Research Topics: Economics

Towards a Global Currency and World Government Research Proposal Paper

Proposed Title: Visibility, Process and Effects of Global Currency: A case study research on The Cooperation Council for the Arab States of the Gulf (CCASG)   The research will focus on global currency placing imperative views on its visibility, process and effects particular on the economic and political side, looking for detailed and comprehensive case study analysis towards the Arab States of the Gulf, how the latter may utilize global currency as put into effective stature and assumptions.  Preliminary literature is important here detailing global currency, any salient information bases that is of value to the research focus, the execution of case surveys to be handed to the cooperation council authorities of the Arab States, this will be in survey based statements as put in a five point response ratio and scaling in following measures: a) Global currency and visibility b) Global currency and process c) Global currency and economic effects d) Global currency and political effects. The ratio will have to be in point 1 to point 5 system of strongly agree down to strongly disagree. Furthermore, selection of specific journals and articles is imperative for the research as it allows grounding nature and discussion analysis from case study research on the Cooperation Council for the Arab States of the Gulf   Amiably, when using national currencies in international trade, both flexible and fixed exchange rate systems pose number of problems. The most important is large deflationary bias on the global economy, as deficit countries are forced to try to attain positive current account balance to protect their exchange rate. There was a proponent who advances the Post Keynesian policy proposal (Moore, 2004) for common global currency, where exchange rates vanish and countries no longer have an external balance constraint. In order to move toward common world currency, two approaches has been considered: the top down approach, consisting of global central bank as it is politically unfeasible, and  bottom-up approach, upon consisting of blocs of countries that chose to dollarize or euroize (Moore, 2004). The research will take account of certain dollarization and euroization plan for the global economy. The latter information would enable Arab States economies to pursue expansionary domestic policies since they would no longer face an external balance constraint. The Gulf Cooperation Council have some vivid plans to introduce global based single currency by the year 2010 into their six member states such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The research study will then focus on selected macroeconomic and institutional issues and key policy choices which are likely to arise during the visible process as well as certain effects of monetary integration.   Research findings will be that there will be supranational Gulf Cooperation Council monetary institution as to be required to conduct single monetary and exchange rate policy geared to the economic, monetary and financial conditions into monetary union as a whole assumption, the Gulf Cooperation Council member states (Sturm and Siegfried, 2005).  have already achieved remarkable degree of monetary convergence, but fiscal convergence remained such challenge and needs to be supported by appropriate fiscal policy framework as there is currently high degree of structural convergence, although the situation expected to diminish in view of the process of global dominance in Gulf Cooperation Council economies, which call for several adequate policy responses to recognize effective global currency (Sturm and Siegfried, 2005).  Indeed, there will be impeding need to compare the dollar peg to dollar-euro basket peg as alternative exchange rate regimes for the incipient Gulf Cooperation Council currency union. Thus, quantitative evidence suggests basket peg does not dominate dollar peg for improving external stability. Aside, as Gulf Cooperation Council exports and external financial assets become more diversified, presence of a more flexible exchange policy may be necessary for competitiveness and stability. Pegging the prospective common Gulf Cooperation Council currency to a basket, like the dollar-euro basket, may provide conservative transitional strategy towards ideal and flexible exchange rate policy.   References Moore, B.  (2004) A global currency for a global economy. Journal of Post Keynesian Economics, Volume 26, Number 4 pp. 631 – 653   Sturm, M. and Siegfried, N. (2005). Regional Monetary Integration in the Member States of the Gulf Cooperation Council. June 2005 ECB Occasional Paper No. 31 Credit:ivythesis.typepad.com

Towards a Global Currency and World Government Research Proposal Paper

Proposed Title: Visibility, Process and Effects of Global Currency: A case study research on The Cooperation Council for the Arab Sta...

Developing Business Ideas Towards Emmigrant Population In Norway

DEVELOPING BUSINESS IDEAS TOWARDS IMMIGRANT POPULATION IN NORWAY        In Norway there are more or less 600,900 immigrants and 100,000 Norwegian half nationals with their parents coming from different countries around the world and mostly these immigrants may come from nearby countries including Poland, Germany, Sweden and Iraq, India etc. according to statistic last January of 2011. This record comprises approximately 12% percent of their population are immigrants that paved its way to many business establishment that caters to their local people and most especially to the immigrants. The enterprising people have taken their initiative to think of ways to build a business toward developing a market orientation to be able to attract these immigrants and to invest their money to start a business. In fact even the immigrants themselves can develop their own businesses as long as they follow the government rules and regulations and pay up all the taxes necessary in putting up such business.       The locals and the immigrants have an equal opportunity investment in developing a business; they can even seek advice to their local government or they can also seek online. Norway has a website that offers a list of companies, products and services, articles and references that they can use in order to establish a good business ideas this website is loaded with information that they can use, visit http://www.nortrade.com/ for more information. It is also good thing that 90% of most of their people according to survey believed that these immigrants should have equal rights to employment, education and business opportunities and most of the local Norwegian people are compassionate enough to these immigrants.  Just like in the Indian community in Oslo there are fast-food shops and restaurants for these immigrants and they somehow survive in the industry because they focus on Indian food that they like.       The first thing they need to consider is the location and the residence, the local Norwegian people may need to study their place if they are surrounded with immigrant people and what they intend to buy, how much they are willing to spend and what is the necessity in this area. All this ideas may need capital to build but they can start in modesty. The investors must also need to study more information from the immigrants in order to create the best products or services that they will sell. Their religion, food preferences, beliefs traditions and culture makes it viable contributing factors in establishing a business to create a market niche. Investors must also need to create a business that is not hard labor and may need to hire so many workers from the beginning since this kind of business is risky and expensive from the start in order to eliminate so much labor expenses from the beginning.       As much as possible they must deal diligently with the immigrant in whatever business transaction they will need to put up in order to establish a strong bond and customer satisfaction. Investors can greatly achieve a good business opportunity for local nationals and the immigrants if they understand that Norway is a country which exercises a free market with the help of government intervention. This is a great opportunity for everyone since the government and their people realized that history shows that most of these immigrants are the victims of war from their countries, they are refugees of time. Their people can make use of the abundant natural resources in order to establish a business opportunity; they are rich in petroleum, oil, gas, different chemicals and marine life that the immigrant may need.       The immigrant can also take advantage of their position to develop a business if they can import food, metals, textile, clothing, apparel, technology and machineries for vegetation and crops production since these are the needs of this country although they must also be aware that agricultural products and its subsidies can create a high tariff trading practices when it comes from other countries but it can be an opportunity to develop a good business for the locals and the immigrants. They must also consider that International Trade has become a major contributing force for economic development in Norway, both locals and immigrants can develop a viable trading practice and ideas in establishing their own business. The Department of trade and Industry in Oslo, Norway is open for business for locals and immigrants. To be able to make the business legal the investors and small business people may need to register their business with the help of Coordinated Register Notification which provide a control forms in most business types you can download this forms in this website; (http://www.brreg.no/english/registers/business/business.html). References: http://www.norway.no/oss/  http://www.state.gov/r/pa/ei/bgn/3421.htm                                                   http://www.cgdev.org/section/initiatives/_active/cdi/_country/norway            http://en.allexperts.com/q/Norway-151/2011/6/immigration.htm                        http://www.nortrade.com/  http://www.brreg.no/english/forms/    http://www.brreg.no/english/registers/business/business.html Credit:ivythesis.typepad.com

Developing Business Ideas Towards Emmigrant Population In Norway

DEVELOPING BUSINESS IDEAS TOWARDS IMMIGRANT POPULATION IN NORWAY In Norway there are more or less 600,900 immigrants and 100,000 ...

Risk Management In Rural Oraganizations

RISK MANAGEMENT IN RURAL ORGANIZATIONS IN EAST AND NORTH AFRICA         There are various risks in most rural organizations depending on geographic areas and locations just like in Near East and North African Region (NENA) they have studied the entire region and the risk involved in Agriculture, Management, Marketing and Financial Risk that they are going to face in the future. It is their primary objective to create a more valuable project evaluation projection to lessen or eliminate various types of risk that they have been facing in the recent years. The Organization (NENA) has undertaken several studies to better identify the current risk management causes and solutions from different areas of their studies and other relevant and current issues. In July of 2010 Banks, Cooperatives, Government and Non Government Organizations have shared their part and ideas collectively in order to create various illustrative examples and recommendation of their view in risk management.       The contribution of such organizations is basically emphasizing on projects that includes risk management in rural areas including Collateral Management risk and how they can recover and sustain revolving funds for future loans for most farmers this also includes good governance in market and farmland, banking system, recovery risk management and Information Technology is also included since there are various types of risk involved here. In an overall discussions the areas are partially specify that is wide and comprehensive that the expression and involvement of such risk management may need to be documented in order to implement a more reliable and significant risk management resolution that will be implemented in the next few years.       Multiple Strategies and various determinants are expected to arise within the next few months in this current year of 2011knowing that the trends are continuously changing especially in the field of agricultural and financial risk. Most organizations have collectively identified the following determinant to focus on and to provide an overview of the most adequate management risk that should be given proper focus needed for rural areas. According to the most recent studies using different research design and analysis they have concluded the integrated most important risk management in the following rural areas in Near East and North African region.       Administrative Risk – the organization (NENA) have identified some banks in most of this regions that there are government banks who have lack of qualified and devoted elected leaders that have been controlling such banks in a weak manner that they have neglected their positions without competitive advantages and innovation, low in initiative and improvement that even demoralize such banks, they have low banking spirit and their employees are overworked. However the names of the personnel involved has not been identified to give them a chance for proper investigation. In this case the risk involved is eliminated by selecting various qualified employees that can manage such banks as the needs arise or if these persons are found guilty to neglect their position.         Agricultural and Climatic Risk – the unfavorable weather condition in most parts of the regions has been presently abnormal these days and naturally that there are crops have not grown the way it should be. The production process involved in farming has been prevented because of droughts then sudden thunderstorm and floods from different geographic location and this is probably the most risky part of their plan. Health problem, accidents, death, low production, famine and scarcity has been the usual effects of this dilemma however the risk management system has found various determinants and still they longed for such solutions that have not been practically identified. The circumstances that may arise is totally unpredictable only a few given measures has been given like safety measures, awareness and preparedness, funds for calamity purposes and other international risk reduction management participation that has been involved including first aid given and agricultural recovery education.       Political and Social Risk – These two dual risks is still involved in risk management studies of (NENA) although it is not given priority in the latter years since it should be in the government initiative that should enforce such risk reduction in political struggle but it can be included and the participation of most citizens are required if they have found officials and government leaders or employees who are performing scrupulous activities including graft and corruption, red tape etc. they should report the case immediately if they have found certain participation in any government agencies. The risk involved in political and social forces have become epidemic that certain government agency and organizations have been losing their financial capability that should have been given for the public use in farming and infrastructure. This has created so much risk in the government funding and most of the time it was the citizen and their way of life have suffered. Risk Management involved here has been thoroughly enforced every year but the risk has become a political and social illness.                        Credit:ivythesis.typepad.com

Risk Management In Rural Oraganizations

RISK MANAGEMENT IN RURAL ORGANIZATIONS IN EAST AND NORTH AFRICA There are various risks in most rural organizations depending on...

The Impact of Entrepreneurship on Unemployment

The Impact of Entrepreneurship on Unemployment   Recent recession   resulted to great global economic depression.  It caused many workers local and abroad laid-off and unemployed;   and,  in order to keep their spirit high in the midst of global crisis  great entrepreneurial motivations  are very crucial for the unemployed people to  aim to start their own businesses after the global recession phenomena.  Several economists think that entrepreneurship is best measured by the number of people who owned and operated businesses. Hence, deeper understanding about the stock of employer’s company during the global recession is very crucial in evaluating the impact of the recession or unemployment to the entrepreneurial activities.  On the other hand, the US business stock has two kinds of firms; first is the employer firms and the other one is the non-employer firms.  And, 80 percent of US businesses are all non-employer companies.  The adverse impact of the global recession on employment was slightly worse for self-employed people than for those who worked for others. From December 2007 to June 2009, the number of self-employed people fell 4.4 percent, while the number of wage-employed people dropped 4.3 percent. (http://www.clevelandfed.org/research/commentary/2011/2011-04.cfm) Unemployment has been a long year’s issue of some countries in the world.   There are many   people who earned  their degrees in college, but still looking for jobs, and even worst, do not have jobs until these days.  And, this unemployment problem has been a serious and growing problem around the globe.  For instance, in the Middle East and North African countries (MENA), where  unemployment rate grows up to  25 percent of those under the age of 24.  While in Egypt, college-educated population without jobs has increased up to 33 percent.  In fact they   ranked as the second country that has highest unemployment rate in the world nowadays.   In the contrary, entrepreneurship has a great impact on the economic prosperity in developing country like United States.  This country has been one of the brightest hopes for expanding economic opportunity and creating jobs in emerging markets for MENA regions.   Somehow, panacea entrepreneurs have consistently proved to be a source engine of growth and job creation.   In this relation, from 1980-2005, US companies accounted for nearly all net job growth. And, many business analysts believed that this has been the result of the focus on entrepreneurship by the emerging economists in the country.  In addition, because American entrepreneurs create jobs and promote innovation from the bottom up, they are a key force for opening up the economic systems of their countries to groups that have previously been marginalized. In doing this, entrepreneurship serves as an important element for the promotion of “Economic Democracy,” where many people from all over the world can take part productively in the economic growth and prosperity through contributing different skills and energy of individuals across countries. This is the most effective way to help many people in improving their lives as well as in contributing their talent and skills to the economic advancement in their own country. (http://blogs.state.gov/index.php/site/entry/entrepreneurship_unemployment) This study found out that US President Barack Obama noted the great impact of entrepreneurship during his speech in the 2010 Summit on Entrepreneurship as vital because he believes that the market is the most powerful force in creating   unlimited opportunities to alleviate people’s life condition and to help them out of the poverty line. In this connection, the Global Entrepreneurship Program (GEP) of the State Department has been committed to draw on America’s entrepreneurial culture in helping the American people as well as other nations to create growth and job opportunity all over the world.   As a result, this program has been beneficial to all partners abroad; and the program has been able to bring closer the private sector partners from USA and the local communities for the creation of an integral entrepreneurial ecosystem economy. The GEP program aims to identify the promising entrepreneurs, and then train them together to become successful entrepreneurs, help them to increase their capital for emerging enterprises, as well as to promote support policy system in order to achieve their common goals and objectives. More than that, entrepreneurs can also plays a key role in connecting the Arab world to a far greater degree in the global economy — opening new opportunities for investment, trade, collaborative research, and growth. This GEP program also aims to give this entrepreneurial opportunities to the growing number of college educated and computer literate young entrepreneurs in MENA regions.  These young entrepreneurs in Middle East and North Africa are mostly young software developers who established their own companies for   mobile phones technology. US government believes that MENA region and other countries all throughout the world deserve the importance and benefits of global entrepreneurship. (http://blogs.state.gov/index.php/site/entry/entrepreneurship_unemployment)   Credit:ivythesis.typepad.com

The Impact of Entrepreneurship on Unemployment

The Impact of Entrepreneurship on Unemployment Recent recession resulted to great global economic depression. It caused many worke...

International Economics

International Economics   The Common Effective Preferential Tariff (CEPT) Agreement for the ASEAN Free Trade Area (AFTA) requires that tariff rates among ASEAN members on a broad range of products be reduced to between zero and five percent, while quantitative restrictions and other non-tariff barriers are to be eliminated. Philippines used quantitative restrictions to protect the domestic industry from an import surge. The National Food Authority (NFA) for instance, administers quantitative restrictions on rice imports.  Both in-and-out-quota tariffs are 50 percent. As a result to this restriction, rice is commonly illegally imported or smuggled into the country from other countries. However in 2003, the Philippine Department of Agriculture opened up the importation of rice to the private sector. Prior to this, the NFA could legally import rice; however the U.S. Government has raised concerns.             This kind of restriction has made the Philippine government progress during the last several years toward bringing its customs regime into compliance with its WTO obligations. It enacted legislation, R.A. 8181 (1996) and R.A. 9135 (2001) and a series of supporting regulations. The supporting regulations also provided the Bureau of Customs with the authority to create a post-entry audit unit, a risk management unit and a border control unit charged with IPR enforcement. The 2001 law restricted private sector involvement in the valuation process and clarified that reference values may be used as a risk management tool, but not as a substitute value for valuation purposes.   References: Pernia, Ernest M. (2002). The rural road to poverty reduction: some lessons from the Philippine experience. Journal of Asian and African Studies. Zoellick, Robert B. (2004). 2003 National Trade Estimate Report on Foreign Trade Affairs. The Office of the United States Trade Representative (USTR). Retrieved November 25, 2004 from (http://www.ustr.gov/assets/Document_Library/Reports_Publications/2004/2004_National_Trade_Estimate/2004_NTE_Report/asset_upload_file231_4191.pdf)     Credit:ivythesis.typepad.com

International Economics

International Economics The Common Effective Preferential Tariff (CEPT) Agreement for the ASEAN Free Trade Area (AFTA) requires that ta...

The Impact of Aging Population

The Impact of Aging Population Based on the various studies, aging population often leads to the increase of dependency ratio of people from 65 years old and above.  Meaning, there are more people who will be claiming retirement benefits like state pensions, heath care pensions and insurances than the people who will work productively and who pays income taxes to the government.  And, the most significant impact of more aging population is those working people will have to force to pay higher taxes.  This event will surely stop many companies to stop sufficient incentive programs to their employees.  As a result, many employees and workers would be forced to leave their jobs and shortages in the work force will be a greater problem in many industries.  At the same time many businesses would tend to close due to lower productivity rate.  With all these negative impact in the economy, there are lots of changes that could be possibly made to keep the country’s economy still running effectively and productively.  (http://longevity-science.org/Population_Aging.htm) Furthermore, aging population will surely increase the massive demands of working people for the increase rate of their compensation as well as to their health care benefits and medical needs. Even in the social security costs in the government side.   In other words, the primary negative impact of aging population is the remarkable shortages of workers in different industries that would cause shortages of production and supplies as well.  This is the reason that many families in some part of the globe are encouraged to have more children as much as possible as to meet the aging population problem in every nation.  Relatively, since there are many women and men who are using birth controls, currently birth rates are decreasing significantly.  Naturally, if there are more old people than the younger people, the tendency is to have a negative impact to many businesses as well as to country’s economy.  In relevant with this, Japan is a country that has a ratio of 19 seniors versus 1 adolescent.  This is obviously a real concern for those countries that number of children is limited by their government, and it has been a part of their government law. In this case,   the government and the various industries may experience remarkable shortages in their work force for a certain period of time.    Perhaps, this is the reason that Japan, Korea, Taiwan, and other countries in the globe   are requiring for additional employees for various industries   from other countries who have more population than they do. However, various governments do their best effort to solve this kind of problem through increasing the participation rate of all younger groups of people.  At the same manner, every government of each country modify the retirement age of their employees.  They even extend the retirement age even beyond 60 years of age.  So long as the employees are still capable of working.  Most countries are giving more importance and great consideration to providing their employees with proper health care program, pension plan and insurance plans.  This is the only effective way of keeping their employees stay longer in their companies.     (http://www.economicshelp.org/labour-markets/ageing-population.html) Moreover, medical benefits and expenditures of the employees are rising faster compared to pension plans due to the fact that Medicare pays for acute and long-term medical treatment and maintenance for the poor –elderly and none elderly workers.  Like in United States, most middle class American employees have fewer savings and investments aside from Social Security.  These are main reasons that many old people forced to enter to nursing homes since Medicaid accounts shoulder 40 percent of all nursing home spending and health payments.  Correspondingly, the lifetime value of Social Security old age benefits is from the time that   it matures until the time of death of the members.  All the objectives of Medical programs and Social Security would be better achieved among the old and retirees through direct allocation of funds to hospitals and other credited health facilities that may serve poor or uninsured aging populations.  The impact of an aging population really affects the federal assistance of the states as well as to the total medical spending scale.  Some economists are seriously discussing about the budget deficits for the Medicare and Medicaid.  This is going worst   by the recent global recession.  There are many companies that were forced to close due to insufficient capital.  Part of this event, many employees in the world were being deprived of their medical, pension, health and insurance benefits that they supposed to claim when they get older.  (http://www.brookings.edu/es/research/projects/budget/fiscalsanity/chapter5.pdf)   References: (http://longevity-science.org/Population_Aging.htm)  (http://www.economicshelp.org/labour-markets/ageing-population.html) (http://www.brookings.edu/es/research/projects/budget/fiscalsanity/chapter5.pdf)   Credit:ivythesis.typepad.com

The Impact of Aging Population

The Impact of Aging Population Based on the various studies, aging population often leads to the increase of dependency ratio ...

Compare and Contrast Political Economy with Critical Political Economy

Compare and Contrast Political Economy with Critical Political Economy Specifically speaking, political economy refers to the   principles of economics that play important role in the politics. The principles of economics always go hand in hand with the politics condition of one country.  Furthermore, the government’s implementation of administrative laws  greatly affect on the outcome of the economic condition of the nation.  Relatively, economics and political science are both distinctive studies of discipline that are based on methodological analysis as well as political evaluation, and economics assessment   which all determine the growth and developmental condition of the state.   Political economy is the study for production, buying and selling of products and services; as well as the study of their association with the law, custom and the government itself. In the same manner, it is also deals with the distribution of national growth, development, and revenue ; as well as the  budget process of the government for the entire national expenses.  In other words, political economy refers to the economic status of the state. In the contemporary society, political economy touches different aspects of government or public issues or concern at large.  Many economists are examining how political forces affect the choice of government policies and laws on the proper distribution of wealth and resources to the economy of the country.  Today, various economic analysis have been applied in order to gauge the conceptual as well as political phenomena of one nation through optimization, incentive programs, as in to  solving political issues or conflicts in the government.  Moreover, the political economy deals more with the strengths and weaknesses of the modern political economy that requires a more complicated approach and political as well as social strategies in order to come up with a solid and stable  macroeconomics in general.  Aside from that, there are two important factors that really determine on the status of the political economy of one nation; and that includes the heterogeneity and conflict of interests among the people.  In view thereof, the society is the one who contributes largely on the decision making and policy implementation of one state.  Therefore, political economy involves the society at large; as well as their individual rights in the state, likewise, the government also plays a very vital role, as the state has absolute power or authority to  lead the  people, at the same time,  manages the progress  of the political economy of the nation effectively and efficiently by propagating laws that will direct   the people, and his subordinates in doing what is right and proper for the common goal  of the nation and the government.  (http://www.vwl.tuwien.ac.at/hanappi/Lehre/pee_draz.pdf) On the other hand, critical political economy refers to both    norms and sentiments of both government and the society at large.   In the same way, it deals with the conflicts of the individual’s responsibilities, as well as the rights of each individual in the state associated with capitalism.  In this connection, mass media is the prevalent factor that does the massive criticism and observation on the performance of the political economists as well as the political economy of one nation.  The media serves as the watchdog of government’s practices, activities, laws and policies; as the government’s information center about its new programs and policy implementations for the public.  Through critical political economy, the economic system gains many valuable insights on the nature of different industries that help in the growth and development of the economy of the country.  Correspondingly, the economic dimension requires joining forces from the societies and the political economists to be able to build peace, harmony as well as stability of the   nation.  More than that, the impact of globalization intervention paved the way for the market liberalization in every nation’s economy all throughout the world.  The government institutions in particular should do efficiently and effectively all their economic responsibilities in order to achieve a good economic outcomes.  At the same level, the government must be accountable to be transparent to the public about the economic programs and activities that they do.  Where and how the monetary funds of the government go?  At the same fashion, there must be a lot of comprehensive financial reports that would show if the government has been able to achieve its goal towards the economic growth and development of its administration and the nation in particular.   Remember, the government has its moral and economic responsibility to the people and the nation.  Comparatively, the critical theory strongly emphasized on the   important value of criticism towards the progress of political economy of one nation.  It helps the government to focus on its weaknesses as well as its shortcomings in the nation’s economic management.  (http://www.lancs.ac.uk/fass/sociology/papers/sayer-critical-standpoints-of-radical-political-economy.pdf) References: (http://www.vwl.tuwien.ac.at/hanappi/Lehre/pee_draz.pdf) (http://www.lancs.ac.uk/fass/sociology/papers/sayer-critical-standpoints-of-radical-political-economy.pdf)         Credit:ivythesis.typepad.com

Compare and Contrast Political Economy with Critical Political Economy

Compare and Contrast Political Economy with Critical Political Economy Specifically speaking, political economy refers to the principl...

DETERMINANTS OF CHILDREN’S NON PARTICIPATION IN EDUCATION

DETERMINANTS OF CHILDREN’S NON PARTICIPATION IN EDUCATION         In all parts of the world and especially among developing countries education is a basic needs and it is the only gift that a person can give to themselves. Parents find it important to set aside their budget for education to secure their children’s needs; they may even be engage in many educational programs and insurance as their investment for the benefit of their children. Education is a very important instrument it can open up opportunities when their children grows. In other countries it is their way to reduce poverty, achieve economic growth, live a worthy life and it is the solution to attain their goal to be respected in the society. In richer countries education is more important to take away ignorance so that they can take care of their business or held a higher position in the community in the future.       But in different countries there are various constraints to keep their children in school participation that discouraged some families and even children to keep up their studies. Children who left schooling at an early age does not exhibit so much changes and development potentials and usually they are left behind most of these children are trapped in early child labor that has stolen their dreams. Some children and family lose hope to pursue education because they are contented on their situation and that they may not even experience what lies in their future, they prefer to live this way, they are the school drop outs including those who never learn to read and write.       Socio Economic Factor – this is one of the most highly predicted determinants that prevents the children to participate in education because they may not be able to afford various expenses including basic necessities of their child including uniform, books and school supplies so they settle of dreaming maybe they send their children if only they can afford such expenses. This results in sending their children to the farm, market or doing only household chores just to save their budget only for necessity and emergency use. The data from United Nations Educational Scientific and Cultural Organizations (UNESCO) shows that from Sub Saharan Africa form grade 1 to grade 5 there are 66% to 77% are left when children reached to graduate in elementary because of Socio- Economic Factors and millions of children do not finish elementary grades worldwide.         Geographic and Demographic Location – is another determinant that can hinder a child to go to schools. Most of the governments can provide basic education service from local to regional networks but this is only limited to the government budget that there are various locations that they cannot reach, students will have to walk on miles to visit such schools this cases are naturally hampering their motivation and it even leads to danger when children needs to cross oceans and mountains. There is also lack of transportation so they may need to use their foot and it takes hours to go back and forth to their home and school almost every-day except weekend.       Lack of Facilities and Infrastructure – Demographic and Health Survey (DHS) as of 2009 including other survey company have found various locations including countries in Bolivia, Malawi, Peru, Philippines and Indonesia, Malaysia, Columbia and other Asian and African Countries that their building and infrastructure are full and non conducive to education. In the Philippines they found many provinces who uses their libraries, walkways including comfort room and under the trees as an alternative classroom. There are also some classrooms that accommodate at least 50 students when they suppose to handle only a maximum of 30 in a class. Teachers and social workers also find it hard to control and maintain children as big as 60 per class.             There are many other determinants including lack of teachers, lack of government support funds, secular and gender problem, overloaded enrollees etc. and this are just some of it that can lead to children’s less participation in school. Specifically this has been experienced in developing countries; the implication of lack of education from such countries definitely leads to poverty driven way of life, lack of opportunity and job placement most of all their stagnant future. No one is to blame in their situations but poverty however should not be a hindrance, families themselves should find ways to create opportunities to take their children to school even in their modest means. They should also prioritize education for their children which is indeed important. Children are the future and education is their tools.         Credit:ivythesis.typepad.com

DETERMINANTS OF CHILDREN’S NON PARTICIPATION IN EDUCATION

DETERMINANTS OF CHILDREN’S NON PARTICIPATION IN EDUCATION In all parts of the world and especially among developing countries edu...

THE MORAL ECONOMY OF WITCHCRAFT (AN ANALYSIS)

THE MORAL ECONOMY OF WITCHCRAFT (AN ANALYSIS)         The Moral Economy of Witchcraft as written by Ralph A. Austen that you can read from this website; http://www.buala.org/en/to-read/the-moral-economy-of-witchcraft-an-essay-in-comparative-history-i this writings created a world of confusion even from a writers point of view about how witchcraft can be developed nor scattered around the nations of African and European regions. Why most of it still exist and practiced in African community while mostly it vanished in most European countries and other parts of the world? Where it really begins? Or it is really an exercise of demonic belief or just a wild imagination of human innocence and how witchcraft has been somehow related to the morality and economy of nations still remains a question no matter how much conclusions since there is still no concrete facts or evidence that long identified nor recorded that is scientifically proven. The economic standing remains a culprit.       Ralph have used all the world’s greatest writers and psychic’s point of view and experiences but the economy of witchcraft has somehow headed not to mysticism but to the economic dilemma of people; as in Africa when he found out first that the study of slave trading has been associated with by Beninois historian Felix Iroko in 1988 that people from West Africa, cowry shells are used as a currency during those times and people use it in trading for food and other merchandise. Cowry shells are a very important commodity in those locations, the historian also included that people are willing to kill others in exchange for a shell and slave trading and witchcraft has been used in exchange of cowries, but many historians has also proven that such conclusion is not a determinant and a disgrace to the people since cowries are easily obtained as a large scale imports (Hogendorn and Johnson) and this are just one of the arguments but there is not a fact of how witchcraft and their belief has been apparent.       The Anthropological researches of witchcraft from Europe and in Africa has also shown an evidence of use of power, authorities and domination can be easily obtained if there are sectors of lavishing alternatives in their belief of the unknown if they can make certain activities of faith in demons. As for leaders they can attract many followers who can be easily controlled, their members do believe to perform various acts including acquisition of wealth and belongings of their member in exchange for eternal life. They can easily discern such rituals, sexual orgies, fetishism and other forms of sacrifice for  their God as the Devil’s will and offerings of sexual pleasure that is perform in a deceitful acts by their leaders who really benefit from such activities of their lust.       Another example is the Marxian Moral Economy in pursuit for unambiguous analysis they have cited an examples about the peasant studies in general (Roseburry 1989) witchcraft and demonic act is not a simply parts of their culture and traditions but may have also been used to protect their land from abusive capitalist and business people who are willing to occupy and exploit their land in economic pursuit. According to Marxist researchers Witchcraft and Sorcery has been used to drive away foreign people from their land that are using their field for mining, excavation and degrading their natural resources. They implement witchcraft as a form of protection.       People who tried to destroy the forest, rivers and mountain are killed brutally by ethnic minorities that they used their belief of the demonic pursuit to accomplish and spread this acts so there will be fear. This Marxist example is once again heavily criticized by historian since there is neither evidence nor references of its trace and existence but only the materials that has been used, although historians also believe in the possibility that it can be true. The term moral economy and witchcraft still in progress and no matter how long the early history of tracing back from scientific point of view their existence and practices remains in questions.       Karl Polanyi (1957) Scott (1985) and many other economist and historians has substantiate a never ending debate that witchcraft and economy has still remains and the theory of utilitarianism is the reasons behind witchcraft that society can perform various acts for the collective measures, power and wealth provides more greed to people that they want more and more until they are satisfied to promote their greatest happiness. The witchcraft and sorcery are now performed through imperialistic approach and battle of economy it has replaced rituals and wizardry and the morality of people has been degraded nor destroyed by this battle.       They have the same findings that there must be a peasant revolts and witchcraft has been used but the arguments is still limited that there may also be a demand of autonomy from the minorities since people look for leaders and someone to follow, but inevitably it is also the exploitation from lack of education and economic depression that pushes them to perform such acts, politics and other discussions during those times may be able to lighten up such acts but then again the offspring of sabotage and war from minorities may arise upon research to protect their culture and traditions. There are so much to discuss from this course but the fact still remains that the moral economy and witchcraft has been long associated to destroy the morality endlessly until greed exist in the horrible minds of people in the society. Credit:ivythesis.typepad.com

THE MORAL ECONOMY OF WITCHCRAFT (AN ANALYSIS)

THE MORAL ECONOMY OF WITCHCRAFT (AN ANALYSIS) The Moral Economy of Witchcraft as written by Ralph A. Austen that you can read fro...

Unemployment

UNEMPLOYMENT   International Labor Organization defines unemployment as a condition where majority of the population do not have job or jobless. Similar to the situation of people are looking for jobs for more than four weeks, and still in vain.  The unemployment rate is a measure of the prevalence of unemployment and it is determined as a percentage by dividing the number of unemployed individuals by all individuals presently working.  In addition to that, different debates are occurring regarding the causes, consequences and solutions for unemployment. The classical, as well as the neoclassical and the Austrian School of Economics has been studying the market mechanisms in resolving unemployment; and it has been found out that the numerous causes of unemployment are unionization, high taxes imposed by the government to the minimum wage of the employees, sp as to the other working policies that discourage the hiring of employees in different industries. Furthermore, the Keynesian Economics focuses on the cyclical reasons of joblessness of many people. And, the potential interventions for the reduction of unemployment during recessions focus on recurrent supply shocks that suddenly reduce aggregate demand for goods and services and thus reduce demand for workers. Keynesian models highly recommend the government to intervene on the design and plan in increasing the demand for workers.   These can be done through financial stimuli, job creation, and expansionist monetary policies. On the other hand, Marxism theory centers on the relationships between the controlling owners and the subordinated proletariat whom the owners pit against one another in a constant struggle for jobs and higher wages. This condition of unemployment produces benefits by reducing wage costs for the owners. The causes and solutions to the unemployment require abolishing capitalism and shifting to socialism or communism according to the theory.  Moreover, there are still other types of unemployment models such as structural unemployment, which deals with the structural problems in the economy and natural inefficiencies in labor markets along with an equality between the supply and demand of laborers versus their skills and abilities. This model emphasizes the causes and solutions related to disruptive technologies and globalization. Continuous debates regarding the    voluntary decisions to work based on each individual’s evaluation of their own work and how that compares to current wage rates; plus the time and effort required in finding a job. The causes and solutions for frictional unemployment often address barriers to entry and wage rates.  Behavioral economists highlighted the individual differences in terms of decision making and often involve problems and solutions regarding efficiency and sticky compensation rates of the workers.  (http://en.wikipedia.org/wiki/Unemployment) Correspondingly, in the Philippines, the unemployment rate remains high, after few months of global economic crisis.  The Philippines has one of the highest unemployment level in Southeast Asia, standing at 6.8 percent as of October 2008, according to the country’s National Statistics Office.  The global economic crisis has dampened demand in Japan, the United States and Western Europe for the markets for Philippine export goods, services and migrant workers. The effect of recession always falls on the workers.  In the same manner, if there are no product demands, the tendency is to halt the hiring process of people.  The worst thing is, some companies are forced to lay off workers or close their companies, and these factors caused the increasing rate of unemployment rate in the country.  Business analysts noted that the most vulnerable workers are those in the export-oriented industries such as electronics and textile manufacturing. The continuous recession on the trading partners affected largely the export sector. This is the reason that the Philippine economic planners expect export business will fall significantly for the next few months, foremost for those working in the labor-intensive manufacturing companies. (http://www.philstar.com/Article.aspx?articleid=444878)   Additionally, there are numbers of companies that are being reported lying off workers or cutting working hours as the crisis reduced demand for Philippine exports.  The same situation in Luzon, Northern Philippines, Intel Corporation; the US semi conductor company in the Philippines that lay off 1,800 workers.  In the same way, Giardini Del Sole Inc. in Cebu; has also temporarily halted their operation that made 250 workers jobless in the midst of global financial crisis.  In view thereof, the Philippine Labor Department reported that there are 40,000 workers retrenched, as well as 33,000 workers are experiencing shorter working hours; while over 5,400 overseas Filipino workers were being displaced because of the global financial crisis.  Just as the lack of job opportunities in the Philippines led many unemployed people to look for employment in the foreign land. This fact alone led almost one million Filipino people to work overseas in order to give their families a decent living. (http://www.philstar.com/Article.aspx?articleid=444878) References: (http://en.wikipedia.org/wiki/Unemployment) (http://www.philstar.com/Article.aspx?articleid=444878)       Credit:ivythesis.typepad.com

Unemployment

UNEMPLOYMENT International Labor Organization defines unemployment as a condition where majority of the population do not have job ...

An Examination of the Impact of the Current Taxation System of Imported Goods for/on Small Business Owners in an Island in the Caribbea

THE IMPACT OF THE CURRENT TAXATION SYSTEM OF IMPORTED GOODS FOR SMALL BUSINESS OWNERS AND FARMERS IN THE CARIBBEAN ISLAND         Caribbean Island also known as West Indies are group of island located in Southeast of Gulf Mexico and Central America, North America and to the North of South America, this island consist of more than 7,000 islets. They have a rich culture and ethnicity, strong history of slavery and colonialism and they are also the center of socio- economic groups like the (CARICOM) or Caribbean Community through which there are also groups of small and medium enterprise development within the community.       Depending on their businesses but some of their small enterprises is affected largely by the current taxation system of imported goods and services within the island. With the influence of Organization of American States (OAS), World Trade Center (WTC) and United Nations (UN) with the Common External Tariffs (CET) together they have formed a tariff based trade agreement in their business practices where import products of all items are basically assessed and charged 5% to 20%. Duty exempt products are only limited and not charged, the duty products are only allowed to be distributed in duty free shopping and available only from limited locations. Vehicles that are duty exempt is still charged, there are also General Consumption Tax that are charged on various imported goods unless duty tax exempt.       According to some of small and medium enterprise that domination of the import market especially in duty exempt goods and products in the tourism sectors that is often seen in the hotel and restaurants are affecting their business through competition and many imported products in agricultural, imported food and textile to consumer goods are gaining popularity because of the tax is very accommodating among the Caribbean that makes their products weak and less valued.             The problem is not about the scarcity but price according to Dr. Chandra Madramootoo from Guyana Dean of the Faculty of Agriculture at Canada McGill University. He explained that the price of imported commodities including oil, fertilizer and gases additionally the transportation of such goods makes the prices of their agricultural products increase higher but imported foods and other products coming from other countries are somehow considerable in prices that make their products acceptable in the market.       He also added that this condition makes the Caribbean countries dependent in import products rather than their local products being consumed. The tourism is much more promoted than agriculture and this is why most of their small and medium enterprise could hardly grow. Before, Countries in the Caribbean including Haiti and St. Lucia is sufficient in rice and livestock but today this small business has been largely affected according to Dr. Madramootoo but he has not made much comment about imports. (http://acp-eucourier.info/Soul-searching-in-im.328.0.html).       Some small and medium enterprise suggested that the current taxation system should be reviewed in order to protect the farmers and small business producers should be re organized and assessed because imported commodities are a threat and taking over their products. The farming sectors are somehow neglected by the government because of this, large parts of the land of the Caribbean has been degraded to farming in fact in Haiti there are almost 50% lost of land for farming as of present times. The small scale enterprise and laborers are being lessened because of this.       In Jamaica the cost of sugar and banana goes up almost thrice as much this is because of lack of increase in productivity which has been the result of globalization and import products because of the high cost of technology in producing mass amount of their products and the scarcity of lands that they used. The banana industry in Jamaica is still under threats because of the litigation ruling of the World Trade Center (WTC). Small and Medium enterprise of banana and other products in Jamaica has largely decreased its production. They are calling the government for a long term survival strategy not in diversification of products but support in technology.                 The good news to the importers is that almost all goods are freely imported and accommodated in the Caribbean Islands as long as the products has current licenses it can be allowed, the only exemption of their imports  is the illegal forms of drugs, ammunition, explosives, deadly weapons. Unlicensed motor vehicle is also not allowed. Products who entered in the Caribbean whether import or export are subject to control and inspection, products are regulated by Fair Trading Commission (FTC) and other agencies depending on their countries there are regulatory bodies and law enforcement to act as standard quality controller. This is another system that small business wants to review; it is very easy for import products to enter in the Caribbean Island.                     Credit:ivythesis.typepad.com

An Examination of the Impact of the Current Taxation System of Imported Goods for/on Small Business Owners in an Island in the Caribbea

THE IMPACT OF THE CURRENT TAXATION SYSTEM OF IMPORTED GOODS FOR SMALL BUSINESS OWNERS AND FARMERS IN THE CARIBBEAN ISLAND Caribbe...

Assessment on the Causes of Beggars

ASSESSMENT ON THE CAUSES OF BEGGARS               Beggars are those who plead, beg, and beseech other people with the objective of obtaining things, most oftentimes material items, as food and money. Panhandling is its other term.             Many beggars when interviewed said that they prefer panhandling as a means for their survival rather than holding conventional jobs.  This implies that they treat begging as a job. Many said that they will not be able to hold regular jobs because of their various illnesses, mental and physical, and a lack of working skills. However, seventy percent of them said that they also desire, if given the chance, to get a steady job and to “get out of the street” They are usually seen or they cluster around terminals, markets, parks, and other public places. What they usually beg from passers-by are money, food, and sometimes clothing. There are also beggars who ask for liquors and cigarettes, and those who ask for a specific amount of money. Poverty may be said to be a matter of social and economic injustice. In the Philippines, based on the Family Income Expenditure Survey done in 1994, it was found out that the income generated by the rich families that belong to the top twenty percent are almost half of the accumulated family income of the nation.             The main cause of beggarship or poverty is poor or lack of education. Children of poor families are usually taken out of school or have never attended school to be able to work and help the family in their day-to-day needs.  Understandably, since they live on a hand-to-mouth subsistence, their priority is on a day-to-day survival rather than on education.  This further weakens their foundation and they get stuck in poverty as they become perennial unskilled laborers.             Another cause is poor health. Since they do not have the necessary financial and material resources to purchase adequate food, and healthcare is almost non-existent, their physical bodies tend to be unhealthy or sickly. They are, most of the times, malnourished.  Medically, a poorly nourished body lacks the determination to be productive. Along with their diminished drive to improve their lot, their drive and motivation to work also diminishes.              Their distorted view of the means to attain success further digs them into poverty. Majority of them think that having as many children as they could can save them from poverty. They treat their children as their capital investments for family progress. In so doing, they put their children to work on an early age, and later on in life since their children were not educated, the latter will also end up either underemployed or unemployed. Furthermore, with too many mouths to feed, whatever they can get out of their very meager earnings become scarcer and scarcer. Every added member denotes lesser and smaller portion of resources in the family including time for guidance  and nutrition. To wit, children’s health are poor, the odds for survival are lower, physical bodies are less developed, and if they go to school, do not perform well.             Considering the law of supply and demand, as unskilled workers grow in numbers, the demand for them goes down resulting to cheap labor and  vulnerability of the laborer during retrenchments.             On a national level, sometimes economic growth does not align itself with the growth in population. This might be due to international inflation or crisis or to mismanagement of government funds and economy.  With it follows inflation and increase in unemployment. As a consequence, investors will steer clear of any country that has an investment climate that is poor.             Poverty can also be brought about by abnormal or extreme weather conditions like El Nino or La Nina phenomenon.  The median income of the financially-deprived  in agriculture is more than eighty-four percent of the boundary set for poverty. In more than sixteen percent of families whose breadwinners are unemployed, more than fifteen percent belong to the poor sector.  An important consideration to reduce rural poverty is to provide measures for farmers to have an access to land. Especially in developing countries, control of vast majority of land is dependent on few persons. There is massive injustice and inequality to owning land.   Credit:ivythesis.typepad.com

Assessment on the Causes of Beggars

ASSESSMENT ON THE CAUSES OF BEGGARS Beggars are those who plead, beg, and beseech other people with the objective of obta...

Methodology on the Impact of Global Financial Crisis in Nigerian Economy

THE IMPACT OF GLOBAL FINANCIAL CRISIS IN NIGERIAN ECONOMY       The global financial crisis has taken the whole word, this is like an epidemic disturbance that discourages countries to invest from their business or to delay their plans in infrastructure, government project, basic necessity expenses and things such as these has become the effect of such crisis. There is also decline in tourism, import and export are weakening, private and public sectors geared to decrease their income expectedly and mostly Gross Domestic Products of most countries are unstable.       The global financial crisis has also been the result of most company shut down and retrenchment of employees; it is also causes desperate allocation of budget and deficit. Countries have also found a need to borrow money from World Bank and International Monetary Fund. The banking sector and currency trading has been highly affected entirely around the world and up to the present times the economy has been experiencing a sudden impact of such crisis. Some countries have declared recession because of this crisis some countries who suffered more from natural calamity including typhoon, tsunami and natural phenomenon has made it more severe to lose their momentum in international trade and mostly their stocks.            The truth is that the impact of global financial crisis in Nigeria is evident and highly foreseen in their economic situation this has become contagious in their socio-economic development and their ability in recovery. The crisis in Nigeria and downfall in their economy as shown in 2007 is way down low from previous years of their country’s Gross Domestic Product (GDP) their GDP in 2003 was 9.07% that surge way down to 6.22 in 2007 alone. But they have somehow recovered in their non oil products that they have a record high GDP of 3.44% from 2003 to 6.99% in 2007 but this is just a small part of their production.       The Manufacturing sectors shows a 3.1% decrease in production that has an estimated rate of 52.6% in 2007 has shown only 48.6% in 2008 and this has been because of lack of funds in export materials, low electrical power production, diesel export price imbalance increase and decrease while some companies even down sized their employees. In External trade and Financial outcome has been largely affected because of various factors including export diversification and direct investment, inflation rate and the government budget deficit.       One of the most disadvantages that has become a factor in low trading system is the price changes imbalance of crude oil that prevented some of their production companies to generate more that comprises largely of more or less 80%o their foreign trade and earning. The direct impact of external trade affected mainly is their banking sector who received largely foreign remittance during those fiscal years. Their overseas labor force from other countries from around the world shows a stable remittance last 2006 but shows a more reliable outcome last 2007 that continues to soar in the mid of 2008 but falls back on the last 2008.       One of the most highly affected areas of their government is their national budget last 2009 that has a deficit of 1.09 trillion that shows a very unsustainable remarks during those years that they will need to sort out some ideas to meet their needs by taxation and accrual extension from sales of some privatized companies, added to it is the unspent allocated budget from the previous years. Although there are confusion and distribution about graft and corruption that may occur that they need to make sure the distribution of funds will go through to its real cost. The National debt also increases during the year of 2006 to 2008 from .3 Million US dollar of 2006 rises up to .2 Million US dollar in 2007 up to .3 Million US dollars in 2008 that usually varies up to the present time because of crude oil price and production in International trade.       Their Agriculture sector is not much affected mostly that comprises a large scale in their industry in fact it even shows a remarkable improvement and all the agricultural sectors have been largely contributing to this potential of growth. This is in response to the countries low production that they have recovered and increased in this sector they have released 53,610 tons of grains by the month of March to May of 2008 and that was a good production compared to the previous years as recorded by National Strategic Grain Reserves (NSGR). The production of their livestock and aquatic foods also grows including their staple food like maize, yams, meat, fruits and vegetables of 2008 compared to the previous years.       In their present situation there are so much sectors that needs various consideration including household income or employment, social health and more before they can say that they can fully recovered but as long as they are committed to their economic condition to implement such great given plans and government policy or renewal perspective and nationwide development, they can highly survive and hopefully recovered from the crisis in their economy.          Credit:ivythesis.typepad.com

Methodology on the Impact of Global Financial Crisis in Nigerian Economy

THE IMPACT OF GLOBAL FINANCIAL CRISIS IN NIGERIAN ECONOMY The global financial crisis has taken the whole word, this is like an epid...

The relationship of economic development and banking sector of a government

ECONOMIC DEVELOPMENT AND BANKING SYSTEM       Banking system in every country plays a vital role in economic development for substantial reasons of funds and savings which is given by the banking system and government regulation and policy. Generally speaking the banking system in other country contributes to a large framework of success among various government projects through the use of lending, micro-financing, capital investment and government funding. The banking system generates not just employment but economic stability and International trade through the use of foreign exchange. The banking system approach may vary from country to country accordingly or as directed by their government.       In Malaysia the banking system plays an important role being an intermediary as well as performing short term and long term economic growth.  Their gross domestic product (GDP) is measured by domestic credit which benefits the small and medium industry through the help of public and private banking institutions. The economic growth through lending and borrowing shows that the banking system in this country has been a determinant contributor in nation building and development.  Therefore in most developing countries likes Malaysia these banking system ensure resource allocation for their economic growth.       In African countries like Nigeria, Kenya, Botswana and  Senegal the banks played a major role in sustainability and social rejuvenation providing finances and better access to financial services through achievement of  short term and long term goal as their common objectives. Most funds and resources are attributed directly to Small and Medium Enterprise and individuals practicing agricultural reform which is their common sources of income.          In Morocco the banking system is strong over the past 20 years; however the government restriction implication is to limit the relation of some chosen or favored industries. Until recently some other banks started to channel their credit distribution to tourism, agriculture and housing projects. The financial system will grow even stronger if specialized banks do not limit themselves from government regulatory body. Not much indication of economic progress has been shown in this country with the help of banking sector. The government limits the capability of the banks in lending industry, while the high implication deficit of tax indebted them heavily by the government sectors. Such tax rates can reduce returns of investment by the bank. Because of this limited fund utilization these banks have a very limited return over the country’s economic development.       Most of the time banking industry helps promote the economic stability of a country however governments control should not hamper its extreme privilege to dominate institution; the worst thing could happen is the misleading funds that cannot penetrate the market resource distribution that could results in heavily indebtedness to international banking industry like World Bank or International Monetary Fund (IMF). Since the role of Banking Industry is to uplift the economic standard of a country, Government should takes advantage of the following Banking System Objectives and its importance: 1.    Promoting Capital through the use of funds and loans -  Public, private and individual organization deposit their money in the bank so this bank in return can provide funding by distributing financial resources necessary to economic development. 2.    Agricultural Development- Banks can provide credits for individuals especially in agricultural production in rural areas of developing countries 3.    Influence economic activity through average interest rate 4.    Bank helps provide pricing stability and promote economic growth. 5.    Invest in new enterprise – People can borrow loan to invest in new enterprise to create their own new business and become independent if they have succeed. Most banks including Micro-financing organization do this. This provision helps many industries in many economic developing countries in Asia and in Africa. 6.    Promotion of International trade and Industry – With the help of foreign exchange, bonds, bank drafts, credit cards Virtual banking like ATM online payments Mobile payments and credit cards and other financial instrument this can help largely in developing worldwide economic growth. 7.    Helping small and medium industries through export integration among various institution and help them find partners in participating countries worldwide through information and development research.       Bank is the lifeblood of a business, as long as the blood is in circulation the life of the nation is sound and healthy.  If the blood is not supplied within the body the person may become useless. A country should take advantage of its function in order to establish a well rounded banking system to achieve economic stability.       Credit:ivythesis.typepad.com

The relationship of economic development and banking sector of a government

ECONOMIC DEVELOPMENT AND BANKING SYSTEM Banking system in every country plays a vital role in economic development for substantial r...