Critical Reflection Essay Example | Topics and Well Written Essays - 1500 words

Critical Reflection - Essay Example During the second seminar, members of the forum discussed debated on several issues that face if not the society, the issues face humanity. Some of the common issues debated during this case include; the aspect of sexual desire, social isolation, anger as an aspect of motivations, personality disorder and the aspect of being sadistic. Other debated topics included sexuality, fantasy, characters of the perpetrators, actions and victim’s psychological features. However, the main topic of the seminar was sexual offending and sexual homicide. During the first seminar discussion, it was revealed that violent crime entails a crime whereby the offender threatens or uses violence upon an individual. In most cases, violent crimes entail crimes whereby the main objective is violent act. Alternatively, violent crimes include the types of crimes, which are committed with weapons. The seminar revealed that violent crimes are always seen as negative and unnecessary. Most of the members drew a conclusion that violent crimes always turn out as bad, dangerous and ugly towards fellow human beings. However, it was also discussed that violent crimes can be ambiguous along with power dimensions which mostly results in ineffectiveness and weakness. Some members of the seminar however were of the opinion that acts of violence remain a successful aspect of social positioning. In response to the aspect of media perceptions of violence, the discussion generally established that there are three different fundamentally spheres of media communication which generally interact the aspect of violent crime. The three aspects include the entertainment aspect, online and news. Further discussions revealed that the three spheres are subdivided into media sub-spheres, which include television, radio, films and the internet. These forms of media and sub-media aspects play an essential role in interacting with a near inexhaustible crime numbers as well as crime control activities

Tobacco Prevention Essay Example for Free

Tobacco Prevention Essay Tobacco Alcohol (or any other) i) Using interventions for reducing tobacco use among the users ii) Carrying out smoking bans iii) Taking measures to reduce intake by minorities iv) Using provider reminder systems that govern the providers of these products about the implications to the users v) Using school based methods of interventions to educate the effects of tobacco to students. vi) Using community based task force to help educate influence of tobacco to the people vii) Increasing campaigns towards cessation of tobacco use i) Using interventions for reducing alcohol use among the users ii) May not necessarily need bans on its use iii) Measures to reduce the alcoholism by minorities is highly necessary iv) Reminder use systems may not necessarily be important though can be used. v) School based methods of interventions may be highly recommendable. vi) Community based task force may be of necessity in preventing alcoholism vii) Cessation campaigns may be of necessity. (1) Distinguishing methods of preventing tobacco form that of alcoholism or any other behavior. 2) Tobacco use policies The policies to prevent tobacco use should virtually be constituted at all dimensions that run from local campus and state policies. Local policies are those that should be aimed at controlling and preventing the general use of tobacco within the local society. This could be through the application of cordial measures and policies that are aimed at articulating and monitoring the use of tobacco within the society. Campus policies should be instituted aimed at regulating and monitoring the levels of tobacco use within the campus boundaries. Such policies will therefore help to reduce the proficiency of tobacco taking among campus students. The state policies are the overall counter measures and policies that regulate the overall use of this product. It should define the requirements, penalties, regulations and relations between smokers and the rest of the state structures (Robert, 1999) 3) Three major policies on tobacco taking Controls on advertisement Increasing campaigns on cessation Introductions of smoking bans Aimed at reducing the motivating impact to its consumers. Can be achieved through increased cots and regulations on advertisement Manufacturers entitled to indicate a risk warning on their adverts. Social programs aimed at reducing the use of tobacco Smokers are given awareness of the impact of smoking Aim to govern interventions for both current and future smokers. Penalties aimed at reducing smoking May be imposed to the providers, manufactures or the smokers. Culprits are made to pay penalties and charges for their break of legal regulations 4) Tobacco developmental programs Various developmental programs can be instituted on tobacco use. Firstly, adequate information about the dangers of tobacco should be developed by all participants. Elsewhere, controls that govern to reduce the level of supplies to ensure the lowest levels of supplies should be instituted. This could be through governmental regulations that may posit regulatory framework about the levels of tobacco supplies by the manufacturers and the providers. Additionally, controls on advertisements that reduced extravagance in such adverts should be developed. Controls on advertisement would be important in reducing the levels of motivations in use of tobacco by the consumers (Robert, 1999) Reference Robert, T (1999) Prevention and Societal Impact of Drug and Alcohol Abuse. London, Routledge

Use of CBCT in Orthodontics- A Review

Use of CBCT in Orthodontics- A Review ABSTRACT Lateral cephalometric radiographs are most commonly used as a diagnostic tool in orthognathic surgery as well as orthodontic treatment. But the limitation of lateral cephalograms is its 2 dimensional nature whereas the human body is 3 dimensional. Conventional 2D lateral cephalograms have numerous drawbacks in terms of investigating the changes in the alveolar bone and roots, particularly in the anterior region, as a consequence of the midsagittal projection. Additionally its accuracy is questionable as it has projection errors. The use of computed tomography in 3D imaging of human body is available in the field of medicine since last 30 years. CT scanning is the three dimensional imaging technique giving quantitative assessments of the buccal and lingual cortical bone plates and labiolingual width of alveolar bone with elevated accuracy and precision. But the use of computed tomography in dentistry is limited because the amount of radiation exposure with this technology is very high . Since the invention of Cone Beam Computed Tomography, the amount of radiation exposure in the patient is reduced. This enhances its use in obtaining the 3D images of the craniofacial structures. This technology helps in visualizing the hard and soft tissues of the craniofacial structures from various perspectives and helps in thorough diagnosis and treatment planning of orthognathic surgery and orthodontic patients. The principles of CBCT and its use in the field of orthodontics will be discussed in detail in this paper. KEYWORDS: Cone beam computed tomography, Surgical orthodontics. INTRODUCTION Orthodontics is a field, which places a significant amount of emphasis on the modification of abnormal craniofacial growth patterns, in addition to the correction of dental malrelationships. Successful orthodontic and surgical treatment of such anomalies naturally requires efficient and reliable imaging of the structures of the cranial complex. Ever since the advent ofÂÂ   the Bolton cephalometer in 1931 [1], orthodontists have consistently used lateral cephalograms in evaluation of treatment as well as in diagnosis and treatment planning. In addition, postero-anterior, panoramic, occlusal and peri-apical views of the skull and teeth have been used as and when required to aid in the diagnosis. All these additional radiographic views add up to a significant quantity of radiation exposure to the patient, which can and should be avoided if possible. Also, the 2 dimensional nature of these conventional radiographic views imposes further limitations such as overlap, leading to lack o f visualization of individual structures, errors due to projection, as well as the incapability to identify true skeletal asymmetries when present [2]. Thus, it has been recognized for some time now that three- dimensional imaging of the skull is the need of the hour in orthodontics. 3D Computed tomography in Orthodontics The use of computed tomography in 3D imaging of human body is available in the field of medicine since last 30 years. But the high radiation exposure and the prohibitive cost of this technology have till now precluded its use in orthodontics. However, recent advances in CT technology have seen a dramatic decrease in radiation as well as in cost, making it a viable and desirable alternative to traditional imaging. The newer CT machines can now perform a complete scan of the head in just a few seconds and provide the patient an effective dose of only 50 micro-Sieverts, compared with about 2000 from a conventional CT scan of the entire head [3]. This follows the ALARA principle (As low as reasonably acceptable) for radiation exposure, of the American Dental Association. Radiation exposures are further reduced when one believes that a single CT image can replace a number of conventional radiographs that are now considered essential for almost every orthodontic procedure. Thus, the routine use of CT scans for orthodontic diagnosis may not be very far away [4]. Cone Beam Computed Tomography (CBCT): Technique and Advantages Conventional CT machines acquire image data by using either a single narrow X-ray beam or a thin broad fan-shaped X-ray beam. These X-ray beams rotate around the patient in a circular or spiral path as the patient moves through the scanning machine or as the rotating beam passes over the patient. A series of detectors register the attenuation of these X rays, and from the data gathered, the machine reconstructs the internal structure of the patients body [5]. 3D data of the patients anatomical structures is stored in the form of Voxels. These can be thought of as tiny cubes arranged next to each other. The brightness of each cube represents the density of the corresponding anatomic structure. Obtaining the final 3D object from the raw data requires a time consuming process called rendering, which is achieved using computer algorithms [6]. However, a new digital imaging breakthrough, the NewTom QR 9000 Volume Scanner (Verona, Italy) is now available for clinical practice. This CT scanner uses a cone-shaped X-ray beam that is large enough to encompass the region of interest. It produces a much focused beam, minimizing scatter, thus reducing the absorbed radiation dose to 45 microSieverts [7]. In contrast to conventional CT imaging the patient remains stationary throughout the procedure. In a single scan, the X-ray source and a reciprocating X-ray sensor rotate around the patients head and acquire 360 pictures (1 image per degree of rotation) in 17 seconds of exposure time. The 360 acquired images undergo a primary reconstruction to mathematically replicate the patients anatomy into a single 3 dimensional volume. Further, the software allows for reformatting and viewing the image data from any point of view in all 3 dimensions. Thus, from a single scan, frontal, lateral, panoramic and other views can be created. Addition ally, the anatomy can be peeled away layer by layer to locate the desired section. A major advantage of CBCT-generated cephalograms is the ability to excise unwanted structures such as the cervical spine and occiput, avoiding superimposition of irrelevant structures, and providing a remarkably clear image of pertinent maxillo-facial structures [8]. Uses of 3-dimensional computed tomography in Orthodontics Assessment of alveolar bone The alveolar bone height is particularly important in adults and periodontally compromised patients. Assessment of available bone is necessary prior to arch expansion or labial movement of incisors. Surface irregularities due to ectopic teeth, bone dehiscences, salivary gland invaginations and other abnormalities can also be visualized in three- dimensional images. A new resource for occlusal assessment is the lingual view-as if the clinician were looking from the back of the patients head into the oral cavity. Impacted tooth position Impaction (or failure of eruption) of teeth is a common orthodontic problem, which requires precise localization for the purpose of surgical exposure and guidance into the oral cavity. Conventional views such as the occlusal and periapical views cannot precisely locate such teeth. CT scans with 3 dimensional reconstructions provide an excellent means to accurately locate such teeth. In such a study done on a 21 year old girl, by Ravinder et al. [9], an impacted maxillary left canine was accurately localized, and revealed to be in a horizontal, palatal position. This was done, by obtaining various views, such as plain axial, sagittal CT slices, as well as superior, sagittal and superior- oblique views of the maxillary dentition. Walker, Enciso and Mah [10] have also reported the advantages of 3D imaging in the management of impacted canines. In addition, cysts of the jaws, supernumeraries and ectopic/buried teeth can also be visualized using this technique. Temporomandibular Joint Assessment Coronal, sagittal and axial views of the temporomandibular joint obtained from the CT scan can be correlated with the occlusal views. Functional shift of the joints can be occasionally detected as differences between the left and right TMJ views. In addition, 3D CT studies on patients who underwent orthognathic surgery, have allowed better evaluation of post surgical condylar resorption [11]. Surgical patients including syndromes and clefts Surgical planning for patients with jaw asymmetry, e.g. Hemifacial Microsomia can benefit from 3D imaging. This allows measurement of true jaw dimensions without the customary problems of magnification, superimposition and distortion, inherent in 2 D cephalograms. Use of virtual cutting tools and collision tools to plan out surgery on the 3D images, means that orthognathic surgery as well as distraction osteogenesis can be carried out with a far greater degree of precision, leading to more predictable results. [12] Facial Analysis A conventional photograph is a simple two- dimensional representation that is not correlated with the supporting skeleton. The 3D volume can provide any frontal, lateral or user-defined view of the face, and by altering the translucency of the image, one can determine the exact relationship of the soft tissues to the skeleton. This has major implications in the planning of tooth movements, orthodontic extractions, orthognathic surgery, and other therapies that could alter facial appearance. Tongue size and Posture Volume measurements of the tongue could provide a more objective assessment of size, to aid in the diagnosis of arch-width discrepancies and open bites. Airway assessment Volume measurements of the airway could evaluate patency, particularly in patients suspected of adenoid hypertrophy, mouth-breathing or obstructive sleep apnea. Turbinates and nasal morphology can also be evidently seen in CT scans. This would mark a significant improvement over the use of 2 dimensional lateral cephalograms. Root resorption 3D CT images can show areas of root resorption on central and lateral incisors adjacent to impacted canine teeth. Walker, Enciso and Mah [10] showed that incisor resorption adjacent to impacted canines is present in 66.7% of lateral incisors and 11.1 % of central incisors. A correlation was found between the proximity of impacted canines to the incisors and their resorption. Current CT machines may have too low resolution to detect early stages of root resorption as a result of orthodontic movement, but this may be possible in the future [6]. Planning for placement of dental implants Osseo-integrated implants may be used in orthodontics either for the prosthetic replacement of missing teeth, or as stationary anchorage to facilitate tooth movement. Optimal spacing as well as correct root angulations of adjacent teeth must be achieved in order to successfully place dental implants [13]. Cone beam CT scanning could be used to accurately assess space availability, root angulations, as well as the quality of alveolar bone at the implant site. This would replace the use of panoramic and peri-apical radiographs currently used for the purpose. Cephalometric Analysis Conventional 2D cephalometric measurements can also be carried out, by rendering a 2D projection of the 3 D data, resembling a radiograph. For bilateral cephalometric landmarks, the computer can calculate the midpoint between them. Certainly, new cephalometric landmarks and analyses based on 3D data shall be developed in the near future. Conclusion 3D computed tomography represents the cutting edge of orthodontic imaging and diagnostic capability. While mainstream orthodontists are still living and practicing in a 2D world, orthodontic residents in many universities are becoming 3D sense. The several distinct advantages of 3D CT imaging, with ever-decreasing radiation doses, mean that this is where the future of orthodontic imaging lies. References Broadbent B.H. A new technique and its application to Orthodontia. Angle Orthod 1931; 1: 45-66. Baumrind S. Integrated Three Dimensional Craniofacial Mapping: Background, Principles, andÂÂ   Perspectives. Semin Orthod 2001:7:223-232. Mah J.K, Danforth R.A, Bumann A, Hatcher D. Radiation absorbed in maxillofacial imaging with a new dental computed tomography device. Oral Surg Oral Med Oral Pathol Oral Radiol Endod 2003; 96: 508-13. Hatcher D.C, Aboudara C.L. Diagnosis goes digital. Am J Orthod Dentofacial Orthop 2004; 125: 512-5. Carlsson C. Imaging modalities in x-ray computerized tomography and in selected volume tomography. Phys Med Biol 1999; 44: 23-56. Demetrios. J .Halazonetis. From 2-dimensional cephalograms to 3-dimensional computed tomography scans. Am J Orthod Dentofac Orthop 2005; 127:627-637. Kau C.H, Richmond S, Palomo J.M, M.G.Hans. Three-dimensional cone beam computerized tomography in orthodontics. Journal of Orthodontics 2005;32:282-293. Huang J.H, Bumann A, Mah J. Three-Dimensional radiographic analysis in orthodontics. J Clin Orthod 2005; 36; 7: 421-428. V. Ravinder, Nikhar Anand Verma, Ashima Valiathan. 3-Dimensional Computed Tomography- A new method for localization of Impacted Canines. J Ind Orthod Soc 2002; 35: 73-75. Walker L, Enciso R, Mah J. Three dimensional localization of maxillary canines with cone-beam computed tomography. Am J Orthod and Dentofacial Orthop 2005; 128: 418-423. Bailey LJ, Cevidanes LH, Proffit WR. Stability and predictability of orthognathic surgery. Am J Orthod Dentofac Orthop 2004; 126:273-7. Troulis M.J, Everett P, Seldin E.B, Kikinis R, Kaban L.B. Development of a three-dimensional planning system based on computed tomographic data. Int J Oral Maxillofac Surg 2002; 31:349-357 Ravinder V, James Sunny P, Mariette DSouza, Valiathan Ashima. Osseo-integrated implants for maxillary lateral incisors- Orthodontic considerations. Malaysian Dental Journal 2003; 24(1):79-86.

An Enemy of the People, Waiting for Godot and Civilization and Its Disc

Science and Human Values in Ibsen's An Enemy of the People, Beckett's Waiting for Godot and Freud's Civilization and Its Discontents Throughout the centuries, society has been given men ahead of their time. These men are seen in both actual history, and in fictional accounts of that history. Aristotle, Copernicus, Galileo, Bacon, and even Freud laid the framework in their fields, with revolutionary ideas whose shockwaves are still felt today. For every action there is an equal and opposite reaction, and so society has also possessed those how refuse to look forward, those who resisted the great thinkers in science and civilization. The advancement of science and technology is like the flick of a light switch; research may be slow and tedious, but once discoveries are made, they are not long hidden. In contrast, advancement in the ideas of ethics and human values come slowly, like the rising of the sun; there are hints at advancement for a long time before the next step is ready to be made. Because of this, science and technology takes off in leaps and bounds before human values have awakened to find society moving again. This race between science and human values is a common theme in literature. Sigmund Freud discusses it in his essay Civilization and Its Discontents, bringing up themes later reflected in Waiting for Godot by Samuel Beckett. In the more concrete story line of Ibsen's An Enemy of the People one finds intertwined this same conflict. It seems generally agreed that science and technology are winning in this race, at the expense of humanity. But there is less agreement as to just what to do about it, or what is needed to save humanity from its own scientific advances. Sigmund Freud breaks t... ...rson with the right balance of science and people skills can help slow science down and awaken the ideas of human values in people regarding scientific advances in human genetics. If human values are to keep up with scientific advancement, there needs to be not complacency but action. Freud saw both science and the search for happiness rooted in the outlet of energy from repressed instincts. The continual recharge of this energy promises to keep the race between these two forces going. As expressed in Ibsen's play, it seems the key to a thriving society is to let neither science nor human values get too far ahead. Works Cited: Beckett, Samuel. Waiting for Godot. New York: Grove Press,. 1954. Freud, Sigmund. Civilization and Its Discontents. New York: W. W. Norton, 1961. Ibsen, Henrik. An Enemy of the People. Dover Publications: New York, 1999.

Ap Euro Martin Luther Conservative or Revolutionary Essay

â€Å"Luther was both a revolutionary and a conservative.† Evaluate this statement with respect to Luther’s responses to the political and social questions of his day. Martin Luther was one of the greatest monks, priests, and theological teachers of Germany, along with being the symbol of the Protestant Reformation. He did not start off so religious however. One day he was caught in a frightening and dangerous storm. He prayed to God begging not to be killed, and vowed to become a monk if he survived. He did live, upholding his word to the lord, and joined a monastery. He joined an Augustinian friary in 1505, where he suffered from anfechtung, or spiritual anxiety. He never knew if he was doing enough good works to achieve salvation and gain entrance to the kingdom of heaven, as it was believed by the Catholic religion that it took good works along with faith in order to enter. To take his mind off of his religious worries, he was recommended to a teaching post at the University of Wittenberg. There, he taught theology and was quite popular among his students. Luther suffered from constant constipation, so he often read the bible while on the toile t. One day while doing this a certain passage from the epistle of St. Paul to the Romans: â€Å"the just shall live by faith,† which led to Luther’s core belief of sola fide, or faith alone. Through this belief, Luther believed that the only thing needed to achieve salvation was to live by faith alone, which challenged the Roman Catholic Church’s theology that both faith and good works were necessary. Luther shared his beliefs with the people of the Holy Roman Empire, demanding change to the way theology was widely taught. He agreed with parts of the current teachings and was conservative, wanting to keep parts of the religion the same. He kept the sacraments, however reduced the amount of them from 7 to 2. He was also like many Roman Catholic religious figures, anti-Semitic. Lutheranism, as his religion came to be called, became more submissive to the state as well. However Luther also had many revolutionary ideas, which angered those of the RCC. In response to the political problems, he wished to do away with the process of indulgences, which were  no more than pieces of paper in his eyes as works had nothing to do with salvation. His nailing of the 95 Theses highly angered the church authorities, as it went against everything they taught and believe. However in his response to the social problem of the Peasant’s Revolt, he told the princes to crush those who rebelled, as social revolution was not his intention. After careful evaluation, Martin Luther has proven to be both a revolutionary as well as a conservative. Luther proved himself time and again of his revolutionary approach to religion. His best example of this was the 95 Theses. Johann Tetzel, a German Roman Catholic priest, was selling an expensive indulgence as a fund-raising idea of Pope Leo X to finance the building of St. Peters basilica. When one of Luther’s parishioners came to confession, he presented an indulgence he had paid for, claiming he no longer had to repent of his sins, since the document promised to forgive all his sins. Luther was outraged, and wrote up the Ninety-Five Theses, protesting the sale of indulgences, which he proceeded to nail to the door of All Saints’ Church in Wittenberg Germany. He did this on a major Catholic holiday, All Saints Day, which struck at the core of the Catholic religion. The most prominent, challenging, and well known was Theses 86 which read â€Å"Why does the pope, wh ose wealth today is greater than the wealth of the richest Crassus, build the basilica of Saint Peter with the money of poor believers rather than with his own money?† He said indulgences did not do what the Church said it did because salvation was granted by sola fide. The ideas in the Ninety-Five Theses quickly spread throughout Europe via the moveable type printing press. Another time Luther engaged in revolutionary actions was at The Disputation at Leipzig. He was invited to participate in the Church-sponsored debate, as the Church wanted a dialogue concerning Luther’s challenges to Catholic doctrine and practices. RCC leaders at Leipzig declared that Luther’s ideas were wrong because the pope and Church traditions could not be wrong. Luther then shocked everyone, denying the authority of the pope and church councils. He declared that the only authority on matters of faith for Christians was the Bible. He said that sola scriptura, or scripture alone, determined the belief of Christians, not the teachings of the Pope. Upon the conclusion of the meeting at Leipzig, Luther was threatened with a papal bull of excommunication, which he burned in protest. Luther also showed revolutionary idea at the Diet of Worms. He  was called to attend by Charles V, the recently elected Holy Roman Emperor. At the assembly, Luther was asked if he had written the â€Å"Ninety-Five Theses,† â€Å"The Address to the Christian Nobility,† â€Å"The Babylonian Captivity of the Church,† and other works. Luther accepted the accusations and acknowledged that he had written them, and when asked to recant his ideas or suffer the consequences, he requested a night to think about his decision. When Luther returned the next day, he stood firm when asked if he would recant and proudly declared â€Å"Here I stand, I can do no other.† Luther was then declared a heretic and became a marked man. Troops of Frederick the Elector rescued Luther and took him to safe hiding in Wartburg Castle, where he proceeded to translate the Bible into the vernacular, which was highly against the teachings of the church and very illegal. He also declared that monks and nuns were not obligated to uphold their vows. Luther not only acted revolutionarily towards political religious issues, but towards the social issues of the time as well. The most well known was the Peasants’ Revolt. Some religious leaders twisted and perverted Luther’s ideas to benefit their own causes, with the most prominent being Thomas Mà ¼ntzer. They wrote the â€Å"Twelve Articles†: a petition of peasant demands and sent it to the Swabian League that called upon the Holy Roman Emperor to help the peasantry deal with economic and religious issues. When Charles V ignored the â€Å"Twelve Articles,† preachers led by Mà ¼ntzer stirred the masses to revolt against the nobles. Luther believed the peasants were way out of line, as he was adamantly against mixing religious reformation with political and social revolution. He disassociated himself with Mà ¼ntzer and the revolting peasants. He urged the princes to work together to â€Å"slaughter the swine,† or the peasants. He argued that reli gious subjects must be subordinate to their secular authorities. Luther proved himself a revolutionary over and over through many acts throughout his religious life. Though Luther was a revolutionary, many of his actions also dictate a conservative approach, wanting to keep some things the same or even go back to the way they used to be. An important message Luther delivered was that good Christians owed obedience to established authority in worldly matters. Lutheranism viewed the state with more respect than other religions did. Lutheranism was much more submissive to the state. He insisted that Christian liberty was an internal freedom, known only to God. Luther wanted the church teachings to  go back to how they used to be, based on sola scriptura or scripture alone, without the need of outside interpretation by the pope, bishops, abbots, etc. He was conservative in that he made many alliances with princes who liked his ideas, spreading them to their own kingdoms. He didn’t side with armed rebellions, citing his name, against the nobility in regions of Germany, instead he backed the nobility, telling them to work together to â€Å"slaughter the swine.† He did not want to do away with the sacraments, however he did want to reduce them from seven to two. This showed how he did not want to change all parts of the Roman Catholic religion, only parts. Also, like most religious figures of the time Martin Luther was anti-Semitic. He wanted all the Jewish people to convert to Lutheranism, as he did not believe the Jewish religion was correct in its teachings and be liefs. He restricted the right of private judgement in matters involving conscience, but never denied it. A conservative in the way he did things, Luther was truly a great leader. Luther believed that the only thing needed to achieve salvation was to live by faith alone, which challenged the Roman Catholic Church’s theology that both faith and good works were necessary. Luther shared his beliefs with the people of the Holy Roman Empire, demanding change to the way theology was widely taught. He agreed with parts of the current teachings and was conservative, wanting to keep parts of the religion the same. He kept the sacraments, however reduced the amount of them from 7 to 2. An anti-Semitic, Luther displayed similarities with other religious officials. Lutheranism became more submissive to the state, as Luther believed that in worldly matters religion has to listen to authority. However Luther also had many revolutionary ideas, which upset those of the RCC as it went against the basics of Roman Catholic teachings. In response to the political problems, he wished to do away with the money robbery of the selling of indulgences, which were no more than pieces of paper in his eyes as works had nothing to do with salvation. His nailing of the 95 Theses made the power of the church authorities fluctuate, as it went against everything they taught their followers and everything they had been taught.. However in his response to the social problem of the Peasant’s Revolt, he told the princes to crush those who rebelled, as social revolution was not his intention. He meant to keep the matters of social or political problems separate from religious reform. After carefully evaluating his actions,  Martin Luther has proven to be both a revolutionary as well as a conservative on multiple occasions.

Traditional Forms of Dress Essay Example

Traditional Forms of Dress Essay Example Traditional Forms of Dress Paper Traditional Forms of Dress Paper Clothing has long ago ceased to be just a protection from the cold and the sun and has evolved as fast as the human race. Animals show off bright colours to attract others at mating time and the human animal too has found it necessary to flaunt his or her looks. To help us to do this, since we have neither features nor fur, we have clothes as an excellent substitute.  Just like cultivation, clothes have evolved differently in different countries. So each country has its own traditional clothes. Usually clothes start out as being practical and later evolve as fashions. Clothes too develop according to cultures and, especially, religious beliefs. In countries where women are expected to be modest in dress, they cover themselves more. In other cultures there are no rules. In come societies where being practical in order to survive is the main rule, minimum clothing is emphasized for both men and women. But one thing stands out; traditional dress is usually graceful and says a lot about the history and cultures of the people. Most traditional clothes are graceful; at least cultures of the wearers. Most societies in the world want to maintain their cultures. In countries where many cultures prevail because of migrant communities like Singapore, there is fervour to preserve all the cultures when the word culture is mentioned, almost without exception clothes take a leading position. It is common to see clothes of bygone eras being exhibited in museums as examples of culture. Along with dancing, art and language clothes are one of the visible aspects of a culture. If we agree that tradition must be preserved then, traditional clothes must be preserved. The two can be said to be inseparable. Preserving tradition, on the other hand, does not mean that we should always wear them. The tendency today is to adopt clothes from other societies if they are more convenient: for example, the worker in India who has been wearing the white clothing for centuries, when doing outdoor work now finds that jeans, that great American creation is much more convenient. In fact, he probably wonders how his ancestors ever worked in clothes. But this does not in the least mean that he has given up clothes and begun to wear jeans- far from it; out of work he still wears the traditional clothing. So we have a good example of tradition being maintained while being practical about clothes. There are certain occasions when it is more practical to wear clothes from other countries, usually western clothes and it would be simply to insist otherwise. Then, again, as it is important to preserve traditional clothes there are certain other occasions when traditional clothes will be ideal. There are also certain occasions when traditional clothes are a must. There are occasions like weddings and other cultural functions when the graceful traditional clothes will add colour and gaiety to the occasion. In Singapore, it is permissible to wear ones ethnic traditional clothes to even the most formal function, even at the presidential palace. However, it turns out that only the ladies will appear in traditional clothes at such functions. This is no wonder as theirs, all our cultures are truly magnificent whereas, for some inexplicable reason, gentlemens clothes are plain and simple. Men wearing the traditional clothes beside their ladies are likely to appear like servants. Hence, it is common to find ladies adorned in traditional clothes while the gentlemen are in smart tuxedos; so much for preserving traditional clothes. The argument could be: preserving them need not mean wearing them.  Preserving traditions is akin to preserving the soul of a society. They take centuries to evolve and represent milestones in the evolving of a culture. Traditional clothes take the leading position when it comes to maintaining traditions and this is most welcome.

Drawing development described by Luquet and Piaget Essays

Drawing development described by Luquet and Piaget Essays Drawing development described by Luquet and Piaget Essay Drawing development described by Luquet and Piaget Essay Luquet was one of the first to get down researching into the development of pulling utilizing a cognitive development theory and let go ofing a book in French during 1927. He described differing phases of pulling development which a kid will go through through ; this became known as the phase history. Luquet thought that after a period of scrabbling that kids go through, there were four phases of pragmatism which kids will besides travel through. These were thought to be causeless pragmatism, failed pragmatism, rational pragmatism and ocular pragmatism. Causeless pragmatism shows the kid s drawing as largely scribbles but the kid can see existent life objects within the Markss. The kid will make this once more and once more and notice these accidental representations, until they reach the point where they will put out meaning to pull something representational from existent life. The kid will be come ining the 2nd phase which is failed pragmatism when they systematically set out with the purpose to pull something resembling existent life. During this phase an grownup can see an grownup can see what the kid has set out to pull although it can look like there are many errors with of import characteristics missed out and objects non ever where they should be, ( such as a kid s drawing of a parent, where the parent has a face but no organic structure, with its legs and weaponries widening out from the caput ) . Intellectual pragmatism occurs when betterments of the kid s concentration and attending occurs, intending the drawing will picture outstanding of import characteristics of the object. This is the phase where the kid will experience it is of import that the shaping characteristics in the form are drawn. To accomplish this, the kid will utilize transparence, pull certain characteristics as if like a program, and pull certain things broken down. However this prospective is different to how the object is seen in existent life and the kid notices this and will get down to go concerned about pulling this manner. This leads to the kid desiring to pull life like representations of an object and this takes the kid into the 4th phase, ocular pragmatism, which means that the kid will pull on object from one position and will merely pull the objects characteristics from the same position. In 1956 Piaget took the work of Luquet s ( 1927 ) phases of pulling to utilize to develop his model, which excessively was utilizing a cognitive development theory, Piaget did nt see pulling as a particular portion of development, but instead a window into the general cognitive development of a kid. For him, a drawing showed the cognitive competency of a kid instead than what phase of development they were at. For the most portion, Piaget agreed with Luquet s theory and both of there models has similar phases of development for kids s drawing. There are certain strengths for their theory which include that they seem to explicate seeming phases of acquisition, back uping grounds for this was shown by Clark ( 1897 ) who studied kids aged 6 to 16, they were asked to pull an apple with a hatpin go throughing through it, the younger kids were found to pull a uninterrupted line while the older kids tended to merely pull the seeable parts of the pin, and Freeman A ; Janikoun ( 1972 ) who studied cups that were drawn by kids. The cups had a flower form and were positioned so that grip or flower form was either seeable for the kid or non seeable for the kid, they found that they younger kids drew the grip even when it was non seeable where as the older kids merely drew what they could see. However, the failings for Luquet/Piaget s phase theory are that the functions of civilization and environment had non been taken into consideration. Evidence against their phase theory has been shown by Selfe ( 1977, 1995 ) who studied graphics of talented kids and autistic initiates. She studied a immature miss with autism who could pull singular images, the drawings she studied were produced by the kid between the ages of 3 and 9, and said that the misss images were singular because they were done while she was so immature and because Nadia ( the immature miss ) did non demo that she had any type of ability to see conceptually. This goes towards demoing that non all kids will trav el through the phases that Luquet and Piaget suggest, but whether this is merely for kids with conditions such as autism is non presently known. Barret, Beaumont A ; Jennett ( 1985 ) besides provide grounds against Luquet and Piaget s phase theory by speaking about the instructions which the kids received, for case, did the kids receive standard instructions ( with the teacher stating pull precisely what you see from where you are sat ) or whether the kid received expressed instructions ( with the teacher stating pull precisely what you see from where you are sat, look at it really carefully so you can pull it merely as you see it ) . They found that when kids received the standard instructions 11 % of the kids got the pulling correct, and when the kids received the expressed instructions 65 % of the kids got the pulling correct. Harmonizing to Luquet ( 1927 ) , kids move bit by bit from one phase to the following and that they can still pull from pervious phases in when they are in that last phase, this is because they may still desire to stand for something in a different manner. He suggests that the ground kids will pull the same things over once more without them changing much is non due to habit but that they prefer to pull it in that manner. Luquet s theory should non be considered as merely a phase theory as he had many other points to add to it, including the two above, for this ground kids s pulling ability should be seen as more of a unstable gesture, since a kid will come on through the phases but can easy steal back if they want to, leting them to stand for non merely the portion of the object that they see but the whole of the object. Kellogg ( 1970 ) used a Renaissance man theory and took a different attack by proposing that drawings of kids are merely forms as kids merely draw things that show what they perceive as good signifier . She found that normally when a kid reaches 5 or 6 old ages old, that most kids will be able to pull a reasonably accurate and complete individual ; this is because by this age most kids will hold formed a pulling expression which allows them excessively continuously and systematically pull an accurate image of a individual. She thought that some forms can be seen in kids s scratchs and that it is these forms that can so be used to organize a image. Kellogg did hold that pulling made usage of the base of representational experience but says that the usage of the lines would differ. Kellogg did come up with a descriptive categorization that had the visual aspect of developmental patterned advance by looking at 1000s of kids s drawings and analyzing them closely. These pulling showed th at the development passed from basic scratchs so diagrams, so shapes eventually traveling to uniting forms, she suggests that when a kid reaches that phase the kid is working as an creative person. Willats ( 1977 ) used a perceptual theory but agreed that drawings can be seen as representations but thought that kids could perchance see perceptual jobs when they try to pull a 3D image on paper ( a 2D infinite ) . He besides suggested that kids can alter the solutions to these jobs as they grow older and develop. Willats ( 1977 ) took kids aged from 5 to 17, and showed so a existent scene, the kids were asked to pull what they saw from a fixed position point. When the kids had finished their drawing Willats chose to sort the drawings utilizing a drawing system which gave a certain mark to a image. The mark was given based on the figure of right representations of occlusion by convergence. There are many pulling systems and during this probe six were found, and it was shown that it was the older kids who used the more complex systems. Willats found that there were distinct phases at which the development took topographic point which was found to cover all the ages of the kids test ed, this besides showed that the ability to utilize overlap appears uninterrupted, with few kids utilizing convergence at under 9 old ages old with kids larning fast between the ages of 10 and 12 old ages old. Arnheim ( 1974 ) used a Renaissance man theory and had suggested that a kid will pull an object which will demo the shaping characteristics ( as the kid see s them ) in the simplest manner for the kid to be able to pull them within a piece of paper ( 2D infinite ) . One illustration that was given of this is that a kid will most likely draw an animate being from the side so that the relationship between its legs, tail, and any other shaping characteristics are seeable leting people to clearly see what animal it is, while a kid will pull a individual from the forepart, leting the facial characteristics to be depicted and besides demoing the symmetricalness of these characteristics doing it clear that it is a individual. This was supported by Ives A ; Rovet ( 1979 ) who systematically found that kids of any age who had passed the scribble phase, and were asked to pull an object that was familiar but without seeing the object, all used those specific ways of drawing. Luquet and Piaget are the two large names when it comes to looking at the development of pulling in kids, but much more research has been done since Luquet s initial research in 1927 which was popularised in 1956 by Piaget. They both took the cognitive development attack to pulling development which may hold been why they both agreed on the phase theory, with research by others looking into different attacks to pulling development. There is a batch of support for Luquet and Piaget s theory of phases of pulling development, and although it has a few unfavorable judgments, the chief one being that it does non account for any cultural differences, most psychologists will hold that there is some signifier of phases of development that a kid will travel through when it comes to pulling development. Another unfavorable judgment of Luquet and Piaget is that it does non believe about the kids with such developmental conditions as autism and asperger syndrome. These conditions can affect hold s and damages in the development of the kid s communicative and societal accomplishments, which may detain the kid in some country s of development, while other kids with these types of upsets have been shown to be good at certain things which including drawing, with some kids demoing singular promotion in pulling. It besides depends on the instructions that the kids are given as to whether they get the pulling correct or non, and so the teachers have to be careful how they ask the kids to pull the object otherwise it may act upon how they draw the object.

What Writers Say About Christmas and Santa Claus

What Writers Say About Christmas and Santa Claus Christmas happens only once a year, but it is one of the most fun times of the year! Writers have said a lot about the Christmas holiday (and everything that goes with it). Celebrate Christmas with these quotes from famous authors like Charles Dickens and Walter Scott. Famous Quotes About Christmas and Santa Claus Sing hey! Sing hey!For Christmas Day;Twine mistletoe and holly.For a friendship glowsIn winter snows,And so lets all be jolly!- Author UnknownThere are three stages of a mans life: He believes in Santa Claus, he doesnt believe in Santa Claus, he is Santa Claus.  - Author UnknownI have always thought of Christmas time, when it has come round, as a good time; a kind, forgiving, charitable time; the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow passengers to the grave, and not another race of creatures bound on other journeys.  - Charles Dickens, A Christmas CarolI will honour Christmas in my heart, and try to keep it all the year.  - Charles Dickens, A Christmas CarolHappy, happy Christmas, that can win us back to the delusions of our childish days; that can recall to the old man the pleasures of his youth; that can transport the sai lor and the traveler, thousands of miles away, back to his own fire-side and his quiet home!  - Charles Dickens, The Pickwick Papers  (1836) Christmas isnt a season. Its a feeling. - Edna FerberI do like Christmas on the whole... In its clumsy way, it does approach Peace and Goodwill. But it is clumsier every year. - E.M. ForsterFail not to call to mind, in the course of the twenty-fifth of this month, that the Divinest Heart that ever walked the earth was born on that day; and then smile and enjoy yourselves for the rest of it; for mirth is also of Heavens making. - Leigh HuntChristmas is the season for kindling the fire of hospitality in the hall, the genial flame of charity in the heart. - Washington IrvingI heard the bells on Christmas DayTheir old, familiar carols play,And wild and sweetThe words repeatOf peace on earth, good-will to men!- Henry Wadsworth LongfellowI hear that in many places something has happened to Christmas; that it is changing from a time of merriment and carefree gaiety to a holiday which is filled with tedium; that many people dread the day and the obligation to give Christmas presents is a nig htmare to weary, bored souls; that the children of enlightened parents no longer believe in Santa Claus; that all in all, the effort to be happy and have pleasure makes many honest hearts grow dark with despair instead of beaming with good will and cheerfulness.  - Julia Peterkin, A Plantation Christmas (1934) Love came down at Christmas;Love all lovely, love divine;Love was born at Christmas,Stars and angels gave the sign.- Christina RossettiAnd the Grinch, with his Grinch-feet ice cold in the snow, stood puzzling and puzzling, how could it be so? It came without ribbons. It came without tags. It came without packages, boxes or bags. And he puzzled and puzzled till his puzzler was sore. Then the Grinch thought of something he hadnt before. What if Christmas, he thought, doesnt come from a store. What if Christmas, perhaps, means a little bit more. - Dr. SeussA Christmas gambol oft could cheerThe poor mans heart through half the year.- Walter ScottTo perceive Christmas through its wrapping becomes more difficult with every year. - E.B. White, The Second Tree from the Corner (1954)Somehow, not only for ChristmasBut all the long year through,The joy that you give to othersIs the joy that comes back to you.And the more you spend in blessingThe poor and lonely and sad,The more of your hearts p ossessingReturns to you glad.- John Greenleaf Whittier Yes, Virginia, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus.  - Francis Pharcellus Church

Western civilization after 1800. The Cold War Research Paper

Western civilization after 1800. The Cold War - Research Paper Example The Cold War refers to a period of history between 1945 to the early 1990s (Gaddis, 1997) that is exemplified by a continuing state of political conflict and military tension, as well as a few proxy wars between the Communist and the Western world The ‘cold’ part of the name is a reference to the fact that there was no actual war between the two primary forces, the Soviet Union and the United States, although in some ways it is a misnomer because, as previously mentioned, there were proxy wars involved. There were several key events in the Cold War that can be used to illustrate the nature of the tension involved and how the military powers used their power and animosity to form this state of military tension. Firstly, it is necessary to discuss the reasoning behind the Cold War. The world at the time was attempting to recover from the events of the Second World War (Russet, 1994) as well as trying to establish new regimes or experiment with the old ones (Gaddis, 1997). The principal difference between the two major powers was the way of life – the Soviet Union was primarily communist and supported communist regimes like that of Cuba, and the United States was primarily a capitalist state. This ideological difference was compounded by a geographical disagreement – the Soviet Union had many states which were ceded to them by the fall of Nazi Germany (Mearsheimer, 1990) and the United States and the Allied Forces disagreed about how these borders should be drawn. The United States funded a lot of the European recovery, and the Soviet Union refused to let any of the member states participate in the program, leading to some areas of poverty within the USSR and an animosity towards communism in the US. The first main event of the Cold War can be said to be the Berlin Blockade. Notably, Germany would become a particularly important company in the events of the Cold War, perhaps because of its direct involvement in World War Two and the fact that the country was now split in two (Gaddis, 1997). Berlin was occupied by both Soviet and Allied forces after the end of World War Two, and the USSR began a blockade of the railroads and any other access to the Allied parts of the city under the assumption that this would cause the Allied Forces to cede defeat and allow Soviet access and control of the city. The response to this by the Allied Forces was to use the British Royal Air Force to send supplies into the city (this became known as the Berlin Airlift) and ultimately, the plans of the USSR to control Berlin were foiled (Walker, 1995). The next event in Cold War history can be considered the Korean War (Walker, 1995). Korea at this time was not split into two countries – North and South – as it is today. These two nations began a war in the year 1950 which carried on until 1954. North Korea was supported by the People’s Republic of China, a communist state, and was thus ultimately supported by the USSR who provided some military aid for the conflict. South Korea was supported by the United Nations and the United States. This was the first example of a proxy war occurring in Cold War history (Gaddis, 1997). The ultimate conclusion of the war is still evident in the splitting of the Korean peninsula that we can see to this day, and although there is no direct warfare, we can still see that the sides taken are still relatively easily split into communist and capitalist nations (Russet, 1994). The Vietnam War is a subject very close to the hearts of many Americans, and was another proxy war within the Cold War era. Contrary to what the name suggests, the Vietnam War took place in Cambodia and Laos as well as Vietnam (Walker, 1995). Again, this was a war of North and South, with the North being communist again and sponsored by the USSR, and the South being anti-communist and involving the heavy use of a lot of United States military troops. The US government wanted to have a large inv olvement in this war to

Marketing Strategy TOTAL INTEGRATION Essay Example | Topics and Well Written Essays - 2500 words

Marketing Strategy TOTAL INTEGRATION - Essay Example Piercy places great emphasis on the brand identity of the company in integrating marketing and communication campaigns. Total integration involves; Today Primark has established itself as one of the competitive retail store chain in UK, Ireland and Spain with a total of 173 retail outlets at strategic locations. Employing more than 25000 people the company has been in value clothing for well over 35 years and has also been voted as 'Best Value High Street Fashion' by GMTV and ITV viewers1. This study is an effort to look into the practical implementation of the theoretical aspects relating to marketing strategies, HR support, marketing communication, brand equity proposition, strategic alliance etc. which have been instrumental in the success of Primark. To evaluate the strategies adopted by Primark, while using various tools like Porter's five forces analysis, SWOT, PEST, Ansoff Matrix etc. an effort would also be made to compare the performance of Primark with some other retail companies like Topshop, Prada, Asda, Tesco etc. and how Primark has been able to beat the competition. One of the key weapons in the armoury of Primar k has been its ability to come out with items at rates cheaper than the rivals. It will be quite interesting to learn how the company has been able to come out with such lower prices. ... and how Primark has been able to beat the competition. One of the key weapons in the armoury of Primark has been its ability to come out with items at rates cheaper than the rivals. It will be quite interesting to learn how the company has been able to come out with such lower prices. Retail business is at the base of running a retail store, trying to earn the loyalty of customers, while at the same time trying to grab attention of newer customers. Piercy (2001) has also pointed out the desires of many company executives some of the issues as prerequisite towards being more customer friendly. The issues pointed out are like; Value of the product or service in achieving a successful strategy in taking on the competition. This is also concerned with customer relationship management. Mele and Colurci (2006) provide distinctive paradigms for value as such. It is stated that the term 'value' can be defined in different ways according to the adopted perspective of analysis; it is possible to determine a 'customer value', a 'firm value' and a 'stakeholder value'. Online presence of the companies to cater to customers spread across a larger area and keeping in mind the convenience of the customer Total integration of company's resources and capabilities to deliver a product which is able to fulfil the needs of customer. Consideration of effective planning, strategizing and creativity as the key to come out with effective performance. From the strategic planning point of view, competitor analysis is very important for any company's long-term survival (Kotler, 1972). The first step towards such an analysis begins by identifying the strengths and

Case Study on Operations Research Paper Example | Topics and Well Written Essays - 1250 words

Case Study on Operations - Research Paper Example Entrepreneurship generally entails the process where individuals with high aptitude undertake to pioneer change thus producing, improving, and increasing wealth. Such individuals are usually discouraged and held back by the uncertainties and risks that are involved with pioneering change. In this case, insurance companies come in handy to bear the risks involved with pioneering change at a reasonable premium and thus influencing entrepreneurial attitude, innovation, and investment. Establishment of businesses with new ideas is risky to businesses, since it involves pioneering investments into unknown ventures that may turn out to be either a gain or loss. Although there are outstanding entrepreneurs in the society that can bring about huge economic advancements, entrepreneurial capability exists among all human beings and it would therefore collectively build the economy, provided insurance services are availed for the unlimited risks that exist in the business world (Tiwari, 2007, p .171). Entrepreneurs undertake to insure themselves against risks involved with their ventures through entering into insurance contracts where they service the insurance with periodic premiums. Through insurance, entrepreneurs can venture into investment with a positive attitude and pioneer innovations irrespective of the risks involved. Innovation is the process of creating products, services, and technology in new and creative ways, which contributes towards solving business problems (Jolly, 2003, p.6; Bessant and Tidd, 2007, p.19). Although all human beings have entrepreneurial skills depending on the society and the environment in which they are brought up, very few individuals get to venture into entrepreneurships due to the fear of risks involved. Risk avoidance largely contributes to economic underdevelopment and thus insurance companies play a key role in fostering economic development through insuring entrepreneurs against business risks. Through insurance companies, entrep reneurs have the opportunity of transferring the risks the face through insurance policies that cover losses incurs by entrepreneurs incase of risk occurrence. However, more to insurance policies businesses have opportunities of transferring risks to other business participants such as the suppliers, customers, and even landlords. Businesses often face the risk of customers returning goods previously sold, to transfer this risk, the business may restrict return of goods thus avoiding costs of returned merchandise (Ramsey and Windhaus, 2009, p.134). Insurance companies generally influence investment and economic development, considering that good ideas for new companies can come from anyone who seeks solutions to existing problems faced and does not have to bear business risks involved (Read et al. 2011. p.12) Q2. Casualty and property insurance and life insurance largely contribute to the stability of consumption among citizens since they have confidence in future consumption risks. Consumers who fully insure themselves against unforeseen future financial challenges that may arise have the tendency to consume more in the present and thus, the economy of the country as a whole is stabilized. This is in consideration of the

Business Essay Example | Topics and Well Written Essays - 2500 words - 4

Business - Essay Example The product to be marketed is a wide range of cosmetics (100%Vegetarian) especially lipsticks, and it would be launched in the Indian market by the name: To enter into a new market firstly a Market Research has to be done and thus, I have prepared a questionnaire for the females between 16-55 yr as a part of my Primary Market Research analysis. Also I have applied Porter’s Five Forces Model i.e. the threat of substitute products, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. Culture is the manner in which things are performed within a society, community or nation. Culture is not a trait that comes with birth but it is learnt over a span of several years. The major things that can be observed amongst Indian culture are as follows:- The Terpstra and Sarathy Cultural Framework helps marketing managers to assess the cultural nature of an international market. The Eight categories are Language, Religion, Values and Attitudes, Education, Social Organizations, Technology and Material Culture, Law and Politics and Aesthetics. 1. Language: - There are as many as 22 official languages in India. The national language of the country is Hindi and most of the people in the country are quite well versed with English as well owning to the British rule in the country for around 200 years. 2. Religion: India is considered to be a land of unity in diversity. Many religions are practiced in the country including Hinduism, Jainism, Buddhism, Islamism, Sikhism, Christianity etc. The cow is considered sacred in Hinduism. She is the one who should be worshipped for the various graces she bestows on humanity. 40% of the total population is Vegetarian. 3. Values and Attitude:- Generally people in India have a high regard for their elders. Although traditional roles are changing, especially in urban areas, there

ACT 19 COCA-COLA Essay Example | Topics and Well Written Essays - 500 words

ACT 19 COCA-COLA - Essay Example The company maintains high ethical standards and it is a corporate citizen. Coca-Cola has had positive impacts on the Russian community and economy in general. The company has provided jobs to most individuals in the Russian economy. In addition to, Coca-Cola was the primary sponsor of the first Olympic Games in Moscow. In the Russia, the government does not allow homosexuality. On the other hand, Coca-Cola supports gays worldwide which is against the Russian laws. In Russia, the government banned the sale of Coca-Cola to children under the age of eighteen years old. The prohibition on sale of Coca-Cola to underage children is to protect their health. The parliament of Russia ban on the drink was because of the expert opinion of the adverse effects of Coca Cola on the human body. The demand for the drink in Russia has fallen, and the company has opted to close down some of the factories in the country. It is because the company is under criticism for the production of unhealthy products for its citizens. Coca-Cola Company is one of the largest non-alcoholic drinks in Germany. The company has American roots though it has a strong foundation in the country. The Coca-Cola Company provides economic value to the economy of Germany. It has positive impacts on the German economy because it has positive effects on the German GDP. It provides approximately1 billion dollars in tax to the German economy. It provides employment to most German individuals in the country. It is a stable employer in the country because it provides employment to many individuals. Coca-Cola sponsors some stadiums and sporting events in the country. It also sponsors numerous sporting events in the country. For example, the company sponsored the 2006 World Cup in the country. It was one of the major corporations to sponsor the World Cup in the country. The company works hand in hand with some enterprises in the Germany. Germany benefits more from the efforts of Coca-Cola

50 Year of US Policy in the Middle East Essay Example | Topics and Well Written Essays - 1500 words

50 Year of US Policy in the Middle East - Essay Example The biggest asset of Middle East is the amount of oil that is concentrated in the region, which has simultaneously also emerged as one of the biggest problems. Therefore the Western population is highly accustomed to the propaganda of the Middle Eastern regions, and this has also brought Islam in the middle. It was especially prominent during the European colonial times, which was also exacerbated by Edward Said in his famous book, â€Å"Orientalism†. The way it has been negatively stereotyped has provided tremendous justification for involvement and also in ensuring a certain level of stability for the interests of powers that are present in the region (Shah, 2). Another issue, which is also pivotal to Middle East, is racism and cultural stereotyping that has become very concentrated. There are certain war films that depict an Islamic or Arab group as bad, which clearly show the current conflicts etc. A bad guy is very often an Arab from one of the rogue states and because of the 9/11 attacks perpetrated against the United States and also the War on Terror; it’s very likely that this description will continue. Another huge problem is that to maintain their dominance and supremacy in the Middle Eastern, the West has also put a lot of power, money and influence in the hands of corrupt Arab leaders, and consequently collaborated in the overthrow of those people who were seen as a threat to their interests. Furthermore, it has contributed a great deal in keeping the populations at bay, for the wealth, power and militarization of the elite class. It is also said to be done for combating the phenomena of communism.

Business Essay Example | Topics and Well Written Essays - 2500 words - 4

Business - Essay Example The product to be marketed is a wide range of cosmetics (100%Vegetarian) especially lipsticks, and it would be launched in the Indian market by the name: To enter into a new market firstly a Market Research has to be done and thus, I have prepared a questionnaire for the females between 16-55 yr as a part of my Primary Market Research analysis. Also I have applied Porter’s Five Forces Model i.e. the threat of substitute products, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. Culture is the manner in which things are performed within a society, community or nation. Culture is not a trait that comes with birth but it is learnt over a span of several years. The major things that can be observed amongst Indian culture are as follows:- The Terpstra and Sarathy Cultural Framework helps marketing managers to assess the cultural nature of an international market. The Eight categories are Language, Religion, Values and Attitudes, Education, Social Organizations, Technology and Material Culture, Law and Politics and Aesthetics. 1. Language: - There are as many as 22 official languages in India. The national language of the country is Hindi and most of the people in the country are quite well versed with English as well owning to the British rule in the country for around 200 years. 2. Religion: India is considered to be a land of unity in diversity. Many religions are practiced in the country including Hinduism, Jainism, Buddhism, Islamism, Sikhism, Christianity etc. The cow is considered sacred in Hinduism. She is the one who should be worshipped for the various graces she bestows on humanity. 40% of the total population is Vegetarian. 3. Values and Attitude:- Generally people in India have a high regard for their elders. Although traditional roles are changing, especially in urban areas, there

50 Year of US Policy in the Middle East Essay Example | Topics and Well Written Essays - 1500 words

50 Year of US Policy in the Middle East - Essay Example The biggest asset of Middle East is the amount of oil that is concentrated in the region, which has simultaneously also emerged as one of the biggest problems. Therefore the Western population is highly accustomed to the propaganda of the Middle Eastern regions, and this has also brought Islam in the middle. It was especially prominent during the European colonial times, which was also exacerbated by Edward Said in his famous book, â€Å"Orientalism†. The way it has been negatively stereotyped has provided tremendous justification for involvement and also in ensuring a certain level of stability for the interests of powers that are present in the region (Shah, 2). Another issue, which is also pivotal to Middle East, is racism and cultural stereotyping that has become very concentrated. There are certain war films that depict an Islamic or Arab group as bad, which clearly show the current conflicts etc. A bad guy is very often an Arab from one of the rogue states and because of the 9/11 attacks perpetrated against the United States and also the War on Terror; it’s very likely that this description will continue. Another huge problem is that to maintain their dominance and supremacy in the Middle Eastern, the West has also put a lot of power, money and influence in the hands of corrupt Arab leaders, and consequently collaborated in the overthrow of those people who were seen as a threat to their interests. Furthermore, it has contributed a great deal in keeping the populations at bay, for the wealth, power and militarization of the elite class. It is also said to be done for combating the phenomena of communism.

Financial Crisis Essay Example for Free

Financial Crisis Essay The term ‘financial’ means money or money related resources and the term ‘crisis’ means deterioration or disaster or emergency so the financial crisis means the rapid deterioration of financial indicators such as asset prices and short-term interest rates which becomes the cause of financial disaster. It is also defined as the sudden change in stock rates in the financial markets. An example of financial crisis is stock market crash (Feldstein 1991, p. 1–2). The reason for financial crisis is not the huge investments made by the business leaders in the venture related activities which fail and do not bring any profitable outcome but the reason is the sweeping of numerous market participants in the heavy risk-involved dealings for the same venture for profitable means. This can be in the form of thrifts lending, bank lending or share investments in the stock market. NBER study classifies the financial crisis into three major components: 1. Domestic capital related financial crisis 2. Economic and financial crisis through international origin and transmission 3. Financial crisis transition through economic collapse Thus, the overall reasons for financial crisis arises through the excessive involvements and investments of financial resources (money, assets, properties) in the stock market for increasing the number of shares in the interest of venture. Other reasons are the unintentional means which too arises from the market through the declining rates in short-term interest and assets prices which ruin the financial resources of a developed company and finally become the reason of ‘financial crisis’ (Feldstein 1991, p. 2–3). References Feldstein, M. (1991), The Risk of Economic Crisis, Chicago, The University of Chicago Press.

Government Bond Market in Nigeria

Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an Government Bond Market in Nigeria Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an