Chinese art of the Ching peri essays

Chinese specialty of the Ch'ing peri papers From the most punctual enlightenments of Chinese human advancement, the Chinese have searched out what they accept to be otherworldly flawlessness. This numinous feeling of faultlessness existed inside the individuals themselves, in nature, and between the two too. Workmanship has consistently been a typical methods for the Chinese to accomplish such inward serenity and harmony. In their craft, they focused on the noble characteristics of peacefulness, elegance, and parity. They maintained a strategic distance from disarray, struggle, and every single savage feeling regardless of what the cost. Agitating or progressive types of exploratory craftsmanship were not welcome even right up 'til today. Then again, communicating respectability and internal worth was viewed as a need. It has been legitimately expressed that Chinese craftsmanship isn't only a pastime. It is at last a method of being . To welcome the noteworthiness of craftsmanship completely, we should remember an instruction of Confucius: Raise yourself to the lovely. The Ching time frame, additionally alluded to as the Manchu time frame was an amazingly dynamic one for human expressions. It was a period of examination, safeguarding of antiquated writings, and the gathering of bronzes and artworks. There was no incredible change in the way of painting after the fall of the Ming. An assortment of styles for painters to follow previously existed. Numerous painters changed their very own style by consolidating those styles which went before them. In any case, the most famous Ching painters depended on their own resourcefulness to make styles that even the heaviness of convention couldn't choke. During the late seventeenth and mid eighteenth hundreds of years, most craftsmen followed the instances of Tung Chi-chang. He had confidence in recreating natures external appearance, however communicating his own inward emotions regarding the current matter. The Ching painters considered the old bosses, as Tung Chi-chang recommended to them, so as to find their specialized insider facts. Later they figured out how to us ... <!

Computers in entertainment industry Essay

What is o.s? A working System (OS) is a delegate among clients and PC equipment. It gives clients a domain where a client can execute programs helpfully and effectively. In specialized terms, it is programming which oversees equipment. A working System controls the allotment of assets and administrations, for example, memory, processors, gadgets and data . Definition A working framework is a program that goes about as an interface between the client and the PC equipment and controls the execution of a wide range of projects. History- Early PCs were worked to play out a progression of single undertakings, similar to a number cruncher. Essential working framework highlights were created during the 1950s, for example, occupant screen works that could consequently run various projects in progression to accelerate preparing. Working frameworks didn't exist in their cutting edge and progressively complex structures until the mid 1960s.[5] Hardware highlights were included, that empowered utilization of runtime libraries, interferes, and equal handling. At the point when PCs got well known during the 1980s, working frameworks were made for them comparative in idea to those utilized on bigger PCs. Elements of O.S- Working framework is a huge and complex programming comprising of a few segments. Every part of the working framework has its own arrangement of characterized information sources and yields. Various parts of OS perform explicit undertakings to give the general usefulness of the working framework .Main elements of the working framework are as per the following: Process Management†The procedure the board exercises dealt with by the OS areâ€(1) control access to shared assets like document, memory, I/O and CPU, (2) control execution of uses, (3) make, execute and erase a procedure (framework procedure or client process), (4) drop or resume a procedure (5) plan a procedure, and (6) synchronization, correspondence and halt taking care of for forms. Figure :. Elements of OS Memory Management†The exercises of memory the board dealt with by OS areâ€(1) apportion memory, (2) free memory, (3) re-allot memory to a program when a pre-owned square is liberated, and (4) monitor memory utilization. Record Management†The document the executives undertakings includeâ€(1) make and erase the two records and registries, (2) give access to documents, (3) allot space for documents, (4) keep back-up of records, and (5) secure records. Gadget Management†The gadget the executives assignments took care of by OS areâ€(1) open, close and compose gadget drivers, and (2) convey, control and screen the gadget driver. Insurance and Security†OS ensures the assets of framework. Client confirmation, document traits like read, compose, encryption, and back-up of information are utilized by OS to give essential security. UI or Command Interpreter†Operating framework gives an interface between the PC client and the PC equipment. The UI is a lot of ord ers or a graphical UI through which the client cooperates with the applications and the equipment. Target of O.s- Working framework is framework programming that controls and facilitates the utilization of equipment among the diverse application programming and clients. Operating system intermediates between the client of PC and the PC equipment. The client provides an order and the OS makes an interpretation of the order into a structure that the machine can comprehend and execute. Operating system has two principle objectives†(1) to make the PC framework advantageous and simple to use, for the client. (2) to utilize the PC equipment in a productive manner, by dealing with the subtleties of the activities of the equipment. Kinds of O.S †Operating system are grouped into various sorts relying upon their capacity of processingâ€(1) Single client, (2) Multiuser, (3) Multitasking, (4) Multiprocessing, (5) Real time, and (6) Embedded. Single User and Single Task OS is for use by a solitary client for an independent single PC for playing out a solitary errand . Working framework for Personal Computers (PC) are single-client OS. For instance, on the off chance that the client is altering a report, at that point a record can't be imprinted on the printer at the same time. Single client OS are straightforward working framework intended to oversee each undertaking in turn. MS-DOS is anâ example of single client OS. Figure :A solitary client playing out a solitary errand Single User and Multitasking OS permits execution of more than one assignment or procedure simultaneously. For this, the processor time is partitioned among various errands. This division of time is likewise called time sharing. The processor switches quickly between forms. For instance, the client can tune in to music on the PC while composing an article utilizing a word processor programming. The client can switch between the applications and furthermore move information between them . Windows 95 and every single later form of Windows are instances of performing various tasks OS. Figure :A solitary client performing multiple tasks (giving print order and making drawings) Multiuser OS is utilized in PC organizes that permit same information and applications to be gotten to by various clients simultaneously . The clients can likewise speak with one another. Linux, UNIX, and Windows 7 are instances of multiuser OS. Figure : Multiple clients taking a shot at associated PCs Multiprocessing OS have at least two processors for a solitary running procedure. Handling happens in equal and is likewise called equal preparing. Every processor takes a shot at various pieces of a similar errand, or, on at least two unique undertakings. Since execution happens in equal, they are utilized for fast execution, and to expand the intensity of PC. Linux, UNIX and Windows 7 are instances of multiprocessing OS. Continuous OS are intended to react to an occasion inside a foreordained time. These working frameworks are utilized to control forms. Preparing is done inside a period requirement. Operating system screens the occasions that influence the execution of process and react in like manner. They are utilized to react to inquiries in regions like clinical imaging framework, modern control frameworks and so on. LynxOS is a case of ongoing OS. Installed OS is inserted in a gadget in the ROM. They are explicit to a gadget and are less asset concentrated. They are utilized i n apparatuses like microwaves, clothes washers, traffic control frameworks and so on. Instances of O.S †UNIX and UNIX-like working frameworks Unix was initially written in get together language.[6] Ken Thompson composed B, primarily dependent on BCPL, in view of his involvement with the MULTICS venture. B was supplanted by C, and Unix, revised in C, formed into an enormous, complex group of between related working frameworks which have been powerful in each cutting edge working framework (see History). The UNIX-like family is a different gathering of working frameworks, with a few significant sub-classes including System V, BSD, and Linux. The name â€Å"UNIX† is a trademark of The Open Group which licenses it for use with any working framework that has been appeared to fit in with their definitions. â€Å"UNIX-like† is generally used to allude to the huge arrangement of working frameworks which take after the first UNIX. Four working frameworks are confirmed by The Open Group (holder of the Unix trademark) as Unix. HP’s HP-UX and IBM’s AIX are the two relatives of the first System V Unix and ar e intended to run distinctly on their particular vendor’s equipment. Conversely, Sun Microsystems’s Solaris Operating System can run on numerous sorts of equipment, including x86 and Sparc servers, and PCs. Apple’s OS X, a substitution for Apple’s prior (non-Unix) Mac OS, is a mixture bit based BSD variation got from NeXTSTEP, Mach, and FreeBSD.

Database Technologies

A Holistic View on DBMS / Database Technologies Data is at the centre of most of today’s businesses and companies must pay close attention to how they store, access and use data. One of the systems at the heart of current data management is a database management system.But as with most technology products out there, people have the ability to choose from a wide range of database technologies and systems. Picking the most convenient and relevant for your business can be difficult. © Shutterstock.com | Bakhtiar ZeinThis guide will explain what database management systems are and what are the benefits of using one. We’ll also explain some of the most common distinctions between these technologies and provide a few tips on how to select the best system for your business.INTRODUCTION TO DATABASE MANAGEMENT SYSTEMSWhat are database management systems (DBMS)? First, it’s good to understand the different components of DBMSs. At the core of a DBMS is a database, which is essentially an organized collection of data. The data in the database is modeled in a manner, which helps support processes that seek information.Creating a database is simple, but you also need to be able to use the database for different functions. This is where database management systems come into play.A DBMS is a computer software application, which helps to interact with the user of the database, different applications, as well the database itself in order to gather and analyze data. A DBMS allows interaction with the data, whether it is to create, analyze, delete or change the data within a database.While the basic function of DBMSs are essentially the same, there are certain distinctions between different solutions. Therefore, DBMSs are often further categorized into separate groups based on:the model they support,the type of device they run on,the language they use to access the database,the internal engineering of the software.What do database management systems do?Understanding the idea behind database management systems is easier if you understand the use of these systems. The DBMS provides users four core functions. These are the ability to create, retrieve, update and manage data. These functions are enabled by the way in which a DBMS helps manage three core aspects:the data,the database engine, which allows data to be accessed, locked and modified,the database schema, which defines the logical structure of the database.Management of these foundational element s allows DBMSs to perform different procedures related to the four core functions mentioned above. With a DBMS, users can perform a variety of actions including:Data managementData definitionTransaction supportCurrency controlRecoveryFacilities to import and export dataUser managementBackupPerformance analysisIn essence, a DBMS provides users a centralized view of data. For example, businesses might use a DBMS to collect information on customers, but also for operational purposes such as accounting. As we’ll see in the section below, this can have many benefits.Examples of DBMSsWe’ll be looking at different database technologies later on in the guide, but it’s helpful to mention some known examples of DBMSs. Well-known DBMSs include applications like:MySQLPostgreSQLOracleSybaseIBM DB2Check out the YouTube video below to understand the basics of DBMSs: WHY DATABASE MANAGEMENT SYSTEMS ARE IMPORTANT?As the above shows, a DBMS can have a number of functions. The complexity of thes e systems has evolved and in general, the software is often divided into two main categories: the general-purpose DBMSs and the special-purpose DBMS. Since DBMSs can conduct complex tasks or perform more specified roles, countless groups of people benefit from them.Typical database management system users include:Database administratorsDatabase designersApplication programmersEnd usersYet, it would be too easy to simply write-off DBMSs as software only IT-personnel need to use. There are huge benefits to using DBMS technologies, which means understanding the different systems is crucial for any business person or individual working with data.The benefits of database management systemsPerhaps the most crucial advantage of DBMSs is how it allows the end users of the application, as well as the programmers, to access and use the same data. More importantly, this happens without jeopardizing data integrity. A DBMS provides data independence; it offers flexible access to data and guarant ees access without forcing the user to necessarily understand where the data is located. To users, this kind of data independence can remove the concern over any possible changes to the structure of data.A business could easily add new information to the database, as its operations develop and change, without disruption of the existing system. Data loss or operational problems will be limited by using a DBMS.A DBMS can also enhance the integrity and security of the data. Since it’s possible to allow different levels of access to the same data, the data won’t be easily compromised. As most DBMSs also mean data is located in a physically different location from the user, the security of the data increases further.In addition, the core functions include tasks such as backup and recovery of the data. This guarantees data isn’t jeopardized while it’s being accessed and modified. Overall, it ensures uniform administration procedures for data.Finally, it must be mentioned that sinc e DBMSs can be operated remotely, it’s possible to outsource data administration. This can be especially useful for small businesses, which might not have the resources to conduct data administration themselves.TYPES OF DATABASE TECHNOLOGIESAs mentioned briefly above, there are different database technologies. Each technology offers its own pros and cons and below is a look at some of the most common technologies.Single- vs. multi-file databasesA notable difference between technologies can be whether they are single-file or multi-file databases.Single-file databaseA single-file database is the simplest database structure, as it consists of unified information, which can often be used and accessed in a pre-determined manner. Complexity in a single-file database is not commonplace.While this type of technology can provide benefits to narrowly defined data, which organizes in a limited manner, it can offer limited possibilities for use when dealing with large sets of data. For exampl e, different single-file databases don’t interact with each other, even though they might consists of the same information. Therefore, when you update one database, your other databases won’t automatically include these changes and could thus contain wrong information. Single-file databases must also be all in the same location, which can cause difficulties in storage and increase the security risk of the data.Multi-file databaseAs we’ve increased collection of data, the complexity of data has also risen. Much of the data we use is not in the above, unified format. A multi-file database links different data formats together and allows a more flexible way of organizing and using data. It provides users with the ability to link between different data sets and make sense of them.Furthermore, a multi-file database provides the advantage of splitting the database and using it from different locations. This provides the technical advantage of speed, as multiple users can access the information quicker than if it was located in the same physical location or disk.Relational vs. non-relational databasesAs the above distinction might have shown, a majority of today’s DBMSs are multi-file databases. But these can be further organised in a different manner. One of the most common options to choose between is relational vs. non-relational databases.Relational databaseThe most basic model for DBMSs is the relational database model, often referred to as RDBMS. This means that the multi-file databases mentioned above, are linked together and data from separate files can be used and accessed from different locations.The strengths of this model are similar to the strengths of DBMSs. The relational database structure is flexible and reliable. Since it’s such an established technology, the costs and risks associated with it are small.Nonetheless, there are weaknesses to RDBMSs, with the majority of them relating to specific performance issues. Relational models require pre-determined formats, which can limit the complexity and often result in issues if information is added with a different format. There’s also lack of support for complex base types, such as drawings.Note that the common relational databases are often referred to as SQL databases. The SQL refers to the programming language (Structured Query Language) and many RDBMSs, such as Oracle and MySQL, use this language for creating and processing databases.Non-relational databaseThe opposite of a relational database is a non-relational database. Since relational databases are often referred to by their programming language, SQL, the non-relational databases are known as NoSQL databases.These models are designed to bypass the problem of accessing data, which is not typically structured in a standard model. It therefore provides more scalability and flexibility to relational databases. In fact, non-relational databases can often be stored in a single-file format, because the databases are d ocument-oriented rather than structured.Non-relational technologies allow the use of non-structured data, such as videos, or photos. These datasets can be categorized in a number of ways, with pre-determined fields.The downside is that this kind of database categorization requires extra processing power. The requirements of the technology can add a strain, not only for the physical requirements, but also for the cost effectiveness of the system.Centralized vs. distributed databasesDatabases can also be stored in different manners. The most common distinction between different ways database systems are organized is between centralized and distributed databases.Centralized databaseDatabases were typically centralized, which means stored, located and maintained in a single location. In the past, this was due to the technological limitations of computers. Under this approach, the data can be accessed from different places, but the data itself is stored in a central computer or database, in a single database file.Centralized databases benefit from enhanced data integrity and minimized data redundancy, since the data is only found in a single location there’s only one primary market of it. Securing this database can be easier, as you only need to secure the single data location. Overall, the maintenance cost of the data is minimized.On the other hand, the database access relies quite heavily on network connectivity. Since the data is only stored in a single location, problems in access can result in total loss of data access. Naturally, faults in storage could potentially lead to full loss of data, which could be catastrophic for businesses.Distributed databaseTo counter some of the problems with centralized databases, distributed databases have become a popular option. In these systems, the data is stored in multiple physical locations. Furthermore, the distributed databases can be divided into homogenous and heterogeneous databases. The system includes a multi-f ile system, controlled by a single, central DBMS.The benefits of distributed systems are flexible in the sense that they provide more security in case there’s a fault in the system. Retrieving lost data is typically easier and faster in a distributed system. Often they also provide better access, as data can be accessed via multiple networks.The downside is that the creation of a distributed system can be more complex. These DBMSs are based on a hierarchical structure, making it harder to maintain data. Data redundancy can increase in a distributed system. Furthermore, since the data is scattered and provides multiple access points, securing the system can be harder.Column-oriented vs. row-oriented databasesFinally, DBMSs can differ in how the data is stored. In most instances, DBMSs are either column-oriented or row-oriented.The differences are more evident once you understand that relational databases typically provide data in a two-dimensional table. This database is essentiall y a selection of columns and rows. But in order to access this data, DBMSs have to use either a column-oriented or row-oriented approach of collecting the data. This means data is either read as a column format or a row format.Column-oriented databaseA column-oriented system means the data is stored as sections of columns of data. This means a single column consists of the values and datasets of that column and there can be a number of these columns within the database.It’s typically used in database management dealing with data warehouses, clinical data and customer relationship management (CRM) systems. The approach is beneficial for these types of tasks because column-orientation helps normalize the data and read different data sets relating to the same field efficiently.But since a column-oriented database focuses on a whole column, the more complexity your data queries involve, the harder it can be to perform using this approach.Row-oriented databaseOn the other hand, a row-o riented database sees the data stored in sections of rows, rather than columns. The aim is to limit the effort in receiving data regarding a particular query. In fact, many relational database management systems tend to favor a row-oriented approach. For example, online shopping websites often use row-oriented databases for fetching product information.While this approach can provide data efficiently and quickly, it isn’t efficient when you require the use of a whole dataset. For example, if you were looking for information over personnel earning a specific salary, gathering this data would take an enormous amount of time under a row-oriented approach.SELECTING A DATABASE MANAGEMENT SYSTEMAs the above shows, there are a number of options available when it comes to database management systems. Whilst the main benefits of DBMSs remain the same, the tasks and needs of the user are essential in determining the right type of technology.Overall, when you are deciding on a DBMS, you shou ld consider these three aspects:The complexity of data â€" if you are operating multi-file databases, you definitely want to consider using appropriate and the more complex DBMSs available. In fact, under these circumstances it might be a good idea to consider outsourcing your database management. On the other hand, if you are dealing with a single-file database, you are most likely able to manage it without a complex system or understanding of DBMS.The structure of data â€" you also need to consider the way the data is structured. As the above showed, if you are looking for a DBMS for customer database management, a column-oriented software is better than row-oriented. It is important to determine not just how the data is stored, but also how you’ll use it.The feature requirements â€" naturally, you must also keep in mind feature requirements, such as operational requirements. Certain DBMSs don’t operate on platforms such as Linux or Windows, while others could use a programmin g language you are not aware of. Furthermore, since certain approaches, such as distributed databases require much more from the hardware itself, it might not be a cost effective option for your business.Finally, you should consider the kind of development and support the DBMS provides for you. This is especially important for business users, as your needs might evolve as years go by. You don’t want the DBMS to restrict your ability to upgrade later and additional software support can be crucial to ensure your business isn’t damaged while you sort out the issues with the DBMS.

The Modern Middle East - 641 Words

The Modern Middle East Student’s Name University The Modern Middle East The Middle East is a region of Western Asia and Egypt; some of the countries in this region are Turkey, Saudi Arabia, Iran, and Iraq. According to Anderson, Seibert Wagner (2006), this region is of vast geo-economic importance and since ancient times, it has been a center of world affairs. This part matters to almost all superpowers. The geographic factors that contribute to the strategic importance of the Middle East are; trade routes, oil, terrain or geography, ideology, and faith. The Middle East has always been a destination for both tourists and entrepreneurs. One of the geostrategic success factors to the†¦show more content†¦Soviet ships and submarines debouched into the Mediterranean is controlled by the Turkish Dardanelles, according to Anderson William (2000). The rugged mountains landscape and miles of deserts from Caucasus to the Himalayas, in the Middle East, provide protection to the Middle East from any land invasion that would come from the Soviet republic. Military facilities and bases of the Soviet are closer to the Middle East; this implies that Soviet control of this region is of strategic importance as it shields the Middle East from the West. The geostrategic importance of Middle East is also derived from its psychological and political significance, Pollack (2011). It is a symbolic area serving as the center of the shrines of the three world’s greatest religions, Islam, Judaism, and Christianity. The influence of Islam extends from this region to Morocco and profound inside Africa. Therefore, Middle East has changed foreign policies of many world states. In conclusion, the strategic importance of Middle East benefits most if not all nations in the World. However, the parameters to measure this have to be in a globally extended framework. This means that any conflict, especially that which may between the West and the East, May ultimately spell the Middle East doom by defeating its strategic importance, Anderson William (2000). However, the Middle East is to maintain its geostrategic importance if foreign relations between the West and the East andShow MoreRelatedThe Role Of Modern Nationalism And The Middle East1639 Words   |  7 PagesIn this essay I will be discussing the role of modern nationalism and how this ideology affected the transition from colonial rule to independence in Asia, Africa, and the Middle East, as well as the problems that plagued them since 1945, and how these different nations have solved them. I will be specifically concentrating on the nations of India, Algeria, and Iran. In the wake of World War Two, the power of Asian nationalism was irrepressible. Many new nations emerged all throughout this massiveRead MoreThe Impact Of Modern Public Sphere On The Middle East1322 Words   |  6 PagesDuring the 19th century the Middle East found themselves with a problem of establishing an identity or nationalism. Through defensive developmentalism the Middle East had sought to counter the imperialistic approach of the West, yet still begin to modernize their land. The world was developing rapidly and the Middle East wanted to ensure that they did not fall behind. However, the approach backfired and the Middle East found themselves struggling to establish their own modern identity and falling victimRead MoreModern Challenges Of The Middle East Around 4000 Years Ago Essay1612 Words   |  7 Pages Modern Challenges Shady Rizkalla REL/134 Mr. Firpo Carr January 6, 2016 Modern Challenges Judaism impelled in the Middle East around 4000 years ago (Brill, 2012). Abraham, who was Hebrew, is considered as the father of the Jewish confidence since he propped up the focal thought of the rule that there is one God. During the period, numerous individuals worshiped numerous divine beings particularly in the Middle East. Abraham and his wife Sarah had confidence in God in spite of the factRead MoreTransition From Empire to Modern State System in the Middle East1957 Words   |  8 PagesIntroduction: Middle East considers one of the most studied areas in the world due to its rich history of politics, social, economic, and its culture and civilization. Its borders are still arguable geographically, generally in the west it starts from morocco until Iran in the east, however, many scholars don’t agree on including Turkey either as a Middle Eastern or as a European country (Milton-Edwards, 2006. P: 4). The origin of the name was invented by the colonies as a necessity to describeRead MoreAnalysis Of James L Gelvin s Book, The Modern Middle East876 Words   |  4 PagesGelvin’s book, The Modern Middle East, he not only refers to this absolutism but also furthers it by using it in a historical construct. Gelvin replaces individuals with the collective and the collective here is nations. As human beings, we cannot neglect this absolute truth. Hence we cannot deny that the occurrence of one country occupying another, that country leaves its’ â€Å"footprint† on the other. Thusly, Gelvin’s crux is to challenge the reader’s notions of the Middle East by focusing on theRead MoreWestern Culture And Policies That Have Shaped The Modern World1523 Words   |  7 PagesWestern culture and policies have shaped the modern world, especially the Middle East, in many ways. Since the sixteenth century, the nations of Western civilization have been the driving wheels of modernization. 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In fact, the 17th and 18th centuries in the Middle East were periods marked by severe financial crisis, increased decentralization, and stronger external control by western nations. It was clear that members of Ottoman and Persian military and bureaucrat ic organizations needed to prove themselvesRead MoreMiddle Eastern Women Rights in Islamic Society1419 Words   |  6 PagesWomen Rights of the Middle East â€Å"Life is full of unhappiness and most of it caused by women (Harik and Marston 11)†. For women in the Middle East life is faced with great and unequal odds, as their human rights are limited, due to Islamic beliefs and that of patriarchy. From their daily actions at home to their physical appearance, Middle Eastern women are portrayed as quiet, faceless women veiled from head to toe. While this image is just another stereotype, women in the middle do face many obstacles

Plagiarism And Academic Integrity - 999 Words

Academic integrity is a set of coherent principles and values that each student should adhere to while pursuing a higher education. These values endorse the very mission of academics in its entirety. integrity, trustworthiness, hard-work, and persistence are all behaviors that interpret personal and professional attributes of Academic integrity (Missouri, 2017). Plagiarism plays a very detrimental part in violation these principles which can lead to serious consequences academically. Plagiarism have different meanings base upon understanding and knowledge of what plagiarism really means. Plagiarism is taking someone else’s text or statement and claim it to be your own and not giving credit to the original author (Sue Thompson,†¦show more content†¦, 2017). †¢ â€Å"Making a video using footage from others’ videos or using copyrighted music as part of the soundtrack or Re-mixing or altering copyrighted images, video or audio,† (Turnitin L. , 2017). †¢ â€Å"Performing another person’s copyrighted music or Recording audio or video in which copyrighted music or video is playing in the background and Composing a piece of music that borrows heavily from another composition† (Turnitin L. , 2017). The best practice to follow to avoid plagiarism is simple, get the proper approval and usage authorizations and cite your work accurately. (Turnitin L. , 2017) Self-plagiarism Many people do not realize the Self-plagiarism exist merely because its your own work, how can you steal from yourself. Self-plagiarism transpires when a student submits the work they owned previously more than once, or combines portions of previous work for other assignments (Sue Thompson, 2008). This type of practice is considered unethical and dishonest if turned in without authorization from every instructor /professors this work is to be submitted (Sue Thompson, 2008). My Experience with Plagiarism My experience with Plagiarism was not intentionally done. During my writing process, I started my paper by doing my outline and rough draft for the introduction, body andShow MoreRelatedPlagiarism And Academic Integrity : Plagiarism1305 Words   |  6 PagesPlagiarism is a topic that is consistently brought up in many areas of education.1 In every syllabus presented to students, there is a section that refers to plagiarism and academic integrity. Plagiarism can be defined as â€Å"the act or instance of stealing or passing off ideas or words of another as one’s own.†2 Despite this being an important piece of information; students may overlook this material and still plagiarize. In a study from the University of Toronto, 90% of senior pharmacy students admittedRead MorePlagiarism And Plagiarism For Academic Integrity995 Words   |  4 Pages In my opinion, academic integrity refers to the principles associated with being honest and responsible in one academic work. Academic integrity is a vital concept for all academic institutions throughout the globe especially in an era where academic dishonesty is gaining momentum. Cheating and plagiarism represent unethical academic behaviors against which higher academic institutions have been battling against. Nowadays, plagiarism and cheating tools have been greatly influenced by new technologicalRead MoreAcademic Integrity And Student Plagiarism1622 Words   |  7 PagesThis essay concerns the issues of academic integrity as plagiarism and buying essays. This work addresses, much attention will be paid to the background of breaches of academic integrity. Students’ behavior will be described and thoroughly analyzed. This essay will provide an understanding that current educational system itself creates prerequisites for such violations. Nowadays, American students try to subvert the educational system by using plagiarism in essays. The educational system tries toRead MoreWhy Plagiarism Is Important For Academic Integrity?1731 Words   |  7 PagesWhat is the Role of Plagiarism in regards to Academic Integrity? Plagiarism, â€Å"the act of using another person s words or ideas without giving credit to that person: the act of plagiarizing something† (Merriam-Webster, 2017), is said to be reaching epidemic proportions (Park,2003). Throughout history, plagiarism has been an issue, however, the severity and the implications where not fully understood until the development of the printing press in the 17th century. Now in the age of information sharingRead MorePlagiarism Is Not The Right Way903 Words   |  4 PagesPlagiarism has been around for a long time, nowadays it’s easier to tell if someone plagiarizes. Plagiarism is not the way to go it is not worth the risk and definitely has it consequences. Plagiarism is an act or instance of using or closely imitating the thoughts of another author without authorization and passing it as your own (Dictionary.com). Plagiarism is the work of those who are not willing to put in the time and effort it takes to write original content. Which can be a form of cheatingRead MorePlagiarism : Plagiarism And Plagiarism815 Words   |  4 Pages There are many types of plagiarism, including several scenarios of inadvertent and deliberate plagiarism. This essay will discuss how plagiarism is defined, the various types of plagiarism, why plagiarism is such a serious problem, the impact of the internet on academic integrity, and how plagiarism can be avoided. It will also provide suggestions on ways to eliminate both inadvertent and deliberate plagiarism. There are several ways to define plagiarism. One such definition, according to the RegisRead MoreAction Plan and Annotated Bibliography on Maintaining Academic Honesty1390 Words   |  6 PagesAction plan: maintaining academic honesty Academic dishonesty is a serious issue for anyone regardless of the discipline they are pursuing or the contextual factors. It undermines the quality of the end product such as the services that the person engaging in academic dishonesty will provide in the future. It also beats the purpose of going through academic institutions that provide facilities and facilitators in the education process. Academic dishonesty is, therefore, wrong in all forms and isRead MoreEssay about Academic Integrity - 31056 Words   |  5 PagesAcademic Integrity Paper University of Phoenix October 8, 2012 Academic Integrity This paper will speak of Academic Integrity. What it means to use it correctly and the consequences when wrongfully used. I will voice my views along with the views of others on how Academic Integrity is good rule to follow to write a paper. The paper will also be speaking of the disciplinary action that will be put into place and how students have to go through steps to completing those disciplinary terms. Read MoreThe Silent Harm of Plagiarism Essay1009 Words   |  5 Pagesmind when we think about plagiarism, many people may think of theft or the act of stealing intellectual property. According to Webster-Merriams’ dictionary, plagiarism is â€Å"the act stealing and passing off (the ideas and words of others) as one’s own† (Webster-Merriam). Webster seems to have left a little something out. Plagiarism is not just the act of stealing one’s work. It is also the result of ethical deterioration of academic integrity. In the discussion of plagiarism, a controversial issue isRead MorePlagiarism and the Deterioration of Ethical Values Essay1007 Words   |  5 PagesWhat comes to ones mind when we think about plagiarism, according to Webster-Merriams’ dictionary plagiarism is â€Å"the act stealing and passing off (the ideas and words of others) as ones own† (Webster-Merriam). Webster seems to have left a little something out, plagiarism is not just the act of stealing ones work, it is also the result of ethical deterioration of academic integrity. In discussion of plagiarism, a controversial issue is whether plagiarism is taken serious enough and what the severity

Leadership Styles Between Western And Non Western Cultures

‘ What are the differences of managers’ leadership styles between the Western and Non-Western cultures ?’ 1. Abstract The aim of this paper is to provide an overview of †¦. 2. Introduction Managers in today’s world are important assets to the multicultural organisations. Leadership styles of managers are highly important in terms of managing the team of followers, which has a correlation to the productivity and results that the team would achieve in the future. By having good management, it contributes to the success of the organisation. Hence, it is vital to identify the different leadership styles especially in different cultures to suit the working environment and culture of the organization. In the present multicultural global business industry, cultural differences can come in the way of the success of project completion (Anbari, Khilkhanova, Romanova, Umpleby , 2009) . It has been claimed that rigid leadership does not promote motivation and creativity, therefore, managers should lead by flexible leadership and be culturally sensitive, adapting to different cultures, for the team to be able to move forward and reach their goals (Anabri et al. 2009). The w ay a manager’s leadership takes place also affect’s the experience of the employees at work and the relationship between the manager and the employee. Jariya (2012, p66) states that ‘different cultures differ in the values they endorse, people from these cultures often interpret the same managerial practicesShow MoreRelatedDiversity in Western vs Eastern Transformational Leadership1342 Words   |  6 Pagesstudy in 1985 on leadership in the western world which focused on western leaders and how they influenced their subordinates. What he found was that leaders across organizations shared similar attributes. He referred to this style as â€Å"transformational leadership†. Through this style, leaders â€Å"inspire followers to transcend self-interest for the good of the organization and can have an extraordinary effect on their followers† (Robbins Judges, 2012:188). Bass discovered that cultures that used thisRead MoreIntroduction. In The Current D ynamic World, It Is Important1622 Words   |  7 Pagesunderstand the traditions of different nations and their practices. This paper compares China’s national culture with that of New Zealand, their influence on the respective corporate cultures, management structure, and strategies while also incorporating organization management theories. There is no other country where the economy has rapidly and fundamentally changed like it has in China. The national culture has changed, and managers in China today feel that they have little to learn from the West. A keyRead MoreDiversity Training And Cultural Sensitivity Training Essay897 Words   |  4 Pagesmerging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. Multinational leaders must become adapt to leading a culturally diverse workforce if the organization is to become transcontine ntal. Therefore, there must be an emphasis on diversity training and cultural sensitivity training across the organization, especially among members of leadership. InclusiveRead MoreCross Cultural Communication Skills And Communication1318 Words   |  6 PagesIntroduction This paper will give a brief overview and then analyze the different cross cultural communication skills, including; oral, written, formal, informal, verbal and non verbal. It will then compare and contrast two focus areas of cross culture communication; culture and ethics. This paper will then conclude its findings Brief overview of cross-cultural communication skills Oral communication is transmitted through speech. It includes personal conversations, speeches, meetings, telephoneRead MoreAnalysis of Three Non-Western Cultures on Diversity Leadership2780 Words   |  12 Pagesan organization. Globalization can be defined as a process by which national and regional economies, cultures and societies become integrated through a world network of trade, communications, transportation and immigration (Beck, 2000). For organisations to succeed in the increasingly competitive global stage there must be diversity leadership; a change is necessary from the traditional leadership values and norms. This is because to manage diversity is more than just acknowledging the differenceRead MoreBusiness Communication Is Different in Pakistan Compared to Western Countries! Agree/Disagree?1519 Words   |  7 PagesBusiness Communication is different in Pakistan compared to western countries Communication is any behaviour, verbal or nonverbal, that is perceived by another. (Dwyer 2006) business communications are purposive interchanges of ideas, opinions, information, instructions and the like, presented personally or impersonally by symbol or signal as to attain the goods of organization. (Rosenblatt, Cheatham Watt 1992) Today, the organization is growing more complex and the business is growing larger,Read MoreChallenges Facing Female Head Teachers Phenomenological Study1537 Words   |  7 PagesTakoradi Metropolis in the Western Region of Ghana Women just as their male counterparts, have a right to actively participate in leadership in any facets of the society. In fact, they are permeating every domain of activities with assertiveness and proven competence, and making in – roads into hitherto male monopoly of executive management roles in organizations especially in the developed countries. This study will seek to gain an insight into the leadership styles adopted by female head teachersRead MoreChallenges Facing Female Head Teacher s Phenomenological Study1537 Words   |  7 PagesTakoradi Metropolis in the Western Region of Ghana Women just as their male counterparts, have a right to actively participate in leadership in any facets of the society. In fact, they are permeating every domain of activities with assertiveness and proven competence, and making in – roads into hitherto male monopoly of executive management roles in organizations especially in the developed countries. This study will seek to gain an insight into the leadership styles adopted by female head teachersRead MoreLeading A Multicultural Group. Cornelius Cash Essay1010 Words   |  5 Pages Leading a Multicultural Group Cornelius Cash Grand Canyon University LDR804-Leading across Cultures October 5th, 2016 Leading in a Culturally Diverse Global Society As organizations become increasingly global, the success of organizations is dependent on the leader’s skills in merging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. MultinationalRead MoreCorporate Social Responsibility : Csr1680 Words   |  7 Pagesof managers and employees finishing with consumer perceptions and stakeholder vs. shareholder views.. CSR is a highly controversial topic due to disagreements surrounding the field. Werther and Chandler (2014) defines CSR as ‘†¦ the relationship between corporations and the societies with which they interact†¦ includes the responsibilities that are inherent on both sides of these relationships†. The framework behind CSR tends to be broad with the ideas surrounding its importance changing from business

Our Commitment To Net Neutrality Samples †MyAssignmenthelp.com

Question: Discuss about the Our Commitment To Net Neutrality. Answer: Introduction The name of this news article is Our commitment to net neutrality. This article says about the rule of EU regarding net neutrality that was applied on the month of April in the year 2016. It has followed the EU Regulation. According to this article this regulation is considered to be a great achievement for a market called Digital Single Market (Open Internet, 2017). This concept of net neutrality allows the users of internet to get access to the type of web content that. They can even distribute the content of the web as per their choices. The rules of EU regarding the neutrality of net make sure that, same provisions are applied across the entire Europe. Net neutrality principle is regarding no throttling or blocking of the web content, services as well as applications (Bourreau, Kourandi Valletti, 2015). This article gives a clear idea about what net neutrality is. This net neutrality gives the European the permission to access open internet. The Internet Service Providers are no t allowed to discriminate internet traffic. This rule will treat all the internet traffic in an equal manner. NRAs will make sure that internet access quality will reflect the technological advancements. NRA will take necessary measures so that end users get to enjoy the access to open internet and get good service quality. This article discusses and assesses net neutrality in terms of the four main classical theories of ethics. The net neutrality is assessed in terms of Utilitarianism, Deontology, Virtue ethics and Contract theory. Utilitarianism Theory The Utilitarianism Theory of ethics says that an act or social policy is morally permissible only if it provides happiness to maximum of the people. It focuses on the consequences of an activity or policy. If it generates happiness among the maximum number of people then it is considered to be ethically correct (Broad, 2014). Net neutrality will allow the users to access the open internet freely. They will not be prevented from accessing any website. This will help the society to grow and develop. They will be able to generate more ideas. The society will improve its creativity and technological development perspectives. Internet is the connection of networks. It is not owned by any particular individual or group. According to this theory, the Internet Service Providers do not have the right to discriminate any content or deny the access to a particular group of users. The act of net neutrality is supported by the Utilitarianism Theory because it will give happiness to a large societ y (Ross, 2013). When people will be able to access the internet without any problem then they will be updated about the recent trends and technologies. It will make communication very simple and easy for them. As a result the net neutrality act will spread happiness in Europe. Therefore it can be said that according to the Utilitarianism Theory, this act of net neutrality is morally and ethically correct as it will generate happiness among a large number of people and an entire society. The Utilitarianism theory is in favour of this act of net neutrality. Deontology Theory The Deontology Theory of ethics says that if people follow their duties and responsibilities in a proper manner then it is an ethical act (Vaughn, 2015). This theory does not deal with the consequences of an act or social policy. It does not depend on the happiness of maximum number of people. The net neutrality act means that there will not be any type of discrimination (Baynes, 2013). The act of discrimination is not ethical. The service providers should not have the power to prevent access to several competitor applications. If net neutrality is not provided then ethical duty will not be carried out properly because discrimination is not morally correct. This net neutrality gives the European the permission to access open internet (Krmer, Wiewiorra Weinhardt, 2013). The Internet Service Providers are not allowed to discriminate internet traffic. This rule will treat all the internet traffic in an equal manner. NRAs will make sure that internet access quality will reflect the tech nological advancements. NRA will take necessary measures so that end users get to enjoy the access to open internet and get good service quality. Deontology theory of ethics will support the net neutrality concept because it is against discrimination and it promotes equality. Everyone will get equal access to the open internet. Therefore the Deontology Theory of ethics says that the act of net neutrality is morally permissible and ethically correct act. Virtue Theory The Virtue Ethics theory focuses o the individual character of a person. Virtue ethics does not give importance to consequences or duties (Van Hooft, 2014). Its main focus is the intrinsic motivational force that makes a person good. This theory says that in order to obtain a good outcome there must be internal motivation. The internal motivation gives a sense of happiness from within (Athanassoulis, 2013). The people try to perform some act because it is enjoyable for them. This theory is not based on rules and it gets adapted depending on various situations. This article tells what net neutrality is. The Internet Service Providers are not allowed to discriminate internet traffic. This rule will treat all the internet traffic in an equal manner. This net neutrality gives the European the permission to access open internet. This article also says that NRAs will make sure that internet access quality will reflect the technological advancements. NRA will take necessary measures so that end users get to enjoy the access to open internet and get good service quality. This act will promote equality and it will help the individuals to get motivated and become ethical in nature. People will get access to information and develop themselves and become better human beings. Contract Theory The Contract theory says that people will tend to act in an ethical manner and carry out all the activities in a moral way (Fried, 2015). When there is a contract then the person will feel obligated to form an ethical society. It is extremely ethical to think about the benefit and advantages of the society. The modern version of this theory takes justice to be the basis of an ethical act (K?szegi, 2014). The principle of justice says that every person has got equal rights to get the needed information. This theory does not pay attention to what is fair to every party. This theory believes that if a society needs to sacrifice for its future benefits then that type of sacrifices will be totally acceptable. The internet users pay a certain amount of money to access the internet and the Internet Service Providers on the other hand take the money to provide the users with a certain bandwidth limit. This contract is followed. According to this Contract Theory, the act of net neutrality is ethically correct as it gives access to all web contents to the users of the internet. Conclusion This essay concludes that the act of net neutrality is ethically correct according to all the theories of ethics. This essay assessed net neutrality in terms of Utilitarianism, Deontology, Virtue ethics and Contract theory. This essay describes the concept of all the four classical theories of ethics. Net neutrality provides equal access to the internet to everyone. Therefore it promotes equality and does not appreciate the concept of discrimination. References Athanassoulis, N. (2013).Virtue ethics. AC Black. Baynes, K. (2013).Critical theory. Blackwell Publishing Ltd. Bourreau, M., Kourandi, F., Valletti, T. (2015). Net neutrality with competing internet platforms.The Journal of Industrial Economics,63(1), 30-73. Broad, C. D. (2014).Five types of ethical theory(Vol. 2). Routledge. Fried, C. (2015).Contract as promise: A theory of contractual obligation. Oxford University Press, USA. K?szegi, B. (2014). Behavioral contract theory.Journal of Economic Literature,52(4), 1075-1118. Krmer, J., Wiewiorra, L., Weinhardt, C. (2013). Net neutrality: A progress report.Telecommunications Policy,37(9), 794-813. Open Internet. (2017).Digital Single Market. Retrieved 12 September 2017, from https://ec.europa.eu/digital-single-market/en/eu-actions-net-neutrality Ross, D. (2013).Foundations of ethics. Read Books Ltd. Van Hooft, S. (2014).Understanding virtue ethics. Routledge. Vaughn, L. (2015).Doing ethics: Moral reasoning and contemporary issues. WW Norton Company.

Political Humor free essay sample

This paper takes a look at political humor or satire from an American point of view. This paper takes a look at notable satirical cartoons or events through American politics. It also examines the impact that they might have had on political events. The concept of satire as a universal political tool is also dealt with. From the paper: Most historians accept that political satire inspired the American Revolution. One of the foremost satirists was Dr. Jonathan Mayhew. According to the March 7, 1818 edition of the Niles Weekly Register, Dr. Mayhew was well known in both Europe and America for his publication of a seven sermons during the reign of King George II (Butler, 2000). The most notable is a 1750 sermon on the subject of passive obedience and nonresistance. In it, both Saintship and Martyrdom of King Charles I are proposed.

That Confusion

5 Cases of Which/That Confusion 5 Cases of â€Å"Which†/â€Å"That† Confusion 5 Cases of â€Å"Which†/â€Å"That† Confusion By Mark Nichol Perhaps you are confused by grammatical discussions of restrictive and nonrestrictive or essential or nonessential clauses. (I know I can never keep those terms straight.) Never mind the nomenclature; when you’re editing your own writing, or someone else’s, simply read the phrase that follows a which (or who) or a that and determine whether the phrase that follows is parenthetical (it can be removed with no change of meaning to the sentence) or it is integral to the sentence. Here are five sample sentences followed by explanation of the problem and a revision. 1. â€Å"The inventor of the Etch A Sketch toy that generations of children drew on, shook up, and started over, has died in France, the toy’s maker said.† The use of that to serve as a grammatical bridge between the name of the product and the phrase describing how it was used implies that more than one type of product called the Etch A Sketch exists; the one that children used as described is, according to this sentence construction, one of two or more types. When that is replaced with which, and which is preceded by a comma, the sentence structure makes clear that the existence of other Etch A Sketch products is not implied: â€Å"The inventor of the Etch A Sketch toy, which generations of children have drawn on and shaken up before starting over, has died in France, the toy’s maker said.† (Note, too, that I have altered the wording explaining how the toy is used and have changed the tense to indicate that the product is extant.) 2. â€Å"It was a time when tensions were growing between the black and Jewish communities that had previously been aligned in efforts to affect social change.† The point of this sentence is not what had occurred between certain communities of black and Jewish people, but what the entire black and Jewish communities had experienced. The restrictive force of that must be replaced by the parenthetical purpose of a comma followed by which: â€Å"It was a time when tensions were growing between the black and Jewish communities, which had previously been aligned in efforts to affect social change.† 3. â€Å"Police are probing allegations of incidents involving the renowned astrophysicist who is paralyzed.† The phrase â€Å"the renowned astrophysicist who is paralyzed† distractingly refers to the concept of astrophysicists who are not paralyzed. However, â€Å"who is paralyzed† is merely additional information appended to the factual statement, and should be attached with a comma followed by who (the equivalent of which): â€Å"Police are probing allegations of incidents involving the renowned astrophysicist, who is paralyzed.† 4. â€Å"The company’s incident-response team can quickly and reliably identify events, which threaten an organization’s security posture.† Here and in the example below, the problem in the previous sentence is reversed: This statement implies that all events are threatening. Replacing the comma and which with that corrects that impression by restricting the meaning to refer specifically to threatening events: â€Å"The company’s incident-response team can quickly and reliably identify events that threaten an organization’s security posture.† 5. â€Å"The court ruled this week that a law passed last summer, which gave five top government-office holders immunity from prosecution, was illegal and must be revoked.† This sentence construction suggests that the summer, rather than the law, granted immunity. Removal of the bracketing commas and replacement of which with that integrates the central point into the framing sentence: â€Å"The court ruled this week that a law passed last summer that gave five top government-office holders immunity from prosecution is illegal and must be revoked.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:75 Synonyms for â€Å"Angry†Used To vs. Use Toâ€Å"Least,† â€Å"Less,† â€Å"More,† and â€Å"Most†

Computing globalization Essay Example | Topics and Well Written Essays - 2000 words

Computing globalization - Essay Example The argument over globalization is vigorous, often fervent, and has from time to time been aggressive. The issues are decisively significant for the upcoming economic development and interests of all the individuals of the sphere. The proof robustly supports the ending that development requires a policy structure that outstandingly includes a point of reference towards combination into the global financial system. This puts obligations on three sets: those who are most accountable for the procedure of the global economy, mainly the administrations of the developed nations; those who decide the scholarly environment, which incorporates this spectators but also administration and non-government associations and persons; and the administrations of the developing nations who stand the major liability for economic strategy in their nations (Fischer, n.d., p.3). Globalization is a procedure which influences all economies to changeable levels and has had both off-putting and optimistic manipulations on economic development and employment, depending on the financial tendency of a given financial system, mainly in global trade, the set of macroeconomic strategies approved and how they are explained in the overall growth procedure and economic progression. The study is, thus, an endeavor to examine the general impact of globalization and macroeconomic strategies on service and scarcity (Heintz, 2006, p.iii). The study also talks about democratization which has been a main international occurrence during the 20th century (Potter, 1997, p.1). The study discusses the limitations that the sheer existence of systems of social demeanor or environmental principles will not unavoidably in itself develop social situations for the working populace or reduce ecological destruction (Eisenbl'tter, n.d, p.1). Brief Review of Literature: As stated by Cox (1997), the capital products vary in significant ways from the other type of keys acquired by producers. Their occupation, united with labor, is of palpable vital importance to the achievement of a producer's operations (Cox, 1997, p. 49). The kind of advantages and proximity between consumers and manufacturers that is said to make possible the technology attainment procedure, are most probable to be significant when the technology concerned is costly, multifaceted and rapidly mounting (Cox, 1997, p. 50). As assessed by Thai, Rahm and Coggburn (2007), world structure theory views globalization as a procedure through which private enterprise extends

S.W.O.T. Analysis of Kroger Co Term Paper Example | Topics and Well Written Essays - 1250 words

S.W.O.T. Analysis of Kroger Co - Term Paper Example There are 2,461 multidepartment stores and supermarkets owned by Kroger, and 954 of them have fuel centers. Apart from the supermarkets, Kroger operates 375 fine jewelry stores and 784 convenience stores (GlobalData, 2012). All the jewelry stores of Kroger are located in malls, which are situated in leased locations. Eighty-three convenience stores are operated under franchise agreements. Close to 51 percent of the convenience stores managed by subsidiaries were initially operated by company-owned facilities. The convenience stores provide a limited variety of general merchandise and an assortment of staple food, and, in general cases, sell gasoline. Kroger’s supermarkets stock an average of 11,000 private label items. The company also operates 39 manufacturing plants. The plants consist of 10 bakery or deli plants, 17 dairies, 3 beverage plants, two cheese plants, two meat plants, and 5 grocery product plants. The supermarkets are usually operated under format, which entail c ombination drug and food stores (combo stores), price impact warehouses, marketplace stores, and multi-department stores (Thomson Reuters, 2012). SWOT Analysis Description SWOT analysis is described as a strategic planning tool utilized in the assessment of strengths, weaknesses, opportunities, and threats (SWOT) involved in a business venture or in a project. It entails specifying the aim of the project or the business venture and recognizing the external and internal factors that are unfavorable and favorable to accomplishing that objective. The purpose of any SWOT analysis is to recognize the main external and internal factors that are crucial to accomplishing the objective. SWOT analysis categorizes main pieces of information into two major classes, internal and external factors. Internal factors include the weaknesses and strengths internal to the company or the organization. External factors entail the threats and opportunities presented by the outside environment (Research an d Markets, 2012). The internal factors can be seen as weaknesses or strengths depending on their effect on the objectives of the organization. It is important to note that what may look, as strength to one objective can be a weakness for another objective. The factors may entail all the 4P’s (product, place, price, and promotion), finance, personnel, and manufacturing capabilities. The external factors may include technological change, socio-cultural changes, legislation, competitive position, changes in the marketplace, and macroeconomic matters. A matrix is used to represent the results of the SWOT analysis. However, SWOT analysis has its weaknesses. For instance, it may tend to influence companies or organizations to gather lists rather than reflect on what is crucial in accomplishing objectives. The resulting lists presented are not critical and lack clear prioritization. For instance, weak opportunities can appear to balance the strong threats (Research and Markets, 2012 ). SWOT Analysis of Kroger Co. Strengths Kroger Co. has passed through the economic recession with little success because of its strong market position. Kroger held the first and second market share position in 39 out of the 42 major markets in the year 2009. The company’s brand equity offers a strong competitive advantage over the other companies. In 2009, it was listed 82nd in Global 500 Brand Raking. This strength will continue serving the

Mauritius National Pension Fund Financial Analysis

Mauritius National Pension Fund Financial Analysis The National Pension Fund and its financial implications on the economy of Mauritius Chapter 1: Introduction The philosophy of the National Pension Fund (NPF) includes the idea that one ought to earn a reasonable proportion after pension age of what one earned during ones working life. If you have contributed to the NPF and built up your pension points, you will get a pension which, when added to your old-age pension will be a reasonable. The National Pension Fund scheme is proposed as another mandatory saving for retirement. Once it is set up, the NPF will fit into Pillar 2 of the Multi-Pillar Model of the World Bank. The NPF nevertheless will not replace provident funds or retirement mutual funds, but rather improves saving channels for future retirees. Mauritius is found in the developing countries group where contractual savings, savings with insurance companies and pension funds exceed 40 percent of Gross Domestic Product and which represent a greater potential force in the domestic financial system. Pension funds account for 75 percent of contractual savings. The pension system is a balanced and well-managed multi-pillar. In Mauritius there have not many authors that have write specifically on that subject, that is, financial implication of National Pension Fund on the Mauritian economy. I have mainly used the research made by other analysts in other countries and try to apply it on the Mauritian economy. Obviously the result will not be the same, but try to make an estimate of it. Objectives of that Project: Analyse the overall financial implication of NPF Testing the financial effect of NPF on national savings Estimating the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF Chapter Outline Chapter one gives a brief overview of how the project is carry on. Chapter two makes an overview of the National pension fund, its evolution, structure and its financing source as well as government expenditure and the future of NPF. Chapter three is the literature review, that is, what writers around the globe have commented on the pension system. Chapter four is the research methodology. The research is carried out using regression equation to examine the financial implication NPF on our variables. Chapter five then come the analysis based on the results obtained, that is the financial effect of NPF on national savings and the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF. Then finally chapter seven will include suggestions and conclusions. Chapter 2: Literature Review Introduction Pension funds is be defined as forms of institutional investor, which collect, pool and invest funds contributed by sponsors and beneficiaries to provide for the future pension entitlements of beneficiaries (E PhilipDavis 1995). Pension fund offer individuals the mean to collect saving over their working life so as to finance their consumption needs in retirement, either by means of a lump sum or by provision of an annuity, while also supplying funds to corporations, households (via securitised loans) or governments for investment or consumption. Bodie(1990a) has formalized pension funds function as a form of retirement income insurance. E Philip Davis (1995) suggests that pension funds perform a number of the functions of the financial system more efficiently than banks or direct holdings. Their growth complements that of capital markets and they have acted as major catalysts of change in the financial landscape. But this is not the only reason for growth. It is also a consequence of fiscal incentives and benefits to employers, as well as growing demand arising from the ageing of the population. Pension funds are typically sponsored by employers, such as companies, public corporations, industry or trade groups; accordingly, employers as well as employees typically contribute. Funds may be internally or externally managed. The pension system is commonly divided into three pillars. The first pillar is the pay-as-you-go system based on payments by public institutions which are mainly funded by tax revenues. The second pillar constitutes fully funded pension funds with mandatory membership and the third pillar is based on fully funded pension saving schemes with voluntary membership. In a pay-as-you-go system, each generation pays for the costs of the currently retired in return for a commitment for the same treatment during its own retirement. Workers who spend their entire work and retirement life under a PAYGO system with constant tax rates will earn a real return on their contributions equal to the growth in the workforce plus the growth in the real wage (Samuelson, 1958, and Aaron, 1966). Pension funds provide millions of people in the world security and comfort in old age. Pension funds represent the savings of millions of people, and as Paul Myners says, the ability of funds to invest these assets effectively has a profound impact on their economic well being. Because so many people depend on pension funds to provide for their futures, ensuring the funds serve the needs of their members is a priority for Government. The social security system on the other hand as stated by law, guarantees people covered by its provisions either because they perform an occupational activity or meet the requirements established for non-contributory type social security, as well as dependent members of the family or similar, adequate protection in the contingencies and circumstances. Social Security has been defined as the protection which society provides for its members through a series of public measures against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with children. In the Social Security system, the money you pay into the system gets immediately paid back out to the people who are currently getting Social Security checks. The Social Security tax has been raising more money than is needed to pay for current benefits, in order to build up a surplus to help finance the retirement of the Baby Boom generation. The money is used in a sense to finance the government deficit, just like any other money the government borrows, Dean Baker (1998). The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. So Social Security will be the foundation of your retirement income. Thats because: You wont outlive your Social Security retirement benefit. It will be there for you for the rest of your life. Your Social Security benefit wont lose its value. From time to time, Social Security benefits are adjusted so they always keep pace with inflation. Why National Pension Fund? Worker myopia, or lack of foresight poor planning occurs because people give too little considerations to their future economic needs when making decisions about saving for retirement. Most people seem to have a natural inclination to live for today and avoid thinking about old age and death. Hence, they give very little systematic thought to the financial issues of old age until they come face to face with them. By the time they recognize they may have a problem when they retire, it is usually too late to fix. Government intervention through NPF has help people set aside a portion of their earnings when they are working so that they have an adequate income when they retire. Without compulsory contributions for retirement, myopic workers would not save enough to ensure an adequate retirement income and poverty would result. Another rationale for the existence of the compulsory contribution to the NPF is to protect the prudent that saves for retirement against those who do not save. Under a purely voluntary system some will contribute, others will not. As Boulding (1958) puts it in his argument, those who do not insure will have to be supported anyway-perhaps at lower levels and in humiliating and respect-destroying ways when they are in their non-productive phase of their life, but that they will escape the burden of paying premiums when they are in their productive phase. In fairness to those who insure voluntarily and in order to maintain the self-respect of those who would not otherwise insure, contributions for retirement should be made compulsory. Hence, mandatory contributions are necessary to achieve the retirement savings results that people need to have so as to have an adequate standard of living in their retirement years. Pension funds are also an important source of capital accumulation that can be used for different purposes as the build up the basic of national infrastructure, power stations and electric networks, Olli E. Kangas (2006). The Finnish case demonstrates that it was possible to unify social policy goals with the economic goals of building up modern industrial market economies. The Finnish experience has serves as a good example of how social policy has been successfully used as a developmental strategy, Mkandawire (2001). Pension funds are not only vital to the pension holders they provide for. They are also key players in the economy as a whole. Government Budget Pension funding issues have an important, but often hidden, impact on the finances of state governments, J. Fred Giertz (2003). In most countries, contributions to retirement funds are made by employers and employees each year. Yet, there is no requirement in the short run that these contributions be sufficient to fully fund the systems. Governments always ensure that pension payments are actually made to retirees, regardless of the level of contributions, as they are generally the funders of last resort. If pension systems are under funded, governments must deal with this problem sooner or later through additional contributions to the systems. If systems are over funded, government resources can be redirected from pensions to other government programs,J. Fred Giertz (2003). It is seen that private pensions reduce public pension spending in the longer term, once private schemes are mature. Private pensions is likely to increase budgetary pressures in the short term: if workers contributions go into their individual pension accounts, they cannot be used to pay for the pensions of the older generation; thus, governments have to finance pensions for the transition generation through taxation or borrowing, Nicholas Barr (2001). This will in a way affect the government budget. Unsustainable pension systems can be a problem to fiscal stability, economic growth, and poverty reduction. The need for pension reform has become pressing as demographic aging has strained pension systems around the world, leading to large expenditures, large deficits, and high contribution rates. In many cases the pension system has become a source of fiscal and macroeconomic instability, a constraint to economic growth, and an ineffective and or inequitable source of retirement income. J. Fred Giertz (2003)suggests thatnot only are pension asset changes large in comparison with state budgets, they are also growing and becoming more volatile. This trend is likely to continue and the relative size of state pension obligations is increasing. This suggests that pension funding is becoming an increasingly important aspect of state government. He also states that ‘state pension funding today is no sounder than in the early 1990s. This is not necessarily a cause for alarm, but it is a source of concern. Pension funding will be an increasingly important demand on state finances in the up coming years. In the G-10 (1998) report, it states that the ageing of populations could have dramatic effects on government finances. Under current policies, government spending in the G-10 countries is projected to rise sharply over the next several decades for several reasons. Per capita expenditure for the elderly is high in the areas of public retirement benefits and, in some countries, welfare support. Public expenditure on medical and health support for the elderly is also high and has been rising. If advances in medical technology come at ever increasing cost and if the incidence of health expenditure on the elderly continues to rise, the fiscal burden could become substantial in some countries. At the same time, government revenues will be adversely affected as the baby boom generation moves from its high income generating years to retirement. Countries whose revenues are tied more to consumption or value added taxes will tend to experience less of a deterioration in revenues than those that depend more heavily on income or payroll taxes. This would create a severe drag on national saving at a time when saving will be crucial to fostering the growth of labour productivity. Impacts of ageing population Norman Vincent Peale quotes that: â€Å"Age-based retirement arbitrarily severs productive persons from their livelihood, squanders their talents, scars their health, strains an already overburdened Social Security system, and drives many elderly people into poverty and despair. Ageism is as odious as racism and sexism.† Barry Bosworth (2003) argued that slowing economic growth and population aging in the major industrial countries have placed increased financial strain on pay-as-you-go (PAYGO) public pension systems. Retirement pensions have become a serious fiscal concern in most industrialized countries. Pensions are largely paid for from tax revenues and it is foreseen that contributions will need to be raised substantially during the coming decades. The World Bank (1994) states that high taxes are harmful to economic growth, since they reallocate resources to the informal sector, thereby reducing output in the more efficient formal market sector of the economy. The reasons are that many people are now nearing retirement age and that the populations nowadays live longer and have fewer children than in the past. Nicholas Barr (2001) argued that the effect on funded schemes is more restrained but equally unavoidable. When a large generation of workers retires, it liquidates its financial assets to pay for its pensions. If those assets are equities, sales of financial assets by the large pensioner generation will exceed purchases of assets by the smaller younger generation, leading to falling equity prices and, hence, to lower pensions. Alternatively, if those assets are bank accounts, high spending by the large pensioner generation will generate inflationary pressures and again reduce the value of pensions. Domestic savings The main views of the life-cycle theory stipulate that individuals try to smooth consumption over their lifetime, Brumberg and Modigliani (1954). Normally savings follow a hump shaped pattern, that is, income is relatively low when individuals are either very young or retired as during their working life savings rate is higher .Ageing Population increases the proportion of households with a relatively lower savings rate in the economy which leads to a decrease in private savings. Estimates of the impact of a change in the age structure of the population on private savings, shows that population ageing will be likely to reduce savings. As regard to public savings, population ageing is likely to exercise considerable pressure on public finances, Weil (2006). In the situation of the pension schemes of the current pay-as-you-go pension schemes that exist in many states, an ageing population implies that the number of beneficiaries increases while the number of contributors to the system decreases. The ageing population will also adversely affect public finances through higher healthcare and long-term care costs, given that older populations are more likely to make use of healthcare facilities, which, to a large extent, are provided by the public sector. Both microeconomic and macroeconomic studies find that the observed age profile of saving generally conforms with the life-cycle model, which implies that saving rates rise over a workers active career and then decline in retirement. Compared with macroeconomic analyses, microeconomic studies tend to show smaller variation in saving rates over the life cycle, this may be of the highly skewed distribution of wealth and saving across households, Ralph C. Bryant (2004). At a micro level, company or other obligatory pension funds can implement enforced saving by deferring wages and salaries, thereby reducing risk of a low replacement ratio. At a macro level, the increase in saving is not usually one-to-one, as increased contractual saving via pension funds is typically partly or wholly offset by declining flexible saving, E Philip Davis (1995). The remaining effect most likely results from liquidity constraints on some individuals (especially the young), who are unable to borrow in order to offset obligatory saving via pension funds early in the life cycle. It can also be anticipated that, even in a liberalized financial system, credit constraints will affect lower income individuals particularly severely, as they have no assets to guarantee and also have less secure employment. Therefore forced pensions saving will tend to increase their overall saving particularly markedly, Bernheim and Scholz (1992). On the other hand Samwick (2000) found a lower rate of saving in countries with extensive PAYG systems. Agosin (2002) extended their analysis and shows that the rise of saving was concentrated in the business sector, and that the net change in household saving was small. Implications for equilibrium real interest rates The forecasted declines in savings make the expected consequence of ageing on the equilibrium real interest rate ambiguous. If investment falls faster than domestic savings at each level of aggregate income, the real interest rate that clears the market for loanable funds is expected to fall, since it is difficult for savers to find profitable investment opportunities, J.C. Trichet (2007). On the other hand, if domestic savings were to fall faster than investment then the real interest rate would rise to reflect the relative scarcity of financial funds. This likely decline in interest rate that equalizes savings and investment could be identified developed financial markets. Even though the actual impact of the evolving demographic structure on the equilibrium real interest rate in the capital markets is something that is going to occur with a considerable lag, some economists have suggested that expectations of such developments may have already started to exert some influence on the pricing of bonds. Among other things, these analyses suggest that ageing could have contributed to the â€Å"flattening† of the yield curve that has been observed over the recent past, J.C. Trichet (2007). However as it is based on the assumption that capital market participants are perfectly forward looking, an assumption which is questionable, it should be treated with a great deal of caution: if it is true that financial markets tend to overreact to short term phenomena, the effects of ageing on the yield curve could be limited, DellaVigna and Pollet (2005). It has to be taken into consideration that these quantitative simulations require a number of qualifications. On one hand, some real world factors may make the true decline in the equilibrium real interest rate larger than estimated in macroeconomic models. For instance, older people may save more than predicted by the life cycle theory as they may want to leave a bequest to their children, putting further downward pressure on the equilibrium rate. The degree of risk aversion may also change with age as if the older people were systematically more risk averse than the young one, the accumulation of precautionary savings would lead to a higher than predicted savings rate and a lower than predicted real rate, Bakshi and Chen (1994).Moreover private savings rates may be significantly affected by pension reforms, Miles (2002). Pressures on Prices Hans J Blommestein (1998) states that concerns have been expressed that the growing demand for high quality private securities like equity and corporate bonds, associated with the growth of advance funded pension systems in search of investment opportunities (thereby increasing the demand for financial assets) and falling public sector borrowing requirements (thereby reducing the supply of government securities), would put strong upward pressure on the prices of financial assets. Here, the combination of the widespread privatisation of state owned enterprises and reform of pension systems brings the opportunity of killing two birds with one stone. Pension reform, which would increase the demand for equity, and privatisation, which expands the supply, at the same time permits a more balanced growth in private securities markets, at least over the medium term. In a somewhat longer term perspective, population ageing may have an impact on the risk premium, that is, the difference betwee n the returns on stocks and the yield on bonds. As asset preferences vary across age groups, the ageing of the baby boom generation could affect both absolute and relative positions of stock and bond prices. On average, middle age is the portion of the life cycle when saving rates are highest. Moreover, middle aged workers generally are more able and willing to hold a riskier portfolio; that is, one weighted more heavily towards stocks than bonds. This is a consequence of two factors: first, while still working, a stockholder is better able to make up for any bad equity returns; second, middle aged workers have a longer time horizon and thus are willing to accept more risk in exchange for the expectation of higher returns. Moreover, higher demand for stocks relative to bonds should increase the price of stocks relative to bonds, thus decreasing the equity premium. Thus, some have hypothesized that an ageing population would cause the equity premium to increase. But if the age of the population is increasing at least in part because life span is increasing, and thus time horizons are lengthening, then the ageing of the population does not necessarily imply that average risk aversion should be increasing and risk premium on stocks should be rising. After the baby boomers begin to retire, saving rates would tend to fall, stock and bond prices to decline, and the equity premium to rise as baby boom retirees shift their portfolios away from stocks toward bonds, Hans J Blommestein (1998). Population age structure can influence the demand for different classes of financial market assets both because of its effect on saving and because young, middle aged, and elderly savers may seek to hold their assets in different forms. Empirical studies have uncovered evidence that population age structure affects stock market prices and the real returns of different classes of financial assets, but the consistency of this evidence is not overwhelming. It is unclear whether the effects of demographic influences on asset prices and returns are large relative to the effects of other and less predictable determinants of prices and returns, Ralph C. Bryant (2004). Implications of population ageing for the conduct of monetary policy The life-cycle theory stipulates that , individuals during their working lives accumulate financial wealth in order to finance their consumption during retirement. As a consequence, populations who are near to retirement age will tend to have higher wealth to income ratios. Simultaneously, expected imbalances in publicly financed pension schemes make it possible to consider that the increasing number of retirees would depend more on their own accumulated wealth, as opposed to public pension provisions, to maintain their consumption levels. Consequently, the fraction of the population exposed to asset price fluctuations could increase with ageing, Young (2002). Bean (2004) argues that longer life expectancy would presumably strengthen this effect. Therefore, the transmission channel of monetary policy may be affected by ageing. In particular, the so called wealth channel, which links asset prices to consumption, may gain relative importance and play a vital role than in the past, G10 (2005). Miles (2002) points out that the monetary policy multiplier would probably rise with population ageing, mainly as a result of the increased wealth channel and greater price impact of monetary policy decisions. In spite of this, he also mentions that an older population is less likely to be credit constrained, especially when the pension system is reformed towards more funded systems. This might reduce the effectiveness of the credit channel. Depending on the relative importance of these channels, monetary policy could, in principle, become more or less effective with ageing. Miles suggests that the first effect is expected to dominate. A move towards demographic structure in which the population accounts for an increasing elderly population is expected to generate a gradual but persistent change in savings habits. This may results in an impact on the demand for all classes of assets even though certain sector of the capital market are likely to be affected more substantially than others. If, for example, older people are more risk averse and prefer to hold financial assets paying fixed income returns such as government securities, then the demand for government bonds would tend to increase relative to riskier investment options, such as equity, Bakshi and Chen (1994) and De Santis and Là ¼hrmann (2006). In this situation, where a larger part of households wealth is invested in nominal assets, price stability would be even more important for households, G10 (2005) and Bean (2004). Stable prices ensure that the real value of both pension entitlements and savings is maintained and prevent arbitrary redistributions of income and wealth to the detriment of the most vulnerable groups in society, in particular, pensioners. It is likely that, as a significant fraction of wealth is accumulated in real estate and financial assets, households exposure to asset price movements will tend to increase. This might coincide with a situation in which a large fraction of the population in their old age dis-saving phase are disposing assets in order to finance consumption during retirement. In this respect, some authors have warned that, when the baby-boom generation retires and starts to dissave, excess supply in financial markets could lead to a significant decline in asset prices, the consequences of which might be felt by the entire population, Siegel (1998), Abel (2001) and (2003). This view is known as the â€Å"asset meltdown† hypothesis. Yoo (1994) estimated that asset prices may drop by as much as 15% as a result of demographic change alone. This is why a credible commitment to maintaining price stability and, as a reflection, an orderly financial environment is and will remain so important for maintaining the standard of living of people, particularly for the poorest and the most vulnerable. Investment of Pension Fund The rapid growth of pension funds in many countries, and the stimulus they are providing to the growth of capital markets, both suggest that their activities as financial intermediaries merit considerable attention, E Philip Davis (2000). Pension funds have an impact on the stability of financial markets in several ways, most significantly through their investment behavior. Since early withdrawal of funds is usually restricted or forbidden, pension funds have long term liabilities, allowing holding of high risk and high return instruments. Accordingly, monies are intermediated by pension funds into a variety of financial assets, which include corporate equities, government bonds, real estate, corporate debt (in the form of loans or bonds), securitised loans, foreign holdings of the instruments mentioned above and money market instruments and deposits as forms of liquidity. Hellwig (1990) suggest that financial institutions can form long term relationships with borrowers, which reduce information asymmetry and hence moral hazard. Apart from economies of scale these considerations have arisen in the literature mainly for debt finance and for banks. Whereas the importance of information asymmetries and incomplete contracts is equally recognised for equity finance, the role of financial institutions as counterparts is less well developed. Equally, institutional investors such as pension funds may not rely on the same information and control mechanisms as banks. The role of pension funds is clearly not to facilitate exchange of goods, services and assets directly. This is because, unlike banks, money market funds, and to a lesser extent long term mutual funds, they do not offer liquid liabilities. Nevertheless, pension funds have had an important indirect role in boosting the efficiency of the financial systems, by influencing the structure of securities markets. This effect on micro structure links to their demand for liquidity, i.e. to transact in large size without moving the price against them, anonymously, and at low transactions costs. Pension funds provide risk control directly to households via the forms of retirement income insurance they provide, an advantage which largely reflects the unusual (among financial intermediaries) link of pension funds to employers. To assist in undertaking this risk control function they diversify assets as noted above and also act in securities and derivatives markets to hedge and control risk. As institutional investors, pension funds are well placed to use derivatives and other means of risk control; many innovations have been introduced or developed specifically to cater for their demand (Bodie 1990b, 1999). E Philip Davis (1995a) suggests that as pension funds focus mainly on government bonds and high grade corporate bonds, while banks tend to monopolise small business financing. And Lorenzo Bini Smaghi (2006) states that investing wisely matters for long term economic wellbeing, and that the portfolio allocation decision is of paramount importance in order to maintain living standards in the old age. Pension funds are the fastest growing of all financial institutions. They now cover half the labor force and represent one-eighth the financial assets of the entire household sector, Vincent P. Apilado (1972). The size of pension funds has also had an impact on the structure of financial markets: countries with large funded pension schemes tend to have highly developed securities markets; in countries with small pension-fund sectors, capital markets are relatively underdeveloped (the equity market in particular, Hans. J. Blommestein (1998). Living Standard M.  PONDS  (2003) states that the raison dà ªtre of wage indexed defined benefit pension funds is to provide insurance against standard of living risk after retirement, based on intergenerational risk sharing. Pension funds necessarily have to accept mismatch risk in providing this kind of insurance. Mismatch risk taken by the pension fund is risk for the funds stakeholders. The material living standards of tomorrows working and retired people will depend on the goods and services produced by those who will be working at the time. Changes in retirement income financing might alter the relative living standards of workers compared with retirees, but only later retirement could have a large effect in increasing living standards for both, Peter Hicks (2004). O Mauritius National Pension Fund Financial Analysis Mauritius National Pension Fund Financial Analysis The National Pension Fund and its financial implications on the economy of Mauritius Chapter 1: Introduction The philosophy of the National Pension Fund (NPF) includes the idea that one ought to earn a reasonable proportion after pension age of what one earned during ones working life. If you have contributed to the NPF and built up your pension points, you will get a pension which, when added to your old-age pension will be a reasonable. The National Pension Fund scheme is proposed as another mandatory saving for retirement. Once it is set up, the NPF will fit into Pillar 2 of the Multi-Pillar Model of the World Bank. The NPF nevertheless will not replace provident funds or retirement mutual funds, but rather improves saving channels for future retirees. Mauritius is found in the developing countries group where contractual savings, savings with insurance companies and pension funds exceed 40 percent of Gross Domestic Product and which represent a greater potential force in the domestic financial system. Pension funds account for 75 percent of contractual savings. The pension system is a balanced and well-managed multi-pillar. In Mauritius there have not many authors that have write specifically on that subject, that is, financial implication of National Pension Fund on the Mauritian economy. I have mainly used the research made by other analysts in other countries and try to apply it on the Mauritian economy. Obviously the result will not be the same, but try to make an estimate of it. Objectives of that Project: Analyse the overall financial implication of NPF Testing the financial effect of NPF on national savings Estimating the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF Chapter Outline Chapter one gives a brief overview of how the project is carry on. Chapter two makes an overview of the National pension fund, its evolution, structure and its financing source as well as government expenditure and the future of NPF. Chapter three is the literature review, that is, what writers around the globe have commented on the pension system. Chapter four is the research methodology. The research is carried out using regression equation to examine the financial implication NPF on our variables. Chapter five then come the analysis based on the results obtained, that is the financial effect of NPF on national savings and the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF. Then finally chapter seven will include suggestions and conclusions. Chapter 2: Literature Review Introduction Pension funds is be defined as forms of institutional investor, which collect, pool and invest funds contributed by sponsors and beneficiaries to provide for the future pension entitlements of beneficiaries (E PhilipDavis 1995). Pension fund offer individuals the mean to collect saving over their working life so as to finance their consumption needs in retirement, either by means of a lump sum or by provision of an annuity, while also supplying funds to corporations, households (via securitised loans) or governments for investment or consumption. Bodie(1990a) has formalized pension funds function as a form of retirement income insurance. E Philip Davis (1995) suggests that pension funds perform a number of the functions of the financial system more efficiently than banks or direct holdings. Their growth complements that of capital markets and they have acted as major catalysts of change in the financial landscape. But this is not the only reason for growth. It is also a consequence of fiscal incentives and benefits to employers, as well as growing demand arising from the ageing of the population. Pension funds are typically sponsored by employers, such as companies, public corporations, industry or trade groups; accordingly, employers as well as employees typically contribute. Funds may be internally or externally managed. The pension system is commonly divided into three pillars. The first pillar is the pay-as-you-go system based on payments by public institutions which are mainly funded by tax revenues. The second pillar constitutes fully funded pension funds with mandatory membership and the third pillar is based on fully funded pension saving schemes with voluntary membership. In a pay-as-you-go system, each generation pays for the costs of the currently retired in return for a commitment for the same treatment during its own retirement. Workers who spend their entire work and retirement life under a PAYGO system with constant tax rates will earn a real return on their contributions equal to the growth in the workforce plus the growth in the real wage (Samuelson, 1958, and Aaron, 1966). Pension funds provide millions of people in the world security and comfort in old age. Pension funds represent the savings of millions of people, and as Paul Myners says, the ability of funds to invest these assets effectively has a profound impact on their economic well being. Because so many people depend on pension funds to provide for their futures, ensuring the funds serve the needs of their members is a priority for Government. The social security system on the other hand as stated by law, guarantees people covered by its provisions either because they perform an occupational activity or meet the requirements established for non-contributory type social security, as well as dependent members of the family or similar, adequate protection in the contingencies and circumstances. Social Security has been defined as the protection which society provides for its members through a series of public measures against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with children. In the Social Security system, the money you pay into the system gets immediately paid back out to the people who are currently getting Social Security checks. The Social Security tax has been raising more money than is needed to pay for current benefits, in order to build up a surplus to help finance the retirement of the Baby Boom generation. The money is used in a sense to finance the government deficit, just like any other money the government borrows, Dean Baker (1998). The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. So Social Security will be the foundation of your retirement income. Thats because: You wont outlive your Social Security retirement benefit. It will be there for you for the rest of your life. Your Social Security benefit wont lose its value. From time to time, Social Security benefits are adjusted so they always keep pace with inflation. Why National Pension Fund? Worker myopia, or lack of foresight poor planning occurs because people give too little considerations to their future economic needs when making decisions about saving for retirement. Most people seem to have a natural inclination to live for today and avoid thinking about old age and death. Hence, they give very little systematic thought to the financial issues of old age until they come face to face with them. By the time they recognize they may have a problem when they retire, it is usually too late to fix. Government intervention through NPF has help people set aside a portion of their earnings when they are working so that they have an adequate income when they retire. Without compulsory contributions for retirement, myopic workers would not save enough to ensure an adequate retirement income and poverty would result. Another rationale for the existence of the compulsory contribution to the NPF is to protect the prudent that saves for retirement against those who do not save. Under a purely voluntary system some will contribute, others will not. As Boulding (1958) puts it in his argument, those who do not insure will have to be supported anyway-perhaps at lower levels and in humiliating and respect-destroying ways when they are in their non-productive phase of their life, but that they will escape the burden of paying premiums when they are in their productive phase. In fairness to those who insure voluntarily and in order to maintain the self-respect of those who would not otherwise insure, contributions for retirement should be made compulsory. Hence, mandatory contributions are necessary to achieve the retirement savings results that people need to have so as to have an adequate standard of living in their retirement years. Pension funds are also an important source of capital accumulation that can be used for different purposes as the build up the basic of national infrastructure, power stations and electric networks, Olli E. Kangas (2006). The Finnish case demonstrates that it was possible to unify social policy goals with the economic goals of building up modern industrial market economies. The Finnish experience has serves as a good example of how social policy has been successfully used as a developmental strategy, Mkandawire (2001). Pension funds are not only vital to the pension holders they provide for. They are also key players in the economy as a whole. Government Budget Pension funding issues have an important, but often hidden, impact on the finances of state governments, J. Fred Giertz (2003). In most countries, contributions to retirement funds are made by employers and employees each year. Yet, there is no requirement in the short run that these contributions be sufficient to fully fund the systems. Governments always ensure that pension payments are actually made to retirees, regardless of the level of contributions, as they are generally the funders of last resort. If pension systems are under funded, governments must deal with this problem sooner or later through additional contributions to the systems. If systems are over funded, government resources can be redirected from pensions to other government programs,J. Fred Giertz (2003). It is seen that private pensions reduce public pension spending in the longer term, once private schemes are mature. Private pensions is likely to increase budgetary pressures in the short term: if workers contributions go into their individual pension accounts, they cannot be used to pay for the pensions of the older generation; thus, governments have to finance pensions for the transition generation through taxation or borrowing, Nicholas Barr (2001). This will in a way affect the government budget. Unsustainable pension systems can be a problem to fiscal stability, economic growth, and poverty reduction. The need for pension reform has become pressing as demographic aging has strained pension systems around the world, leading to large expenditures, large deficits, and high contribution rates. In many cases the pension system has become a source of fiscal and macroeconomic instability, a constraint to economic growth, and an ineffective and or inequitable source of retirement income. J. Fred Giertz (2003)suggests thatnot only are pension asset changes large in comparison with state budgets, they are also growing and becoming more volatile. This trend is likely to continue and the relative size of state pension obligations is increasing. This suggests that pension funding is becoming an increasingly important aspect of state government. He also states that ‘state pension funding today is no sounder than in the early 1990s. This is not necessarily a cause for alarm, but it is a source of concern. Pension funding will be an increasingly important demand on state finances in the up coming years. In the G-10 (1998) report, it states that the ageing of populations could have dramatic effects on government finances. Under current policies, government spending in the G-10 countries is projected to rise sharply over the next several decades for several reasons. Per capita expenditure for the elderly is high in the areas of public retirement benefits and, in some countries, welfare support. Public expenditure on medical and health support for the elderly is also high and has been rising. If advances in medical technology come at ever increasing cost and if the incidence of health expenditure on the elderly continues to rise, the fiscal burden could become substantial in some countries. At the same time, government revenues will be adversely affected as the baby boom generation moves from its high income generating years to retirement. Countries whose revenues are tied more to consumption or value added taxes will tend to experience less of a deterioration in revenues than those that depend more heavily on income or payroll taxes. This would create a severe drag on national saving at a time when saving will be crucial to fostering the growth of labour productivity. Impacts of ageing population Norman Vincent Peale quotes that: â€Å"Age-based retirement arbitrarily severs productive persons from their livelihood, squanders their talents, scars their health, strains an already overburdened Social Security system, and drives many elderly people into poverty and despair. Ageism is as odious as racism and sexism.† Barry Bosworth (2003) argued that slowing economic growth and population aging in the major industrial countries have placed increased financial strain on pay-as-you-go (PAYGO) public pension systems. Retirement pensions have become a serious fiscal concern in most industrialized countries. Pensions are largely paid for from tax revenues and it is foreseen that contributions will need to be raised substantially during the coming decades. The World Bank (1994) states that high taxes are harmful to economic growth, since they reallocate resources to the informal sector, thereby reducing output in the more efficient formal market sector of the economy. The reasons are that many people are now nearing retirement age and that the populations nowadays live longer and have fewer children than in the past. Nicholas Barr (2001) argued that the effect on funded schemes is more restrained but equally unavoidable. When a large generation of workers retires, it liquidates its financial assets to pay for its pensions. If those assets are equities, sales of financial assets by the large pensioner generation will exceed purchases of assets by the smaller younger generation, leading to falling equity prices and, hence, to lower pensions. Alternatively, if those assets are bank accounts, high spending by the large pensioner generation will generate inflationary pressures and again reduce the value of pensions. Domestic savings The main views of the life-cycle theory stipulate that individuals try to smooth consumption over their lifetime, Brumberg and Modigliani (1954). Normally savings follow a hump shaped pattern, that is, income is relatively low when individuals are either very young or retired as during their working life savings rate is higher .Ageing Population increases the proportion of households with a relatively lower savings rate in the economy which leads to a decrease in private savings. Estimates of the impact of a change in the age structure of the population on private savings, shows that population ageing will be likely to reduce savings. As regard to public savings, population ageing is likely to exercise considerable pressure on public finances, Weil (2006). In the situation of the pension schemes of the current pay-as-you-go pension schemes that exist in many states, an ageing population implies that the number of beneficiaries increases while the number of contributors to the system decreases. The ageing population will also adversely affect public finances through higher healthcare and long-term care costs, given that older populations are more likely to make use of healthcare facilities, which, to a large extent, are provided by the public sector. Both microeconomic and macroeconomic studies find that the observed age profile of saving generally conforms with the life-cycle model, which implies that saving rates rise over a workers active career and then decline in retirement. Compared with macroeconomic analyses, microeconomic studies tend to show smaller variation in saving rates over the life cycle, this may be of the highly skewed distribution of wealth and saving across households, Ralph C. Bryant (2004). At a micro level, company or other obligatory pension funds can implement enforced saving by deferring wages and salaries, thereby reducing risk of a low replacement ratio. At a macro level, the increase in saving is not usually one-to-one, as increased contractual saving via pension funds is typically partly or wholly offset by declining flexible saving, E Philip Davis (1995). The remaining effect most likely results from liquidity constraints on some individuals (especially the young), who are unable to borrow in order to offset obligatory saving via pension funds early in the life cycle. It can also be anticipated that, even in a liberalized financial system, credit constraints will affect lower income individuals particularly severely, as they have no assets to guarantee and also have less secure employment. Therefore forced pensions saving will tend to increase their overall saving particularly markedly, Bernheim and Scholz (1992). On the other hand Samwick (2000) found a lower rate of saving in countries with extensive PAYG systems. Agosin (2002) extended their analysis and shows that the rise of saving was concentrated in the business sector, and that the net change in household saving was small. Implications for equilibrium real interest rates The forecasted declines in savings make the expected consequence of ageing on the equilibrium real interest rate ambiguous. If investment falls faster than domestic savings at each level of aggregate income, the real interest rate that clears the market for loanable funds is expected to fall, since it is difficult for savers to find profitable investment opportunities, J.C. Trichet (2007). On the other hand, if domestic savings were to fall faster than investment then the real interest rate would rise to reflect the relative scarcity of financial funds. This likely decline in interest rate that equalizes savings and investment could be identified developed financial markets. Even though the actual impact of the evolving demographic structure on the equilibrium real interest rate in the capital markets is something that is going to occur with a considerable lag, some economists have suggested that expectations of such developments may have already started to exert some influence on the pricing of bonds. Among other things, these analyses suggest that ageing could have contributed to the â€Å"flattening† of the yield curve that has been observed over the recent past, J.C. Trichet (2007). However as it is based on the assumption that capital market participants are perfectly forward looking, an assumption which is questionable, it should be treated with a great deal of caution: if it is true that financial markets tend to overreact to short term phenomena, the effects of ageing on the yield curve could be limited, DellaVigna and Pollet (2005). It has to be taken into consideration that these quantitative simulations require a number of qualifications. On one hand, some real world factors may make the true decline in the equilibrium real interest rate larger than estimated in macroeconomic models. For instance, older people may save more than predicted by the life cycle theory as they may want to leave a bequest to their children, putting further downward pressure on the equilibrium rate. The degree of risk aversion may also change with age as if the older people were systematically more risk averse than the young one, the accumulation of precautionary savings would lead to a higher than predicted savings rate and a lower than predicted real rate, Bakshi and Chen (1994).Moreover private savings rates may be significantly affected by pension reforms, Miles (2002). Pressures on Prices Hans J Blommestein (1998) states that concerns have been expressed that the growing demand for high quality private securities like equity and corporate bonds, associated with the growth of advance funded pension systems in search of investment opportunities (thereby increasing the demand for financial assets) and falling public sector borrowing requirements (thereby reducing the supply of government securities), would put strong upward pressure on the prices of financial assets. Here, the combination of the widespread privatisation of state owned enterprises and reform of pension systems brings the opportunity of killing two birds with one stone. Pension reform, which would increase the demand for equity, and privatisation, which expands the supply, at the same time permits a more balanced growth in private securities markets, at least over the medium term. In a somewhat longer term perspective, population ageing may have an impact on the risk premium, that is, the difference betwee n the returns on stocks and the yield on bonds. As asset preferences vary across age groups, the ageing of the baby boom generation could affect both absolute and relative positions of stock and bond prices. On average, middle age is the portion of the life cycle when saving rates are highest. Moreover, middle aged workers generally are more able and willing to hold a riskier portfolio; that is, one weighted more heavily towards stocks than bonds. This is a consequence of two factors: first, while still working, a stockholder is better able to make up for any bad equity returns; second, middle aged workers have a longer time horizon and thus are willing to accept more risk in exchange for the expectation of higher returns. Moreover, higher demand for stocks relative to bonds should increase the price of stocks relative to bonds, thus decreasing the equity premium. Thus, some have hypothesized that an ageing population would cause the equity premium to increase. But if the age of the population is increasing at least in part because life span is increasing, and thus time horizons are lengthening, then the ageing of the population does not necessarily imply that average risk aversion should be increasing and risk premium on stocks should be rising. After the baby boomers begin to retire, saving rates would tend to fall, stock and bond prices to decline, and the equity premium to rise as baby boom retirees shift their portfolios away from stocks toward bonds, Hans J Blommestein (1998). Population age structure can influence the demand for different classes of financial market assets both because of its effect on saving and because young, middle aged, and elderly savers may seek to hold their assets in different forms. Empirical studies have uncovered evidence that population age structure affects stock market prices and the real returns of different classes of financial assets, but the consistency of this evidence is not overwhelming. It is unclear whether the effects of demographic influences on asset prices and returns are large relative to the effects of other and less predictable determinants of prices and returns, Ralph C. Bryant (2004). Implications of population ageing for the conduct of monetary policy The life-cycle theory stipulates that , individuals during their working lives accumulate financial wealth in order to finance their consumption during retirement. As a consequence, populations who are near to retirement age will tend to have higher wealth to income ratios. Simultaneously, expected imbalances in publicly financed pension schemes make it possible to consider that the increasing number of retirees would depend more on their own accumulated wealth, as opposed to public pension provisions, to maintain their consumption levels. Consequently, the fraction of the population exposed to asset price fluctuations could increase with ageing, Young (2002). Bean (2004) argues that longer life expectancy would presumably strengthen this effect. Therefore, the transmission channel of monetary policy may be affected by ageing. In particular, the so called wealth channel, which links asset prices to consumption, may gain relative importance and play a vital role than in the past, G10 (2005). Miles (2002) points out that the monetary policy multiplier would probably rise with population ageing, mainly as a result of the increased wealth channel and greater price impact of monetary policy decisions. In spite of this, he also mentions that an older population is less likely to be credit constrained, especially when the pension system is reformed towards more funded systems. This might reduce the effectiveness of the credit channel. Depending on the relative importance of these channels, monetary policy could, in principle, become more or less effective with ageing. Miles suggests that the first effect is expected to dominate. A move towards demographic structure in which the population accounts for an increasing elderly population is expected to generate a gradual but persistent change in savings habits. This may results in an impact on the demand for all classes of assets even though certain sector of the capital market are likely to be affected more substantially than others. If, for example, older people are more risk averse and prefer to hold financial assets paying fixed income returns such as government securities, then the demand for government bonds would tend to increase relative to riskier investment options, such as equity, Bakshi and Chen (1994) and De Santis and Là ¼hrmann (2006). In this situation, where a larger part of households wealth is invested in nominal assets, price stability would be even more important for households, G10 (2005) and Bean (2004). Stable prices ensure that the real value of both pension entitlements and savings is maintained and prevent arbitrary redistributions of income and wealth to the detriment of the most vulnerable groups in society, in particular, pensioners. It is likely that, as a significant fraction of wealth is accumulated in real estate and financial assets, households exposure to asset price movements will tend to increase. This might coincide with a situation in which a large fraction of the population in their old age dis-saving phase are disposing assets in order to finance consumption during retirement. In this respect, some authors have warned that, when the baby-boom generation retires and starts to dissave, excess supply in financial markets could lead to a significant decline in asset prices, the consequences of which might be felt by the entire population, Siegel (1998), Abel (2001) and (2003). This view is known as the â€Å"asset meltdown† hypothesis. Yoo (1994) estimated that asset prices may drop by as much as 15% as a result of demographic change alone. This is why a credible commitment to maintaining price stability and, as a reflection, an orderly financial environment is and will remain so important for maintaining the standard of living of people, particularly for the poorest and the most vulnerable. Investment of Pension Fund The rapid growth of pension funds in many countries, and the stimulus they are providing to the growth of capital markets, both suggest that their activities as financial intermediaries merit considerable attention, E Philip Davis (2000). Pension funds have an impact on the stability of financial markets in several ways, most significantly through their investment behavior. Since early withdrawal of funds is usually restricted or forbidden, pension funds have long term liabilities, allowing holding of high risk and high return instruments. Accordingly, monies are intermediated by pension funds into a variety of financial assets, which include corporate equities, government bonds, real estate, corporate debt (in the form of loans or bonds), securitised loans, foreign holdings of the instruments mentioned above and money market instruments and deposits as forms of liquidity. Hellwig (1990) suggest that financial institutions can form long term relationships with borrowers, which reduce information asymmetry and hence moral hazard. Apart from economies of scale these considerations have arisen in the literature mainly for debt finance and for banks. Whereas the importance of information asymmetries and incomplete contracts is equally recognised for equity finance, the role of financial institutions as counterparts is less well developed. Equally, institutional investors such as pension funds may not rely on the same information and control mechanisms as banks. The role of pension funds is clearly not to facilitate exchange of goods, services and assets directly. This is because, unlike banks, money market funds, and to a lesser extent long term mutual funds, they do not offer liquid liabilities. Nevertheless, pension funds have had an important indirect role in boosting the efficiency of the financial systems, by influencing the structure of securities markets. This effect on micro structure links to their demand for liquidity, i.e. to transact in large size without moving the price against them, anonymously, and at low transactions costs. Pension funds provide risk control directly to households via the forms of retirement income insurance they provide, an advantage which largely reflects the unusual (among financial intermediaries) link of pension funds to employers. To assist in undertaking this risk control function they diversify assets as noted above and also act in securities and derivatives markets to hedge and control risk. As institutional investors, pension funds are well placed to use derivatives and other means of risk control; many innovations have been introduced or developed specifically to cater for their demand (Bodie 1990b, 1999). E Philip Davis (1995a) suggests that as pension funds focus mainly on government bonds and high grade corporate bonds, while banks tend to monopolise small business financing. And Lorenzo Bini Smaghi (2006) states that investing wisely matters for long term economic wellbeing, and that the portfolio allocation decision is of paramount importance in order to maintain living standards in the old age. Pension funds are the fastest growing of all financial institutions. They now cover half the labor force and represent one-eighth the financial assets of the entire household sector, Vincent P. Apilado (1972). The size of pension funds has also had an impact on the structure of financial markets: countries with large funded pension schemes tend to have highly developed securities markets; in countries with small pension-fund sectors, capital markets are relatively underdeveloped (the equity market in particular, Hans. J. Blommestein (1998). Living Standard M.  PONDS  (2003) states that the raison dà ªtre of wage indexed defined benefit pension funds is to provide insurance against standard of living risk after retirement, based on intergenerational risk sharing. Pension funds necessarily have to accept mismatch risk in providing this kind of insurance. Mismatch risk taken by the pension fund is risk for the funds stakeholders. The material living standards of tomorrows working and retired people will depend on the goods and services produced by those who will be working at the time. Changes in retirement income financing might alter the relative living standards of workers compared with retirees, but only later retirement could have a large effect in increasing living standards for both, Peter Hicks (2004). O