The role of the financial sector in economic development Essay Example

The role of the financial sector in economic development Essay The topic of my essay covers one of the most distinguished areas in the theory of economics financial sector. There is an enormous corpus of literature dedicated to this particular aspect and it was my intention to review only those that are very closely related to the role of financial system and financial liberalisation. To be able to assess the role of the financial sector and financial liberalisation, it is convenient to divide the title of this paper into several categories. In a subsequent section the role of the financial sector will be reviewed. In separate sections I will introduce the present theory of financial liberalisation, its advantages and risks inherent to it. Given a constraint of a world limit it is impossible to go through all the arguments within the scope of the topic, that is why, I tried to choose only those, which were in my opinion of the most prominence. It is by now widely agreed that finance contributes to long-term prosperity. It is obvious that advanced economies have sophisticated financial systems. What is not obvious, but is borne out by the evidence, is that the services delivered by these financial systems have contributed in an important way to the prosperity of those economies. Getting the financial systems of developing countries to function more effectively in providing the full range of financial services is a task that will be well rewarded with economic growth. We will write a custom essay sample on The role of the financial sector in economic development specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The role of the financial sector in economic development specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The role of the financial sector in economic development specifically for you FOR ONLY $16.38 $13.9/page Hire Writer An efficient and stable financial sector is important for economic growth and poverty reduction. The financial crises that have afflicted many countries in recent times have been a costly and painful reminder of the disastrous consequences for development of weak financial markets. Financial stability is crucial for sustained economic growth and cannot be achieved without strong financial systems. Weak financial systems can destabilise local economies, making them more vulnerable to external shocks, and may threaten global financial markets. In practice an efficient financial system can simultaneously lower the cost of external borrowing, raise the returns to savers, and ensure that savings are allocated in priority to projects that promise the highest returns, all of which have the potential for affecting economic growth rates. 1 Holden and Rajapatirana (1995), stress the importance of financial sectors suggesting, that economic growth and, in particular, the development of the private sector cannot occur without a financial system that effectively intermediates between savers and investors. A healthy financial sector allows financial resources to be allocated toward activities with high rates of return; allows efficient intermediation, which implies lower resource costs; and yields better information processing, which allows innovative investments to be identified. 2 Gibson and Tsakalotos (1994) emphasize how crucial the organisation of the financial sector is and add that the financial sector can actively help to promote growth. 3 To understand why the financial system is so crucial to development, it is useful to outline the advantages of financial intermediaries. 4 They suggest that a well-functioning financial system might permit a higher level of saving and investment and, therefore, economic growth. For many years, governments followed a policy of financial repression, which relied on fixing interest rates below market levels and controlling the allocation of credit. The economic distortions induced by these policies were considerable. Financial systems remained under-developed, lending patterns were inefficient and failed to achieve their distributional goals. Negative real interest rates led to low savings and encouraged capital flight. Macro-economic performance also deteriorated countries with large negative real interest rates experienced lower allocative efficiency and growth rates. In the state-owned banking sector, poor lending decisions (often politically influenced) and low repayment rates led to bank insolvency and large budgetary bailouts of depositors and creditors. 5 McKinnon-Show analysis of a financially repressed economy suggests that interest-rate ceilings stifle savings by promoting current consumption, reduce the quantity of investment below its optimal level and reduce the quality of investment by encouraging banks to finance only low-return projects. The clear policy implication is the removal of interest-rate ceilings and more generally other government regulations, which prevent the loan market from operating competitively. A growing awareness of the economic costs of financial repression, led to financial liberalisation as the dominant policy paradigm over the past two decades.

Going home Essay Essays

Going home Essay Essays Going home Essay Essay Going home Essay Essay This is a first individual narrative of a soldier in Iraq who had been victim to an eventide ambuscade by violative military personnels. The narrative begins with the soldier already in the infirmary. months after the ambush incident. nursing a fractured right pes. At about this clip. word besides came out that President Bush was traveling to retreat five 1000s plus work forces from Iraq so that they could be home for the vacations. The soldier hopes that he is portion of the list of work forces who would be recalled. In the interim. the soldier recounts the events that led to his current state of affairs. : The soldier reveals that many had died in the ambuscade and he was simply one of those who survived. The ambuscade took topographic point while they were on their manner to the North US Detachment. While telling the narrative of how he had become a hurt US soldier. the storyteller besides offers penetrations into how war can be loyal and how it can alter the class of events for the universe at big. The soldier besides references in his reminiscing that they were non the true heroes of war. instead the true heroes were the households they left back place. The storyteller dwells on this subject and comprehensively explains how the households back place should be the existent heroes in a war and non the soldiers who are really in the war. The soldier besides offers penetrations into how ghastly a war can be and how uneconomical it is when it comes to lives wasted ; but despite his positions on the war. the soldier remains firm in his beliefs and holds on to the idea of his household waiting back place. The narrative ends with the soldier being called to the muss hall along with many others for the proclamation of the list of recalled soldiers. Find out if he is one of those who will return place. ( YOUR FULL Name ) ( PROFESSOR’S NAME ) ( COURSE AND SUBJECT ) ( DATE OF SUBMISSION ) GOING HOME – A SOLDIER’S STORY Christmas is fast approaching and I am trusting to hold an early Christmas gift as President Bust announced last September that approximately 5. 000 asset of us would be place for the Christmas vacations. This was portion of the limited troop decrease that was to be implemented on US military personnels before the military rush in March following twelvemonth. We are still waiting for the concluding list of soldiers who would be sent place and I am trusting that I would be in the list. I am useless here in the field anyhow. I have been in the infirmary collapsible shelter for the past three months because my right pes suffered metameric breaks after an ambush onslaught on our squad while we were driving to the North withdrawal. We were fifteen in the truck. I was one of the lucky seven who came out of the onslaught alive. I was in the dorsum of the truck and as usual. I felt like I had to watch my ain back every bit good as I was watching the dorsums of the other soldiers who were with me in the truck. It was approximately eleven in the eventide. We all had to go in the screen of darkness to avoid being detected by hostile military personnels. From a distance. the sound of howitzer seemed every bit natural as the cleft of boom on a balmy eventide. A false. ruddy dawn could be seen from the skyline as fires from explosives endlessly lighted up the skyline. It was cold – in the desert. the temperatures are utmost. Daytime is highly hot and the eventide can be every bit cold as it is hot during the twenty-four hours. We were all in our disguise uniforms. but these were merely flimsy fabric – weak protection from possible slugs coming our manner or even isolated shrapnel from distant detonations. I feared for my life but besides thought of the state. and the universe. and what it would be like if the US did non establish an violative against hostile military personnels here in Iraq. In my bosom I could non understand why I had to travel through such horror and set my life on the line for such a cause ; but when I think of my immature married woman waiting for me back place. and my three month old girl. I understand why I have to be here. The arms of mass devastation that Iraq may be concealing from the universe may be cause for the devastation non merely of the US but besides of the universe as we know it and this entirely told me that my being here was deserving everything I had ; but so once more. I can neer deny the fact that there could hold been better yearss. About an hr into the trip. the truck grinded to a arrest ; a co-soldier who was seated beside the driver saw something through his dark vision field glassess. A group of armed work forces were stationed about half a mile off and it seemed that they did non detect our attack because they were huddled together in a close circle apparently holding a drink. We did non happen this cause for dismay because periodically. throughout the route. were friendly military personnels from the other side who were procuring travel paths for civilians. However. since we could non place them from a distance. there was no pick but to be on guard and travel frontward until we were near adequate to place them. The driver had turned off the headlamps and slowed down to a crawl to fix for our attack. When we were merely a few metres off. I heard one of the work forces stationed at the route call out a piercing cry that to me sounded like a decease sentence. At that really minute a fusillade of gunshot punctuated the distant detonations and we all lay level on the floor of the truck. In what seemed similar everlastingly. the truck turned about and sped towards the other way back to the cantonment. The gunshot continued and it was at this minute that I felt warm liquid oozing into the cloth of my uniform from the dorsum. I turned about to see one of my co-soldiers slumped on my dorsum with blood streaming from his cervix. I rapidly stood to look into on the other work forces with me in the dorsum of the truck. Four of them had been severely hit. two were unharmed. and seven of us suffered minor hurts. Mine was a gunfire lesion that pierced my right mortise joint. Subsequently. it turned out that the driver had been severely hit every bit good. so it was the other army officer with him in the front place who was already driving the truck. We made cantonment about three hours after the incident. We had already been midway through the six hr trip that was supposed to take us to the North withdrawal. We were all brought to the infirmary and the dead instantly interred into glistening black organic structure bags that reflected the ruddy blaze that rose up from the distant skyline. The cantonment chaplain said a supplication over the dead and another officer bend down to take out their Canis familiaris tickets. they name spots. and some of their personal effects. I imagined how hard this was for the officer. I imagined how it would hold been had I been one of them. The undermentioned twenty-four hours two or three officers from the US Military back place would be at the porch of our house presenting the sad intelligence to my married woman and my girl. I imagined how they would experience. and how much they would detest the province for directing me to war ; but I was lucky to be alive. or non. Now. I had to cover with the gruesome images that I had witnessed. I had to pass my life thought of what is and what could hold been. I would likely be found staring into the inkiness for many lone hours seeking to happen a decent and even logical ground for this manslaughter – but I was determined to travel place in one piece. if non for my married woman and girl. at least for a state and a universe that was waiting for a gleam of hope that could come out of this bloodshed. Logically. bloodshed is bloodshed and nil good could come out of war. It was ever like taking between two immoralities – the lives of 100s of work forces and adult females in exchange for the peaceable hereafter of my state and the universe. The pick was ever easy and I found it an award to be contending for this cause. albeit fleeting periods of oppugning and concluding and oppugning once more. I felt that I was non a hero here ; the existent heroes are the households we have left behind ; female parents. male parents. married womans. hubbies. girls. and boies. They are the existent heroes for holding to cover with our absence and holding to populate their lives every twenty-four hours with the cognition that we may non even return alive. They are the existent heroes for holding to lie to the guiltless 1s about male parents and female parents who were out at that place contending for the state because this was the lone manner to guarantee the future – of class. there are other ways. but when some other ways seem black and impracticable. war is frequently the method of pick. These people are the existent heroes non because they sacrificed anything but because they refuse to merely melt into the sundown and allow travel of the chances of peace and integrity for the whole universe. They are at that place back place non for any ground. but for a ground that all of us in this universe would one twenty-four hours remember and be thankful about. We. in the field. we are here because of them and their foolproof belief and hope in our cause ; we are here because of their love and the fact that before we sleep at dark our heads swim in oceans of faces – the faces of our existent heroes. The bugle had been sounded. Our superior had called us all to the muss hall to denote who would be traveling place for Christmas and who wouldn’t. With my crutch in tow and a pes heavy with plaster dragging behind. I go to the muss hall. The superior went through the list. The visible radiations have been turned out after the list was read. I was walking back to the infirmary. I was traveling place.

Auditor Crazy Eddie

Auditor Crazy Eddie Question: What specific mistakes (apart from failure to notice â€Å"red flags†) did the auditor make? For each mistake, describe what the auditor should have done. If you were the Managing Partner for the CPA firm and had full knowledge of all the facts and events in this case, what changes in policy or procedures would you implement to make sure this audit failure does not occur in the future? The Crazy Eddie’s financial statements had many fraudulent over and understatements done in many ways that the auditors should have caught. They created fictitious revenues by a number of means. They prepared phony invoices showing sales which overstated their revenues to show the company was growing faster than they actually were. Their vendors collaborated in the fraud by lying to the auditors when the auditors attempted to confirm some of these receivables. The auditors were not diligent when they verified these invoices. They should have probed further into the vendors to v erify that these sales occurred. They also should have understood the relationship between Cray Eddie’s and their vendors to understand if there were motives for fraud. They overstated their assets by overvaluing inventory. They would borrow merchandise from suppliers to inflate the ending inventory. The suppliers would ship the merchandise to the Crazy Eddie’s stores and hold the billing until after the end of the accounting period. The employees of Crazy Eddie went to great extents to deceive the auditors. They would move inventory to the stores or warehouses that were being audited to conceal the shortages. The auditors should have caught that the merchandise was not billed and understood what accounts they charged in the books when the merchandise was received. Another means of overstating the inventory was they shipped inventory from one store to another store so it could be double counted. This should have been caught by the auditors by having the entire inventor y verified in parallel. The employees included in their inventory consigned merchandise and goods being returned to suppliers. This could have been found by understanding the details of Crazy Eddie’s inventory. The auditor should have identified the consigned merchandise and goods being return to separate it from the normal inventory. Crazy Eddie used the accounting periods to overstate assets and income. They held off closing the books past the end of the accounting period to overstated assets and income by boosting sales. The other means used was to reduce liabilities and expenses by not recording them until the next period. The auditors should have verified books at the end of the accounting periods to make sure that all transactions were recorded. The auditors needed to verify the transactions around the end of the period to verify their timing accuracy. Another category of fraudulent activities was when they were completing their financial statements. They didn’t adequately disclose facts in the financial statements according to GAAP. The footnote during one period stated that certain income was recognized when received and the following period disclosed that income was recognized when earned. The auditors should have added an explanatory paragraph or a modification of wording for lack of consistent application of GAAP.

International Relations Course Informal Personal Intro Essay

International Relations Course Informal Personal Intro - Essay Example Therefore, the values gathered from this cause can be used in my life to foster peace in our country through interrelations, despite of their race, creed or nationality. In this case, by understanding these values, I will be able to interact with people of different background; despite the differences caused by diversity in our daily lives, and I can also avoid conflicts and resolve them whenever they arise. I have high expectations of acquiring a chance for developing diverse virtuals that will facilitate the process of becoming someone who can make a positive contribution in the world. Moreover, through this course I expect to gather skills for interrelation that will enable forming networks of mutual responsibility and a platform for sharing potential with other people around the world. I also expect to meet a highly dedicated instructor in this course, who can offer a chance to share my commitment as a student throughout the course. Moreover, I hope the course will facilitate the process of building my capabilities and character of virtuous and responsible individual, who can contribute in making the world a better place for others and me. I also expect the instructor to be honest, fair, to have critical rigor and to be a source of inspiration to the students. Furthermore, I hope that we will utilize the time offered during this course to learn and for the fair purpose that is benef icial to all students. Â   Studying this course will enable gathering of knowledge and insights that can facilitate building of intercultural competencies, and sustainable disposition. Therefore, this will enable others and me to relate and build a form of interdependence, whereby facilitating globalization. The course will also make a vital contribution in development of new perception towards political reality. Therefore, this will enable building of critical and reflexive knowledge, practical values, relations that will facilitate good coexistence. Knowledge

Market Essay Example | Topics and Well Written Essays - 1250 words

Market - Essay Example Not to get out of the topic, Peron’s main policies in this period were based on his being a close observer of the axis power’s fascist leaders, and this might have been the reason he acquired the Napoleonic view of being a man of destiny. When it occurred to him that the axis powers were defeated, to him this revealed the foolishness of the foreign policy of the Argentine and this established in him a conviction that he had a chance of avoiding the clear mistakes of Franco, Mussolini and Hitler in order to dive argentine to a great height. This paper explores a biography that describes my family background, economic background and current situation, and position in the U.S. political power structure. As often known, any dictator needs a bodyguard, and for this case when eyeing the office of the president, he assembled a band of followers from the row deist urban poor of the Argentina. In order to keep models of the Brown and black shirts, he went ahead labeling his foll owers No shirts with a reason that they lacked the white gentleman’s shirt. This clearly indicated that he was getting a way to middle ground between the communist and the fascist. Certainly, Peron was an ultra-nationalist who did not fear playing upon the class s rivalry. He took advantage of the powers he possessed while a vice-president to attach himself to the working class. In the event, some military officers sensed that Peron was up to something and went ahead arresting him. In response to this, Peron raised worker’s wages and gave them a paid holiday. Certainly, it was a shrewd investment because it is a chance that her mistress used her beauty in rallying his supporters with giant mobs gathering chanting the slogan of releasing him. This was an advantage for him since though this, he was released, as well as elected president in 1946 elections forming the peronista party. The steps he took after assuming power is what has made him be remembered for transformin g the leadership of Argentina. He first went ahead marrying his mistress Eva Peron with opposition being silenced by the bands of No shirts. He along with his team set up and established a full-fledged welfare state alongside granting women voting rights using Eva as the face of the crusades. Noting that the economic policies of the new regime were as bizarre as the Cultural Revolution of Mao, he went to introduce various changes that cut across social, economic, and political. The prominent economic changes entailed freeing Argentina from the foreign dominance through investing heavily in industrialization. This he did by funding the first ever-scientific analysis of Argentina’s Andes Mountains in which he discovered coal and precious metals. With a view to fund the exploration and the social program, he centralized control of imports and exports. In a period of ten years, the true rich Argentina’s resources brought about a stunning social economic growth that actuall y defied the attempts of experts to attempt explaining it under Juan Peron’s erratic policies. On a social ground, the legacy of Nepoleon left a great impression in Peron, in which case the two leaders viewed their people as those who cared little about their liberty, but about the government goal to provide equality. He was called El Leader following his character that established him as being a good fascist and as a good socialist he provided higher wages,

War And Peace By Leo Tolstoy :: essays research papers

Then novel War and Peace was written by a famous Russian author Leo Tolstoy in 1865. The novel describes the war with Napoleon in which many countries were involved such as Russia, Austrian, Prussia, Spain, Sweden, and Britain. The novel mainly focuses on Russia. It reflects the different views and participation in the war of Russian aristocracy and peasants and also shows Tolstoy’s negative viewpoint on the war. Showing the war, Tolstoy describes Napoleon’s attack on Russia, the battle of Borodino, the slow retrieval of the Russian army, the conquest of Moscow by Napoleon, the fire in Moscow, and the retrieval of Napoleon’s army during a deadly winter. Naopleon had to retrieve from Russia under attacks by Russian peasants and horsemen on those who fell behind. His army also sufferes from cold and hunger, since the Russians destroyed all food supplies. The takeover of Moscow by Napoleon proved to be useless, and in the long run, destroyed a large part of his army. Alongside with these historical events, Tolstoy describes the different classes of Russian society in terms of their participation in the war and what kind of an impact war had on their lives. In the beginning of the novel, the Russian aristocratic class, which was in the czar’s circle, wanted Russia to participate in the war. They wanted a quick victory and pride for the Russian nobility. They did not anticipate that the war would destroy homes, agriculture, and take many Russian lives. This class is shown in Anna Pavlova Sharer’s salon, with it’s upper class aristocracy, who talk only in French, viewing the Russian language as uncivilized and useful only for peasants. They adopted French culture and wear French style clothing, and at the same time they want to fight Napoleon. However, the majority of this class doesn’t want to participate themselves in the war, but want to win the war with the hands of the peasants. These aristocrats, despite their high education and power, will do nothing to help win the war. They live like parasites on the body of Russia’s society. This is how Tolstoy describes this class in general, but he also depicts two representatives of this upper class, Andrew Bolkonsky and Pierre Bisuhov, who were the more intellectual ones, and whose lives and views of war and life changed as the result of the war. Andrew was interested in a military career, and wasn’t completely satisfied with the czar, while Pierre wasted his life on alcohol – his everyday activity.

Infectious Diseases

The only means of recovery is rest and drinking a lot of fluids. Taking cold medications will only help relieve the symptoms. Hepatitis, Viral Hepatitis can either be acute or chronic. That means, it can either be a temporary illness, or it can be a permanent condition Hepatitis is the inflammation of the liver ND other tissues.It can be caused by a viral Infection. The onset of hepatitis can also be caused by drug abuse or overexposure to a chemical The treatment for viral hepatitis, acute or chronic, is rest. Influenza Influenza, commonly known as â€Å"the flu,† Is also caused by a virus. Its symptoms are more severe than the common cold Influenza only needs to be treated with bed rest and fluids. Non-linctuses Diseases: Possible Causes Cancer Cancer Is caused by the transforming effect of carcinogens on normal cells.Characterized by the unrestrained growth of abnormal cells on or in tissues of the body. Treatment for cancer usually involves surgery and some form of radiati on therapy or chemotherapy. Coronary Heart Disease Coronary heart disease is the most common circulatory system disease. Damage to the heart is caused by reduced blood flow to the heart resulting from blocked or narrowing coronary arteries. Coronary heart disease usually goes unnoticed until chest pain is felt or a heart attack occurs.Its symptoms can be treated with drugs or surgery. Diabetes, Type I It is a disease of the pancreas in which insulin is not produced in the correct amounts so that glucose (sugar) can be converted into energy or stored as fat. Include excessive thirst and urination. Type I diabetes is mainly treated with regular insulin injections. Diabetes, Type II It is a disease of the pancreas in which insulin is not produced In the correct Type II diabetics are treated with a similar routine of diet and exercise.