The Problem And Review Of Related Literature And Studies

IntroductionThe practice of Pharmacy has step by step improved throughout the most recent couple of years, from the customary practice, quiet guiding to administering mechanization, the training keep on growing more intends to convey proficient pharmaceutical mind and encourage the decrease of prescription mistakes in all parts of social insurance. Strikingly, one of the implies that was actualized is the program called Telepharmacy. This program is as of now rehearsed in North Dakota, Washington and Australia.Telepharmacy is characterized as â€Å"the utilization of best in class media transmission innovation by the drug specialists to have the option to give pharmaceutical consideration to patients a ways off. † (Khatri, 2006). Components related with the impeding of value pharmaceutical assistance in remote networks are topographical boundaries, absence of accessible drug specialists dealing with remote towns, separation of the drug stores, budgetary issues and inaccessibil ity of the prescriptions, which will be adequately tended to by actualizing the telepharmacy.Several examines have likewise inferred that constrained drug specialist hours antagonistically influence the commitments that drug specialists can make to medicine security in rustic emergency clinics. (M. Casey et al. , 2008). With the usage of Telepharmacy, conveyance of 24-hours pharmaceutical assistance will be tended to. As media transmission being a key piece of powerful trade of data, its application to the act of apportioning clinical data represents a significant commitment to the field of Pharmacy, clearing another way to viable conveyance of pharmaceutical consideration to patients at a distance.With the modernization and developing multifaceted nature of prescriptions being fit for relieving, moderating and rewarding infection, the requirement for the Pharmacists turns out to be increasingly apparent to guarantee the safe and financially savvy utilization of it. Since the Teleph armacy program is fit for growing better access to an increasingly productive medicinal services any place the patients are, sufficient consideration must be utilized to the program and the availability of network drug specialists for the program must be set up. With Telepharmacists being the ones performing total medication usage reviewson the patient medicine profile and playing out the obligatory patient training advising to patients via telephone, the availability of the network drug specialist on the undertaking is critical to the compelling execution of the Telepharmacy (C. Peterson, H. Anderson et al. 2004). Despite the fact that drug specialists are not truly present in their general vicinity, patients can get to counsel with an enlisted drug specialist and get their solution checked through video conferencing (Riley, 2010).Enabling administering of prescription by means of telepharmacy will expand access to more drug store administrations by more patients. By telepharmacy, the issues and limitations relating to medicine directing by Pharmacists will be tended to even in the most dire time and circumstances. The preparation of the Registered Pharmacists for the program will prompt the achievement of the Telepharmacy in the nation since it will in the long run imply that the objectives that were set up for were accomplished, the proposed designs were met and by and large created a solid impression or reaction from the clients.Licensed drug specialists give customary drug store administrations, including drug usage audit, solution confirmation, and patient guiding to a remote site through telepharmacy innovation. Holding the dynamic job of the drug specialist guarantees the conveyance of protected, great drug store benefits that can be in danger when the drug specialist is forgotten about as on account of web and mail-request pharmacies.(Peterson, 2004) The scientists accept that in seeking after this investigation, the familiarity with people in general and expert the same on the enormous commitment of Telepharmacy which is completely rehearsed in different nations in assistance of value pharmaceutical consideration will be raised impressively. Furthermore, alongside the possibility that Telepharmacy lessens any conceivable medicine mistakes, with Pharmacists giving direction on the telephone, the act of Pharmacy in the nation will be improved which will result to its full usage in the Philippine setting in this manner denoting the pharmacist’s job as increasingly essential to the social insurance of the Filipinos.The assessment of the preparation of the Pharmacist will step stone to demonstrate that the Telepharmacy program can be done effectively in the nation. With this investigation, the chance of the act of Telepharmacy in Philippine setting will be resolved and surveyed, which will render it as a proof for the administration to be used more in the nation for increasingly viable medication data dispersal. Audit of Rela ted LiteratureTelepharmacy can possibly improve the nature of pharmaceutical consideration and decline prescription mistakes and unfriendly medication occasions in little country clinics. In any case, since telepharmacy is generally new, there is little writing in peer-investigated diaries. (M. Casey, et al, 2008). In different nations, the execution of Telepharmacy in administering drug data to patients a ways off is by and large significantly used because of its impressive value on improving the act of Pharmacy and they were even ready to create different models of the service.In the US, there are two models of telepharmacy: North Dakota Telepharmacy and Washington State Model, utilizing drug specialists offering guidelines to the professionals through a video-conferencing connection and drug specialists enacting programmed apportioning framework from the base site to be administered by an approved staff at the remote site, separately. Australia likewise built up a Rural Clinic Mo del of Telepharmacy that grants non-drug specialist experts to render the pharmaceutical administrations. In all the models of telepharmacy previously mentioned, the apportioning stage are totally partitioned into 5 stages: 1.) Prescription 2. ) Prescription Entry and Verification 3. ) Dispensing Process 4. ) Dispensing Verification and 5. ) Patient Counseling, with the last being finished by the drug specialists as required in all the three models (M. Kimber, et al, 2006) According to an ongoing money saving advantage study directed by Westerlund and Marklund (2009) in Sweden, when drug specialists are engaged with essential consideration, out of 151 patients utilized in the examination, 68 patients (13%) were spared from sedate related issues and 16 patients (3%) were spared from future hospitalizations.Quality pharmaceutical administrations have been portrayed as: administering, gracefully and dispersion of meds; arrangement of information and data about medications, with the ess ential goal being the advancement and confirmation of value utilization of prescriptions (QUM); and arrangement of pharmaceutical consideration, which includes drug specialists reacting to patients’ tranquilize related requirements to help them accomplish their ideal wellbeing results. (M. Kimber, et al, 2006).The actuality that the Telepharmacy administration licenses conveyance of viable pharmaceutical consideration to more patients a good ways off, this commitment will offer more noteworthy edge on the act of Pharmacy all in all and is reliable with the fundamental objective of the training which is drug specialists being a crucial piece of the social insurance framework as the specialists in tranquilize use. Notwithstanding the commitment of telepharmacy to the training, it likewise offers critical bit of leeway on the human services framework on its capacity to give laborers in increasingly remote settings.The fundamental point of tele-drug stores is to furnish most extr eme inclusion in territories with hardly any drug stores and increment the income for drug store administrators (Riley, 2010). Telepharmacy plans have been proposed as a path for littler provincial emergency clinics with restricted drug specialist inclusion to acquire extra drug specialist assets (Lordan, Vorhees, and Richards, 2002; Peterson et al, 2007). Since half of the Philippine populace lives in rustic and remote networks, this calls for sure fire consideration on giving sufficient and quality pharmaceutical consideration in the said locations.According to the Report of the Commision on the Future Care in Canada by Romanow (2002), telepharmacy, as a major aspect of telehealth, is considered as an instrument for improving access to human services administrations for country and remote networks. The telepharmacy is outfitted with camcorders so the drug store expert can be regulated by an enlisted drug specialist. The area of the remote drug store is frequently connected to foca l drug store programming to make this procedure cover and guarantee convenient and right conveyance (Riley, 2010).With the dynamic and transitional improvement of the media transmission innovation in present time, the guiding of drug specialists to patients a ways off will be conveyed effortlessly and accommodation. Appropriation of telepharmacy has been moderate, yet the intermingling of accessible innovation and reestablished enthusiasm for another drug store practice model has made a one of a kind situation that may introduce the ideal open door for telepharmacy.(Fahrni, 2012) Telepharmacy essentially offers advantage on tending to prescription inquiries through phone by wiping out all hindrances of correspondence with regards to conversation of individual and secret issues of the patients. As per the investigation of Louderback (2007), circumstances, for example, â€Å"traveling two to five hours for arrangements isn't just tedious, however costly† impact patients’ choices to move toward medicines. This is one reason why medicines brings about more unfortunate control of incessant wellbeing condition particularly to the old individuals living in the remote towns.Research additionally affirms that â€Å"economic pressures and geographic boundaries are troubles that country older folks face when they try to get physician recommended medications† (Collins, 2007). It clearly requires the way that there is a requirement for telepharmacy to improve the administration of incessant conditions and decrease the consumptions required to move patients for prescription treatment, particularly the individuals who brought about medication

Stand By Me - Critical Evaluation essays

Remain By Me - Critical Evaluation expositions I have recently watched Stand By Me which is a movie coordinated by Rob Reiner. It is around four young men who choose to proceed to locate a dead body, with the goal that they can enlighten the police concerning it and thus be acclaimed. The young men are called Gordie Lachance, Chris Chambers, Teddy Duchamp and Vern Tessio. In transit they experience numerous undertakings, for example, running from a train and standing up for themselves with a weapon. In this article I will examine how the movie producers make the film fascinating and charming. Gordie, Chris, Teddy and Vern are closest companions. When Vern catches his sibling and his companion discussing the dead body they have discovered, the four young men choose to proceed to search for it with the goal that they can get well known. During the excursion they address numerous difficulties, which test their companionship, such as getting away from the Junkman and his feared hound Chopper. At the point when they get to where the dead body is, after much choice they choose to telephone the police namelessly. In any case, when they get up to leave, Verns sibling and his companions defy them. They need the body themselves so they can get acclaimed. The more youthful young men wind up going to bat for themselves by compromising Ace and his companions with a firearm. Gordie Lachance, who is played by Wil Wheaton, is very creative, as he recounts to his companions stories all through this film. He additionally prefers to compose stories. Gordie is additionally very fearless and reasonable. We know this since he went to bat for himself and his companions with a weapon, yet was not really idiotic enough to shoot Ace. He is likewise truly adept at offering guidance as he gives Chris bounty during this film. For instance, when Chris is feeling down in light of the fact that he accepted that his future was inescapable for him and that he could never escape the unassuming community he experienced childhood in, Gordie empowered him and reveals to him that, anything he desires to do, he can do, and on the grounds that his family hadnt tried doing anything with their lives, it didnt imply that he must be a similar way... <!

Bteac National It Unit 2 Information Systems D1 Essay Example

Bteac National It Unit 2 Information Systems D1 Paper D1 Explain how programming utilities can improve the presentation of PC frameworks Computers frameworks are a basic bit of hardware in numerous people’s regular day to day existences they need to manage a great deal of procedures data and have the option to go on the web where there is a danger of getting infections and bugs. This is the reason PC frameworks must be outfitted with the correct programming utilities to guarantee that they are working at their best consistently. There are a wide range of sorts of programming utilities accessible for a PC framework I will clarify them in detail in this report. Firewalls Most if not all organizations, schools and huge organizations consistently use PC frameworks and go on the web they as a rule have numerous PC frameworks arranged together that get utilized for significant data and keep their organizations running. This is the reason they introduce firewalls on their frameworks. Without firewalls there is the danger of malignant infections overcoming, tainting the framework and once in a while bringing it down totally. The firewall goes about as a correspondences channel which prevents those pernicious interchanges from arriving at the PC framework. Firewalls can likewise be customized to just visit certain locales this will ensure that there is no way of an infection. Firewalls certainly improve the exhibition of PC frameworks. Plate defragmenters Over the hour of utilizing a PC framework it will begin to hinder this is a direct result of the product that gets introduced and erased off the hard circle. We will compose a custom exposition test on Bteac National It Unit 2 Information Systems D1 explicitly for you for just $16.38 $13.9/page Request now We will compose a custom exposition test on Bteac National It Unit 2 Information Systems D1 explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom exposition test on Bteac National It Unit 2 Information Systems D1 explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer At the point when you introduce programming on to a PC framework the data gets put into areas of the hard circle. at the point when you run it a little arm moves to the part that has the data and afterward it stacks yet additional time when the plate gets brimming with data it takes more time for the little arm to arrive at the spot with all the data likewise in light of programming that is erased there are spaces dispersed everywhere throughout the hard circle making data significantly longer to find this is the place circle defragmenters come in to play. The circle defragmenter is a device that tidies up your hard plate and places all data into request so it is anything but difficult to track down for the framework this at that point makes the applications run a lot snappier. Drive designing Drive organizing is the procedure wherein you delete information from your hard drive When you position a hard drive theâ operating framework eradicates all accounting data on the plate, at that point it tests the hard drive to ensure allâ sectorsâ are solid, checks awful divisions (that is, those that are damaged or in any case harmed), and makes internalâ addressâ tables that it later uses to find data. Before you utilize another hard drive you should ensure it is designed. There is likewise reformatting this is the point at which you take a hard drive that you have just arranged and organization it again this procedure has a tremendous effect to the speed of your framework since it erases all the trash on the drive.

Top How to Write a Cause and Effect Essay Samples Secrets

Top How to Write a Cause and Effect Essay Samples Secrets There's, obviously, a limit on the variety of pages even our finest writers can produce with a pressing deadline, but usually, we figure out how to satisfy all the clients seeking urgent assistance. You'll be surrounded by writing professionals throughout the plan of order placement, and the moment you opt to purchase essay and select an allocated writer, things are likely to get even more exciting. In fact, a seasoned writer can do the job much faster than any student as they've been writing academic assignments during their entire life. Quit worrying because writing isn't a burden, but a challenge you ought to be ready to take on. How to Choose How to Write a Cause and Effect Essay Samples Get in touch with us now to learn how it is possible to secure an excellent essay for a moderate price. In any case, every one of them has to be supported by vivid particulars. Opt for the most fascinating topic and narrow it down so you may present it from your viewpoint. The moment you gather basic info and you've decided on the subject, you want to create a thorough plan. At the conclusion of the very first paragraph, it does have a wide overview. Regardless of what way you select, it's necessary for you to compose reasonable topic sentences to each paragraph. The essential point to a prosperous essay is having the proper structure. To begin with, it ought to be a strong point, as it's your opinion. The War Against How to Write a Cause and Effect Essay Samples Make a list of potential topics that you wish to describe in your cause and effect essay. In the majority of instances, the info you already have won't be sufficient to compose a detailed, captivating paper, that's why you'll be asked to perform research to acquire as much additional information as you are able to. Questions are fundamental in regards to presenting the effects. In any scholarship essay some vital parts ought to be covere d. Furthermore, it's super important to found your essay around your major bodies rather than your thesis statement. Reading cause and effect essay examples can help you make your own writing. There's one primary issue with the five paragraph essay. In truth, it is highly recommended that essay writers must produce ways on earning your topic interesting. Writing an essay outline can be as simple as you wish to make it. Essays might be lightly modified for readability or to defend the anonymity of contributors, but we don't edit essay examples before publication. Don't be afraid to get in touch with our Essay Writing Service and skilled essay writers will gladly aid you with your assignment. Employing an essay outline makes it possible to organize your thoughts from starting to end and makes sure that you don't leave any vital parts from the middle! For every one of your requirements in any sort of academic paper writing, try to remember that you could always contact the skilled and certified academic writers of ProfEssays.com. The cause and effect essay outline is likely to serve you as a guide for the remainder of the paper. In the majority of instances, students become confused when they're writing the rough draft of the ir paper. Despite the fact that it can be difficult to write, it's frequently the most fascinating and fulfilling sort of cause and effect essay. Broadly speaking, there are 3 kinds of cause and effect essays. In order to comprehend how to compose a very good cause and effect essay, you have to know four primary points. You are able to organize the data in the primary body differently, based on your aim. In everyday life you've already employed the essentials of analysis of causes or effects. You may not wind up using all the causes and effects listed in your chart. While describing a health problem such as some type of disease, it's possible to include a number of results. You can begin by describing effects. Getting able to comprehend the logic behind cause and effect in your day-to-day life, and also throughout the world, will help you as a writer and can help you avoid a complete array of prospective problem later on. The middle area of the essay is its entire body. Before you commence working on cause and effect essay outline the very first thing you have to do is to decide on a winning topic. You should have your reasons, and our principal concern is that you find yourself getting an excellent grade. Visualizing things is a strong method. Placing numerals and creating topic makes it much easier to recognize the info that supports thesis statement. If you wish to compose a great hypothesis, it's important you know the features of a fantastic hypothesis. Ultimately, the conclusion is nearly non-existent. An effective Conclusion usually means that you are in possession of a well-developed comprehension of the subject.

Fight Club Essay - 1016 Words

Fight Club David Flinchers movie, Fight Club, shows how consumerism has caused the emasculation of the modern male and reveals a tale of liberation from a corporate controlled society. Societys most common model of typical man is filthy, violent, unintelligent, immature, sexist, sex hungry, and fundamentally a caveman. In essence Tyler Durden, is the symbolic model for a man. He is strong enough to withstand from societys influences and his beliefs to remain in tact. Jack, the narrator, on the other hand is the opposite. He is a weak, squeamish, skinny man who has not been able to withstand societys influence; therefore, he is the Ikea fetish. Unlike Tyler, Jack is weak minded. Both Jack and Tyler are polar opposite models of†¦show more content†¦Society has taken the very essential feature of being a man and taken it away creating a more feminine man. The term itself almost leaves us with an image of a castrated man. (explain more what is consider a real man) For instance, Bobs character which Jack meets at one of the support groups who is emasculated. (Fragment) Bob was a champion bodybuilder, an autonomous and strong male, but had his testicles detached and his hormone disproportion caused him to produce enormously large breasts and his voice to become higher (do you mean deeper). Therefore, Bob goes to a testicular cancer group so he could share his feelings, have strength and courage, to cry. He was previously a strong and independent male, but now he is pathetic and dependent. Bob becomes more of a woman than a man because of how society views what a real man considers. It is because of Bobs big breast and his feminine side has made him become emasculated. So, Bob somehow decided to join the Fight Club to make him not so emasculated. Returning to the men at the meeting who had divorced from their wives, we realize that the room is full of men that women do not want, which in itself already can emasculate a man. Also, if you pay attention to the first few lines at the beginning of the movie, Jack speaks about how the whole situation has to do with a girl, Marla Singer. Later on in the story, Marla is attracted to Tyler (Jacks alter ego), while once Jacks ownShow MoreRelatedFight Club1673 Words   |  7 PagesMelissa Gonzales Prof. O’Connell English 215 09, December 2013 Fight Club Fight Club by Chuck Palahniuk uses violence for most of recorded history, violence has played a major role in our lives; for example, through country conflicts to world wars, violence seems to be the tool to our defense. Even in our daily lives, when encountered a conflict, we humans want to make it disappear as quick as possible. We do this by using violence unconsciouslyRead MoreFight Club Essay1184 Words   |  5 PagesFight Club In the book Fight Club, by Chuck Palahniuk, the narrator is an employee for a travelling car company, who suffers from insomnia. When he asks his doctor for medication the doctor refuses and advises him to visit a support group to witness what suffering really is. The first group the narrator attends is for testicular cancer victims. He finds an emotional release that relieves his insomnia and becomes addicted to support groups. After a flight home from a business trip, the narratorRead MoreEssay on Fight Club1189 Words   |  5 PagesThis movie is mainly about a narrators search for meaning and the fight to find freedom from a meaningless way of life. It setting is in suburbia, an abandoned house located in a major large city. Ed Norton, plays the nameless narrator, Brad Pitt, is Tyler Dunden, and Helena Boaham Carter is Marla Singer, the three main characters. David Fincher directs this film in 1999, which adapted it from the novel written by Chuck Palahnuik. It begins depicting Edward Norton, the narrator, working for anRead MoreFight Club Analysis1678 Words   |  7 PagesDo you find yourself lost, searching for self-worth in modern Society? The Narrator in Chuck Palahniuk’s novel Fight Club struggles with insomnia due to his repetitive nine to five office-job. He longs to feel alive, thinking that purchasing materialistic objects and conforming to what modern society considers the norm will fill his void. Tyler Durden, The Narrators alter ego states, â€Å"the first step to eternal life is you have to die† (Palahniuk 11). His extreme statement represents that one mustRead MoreFight Club Analysis1745 Words   |  7 PagesFight Club There is enough on earth for everybodys need, but not for everyones greed.† Mahatma Gandhi This quote fits perfectly on me. Even though I have enough clothes to last an entire lifetime, yet I keep finding myself at the mall, buying things I simple do not need at all. And I am not the only one, millions of people is doing the same thing. It is because we need certain things: we desire different certain things. Now what is that problem called? Consumerism. Modern society is basedRead More Fight Club Essay768 Words   |  4 PagesProblems with Adaptation, says â€Å"We expect the film to duplicate exactly the experience we had seeing the play or in reading the novel. That is, of course, completely impossible† (Boggs 672). No one told this theory to David Fincher, the director of Fight Club. Fincher stuck almost like glue to the novel. He did however, change a few events in the novel and the ending but stills successfully puts Palahniuk’s words on screen that even made Palahniuk happy to earn his profits. nbsp;nbsp;nbsp;nbsp;nbsp;MostRead MoreFight Club Analysis1237 Words   |  5 Pagesof the Late Robert Paulson Fight Club: every white man’s favorite movie and my worst nightmare turned reality. Much of the novel version of Fight Club struggles with this issues of toxic masculinity, feminization, and emotional constipation. No character addresses these topics better than Robert Paulson, better known as Big Bob; it is his character that serves as a catalyst for both The Narrator, and Project Mayhem. One of the first major problems addressed in Fight Club is toxic masculinity, andRead MoreFight Club Essay1525 Words   |  7 PagesFight Club â€Å"The first rule about fight club is that you don’t talk about fight club† (Palahniuk 87). The story of Fight Club was very nail biting; you never knew what was going to happen next. There were so many things that led up to a complete plot twist. It was amazing how closely directed and written Chuck Palahniuk and David Fincher’s versions were. However, the role in both that stood out to me the most was the role of Marla. Marla was the biggest influence in discovering the narratorRead MoreFight Club Essay2874 Words   |  12 PagesAlan Badel English 100/Major Essay #2 Professor Raymond Morris 23 October 2015 The Fight Club Aims to Free Individuals from Society’s Emasculating Shackles Chuck Palahniuk’s Fight Club is an exciting fictional novel that will hold the audience captive following three revolving main characters in Marla Singer, Tyler Durden, and the narrator himself as they take the reader through confusing twists and perspectives, while providing a most revealing closure. Although the title suggests an exclusiveRead MoreFight Club And The Man1874 Words   |  8 Pagessomeone else’s wishes. Unfortunately, most people pay this price without fully realizing the cost of American conformity. In their novels, Chuck Palahniuk and Sloan Wilson reveal the negative effects of the conformity supported by American society. Fight Club and The Man in the Grey Flannel Suit take a similar stance on the matter. Firstly, both novels suggest that societal expectations are inherently emasculating and serve to dampen one’s inner power. They suggest that one must give up a piece of

The Underground Railroad The United States History

The Underground Railroad is a popular topic in United States history, but many of the stories told about it are more myth than fact. Quilts have been often used as a symbol in children s picture books to further the understanding of one of the darkest periods of United States history: slavery. Parents and teachers have eagerly embraced these illustrated books as a way to understand and teach past turmoil. Many of these books suggest that people who participated in the Underground Railroad used quilts as a means of communication to help slaves safely escape to freedom. The idea of quilts as communication tools has been well-received, and many educators have created wonderful programs, guides, and lesson plans to extend the experience with these books and to further explore United States history; however, what is depicted in these books have been consistently contested by quilt historians and folklorists This essay discusses the myth that secret codes were stitched into quilts to help slaves escape to freedom and why this myth continues today. After the Civil War, an explosion of published information in the form of diaries, letters, and autobiographies like Incidents in the Life of a Slave Girl, written in 1861 by literate slave Harriet Jacobs and William Still’s 1871 The Underground Railroad, detailed the abuses of slavery (â€Å"Harriet A. Jacobs†; Still). In addition, from 1936-1938, the WPA Federal Writers Project conducted thousands of interviews and recorded the firsthandShow MoreRelated The Underground Railroad Essay1451 Words   |  6 PagesThe Underground Railroad The Underground Railroad was one of the most remarkable protests against slavery in United States history. It was a fight for personal survival, which many slaves lost in trying to attain their freedom. Slaves fought for their own existence in trying to keep with the traditions of their homeland, their homes in which they were so brutally taken away from. In all of this turmoil however they managed to preserve the customs and traditions of their native land. These slavesRead MoreThe Underground Railroad : The Declaration Of Independence1587 Words   |  7 PagesThe Underground Railroad The Declaration of Independence states all men are created equal, sadly in America that was not true. It was legal in America to own a person. In The Underground Railroad In American History, Kem Knapp Sawyer states that the number of slaves in the South had gone from 1,519,017 in 1820 to almost 4 million in 1860. Araminta Ross was one of those people. She was born a slave, beaten, abused and forced to work for her owners. Her life and her families’ life was extremelyRead MoreEssay On Underground Railroad1005 Words   |  5 Pages Underground railroads have been prominent in history since the early nineteenth century. Throughout time, numerous different underground railroads have been created for many different purposes, all liberating those subject to slavery or poverty. Modern slavery, known as human trafficking, usually affects immigrants who do not completely know their rights or who are tricked into a â€Å"job† that does not fit its original description. This applies to Unwind due to the way the kids are treated and theRead MoreThe Underground Railroad1073 Words   |  5 Pagesâ€Å"A national benefit.† said John C. Calhoun about the evil act known as, slavery (â€Å"The History of the United States). However the world was not completely full of ignorance even though it is shown here. â€Å"Whenever I hear anyone arguing for slavery, I feel a strong impulse to see it tried on him personally,† said by Abraham Lincoln. (â€Å"Quotes About Slavery†) No one had experienced anyth ing other than a world with slavery, and were not for having a change like this occur and change many people’s livesRead MoreStory Of Henry Box Brown1662 Words   |  7 PagesAs punishment in his state, he would be auctioned back off into slavery. Fortunately for Burris, one of his white associates impersonated a buyer at the auction to technically win back his freedom (Underground Railroad – Whisper†¦). While many unrecorded successful attempts have been undoubtedly lost to history, the ones that survived highlight the intelligence and craftiness of both the slaves and their allies. However, there were great risks. While the northern Untied States was a popular destinationRead MoreThe Underground Railroad1145 Words   |  5 PagesThe Underground Railroad marks a devastating time in our nations History. It is a topic that is generally known but not in depth. Starting in the early 1800’s the Underground Railroad was a way for the slaves to reach their freedom. Initially, I believed that there really was an actual underground tunnel, or railroad that slaves walked through that went from the South to the North. Through my research I have discovered that it was neither of the two, it was a variety of safe places in houses, barnsRead MoreUnderground Railroad Essay Outline1333 Words   |  6 PagesTHE UNDERGROUND RAILROAD 1 The Underground Railroad Raymond Allen Setlock West Catholic High School THE UNDERGROUND RAILROAD 2 Our country’s history had its good times and also its bad times. One of our bad times in our country’s history was the time when the United States allowed slavery toRead MoreThe Underground Railroad : The Secret System Of Escape During Slavery1107 Words   |  5 Pages The Underground Railroad The Underground Railroad is one of the most historical national monuments around the world. The term underground railroad was used to describe a network of meeting places, secret passageways, and safe houses used by the African slaves to escape the slave states and travel to the northern states, such as Canada (â€Å"Underground Railroad Where History†) . The Underground Railroad also had many prominent figures including Harriet Tubman, John Fairfield, and Levi Coffin (â€Å"PeopleRead MoreTaking A Stand Against Slavery1228 Words   |  5 Pagesshameful periods in history was the institution of slavery in the nineteenth century two. The theme  ¨Taking a Stand ¨ definitely hits the divided issue of slavery. Most slaves brought to America were known as low class individuals who could bring no good, but History fails to state that most of the slaves who came were people of many trades, ambitions, and determinations. The Underground Railroad had its earliest beginnings with runaway slaves fleeing from the the Southern United States into Canada. ByRead MoreSlavery And The United States1507 Words   |  7 Pagesfactor in United States history. Slavery shaped and formed what society was in the United States. Slavery’s influence impacted the United States in various ways. The ways that slavery impacted United States history are the United States economy, society and politics. Some historians argue slavery is not an important factor in United States history. However, they are wrong because slavery brought many different political movements and the Underground Railroad marked it’s importance in United States history

Cost Benefit Analysis free essay sample

Introduction This section covers 4 areas and should be written about the organisation as a whole not just the key area you will focus on later:- Overview of Business (cover PIC 1. 1, 1. 3, 1. 4) What do they do? How big are they? What external relationships do they have? Who are the key stakeholders? (key customers/ suppliers, staff, shareholders etc) Describe the accounts department structure (include a chart as appendix) How do they link with other departments? Financial Statements (cover PIC 1. 2) What Financial Statements do they produce? Why? – What is the purpose of each? What regulations are followed when preparing them? (internal policy, Co Act, UK GAAP, IFS, FRSSE) Regulations (cover PIC 2. 1, 1. 5) What other regulations do they comply with? ( tax, data protection, industry specific legislation? What happens when regulations change? Software (cover PIC 3. 3, 3. 4) Describe the accounting packages used, include details of what training is given to staff, do they have operational manuals or other written info, do they have help menus. We will write a custom essay sample on Cost Benefit Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Why do they use these systems? What are the alternatives, are they better or worse 5 Review of XX system This section reviews one area of the accounting system.  ( Pick one where there are weaknesses with potential for errors in the accounts). This section has three areas to be covered:- System requirements (Cover EAS 1. 1) Describe the system requirements. E.. g if you are reviewing a sales system you would explain that the organisation wants a system that will record all sales, at the correct date, quantity, price, etc Describe the reports that will be useful e. g. aged debt reports, sales by product, branch, manager etc. Potential fraud (cover EAS 1. 2, 1. 4, PIC 2. 1, 2. 2, 3. 1) Describe what fraud is and what regulations there are over fraud. Describe what potential there is for fraud and what controls there are in place at the moment to mitigate this. Is the resulting fraud risk high or low? You can include the fraud grid from your plan as an appendix. In the report you should write explaining each area in full paragraphs. Other weaknesses (Cover PIC 3. 1, 3. 3, EAS 1. 2, 1. 3, 1. 5) Describe weaknesses where errors are made in the accounts (? x). This could be due to poor training, jobs being rushed, work not adequately supervised or checked, lack of motivation for staff, or poor process and lack of controls. Describe the impact to the business ? x error, time wasted et 6 Recommendations (cover PIC 1. 5, 2. 4, 3. 3, EAS 2. 1, 2. 2, 2. 3, 2. 4) You should have one recommendation for each weakness (high fraud risk or other weakness). For each one describe who will do what, how often, how long will it take. What training will be required, will a manual be written, how will the new policy / procedure be communicated to staff so they know what to do? What are the cost ? x and time taken to set up the new procedure. What are the benefits – save time, reduce risk of errors / fraud, quicker info, better info? Provide a cost benefit analysis with detailed workings in an appendix ( you can use the table from your plan for this). 7 Appendices The appendices should be appropriate to your report and should appear in the order to which you refer to them in the report. Suggested appendices include:- †¢ Organisation chart †¢ Account department chart †¢ Details of interviews with colleagues/ line managers †¢ Bibliography – noting any material referred to – Kaplan notes, books, websites visited. †¢ Fraud matrix (see plan) †¢ Cost benefit analysis (see plan)

Mt.Zion free essay sample

Ahead of me is a makeshift cross held upright by rocks. Is this it? Answered by the sound of bulky packs thumping into the snow. I am here. Ascending treacherous Mt. Zion brought rough terrain, ten-hour climbs, and insufficient rest. Unaccustomed to fifty pounds on my back, my body ached. Each step I took pain scorched my lower body. Concluding the first day, my hips were bruised, legs torn, and ego destroyed. Day two: the Yasher Forest. Monstrous trees collapsed at my feet, I search for the sky but all I discover are countless treetops. A wall of dirt is before me- it seems to go on for eternity. Using my stamina I grab onto the vicious mountain and hoist myself up. My palms, pierced with pricks, my body pleads with me to quit. Hours later, I squint my eyes and peer ahead: white, sparkling, glowing, snow. Filled with unfamiliar hope, I will summit. We will write a custom essay sample on Mt.Zion or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Don’t you dare look down. I do. Below me is a sea of white, if I fall there is nothing to catch me. I stumble. My vision blurs, hands trembling, I forget to breathe. Knowing without my ice axe, right now I would be cascading down Zion. Repeating my mantra several times, I am focused, I climb on. Summit day. The white in front of my eyes startles me. Clouds and fog creates a strenuous journey. Impatience grows inside me; the sun will be setting soon. Before long, I see the cross. The simple wooden cross barley held together by a bandana on top of Zion is a memory that will never be erased. The instant I saw it a sense of satisfaction and accomplishment raced through me. I’m here. Standing under the vast red-orange sun, I am insignificant. On top of tremendous Mt. Zion, I am minuscule. My surroundings overwhelm me, what’s more astounding—I got myself there. Ascending Mt. Zion made me want to scream, â€Å"I give up!† But the gratification I experienced on the summit is my reminder to persist and be focused.

Exploring The New World essays

Exploring The New World essays Europeans had high expectations as they begun to explore the Atlantic. They were of course initially searching for the shortcut to find India. All of the European nation, namely Spain and Portugal, were trying to put their own stake on the route to India. They knew that once they found the magical route, that it would be their claim to fame and riches beyond their wildest dreams. The Spanish were heading west in order to find the shortest route east. There was only one problem, they would of course run into a massive land mass they had no clue existed. When The Spaniards found The New World, they immediately thought they had found India. They were mistaken. Once they made their way through the Caribbean, they found what is now known as Central America. They found something even greater than a route to spices and silk; they found entire cities made of gold. There was only one problem, there were cannibalistic people who lived there. The Spaniards took it upon themselves to try to make these heathens righteous in their eyes. They did this while they were burning down their cities, raping their women, and stealing all of their riches. The Spanish didnt start settling down in the New World until much later. The British had already settled almost everything east of the Mississippi. The few Spanish explorers who did land in Florida and explore land east of the Mississippi did help soften the Indian stronghold on the area. The Spanish helped by spreading all kinds of diseases that the Indians were not accustomed to. This wipe d out many Indian tribes, making lots of room for the upcoming British invasion. The Indians never saw it coming. There had been many rulers in England that had come and gone, but only one Queen, Elizabeth I, had the courage to push onward to the New World. When King James I took power, he chartered two companies and gave them the power to colonize. The first, and least su ...

Intercultural Conflict Resolution in Schools Assignment

Intercultural Conflict Resolution in Schools - Assignment Example Note that for research purposes, the real names of respondents were replaced. Justine: These programs help to establish peace, remove vehemence and create healthy relationships among students. In schools where cultural conflict is low, programs such as the Resolving Conflict Creatively Program (RCCP) have been implemented to help bring an understanding between students of different cultures. Justine: The schools address cultural conflicts by making sure these programs are run and encouraging teachers and parents to respect the diverse cultures within each school system. This starts by learning of the practices in other people’s cultures in order to ensure awareness. For instance, one’s culture may permit interaction of both sexes both in classroom sitting arrangements and the playgrounds while another culture is against this. The awareness by the students will ensure that the activities conducted by the students do not bring conflicts among them. The school should implement policies that respect each culture. They should educate on the harms of intercultural conflicts and penalize those who are intolerant to coexistence. Justine: The beliefs of some cultures lead to intercultural conflicts. This is for instance, in cases where big Korean girls share the same school with smaller Korean girls. According to their beliefs, the bigger girls are allowed to assault the smaller ones in case they believe they do not receive enough respect from them. This leads to conflicts. Justine: Students experience different conflicts in relation to cultural difference. These include socio-economic status conflicts, for instance as seen between Iranians and Soviet Armenians who share same cultural views but the conflict in socio-economic status from back in their communities. Conflicts are also evident in the formation of cliques, the rise of fights, formation of gangs, and even in assigning homework.

Young College Female Students in early 1960 to 1963 Research Paper

Young College Female Students in early 1960 to 1963 - Research Paper Example It has become one of the basic needs alongside the other needs like food, shelter, and clothing. The need for education traces its roots to the ancient times with the need to read, write, and perform some arithmetic operations that were necessary for daily activities. Education enables individuals to understand different aspects of life in order to lead a positive way of life. It determines career and enables an individual to earn a living. Education at a higher level involves a form of training that equips individuals with knowledge and skills that can be used in different production practices. It helps individual develop a profession. It is a tool used to empower women and the marginalized groups. Education enables individuals to understand their rights and the roles that they should play in the society. Societies comprise different categories of individuals some of which are marginalized. Females and the minority groups have been the subjects of such forms of discrimination in the societies in the past. Education is essential in preventing and managing such kinds of discrimination. Access to education is affected by different social and economic factors. The financial status of an individual may deny one access to higher education that is quite expensive in most countries. The social factors like the culture that prevails in a given society may also influence access to education. In the olden times, more values were given to the males as compared to the females. In such cultures, females were not allowed access to meaningful education. The females were arguably destined to marriage and it was considered meaningless giving them higher formal education. This practice was witnessed in different parts of the world up to the twentieth century. The availability of the learning facilities is also another factor. Proximity to the educational centers can affect an individual’s access to education. Education saw significant developments across the globe over th e last century. It was observed that the number of students enrolled in tertiary colleges in the world increased over two hundred times from 500,000 students in 1900 to over 100 million in 2000.1 The proportion of female enrollment has also increased considerably in the recent decades. Various initiatives have been established in different countries aimed at empowering women and other disadvantaged individuals in the society. Various women activists have emerged to fight discrimination against women through promoting education of the girl child. The modern family planning methods have also enabled females to carry on with their education beyond high school. In the older days, women got married and were in the family way at their early twenties- mostly before college education. Thus, the enrollment of female students in institutions of higher learning changed significantly from the last half of the nineteenth century and the beginning of the twentieth century. Similarly, the enrollme nt of females in the colleges in the mid twentieth century is significantly different from the current women enrolment in colleges across the globe. This paper focuses on the college enrollment of female students in the United States in the early 1960 to 1963. The pattern of female enrollment that was seen before this period as well as the patterns that have been seen in the following period is also examined. The paper also focuses on the factors that could have contributed to the changes observed in the enrollment patterns. Thesis statement Despite the difficulties that the activists have encountered in the reform movements, female education has improved over the last decades with the female enrollment

Issues Facing Latino Immigrants in Todays Political Climate Essay Example for Free

Issues Facing Latino Immigrants in Todays Political Climate Essay The United States is a country built on immigration, both legal and illegal. One of the most influential groups in terms of immigration in America is the Latin American demographic. Latin Americans influence everything from their local economies, politics, culture and society in general. There are a number of arguments made both for and against continued immigration by Latinos, from the fact that all Americans are descended from immigrants to the fact that they provide needed labor in areas that many American citizens are less inclined to work in. The argument against immigration is that allowing Latin Americans in steals jobs from U.S. citizens, they contribute unduly to crime statistics or that they take advantage of social services reserved for legal Americans without paying the taxes that keep these programs in service. In this paper, I will present a brief history of Latin American immigration and present arguments both for and against continued movement into the United States. The close of the paper will be reserved for my opinion on what the best course of action would be to curtail the problems facing immigration in the United States. â€Å"The first significant wave of Mexican workers coming into the United States began in the early years of the twentieth century, following the curtailment of Japanese immigration in 1907 and the consequent drying up of cheap Asian labor. The need for Mexican labor increased sharply when the Unites States entered World War I. The Mexican government agreed to export Mexican workers as contract laborers to enable American workers to fight overseas. After the war, an intensifying nativist climate led to restrictive quotas on immigration from Europe and to the creation of the U.S. Border Patrol, aimed at cutting back the flow of Mexicans. But economic demand for unskilled migrant workers continued throughout the Roaring Twenties, encouraging Mexican immigrants to cross the border—legally or not.† This early need for labor, stemming both from a lack of available men due to the war effort and a distrust of Asian immigrants, became the catalyst for Mexican workers to begin migrating into the U.S. The ready work, better wages compared to those in their home country and promise of a better life either in the United States or back in their home countries, led many Latinos to cross the border and begin settling and working in America. The early influx of Latino laborers helped combat the loss of American men to the war effort in Europe. World War I and World War II diverted a great many American males to Europe and the Pacific to serve in the military, which left businesses short on labor. Although women started entering the work force at this time, there still was a dearth of labor to fill all the roles that had opened up with the mass exodus of American males into the military. Following the return of the United States military after the war effort subsided, there was less need for immigrant labor and so a great many of the Latino workers returned to their home countries. The desire for legal immigrant labor to fill necessary position started evolving into its current state, whereby businesses supplant legal workers with illegal workers, thus gaining access to the labor that their businesses require while only paying a fraction of the wages that legal citizens would demand. â€Å"One of the tools conservatives have used very successfully over the past 25 years to drive down wages, bust unions, and increase CEO salaries has been to encourage illegal immigrant labor in the US. Their technique is transparently simple. Conservatives well understand supply and demand. If theres more of something, its price goes down. If it becomes scarce, its price goes up. They also understand that this applies just as readily to labor as it does to houses, cars, soybeans, or oil. While the history of much of the progressive movement in the United States has been to control the supply of labor (mostly through pushing for maximum-hour, right-to-strike, and child-labor laws) to thus be able to bargain decent wages for working people, the history of conservative America has, from its earliest days grounded in slavery and indentured workers from Europe, been to increase the supply of labor and drive down its cost.† The Latino people who immigrated here had motives different from those of the businesses bringing them here; to an immigrant, America was a land of endless opportunities, where they could either settle their families and begin a new life or earn enough money to return to their country of origin and live a comfortable life there.  While some immigrants were no doubt coming to America to accomplish criminal goals, the majority were everyday people looking for a better life for themselves and their families. The problems facing illegal immigrants in the United States today are numerous. There are many who seek nothing more than to legalize their status as American citizens, while others would be happy to simply receive work visas that would legalize their status within America and allow them to work without fear of harassment, arrest or deportation. Among the many problems that immigrants face are the following: The type and quality of education available to these new residents—desperate to learn English—and to their children. Economic issues: the lack of secure jobs that pay an often undocumented population, and their resulting poor or crowded housing. Isolation in immigrant and refugee communities: isolation from services that could help them, as well as the emotional isolation caused by the stress. Prejudice and discrimination that new immigrants and refugees report they face, as well as the cultural differences that may deter them from seeking and receiving services. The language barrier is perhaps the most important barrier facing these immigrants. The inability to speak English in America is a warning sign the person may be an illegal immigrant, it is harder to read signs or directions, many services are staffed by English speakers and therefore may be unable to understand what the Spanish speaker wants and it is harder to apply for jobs if the person is unable to decipher what the application is asking of them. For most Americans, this isn’t an issue facing them, but for an illegal immigrant with limited access to educational opportunities or translators, it is a major hurdle that they may be unable to overcome. The inability to speak English is a major hurdle in areas with robust law enforcement and laws that are in place to detain and deport illegal immigrants. In Arizona, laws are on the books that allow police to â€Å"check the immigration status of anyone pulled over. This could be as simple as an officer walking by a group of Latinos speaking in the native tongue and  asking for papers. If they can’t provide documentation, they could be arrested as illegal aliens, creating an atmosphere where people are afraid to be caught using their own language, but are unable to communicate effectively enough in English to get the help they need to master it. The major problem with this is that people oftentimes complain that immigrants don’t want to learn English, but the ones that do are unable to access the tools or services they need to meet this requirement. The inability to read signs is another enormous hurdle facing immigrants; many signs are in English only and may contain important directions or warnings that people who are unable to speak or read in English won’t be able to understand. Road construction warnings, directions to important buildings like hospitals or hazard warnings due to inclement weather will be beyond the ability of these people to either follow or fathom. If an immigrant is injured while working on a remote job site and is unable to speak English, they won’t be able to call emergency services for a paramedic. If this occurs, the only recourse is for another worker to drive the injured party to a nearby hospital. If the person is severely injured, possibly bleeding heavily and neither person in the vehicle can read the English language directions, valuable minutes may be wasted while they drive aimlessly looking for a hospital that would be easily reached by someone with the ability to read the signs directing them to the hospital’s location. Another important hurdle is that non-English speakers have fewer labor protections than English speakers do. An unscrupulous business owner could take advantage of the fact that these people are unlikely to go to the authorities if they are taken advantage of and then under pay, force them to work in unsafe conditions or work hours that an English speaker would know were illegal and would be able to get the help to put a stop to it. A non-English speaker may be afraid to come forward and risk arrest or deportation and will then simply endure the miserable conditions and continue to work for less than fair pay. â€Å"Immigrants are often identified as a â€Å"vulnerable population†Ã¢â‚¬â€that is, a group at increased risk for poor physical, psychological, and social health  outcomes and inadequate health care.(healthaffairs.org) Vulnerability is shaped by many factors, including political and social marginalization and a lack of socioeconomic and societal resources. Addressing the health care needs of immigrant populations is challenging both because of the heterogeneity of this group and because recent federal and state policies have restricted some immigrants’ access to health care. These policies have exacerbated existing differences in access (for example, legal residents versus undocumented and long-term residents versus recent arrivals). The stigma associated with some forms of immigration status (for example, undocumented versus refugee) can also contribute to vulnerability.† This is a different issue than that of reading signs adequately; the inability to properly speak in English puts immigrants in a dangerous situation where they are oftentimes working in unsafe conditions but are unable to obtain health care in case of an injury. A debilitating injury could not only cost the immigrant their job, but put them at risk of further harm when they can’t get the medical care that would be required to properly nurse them back to health. This puts an enormous strain not only on the families of the injured workers, but on the low cost health care alternatives available in the areas that immigrants live in, as they won’t be able to afford proper care at a hospital and are relegated to seeking recourse at a free clinic or some similar institution. When this occurs, these institutions are unable to keep up with the demands placed on them by their normal clientele and are forced to back log cases resulting in even more harm to the health of all the affected individuals. This spiraling problem could conceivably become so dire that entire areas are denied health care access while the back log is cleared out. The next hurdle facing immigrants is the quality of education available to both themselves and their families. Non-English speakers in areas where their native tongue is not used frequently may be unable to gain access to schools or teachers who could either teach the English or provide education at a level befitting their intelligence instead of teaching them more basic information because it is assumed that the inability to speak English denotes a learning disorder instead of simply being a problem caused by coming from a country where English is not the language spoken most  frequently. â€Å"Much of the participation gap can be explained by just a few economic and socio-demographic factors, the authors find. To some extent, the factors that affect disadvantaged immigrant children resemble those of their similarly disadvantaged native counterparts. Affordability, availability, and access to ECE programs are structural barriers for many immigrant families, as they are for disadvantaged families more generally. Language barriers, bureaucratic complexity, and distrust of government programs, especially among undocumented immigrants, are unique challenges that may prevent some immigrant families from taking advantage of ECE programs, even when their children might qualify for subsidies. Cultural preferences for parental care at home can also be a barrier. Housing is another major issue facing immigrants, especially illegal ones. These people are forced to live in the most destitute areas due to the low paying jobs they take and since they have no formal status as American citizens, will often times crowd into homes too small for the number of people living there, creating dangerous situations such as fire hazards or the spread of disease. These houses may also lack basic amenities, which can lead to sickness in the weaker members of a family or to a lack of hygiene which will further impair the immigrant’s ability to secure work or better housing. â€Å"Like all renters, immigrants have faced an economic squeeze over the past decade, as rents have risen while incomes have remained flat. The median income for households headed by foreign-born New Yorkers is $35,500, significantly less than the median income of native born–headed households. Even as the city has seen high levels of new construction, the number of units that are affordable for low- to middle-income families has decreased precipitously. From 2002 to 2005, the city lost more than 205,000 units affordable to the typical household. The median monthly rent for unsubsidized apartments in the city increased by 8 percent, while the citywide median income fell by 6.3 percent. For unsubsidized low-income renters – a group that includes a disproportionate share of immigrants – the typical share of earnings spent on rent rose from 43 percent to more than half of income, in just three years. The foreclosure crisis is exacerbating the problem, and even drop in real estate prices is providing little relief. Rent declines are concentrated in Manhattan luxury housing, the only part of the market with a high vacancy rate. In the outer boroughs, where most New Yorkers and most immigrants live, widespread foreclosures are leading to the eviction of tenants and homeowners alike. The next major issue is that of isolation in immigrant communities. Many immigrants are very aware of the negative public opinion of illegal immigrants and even if they are here legally, may be afraid they will be viewed in the same light as those who did not arrive in the appropriate manner. This isolation can result in depression, drug use or an inability to access medical and social services that they are in dire need of. An immigrant who feels isolated by public pressure may pull his or her children from public schools, further exacerbating the educational crisis facing many of them and creating another generation of immigrants unable or seemingly unwilling to assimilate into American culture. â€Å"Past research on immigration has conceptualized the adaptation of immigrants to their new cultural and social environment as a multifaceted process involving different patterns and strategies. From a broad perspective, adaptation is a process of change and adjustment to new environmental conditions. Although there is no agreement in research on how to define and measure adaptation while moving from one culture to another, it has been suggested that most migrants go through initial â€Å"culture shock†, which has significant consequences for their wellbeing. The extent and outcomes of this â€Å"culture shock† and following adaptation may depend on many factors, from cultural distance to migration motivation and expectations. Adaptation of immigrants can be defined as the process of â€Å"fitting in† to the society of settlement and functioning successfully in a new environment. Two distinct aspects of intercultural adaptation have been identified on the basis of past research. The first is socio-cultural adaptation, which is based on the culture learning approach and reflects the ability to engage in constructive interaction with a different culture. The other is psychological adjustment, which facilitates the individual’s sense of wellbeing, positive appraisal of  situations and general satisfaction with life.† This as noted is with Russians into New Zealand but American immigrants face the same challenges as does any immigrant anywhere. The final major hurdle facing immigrants is that of prejudiced attitudes by the citizens of the host country. As seen in some parts of America today, there are a number of people with negative attitudes towards all immigrants, legal or illegal. When added to the problems already facing immigrants, this last obstacle can prove almost insurmountable. An immigrant may have the best intentions of assimilating into the host countries society, but find the avenues to do this blocked by people in positions of power who do their utmost to prevent them from making headway, either by creating laws to hamper immigrants from arriving or becoming successful, to denying them basic services and amenities that they need in order to become part of the culture or to take care of their families. â€Å"Were highly dependent on people in our own groups. In fact, one could argue that our highly ultra-social, interdependent form of group living may be the most important human adaptation. People tend to be invested in members of their groups, to have ongoing histories of fair exchanges and reciprocal relations, to treat one another reasonably well, to create and follow a set of agreed-upon norms, and thereby build up trust. Outsiders arent going to have that same built-up investment in us or our group. Because of this, we tend to believe that people who are foreign to us are more likely to pose certain kinds of threats: We believe they may be more interested in taking our resources, more likely to cheat us in exchanges, to violate our norms and values, to take more than their fair share, and the like. These perceptions of threats are linked to negative emotions such as anger and moral disgust that contribute to anti-immigrant prejudices. The solutions to these problems are as varied as the problems themselves. In order to help alleviate the problem of illegal immigration, an easier to utilize and more streamlined policy for legal immigration is a must. A good system would involve fast tracking candidates who possess skills needed in America, while providing a system for normal laborers to get in quickly as well. A way to help new immigrants would be to set up camps where they  could learn English and important facets of American culture and law while waiting for their paperwork to process. The system could be set up to require that these new immigrants show a basic competency in English and maneuvering through American society before they are granted full citizenship. There have been a number of programs and ideas put forth to help immigrants, with such as the Dream Act. â€Å"Over three million students graduate from U.S. high schools every year. Most get the opportunity to test their dreams and live their American story. However, a group of approximately 65,000 youth do not get this opportunity; they are smeared with an inherited title, an illegal immigrant. These youth have lived in the United States for most of their lives and want nothing more than to be recognized for what they are, Americans. The DREAM Act is a bipartisan legislation ‒ pioneered by Sen. Orin Hatch [R-UT] and Sen. Richard Durbin [D-IL] ‒ that can solve this hemorrhaging injustice in our society. Under the rigorous provisions of the DREAM Act, qualifying undocumented youth would be eligible for a 6 year long conditional path to citizenship that requires completion of a college degree or two years of military service.† An example of one policy that aims to help immigrants shows how much added pressure is put on immigrants in order to satisfy the political views of prejudiced voters, â€Å"A bipartisan group of U.S. senators on Tuesday unveiled long-awaited landmark legislation to remove the threat of deportation for millions of illegal immigrants, giving them an opportunity to apply for permanent legal status within 10 years and eventually for U.S. citizenship. Under the proposal, undocumented immigrants who came to America before Dec. 31, 2011 and stayed continuously could apply for provisional legal status as soon as six months after the bill is signed by the president. But beyond that, they would have to wait, perhaps for a decade or more without receiving federal benefits, while the government meets a host of tough conditions for securing U.S. borders and enforcing current immigration law. The bills sponsors four Democrats and four Republicans -felt such conditions and enforcement triggers to be necessary in order to help it succeed where similar measures have failed, mostly because of opposition to what opponents see as amnesty for law-breakers.† This policy at first seems like a great start towards helping immigrants, but the hurdles and the  number of caveats attached make it so difficult for these people to attain that a great many of them, especially those of limited education, may simply continue subsisting the way they have instead of doing all the work required knowing that there would still be a long wait until they were recognized as full citizens. In closing, my opinion is that the Dream Act is the basis that elected officials should use to craft future immigration reform. It offers attainable goals, the timeline is short and if the goals are met, the immigrants will have proven that they are as â€Å"American† as those born here. While the Dream Act only helps children of illegal immigrants, similar provisions could be added into such a law to help the adult members of this community become full citizens. Rather than viewing immigrants as an obstacle that we must overcome, we should instead remember that at one time, all Americans were immigrants and that this country was founded on the ideal that it would provide safety and respite to those in need and those who wanted to become a member of this society. An influx of vibrant people from other cultures only opens the doors to new ideas, new business opportunities and potentially new friends. Bibliography Peter Morton Coan, Toward a Better Life: Americas New Immigrants in Their Own WordsFrom Ellis Island to the Present. Prometheus Books 2011. Stephen Yale-Loehr, Green Card Stories. Umbrage Editions 2011. Common Dreams. Stop Allowing the Wealthy to Treat Undocumented Immigrants Like Slaves https://www.commondreams.org/view/2013/03/13-10 Kathryn Derose. Immigrants And Health Care: Sources Of Vulnerability http://content.healthaffairs.org/content/26/5/1258.full Brad Lander. Confronting the Housing Squeeze: Challenges Facing Immigrant Tenants, and What New York Can Dohttp://prattcenter.net/sites/default/files/publications/Confronting%20the%20Housing%20Squeeze.pdf Randal Archibold. Arizona Enacts Stringent Law on Immigration. http://www.nytimes.com/2010/04/24/us/politics/24immig.html?_r=0 Lake Snell Perry Mermin. Challenges Facing New Immigrants and Refugeeshttp://www.policyarchive.org/handle/10207/bitstreams/21623.pdf Harvard Magazine. Uneasy Neighbors: A Brief History of Mexican-U.S. Migration http://harvardmagazine.com/2007/05/uneasy-neighbors-a-brief-html Dream act FAQS. http://dreamact.info/faq/1#1n5252 Karoly, LA. Early care and education for children in immigrant families http://www.ncbi.nlm.nih.gov/pubmed/21465856 Sophie Bushwick. What Causes Prejudice against Immigrants, and How Can It Be Tamed? http://www.scientificamerican.com/article.cfm?id=what-causes-prejudice-aga Elise Foley. Dream Act To Be Reintroduced In House As Immigration Push Grows http://www.huffingtonpost.com/2013/02/07/dream-act_n_2639187.html

Death Penalty - Catholics and Capital Punishment :: Argumentative Persuasive Topics

Catholics and Capital Punishment Catholic opponents of the death penalty sometimes seem to lose sight of the primary purpose of punishment. The Catechism of the Catholic Church says, "Punishment has the primary aim of redressing the disorder introduced by the offense." If I commit a serious offense against society, I bring about a disorder, and the point of punishment is to reestablish the lost order. If I willingly accept my punishment, "it assumes the value of expiation." And it can protect you from future crimes I might commit. The Catechism thus gives three purposes of punishment: defending public order, protecting people, and moral change in the criminal. Paragraph 2267 reminds us that "the traditional teaching of the church does not exclude recourse to the death penalty" but then adds, "if this is the only possible way of effectively defending human lives against the unjust aggressor." This appears to make a secondary purpose of punishment override the primary. That appearance has led to some fuzzy thinking. The correct meaning must be that the primary aim of punishment can be achieved short of exacting the death penalty. A single means-say, life imprisonment-restores the order lost by the crime, protects society against future crimes of the incarcerated, and gives the prisoner a chance to repent. The paragraph should not be read as making the protection of society trump everything else. Why? Because imprisonment protects society against future possible crimes. But the criminal cannot be punished for what he might do; he is in prison because of what he has already done. If life imprisonment is to serve the primary purpose of punishment, it must, like the death penalty, be primarily justified as sufficiently "redressing the disorder introduced by the offense." Paragraph 2267 is concerned exclusively with a secondary purpose of punishment: protecting society. Unless, as suggested, "protecting society" be taken to comprehend "redressing the disorder." (Paragraph 2266 distinguishes "defending public order" from "protecting people's safety.") One sometimes hears in the clamor to end the death penalty that retribution is no longer the aim of punishment. But if there is no cause for retribution, punishment is unjust: All that would excuse it is the fear that someone might in the future harm us and that solitude might better his soul. Enthusiasm sometimes obscures the fact that the Catechism "does not exclude recourse to the death penalty." However rare such recourse might be, even if it were only once in a millennium, it would have to be justified.

Indian Stock Markets

Current Issues India's capital markets February 14, 2007 Unlocking the door to future growth India’s capital markets have experienced sweeping changes since the beginning of the last decade. Its market infrastructure has advanced while India Special corporate governance has progressed faster than in many other emerging market economies. But in contrast to several developed countries and Asian economies, India’s capital markets are still shallow, implying that further reforms are needed to make India a world-class financial centre. At nearly 40% of GDP, the size of India’s government bond segment is comparable to many other emerging market economies. Its corporate bond market, however, remains small and is dwarfed by those of the United States, South Korea and Malaysia. India boasts a dynamic equity market. The sharp rise in India’s stock markets since 2003 reflects its improving macroeconomic fundamentals. However, the large size of insider holdings and the small presence of institutional investors belie these impressive figures. Innovative products such as securitised debt and fund products based on alternative assets are starting to break ground. But an enabling environment is not yet in place and there remains an overriding need to increase domestic investors’ knowledge regarding the merits and risks of capital market investing. A vibrant, well-developed capital market has been shown to facilitate investment and economic growth. We believe that persistent reforms in the sector can support India’s already impressive growth trend in the coming years. Financial deepening beckons in India Stock and bond market capitalisation (end-2005), % of GDP Author Jennifer Asuncion-Mund +49 69 910-31714 jennifer. [email  protected] com Editor Maria L. Lanzeni Technical Assistant Bettina Giesel Deutsche Bank Research Frankfurt am Main Germany Internet: www. dbresearch. com E-mail: marketing. [email  protected] com Fax: +49 69 910-31877 Managing Director Norbert Walter China Germany Brazil Argentina Mexico Indonesia 40 60 Thailand India UK 50 0 180 Korea Japan USA Bond market 150 100 200 Malaysia 0 20 80 100 Stock market 120 140 160 Sources: Federation of World Exchanges, BIS, IMF, DB Research Current Issues Introduction India's stock markets: Scaling new highs BSE index 16000 14000 12000 10000 8000 6000 4000 2000 0 90 92 94 96 98 00 02 04 06 Source: Bloomberg Improving macroeconomic fundamentals, a sizeable skilled labour force and greater integration with the world economy have increased India’s global competitiveness, placing the country on the radar screens of investors the world over. The global ratings agencies Moody’s and Fitch have awarded India investment grade ratings, indicating comparatively low sovereign risks. These positive dynamics have led to a sustained surge in India’s equity markets since 2003 (see chart 1), attracting sizeable capital from foreign investors. Net cumulative portfolio flows from 2003-2006 (bonds and equities) amounted to USD 35 bn. Moreover, India’s stock market has outperformed world indices in recent years. And, despite its increasing correlation with world markets in recent years (see chart 2), India still offers diversification in global portfolios. The bond market is dominated by government bonds. Government bond issuances, resulting from persistently high fiscal deficits, as well as specific regulatory requirements, have underpinned the supply and demand conditions in India’s debt capital markets. Nearly 90% of total domestic bonds outstanding are government issuances (i. e. Treasury bills, notes and bonds), squeezing out corporate and other marketable debt securities (see chart 3). Initiatives to lift the corporate bond market from its nascent stages have been slow to progress, leaving companies unable to realise their optimum capital structure as a result. And unlike the derivative instruments that are available for equities, those for fixed income instruments (e. g. options in interest rates) in the organised exchanges have failed to take off, limiting the price discovery in the secondary markets. We believe that India’s economic transformation is irreversible. Against this backdrop, greater efficiency in financial intermediation is required to support investment and growth, but this will require structural changes in India’s public finances and the dismantling of unwieldy regulations. The paper follows an analysis of supply (bonds, equities and derivatives) and demand conditions (household and institutional investors) in India’s capital markets. Some stylised facts regarding India’s capital market infrastructure and corporate governance are first presented, followed by an analysis of its fixed income, equity and derivatives markets. Later, the paper discusses the classes of investors in India’s markets and the constraints they face in optimising the risk/return objectives of their portfolios. Finally, some brief comments regarding the link between economic growth and capital markets reform conclude the paper. 1 Stock market still offer diversification benefits MSCI India and World Indices (USD) rolling correlation 0. 7 0. 6 0. 5 0. 4 0. 3 0. 2 0. 1 0. 0 96 98 00 02 04 06 2 Source: Datastream Government issuance leads the local bond market Domestic bonds outstanding, % of total* Corporate bonds 3% Others 4% PSU bonds** 6% State loans 15% I. Capital markets development supported by steady infrastructure reforms Government bonds 68% 3 Treasury bills 4% *As of March 2006. ** PSU = Public Sector Undertakings. Source: National Stock Exchange India’s financial market began its transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the elimination of interest rate controls, reductions in reserve and 1 liquidity requirements and an overhaul in priority sector lending . Persistent efforts by the Reserve Bank of India (RBI) to put in place 1 Asian Development Bank Institute (2003). February 14, 2007 2 India's capital markets effective supervision and prudential norms since then have lifted the country closer to global standards. India embarked upon comprehensive financial reforms over a decade ago†¦ Around the same time, India’s capital markets also began to stage extensive changes. The Securities and Exchange Board of India (SEBI) was established in 1992 with a mandate to protect investors and usher improvements into the microstructure of capital markets, while the repeal of the Controller of Capital Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues. India’s financial markets also began to embrace technology. Competition in the markets increased with the establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume of transactions and to the emergence of new important instruments in financial intermediation. A. Innovations have strengthened market infrastructure †¦ heralding improvements in its market infrastructure Market infrastructure has strengthened markedly heralded by steady reforms. The government bond and equity markets have moved to 2 T+1 and T+2 rolling settlement cycles in recent years , which significantly compressed the transfer of cash and securities to the relevant counterparties, thereby reducing settlement risks. The seamless move toward shorter settlement periods has been enabled by a number of innovations. The introduction of electronic transfer of securities brought down settlement costs markedly and ushered in greater transparency, while â€Å"dematerialisation† instituted a paper-free securities market. Together, these mechanisms eliminated forgery of share certificates. Straight-through processing automated the complete workflow (i. e. front, middle and back office and general ledger) involved in the financial transaction, thus doing away with multiple data re-entry and avoiding delays and errors. On the initiative of the Reserve Bank of India and the cooperation of public and private institutions, the Clearing Corporation of India Limited (CCIL) was established in 2001 to facilitate the clearing of trades and transactions in the foreign exchange and fixed income markets, catalysed by the extensive use of information technology. Stronger legal framework needed* Government effectiveness Regulatory quality B. Good corporate governance, but overall legal framework needs improving Continuing efforts by the SEBI to upgrade the corporate governance framework have positioned India at an above-average level against other emerging market economies, according to the Institute of International Finance (IIF), the global association of financial 3 institutions . Since March 2006, listed companies have been required to submit quarterly compliance reports to the SEBI, facilitating the valuation of companies and bringing it in line with the Sarbanes-Oxley Act. Notwithstanding, enforcement remains a challenge due to a still limited number of adequately trained staff to implement the rules. Nor are companies subject to substantial fines or legal sanctions, which reduce their incentives to comply. In turn, this reflects the ongoing gaps in India’s legal system, and somewhat undermines the steps to promote India’s capital markets further. Although India does have a functional legal system, the country’s law enforcement still lags behind the more advanced economies of Hong Kong and Singapore according to the World Bank (see chart 4). This implies that efforts to raise corporate governance need to be accompanied by a stronger 2 3 Rule of law Control of corruption 0 HKG 2 IND 4 SGP 6 * The 4 governance indicators are measured in units ranging from -2. 5 to 2. 5, with higher values corresponding to better governance outcomes. Data have been rescaled to 0-5. Source: World Bank Governance Index 2005 4 National Stock Exchange Fact Book (2006). Institute of International Finance (2006). 3 February 14, 2007 Current Issues Private corporate bonds outweighed by PSU bonds Distribution of issuance*, % 100 80 60 40 20 0 2004 2005 2006 Private corporate bonds PSU bonds *As of end-March of the year. Source: National Stock Exchange legal framework to bring greater stability in its capital markets and foster investor confidence. II. A sizeable but largely skewed capital market For over a century, India’s capital markets, which consist primarily of debt and equity markets, have increasingly played a significant role in mobilising funds to meet public and private entities’ financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. 5 In total, India’s debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an impressive stride, coming from just 75% in 1995, suggesting issuers’ growing confidence in marketbased financing. However, the size of the country’s capital markets relative to the United States’, Malaysia’s and South Korea’s remains low, implying a strong catch-up process for India. A wide range of instruments for investors Market segment Issuer Government Securities Central Government Instruments Zero Coupon Bonds, Coupon Bearing Bonds, Treasury Bills, STRIPS Coupon Bearing Bonds Govt. Guaranteed Bonds, Debentures A. Debt markets shaped by the public sector India’s debt markets are divided into two segments. The government bond segment is the larger and more active of the two, with issuers comprising the central government – accounting for 90% of the total – and state governments. The Reserve Bank of India (RBI) has maintained its role as the government’s debt manager and regulator of government-issued papers. The corporate bond market represents the other segment, with Public Sector Undertakings (PSU), corporates, financial institutions and banks being the primary players. PSU bonds by far outweigh the size of private corporate bonds (see chart 5), reflecting a number of factors, foremost of which are the lists of regulatory requirements for private issues. Regulatory oversight of the segment falls under the purview of the Securities and Exchange Board of India (SEBI). Each issuer has a range of instruments available in the market (see chart 6). Since institutional investors, especially banks, have remained the primary participants in fixed income securities, India’s bond markets have predominantly been wholesale. Government bond issuances rule the roost State Governments Public Sector Bonds Government Agencies/ Statutory Bodies Public Sector Units Private Sector Bonds Corporates PSU Bonds, Debentures, Commercial Paper Debentures, Bonds, Commercial Paper, Floating Rate Bonds, Zero Coupon Bonds, Inter-Corporate Deposits Certificates of Deposits, Debentures, Bonds Banks Financial Certificates of Institutions Deposits, Bonds Source: Bombay Stock Exchange The government bond segment is the oldest and largest component of the debt market. Its size has taken off exponentially over the past decades, with the total stock of debt outstanding at roughly USD 280 4 bn as of June 2006 , increasing three and a half times since 1995. This translates to roughly 35% of GDP, in line with several large Asian economies and is not significantly lower than that of the United States (see chart 7). With growing demand from institutional investors such as insurance companies and pension funds, bonds with maturity extending to 30 years are now available, the longest in non-Japan Asia (see chart 8). 4 India’s fiscal year runs from April of the current year through March of the following year. Data are based on the BIS (2006). February 14, 2007 4 India's capital markets A sizeable government bond market % of GDP 50 2001 2005 40 30 20 10 0 Local tenors stretching out Government bond yield curves, % 12 10 8 6 4 2 0 3M 6M 1Y 2Y 3Y 5Y 10Y 15Y 20Y 30Y Indi a Malaysia Thailand Indonesia Philippines Japan South Korea Source: Bloomberg Malaysia South Korea Thailand India China USA 8 Source: BIS 7 High fiscal deficits have encouraged large public borrowings Total public deficit, % of GDP 12 10 8 6 4 2 0 2000 2002 2004 2006E The contours of the government bond market began taking shape around 1992 as a result of the government’s broad-based attempts to 5 reform the financial sector. Advances in the segment benefited from a host of reforms, such as the move toward an auction-based sale of government securities, appointment of Primary Dealers, acting as market makers, and the implementation of delivery-versus-payment (DVP), mitigating the risks associated with trading and settlement. In 1997, the establishment of the Ways and Means Committee was a landmark event as it virtually ended the automatic monetisation of government deficits. In the same year, foreign institutions were permitted to invest in government-issued securities, thus broadening the institutional investor base. Zero-coupon bonds and index bonds represent novel products in the marketplace, but have so far received only tepid response from participants. Why have government bonds dominated? Sources: Reserve Bank of India, DB Research 9 India's public debt high against its peers Average of total public debt, % GDP, 2001-2005 100 80 60 40 20 0 BBB median BB median India Public sector fiscal dynamics and government regulations largely dictate the current state of affairs. That the size of the government bond market is large is not surprising due to persistently high fiscal 6 deficits and the resulting high public sector borrowing (see chart 9). Although the total public deficit has been declining since 2003, government debt has remained high, averaging 85% of GDP over the past 5 years. This places India’s public debt considerably higher than similarly rated countries (see chart 10). Banking regulations compound the problems. Banks are mandated to invest 25% of their net demand and time liabilities (i. e. eposits) in government bonds or other approved government securities, the socalled statutory liquidity reserve (SLR). The SLR has stayed at this level since it was reduced in 1991 from 38%. But in view of the (perceived) risk-free nature of these assets – requiring less provisioning in their books – banks tend to hold an even greater percentage of government bonds in their portfolios than prescribed by 7 the SLR . Large holdings o f government bonds expose banks to 8 interest rate volatility (thus affecting banks’ income) and could impact 5 Source: Standard and Poor's 10 6 7 8 The Development of Bond market in India in http://www. iimcal. ac. in/community/FinClub/dhan/dhan1/art15-bond. pdf Rawkins, Paul (2006). The IMF put the figure at roughly 41% in 2005, well in excess of the 25% SLR (IMF Article IV report, 2005). In 2004, the Reserve Bank of India allowed for a one-off reclassification of government securities to held-to-maturity from trading or available-for-sale securities in order to mitigate the losses from rising interest rates. 5 February 14, 2007 Current Issues Credit growth is surging†¦ % yoy 40 35 30 25 20 15 10 5 0 90 92 94 96 98 00 02 04 their capital adequacy in an environment of sharply increasing interest rates. This alone calls for greater diversification of income sources (such as fee-based income) aligned with more prudent credit risk assessment. Despite the super charge growth in bank credit over the past two years (see chart 11), India’s credit-to-GDP ratio remains low in contrast to other countries in Asia, implying still low penetration of bank intermediation in the country (see chart 12). Similar restrictive regulations to the SLR exist for the insurance sector and the pension fund system, thereby preventing a large portion of their capital from being channelled to other higher-yielding investment assets, which would enhance the risk/return profile of their portfolios. Insurance companies (carrying out the business of general insurance) are mandated by the Insurance Regulatory and Development Authority (IRDA), the regulatory body for the insurance industry, to invest at least 25% of their total assets in government securities and 9 state government securities . Pension funds face slightly higher requirements, although in both cases, investment in government paper may well be above the statutory level to preserve the safety of their assets. Corporate bond market: A huge potential awaits In contrast to the government bond market, the size of the corporate bond market (i. e. corporate issuers plus financial institutions) remains 10 very shallow (see chart 13), amounting to just USD 16. 8 bn , or less than 2% of GDP at the end of June 2006. A well-developed corporate bond market would give companies greater flexibility to define their optimum capital structure. By the same token, investors would benefit from having a wider range of asset classes to diversify their fixed income investments. Within India’s corporate bond market, state-owned Public Sector Undertakings (PSUs) have persistently outstripped private corporate issuances. PSUs and private companies can raise debt capital either by private placement or public issue, with the former being the preferred method by far. The growth of private placement of debt has shown a marked increase over the past decade, rising over four-fold in fiscal year 2004/2005 to roughly USD 12. 6 bn from USD 3 bn in fiscal year 1995/1996 (see chart 14). The preference for the private placement route arises from less onerous regulatory requirements, such as the type of disclosures and registration requisites, than those 11 for public issues . Also, the considerably higher costs associated with public issuance have deterred corporates from accessing funds through this route, in addition to the fact that private debt placements can be customised in accordance with individual issuers’ needs. Corporates are not mandated to obtain and disclose credit ratings from an approved credit rating agency, although companies themselves have increasingly sought to do so in recent years. In fiscal year 2004/2005, 93% of companies that raised bonds through 12 private placements obtained credit ratings . There is a preference to raise funds with maturities between three to five years, which suggests that companies remain cautious of borrowing over the medium-term segment, and also reflects investors’ still limited demand for longer tenors. Trading, clearing and settlement practices in the corporate bond market are less developed than in the government bond segment. 9 10 11 12 Source: Reserve Bank of India 11 but financial intermediation remains low Bank credit, % of GDP 2002 2003 2004 160 140 120 100 80 60 40 20 0 China Emerging Asia Western Europe India Source: IMF 12 Corporate bond market has yet to develop % of GDP 2001 2005 1. 6 0. 7 45 40 35 30 25 20 15 10 5 0 Malaysia South Korea Thailand India China USA Source: BIS 13 The Insurance Regulatory and Development Authority (2001). Bank for International Settlements (September 2006). National Stock Exchange (20 05) National Stock Exchange (2005). February 14, 2007 6 India's capital markets Private placement towers over public issuance Bond market, USD bn 16 14 12 10 8 6 4 2 0 1995 1997 1999 2001 2003 Deals are usually conducted over the counter and are struck between counterparties. In cases wherein brokers intermediate (often by telephone), they are required to report the transaction to the exchange, which facilitates post-trade information. Corporate debt can also be traded via an electronic order book system, but this has largely been unpopular in the absence of general retail interest in 13 such securities . Moreover, the more advanced clearing and settlement infrastructure for government bonds allow repo transactions for this segment, a facility that is not accessible for corporate bonds. The large size of the government bond segment in comparison with its corporate equivalent explains its large trading activity in the secondary market, accounting for over 70% of turnover (see chart 15). By contrast, turnover in the corporate segment amounts to just 3. 6%, largely because of the limited supply owing to the preference for private placements mentioned above. In addition, large domestic institutional investors, such s pension funds and the insurance sector, are still restricted from allocating large portions of their investible funds in the corporate bond segment. Not only does this constrain the segment’s development, but it also limits investors’ ability to enhance their returns by diversifying their fixed income instruments investments. Nonetheless, the potential for the s egment to pick up is promising, judging by large corporate debt being raised in the international capital markets. And the propensities to borrow are expected to grow further, arising from companies’ reassessment of their capitalisation. Nearly 50% of their financing comes from reinvested capital, while the rest arise from external sources either by raising equity or from bank 14 and other financial institution borrowings. Shareholders’ calls for higher dividend payment and the quest to bring corporate cost of capital to optimum levels will support a rise in capital market financing in the future. At the same time, the pension fund system is moving toward defined contribution mechanism which should provide impetus to the demand for corporate bonds. Corporates seize borrowing opportunities abroad Public issues Private placements 14 Source: National Stock Exchange Government bonds remains most actively traded Turnover, % (March 2006) 3. 6 1. 6 22. 1 72. 7 Govt sec Corp bonds T-bills Others Source: National Stock Exchange 15 Indian corporates have gone on a borrowing spree abroad†¦ Corp. debt outstanding, USD bn* 12 10 8 6 4 2 0 2001 2002 2003 India 2004 2005 Malaysia China A more aggressive trend in overseas borrowing by Indian corporates has recently developed (see chart 16), fuelled by fewer listing requirements, lower cost of funding and better liquidity in the secondary markets. The trend also stands in contrast to the sovereign’s absence in the international capital markets, reflecting the government’s conservative approach to external debt management as a result of the current account crisis in 1991/1992. At the end of 2005, the total amount of bonds outstanding raised by 15 corporates abroad amounted to USD 6. 7 bn , over two and a half times its size in 2001. This represents 60% of the value of corporate issuance in local markets. To put this in perspective, if this amount of issuance had been made in the domestic capital markets, the size of India’s corporate debt market would be 2. % of GDP instead of just 1. 5% of GDP. Indian companies continued to exert their presence in the international bond markets in 2006, outpacing their Asian counterparts (see chart 17). This strong appetite coincided with the still comparatively lower international interest rates (e. g. Ranbaxy’s USD 400 m 5-year convertible bond issue fetched 5% ve rsus 7. 5% for a 13 14 15 *As of December of each year. Source: BIS 16 Bank for International Settlements (2005). Handbook of Statistics (2006), Securities and Exchange Board of India. Excluding financial institutions. 7 February 14, 2007 Current Issues 6 †¦ and there's no retreat in 2006 USD bn 3 2 1 0 -1 Q3/05 China Q4/05 Q1/06 India Q2/06 Malaysia Source: BIS similar tenor in the domestic market) . It also coincided with the better valuation by foreign investors of Indian companies, indicative of their improving global competitiveness. Structured finance offers immense potential Securitisation is an attractive growth segment in India’s debt markets. The market is still in its nascent stages, where current activities primarily occur between banks, non-bank financial institutions and asset reconstruction companies through private placements. Paving the way for a secondary market is the implementation of the proposed changes to the Securities Contracts Regulation Act, which would 17 reclassify securitised debt as true marketable securities . Nevertheless, securitisation has developed robustly in recent years. Asset-backed securities (ABS) are the predominant asset class in India’s securitised segment. This should not come as a surprise given the large component of retail loans in banks’ and non-bank financial institutions’ balance sheets. The ABS market has risen exponentially since 2002, in tune with the sharp pick up in credit growth since then (see chart 18). In 2005, India’s ABS market volume was roughly USD 5 bn, making it the fourth-largest in Asia-Pacific (see chart 19). Mortgage-backed securities (MBS) volumes are just a small fraction of the ABS market. Growth so far has been slack, explained by the absence of a secondary market and the prepayment and interest rate 18 risks arising from prepayment/repricing of the underlying loans . But the growth of commercial bank credit for housing, averaging approximately 90% since 2002, suggests that mortgage-backed securities is a segment that will take off, so long as market infrastructure and regulatory provisions are firmly grounded. Other securitised assets backed by corporate loans, receivables and toll revenues have sprung recently, indicating the promising potential of the segment. As the government embarks upon modernising its infrastructure, the need to develop the structured finance segment will become crucial. Collateralised mortgage backed securities (CMBS), collateralised loan obligations (CLO) and collateralised debt obligations (CDO), which are actively traded in the United States, are innovations awaiting the Indian market in line with a maturing economy. Permitting foreign investors in the market will play a significant role in pricing and transparency. But for now, incomplete legislative and market norms may not allow the country to fully exploit the potential of securitisation activities. 17 Securitisation is picking up†¦ USD bn Volumes in ABS Volumes in MBS 5. 0 6 5 4 3 1. 8 0. 8 0. 3 0. 0 0. 3 2003 0. 7 0. 7 2 1 0 2002 2004 2005 Source: BIS 18 †¦ with India's ABS issuance a decent fourth place in Asia USD bn Korea Japan India Australia 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 Source: BIS B. Vibrant equity markets The development of India’s equity capital markets has taken a more progressive trajectory than the bond market, largely reflecting the government’s laissez faire approach in the segment. At 90% of 19 GDP , its size is comparable to that of other emerging countries, although is still small relative to many developed markets (see chart 20). 19 16 17 18 19 Hindu Business Line (2006). Kothari, Vinod (2006) and Bank for International Settlements (2005). Bank for International Settlements (2005). Based on the capitalisation of the Bombay Stock Exchange as of December 2006. February 14, 2007 8 India's capital markets India's equity market comparable to other emerging markets Local market capitalisation, % of GDP (2005) 200 150 100 50 0 Mexico Malaysia Brazil India Thailand Korea EU Indonesia Japan China USA Source: IMF 20 Indian equity markets have been volatile Standard deviation of rolling two-year weekly returns, index in USD 6 5 4 3 2 1 0 96 98 00 02 04 06 21 MSCI India MSCI World Source: Datastream Of India’s 23 stock exchanges, equity trading is most active in the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Since the NSE’s inception in 1994, it has caught up with the BSE in terms of capitalisation but exceeded it in turnover. The BSE boasts of over 4,000 listed companies, surpassing stock exchanges in the US. This explains its slightly higher market capitalisation over the NSE, although its lower turnover implies that inefficiencies remain due to the high proportion of untraded companies. Its share of total equity turnover is just 33% compared to 66% of its rival, the NSE. The increase in the limit for foreign direct investment in the stock exchanges to 49% announced early this year is expected to lend more dynamism to the equity capital markets. The investment limit for a single investor was set at 5%. It did not take long after the new limit was announced that the New York Stock Exchange (NYSE), Goldman Sachs, General Atlantic and Softbank Asian Infrastructure Fund all acquired a 5% stake in the National Stock Exchange (NSE). Increased foreign presence is expected to help the NSE to inch forward to the global markets, generate a wider customer and investor base and offer more innovative products. The Bombay Stock Exchange is also courting strategic investors. If it succeeds, this should help speed up the process of consolidating the thousands of inactive listed companies n the board. Moreover, the move will enhance its competitive strength against the NSE, which has diminished over the past decade. Higher volatility, improving performance Benchmarking the risk/return characteristics of India’s equity markets against the world average shows that India’s stock market has 20 historically been more volatile (see chart 21), while its returns have, until recently, underper formed. This should not come as a surprise as the past decade witnessed several political and economic uncertainties, undermining business and investor confidence. Only from 2006 has India’s stock market begun to outperform the world’s index as momentum to liberalise the economy gathered pace and investors began to take notice (see chart 22). Reflecting the recent sharp run-up in equity prices, India’s stock markets today rank among the most expensive in the world (see chart 23), raising concerns over a correction, especially if earnings disappoint. However, sustained economic growth combined with continued market-friendly capital market reforms should prove to be supportive factors for superior returns in the medium run. Indian equities returns: catching up MSCI total return index, 1994=100 300 250 200 150 100 50 0 94 96 98 00 02 04 06 MSCI India MSCI World Source: Datastream 22 20 Since the world index is a composite of indices and therefore, by nature, more diversified, it is expected to exhibit less volatility than the country index. 9 February 14, 2007 Current Issues Are India's equity prices stretched? Price/earnings ratio, times 30 25 20 15 10 5 0 96 98 00 02 04 06 In terms of sectoral composition in benchmark indices, India’s stock market is broad-based, putting it roughly in line with the world index (see chart 24). The higher weight of the IT sector today reflects the country’s increasing turn toward a knowledge-based economy. But this may change, with consumer discretionary and consumer staples projected to get a larger share of the pie in tandem with rising incomes and as household preferences become more discerning. The shares of financials and healthcare sectors are also expected to increase markedly as industry consolidation picks up and the door to foreign direct investment is widened. Foreign investors seize local market opportunities Reflecting India’s improving macroeconomic fundamentals, increasing corporate profitability and competitiveness, and greater integration with the world economy, foreign institutional investors’ (FIIs) participation grew steadily over the past 3 years (see chart 25). True, FII invest in local bonds and equity, but their interest has largely been on the latter. The inflow of portfolio capital continues to test new highs and in recent years has outpaced the inflow of foreign direct investment (FDI). India’s accounting standards, although still not in full convergence with international practices, combined with the quarterly reporting frequency mandated by the SEBI on listed companies, offer guidance in corporate valuation. Greater inflows are still to be expected, arising from international investors’ quest for higher returns and improved portfolio diversification, buttressed by ongoing structural changes in India’s economy and its financial markets. Sustained inflow of capital will not only bring greater liquidity in the market, but foreign presence will encourage further market transparency. Overseas listing inching up Domestic companies, both large- and small-cap, have been allowed to list abroad by way of American Depository Receipts and Global Depository Receipts (ADR, GDR) since 1992. Owing to global and local market conditions (e. g. global liquidity, stock market crashes, economic and financial crises), the amount raised through the ADR route since its inception has been quite volatile. Only in recent years have issuances picked up steadily, with the amount raised in fiscal year 2005/2006 exceeding USD 2. 5 bn, a level not seen in over 10 21 years (see chart 26). As one of the measures to allow greater capital account convertibility, the RBI has allowed two-way fungibility for Indian ADRs/GDRs. This allows holders of the instruments to cancel them with the depository and sell the underlying shares in the market. The company can then issue ADRs anew to the extent of the shares converted into local shares. This was not the case in the last decade, which limited companies’ ability to access capital abroad. Further room for improvement Impressive though the developments may be, India’s stock markets still have some room for improvement. For one, the shareholder pattern needs to be broadened, as ownership is concentrated in the 22 promoters and company insiders show an increasing presence. This implies that minority shareholders’ interest is minimal, which needs to be increased for the sake of an improved corporate governance. 21 MSCI India, USD MSCI World, USD MSCI India average for the period Source: Datastream 23 India's equity market composition is broad-based % 100% 80% 60% 40% 20% 0% MSCI India MSCI World Utilities Telecommunication services Materials IT Industrials Healthcare Financials Energy Consumer staples Consumer discretionary Source: Datastream 4 Foreign investors flock to India's capital markets 15 10 5 0 01 02 03 04 05 06E 1200 800 400 0 Foreign direct investment, USD bn (left) Portfolio investment, USD bn (left) Net new number of FIIs (right) Sources: Reserve Bank of India, Deutsche Bank Research 25 22 Four of the top 25 ADR listings as of December 2005 are Infosys Technology (USD 884 m), ICIC I Bank Ltd (USD 466 m), Satyam Computer Services Ltd (USD 323 m) and HDFC Bank Ltd (USD 300 m). Data are from Citigroup Corporation (http://wwss. citissb. com/adr/www/adr_info/YE2005_DR. pdf). Promoters include family members, relatives and close associates. February 14, 2007 10 India's capital markets ADR issuance makes a strong comeback USD bn 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 1992 1994 1996 1998 2000 2002 2004 The presence of institutional investors in the equity market is also low, resulting from the restrictive investment guidelines set by the government for the insurance industry, banks and pension funds. Of note, while only 18% of the listed companies in the NSE are owned by retail investors, they account for an estimated 85% of the trading 23 volume, according to a recent paper by McKinsey . This suggests that retail investors tend to speculate in the stock market rather than follow a strategy of pursuing long-term benefits. A resumption in privatisation is also key to further developing India’s equity markets. Since FY 2003/2004, privatisation activities have dwindled, driven in part by the lack of political consensus to keep it on track (see chart 27). The sluggish process prevents publicly owned companies from accessing more efficient sources of funding. It also interferes with their movement toward market-disciplined processes and better corporate governance. Source: Securities and Exchange Board India 26 C. Financial derivatives march ahead While some form of financial derivatives trading in India dates back to the 1870s, exchange traded derivative instruments started only in 2000. Then, stock index futures, with the Sensex 30 and the S CNX Nifty indices as the underlying, began trading at the BSE and NSE. Since their inception, the basket of instruments has expanded and now features individual stock futures, and options for stock index and individual stocks. Among the four asset classes, single-stock futures have the lion’s share, accounting for nearly 60% of the turnover in the NSE’s derivatives segment (see chart 28). In its relatively short life span, single-stock futures are outperforming those in other global derivatives market (see chart 29). The security largely owes its success to the timing of its introduction: it came into stream shortly after â€Å"badla†, a futures-like practice which permitted traders to carry forward sizeable net positions until the next settlement period, was 24 banned. The key difference with badla is that a clearing corporation owned by the NSE guarantees the futures transaction, thereby reducing settlement risks. The derivative instruments traded in the exchanges reflect many of the features of the underlying instruments. First, as with the wholesale debt and equities segments, the NSE has steadily outpaced the BSE in terms of trading in the derivatives segment over the years. The NSE thus reflects the market’s overall activity and sentiment. 100% 80% 60% 40% 20% 0% 2001 2002 2003 2004 2005 Index futures Index options Stock futures Stock options No clear signs of commitment to privatisation INR bn 20 Privatisation proceeds Average, 1991-2005 15 10 5 0 91 93 95 97 99 01 03 05 Sources: Department of Disinvestment, Ministry of Finance 27 Stock futures most popular derivatives segment Exchange-traded derivatives, % total turnover Second, equity derivatives have developed more rapidly than their fixed income counterparts. Exchange-traded derivatives for interest rates failed to take off when introduced by the NSE in 2003, largely 25 reflecting a flawed contract design. Interest rate derivatives are primarily traded over-the-counter (OTC), and although any domestic money or debt market rate may be used as a benchmark rate, the Mumbai Interbank Offered Rate (MIBOR) and Mumbai Interbank Forward Offered Rate (MIFOR) are those that are widely used. Interest rate swaps and forward rate agreements are instruments available for managing interest rate risks, although the former is by far the preferred choice. The overnight interest swap (OIS) is estimated to trade between USD 500 million and USD 1 billion per 26 day. A survey by FitchRatings of India’s derivatives market in 2004 23 24 25 26 Source: National Stock Exchange 28 Farrell, Diana et al. (2006). Gorham, Michael et al. (2005). FitchRatings (2004). FitchRatings (interview). 11 February 14, 2007 Current Issues Single-stock futures: India is world leader World ranking in terms of volumes traded 2005 National Stock Exchange Johannesburg Stock Exchange BME Spanish Exchanges Euronext Liffe Borsa Italiana OMX Athens Stock Exchange Budapest Stock Exchange Australian Stock Exchange Warsaw Stock Exchange 1 2 3 4 5 6 7 8 9 10 2004 1 4 3 2 6 5 7 8 9 10 estimated that trading volumes at the end of the year amounted to roughly INR 30 bn, a three-fold increase from January 2004. This is expected to have picked up even further since then, spurred by sustained uncertainty over the interest rate outlook, leading market participants to hedge their exposures. Tenors up to 5 years are the most liquid in the OIS market despite the fact that the yield curve stretches out to 30 years. Fitch attributed this to the absence of counterparty lines for longer maturities and partly by the lack of risk management tools for interest rate exposures longer than 5 years. There are a number of factors, though, which mitigate the risks in OTC derivatives for interest rates. One is that the 27 majority of counterparties have ratings that are investment-grade. Another is that India as accepted International Swaps and Derivatives Association (ISDA) documentation before striking any agreement with counterparties. However, combined with banks’ and other institutional investors’ large exposures to government bonds, and the prospects of a deepening bond market in general, the need to develop exchange-traded futures and options for interest rates is evident. This will significantly reduce risks inherent in the OTC markets through centralized settleme nt, enhanced risk management and multilateral netting. Source: World Federation of Exchanges 9 Household sector the largest saver in the economy % of total savings 120 100 80 60 40 20 0 -20 2000 2001 2002 2003 2004 Households Public sector Private corporates Source: Reserve Bank of India III. Right mix of investors, but participation is still low A vibrant secondary market is characterised by the active participation of retail and institutional investors, underpinned by their longterm investment goals, with adjustments made in accordance with their short-term liquidity needs and in response to the business cycle. With a population of over 1 billion, India offers a large pool of potential investors. Indian households are by far the largest saver in the economy, constituting nearly 80% of the economy’s aggregate saving (see chart 30). Insurance companies, pension funds, mutual funds and foreign institutional investors (FIIs) form India’s institutional investor base. Combined, their assets account for about 25% of GDP (see chart 31). This represents a significant increase compared to the mid-1990s, prior to the opening up of many of the sectors, such as the insurance industry, to competition. But, to put it in perspective, the combined size of the Indian institutional investors sector amounts to less than half of US mutual fund assets alone. By and large, Indian investors tend to be conservative in their investment decisions, with a general preference for safe returns and capital preservation. As for large domestic institutional investors such as pension funds and insurance companies, their investment style has largely been the result of regulation. 30 Households are ultraconservative in their investment decisions Composition of household financial savings, % (average, 2000-2005) 9. 17. 2 12. 8 42. 0 12. 5 2. 4 Currency Deposits Shares and debentures Government securities Small savings Insurance funds Provident and pension funds Sources: Securities and Exchange Board of India, Reserve Bank of India A. Indian household investments: low risk, low return 3. 9 The lion’s share of households’ total financial savings, roughly 50%, is placed in bank deposit account s (see chart 31). The rest of the pie is 28 spread over small savings accounts , at just over 10%, and a combined 25% in insurance and pension funds. Because of these institutions’ conservative approach to investing, they appeal very strongly to households. 27 31 28 FitchRatings (2004). Small savings accounts are direct claims against the government. February 14, 2007 12 India's capital markets Over the past 5 years, households had a mere 5% of their savings invested in the stock market on average. Granted, the general aversion to riskier instruments such as equities is not only a product of the public’s preference for safe returns. India’s equity markets have experienced several candals in the past, resulting occasionally in substantial capital losses to many investors. This has essentially discouraged a considerable number of them to return to the stock markets, although in the past two years confidence has gradually regained some ground. How many households are investing in the capital markets? A joint survey by the Securities and Exchange Board of India and National Council for Applied Economics Research ( SEBI-NCAER) in March 2003 estimated that only 13 million households out of the total 177 million surveyed have investments in the capital markets. This is equivalent to a mere 7% of total Indian households. The robust economic expansion since the survey and the resulting increase in per capita GDP (see chart 32) may have widened the household investor base, but possibly not enough to considerably increase market volumes. A key ingredient to reduce households’ risk aversion is improving their understanding of long-term investment, particularly in the equity market. Regarding bonds, there is a concerted effort among the RBI and SEBI, as well as the BSE and NSE, to raise retail investors’ knowledge about the mechanics and risk/return tradeoffs of debt securities. However, the thin volumes can be expected to persist so 29 long as the government continues to provide savings schemes , which reduce incentives to invest in fixed-income instruments. India's GDP per capita steadily rising USD 900 800 700 600 500 400 300 200 100 0 00 01 02 03 04 05E 06F Sources: Institute of International Finance, Reserve Bank of India, DB Research 32 B. Institutional investors: Easing regulations will unlock capital market growth Nearly 25% of households’ total financial savings are allocated in insurance and pension funds, dominated by the government-owned Life Insurance Company of India (LIC) and the Employee Pension Fund (EPF). The LIC continues to hold a near monopoly of the industry, accounting for nearly 75% of the business, despite the opening up of the industry to private competition in 1999. Similarly, although mutual funds have been permitted to offer pension plans, a majority of the public retirement scheme remains under the control of the EPF. The guaranteed rate of return of 9% they offer is a strong incentive for investors to place their financial savings with the institution. Overall, just roughly 10% of the labour force is enrolled in a pension scheme. The rest of the workers rely on their families for support at old age or on their accumulated savings. Stringent asset allocation guidelines constrain returns Portfolio allocation decisions by the insurance and pension fund sector remain deeply regulated, requiring each to invest between 25 to 50% of total funds in government bonds or government-approved securities. Just over 85% of the LIC’s total investments are in public securities – most of which are of long-term maturities – and about 15% in private securities. Given India’s young labour force, it will take quite a number of years before a rush for redemption occurs, suggests that the LIC may not necessarily be optimising its portfolio returns. Portfolio managers’ tendency to follow a buy-and-hold strategy precludes efficient duration management and the opti- A small institutional investors sector Assets, % of GDP Insurance companies Pension funds Mutual funds Foreign institutional investors 0 5 10 15 Sources: Various domestic associations, IADB, author's estimates 33 29 Small savings schemes sponsored by the government offer guaranteed annual returns of 3. 5% to 9% (Reserve Bank of India). 13 February 14, 2007 Current Issues misation of the portfolio’s risk/return profile. At the same time, the underdeveloped corporate bond markets inhibit fixed income portfolio managers to exploit relative value across different segments. Suboptimal returns are also generated by the limited exposure allowed in the equity markets as a result of stringent regulation. Simply put, there is significant room to improve upon households’ long-term wealth creation, but this will call for the relaxation of portfolio asset allocation rules prescribed by the government. Greater private participation will encourage competition in the insurance and pension funds, bringing product innovations in the market that better match investor risk/return requirements. Creating more active markets with greater foreign presence Foreign institutional investors (FII) and mutual funds are accorded considerable leeway in their asset allocation decisions in contrast to the insurance and pension fund sectors. Because they can adjust their positions in response to changes in their liquidity needs or the economic environment, they tend to set the tone in market sentiment or influence prices despite their comparatively small size. FIIs can invest across a variety of instruments in the local markets but are subject to limits. Current regulations permit all FIIs combined to own no more than 24% of any Indian company’s total paid-up capital. Investments over the threshold are subject to the approval of the company’s Board of Directors. There are ongoing calls to raise the limit further, which remain in constant debate among the policymakers, due to their concerns about potential destabilising effects of sudden capital withdrawal. In 2004, maximum allowed FII investment in government securities, including Treasury bills, was raised to USD 2 bn from USD 1. 75 bn and in corporate bonds to USD 1. 5 bn from just USD 0. 5 bn. Hedging foreign currency exposures in the forward market is permitted. Assets under management of mutual funds have soared USD bn 70 60 50 40 30 20 10 0 09/93 09/04 09/05 09/06 Although efforts to welcome FIIs are encouraging, the total amount of investment limits accorded to them is still meagre. Easing FII controls would accelerate the deepening and broadening of the capital markets, but this would require redressing capital account regulations aimed at preserving market stability in case portfolio positions are unwound. Mutual funds are a viable long-term saving vehicle The landscape of the mutual fund industry has undergone significant changes since the establishment of the Unit Trust of India in 1964, which for decades held the monopoly. By the mid 1990s, barriers to entry were gradually dismantled, allowing domestic and foreign private institutions to enter the fray. Assets under management have grown to around USD 65 bn in September 2006 nearly 10% of GDP (see chart 34), quadrupling in value since 1993. At its current growth rate, the sector’s size will double over the next 10 years. With intense competition came the adoption of measures to improve transparency. Restrictions on investment in debt instruments and money markets were loosened. A number of different schemes 30 are now available in the market , which appeals to investors’ varying investment objectives and constraints. The listing of openended schemes allowed investors the flexibility to adjust their fund exposures, while regulations against fund managers’ use of Source: Association of Mutual Funds of India 34 30 These include assured return, balanced, floating rate, fund of funds, gilt, growth, income, liquid and money market funds. February 14, 2007 14 India's capital markets Still very low penetration of mutual funds Households' investment by type, %* 39. 2 20. 9 6. 2 44. 7 erivatives have been relaxed, allowing them to hedge their positions. Given the rapid growth of the industry in the past 3 years, can the Indian mutual fund industry be characterised as having come of age? Not when seen in the light of the low share of mutual funds in the household sector’s total investment pie (see chart 35). One promising development announced in the Budget in 2006 was the lifting of overseas investment limits by mutual funds to USD 3 bn from USD 2 bn. This will allow domestic fund managers to offer new opportunities in higher-yielding funds, such as those dedicated to emerging markets and alternative investments (e. . commodities), which are currently not available in the local market. Combined with rising per-capita income, improving awareness of capital market investing and pension fund reforms will make mutual fund investing a viable long-term investment vehicle. 27. 5 76. 2 17. 3 5. 5 UTI scheme Fixed deposits EPF/PPF Post office Others 8. 5 Mutual fund Fixed Bonds LIC IVP, NSC NCC IV. The road ahead 35 Source: Securities and Exchange Board of India Capital market liberalisation is good for GDP growth Real GDP growth per capita, % 6 5 4 3 2 1 0 -1 -2 India’s regulators have been active in seeking ways to develop the country’s financial markets, and a culture of introducing greater risk management is starting to set in. The main challenge ahead is to strengthen the political will to further ease regulations in the capital markets and the limits prescribed to market participants. India’s economy is expected to benefit enormously from the process of gradual capital market liberalisation. Empirical evidence has shown that emerging market economies that have heralded changes in their 31 financial markets experienced higher growth and investment (see chart 36). India is no exception, with per-capita GDP and domestic investment rising post-liberalisation. Economies which pursued deeper financial market reforms, and whose per-capita incomes were roughly similar to India’s prior to their liberalisation periods, not surprisingly experienced even greater rewards. Drawing from these countries’ experiences, India’s growth potential can experience a sustained pick-up if it stays on the path of reforming its capital markets. Full capital account convertibility no longer appears to be a pipe dream, going by the RBI’s reconsideration of the Tarapore 32 Committee’s roadmap to capital account liberalisation . Early in 2006, the conditions for full capital account convertibility have been re-examined against issues such as exchange rate management, prudential safeguards to monetary and financial stability and 33 implications of dollarisation in India . Although full convertibility is still not expected to occur overnight, the momentum towards that goal seems to have accelerated. Jennifer Asuncion-Mund (+49 69 910-31714, jennifer. [email  protected] com) Mexico Malaysia India Chile Investment growth per capita, % 6 4 2 0 -2 -4 Mexico Malaysia India Chile Thailand Pre-liberalisation average Post-liberalisation average Official liberalisation date: India, 11/92; Chile, 01/92; Mexico, 05/89; Malaysia, 12/88; Thailand, 09/87 Source: Federal Reserve Bank of St. Louis Thailand 31 32 36 33 Bekaert, Geert et al (2003). A committee headed by S. S. Tarapore submitted its recommendations for full capital account convertibility in 1997, shortly before the Asian financial crisis. In the event, authorities delayed the implementation of the Committee’s prescriptions, opting for calibrated measures instead. Reserve Bank of India (2006). 15 February 14, 2007 Current Issues Bibliography Bank of International Settlements. BIS Quarterly Review (various issues). Basel. Switzerland. Bekaert, Geert, Campbell R. Harvey and Christian T. Lundblad (2003). Equity Market Liberalization in Emerging Markets. 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Have India’s Financial Market Reforms Changed Firms’ Corporate Financing Patterns? Asian Development Bank Institute. Tokyo. Japan.  © Copyright 2007. Deutsche Bank AG, DB Research, D-60262 Frankfurt am Main, Germany. All rights reserved. When quoting please cite â€Å"Deutsche Bank Research†. The above information does not constitute the provision of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do not necessarily correspond to the opinions of Deutsche Bank AG or its affiliates. Opinions expressed may change without notice. Opinions expressed may differ from views set out in other documents, including research, published by Deutsche Bank. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the information given or the assessments made. 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