Tuesday, January 28, 2020

The Thoeries of Local Government in Nigeria Essay Example for Free

The Thoeries of Local Government in Nigeria Essay Rural development of the grassroots has been the concern of every responsible and responsive political system. This is because development and participation have continued to elude people of the grassroots. Development remains insignificant if it does not positively affect the lives of those in the periphery of decision making arrangement. The Nigerian state therefore created local government as the third tier of government whose objective is to ensure effective, measurable and efficient service delivery to the people. Local government is faced with various difficulties. The major concern of this paper is to dwell on these difficulties and illuminates the factors that are responsible for them. In achieving this, the paper relies on descriptive approach and unstructured interview. It concludes that problems of local government are multifarious in nature and the solutions for them should be adequate and practical in order to evolve viable and development-oriented third tier of government. Key words: grassroots, political system, autonomy, third tier, participation, development, uniformity, unity, culture, diversity, interference, national integration, performance, consciousness, concept, commitment, democracy, inefficiency, corruption, decentralisation. Introduction The expediency for the creation of local government anywhere in the world stems from the need to facilitate development at the grassroots. The importance of local government is a function of its ability to generate sense of belongingness, safety and satisfaction among its populace. All forms of government, regimes or political systems have so far ensured the attainment of this goal. Such strategy for ensuring national administrative development and political efficacy is found in the concept and practice of local government. Whatever is the mode of government, local government has been essentially regarded as the path to, and guarantor of, national integration, administration and development. In Nigeria’s socio-political context, with multiplicity of culture, diversity of languages and differentiated needs and means, the importance of such an organisation in fostering the needed national consciousness, unity and relative uniformity as well as preservation of peculiar diversities cannot be over-emphasised. Central to the creation of local government, however, is its ability to facilitate an avenue through which government and the people intermix, relate and more quickly than any other means resolve or dissolve issues that may have heated the system. Local government has been perceived as a panacea for the diverse problems of the diverse people with diverse culture. As important as this tier of government has been, there seems to be some impediments that have been infringing on its performance and functions in recent times. These impediments range from political but undue interference of the higher levels of government i. e. federal and state governments, bribery and corruption to embezzlement and gross inadequacy of well-trained and qualified personnel to mention a few. The Concept of Local Government The concept of local government involves a philosophical commitment to democratic participation in the governing process at the grassroots level. This implies legal and administrative decentralisation of authority, power and personnel by a higher level of government to a community with a will of its own, performing specific functions as within the wider national framework. A local government is a government at the grassroots level of administration â€Å"meant for meeting peculiar grassroots need of the people (Agagu, 1997:18). It is defined as â€Å"government by the popularly elected bodies charged with administrative and executive duties in matters concerning the inhabitants of a particular district or place (Appadorai, 1975:287). Looking at the existence, performance and relevance of local government, Laski (1982:411) opines that: we cannot realise the full benefit of democratic government unless we begin by the admission that all problems are not central problems, and that the result of problems not central in their incidence requires decision at the place, and by the person, where and whom the incidence is most deeply felt Local government can also be defined as that tier of government closest to the people, â€Å"which is vested with certain powers to exercise control over the affairs of people in its domain† (Lawal,2000:60). A local government is expected to play the role of promoting the democratic ideals of a society and co-ordinating development programme at the local level. It is also expected to serve as the basis of socio-economic development in the locality. Observations have shown that local government in Nigeria has not performed to expectation. Keen observers have since adduced various propositions for explaining the reasons why the system has recorded abysmal level of inefficiency and ineffectiveness vis-a-vis justification for its establishment. But before reading into the problems of local government, we shall first attempt to illuminate the historical background of local government in order to have adequate grasp of its future and achieve deeper understanding of salient issues raised in this paper. Brief Historical Background of Local government System in Nigeria Regardless of nomenclature, local government is a creation of British colonial rule in Nigeria. It has overtime experienced change in name, structure and composition. Between 1930s and 1940s, for instance, local government was known as chief-in-council and chief-and-council, where traditional rulers were given pride of place in the scheme of things. In the 1950s, election was introduced according to the British model in the western and eastern parts of the country with some measure of autonomy in personnel, financial and general administration (Nwabueze, 1982:20-21). It was on this premise that the rising tide of progress, growth and development experienced in the local governments in these areas was based. The pace of this development was more noticeable in the south than in the north. During this period, heterogeneity was the hallmark of local government as there was no uniformity in the system and the level of development was also remarkably different. The introduction of 1976 reforms by military administration of General Obasanjo brought about uniformity in the administrative structure of the system. The reforms introduced a multi-purpose single-tier local government system (Ajayi, 2000:70) The reforms also introduced population criterion under which a local government could be created. Consequently, a population of within 150,000 to 800,000 was considered feasible for a local government. This was done to avoid the creation of non-viable local council and for easy accessibility. There was provision for elective positions having the chairmen as executive head of local government with supervisory councillors constituting the cabinet. This was complemented by the bureaucrats and professionals, such as Doctors, Engineers, etc. , who were charged with the responsibility of implementing policies (1976 Guidelines). In 1991, a major landmark reform was introduced as the system had legislative arm. In addition, the Babangida administration increased the number of local government from 301 in 1976 to 453 in 1989 and 589 in 1991. the Abacha regime also increased the number to 774 local councils that we have today and the administrative structure also underwent some changes (Ajayi, 2000:71). In summary, it can be said that no public institution in Nigeria has been so subjected to frequent reforms than local government. Nearly every successive administration introduces one administrative change or the other. Apart from the celebrated 1976 reforms, state government officials have also introduced various manipulations. For instance, in Ekiti state, the tenure of elected local government officials was reduced to two years. While some retained it to reflect three years. In the southwest, except for Lagos, a caretaker committee was introduced in 2003 immediately after the general elections. In similar vein, in June 2007, some state governments dissolved their local councils and appointed caretaker committee to steer the affairs of the council prior the conduct of elections. It is germane to note here that these changes were not without resultant effects. Some of these changes met with social strife. For instance in 1997, the relocation of some local government headquarters was marked with large scale destruction of lives and property in Ondo, Osun, Delta, Rivers and Cross-River States (Omotosho, 1998:94-105). Specifically in Ondo State, the relocation of the then newly created Akoko South East local government headquarters from Oba Akoko to Isua Akoko was met with destruction of lives and property. In 1998, Abubakar administration introduced sole administrator system at the grassroots level before elections were conducted in December 1998 for the posts of chairmen and councillors. Also the dissolution of local councils in Ekiti State by the new administration of Governor Segun Oni in June 2007 generated furore between the local council’s chairmen and the governor. In essence, it has become almost fashionable in Nigeria for incumbent administration to introduce one change or the other in the institution. So far, local government system in Nigeria has not been stable and this leaves its future to remain bleak, uncertain and insecure. Problems of Local Governments in Nigeria Despite the justification for the establishment of local government and its inevitable importance to the people at the grassroots level, this tier of government seems not to have justified the reasons for which it was established. The questions that summarily come to one’s mind are: why has local government not lived up to its expectations? What are the causes of these seemingly conspicuous weaknesses? What are the challenges of the local government? And how can these weaknesses be corrected and the challenges met? The problems of local government are multifarious in nature and it is the concern of this paper to explain them in details. These problems include: Finance Despite the increase in the total amount of funds available to local government in Nigeria since early 1990s, its economic and financial profile is still very poor, relative to the development programme it is expected to carry out. This situation is not unconnected to the mismanagement and embezzlement of these funds by the local councils. Inadequacy of Skilled Workers Save for some few local councils in Lagos states and, perhaps, some southern states, local government generally has experienced and is still experiencing dearth of skilled, technical and professional staff like qualified engineers (of all types), medical doctors, accountants, statisticians, economists, lawyers, town planners, to mention a few. The facilitating factors for this include: Low image of local government in the mind of professionals who feel and think that there is no job satisfaction sufficient to keep them at that low level of public service.   Hopeless nature of the job attributable to, and arising from, low or no incentives for junior workers, no chances for creativity and innovation as well as perpetual delay in payment of salary.   Recently and more importantly, threat and fear of retrenchment of junior workers has derailed their psychological balance and affected their efficiency and output. This is fashionable in Ondo and Ekiti states where series of staff audit were being carried out just for the purpose of downsizing to reduce wage bill as a result of the demand for and payment of fifteen percent increase in salary. Manner of recruitment is questionable as it is based on subjectivity and consideration of sentiment. Employment was based on favouritism, nepotism, ethnic and political consideration and other primordial factors that replaced and displaced competence, qualification, experience and performance. Problems of Participation and Involvement For the past decades, more euphemistic phrases have since been employed to justify people’s participation at the grassroots. They include: â€Å"Development from Below†, â€Å"Bottom-up Approach to Development†, â€Å"Popular Participation†, Bringing Government Closer to the People† and other catchphrase to argue for people’s involvement the affairs that directly affect them (Lawal, 2000:66). From all indications and convictions, research and physical observations have shown that there has been more hue and cry than action. Local government prepares estimates for its revenue and expenditure without proper recourse to, and due consultation with, the people for whom the exercise is being carried out to know their needs, their problems and potentials. A number of factors are responsible for non-involvement of people in their own affairs. These include:   Loss of interests in the project that will not benefit the chairmen and their cohorts.   The age-long belief by the officials that people are ignorant, illiterate and unenlightened.   Lack of political will by the leadership to run an open administration due again to selfish interest. Poverty of socio-political philosophy for change. Misplaced Priority Hard-earned and limited resources accrued to and raised by local government are always mismanaged. Priorities are misplaced; projects are done not according to or as demanded by the people but regrettably in tune with the selfish end and aggrandisement of the political leadership in collaboration with the senior bureaucrats at the local government level of administration. Coupled with this is the greatest bane of development in the Nigerian public service in general and local government in particular which corruption is. Reports of probe panels at the three tiers of government have revealed the culpability of civil servants. Corruption in low and high places, corruption has been rampant among the senior civil bureaucrats to whom the public funds meant for developmental purposes are entrusted. Generally, wide-scale embezzlement by officials of the grassroots has made the needed development of the grassroots a tall dream and has rendered them financially incapable to discharge their constitutionally assigned responsibilities. General Indiscipline Indiscipline is rampantly perceived and well pronounced among the workers in third tier of government. The senior officers who travel to their families away from their offices on Friday return very late the following Monday or may decide to stay back till Tuesday; and the junior members of staff who directly or indirectly observe this more often than not are in the habit of playing truant with their jobs. Little or no commitment to duty has become a rule rather than an exception. Offices have been turned to marketplaces where officers hawk their goods freely. The rules that guide moral conduct and professional ethics seem to have, at worse, become cobweb that is so weak to tame the monstrous activities of the workers. Indiscriminate lustful desires are noticeable among the workers. The official’s relationship between super ordinates and subordinates has been stained. Strict instructions handed down from top echelon to the bottom are either not followed or treated with levity as a result of the immoral relationship between the boss and subordinates. Official duties are seen as an extension of private leisure. Laissez-faire attitude to work has arrested the efficiency of local government and has drastically affected its performance. Undue Interference The degree of external influence and intrusion in local government affairs by the higher levels of government is worrisome and needs re-evaluation. Situation where the state governor unconstitutionally dissolves the entire elected council’s officers without proper investigations on spurious allegations is not good for the future of local government administration in the country. Such external interference indeed subverts democratic process and undermines constitutional authority at the grassroots level. The crux of the matter is the ‘almighty’ power and misuse of it enjoyed by the state governments over local governments. Practically, and in true sense, local government in Nigeria lacks autonomous financial power. Local government is now considered as an extension of state’s ministry. The inherent nature of this problem has caused subservience, a situation where local government waits for the next directives from state government before the former could think of, let alone embarking on developmental projects. This has made local government an object of control and directives. The major challenge that local government faces is the political control the respective state governor has on the local government chairmen. This is as a result of the fact that state governor sponsors election of most, if not all, of the chairmen. They are handpicked by the state governor rather than being elected. It is a clear case of who pays the piper dictates the tune. This again creates a problem of diversion of local government funds for personal use of state governor. In Ondo state, for instance, there is this unholy alliance between state government and local councils in the state, where the state government constitutes Joint Action Committee, tagged ‘JAC’. Federal allocations to local government are first deposited into a particular ad hoc account before calling for the committee meeting. This in a way paves the way for the state government to plan for the local government and release the money in instalments. The motive behind this is to divert the money to another thing entirely which does not have impact on the lives of the rural dwellers but that will be beneficial to the state governor. Another thing is the interest that the money will generate in the bank. The implication of this is that few of the local government chairmen who have genuine intentions and are ready to perform are being discouraged. This again assigns more power and control to the state governor. The overall effect of this is the negative impact it has on the people of the grassroots as they are getting more and more alienated from developments. Also illustrative and instructive is the arrest and prosecution by the Economic and Financial Crimes Commission (EFCC) of the former Enugu State Governor, Chimaroke Nnamani, on the allegation of diverting local governments’ funds in the state. This shows the level of influence and control that state governors have over local governments in their respective states. This undue interference has incapacitated local government from effective functioning on the one hand, and alienated grassroots people from enjoying social services delivery expected of local government on the other.

Monday, January 20, 2020

The Next Generations Form of Discrimination Essay -- Argumentative Pe

The Next Generation's Form of Discrimination Education plays a key role in the development of one’s character and future achievements. The importance of education has elevated in numerous ways over time. The higher an education a person receives is expected to give an individual a better occupation and therefore result in more earned money by that individual. Human desires have led to the great want to achieve the best education in order to ensure that more then just the basic needs and wants are met by that individual, whether it is for themselves or for those that are dependent upon them. Hence the best education one can receive will contribute to the fulfillment of their desires and wants. In recent years the internet has played quite a major part in education. The internet has become almost more significant in the classroom then a piece of paper and a pencil, to a class. It has become more then just a resourceful tool for finding information it has become a means of a must have item. Such dependence is very detriment al to the educational process for although the internet seems to be everywhere, there are still many people, willing to learn, who lack such a resource. Amongst this vast nation of so many different types of people from all different backgrounds and cultures, social status is a strong clarification in society. The rate of impoverished families is so excessive in some areas, especially the south, and has become increasingly noticeable in public schooling. The situation has become enhanced as many students lack easy access to the internet. Such easy access includes home use or close location providing internet services. Many students prove that this situation is a constant battle. I was raised in a predominan... ... on the growth of such skills, both socially and mentally. Viruses and other setbacks to the internet process are also very damaging. Viruses on the internet are very destructive not only in a financial sense but can also affect users work already saved or new. It took 2.6 billion dollars to clean up the Code Red Virus that infected the internet. (Computer World) The internet is an excellent way to retrieve material but should always be used as a resource and not a necessity. The basis of a class should be internet free and should be used as a tool and guide to enhance the education process rather than take away from some students learning experience. It is great to be computer literate to learn in different ways and attain more information but if education becomes dependent on the internet what would happen if the internet was permanently down or greatly infected?

Sunday, January 12, 2020

Integrated research essay Essay

Introduction Families in the twenty first century go through very many challenges. There are so many issues that are affecting this unit. Divorce is one of the factors that are really affecting this unit. Divorce can be defined as dissolution of the marriage when the partners are still alive. Since the twentieth century, there has been an increase in divorce rates in the society. This has been very prevalent in the developed countries rather than in the developing ones. Such countries include the South Korea, Canada, United Kingdom and the United States. Single parent families have become widely accepted. This has affected how people view divorce and its rate. There are various reasons that people give to explain why they opt for divorce. Other people site unfaithfulness or financial issues as a reason for divorce. A law court has to certify the divorce and also determine the terms therein. Such a thing includes issues after and before the divorce is carried out. Many spouses usually fail to agree on these terms. Such conflicts need to be solved amicably though this is hard. There are times when couples divorce just because they are incompatible. Some spouses claim to have differences that are irreconcilable that lead to divorce. Research shows that Muslims show minimal divorce rates compared to other religions. Divorce is not something that has started recently. It began very long time ago. It was even allowed by the Athenians though it was not common in the Roman culture. Divorce in general posses a challenge to many families. When a family goes through divorce, it experiences many things. There are issues dealing with allocation of assets. Matters dealing with responsibilities and taking care of children become a hard nut to crack for the parties. Relation of divorce to my own family of origin story In my family of origin, there is a story that is quite related to divorce. There is a story that goes- once upon a time there lived a man called Flamz. The man had a wife called Staiz. The two stayed together for some time but later on divorced. They had four daughters from the marriage. Staiz left the children with Flamz. Later own the daughters also got married and also divorced one after another. This story was used to explain why divorce is so common in my family. My parents are divorced and I have witnessed my two brothers also divorce. So divorce as a topic is quite related to my family of origin stories. This shows that family background can really influence a persons’ decision on divorce. Loss When a family goes through divorce, the partners automatically experience loss. There are always feelings of grief. When this loss of a loved one through divorce occurs, the parties are mostly not prepared to deal with it. This is because in most occasions it is a new thing. It is something that they have never gone through in life. When people get married, they always expect a bright future. When divorce occurs it is really traumatic even if the parties had gone through it before. The feelings of grief have to be there and the parties should not just feel normal in relation to this loss. This loss of a husband or a wife normally brings memories to the spouses that are bitter- sweet. It is normal for a partner to go through the grief feeling and this helps him or her to come back to normal. There are times when this loss makes people to be so depressed. It is healthy for such people to seek help from counselors if the depression takes a long time due to loss of a partner. This loss can make a person to be drained physically. Some people lack appetite and fail to control their emotions. Divorce can make a person experience grief due to the loss. After the people divorcing most of them even lack interest in sex, they can feel very lonely and even lack interest in doing any work. The individuals just criticize themselves. They ponder over what they did or did not do. These people need to accept that the divorce has occurred. This helps them come to a reality of the loss through divorce. The people should allow themselves to go through the pain of the loss. It cannot be avoided. Partners need to learn to function without the other person. The first reaction to loss in divorce is denial. People just think that the other person is just having some issues and he or she will probably come back to his or her senses. A person just imagines that the other party will just come back. People assume that the other party is going through a mid life crisis. The next point is where the earlier issues that existed in marriage begin to surface. There are anger feelings on how one was treated. This shows that the person is going through a healing process. The other stage is bargaining and a person feels like promising that he or she will improve or change in the areas that they were short. There is then depression and acceptance. Identity Many people normally wonder whether they can regain their identity after going through a divorce. Sometimes the marriage terminates when some partners have gone through so much emotional abuse. Other people even go through physical abuse. In the midst of this emotional turmoil, many people fail to find their real identity. Many people who go through divorce feel that they are just not themselves. They feel that they have just lost their sanity. Many people at this time of stress reach out to friends and relatives to help them come back to themselves. They just feel useless and not themselves. Most ladies who go through divorce feel that they have lost their respectable identity in the society. They even neglect their personal hygiene and good grooming. Such partners always need to come back to themselves very fast because more often than not they have children and other responsibilities to take care of. People lose their vigor and the strength to go on in life or to do anything. The parties just have to pull themselves back to normal. Many men and women who go through divorce feel they have lost themselves completely. Psychologists always help such people to come back to their self esteem and to regain their self worth.

Saturday, January 4, 2020

What is the Verb Conjugation for Admettre

When you need to say to admit in French, you will use the verb  admettre. Conjugating this verb is a little tricky, but there is a pattern as you will see in this lesson. Conjugating the French Verb  Admettre Just as we add an -ed or -ing ending to verbs in English, we need to conjugate French verbs. It is a little more difficult and complex, but there are patterns involved. While  admettre  is an  irregular verb, there is a pattern here. In fact, all  French verbs ending in  -mettre  are conjugated in the same way. To find the correct conjugation, simply match the subject pronoun to the tense you need for the sentence. For instance, I admit is jadmets and we will admit is nous admettrons. The Present Participle of  Admettre You can use the  present participle  of admettre as a verb and it also works as an adjective, gerund, or noun in some circumstances. The present participle is formed by dropping the -re and adding -ant  to get  admettant. Using the Past Participle for Passà © Composà © Rather than use the imperfect for past tense, you can use the  passà © composà ©. To do this, you need to conjugate the  auxiliary verb  avoir  and use the  past participle  of admis. To complete the passà © composà ©, simply put the elements together. For instance, I admitted is jai admis and she admitted is elle a admis. More  Admettre  Conjugations In the beginning, you should concentrate on the present, future, and passà © composà © forms. However, there may be instances when you need to use one of the following. While the passà © simple and imperfect subjunctive are used primarily in formal French writing, you may need the other two. The subjunctive is helpful when the verb action is subjective or questionable. The conditional is similar, though its used to imply that something may or may not happen. The imperative may be particularly helpful with  admettre  because its used for short exclamations. When using it you can skip the pronoun. Rather than nous admettons, you can simplify it to admettons.

Friday, December 27, 2019

The Importance Of Family Respect For Elders,...

The importance of family (respect for elders, interconnectedness, responsibilities to other family members). 1. I was taught to believe that always have respect for people who is older than you like your cousin and listen to them when they tell you what to do. 2. Who taught me were my mom and my grandmother. Also my aunt and uncle 3. How they taught me is whenever I go to my family party, my aunt and uncle would say listen to my oldest cousin of them all and ask the oldest cousin to look after the younger one. When My oldest cousin would make the rule for the game and when she see something she doesn’t like you would tell us to not do it and when we don’t listen. We would get in deeper trouble for not listening to her then to what we are doing. 4. When I was a young child I taught this because my grandmother and mom would always remind me when I get out of the car telling me to respect the people who is older especially your oldest cousin. 5. I was taught this when I went to Khmer temple, and to our family party. 6. I think the reason we suppose to teach us this is because the older you are the more you have experiences with things and know how to handles things more efficient. The older you are also the wiser you’ll will be. The role of education (the role of education in defining success, the obligation to become educated, education as a way of earning a living) 1. What i was taught about my education is that in order to become successful in life you have to goShow MoreRelatedEffects Of The Colonization Of Indigenous People860 Words   |  4 Pagesan impact on families as it placed many thousands of children in institutions, the loss of land and culture for many Aboriginal groups who, until this day, experience traumatic memories. Aboriginal nations were divided into clans, large extended families, often as small as 30 people. In contemporary Australia, many Aboriginal and Torres Strait Islanders still claim their descent from a particular clan, tribe or language group. These cultural values focussed on their interconnectedness, connectionsRead MoreAn Indigenous understanding of Reciprocity3568 Words   |  15 Pagesï » ¿Reciprocity is an underlying principle expressed throughout Aboriginal societies. Outline and illustrate the importance of this fundamental concept in the economic, social, spiritual and political spheres of Aboriginal life (refer to reciprocity in the index to Edwards 2005). The word ‘reciprocity’1 conjures up a feel good image of ‘caring and sharing’ (Schwab 1995: 8). However according to Peterson (1993: 861) there is a darker more sinister side to this word when applied to Indigenous AustraliansRead MoreGlobalization Is The Coming Together Of All Cultures From The World And The Sharing Of Knowledge3010 Words   |  13 Pagesand that everyone should benefit from it, but that it not always the case. For as many positive connotations globalization has, it also has just as many, if not more, negative connotations. Better put, globalization â€Å"includes increased human interconnectedness facilitated by new information technologies and huge volumes of trade, capital, people, culture flowing across borders, and an ever more integrated economy† (Powell 2014). It also gave way for countries like China to open the market to sweatshopRead MoreEssay about Holey Soles8271 Words   |  34 Pagesmarket through this brand recogn ition, which Holey Soles had not yet achieved. Holey Soles needs strategic focus. The management team that has been there since the company was formed when it was much smaller, is still fulfilling their original responsibilities and may be incapable of providing the necessary leadership. The growth requires Holey Soles to streamline their operational procedures and create efficiencies. This task falls on the management team and its ability to lead the company into theRead MoreMarriage Guidance: Summary Notes19959 Words   |  80 Pagesencompasses PA, ME and PI → People rely mostly on life experiences to guide them to their own unique way of demonstrating love. → Eric Fromm â€Å"love is active concern for the life and growth of the person we love† → Love is deep, unselfish, caring, deep respect Hauck’s basic principles about love †¢ It is not just the person you love, but rather what he/she does for you - actions speak louder than verbal promises of love and devotion. †¢ Just like any business relationship, you have to invest in the relationshipRead MoreContemporary Issues in Management Accounting211377 Words   |  846 Pagesconcerns, and issues in management accounting. The book consists of eighteen chapters written by distinguished scholars in the Weld. The topic areas covered in some chapters reXect established management accounting topics such as budgeting and responsibility accounting, contract theory analysis, contingency frameworks, performance measurement systems, and strategic cost management, which are considered from the perspective of changing concerns facing modern organizations and present-day managementRead MoreStrategic Marketing Management337596 Words   |  1351 PagesOrganizational issues 16.11 17 Summary 713 721 723 725 725 726 728 734 747 757 762 765 767 767 767 798 809 811 813 853 Management control – 1 17.1 Learning objectives 17.2 Introduction to control 17.3 Control defined 17.4 Basic control concepts 17.5 Responsibility accounting 17.6 Approaches to control 17.7 Some behavioural factors 17.8 Summary 18 Management control – 2 18.1 Learning objectives 18.2 Introduction 18.3 Controls 18.4 Taking corrective action 18.5 Management reports 18.6 Summary BibliographyRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesindividuals locally had the potential to be much more intensely connected by new communications technologies, state-sponsored programs to achieve autarky, a global epidemic of ethnic strife, uncontrolled urban growth, and the dissolution of extended family ties in many societies divided nations and communities and isolated individuals to an extent unparalleled in recorded human history. For teachers, in particular, the challenge of weaving together in meaningful ways the seemingly disparate strands

Wednesday, December 18, 2019

The Theory Of Behavioral Finance - 2911 Words

1. Introduction Efficient market hypothesis had been a topic of significant interest to the academicians, practitioners and the corporate executives for a long period. Under Eugene Fama’s(1965) survey, it is reflected that there is a turning point of the modern finance by efficient market hypothesis. However, there had been a shift in the focus to the theory of behavioral finance (Shiller, 2003) recently. Behavioral finance is the financial structure which supplements various parts of finance (Gallagher, 2003). It is the module which supports and displays the behavior of the investment managers and assists in the overall process of management. Therefore, behavioral finance is a unique art which is required to be selected in order to understand the outcomes of interactions between the investment managers and the corporates. Given this background, this essay examines how the behavioral finance has challenged the efficient market hypothesis and the implications of behavioral finance for investme nt managers. 2. Definition and concept of efficient market hypothesis According to Eugene Fama’s (1970), with the rise in the information, there is rapid spreading of the information which is immediately incorporated in the security prices. This is called the efficient market hypothesis and it is associated with â€Å"random walk† theory. The random walk theory which suggests the randomness of changes in a series of price forms the basis of efficient market hypothesis. Thus, theShow MoreRelatedIn the modern finance theory , behavioral finance is a new paradigm , which seeks to appreciate and1000 Words   |  4 PagesIn the modern finance theory , behavioral finance is a new paradigm , which seeks to appreciate and expect systematic financial market influence of psychological decision making ( Olsen R A, 1998). In the recent studies irrationality in the decision making was revealed , based on certain cognitive limitations. The present chapter is divided into two aspects According to traditional models in finance and economics, human beings are rational while taking their decision. However the recent studies explainRead MoreTheory Of Behavioral Finance : An Investor Sentiment Index And Quantify Its Impact On Stock Prices Essay1111 Words   |  5 Pagesdividends as efficient market model says, but also by factors such as the investor sentiment. Baker Wurgler (2007) construct an investor sentiment index and quantify its impact on stock prices. Despite their important contribution to the theory of behavioral finance, their conclusions are subject to debate. The main objective of this article is to summarize, evaluate, and offer a critical view on the paper of Baker Wurgler (2007). The first section presents a review of article, the second discussesRead MoreBehavioral Finance And Its Effects On The Economy1180 Words   |  5 PagesIntroduction Throughout the history of finance mankind has devised various ways to predict future costs, price changes, changes in supply and demand, and changes to bond and stock prices. We’ve created sophisticated models and formulas to help us make financial decisions. Although, we can’t always prepare for the inevitable depression, inflation, stock bubble bursts, long or short term shocks to the economy, and changes in taste, we can try our best to protect ourselves financially from our own irrationalRead MoreA Survey of Behavioral Finance Summary1332 Words   |  6 PagesA Survey of Behavioral Finance Nicholas Barberis and Richard Thaler In this handbook, Barberis and Thaler define the differences between traditional finance and behavioral finance. Traditional finance is rational.Rationality means two things; correct Bayesian Updating and choises consistent with expected utility. On the other hand behavioral finance assumes that market is not fully rational and analyzes the facts when the some of the princibles are loosen up. ThisRead MoreA Survey of Behavioral Finance Summary1322 Words   |  6 PagesA Survey of Behavioral Finance Nicholas Barberis and Richard Thaler In this handbook, Barberis and Thaler define the differences between traditional finance and behavioral finance. Traditional finance is rational.Rationality means two things; correct Bayesian Updating and choises consistent with expected utility. On the other hand behavioral finance assumes that market is not fully rational and analyzes the facts when the some of the princibles are loosen up. This essayRead MoreCapital Budgeting II And Efficient Markets1418 Words   |  6 PagesCapital Budgeting II Efficient Markets I The theory of market efficiency states that no arbitrage exists, prices fully reflect all available information, prices follow random walks and that active management does not add any value to a portfolio. The theories of risk adjustment, cost of capital and the capital asset pricing model rely on people being rational. Unless we have rational behavior, the assumptions of the EMH are not sustainable. While the wisdom and behavior of the market crowds seemRead MoreStudy Stock Market Trends : Ron Insana. Investments Don t Always Work As Planned On Wall Street1487 Words   |  6 PagesInvestors need to recognize the historical significance of a shift in the fundamental economic environment, as bubbles will continue to occur. The question is what will be the impact on the subsequent asset class that experiences bubble mania. Behavioral Finance and the psychology of investing – Greg La Blanc How can a bubble ever occur? For markets to be efficient, the only element that has to be true is that prices consistently reflect the information available at that time. However, bubbles areRead MoreThe Impact Of Psychology On Investment Decisions1232 Words   |  5 Pagesirregularity observed in financial markets in recent times has yet again brought to question the practical application of traditional financial theory and the Efficient Market Hypothesis. There is therefore the need to put this base of accepted finance theory under scrutiny. The foundation of one of the broadly examined problems with traditional financial theory is the effect of psychological influences on individuals’ behavior towards investment. According to Slovic (1972), Daniel, Hirshleifer ,SubrahmanyamRead MoreThe Mortgage Crisis And Stock Market Decline Essay1128 Words   |  5 Pagesis to evaluate the methods in which behavioral finance can be used to elucidate the mortgage crisis and stock market decline. There will be personages’ retorts, specifically investors in the stock market, evidential psychological biases, and a clarification of behavioral finance. In conclusion will be how I can use behavioral finance to overcome some of the psychological biases that ensue. The mortgage crisis in relation to behavioral finance Behavioral finance definitely can be a topic of an impactRead MoreFinance; The Efficient-Market Hypothesis1826 Words   |  7 PagesIntroduction Efficient-market hypothesis In finance, the joint hypothesis trouble, or the efficient-market hypothesis, states that financial markets are informational competent . Besides this, one cannot constantly achieve returns beyond average market income on a risk-adjusted basis, with the information obtainable at the moment the investment is complete. There are three main hypothesis versions: strong, semi-strong, and weak. The EMH weak form claims that rates on traded assets (e.g.,

Tuesday, December 10, 2019

Worlds Together Worlds Apart Chapter 5 Outline free essay sample

In Eastern Zhou China, large territorial states and had formulas for ordering human behavior In Greece and the Levant, dynamic city-states and new ideas about good governance East and South Asia, Caribbean coast of Mexico, coasts of Mediterranean have sacred categories and religious experiences Second generation societies- building on predecessors and representing departure from ancient civilization Thinkers in Greece and Ganges river valley question society values and beliefs Eastern Zhou China Political degeneration leads to political and intellectual innovation Emergence of Eastern Zhou dynasty = Spring and Autumn period; ends with Warring states period 1. The Spring and Autumn Period Regional states have power over Zhou central government Purified iron emerges and spreads cheap power to local authorities Lord of the Wu state begins the Grand Canal connecting Yellow with Yangzi 2. The Warring States Period  Wars and shifting political alliances involved unprecedented scale of military mobilization and resources Qin state replaced Zhou in 221 BCE (terracotta warriors buried with first emperor) Reformed coalitions to maintain balance of power; impersonal legal codes enhanced these (punishment based on crime) 3. We will write a custom essay sample on Worlds Together Worlds Apart Chapter 5 Outline or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page New Ideas and the â€Å"Hundred Masters† Confucius was most prominent teacher; others either expanded on his ideas or opposed them (Hundred Schools of Thought) A. Confucius (551 – 479 BCE) The Analects- teachings of Confucius according to his followers; had extraordinary influence Moral framework stressed correct performance of ritual, family responsibility, and perfection of moral character (to become a â€Å"superior man†) Classified people by education more than birth B. Mo Di Mohism- each man obligated to all others; promoted social order, material benefits for all, population growth Opposed conquest as it is waste of resources but recognized need for defense from marauders â€Å"Axial age† 2nd Gen societies Grand Canal Qin Confucius Mozi (Mohism) C. Laozi and Zhuangzi Daoism- scorned rituals and social hierarchy; best way to live was to follow natural order (dao- the Way) Ruler is to interfere as little as possible with the natural processes of change Wuwei- â€Å"doing nothing†, how one should rule D. Xunzi and Han Fei Legalism or Statism- men and women were innately bad; required moral education and authoritarian control Ruler should have harsh, unbending laws 4. Scholars and the State Scholars served rulers to make better state Qin state achieved order through Legal approach but borrowed from other philosophies 5. Innovations in State Administration Officials drawn from shi (previously knights, now bureaucrats); called gentlemen or superior men Shang Yang- reformed Qin domain by dividing into administrative districts and appointing people to take care of each Harsh penal code stressed collective responsibilities 6. Innovations in Warfare Registered rural population for military recruitment Massive infantries of peasants using iron laces fought to the death; increasingly sophisticated warfare Siege warfare- elite troops used iron armor and crossbows, siege ladders used to scale urban walls 7. Economic, Social, and Cultural Changes Environmental problems- deforestation, erosion of fields, extinction of animals; many migrated south Large population put stress of food sources; standard of living began to lower for commoners; many migrated Crop rotation and iron plows increased productivity; in the short term, food surplus New economic method- peasants had right to land in exchange for taxes and military service Gender relations- sexes become more separated and behavior constrained by moral and legal sanctions; women limited The New Worlds of South Asia Violence and warfare provided setting for vibrant culture and intellectual insight 1. The Rise of New Polities Vedic people moved into Ganges plain, a monsoon region 1000-600 BCE small territorial states constantly feuding Some states had hereditary monarchy; others had oligarchies (clique of privileged rulers) 2. Expansion of the Caste System Economy centered on farming by extended families; Water buffalo and complex irrigation required Labor specialization created a more complex caste system Became harder and harder to move up ranks in system Daoism Wuwei Legalism shi Shang Yang Siege warfare Oligarchies 3. New Cities and an Expanding Economy Shravasti and Rajagriha thrived as artisanal centers; Taxila traded with Afghanistan and Iran A. Life in the New Cities Development haphazard, but civic authorities emphasized sanitation Raw goods imported into cities and manufactured goods exported to villages Economic guilds regulated competition, prices, wages; prevented monopolization Bankers and traders created coins of standardized weight B. Unequal Opportunities Urban life was far more uncertain; it included a new social class, the â€Å"untouchables† that did the dirty work 4. Brahmans, Their Challengers, and New Beliefs In cities, castes were intermingling and writing gave knowledge to the more lowly peoples New Brahman historical accounts claimed royal power had divine origin and priests were necessary People began to resent Brahmans and challenged their right for the top of the system A. Dissident Thinkers Refused to recognize Vedic gods; had practical, material beliefs Buddha and Mahavira came from middle Ganges where Brahman caste was nonexistent (recorded in Upanishads) B. Mahavira and Jainism  Vardhamana Mahivira- spent years as ascetic (one who rejects material possessions and pleasures) Jainism- Universe obeys its own rules and is unaffected by supernatural; purpose of life to purify soul (by being ascetic) and attain permanent bliss Doctrine of ahimsa (â€Å"no hurt†) limited religion to city dwellers C. Buddha and Buddhism Siddhartha Gautama- Buddha or Enlightened One; denied Brahmanic ritual, sacrifice, and cosmology (understanding the order of the universe). Four Truths- life is full of suffering all sufferings are caused by desire only way to rise above suffering is to renounce desire  only by following Noble Eightfold Path can individuals rid themselves of desire and reach nirvana This system gives hope that one can reach eternal happiness in this life Delivered ideas in vernacular Sanskrit; follower called sanghu (gathering) Karma determines the suffering and happiness of the next life Sided with the oligarchs; biggest followers were urban merchants Though none of the systems extinguished the caste system, they provided a new option to carry out activities of daily life Untouchables Jainism ahisma Siddhartha Cosmology Four Truths Nirvana Sanghu  Common Cultures in the Americas Most information we have is from archeological remains. The Chavin in the Andes Common belief system around 1400 BCE United more by culture and faith than any political structure Made elaborate stone carvings, cotton textiles, and metal goods by 900 BCE Trade and travel were limited by geography, lack of horses, and lack of central organization Chavin de Huantar- central temple complex; priests communicated with the supernatural through drugs Cults revered powerful wild animals (jaguars, serpents); â€Å"Smiling God† worshipped up to 400 BCE 2. The Olmecs in Mesoamerica Emerged around 1500 BCE; first generation society that contemplated profound questions Olmecs- â€Å"inhabitants in the land of rubber†; a unified culture of decentralized villages Cities as Sacred Centers Cities were devotional centers that spread architecture and art Shamans- certain humans that could transform into beasts and commune with the supernatural Olmec Art as Ideology  Craftsmen made portable objects and miniature figures that could help spread and unify belief system â€Å"Young Lord†- diplomatic artifact, conveys power and influence, shows shamanic characteristics and represents the three realms: supernatural, terrestrial, and the underworld Cities as Athletic Hubs Ball courts had room for fans; ritual ball games were integral in devotional culture Human sacrifice possibly linked to outcome of ball games Man, Nature, and Time Priests charted celestial movements, devised complex calendars, and other aspects of nature to learn about gods A World of Social Distinctions Tiers of social ranking- priests, chieftains, wealthy ruling families, merchants, everyone else The Loss of Centers Breakdown of culture mysterious and abrupt Many hubs were abandoned not destroyed; hinterlands remained highly productive Probably the belief system and ruler-subject bonds fell apart and the hierarchies collapsed Common Cultures in Sub-Saharan Africa As the Sahara became even larger, certain places became hubs for population, especially the Nile Valley 1. The Four Zones 1. Sahara- oases supported pastoral people 2. Sahel- south of Sahara; no large cities until first millennium BCE (Timbuktu) Chavin Olmecs Shamans 3. Sudanic savanna- high grasslands; free from the lethal tsetse fly; grew millet and sorghum 4. Western and central African rainforests- small-scale societies; grew yams and root crops Labor valued over land ownership. Between Sudanic Africa and Pharaonic Egypt  Kush- first important Nubian state; flourished 1700-1500 BCE; capital was Kerma Egypt’s source of ivory, gold, and slaves Meroe kingdom- 400-300 BCE; adapted many Egyptian traditions; struggled to keep identity from Egypt 3. West African Kingdoms Trading centers in Senegal River basin and among Mande people around Niger river Nok culture- at Tarunga, early iron smelting occurred in 600 BCE; bypassed stone and copper Nok famous for terra-cotta figurines that bear resemblance to modern inhabitants; were cult altarpieces Warring Ideas in the Mediterranean World. Many changes resulted in new thinking and creation of new political and economic institutions 1. New Thinking and New Societies at the Margins Seaborne peoples- Phoenicians, Greeks, Cretans, Cypriots, Lydians, Etruscans Had ideas about virtues of self-sufficient cities with more widely shared power; ideas of money and alphabet spread rapidly 2. A New World of City-States New creation- city-states were governed by their citizens Self-Government and Democracy First found in Carthage but associated with Greeks Different methods- popularly approved politician ruled (tyrannis) small number of powerful citizens ruled (oligoi) all free adult males involved (demokratia) Families as Foundational Units Aristotle- the household embodied the power relationships found in cities Women were supposed to stay within private world of family; those that went out were deemed immoral Competition and Armed War City states were freewheeling and competitive places Organized sporting events became very popular. Constant warfare inspired innovation like phalanx (formation of troops) Peloponnesian War- conflict between Athens and Sparta; recorded by Thucydides War reduced resources of all city-states and destroyed basic humanity of citizens 3. Economic Innovations and Population Movement Alphabet, coins, and central marketplace brought about trade and wealth Kush Menroe Nok Democracy Greek Women Peloponnesian war Free Markets and Money-Based Economies By end of fifth century BCE, Greeks issued variety of coins, as did Phoenicians, Etruscans, and Persians Agora- central open marketplace. Trade and Colonization Eastern Mediterranean groups created city-states in west Mediterranean and the Black Sea Culture developed rapidly as trade spread ideas all over Mediterranean coastal communities Chattel Slavery Chattel slavery- treating men, women, and children as objects of commerce Very profitable trade as it allowed for cheap manual and technical labor Encounters with Frontier Communities Tribes of the north were attracted to manufactured goods and preferred obtaining by force than trade Called barbarians but not radically different from original Greeks and Phoenicians 4. New Ideas Ideas were free to arise, circulate, and clash; no final authority to approve and force acceptance of one argument Naturalistic Science and Realistic Art Artists portrayed things as they appeared to the human eye The unadorned human figure became centerpiece of Greek art New Thinking and Greek Philosophers Miletus and Ephesus did not accept traditional explanations for the universe Believed in four basic elements- earth, fire, air, water Democritus suggested atoms, Pythagorean studied numbers, Xenophanes doubted existence of gods Philosophia- â€Å"love of wisdom†- debated over nature of cosmos, humans place in society, and the ideal state Socrates- stressed honor and integrity Plato- presented Socrates ideas, envisioned philosopher-king ruler; believed everything reflection of the â€Å"real† thing Aristotle- studying the facts helps achieve better understanding Conclusion Influential thinkers came to the fore with radically new perspectives New ideas had continuing impacts of societies that followed Agora Chattel slavery Barbarians Philosophy.