A Brutal Choice Essay Example for Free

A Brutal Choice Essay Dont leave me here to die Do you agree that Cathy ODowd and here fellow mountaineers had no choice but to leave Fran to die? In the newspaper article Cathy ODowd clearly tries to make the reader believe that she did the right thing. She identifies this in the sub heading she faced a brutal choice: to risk her own life in a doomed rescue, noticeably the word doomed shows there was a severe risk of danger in any rescue attempt. I believe that in a way writing this article has allowed Cathy ODowd to exorcise some of her guilt, Cathy wants to explain her experience in full and get the reader to empathise with her. Finally, it may also be possible that Cathy wants to show the story in a feminine perspective. The article does undoubtedly give many good reasons why not to attempt to save Fran. But I am not completely shore that they had no choice but to leave Fran. The fact that there were nine people on the mountain and that together they couldnt even try to help rescue Fran is rather peculiar. I dont know what others would do, but I would at least try to help, rather than to just leave her to die. Also, Cathy states that they had been with Fran for nearly an hour pondering over what to do, this completely wastes time and any chances of saving her. Cathy is in a moral dilemma, and I believe the moral thing to do would be to attempt a rescue. The three Uzbek climbers that left her oxygen and supposedly tried to help saw Fran the day before this incident. She must have been in a better state then, and all they do is just leave a canister of oxygen. The Uzbek climbers then stay with the rest of the group and Fran, and help to watch Ian and Jangbu to see what decision they took, this is just more evidence of time being wasted and therefore lowering Frans chances of survival. In conclusion I believe that to live Fran to die was not the only choice they had. As I said, the morally correct thing to do would be to of least attempted a rescue, rather than to fritter away time.

Geological Applications of the Stable Isotopes of Nitrogen

Geological Applications of the Stable Isotopes of Nitrogen Bruce Botton Hard rock, geological applications of the stable isotopes of nitrogen. Introduction. Gammon and Ebbing book of general chemistry define isotope as â€Å"an atom with the same number of protons, but differing numbers of neutrons. So isotopes are just different forms of a single element.†[ Gammon, Ebbing. (2005). (8th ed., p. 467)] There are two broader definitions of isotopes, light isotopes are elements that are lighter (contain less neutrons) than the common more stable element (eg. 12O,26S and 34Cl) and Heavy isotopes are the atom contains greater number of neutrons than the most common form( eg. Fe, Cu and Zn). Focusing on light stable isotopes in low temperature environments such as H, C and O and with specific reference to Nitrogen isotopes. Below are a few properties of light stable elements: They are usually of low atomic masses. The mass difference between the heavy, uncommon isotopes and the common light isotopes is usually very large. The lighter elements form bonds with more covalent properties. These light elements form a large number of compounds that are found in the natural environment. Exist in more than one oxidation state. The relative abundances of isotopes are high enough for precise determination of isotropic ratios by mass spectrometry. Sedimentary rocks, low grade igneous and metamorphic rocks (ie. That form at temperatures of 350 degrees Celsius and less) are the type of rocks that we are expecting to find these stables isotopes of interest. Any temperature above this constitutes as high temperature geochemistry. The use of isotopes in analysis of rocks is of increasing popularity, it uses the variations in isotope abundance of various elements to determine certain properties of a rock. These properties that are available are origin and age of the rocks; air or water bodies and even to see if there has been any mixing of magmas to change the composition of the rocks. Stable isotope geochemistry is mainly focussed on the isotropic variations from mass dependant isotope fractionation as compared with radiogenic isotope geochemistry which uses the products of natural radioactive decay (eg. Half lives). Equation 1. Enrichment factor equation. Many isotopes the amount of fractionation that an atom or body of molecules undergoes is very small (both kinetic or equilibrium), so small measured in parts per thousand or less. The formula above shows us the enrichment factor that is present in a sample. This formula uses the ratio of heavy isotopes to light isotopes as compared with a standard sample. So for nitrogen we will be using 15N/14N For the purpose of this assignment, we are focusing on the use of nitrogen and its two isotopes 14N and 15N in the analysis of hard rocks. Nitrogen is a colourless, odourless tasteless and most commonly a diatomic non metal gas, it actually makes up 78% of the Earth’s atmosphere. Not only is it over three quarters of our atmosphere but it is a part of all living tissues and is an essential part of life as it is part of DNA and therefore important in the genetic code and the evolution of life. The nitrogen cycle (figure below) is an essential part of existence on earth. Nitrogen cycle. Figure 1 . Schematic diagram of the Nitrogen cycle.[ Petrucci, et al (2002). (8th ed., pp. 887–889). Prentice Hall.] There are 9 stages of the nitrogen cycle, there is no start point the nitrogen cycle is a complex, continous and simultaneous system. Nitrogen fixation: this is a chemical processes by which atmospheric nitrogen is transformed into organic compoundsby microorganisms. N2 à ¯Ã†â€™Ã‚   NH4+ à ¯Ã†â€™Ã‚   N-org Ammonification: this process is a conversion of organic nitrogen to ammonium by bacteria. N-org à ¯Ã†â€™Ã‚   NH4+ Nitrification: this is a process by which a nitro group is substituted for another group in organic compound. NH4+ à ¯Ã†â€™Ã‚   NO2 à ¯Ã†â€™Ã‚   NO3 Assimilation: is the conversion of nutriment into a usable form that is incorporated into human tissue and organs after digestion NH4+ à ¯Ã†â€™Ã‚   N-org Dentrification: is a process by which microbacteria breaks down a nitrate to produce N2. NO3 à ¯Ã†â€™Ã‚   NO2 à ¯Ã†â€™Ã‚   NO à ¯Ã†â€™Ã‚   N2O à ¯Ã†â€™Ã‚   N2 Volatilization: in this instance it is when liquid ammonium is transformed into ammonia gas. NH4+ à ¯Ã†â€™Ã‚   NH3 gas Case studies: Nitrogen isotopes in peridotitic diamonds from Fuxian, China: the mantle signature. Nitrogen is of low abundance in the earth’s mantle due to lack of knowledge. But fibrous diamonds are a N rich form and are associated with MORB vesicles these have been tested and give a ÃŽ ´Ã‚ ­15N value of -5†°, the reason for a negative value is due to it being a relative value to the external sources (atmosphere) This has lead people to believe in the heterogeneous accretion model of the earth. In Pierre Cartigny et al experimental procedure they separated diamonds into broad categories, type 1 has no nitrogen and type 2 does not contain any Nitrogen. These abnormalities are linked to diffusion process and might help tell us if diamonds formed in multiple steps. The nitrogen and the ÃŽ ´15N were measured with accuracy  ±2.5% and 0.5% respectively. After IR analysis 25% of the diamonds taken from Pipe 50 were determined as type 2 , and the remainder a mixture of type 1 and 2 diamonds. These ‘mixed diamonds’ are separate platelets compacted together, this zonation of the aggregated states of type 1 and type 2 platelets conform that the octahedrally shaped diamonds growth was over a extended period. 25% of the samples that were analyzed were found to have a lower value of a ÃŽ ´Ã‚ ­15N the in previous works ranging from -12†° to -25†° and the nitrogen concentrations vary from 0 to 1473 ppm. Below figure 2 shows us the ÃŽ ´ 15N histogram which show us fibrous diamonds from all over the World and the octahedrally shaped diamonds from pipe 50, the result as can be seen is that they are based around the same value ( -7†° and -5†°). These results are coincidently similar to the ÃŽ ´13C; this shows us that the fractionation of stable nitrogen isotopes during non fibrous diamond growth is unlikely. The growth of octahedral shaped diamonds should be seen as a large open system with limited supply of volatiles and periods of time in which resorption can occur. Geochemical evidence shows fibrous and peridotitic diamonds originate from similar sources, believed to be the convecting asthenosphere with values of ÃŽ ´Ã‚ ­15N being -5  ± 2 and -4.5  ±1†° respectively. If we wanted to strengthen this argument we would have to look at Diamonds that are found in the lower mantle. These diamonds would originate from a less degassed mantle, this would mean that there wou ld be little to no nitrogen present. If the nitrogen content is controlled by rate of growth rather than the carbon nitrogen ratio of the fluid, this means that there will be little or no correlation between N and ÃŽ ´Ã‚ ­15N, and even less between ÃŽ ´13C and nitrogen which is present in this case. [ Geà ¢ochimie, et al. (1997). Terra Nova, 9(4), 175–179.] Figure 2. histogram comparing ÃŽ ´15N values of diamonds from pipe 50 kimberlites and previously analysed fibrous diamonds.[ Geà ¢ochimie, et al. (1997). Terra Nova, 9(4), 175–179.] Concentrations and isotope ratios of carbon, nitrogen and sulphur in the ocean floor basalts. The concentration of stable isotope ratios in fresh basalts on the sea floor provides us with information on abundance and isotope ratio of volatile elements in the upper mantle and crust. Samples were taken from less than 10mm from billow basalt ridges and then other samples were taken from the inner portions of the pillows where the groundmass ranges from glassy to crypto-crystalline. The isotropic ratios ÃŽ ´ was atmospheric nitrogen and the uncertainties was  ±1†°. The contents and the ratio of nitrogen present in the ocean floor basalts range from 0.3 – 2.8 ppm and from -0.4†° – 0.8†°. The nitrogen that was attained was of one order of magnitude bigger than the blank nitrogen cycle. This said but the uncertainties in the experiment were rather large  ±1†°, this is due to the small sample sizes. This said, the discrepancy of the isotope ratios should not be taken to be significant but the uniformity of the isotropic ratio and their similarity to the N2 ­ in the air should be emphasized. Nitrogen’s most common form in igneous rocks is in the form of N2 ­ and ammonia. When nitrogen vapour is in contact with magma it would most likely exist as N2, but if it is in the magma it will most likely be in the form of ammonia. The nitrogen in the magma itself will most likely escape as N2 from ascending magma and decreasing confining pressure and will act as a alkaline cation when undergoing fractional crystallization and therefore will be more evolved in a more evolved magma. As Degassing and fractional crystallization proceed NH+4 is enriched relative to N ­2, and NH3 would become depleted and more enriched in 15N this means that 15N/14N in igneous rocks increases with decreasing nitrogen content. According to Sakai, H et al. The average ÃŽ ´ 15N of magmatic crust, atmosphere and sedimentary rocks are 4.2, 0 and 5.2†° respectively. Therefore the global distributions of nitrogen isotopes have been interpreted as the result of out gassing of magma and fractiona tion between N2 and NH+4. ÃŽ ´15N found in MORB are close to the crustal values and therefore can be said to support the above model. Conclusion: Finally in conclusion we can see the importance of nitrogen not only in the atmosphere and our very being. But we can see that there are uses for the stable isotopes in the continued attempts to try and understand the Earth’s history and origin. Reference list: Gammon, Ebbing. (2005). General Chemistry. (R. Stratton, Ed.) (8th ed., p. 467). New york: Charles Hartford. Geà ¢ochimie, L. De, Physique, I. De, Vii, U. D. P., Cnrs, U. R. A., Cartigny, P., Boyd, S. R., Harris, J. W., et al. (1997). Nitrogen isotopes in peridotitic diamonds from Fuxian , Chinaà ¢Ã¢â€š ¬Ã‚ ¯: the mantle signature. Terra Nova, 9(4), 175–179. Petrucci, Harwood, Herring. (2002). General Chemistry. (J. Challice, Ed.) (8th ed., pp. 887–889). Prentice Hall. Sakai, H., Des Marais, D. J., Ueda, a, Moore, J. G. (1984). Concentrations and isotope ratios of carbon, nitrogen and sulfur in ocean-floor basalts. Geochimica et cosmochimica acta, 48, 2433–41. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/11540821 Sharp, Z(2007), Principles of stable isotopes Geochemistry. Prentice Hall,NJ.

Impact Of The Monetary Policies

Impact Of The Monetary Policies Introduction Through a literature review, this chapter aims to explore the impact of the monetary policies and regulations on bank risks and their operations in Zimbabwe. Section 2.1 will give a brief over view of Zimbabwe and Section 2.2 will discuss the Zimbabwean economy. Section 2.3 will outline a background on the rationale of financial regulation through the exploration of the Basle Accord II. In section 2.4, financial regulation in Zimbabwe and its influence to the economy will be examined. An overview of the banking system and the type of risks it is exposed to will be considered in section 2.5. Section 2.6 will explore the Zimbabwean banking system and its major challenges also linking these to the country„Â ¢s financial regulation. In section 2.7 the author discusses Enterprise Risk Management (ERM) which is an integrated and holistic risk management framework that organisations are encouraged to use as a change management strategy for managing risks. Section 2.8 will finally sum marise this chapter. Overview of Zimbabwe Zimbabwe (formerly Rhodesia) is a landlocked country in south-central Africa. It lies between the Zambezi River which in the north and the Limpopo River in the south. Its neighbouring countries are Zambia, South Africa, Mozambique and Botswana. Zimbabwes capital city, Harare, is located in the northeast part of the country (Coltart 2008). Zimbabwe gained its independence from Britain in 1980 after a long armed struggle led by the leading party, Zimbabwe African National Union Patriotic Front known as ZANU-PF, (Makumbe, 2002). It has a population of 13,349,00 people with a gross domestic product that is estimated to have fallen by about 14% in 2008 due to economic disruptions caused by hyperinflation and the further deterioration in the business climate (World Bank 2008). The economy of Zimbabwe Chitiga (2004) contends that agriculture plays a central role in the economic performance of Zimbabwe. The agricultural sector is important to the economy for several reasons (Christiansen 1993).In the 1980s, it was the major employer, employing a total of over 70% of the country„Â ¢s population. The sector continues to be a major employer to this day. In Zimbabwe, droughts continue to be a major problem and raises concern about food security (Chitiga 2004). However despite the ever changing weather patterns affecting the agriculture sector in Zimbabwe, Coltart (2004) notes that agriculture the mainstay of the economy was all but destroyed by the politically expedient and violent land reform program initiated by the ZANU PF government in 2000. Collapse of Zimbabwean economy Coorey et al( 2007) argues that, while the initial output collapse is widely attributed to the chaotic seizure of commercial farms in Zimbabwe which is the backbone of the economy, other factors have also contributed in recent years to the county„Â ¢s collapse which include; 1) high and accelerating inflation of 230 000 000% in 2008, 2) price distortions due to extensive controls and regulation, particularly relating to the exchange rate which is fixed by the Reserve Bank of Zimbabwe (RBZ) at a highly overvalued rate, 3) the collapse of investor confidence due to unpredictable policies and lack of respect for property rights, particularly in agriculture and mining and 4) minimal external financing because of poor relations with creditors and donors and deteriorating economic and social conditions. (Munoz 2006, Dore et al 2008, Hanke 2008) argue that the RBZ„Â ¢s polices such as printing of money, quasi-fiscal activities by the RBZ, have specifically caused the economic instability in Zimbabwe. The consensus amongst these authors is that the country„Â ¢s government policies alongside with the central bank have played a major role in causing hyperinflation which rose to 230 000 000% in 2008. Coltart (2004) highlights that the government is chiefly responsible for an economic meltdown. Muponda (2008) notes that Zimbabwe„Â ¢s inflation was driven higher by the central banks lack of independence from the government. Therefore the banks policies have been primarily dictated by the government. The RBZ has been forced to be financier of first choice and literally print money to fund its the quasi fiscal activities.. The challenges faced by Zimbabwe have been contributed by various factors including, the land reform programme in 2000 (Coorey et al 2007), political unrest in the country which has isolated the country from the global community through sanctions and withdrawal of investments and international business community. Research by Cukierman (2001) and the IMF (1996) suggest that countries accorded greater autonomy to their central banks also experienced lower average inflation whilst those economies where there is no central bank independence have higher inflation rates. The influence of the government on the RBZ has resulted in the bank implementing unorthodox monetary practices such as printing of money which has fuelled hyperinflation. Hanke (2008) refers to hyperinflation as the hallmark of Zimbabwe„Â ¢s economic collapse. The state of the Zimbabwean economy has undergone, major changes with major economic and political reforms implemented by government officials to restore the economic soundness of the country in the year 2009. There is the use of multi currencies in the country as the economy was officially dollarized by the central bank in February 2009 resulting in the removal of the local currency (RBZ 2009). Since the adoption of multiple currencies, deposits into the banking system have grown to US$705.7 million by 3 June 2000 (Government of Zimbabwe 2009). Already, the economy is on a recovery path as reflected by macro-economic stability, inflation reduction, enhanced capacity utilisation, resulting in improved supply of goods and services as well as overall growing business confidence (Biti 2009). Financial Regulation Effective regulation is of fundamental importance for the economic performance of any sector in the economy to address market failure (Jalilian et al 2003). The mishaps and failure of large corporate institutions in the financial sector have caught the attention of regulators, who have taken a more stringent regulatory approach in the financial sector. In recent years, a number of financial crises have brought about a large number of bank failures (Casu et al 2006), such as Barings Bank in 1995 and Northern Rock in 2007. Likewise the banking crises in the early 1980s and early 1990s have shown that banks experience problems which create a potential threat to depositors, investors and the safety of the industry with unpleasant consequences for the economy as a whole (Caprio and Klingebiel 2003). Financial regulation focuses on the factors that are essential to the stability and well being of the financial sector (Stewart 2001). The susceptibility of banks to contagion creates systemic risk which is the risk that disturbances in a financial institution or market will spread across the financial system (Heffernan 2005). It is the role of the central bank to implement measures to shield the country„Â ¢s economy from being affected by the results of the crises. Stiglitz (2000) contends that the aim of regulators is to minimise the possibility of a breakdown in the financial sector and prevent any adverse effects on the long term growth rate in the economy. In some instances government have had to rescue banks to avoid the crises from spreading to other banks and affecting depositors as well.. Restrictions on bank activities, risk adjusted minimum capital requirement, direct intervention of managers decisions are three basic devices that can be applied by regulators to control bank risks (Fenandez and Gonzalez 2005). Minimum capital requirements Various authors (Besanko and Kanatas 1996, Calem and Rob 1999) however argue that regulations such as minimum capital requirements are likely to increase the risk taking behaviour of banks. According to Kendall (1992) higher capital requirements may cause riskier bank behaviour at some point in time, although it does not necessarily imply a trend towards a riskier banking system. Beatty and Gron (2001) indicate that capital regulatory variables have significant effects for low-capital banks but not necessarily for other banks. Studies by Barth et al. (2004) also indicate that while more stringent capital requirements are associated with fewer non performing loans, capital stringency is not robustly linked with banking crises or bank development or efficiency when controlling for other supervisory and regulatory policies. Bank Regulations Bank authorities regularly attempt to promote bank soundness by imposing restrictions on banks activities (Constantin et al, 2006). In their research, Constantin et al (2006) found that restricting bank activities is negatively associated with bank development and stability. Barth et al. (2001) found that greater regulatory restrictions on bank activities are associated with higher probability of suffering a major banking crisis, and lower banking sector efficiency. Lascelles (2005) adds that a survey conducted by Pricewaterhouse Coopers found that excessive regulation was seen as the greatest risk facing the financial sector. However in contrast to this, Fernandez and Gonzalez (2005) indicate that stricter restrictions on bank activities are effective at reducing banking risk. It would appear overall that restrictions on banking activities forms as a basis of ensuring that banks do not divert from their core business and conduct sound banking practices. Basle Accord It is because of problems such as the financial crises that the Basle Accord II emphasises on the supervisory role of the regulator. In June 1999, the Basle Committee on Banking Supervision made its long anticipated announcement to introduce a new capital accord to introduce a new capital adequacy framework to replace the 1988 Accord (Ong 2005). This framework was then finalised in June 2004. Cai and Wheale (2007) note that this framework is designed to improve risk management by using models based on past performance to help set the amount of capital banks are required to hold by regulators with the purpose of improving the efficiency of the global allocation of capital. Efforts were made to initiate the new Accord as the first accord of 1988 was highly criticised for its shortcomings. risk. The new accord seeks to overcome the problems of the 1988 framework focusing on three pillars (Basel Committee 2005). Pillar 1 sets out the minimum regulatory capital requirement that is the amount of capital banks must hold against risks. This is intended to cover market risk, credit risk and operational risk. Pillar 2 defines the process for supervisory review of an institutions risk management framework and, ultimately, its capital adequacy. This pillar points out responsibilities for the board and senior management, emphasising on internal control corporate governance practices established by regulatory bodies in various countries worldwide. Sironi and Zazzara (2003) argue that this pillar gives regulators the right to inspect and supervise the activities of banks to ensure that they are adhering to the requirements of the framework Pillar 3 focuses on market discipline. In order to improve the transparency of banks to counterparties and investors, banks will be required to disclose detailed information on their risk profile and capital adequacy (Gordy and Howells 2006). The benefits of the Basle II are noted in the three pillars, as there will be enhanced disclosure, transparency and this will improve on banks risk management processes. Cai and Wheale (2005), site that banks will need to collect and disclose new information and face the implications of increased transparency. Cai and Wheale (2005) add that more information will help enable banks to improve overall risk management which in turn is expected to prompt improvements in corporate governance, transparency and the value of disclosure. Ong (2005), supports this and says that Basle II is very important and it is about improving risk management within the financial industry by providing the correct incentives for better corporate governance and fostering greater transparency. The Basle accord on the other hand is criticised for some of its shortfalls. For example the fact that the costs of Basle II are significantly high in terms of implementation and continuing basis in the long run (Gordon 2004). Banks lose their flexibility, innovation and development are interrupted. Due to the fact that limited resources are available, many risk managers will spend a long period of time on interpreting regulations, implementing the solutions and then justifying the output to supervisors (Smith and Walter 2003). Hence little time will be available for innovation and development. The compliance with laws and regulations is not able to help banks avoiding all risks. Zimbabwean Financial Regulation The Reserve Bank of Zimbabwe is responsible for the formulation; implementation and monitoring of the monetary policy directed at ensuring low and stable inflation levels (Reserve Bank Act). The RBZ does not, however have the operational independence in carrying out this responsibility, as it is required by statute to consult the Ministry of Finance (Dore 2008). This has resulted in the RBZ operating from the executive arm of the government instead of adhering to a binding legal mandate (World Bank 2007). Bade and Parkin (1982) note that political independence is defined essentially as the ability of the central bank to select its policy objectives without the influence from the government. A central bank is said to be independent of its monetary policy if it is not influenced by political cycles or by the preferences of politicians (Eljffinger and de Haan 1996). The RBZ„Â ¢s policies have been influenced by Zimbabwean political authorities therefore the bank has been lacking central bank independence. Another core function of the RBZ is to maintain stable banking system through its supervision and lender of last resort functions. Post 2003 monetary polices and regulation The turning point in Zimbabwean financial services sector was marked by the appointment of the new central bank governor in 2003. During this period the governor issued a monetary policy and financial regulations which sought to minimise non-core banking activities practiced by banking institutions (Dore 2008). The other objectives were to instil market discipline and improve corporate governance and risk management systems. As a result of the RBZ„Â ¢s severe supervisory efforts, various banking institutions experienced liquidity and solvency challenges. Consequently, nine financial institutions were placed under curatorship whilst 3 were liquidated. Banks currently face risk management challenges, economic and political uncertainties and new regulatory requirements emanating from the RBZ regulations and unstable political environment (Muponda 2008). The RBZ governor, notes in the 2009 monetary policy (Government of Zimbabwe 2009) that prior to 2003, an adverse macroeconomic environment, weak supervisory approaches, and regulatory forbearance gave rise to a number of fundamental flaws in the operations of banks. These included; 1) a shift from core banking business to speculative transactions, 2) abuse of bank holding company structures to evade regulation, 3) poor corporate governance, risk management practices and insider dealing, 4) rapid local and regional expansion with no proper internal controls, and adequate capacity and 5) disregard of prudential laws and regulations. Smith and Walter (2003) suggest that the fundamental objective of regulators is to develop frameworks and guidelines that will further strengthen the stability of banking system. This objective is achieved in promoting the adoption of these frameworks in banks. To enhance the supervisory process, the RBZ has developed and issued guidelines for the banking s ector in order to address operational and structural deficiencies prevailing in the financial sector, (Government of Zimbabwe 2009). These guidelines are shown below in table 1. Basel II implementation The Basel II implementation in Zimbabwean banking industry is still in its preliminary stages. A survey by Ernest and Young in 2005 (Lescellos 2005) shows that many banks in developed countries have come up with implementation programmes of Basle II whilst in developing countries implementation is still at the initial stages. This survey is confirmed by evidence of the current implementation status in Zimbabwe. The current guidelines setup by regulators in Zimbabwe is that all banking institutions must fully adopt standardised approaches for allocation of capital for risk (credit, market and operational). However a technical guidance on Basle II implementation in Zimbabwe will be issued in due course to provide a road map and expert guidance on full Basle II implementation in the country, (Monetary Policy 2009).This shows how slow the progress has been in the full implementation of the framework in Zimbabwe, and could be the cause of the major problems faced by country„Â ¢s th e banking industry. Cai and Wheale (2005) however report that awareness and preparation for Basel II in the emerging markets and developing countries has increased significantly over the past two years. Banking Sector It is widely accepted that the banking system has a unique position in the national economy (Heffernan 2005). A banking system that is able to operate efficiently is of crucial importance to any economy (Quagliariello 2002). The banking system must not only be efficient in carrying its role as an intermediary in the financial market but it must also be economically robust to withstand adverse shocks such as a major policy change to economic downturn. Traditional functions of banks include lending money to borrowers and taking deposits. They play a financial intermediary role of providing loans to borrowers and collecting deposits from savers (Casu et al, 2006). Poorly operating banking systems can impede economic growth, intensify poverty and destabilise the economy. These poor operations can be due to banks with inadequate risk management processes (Stiglitz 2000). Banking Risks The nature of banking activities eposes banks to the following risks Due to the nature of banking activities, they are exposed to various risks. These credit risk, market risk, liquidity risk, operational and foreign exchange risk. Credit risk The Basle Committee on Banking Supervision (2000) define credit risk as the potential that a borrower or counterparty will fail to meet its obligations in accordance with greater terms. Credit risk is associated with the traditional lending activity of banks and it is simply described as the risk of a loan being repaid in part or full (Casu et al, 2006). Liquidity risk This is the possibility that a bank will be unable to meet its liquid liabilities because of unexpected withdrawals of deposits. An unexpected liquidity shortage means that the bank is not only unable to meet its liability obligations but also unable to fund its illiquid asset (Matthews and Thompson 2008) Interest rate risk Financial intermediaries are potentially exposed to interest rate risk because of the mismatch between the maturity, or time to repricing of their assets and liabilities (Faff and Howard, 1999). The interest rate sensitivity exhibited by a financial institution will depend, in part, on the approach which its management adopts to controlling risk. Operational risk The Basel Committee on Banking Supervision in 2003, recommended the correct determination of the risks to which a banking organization is subject. This concerns, in particular, operational risks, which are all those management events that may determine unexpected losses (Cornalba and Guidici 2005). The New Basle Accord (2000) defines operational risks as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events (such as political and economic factors), including legal risk but not strategic and reputation risk. Market risk According to Matthews and Thompson (2008), market risk is the possibility of loss over a given period of time related to uncertain movement in market risk factors such as interest rates, currencies equities and commodities. Foreign exchange risk Exchange rates may change rapidly which exposes firms to foreign exchange rate risk, which is the risk that losses may arise from rises or falls in the value of a currency in terms of the domestic currency. Eichenbam and Evans (1995) suggest that there is a link between monetary policies and foreign exchange rates. Contractionary shocks to monetary policies are followed by sharp persistent increases in exchange rates, which ultimately results in foreign exchange rate risk. Other risks that affect banks include strategic, regulatory and legal and compliance risk There is a clear sense that risk exposure of the financial system has increased by changes that have taken place (Hellwig 1995). Casu et al (2006) notes that changes such as deregulation, conglomeration, and globalisation have posed serious risk challenges. Calomiris and Maso (2003) emphasise that the risk taking behaviour of banks affects financial and economic fragility. In turn regulators have undertaken greater efforts of regulation to impose new risk management standards to shape bank risk (Elsinger et al 2002). In compliance to this banks have improved their risk management systems. Examples of other regulatory reforms advocating for risk management frameworks are the Sarbanes Oxely Act of 2002, the Basle Accord II and the Committee of Sponsoring Organisations of the Treadway Commissions (COSO) Enterprise Risk Management of 2004. Zimbabwe banking sector The Zimbabwe financial sector consists of the Reserve bank, discount houses, commercial banks, merchant banks, finance houses, building societies, a development bank and the Post office savings bank, insurance companies, pension funds and a stock exchange, (Dore 2008). There are currently twenty-eight banking institutions in Zimbabwe,fifteen commercial banks, six merchant banks, three discount houses,4 discount houses and one development bank. All banks are licensed by the RBZ and regulated under the Zimbabwe Banking Act of 1999. Zimbabwe„Â ¢s financial services sector has witnessed phenomenal growth since economic deregulation in 1991 (Muranda 2006). During the period of 1991 to 2003 new domestic banks entered, financial sector. New Innovations and development have been witnessed with the introduction of new products and services within the sector. Table 1.2 below shows the banking sectors growth trend from 19992 to 2004 of financial. However the banking sector has been gripped with many challenges, which began to surface during the period of the land seizures in 2000. These policies created extremely difficult economic and political challenges for the banking industry. The IMF (2006) argues that events in the banking sector have been concurrently influenced by political factors.. The situation was heightened in 2003 by the new regulations set by the appointed RBZ governor. It was reported by Voice of America (2004) that at least six of Zimbabwe„Â ¢s new commercial banks are were in trouble. It linked this distress to the governments new monetary policy announced in December 2003, in which the central bank vowed to stop speculation in the Zimbabwe dollar and related instruments. Biti (2009) in the Zimbabwean fiscal policy points out that between 2000 and 2008, the financial sector has severely been undermined by inconsistent macro-economic policies, negative real interest rates, massive capital flight and erosion of deposits. Overall, the financial sectors balance sheets were reduced to less than 25% of their 2004 value, reflecting an erosion of the real value of financial assets and liabilities in Zimbabwe dollars (World Bank 2005). In order to remain afloat, most banks have had to downsize their operations by closing some branches, especially those in the outlying service centres, leaving about 65% of the population without access to banking services. The rural areas were particularly affected by this. Factors that have influenced liquidity risks include frequent ad hoc changes in interest rates by the RBZ, lengthening of maturity of treasury bills at highly negative interest rates (IMF 2008). Foreign exchange risk in the banking sector has increased becau se of the dominance of foreign currency transactions (Hanke 2008). Dhiwayo (2004) reports that, prior to the introduction of the new monetary policy in December 2003, the Zimbabwean banking sector was characterised by poor corporate governance and risk management systems, high levels of insider abuse through assessed loans to related parties (often relatives and friends), overindulgence in speculative non-core banking activities, inadequate capitalisation, lax prudential supervision and regulatory forbearance. This report highlights that three financial institutions were placed under liquidation whilst nine were placed under the administration of a curator. In light of this the central bank adopted a framework known as the Troubled Bank Resolution Framework (RBZ 2004) to effectively deal with banks experiencing problems. They key objectives of this framework were to: 1) restore stability of the financial sector, 2) strengthen the banking system and promote sound banking practices, 3) develop permanent solutions for troubled banking institutions and 4) promote economic development and growth.The Zimbabwe Allied Banking group was formed in 2005 which was amalgamation of the some of the troubled banks. Dollarisation of the economy Over the years the financial sector has been experiencing various challenges such as, cash shortage, foreign currency black markets, abolition of notes and coins and the use of bearer cheques, loss of confidence in the banking system by depositors and the most influential factor which is inflation. Many depositors have lost their savings. Prior to 2009, the Zimbabwean economy had been unofficially dollarised. Unofficial dollarisation occurs when people hold much of their financial wealth in foreign assets even though foreign currency is not a legal tender. It can include the holding of foreign bonds and other non-monetary assets, foreign-currency deposits (either abroad or domestically), and foreign notes (paper money) in wallets, under mattresses, and in safe-deposit boxes, (Hanke, 2008). However in the January 2009 monetary policy, the RBZ governor approved that all sectors in the economy can operate in foreign currency and that lending will be two tier, that is in local currency and foreign currency. Dollarisation has the effect of moderating the adverse effects of inflation on financial intermediaries„Â ¢ balance sheets (Ize et al 2004). This It could be argued that this two tier market system exposes banks to credit risk (in the form of settlement risk and default risk). Minimum capital requirements A capital verification exercise conducted by the Reserve Bank in January 2009 indicated that of the twenty eight (28) banking institutions operating in the country, fifteen were found to be in compliance with the minimum capital requirements whilst three are marginally below, with the remaining ten being undercapitalised. Capital regulation is motivated principally by the concerns that a bank may hold less capital than is socially optimal to its riskiness and negative externalties (Rime 2001). Chiuri et al (2002) considers that the enforcement of capital requirements has had a negative effect on the supply of bank loan over a period of time and the effect tends to be stronger for initially less capitalised banks. The adverse impact of more stringent minimum capital requirements has been somewhat smaller on foreign owned banks than it has on domestic banks (Clarke et al 1999). Enterprise Risk Management A recent trend in risk management has been the development of an integrated, enterprise wide approach to assessing the business risks that can impact an organisation to achieve its objectives and to develop programmes for managing those risks (Miccolis et al 2001). In contrast to the traditional silo approach to managing risk, the ERM approach requires that a company-wide approach be taken in identifying, assessing, and managing risk, (Liebenberg and Hoyt, 2003). ERM enables firms to benefit from an integrated approach to managing risk that shifts the focus of the risk management function from primarily defensive to increasingly offensive and strategic (Bies 2004). Various risk management bodies have been influenced by the proposals of ERM.COSO (2004), defines ERM as: A process, effected by an entitys board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. The common method of risk management has been known to treat risks separately. Under this approach according to Lam (1997), Cumming and Hirtle (2001), various categories of risk are managed separately in individual risk silos. Liebenberg and Hoyt, (2003) also criticise the traditional risk management approach as a highly disaggregated method of managing firm risks. An enterprise-wide approach to risk management treats each of these risk classes as part of the firms overall risk portfolio that is managed holistically. Kleffner et al (2003) observes that financial institutions often manage risks in individual risk silos. To manage risk on an enterprise wide basis, banks must expand their focus beyond traditional concepts to include economic and political factors along with risks related to reputation, ethics and data integrity (Pricewaterhouse Coopers 2002). It is therefore important in this research to examine how banks have adopted their risk management framework having considered political and economic factors affecting Zimbabwean bank s. Although ERM is increasing, not as many institutions have implemented it (Walker et al 2002). This may be due to lack of knowledge on its benefits, lack of commitment from board of directors, lack of experienced and qualified risk personnel , a corporate culture that discourages ERM and inadequate systems and technology (COSO 2004). Lam (2007) encourages banks to adopt an ERM programme regardless of their level of sophistication in risk management. He identifies three reasons why banks should adopt ERM: 1.) banks face complex risks that are highly interdependent, and an ERM framework enables a bank to manage all major risks and their interdependencies, 2) an ERM framework provides the overall architecture for a banks risk management programme and 3) empirical research and industry surveys have indicated that there are clear business benefits for adopting an ERM programme. Liebenberg and Hoyt, (2003) observe that ERM benefits firms by decreasing earnings and stock-price volatility, reducing external capital costs, increasing capital efficiency, and creating synergies between different risk management activities. It would appear that ERM helps an organisation to function as a whole or one system as various units dependant on each other. This enables risk management to be implemented fully as risks are consolidated and not treated separately. Influencers of ERM The trend toward the adoption of ERM programs is usually attributed to a combination of external and internal factors. The major exter

Homelessness Essays -- Homeless families, social reform, outreach

Homelessness is a serious problem in our society. Every night in our nation thousands of people are on the streets. This type of behavior is considered deviant because it does not reflect the norms and values of our society. In many cases the homeless people in our country are treated as total outcasts. Many of these people have severe mental disorders. Some are victims of an economy that has failed them. One may ask how such harsh situations exist in such an advanced society. With all the money and programs created to help people it seems ridiculous that this behavior exists. In a society where people have so much how is it possible that there are still people that have so little. The homeless are humans, no different than anyone else. They have rights and privileges just as any other citizen. As fellow humans we are obligated to help those in need. The homeless are in need. They are not only in need of money, but they are also in need of our attention and our support. Homelessness is something that we as a society need to address and eliminate completely. In the past few years the number of homeless people has increased tremendously gaining the attention of the public eye. While there is debate over how many homeless people are in the United States, few disagree that the numbers are overwhelmingly high and they are growing. In the past the homeless population mainly consisted of white men who were alcoholics. Now the homeless consists of many different types of people ranging in ethical background. They have also become a younger group of people and have a variety of different reasons for their homelessness (Farr, 1986). Homeless people have no bed to keep warm in if they get a fever or if the weather is cold. They do no... ...ington: University Press of Kentucky. Works Consulted Children's Defense Fund. (1998). The state of America's children: A report from the Children's Defense Fund. Boston: Beacon Press. Fitchen, J. (1981). Poverty in rural America: A case study. Boulder, CO: Westview Press. Gans, H. J. (1995). The war against the poor: The underclass and antipoverty policy. New York: BasicBooks. Garrett, P. (1996). Poor kids in a rich nation: Eating the seed corn. In Pathways from poverty educational network. University Park, PA: Northeast Regional Center for Rural Development. (ED 406 080) Katz, M. B. (1990). The undeserving poor: From the war on poverty to the war on welfare. New York: Pantheon Books. Kryder-Coe, J. H., Salamon, L. M., & Molnar, J. M. (Eds.). (1991). Homeless children and youth: A new American dilemma. New Brunswick, NJ: Transaction Publishers.

The People Versus Lady Macbeth :: essays research papers

The People Vs. Macbeth The Macbeth trial broke out in full force today as the entire nation of Scotland paid close attention to the small town court of Grahacknboroughsly, Scotland. The charges are for abuse of power, abuse of wealth, abuse of friendship and misuse of a regal Scottish accent. As the parade of people came into the courthouse, 2/3rds of them were enemies of Macbeth. The motion to dismiss came early on grounds of permanent death on Macbeth’s defense team. The motion was quickly dismissed as Macbeth was being quite lively for a dead King. The motion was not helped by the â€Å"deceased† ordering the judge to â€Å"Lemme free, drop the charges and get a haircut.† The defense motion was further weakened by the comment, â€Å"the judge can kiss my giant, royal behind.†   Ã‚  Ã‚  Ã‚  Ã‚  The trial soon got underway after the court was able to settle Macbeth down. The People’s witness list started off at the top and worked down. The first was Banquo, as he had been victimized by Macbeth early in the tale and his testimony, as well as his casket, was getting stale. After hearing the testimony from Banquo, the Macbeth defense brought out their one and only witness, a stable boy, who looked as though he had been threatened with his life. The boy’s shaky and unseemingly well worded testimony went over very badly on the jury side and the crowds side. The boy brought out the fact that Macbeth was blinded by the possibility of absolute power and wealth, and that he couldn’t control his wife’s demands until it was too late for the both of them. He also stated that the opportunity wouldn’t have been there if it weren’t for the king’s cowardly sons and their flight from Scotland. This did not go over well for the side of the jury that was strongly pro Duncan (even though they were supposed to be non partisan, it was hard to find a soul who didn’t love Duncan so much as to hate Macbeth.)   Ã‚  Ã‚  Ã‚  Ã‚  The People now brought out the Weird sisters and their cauldron to make their testimony. As cryptic as it was, it revealed that they had convinced Macbeth to kill Duncan, even though it was not hard. The jury was heavily swayed by this revelation, the common thought was that it may not have been Macbeth’s fault. The sisters may have convinced him.

For which characters in Of Mice And Men do you feel sympathy the most? Essay

Refer closely to the novel in your answer. I felt some sympathy for Curley’s wife as she was the loneliest of them all. She had a husband who didn’t love or respect her as he went to brothels. As well as Curley’s wife I pitied Slim. He has a lot of responsibility and calms everything down in a tense situation. He was the only person who knew that George shot Lennie after the death of Curley’s wife, which shows the amount of responsibility that is on his shoulders. I have some for Crooks as he is at a disadvantage as he is black so will have a lot of prejudice towards him. He is not allowed in the bunkhouse and so he would be very lonely. He also has the disability of having a crooked back. In the end I felt pity for Candy as the prospect of owning a farm is shattered. He could have lived the rest of his years in relative comfort. Steinbeck uses effective pathos after the death of Curley’s wife. ‘ His eyes blinded with tears and he turned and Went weakly out of the barn’ Now that he knows the dream is over he has nothing to look ahead to which is saddening. Because of his age he won’t be able to get a job. You also pity him because of his disability, which won’t help him find a job. ‘I wont have no place to go, an’ I can’t get no more jobs.’ Also when Carlson shot his dog to put it out of his misery I felt some sympathy. He had the dog for along time and had grown attached to it. Without his dog he would be lonely .This theme of loneliness runs throughtout the book. He then shows regret that someone other than himself shot his dog. ‘I shouldn’t ought to have let no stranger shoot my dog.’ I have sympathy for Lennie as when he had killed Curley’s wife he had ruined the dream for everyone. He would have felt bad about this and the fact that he wouldn’t be able to tend the rabbits which was one of his fears. The other being Ggeorge leaving him, which would mean that he would be lonely. His fear run’s loose as he listens to a talking rabbit: ‘If you think George, gonna let you tend the rabbit, your even crazier’n usual.’ Lennie always has George telling him what to do because he keeps on doing stupid things. In a way Lennie should be pleased about someone keeping a lookout for him but because Lennie is so slow he is upset by it and sometimes Lennie loses his temper. I felt sorry for him most when Curley started a fight with. ‘Lennie’s hands remained at his side; he was too frightened to defend himself. This is because people usually feel sorry for things that are defenceless. But even after Curley had repeatedly punched him Lennie still shows remorse for breaking his hand, which shows he is a ‘nice fella’ . A guy who you wouldn’t want something like this to happen to. ‘I didn’t wanta hurt him.’ The reason I don’t feel sorry for Lennie is because he has a companion like George to look after him and because he is so stupid he doesn’t realise what how poor his lifestyle is. ‘But he was too dumb even to know he had a joke played on him’ I feel sympathy for George as he is lumbered with Lennie. ‘Lennie for god’s sake don’t drink so much.’ It’s as if George is looking after Lennie like they have a parent/child relationship. A similar thing occurs when George threw away the dead mouse Lennie kept in his pocket I feel pity for George as he has a lot of pent up aggression as he uses phrases like ‘son of a bitch’ and ‘crazy bastard’. This is probably caused by the situation he is in. He has no security and his only companion is Lennie who is always getting into trouble. I feel empathy for George, as he is so lonely. This is the same with all the other characters. ‘Guys like us that work on ranches are the loneliest guys in the world’. The only way George can escape this position is through his and Lennies’s dream, of owning a farm. George and Lennie ‘aint got nothing to look ahead to’ but the dream sets them a goal. Then George has to do a horrible thing by killing his only friend. He didn’t even seem to think about other alternatives but he saved Lennie from being tortured. Steinbeck builds this up from when Candy’s dog was shot to save it from the pain of living up until George saving Lennie from the pain of being tortured The reason I don’t feel sorry for George is that he has a companion like Lennie. Someone he can trust. If Lennie was in the same position he wouldn’t survive like George, as he doesn’t have the brain. So George can be thankful that it wasn’t vice versa. ‘Lennie who had been watching imitated George exactly’ This shows that Lennie adores George and is a kind of role model. It also shows that Lennie likes him so he won’t double cross him. He is too stupid to do that anyway. I have little empathy to with Curley, as he is lonelier than ever without his wife. He is always getting into fights, which could mean that he is looking for attention. I have sympathy for is the Boss, as he owns the place. He is most probably rich and has a lot of luxuries compared to the workers .I do have some empathy towards the boss .He also has a lot of responsibility as he has to run the ranch and has a son like Curley who is always causing trouble. Through this book Steinbeck tried to portray what the poor people felt at the time. It shows us that the ‘American’ dream doesn’t always come true and that the battle between the ‘good guy’ and the ‘bad guy’ doesn’t always go in the ‘good guy’s’ favour.

History of insurance in Argentina Essay

In 1984, about 200 insurance companies were in operation in Argentina. Although various legal restrictions have been placed on foreign insurance companies, many retain offices. The Superintendent of Insurance of the nation regulates the insurance market, which is a branch of the Ministry of Economy. The Argentine insurance market is characterized by a relatively large number of insurers with no single organization dominating the industry. From 1994 to 1997, there was a reduction in the number of insurers as some closed operations or were liquidated. Observers believe that there will be further reductions in the number of insurance companies as consolidation of the industry and the quest for economies of scale and critical mass continues. In Argentina, insurance companies are not allowed to raise their prices without notifying their customers and explain why the raise in prices took place, nor are they allowed to renew policies without prior notification of the changes in the policy. If an insurance company does not comply with this regulation, one can take legal action against them by contacting the National Supervisory of Insurances (Advameg Inc, 2007). This paper will address the significant development of the Argentine life market of insurance, especially under the stable current conditions. Insurance Landscape in Argentina Types of insurances Apart from the obligatory social insurance, there are also a number of possibilities for obtaining private insurance to cover other eventualities. The most common insurances include: Life Insurance The need for a life insurance depends on age, and dependents. Life insurance foresees in a payment to the beneficiaries of the deceased one. This payment can take place at once, or as a partial interest bearing payment. The names of the beneficiaries are stated in the insurance policy. Insurance companies calculate the costs of your policy based on three factors. The first one is the mortality table that classifies people into groups and their rate of mortality. The higher the risk of the mortality group you belong to, the higher your cost of policy. Next is the interest rate. Insurance companies invest their money in stocks, bonds etc. The higher the interest rate of the investments, the lower the cost of the insurance. Last factor of influence on the price are the operating costs of the insurance company. Life insurance are classified according to duration where distinction is made between temporary (term) insurance and life-long insurance. Temporary insurance only covers the insured person for a time-span specified in the policy. Life long insurance provides covers until death. Secondly is premium which bring in a distinction between Fixed Premiums and Risk Premiums. Fixed premiums mean that the same amount of premium is paid during the insurance. Risk premiums rise in premium as the age of the insured person goes up. Thirdly is the persons being covered by the insurance. Lastly is the flexibility of payment of premiums where a distinction is made between traditional life insurances and savings life insurance. The traditional insurance demands that premiums are paid at set dates. With savings insurances the date and amount of premium payment are more flexible. Take into account that price is not the only criteria when choosing a company. The reputation and service the insurance company offers should also be considered importantly. Furthermore, the company should be registered so that assistance can be given in disputes between the insurance company and clients. When buying a life insurance, one ought to answer all questions on the policy form correctly which mainly refer to health issues before signing and submitting the forms.   This is mainly because if later it turns out any questions where not answered truthfully, the insurance company can decide not to pay.   Further important points when buying a life insurance include the start and end of the policy, the benefits that might be paid out and those that can become less after a certain age is reached, Clauses regarding age and payments, and the time the company takes to start the running time of the insurance. Car Insurance By law it is mandatory to have car insurance in Argentina. Car insurance in Argentina covers the driver and/or insured person and third parties from damages suffered from fire, theft and accidents. Premiums paid are calculated based on the brand and model of car, usage of the car , geographic location, marital status, sex and age. The peson buying the cover must keep in mind the start and end of coverage, how old a car is, and the value of the parts to be insured   especially if they are to be insured independently. Household Insurance The household insurance in Argentina covers the material as individuals in your household. Examples of what is covered by household insurance are damages due to fire, theft and burglary, water damages, civil responsibility, personal accidents, accidents of domestic employees. Wear and tear of property, damages due to war or natural disasters such as earthquakes and tornados is not covered. Choosing insurance Make sure before deciding with which company to buy an insurance, you know what the financial situation of the company is. Besides the price of the policy the service and reputation of the company should also be important factors to consider when deciding. If to buy directly with an insurance company or through an agent is also another factor. The Argentina Insurance Report provides independent forecasts and competitive intelligence on Argentines insurance industry. It includes BMI’s Insurance Business Environment Rating (IBER), which brings together a number of pieces of relevant quantitative data, together with BMI’s Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries. Argentina’s IBER is a moderately attractive insurance market for foreign insurers. Within the region, the Bahamas has the highest IBER ranking, with a very high score in the risks to realization of potential returns. The competitive landscape, in both the non-life and the life segment, is fragmented. Both segments are open to participation by foreign groups. It is likely that the landscape will change dramatically in the next few years, possibly after considerable consolidation. This means that there is opportunity for cross-border operations that currently have a relatively small presence to become major players in the market. We do not however, expect any completely new market entrants. Although there a strong growth forecasts for Argentina, these are not at the moment translating into high growth rates for the insurance market. (BMI, 2008). The competitive landscape, in both the non-life and the life segment, is fragmented. Both segments are open to participation by foreign groups. It is likely that the landscape will change dramatically in the next few years, possibly after considerable consolidation. This means that there is opportunity for cross-border operations that currently have a relatively small presence to become major players in the market. ` However, completely new market entrants are expected. Economic and political reform if reinvigorated provides positive flow-on effects for the insurance market. Increased transparency has been campaigned on as an issue. However, it remains to be seen if it will be implemented. Although there is a strong growth in Argentina, this is not at the moment translating into high growth rates for the insurance market. (Braga, 1996). SWOT Analysis for Insurance in Argentina (Strength Weakness Opportunity Threats) SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. Internal factors are the strengths and weaknesses internal to the organization. External factors are the opportunities and threats presented by the external environment.The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all key fields; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. The aim of the insurance company ought to be maxinizing the strengths and opportunities and minimizing the weaknesses and threats. (Business help, 2008) Opportunities and threats Opportunities SWOT Analysis influences the Opportunities for the insurance businesses and these can be seen as targets to achieve and exploit in the future for example: Being in a good financial position creates a good reputation for future growth, Skilled and experienced workforce means that they can be moved and trained into other areas and locations of the business, competitor going bankrupt therefore creating a takeover opportunity, availability of broadband technology plus the installed in the area which is useful for Internet use, Increased spending power in the Local/National economy, and moving the insurance services into a new market sector . (Business help, 2008) Threats The final part of the analysis will also be seen as the most feared: the Threats. It has to be done and therefore taking into account the weaknesses, the threats seem too clear. For examples: Large and increasing competition from other insurance companies, Rising cost of Wages, Possible relocation costs, Local authority refusing plans for future building expansion, Increasing interest rates by lenders therefore increases borrowing repayments, and lastly existing covers becoming unfashionable or unpopular. (Business help, 2008) Opportunities for a US Insurance companies. As consolidation of the insurance industries and the quest for economies of scale and critical mass continues companies can still find their ways to certain regions as long as they meet the requirements and laws. (Wray, 2008). Need to Resort to International Law Accordingly, a body of international law, not dependent on the law or interpretation of any one country, has developed as the standard for expropriation claims against a host government. In turn, most political risk insurance policies over the years have required that for there to be an expropriation, the government’s actions must be in violation of this standard of international law. Application of the traditional standard to regulatory takings has proven to be difficult. Because of the â€Å"public purpose† test, normal regulations or change of law is not a wrongful action under international law and therefore is not an insurable event under political risk insurance expropriation Coverage. On the other hand, it is easy to imagine a host government attempting to cloak a wrongful expropriation with the appearance of legitimate regulatory action. (Wray, 2008). The credit derivative market: During the past ten years, credit derivatives have become a basic tool for risk management in the banking sector for both corporate credit and country risk management. Since the mid-1990s, banks have increasingly used credit protection to diversify and reduce corporate and emerging market exposure inherent in their lending activities. Insurance companies have also participated (mostly in the non-emerging market arena) both as providers of protection (to capture higher returns and better spreads), and as buyers of protection (to manage their exposure and diversify their portfolios). Insurance companies buy insurance to transfer resources from good times to bad times.  They do this by pooling risks, e.g., motor vehicle insurance. If population is large and individual risks are independent then aggregate loss is predictable. This enables simple strategies for setting premiums as a mark-up over the expected aggregate loss. Practical considerations  include availability of data for insurance companies, which enables them to estimate the distribution of aggregate losses from their pool of risk. Low enough transactions costs (collecting data, writing policies, settling claims) are what are considered as policies, which make risks attractive. Catastrophe risks, e.g., floods, hurricanes, and earthquakes together with weather risks temperature and rainfall fluctuations are not attractive to many insurance companies. The Catastrophe risks are low-frequency high-severity risks unlike motor vehicle risks, which are high-frequency low-severity risks. Low frequency has probabilities of occurrence and damages are not precisely computed. There is need for a lot more data than when it is high frequency, Variance of loss is high, Premium setting is difficult, and Capital requirements to ensure solvency are large. Markets for Catastrophe Risk A large proportion is not insured or under-insured. Premiums can be high (as high as seven times the expected losses the actuarially fair level). Premiums can change drastically with an event suggesting that probabilities of extreme events is not well established and therefore revised with any new information.   Markets for catastrophe risk do not work very well. Conclusion Recent developments. Congressional legislation now allows insurance carriers and other financial institutions, such as banks and securities firms, to sell one another’s products. More insurance carriers now sell financial products such as securities, mutual funds, and various retirement plans. This approach is most common in life insurance companies that already sold annuities, but property and casualty companies also are increasingly selling a wider range of financial products. In order to expand into one another’s markets, insurance carriers, banks, and securities firms have engaged in numerous mergers, allowing the merging companies access to each other’s client base and geographical markets therefore Argentines can be covered by US insurance companies. This way many insurance companies are able to insure unattractive risks. Insurance carriers have discovered that the Internet can be a powerful tool for reaching potential and existing customers. Most carriers use the Internet simply to post company information, such as sales brochures and product information, financial statements, and a list of local agents. However, an increasing number of carriers are starting to expand their Web sites to enable customers to access online account and billing information, and some carriers even allow claims to be submitted online. Many carriers also provide insurance quotes online based on the information submitted by customers on their Internet sites. In fact, some carriers will allow customers to purchase policies through the Internet without ever speaking to a live agent. In addition to individual carrier-sponsored Internet sites, several â€Å"lead-generating† sites have emerged. These sites allow potential customers to input information about their insurance policy needs. For a fee, the sites forward customer information to a number of insurance companies, which review the information and, if they decide to take on the policy, contact the customer with an offer. This practice gives consumers the freedom to accept the best rate. If this does not make the insurance landscape manageable then it is on the collapse. (Bureau of Labor Statistics, 2008). Work cited: Business Monitor International, (n.d.). Argentina insurance report. Accessed 16thMay 2008 from: http://www.businessmonitor.com/insurance/argentina.html Business Monitoring International (BMI), (2008, March). Argentina insurance report, pages: 31. Accessed 16thMay 2008 from: http://www.researchandmarkets.com/reports/c89667 Michael Braga, Tempa Bay business Journal, (1996, 21st June). Bankers insurance group on EEC Argentina. Accessed 16thMay 2008 from: http://www.bizjournals.com/tampabay/stories/1996/06/24/newscolumn1.html Business help, (2008). SWOT Analysis-Opportunities and threats Analysis. Accessed 16thMay 2008 from: http://www.bizhelp24.com/marketing/swot-analysis—opportunities-and-threats.html Robert Wray. (2008, April). Political risk Insurance Newsletter. Connecticut Avenue, nw suite 350, Washington dc, Volume 4, Issue 1 Advameg Inc, (2007). Argentina forum. Accessed 16thMay 2008 from: http://www.nationsencyclopedia.com/ Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition, Accessed 16thMay 2008 from: http://www.bls.gov/oco/cg/cgs028.htm