including Sub-Saharan Africa and other least developed countries, showed a growth rate of 5. 2 % per annum. An important assumption in the choice of post-independence development strategy was the generation of public savings, which could be used for higher and higher levels of investment. However, this did not happen, and the public sector-instead of being a generator of savings for the community’s good- became, over time, a consumer of community’s sa vings.This reversal of roles had become evident by the early seventies, and the process reached its culmination by the early eighties. By then, the government began to borrow not only to meet its own revenue expenditure but also to finance public sector deficits and investments. During 1960-1975, total public sector borrowings averaged 4. 4 % of GDP. These increased to 6 % of GDP by 1980-81, and further to 9 % by 1989-90. Thus, the public sector, which was supposed to generate resources for the growth of the rest of the economy, gradually became a net drain on the society as a whole.I will now try to give some reasons for the deterioration of the public sector in India. 1) The legal system in India is such that it provides full protection to the private interests of the so called ‘public servant’, often at the expense of the public that he or she is supposed to serve. In addition to complete job security, any group of public servants in any public sector organization ca n go on strike in search of higher wages, promotions and bonuses for themselves, irrespective of the costs and 3 nconvenience to the public. Problems have become worse over time and there is little or no accountability of the public servant to perform the public duty. 2) The ‘authority’ of governments, at both center and states, to enforce their decisions has eroded over time. Government can pass orders, for example, for relocation of unauthorized industrial units or other structures, but implementation can be delayed if they run counter to private interests of some (at the expense of the general public interest). ) The process and procedures for conducting business in government and public service organizations, over time, have become non-functional. There are multiplicity of departments involved in the simplest of decisions, and administrative rules generally concentrate on the process rather than results. There is very little decentralization of decision-making power s, particularly financial powers. Thus, while local authorities have been given significant authority in some states for implementing national programmes, their financial authority is limited.Hence during early 90’s it was imperative for India to correct its clearly faulty developmental process. There have been several reasons put forward for the failure of the developmental path which necessitated the reforms of Manmohan Singh in 1991. The way I would approach the analysis is through the approach of comparing and contrasting the viewpoints of two of the most prominent Indian economists of our times. The Bhagwati-Sen debate Jagdish Bhagwati and Amartya Sen, probably the two most influential voices amongst Indian economists, represent the two divergent ways of thinking about the development path.Though formally no such debates exists, apart from occasional jibes against Sen in the writings of Bhagwati, I believe by scrutinizing their positions a lot of introspection can be don e. As Bhagwati says â€Å"my view as to what went wrong with Indian planning is completely at odds with that of Prof Sen†. My objective in this section is bring 4 out the intellectual divergence amongst these two great minds and possibly to learn something from that. Let us start with the points on which they agree.I think the fact that India needs an egalitarian development path is quite well acknowledged by both of them. The Nehruvian dream of an egalitarian growth process was what both of them would endorse. As Bhagwati says â€Å"I have often reminded the critics of Indian strategy, who attack it from the perspective of poverty which is juxtaposed against growth, that it is incorrect to think that the Indian planners got it wrong by going for growth rather than attacking poverty: they confuse mearns with ends.In fact, the phrase â€Å"minimum income† and the aim of providing it to India’s poor were very much part of the lexicon and at the heart of our think ing and analysis when I worked at the Indian Planning Commission in the early 1960’s†. The key strategy that defined the resulting developmental effort was the decision to target efforts at accelerating the growth rate. Given the immensity of the poverty, the potential of simple redistribution was considered to be both negligible in its immediate impact and of little sustained value. Accelerated growth was thus regarded as an instrumental variable; a ppolicy outcome that would in turn reduce poverty.He goes on to argue â€Å"Those intimately associated in India’s plans fully understood, contrary to many recent assertions, the need for land reforms, for attention to the possibility of undue concentration of economic power and growth in inequality. These ‘social tasks’, which of course also can redound to economic advantage, were attended to and endlessly debated in the ensuing years, with reports commissioned (such as the Mahalanobis Committee report on income distribution in 1962) and policies continually revised and devised to achieve these social outcomes†.If we follow the writings of Sen on the other hand, in his recent book â€Å"Development As Freedom†, Sen argues that â€Å"the usefulness of wealth lies in the things that it allows us to do- the substantive freedoms it helps us to achieve†¦. an adequate conception of development must go much beyond the accumulation of wealth and the growth of gross national product and other income-related variables. Without ignoring the importance of economic growth, we must look well beyond it†. I don’t think that there is any divergence of view on this front with that of what Bhagwati says.It is worth mentioning at this juncture that this has been a common misconception amongst economists about the divergence of two different developmental paths. It is often misunderstood that Bhagwati’s 5 view stresses just on economic growth while Sen argues ag ainst economic growth and the importance of markets. The above paragraphs reveal that this is certainly not the case. Both of them is sufficiently concerned with economic growth as well as the basic issues of poverty, health and social issues. The points of divergence I believe the real disparity concerns the mearns of achieving these common goals.Bhagwati’s arguments can be summarized as follows. The development process consists of two steps. As a first step, a growth accelerated strategy would generate enhanced investments and whose objective was to jolt the economy up into a higher investment mode that would generate a much higher growth rate. The planning framework rested on two legs. First, it sought to make the escalated growth credible to private iinvestors so that they would proceed to invest on an enhanced basis in a self-fulfilling prophecy.Second, it aimed at generating the added savings to finance the investments so induced. His argument crucially rested on the fo llowing logical theory. For the higher growth rate to achieve it is very important for the economy concerned to be open. If the effective exchange rate for exports over the effective exchange rate for imports (signifying the relative profitability of the foreign over the home market), ensured that the world markets were profitable to aim for, guaranteeing in turn that the inducement to invest was no longer constrained by the growth of the domestic market.It is worthwhile to recount India’s performance as far as the public sector savings is concerned, which was considered a major hindrance towards the success of the Indian plans. Continuing with the argument, the generation of substantial export earnings enabled the growing investment to be implemented by imports of equipment embodying technical change. If the Social Marginal Product of this equipment exceeded the cost of its importation, there would be a ‘surplus’ that would accrue as an income gain to the econom y and boost the growth rate.The role of literacy and education comes at the next stage. The pproduactivity of the imported equipment would be greater with a workforce that was literate and would be further enhanced if many had even secondary education. Now his argument is based on the fact that the enhanced growth would demand and lead to a more educated workforce. Thus 6 he considers that primary education and literacy plays an enhancing, rather than initiating role in the developmental process. Sen on the other hand considers a larger view of development.He believes that questions such as whether certain political or social freedoms, such as the liberty of political participation and dissent, or opportunities to receive basic education, are or not â€Å"conducive to development† misses the important understanding that these substantive freedoms are among the constituent components of development. Their relevance for development does not have to be freshly established throug h their indirect contribution to the growth of GNP or to the promotion of industrialization.While the causal relation, that these freedoms and rights are also very effective in contributing to economic progress, the vindication of freedoms and rights provided by this causal linkage is over and above the directly constitutive role of these freedoms in development. I think that it is precisely at this point where some of Sen’s writings on economics and philosophy should be considered. According to Sen, economics as a discipline has tended to move away from focusing on the value of freedoms to that of utilities, incomes and wealth. This narrowing of focus leads to an underappreciation of the full role of the market mechanism.For example, take the example of the most important finding on the theory of the markets- the Arrow-Debreu equilibrium. That theorem shows that a competitive economic system can achieve a certain type of efficiency (Pareto efficiency to be precise) which a c entralized system cannot achieve, and this is due to reasons of incentives and information problems. But if we suppose that no such imperfections do exist and the same competitive equilibrium can be brought about by a dictator who announces the production and allocation decision, then are these two outcomes the same?In a much celebrated paper, Sen brings out the distinction between â€Å"culmination outcomes† (that is, the only final outcomes without taking any note of the process of getting there) and â€Å"comprehensive outcomes† (taking note of the process through which the culmination outcomes come about). Along these lines we can argue that Sen would disagree with Bhagwati’s point of view in that it does not consider the â€Å"comprehensive outcomes†.Though the outcomes may be the same if we bring about a simultaneous increase in investments in education, health and other social activities, with that of growth, as against a 7 framework where growth b rings about a derived demand for those activities (a la Bhagwati), these are not the same thing. So as we can see, the primary difference in the approach is that Bhagwati argues that poverty and social dimensions can be taken care of in the second step of the development process while Sen argues that social oopportunity is a constitutive element in the developmental process.In this respect it is helpful to scrutinize the East Asian case, where countries like Japan, South Korea, Taiwan (so called Asian Tigers) achieved phenomenal rates of growth in the 80’s and much of the early 90’s. The interesting fact about these countries is that they achieved this with a significant high record on the social dimensions. Both Bhagwati and Sen has commented directly on the achievement of these countries. As Bhagwati states â€Å"The East Asian investment rate began its take-off to phenomenal levels because East Asia turned to the Export promotion (EP) strategy.The elimination of th e ‘bias against exports’, and indeed a net excess of the effective exchange rate for exports over the effective exchange rate for imports (signifying the relative profitability of the foreign over the domestic market), ensured that the world markets were profitable to aim for, guaranteeing in turn that the inducement to invest was no longer constrained by the growth of the domestic market as in the IS strategy†. I personally think that there is nothing disputable in this analysis but it does not strengthen his argument that the social achievements in these countries followed their phase of growth.In fact the pioneering example of enhancing economic growth through social oopportunity, especially in basic education, is Japan. Japan had a higher rate of literacy than Europe even at the time of the Meiji restoration in the mid nineteenth century, when industrialization had not yet occurred there but had gone on for many decades in Europe. The East Asian experience was also based on ssimilar connections. The contrasts between India and China are also important in this aspect. The governments of both China and India has been making efforts for sometime now to move toward a more open, internationally active, market-oriented economy.While Indian efforts have slowly met with some access, the kind of massive results that China has seen has failed to occur in India. An important factor in this contrast lies in the fact that from a social preparedness standpoint, China is a great deal ahead of India in being able to make use of the market economy. While prereform China was deeply skeptical of markets, it was not skeptical of basic education and 8 widely shared health care. When China turned to marketization in 1979, it already had a highly literate people, especially the young, with good schooling facilities across the bulk of the country.In this respect, China was not very far from the basic educational situation in South Korea or Taiwan, where too an educated population had played a major role in seizing the economic opportunities offered by a supported market system. Indeed it is often argued that it is a mistake to worry about the discord between income achievements and survival chances-in general- the statistical connection between them is observed to be quite close. It is interesting, in this context, to refer to some statistical analyses that have recently been presented by Sudhir Anand and Martin Ravallion.On the basis of intercountry comparisons, they find that life expectancy does indeed have a significantly positive correlation with GNP per head, but that this relationship works primarily through the impact of GNP on (I) the incomes specifically of the poor and (2) public expenditure particularly in health care. In fact, once these two variables are iincluded on their own in the statistical exercise, little extra explanation can be obtained from including GNP per head as an additional causal influence. The basic point i s that the impact of economic growth depends much on how the fruits of economic growth are used.Sen argues that a focus on issues on basic education, basic health care and land reforms made widespread economic participation easier in many of the East Asian and Southeast Asian economies in a way it has not been possible in, say, Brazil or India, where the creation of social opportunities has been much slower and that slowness has acted as a barrier to economic development. I believe that one has to take note of the examples of say, Sri Lanka, the Indian State of Kerala or pre-reform China where on the contrary, impressive high life expectancy, low fertility, high literacy and so on, have failed to translate into high economic growth.I would like to see a theory which explains this. But to elucidate Sen’s view, he would rather prefer a situation of that of Kerala or Sri Lanka than that of Brazil or India. I would suggest that what one needs is such critical studies which would illuminate the failure of Brazil on one hand as against Sri Lanka on the other, to illustrate the fact that why an egalitarian growth process was not successfully implemented in these cases. We will have useful lessons to learn in that case for the future of development. The debate 9 between Bhagwati and Sen (or rather the created debate in this paper) gives rise to such an agenda.The Reforms of Manmohan Singh At the beginning of 90’s the reform process was started by the then Finance Minsiter of India, Manmohan Singh. The way I will organize this section is the following: First, I will give a short summary of the reform process , in the sense what were its general goals and ideas. Then I will mention some aspects of the reforms which I think are very encouraging. After that I will scrutinize the reforms more stringently in order to assess whether there is real cause for such jubilation that we tend to observe regarding India. (i)The Background: India’s economic reform s began in 1991 under the Narsimha Rao Government. By that time the surge in oil prices triggered by the Gulf War in 1990 imposed a severe strain on a balance of payments already made fragile by several years of large fiscal deficits and increasing external debt as was discussed before. Coming at a time of internal political instability, the balanceof-payments crises quickly ballooned into a crisis of confidence which intensified in 1991 even though oil prices quickly normalized. Foreign exchange reserves dropped to $1. billion in 1991, barely sufficient for two weeks of imports and a default on external payments appeared inevitable. The shortage of foreign exchange forced tightening of import restrictions, which in turn led to a fall in industrial output. A digression: The politics of reforms In a very engaging article on the politics of reforms Ashutosh Varshney has raised an extremely important question as to why was India’s minority government in 1991 successful in introd ucing economic reforms, whereas a much sthronger government, with a three-fourth majority in parliament, was unable to do so in 1985 (under the Prime Ministership of Rajiv Gandhi)?His argument draws a distinction between mass politics and elite politics. He believes that â€Å"this distinction has not been adequately appreciated 10 in the voluminous literature on the politics of economic reforms. Scholars of economic reforms have generally assumed that reforms are, or tend to become, central to politics. Depending on what else is making demands on the energies of the electorate and politicians- ethnic and religious strife, political order and stability, corruption and crimes of the incumbents- the assumption of reforms centrality may not be right†.In the largest ever survey of mass political attitudes in India conducted between April-July 1996, only 19 ppercent of the electorate reported any knowledge of economic reforms, even though reforms had been in existence since July 1 991. Of the rural electorate, only about 14 per cent had heard of reforms, whereas the comparable proportion in the cities was 32 per cent. Further nearly 66 ppercent of the graduates were aware of the dramatic changes in economic ppolicy, compared to only 7 per cent of the poor, who are mostly illiterate.In contrast, close to three-fourths of the electorate – both literates and illiterates, poor and rich, urban and rural- were aware of the 1992 mosque demolition in Ayodhya; 80 per cent expressed clear opinions about whether the country should have a uniform civil code or religiously prescribed and separate laws for mmarriage, divorce, and property inheritance; and 87 per cent took a stand on caste-based affirmative action. Thus according to Varshney, elite politics is typically expressed in debates and struggles within the institutionalized settings of a bureaucracy, of a parliament or a cabinet.Mass politics takes place primarily on the streets. In democracies, especially p oor democracies, mass politics can redefine elite politics, for an accumulated expression of popular sentiments and opinions inevitably exercises a great deal of pressure on elected politicians. The economic reform’s during 1991 kept progressing because the political context had made Hindu-Muslim relations and caste animosities the prime determinant of political coalitions. The reforms were crowded out of mass politics by issues that aroused greater passion, and anxiety about the nation.And hence the reforms could go as far as they did. (ii) The Reforms in a Nutshell: The reforms had two broad objectives. One was the reorientation of the economy from a statist, centrally directed and highly controlled economy to what is referred to in the current jargon as a ‘marketfriendly economy’. A reduction direct controls and physical planning was expected to improve the efficiency of the economy. It was to be made more 11 ‘open’ to trade and external flows thr ough a reduction in trade barriers and liberalization of foreign investment policies.A second objective of the reform measures was macro-economic stabilization. This was to be achieved by substantially reducing fiscal deficits and the government’s draft on society’s savings. (iii) Results: Compared with the historical trend, the impact of these policies has been positive and significant. The growth rate of the economy during 1992-93 to 1999-2000 was close to 6. 5 per cent per annum. The balance of payments position has also substantially improved.Despite several external developments, including the imposition of sanctions in 1998 and sharp rise in oil prices in 2000-01, foreign exchange reserves are at a record level. Current account deficits have been moderate, and India’s external debt (as a ppercentage of GDP) and the debt servicing burden have actually come down since the early nineties. There is also evidence of considerable restructuring in the corporate s ector with attention being given to cost-competitiveness and financial viability.The rate of inflation has also come down sharply. (iv) A Closer Scrutiny: When we talk about GDP growth we talk about the aggregate figures. Let us closely look at the sectoral composition. If we look at the growth rates with respect to different sectors we find that the growth rates of agricultural and industrial production have not increased at all in the nineties, compared with the eighties. The increase in overall growth in the 1990’s is overwhelmingly driven by accelerated growth of the ‘service’ sector.The service sector includes some very dynamic fields, such as uses of information technology and electronic servicing, in both of which India has made remarkable progress. This was largely a result of the liberalization policies initiated by Manmohan Singh. Ssimilar comments apply to the phenomenal expansion of software-related export services. Now the relevant question is, what is wrong in the fact that the services sector is driving the growth process in India?What is a bit disturbing is the fact that it is not clear as to the extent to which the rapid growth of the service sector as a whole contributes to the generation of widely-shared employment, the elimination of poverty, and the 12 enhancement of the quality of life. And also employment in the service sector is often inaccessible to those who lack the required skills or education. The current restructuring to the Indian economy towards this skill and education-intensive sector reinforces the resources to a certain ection of the society. How has the Reforms been successful in creating a widely shared developmental process? The issue as to whether the reforms have been successful in eliminating poverty to a greater extent than say in the 80’s is a contentious issue. Experience prior to the 1990s suggests that economic growth in India has typically reduced poverty. Using data from 1958 to 1991, Ravallion and Datt (1996) find that the elasticity of the incidence of poverty with respect to net domestic product per capita was –0. 5 and that with respect to private consumption per capita it was –0. 9. However, the 1990s are more contentious. Some observers have argued that poverty has fallen far more rapidly in the 1990s than previously (for example, Bhalla, 2000). Others have argued that poverty reduction has stalled and that the poverty rate may even have risen (for example, Sen, 2001). The basic question of measuring India’s poverty rate has turned out to be harder to answer than it needed to be because of difficulties with coverage and comparability of the survey data.Correcting for all those, Datt and Ravallion in a recent study find that India has probably maintained its 1980s rate of poverty reduction in the 1990s, though they do not find any convincing evidence of an acceleration in the decline of poverty. It is probably apt to remark here that oft entimes the public rhetoric fails to take the incomparability problems in the surveys from which the poverty estimates are calculated and try to interpret the estimates to reinforce their particular arguments.Even the Finance Minister’s ‘budget speech’ of Feb 2001 coincluded firmly that ‘poverty has fallen from 36 ppercent in 1993-4 to 26 ppercent or less now’. It is worth noting that even if one were to endorse the official 1999-2000 headcount ratio of 26 per cent, which is known to be biased downwards, one would find that poverty reduction in the 90s has proceeded at a ssimilar rates as in the earlier decades, in spite of a significant acceleration in the economic growth rate. As things stand, this is the most optimistic reading of the available evidence.All of the estimates were made with respect to head-count indexes. I think it is necessary to move away from this narrow index and to consider a broader range of social 13 indicators. Much of the d ebate in this area has focused on what has happened to expenditure on social sector development in the post reform period. Dev and Mooji (2002) find that central