Kant’s ‘Copernican Revolution’

Describe Kant’s ‘Copernican Revolution’ and explain (and outline) how he hopes it will give rise to synthetic apriori knowledge. Kant’s Critique of Pure Reason [1781] was birthed out of the Leibnizian-Wolff tradition. He rejected this tradition due to a dislike of the principles of Sufficient Reason and Non-Contradiction. Although much of the Critique can be read as a spirited attack on this tradition, Kant’s real catalyst for the writing the Critique was the empiricist David Hume, and the way one reads the Critique is informed by the awareness of the Critique as a duel attack.The creation of the ‘synthetic a priori’ and the ‘Copernican Revolution’ that gave rise to it are both conversant of this attack. This essay aims to outline and defend how the ‘Copernican Revolution’ evolved and how this ‘metaphysical revolution’ formed the concept of the ‘synthetic a priori’. In the Preface to th e Critique Kant describes metaphysics as once being the ‘queen of all sciences’ (A ix). Yet, despite this, he argues that reason in metaphysics fails to have the stability of mathematics or natural science.The conflict of Newtonian science with Leibnizian metaphysics, rationalism with empiricism, and natural science with morality and religion, are all instances of metaphysics as a ‘battle ground’ (Gardner 1999: 20). Kant argues that: â€Å"If the various participants are unable to agree in any common plan of procedure, then we may rest assured that it is very far from having entered upon the secure path of a science, and is indeed a merely random groping† (B vii).For Kant, the natural sciences and mathematics are in contrast to metaphysics because the former have undergone a peculiar process of stability. Kant adheres to a ‘Maker’s Knowledge Thesis’, which argues that a subject has supreme (a priori) knowledge of an object, if the y are the maker of that object or able to reproduce it. Thus, maths has a priori status because we can construct mathematical objects ourselves. He affects to reproduce an analogous revolution in metaphysics.At†¦Kant gives his ‘Copernican Revolution’ of metaphysics: â€Å"Hitherto it has been assumed that all our knowledge must conform to objects. But all attempts to extend our knowledge of objects by establishing something in regard to them a priori, by means of concepts, have, on this assumption, ended in failure. We must therefore make trial whether we may not have more success in the tasks of metaphysics, if we suppose that objects must conform to our knowledge.This would agree better with what is desired, namely, that it should be possible to have knowledge of objects a priori, determining something in regard to them prior to their being given† (B xvi). The ‘Copernican Revolution’ attempts a compromise between the optimistic Leibnizian real ists, who argue that we can have objective (a priori) knowledge of the external world through the Principle of Sufficient Reason and the Humean sceptics, who argue that we can have no knowledge beyond immediate experience.By a ‘Copernican Revolution’, Kant intends a complete overhaul of what has previously been taken as objective fact: like Copernicus explained the ‘objective’ movement of the sun by the subjective movement of the observer on earth, Kant explains our knowledge of ‘objective’ external objects in terms of our subjective modes of cognition (Gardener 1999: 42). On the ‘Maker’s Knowledge Thesis’, for an agent to have a priori metaphysical knowledge, they must have at least partially formed a sum of that knowledge.Kant claims that this is achieved by the input of our cognitive faculties on what we observe. Some critics question how Kant’s ‘revolution’ does not merely collapse into an account of Berkeley’s mind-dependence, that we ‘create’ the external objects in our own minds (Gardener 1999: 43). But Kant is not idealist in the way that Berkeley is, to say that the subject ‘forms’ the object by the modes of their cognition, is not to say that objects are the creation of our representations.Kant does hold that there are objective external objects in the world, he merely denies that we can know them as such. He makes a distinction between objects as they appear to us and objects as they are in themselves. Locke makes a similar distinction between what he called the ‘primary’ and ‘secondary’ qualities. In his Essay Concerning Human Understanding, he argued that the secondary qualities such as an object’s colour, smell etc. is fundamentally different from their ‘primary’ qualities such as their size or extension.The secondary qualities are things that can be known by the observer, but not as a prope rty of the thing in its self, whereas primary qualities are independent of whoever is observing them, and are properties of the thing as it is in itself. Kant’s distinction is even more limited insofar as he does not think that any of the properties Locke describes as ‘primary’ are properties of an object in its self. He believes that all we can know of an object in its self is that it exists. If the fact that an object exists is all that we could ever know of an object in itself, then a rationalist perspective would hold that this s all we can ever know of that object (full stop) because they believe that knowledge conforms to the object. However, because Kant believes that the object conforms to knowledge, he also believes that we can know other things about the object through the faculties of our cognition. We can never have knowledge of a thing its self because we cannot have ‘Maker’s Knowledge’ of such a thing, but we can have ‘Make r’s knowledge’ of a thing as it appears to us because we ‘form’ these appearances with our own cognition. These are what Kant terms ‘synthetic a priori’ judgements.Kant distinguishes â€Å"cognitions a priori†¦ from empirical ones, which have their sources a posteriori, namely in experience† (Guyer 2006: 45). An analytic judgment is one in which â€Å"the predicate B belongs to the subject A as something that is contained in this concept A† (Guyer 2006: 46). They are concepts known through identity, such as ‘All bachelors are married men’. By contrast, synthetic judgements are those in which â€Å"the predicate B lies entirely outside the concept A, although to be sure it stands in connection with it† (ibid).Championed by Hume, the orthodox view of the time was that while analytic judgements can be known a priori, given the fact that they can be immediately experienced and understood if you can understand the composite meaning of the proposition, synthetic judgements could only ever be understood a posteriori. A posteriori cognitions are merely based on the experience of an object and a synthetic judgement such as ‘this macbook is white’ can only ever be known by looking at the object (macbook) and a posteriori judging it to have a certain property (whiteness).Kant disagreed with this Humean reasoning, and while he accepted that there could not be an analytic a posteriori, he did think that there could be synthetic a priori cognitions. Kant blames the instability of metaphysics on the fact that the possibility of ‘synthetic a priori’ judgments has never been considered. In the Preface of the Critique Kant argues that the ‘real’ problem of pure reason is â€Å"contained in the question: How are synthetic judgements a priori possible? † (Gardener 1999). He makes an initial concession to the empiricists insofar as all knowledge necessarily ‘begins with’ experience.However, he argues that from this it does not necessarily follow that all of our knowledge be derived from such experience (it may, conversely, be derived a priori) (Gardener 1999: 53). Kant argues in the Introduction of the Critique that â€Å"if we find a proposition such that in thinking it we think at the same time its necessity, then it is an a priori judgment; and if, in addition, it is not derived from any proposition except one that itself has the validity of a necessary proposition, then it is absolutely a priori† (B3).Kant presupposes that we have this kind of knowledge: we have a priori knowledge of mathematical objects, and the principle of causation has ‘strict universality’ (Gardener 1999: 53). However, Kant does not regard these as analytic. Instead, Guyer argues that â€Å"[f]or Kant, all the fundamental propositions of philosophy as well as the contents of pure mathematics and even the basic principles of na tural science are nothing less than synthetic a priori cognitions† (Guyer 2006: 47).Kant argues that the term ‘synthetic’, when applied to judgments, â€Å"has a double sense of connecting a predicate with a concept in which it is not contained, and of presupposing a corresponding act of synthesis or putting together on the part of the subject† (Gardener 1999: 55). This is the act of ‘transcendental synthesis’. This process is significant when considering the a priori. Kant argues that although some concepts are indeed analytical, such as ‘all bachelors are married men’, concepts such as ‘every cause has an effect’ are not.Such concepts are a priori by virtue of being necessary, but they are also synthetic because they intend to add something to the sum of human knowledge. According to Kant, any informative concept must also be synthetic (Gardener 1999: 56). Because of this, Rawls advances two analytically distinct cri teria for analyticity: a judgement is analytic if (1) Its truth can be determined on the basis of conceptual considerations or the meaning of its composite terms; (2) â€Å"if it is self-evidently true rather than such as to extend our knowledge† (Gardener 1999: 61).These criteria have lead critics to argue that Kant confuses two different versions of the analytic/synthetic distinction; the first definition of analyticity encompasses what Kant calls ‘synthetic a priori’ because they would be true for conceptual reasons. However, These critics fail to give an account of how conceptual considerations are intended to extend knowledge the way that the synthetic a priori entails.Some critics argue that Kant’s method of proving the existence of synthetic a priori judgments is analytic, an argument of regress from the effect back to its cause. By arguing as such, they thus accuse Kant of presupposing the very thing he is intending to prove. Guyer argues that â₠¬Å"[o]f course, if one doubts that mathematics and physics do contain synthetic a priori cognition, then the use of this analytic or regressive method to arrive at further metaphysical truths is in trouble from the outset† (Guyer 2006: 48).Kant admits that his methodology is analytical in the Prolegomena, however, in the first edition Kant argues that his process was synthetic, by inquiring within pure reason itself. In the Preface Kant argues that his objective is â€Å"to demonstrate and make comprehensible the objective validity of his concepts a priori†. In the Introduction to the First Edition Kant argues that reason â€Å"†¦finds itself compelled to resort to principles that go beyond all possible use in experience, and that nonetheless seem so little suspect that even common human reason agrees with them.By doing this, however, human reason plunges into darkness and contradictions; and although it can indeed gather from these that they must be based on erro rs lying hidden somewhere, it is unable to discover these errors†¦[t]he combat of these endless conflicts is what we call metaphysics† (A viii). The ‘Copernican Revolution’ is the way Kant attempts to prove the possibility of synthetic a priori knowledge without flying off into ungrounded metaphysics (Guyer 2006: 49). If we assume that the sensory representations and conceptual organisation of objects is contained only in experience, then knowledge can never be more than a posteriori.But, if we discover cognitive ‘forms’ of these representations and organisations, then we know that nothing can ever be an object of knowledge without being subject to these forms, and thus that these ‘forms’ necessarily apply to the objects of our knowledge and therefore must constitute synthetic a priori judgments (Guyer 2006: 49-50). Bibliography: Gardner, Sebastian (1999) â€Å"Kant and the Critique of Pure Reason†, London: Routledge. Guyer, P aul (2006) â€Å"Kant†, Oxon: Routledge. Kant, Immanuel (Pluhar, Werner: Translator) (1996) â€Å"Critique of Pure Reason†, USA: Hackett Publishing Company.

Legal Imperatives for Affordable Housing Delivery in Nigeria Essay

Shelter or housing is one of the most basic of human needs; it ranked second only to food in the hierarchy of human needs. [1] It is fundamental to human survival and an essential component in the advancement of the quality of life of the citizenry. [2] Housing provides shelter for man in order for him to actualize his real potentials in life and contributes to the growth of the world economy. 3] The provision of housing is therefore sine qua non to the growth of man and development of the nation. Effective housing delivery involves many actors and segments of the state apparatus, including the building materials sector, financial sector, real estate sector, energy and infrastructural development sectors and the environmental planning sector amongst others; it therefore requires effective partnership, collaboration and information sharing among different sectors of the economy. To fulfill the need for affordable housing in Nigeria, a multi-faceted approach that transcends the legal, social, economics, religious and cultural interfaces and traits must be put in place at any given time. The task of this paper is to examine the legal initiatives required to facilitate the delivery of affordable housing units to the generality of Nigerians irrespective of class, race or gender. This is with a view at pointing out the inhibitors to smooth housing delivery and proffering practical and workable solution to the identified problems. To achieve this end the paper examines the concept of housing within the legal and statutory framework; it forays into the provisions of the Land Use Act, Planning Laws, Title Registration Laws, Property Tax Legislations and Infrastructural Laws amongst others; and submits that there is need for review of most of these legislations before any meaningful progress can be made in the provision of affordable housing to Nigerians. Concept of Housing. Quoting from the provisions of the new national housing policy document; [4] ‘Housing is defined as the process of providing safe, comfortable, attractive, functional affordable and identifiable shelter in a proper setting within a neighbourhood, supported by continuous maintenance of the built environment for the daily living activities of individuals/families within the community while reflecting their socio-economic, cultural aspirations and preferences. From this definition, housing is not only a shelter, but includes safety of the neighborhood; comfortable and functional dwelling, supported by continuous maintenance of the environment and planning; all reflecting the socio-economic, cultural aspirations and preferences of members of the society. Thus, the legal initiatives for the delivery of housing as conceptualized above requires not only the legal parameters concerning land, but extends to town planning laws, Tenancy and Rent control law, property tax law, energy law, water law, environmental law, compulsory acquisition and compensation laws amongst others. Each of these laws is now treated seriatim as hereunder. Land law. Land is to housing as what a woman is to a pregnancy. The conception, gestation and delivery of housing can only come to fruition with the availability of secured land and proper land management. Land midwifes housing delivery in myriad of ways; Land is the superstructure on which the dreams and aspirations of provision of housing is founded. [5] Land supports the production and delivery of housing through the provision of the much needed finance for its construction. As one of the main factors of production, land provides capital formation and collateral for bank advances towards the construction of the much needed- houses. It is thus obvious that the dream of a vibrant, efficient and effective mortgage system (financial reforms) will remain a mirage in the absence of a viable and reliable land management system. [6] The land management policy of a State also impacts directly on the output and supply of some of the basic raw materials in the construction industry including housing. 7] Such materials as sand, gravel, granite, laterite and even cement are subject to the extant land use management policy of the state. Thus, the Land use policy and management of the State has a direct impact and consequences not only on the quantum and quality of the State housing stock, but also fundamentally on the economic wellbeing of the citizen and the state, particularly in developing countries where there is heavy reliance on land and its resources for sustenance. 8] The question of who owns the land, what tenure operates over the land, security of tenure, compensation for compulsory acquisition of property rights are fundamental questions of enquiry in this exercise. Given the foregoing scenario, an examination of the current law regulating the use and management of land cannot but be a prerequisite to the successive delivery of housing units. The current law on the subject is principally the Land Use Act; others are Registration Laws, Registration of Title Laws etc. To ensure an efficient and effective housing delivery, there is a fundamental need for a secured land title and security of tenure; for where there is no security of title and tenure the development of mortgage system and formal land market will be adversely affected, to the detriment of the growth of the housing sector. The land Use Act, as presently constituted does not seem to provide the necessary secured tenure to fast track the delivery of the expected houses. The Land Use Act, founded on hybrid recommendation,[9] undulates between land nationalization and the protection of private property rights. 10] Its wavering posture has given rise to multiple interpretations as to its policy thrust and directives. Questions arise as to what is the quantum of interest obtainable under the Act,[11] are there equal property rights in every citizen under the Act,[12] what is the proprietary value of the Certificate of Occupancy issued under the Act,[13]how secured is private property rights under the Act in view of the Governor’s power of revocation[14] and paltry compensation payable thereon? 15] How much protection does the Act offer potential mortgagees in the creation, perfection and realization of the mortgage transactions? [16] How far the Land Use Act has addressed the problems of land speculation, land grabbing and incessant land dispute and urban slum? [17] Apart from these, the over concentration of power of land management in an individual rather than institution; the dichotomy in land rights and land administration under the Act and the ouster of courts’ jurisdiction in the determination of dispute and compensation issues are areas of concerns. These and many others are impediments to successful delivery of housing as such state of policy confusion and legal inconsistency only breeds fear, distrust and doubts in the heart of would be investors and property developers alike. The Land Use Act should be amended to address these contentious issues bedeviling the smooth delivery of adequate and affordable housing to the masses. For once, the Act should take a categorical stance on who owns the land; state or individual? To many this may seem obvious,[18] but not when one realizes that while the tenure of some citizen is finite and determinable,[19] others are infinite;[20] whilst some pay taxes and rents on their land, others do not. [21] The Act should declare state ownership of land so that the transition provisions of more than 35years old in the Act[22] can be extinguished and laid to rest and occupiers can be compensated for the revocation of their rights over bare land in as much as they paid to obtain the land from the state. With such categorical posture the issue of inequality in land rights as presently obtainable under the Act will become a thing of the past; every citizen will now have equal determinable interest in land. With state ownership of land, the proprietary value of Certificate of Occupancy is enhanced since it will now become a land title document instead of the current position as document evidencing title to land. 23] Still on the Act, the provision relating to consent requirement[24] should be removed with respect to mortgages in order to streamline the laborious process of mortgage creation, perfection and realization under the Act. Presently a mortgagee must ensure that there is Governor’s consent to any mortgage transaction and must also obtain the Governor’s consent when exercising its power of sale under the mortgage deed, otherwise the transaction is void. 25] Also, the provision excluding the mortgagee from the definition of a holder/occupier[26] for the purpose of payment of compensation should be reviewed to facilitate the enforcement and realization of the mortgage transactions. With the amendment in place, the primary mortgage institutions (PMIs) will be able to take the full benefit of the loan window provided for in the National Housing Fund Act[27] to secure their investment with a block of mortgages over the properties being developed. Aside the amendment of the Act to accommodate smooth mortgage transactions, the Act should also provide explicit procedure for revocation of right of occupancy, such as pre-revocation notices, filing of objections and access to the courts for adjudication on quantum of compensation payable upon revocation. The present situation whereby one only reads about revocation in the newspapers; and whereat it is done with military fiat, falls short of international best practices obtainable in more civilized climes. 28] To avoid conflict between State grant and a grant made by the local government, the reviewed Act should abolish the dichotomy e xisting between the State and local government over land administration in the State. This will ensure a uniform source of authority and streamline land administration in the state thus fostering land management reliability and efficiency, all geared towards boosting investor’s confidence in the system and seamless production and delivery of ho using units. Mortgage law Mortgage transaction is a species of secured credit transaction that provides investment funds for business enterprises. With respect to housing, the term means a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against the consumer’s dwelling to finance the acquisition or initial construction of such dwelling. [29] It is the bedrock and the superstructure for housing finance. Its functionality is exhibited when it is appreciated that it gives assurance for the repayment of the loan advanced for the construction of houses. Statutorily, the primary mortgage institutions (PMIs) established under the law[30] are required to secure the loans obtained from the federal mortgage banks/national housing funds with a first legal mortgage over the block of properties funded by the loan. In the same vein, individuals are expected to execute a first legal mortgage over the property financed by the funds sourced from the PMIs. Mortgage is so fundamental to mass and social housing developments to the extent that without it housing development will suffer from dearth of block of funds and will have to rely on individual savings and financial support from friends and relatives. But what is the state of our law on mortgages? With few exceptions, our law on mortgages is still founded on the received English laws of the 19th century; which has been discarded in England almost a century ago. Our law on the subject does not reflect the realities of our time. We still convey in fee simple or tail when such proprietary interest does not exist in our statute books. Our mortgage enforcement procedures are still tangled in the webs of the common law and archaic statutory provisions. The rights of the mortgagee to freely realize his investment is hampered by our laws[31] and courts. [32] There is the need to review our laws on the subject of mortgage. The Property and Conveyancing Act[33] needs repealing and a new law on mortgages to reflect the current trend in the area to fast-track mortgage transactions be promulgated. The new law should reflect the quantum of proprietary interest available under our law, streamline the process for the enforcement of mortgagees’ powers of sale and foreclosures and do away with the need for a re-conveyance deed in mortgages amongst others. The right of the mortgagor to create successive legal mortgagees over the same property; be protected from negative amortization clauses and collateral mortgage contracts should be explored under the new law. The new law should harmonize the provisions of existing legislations in the areas and harness them to achieve the goal of providing robust financial base to for social housing. The provisions of the Land Use Act, Registration of Title Laws, National Housing Fund Act, Pension Act, Federal Mortgage Bank Act, Nigeria Social Insurance Trust Fund Act, Primary Mortgages Institution Act and other laws relating thereto should be examined in this wise. The provisions of the Property and Conveyancing Law,[34] the current law on Mortgages in UK and the Lagos State Mortgage and Property Law[35] are also recommended as templates for the review of the old Act. Land Registration Law. Land registration can be best described as a species of machinery for assisting a purchaser or mortgagee in his inquiries as to his vendor’s or mortgagor’s title previously to completing his dealing, and for securing his own position afterwards. [36] Documentation and registration of all dealings and transactions involving land is at the heart of ensuring record keeping, facilitating land searches, tracing and priority in land transactions, which go a long way at establishing certainty, predictability and efficiency in land transactions including mortgages. A vibrant storage and retrieval land information system enhances transparency in land dealings and is immeasurable as a factor aiding speedy settlement of land disputes. A good land registration system is therefore core to efficient land administration and consequently the delivery of housing in a state. Currently in Nigeria, it is the prerogative of the state to determine, design and operate its own land information recording system. This is as a result of the constitutional arrangement which empowers the states to legislate on the subject atter. [37] The current regime has given rise to multiplicity of laws and diverse administrative procedures in the process of storing and retrieving land information system in the country to the detriment of investors, mortgagees and real estate developers alike. A times the requirements for land registrations/title registration varies from state to state not because laws are different but simply on issue of practice and procedures to be adopted including charges/levies imposed on the parties. 38] In the time past there used to be a uniform land information recording and retrieval system in the country; the Land Instrument Registration Act[39] 1924 which later became state laws[40] with the coming into effect of the 1954 federal constitution. The law is still extant in most of the states of the federation, but the practice has remained diverse. There is therefore a need to streamline the practice and procedure for recording and registration of land dealings and evolve a uniform system that will not only breed seamless land registration process but also boost investors’ confidence in the process. Towards this end, the existing mechanisms and procedure for regularization and registration must be reoriented and reorganized to achieve greater effectiveness, reliability and economy. Since market efficiency depends very much on the availability of reliable information that can be used to check genuineness of titles before purchase and to trace records of land transfers at any point in time, efforts should be geared towards making registration compulsory for all land dealing. Government should compel the conversion of all existing titles on land to a certificate of occupancy within a stipulated time. Such policy would foster the development of a uniform land title in the system, which in turn would engender certainty, reliability and security of land title deeds. [41] Such scheme will also obviate the need to keep dual land title documents over a piece of land[42] and thus stem the tide of land frauds that are rampant in our urban centres.

Ancient Goddesses of the Middle East Essay Example | Topics and Well Written Essays - 2500 words

Ancient Goddesses of the Middle East - Essay Example However, during the past few thousand years, women have experienced marginalization from their power source. In the male dominated religions such as Judaism, Christianity and Islam, the female aspect of the Creator has been put aside. History reveals that remnants of the Goddess worshippers were annihilated because they were considered witches. It is alarming to note also that it was all done in the name of a loving God.1 By 4500 BC, the European continent hosted a flourishing group of Goddess worshipping cultures. Over the preceding two millennia, from about 6500 BC to 4500 BC, these cultures had undergone a peaceful evolution, and by the end of this time achieved what could properly be called a Golden Age of Old European civilization. They produced arts and crafts of remarkable quality. Communities achieved populations of many thousands and were laid out in a planned manner. Towns were located at consistently even distances from each other, with larger cities acting as religious and trade centers. According to Curtis, the peoples of this era believe and practice their religion in all aspects of their lives such as life, death, regeneration that is embodied in the female power, that is, the Goddess. Proof of this are the figurines and sculptures, the burial rites, the rich religious symbolism that were rampant during that age. Religion was so much a part of their lives that even ordinary chores like weaving was done inside the temples. It is almost common knowledge that in the present-day witchcraft, the central figure is a woman, the Goddess or the Great Mother. She represents life and fertility. She symbolizes the living force that connects all things in nature and the whole universe. She serves both as the creator and the destroyer. She is also called the Queen of Heaven as well as the moon. The Great Mother is endowed with magical powers and is often associated with feelings, intuition and the psychic faculty. Scholars agree that the Goddess is supposed to be without gender, however within the universe both the male and the female principles do exist. Furthermore, both in the Goddess worship both the male and the female principles are acknowledged.3 It is also recorded that, the Goddess has many features, titles and characteristics. At present however, particularly in witchcraft and Neo-paganism, she is worshipped as the triple Goddess such as the Virgin, the Mother and the Crone. Record shows that goddess worship dates back to Paleolithic times. Many anthropologists believe that the first "God" or gods of the peoples were feminine in nature. There is the so-called self-fertilization such as the ones mentioned in ancient creation myths and beliefs that all things came to order through this method. It means that there was no participation of a male counterpart and that the Goddess did all the creation by herself. Thus, it can be noted that the agricultural rituals and religions acknowledge that the gods were only successful because of the blessings of wisdom and goodness from the Great Goddess. This is evident in the existence of many matriarchal societies and tribes in the past. However, no concrete evidence can pinpoint that either of the gods or goddesses are superior to the other. The Great Goddess does not lord it over the male gods. In other

Primitive modern Essay Example | Topics and Well Written Essays - 1000 words

Primitive modern - Essay Example Among modernists there were artists who supported materialization, and there were ones trying to rebirth spiritual life. Paul Gauguin was one of those seeking for something spiritual in a new highly commercial world. Desire to find himself, and specifically, to reveal a human savage nature made him interested in those less civilized (from Western point of view) native inhabitants of Brittany first, and later Tahiti painting them in a specific manner that was later called â€Å"primitivism†. Some critics think that this way Gaugen was going back to own savage origin (â€Å"a savage who must return to the savage†) but Solomon-Godeau sees a more social explanation on Gauguin’s desire: it was a reaction of a civilized colonist, a man from patriarchal society willing to express a power upon colonial, predominantly female savage culture (Solomon-Godeau 120). Meanwhile, in Germany there was a discussion among intellectuals on the way Germany should choose for a spiritual culture rebirth. Despite dissidence, German artists agreed that modern art should â€Å"serve for† German state. Some of artists stood for a turning back to own origins thinking on more conservative themes and forms, and some insisted Germans to look for inspiration from folk culture of non-European colonies to put in expressional forms. According to Lloyd, Emil Nolde was artist fitting both trends, and at the same time none of them because in his art Nolde was inspired by primitive forms and themes considering them eternal, but also trying to engage them with modern concerns (Lloyd 93). For Nolde that primitive inspiration, a true spiritual origin could be only found in spiritual artifacts hand-made by â€Å"primitives† â€Å"with actual material in their hands, between their fingers†, with â€Å"pleasure and love of creating† (Lloyd 100). And primitives themselves for Nolde were native inhabitants of colonies, yet not those generations of living

History of the Internet Essay Example | Topics and Well Written Essays - 2000 words

History of the Internet - Essay Example This paper will trace the history, growth and development of internet and how World Wide Web has changed the world which is based on the vision, hard labor and dedication of a few committed people. Internet is a network of networks that joins many government, university and private computers together. It provides an infrastructure for the use of e-mail, bulletin boards, file archives, hypertext documents and other computational resources (Slater, 2002). This network transports data and messages across distances which can be anywhere from the same office to anywhere in the world. The internet today is a widespread information structure and the initial prototype of internet is often called the National Informatics Infrastructure and has a complex history. The history of internet can be traced back to the launch and orbit of Sputnik I in 1957 which sent scientific and psychological shock waves in the science policy community as well as throughout American politics and the American public (Russell, 2001). This formed the basis for fundamental breakthroughs in American science, which resulted in a dramatic increase of federal spending on scientific research. Immediately after this, President Eisenhower created an agency known as Advanced Research Project Agency (ARPA later known as DARPA) which would be responsible for coordinating advanced, high-risk research that could lead to technological breakthroughs for the military at the height of cold war. The idea of ARPA was basically shaped by a group of scientists who feared that the government either misused or misunderstood modern science and technology. Since World War II scientists had been exploring how advanced computing could enhance national security. The SAGE air defense system, funded by the Air Force was developed by the MIT scientists during the 1950s (Russell, 2001). Computers were initially used as batch processing number-crunchers but subsequently they were used to work with people in real time to

Proposal outline Research Example | Topics and Well Written Essays - 500 words

Outline - Research Proposal Example Millions of citizens probably could be out of employment. Therefore, countries wishing for high employment levels can do this only via changes in investment magnitude, which will in turn increase national income. The independent variable in the research study is the wellbeing of the population while the dependent variable will involve the national income level and its determinants. The independent variable will change with varying levels of employment and investment that determine the national income level. Most of the data on the determinants is to be found in literary works, and government records, therefore, there will be minimal reliance on data from professional practice. This will necessitate qualitative research to integrate document analysis into the research design. The research will be interested in identifying the determinants of national income and the way the income correlates with the population’s national wellbeing. Through combining with data on population, national income, can give a clear measure of wellbeing based on the country’s per capita income, as well as its growth with time. National income can also be combined with data on the country’s labor force in the assessment of productivity’s level and rate of growth. National income could also give, in combination with monetary and financial data, a guide to the country’s level of inflation. The study’s conclusion reveals that in the presence of full equilibrium of employment scarce resources can be allocated to alternative employments, as well as preservation of free enterprise, which would see income being distributed on input market pricing factors. This would come with appropriate safeguards for the disadvantaged, which would improve general wellbeing of majority of the population. The necessary determinants were provided that could be used to explain the manner

HEALTH ILLNESS AND SOCIETY Essay Example | Topics and Well Written Essays - 2500 words

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Corporate governance - Essay Example uthor, difficulty of identifying a causal effect is aggravated due to lack of conclusive theories, which enable researchers worldwide to regard a specific corporate governance code as good or bad. Corporate governance framework established within companies need to incorporate core values of accountability, transparency, responsibility and fairness (ACCA, â€Å"Disclosures on corporate governance†). Even so, reported high profile financial scandals such as, those of Enron and WorldCom, suggest that the framework was not implemented at all. Weak corporate governance and untrustworthy financial reporting were cited as major reasons behind these scandals. These facts called for the need to establish robust corporate governance framework among organizations all over the world. Following this incidents, many laws were passed such as, Cadbury Report in United Kingdom, Sarbanes Oxley Act in the United States, the Dey Report in Canada, the Vienot Report in France, the Olivencia Report in Spain, the King’s Report in South Africa, Principles and Guidelines on Corporate Governance in New Zealand and the Cromme Code in Germany. Some authors claim that these laws have proven to be immensely successful in achieving objectives of transparent financial reporting; whereas, some authors have conveyed their options against efficacy of these laws. A significant proportion of research has investigated whether quality of financial reporting is influenced by various disclosure requirements of corporate governance. The results of these empirical researches are mixed. For example, research done by Armstrong, et al (2010) fails to provide conclusive results regarding ways in which managerial compensation influences quality of financial reporting. Cheng and Warfield (2005) have pointed out that a negative relation exists between managerial incentives and the standard of financial reporting. According to them, managerial incentives are amplified on the basis of their performance and not

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Alexander Pope’s poem The Rape of the Lock Essay Example for Free

Alexander Pope’s poem The Rape of the Lock Essay There are several aspects to Alexander Pope’s poem, The Rape of the Lock which cement it as a unique and important work. Not only do Pope’s use of imagery and other literary tools create a landscape of the world which is represented here, but Pope also creates the feeling of total emersion into the story for the reader.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There are also many individual issues, within the work itself, which utilize their social standing to create emotion for the reader, such as the consumption of drugs throughout The Rape of the Lock. This creates an emotional bond with between the reader and the character within the poem by forcing the reader to make judgments on the characters. This judgment, then, becomes part of the reader’s vision of the world Pope created within the poem.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   While the poem itself was called to be written by Pope’s close friend, to end the feud between two families, what Pope succeeds in creating was an epic of lust, debauchery and social posturing. This tale, spun by Alexander Pope, seems just as much a condemnation of the social stratification of his era, as it is a plea for well-born families to put aside their petty squabbles. The events leading up to the writing of the poem, as explained by Pope were:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The stealing of Miss Belle Fermors hair, was taken too seriously, and caused an  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   estrangement between the two families, though they had lived so long in great friendship   Ã‚  Ã‚  Ã‚  Ã‚   before. A common acquaintance and well  Ã‚  Ã‚  Ã‚   wisher to both desired me to write a poem to  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   make a jest of it, and laugh them together again. It was with  Ã‚  Ã‚   this view that I wrote the Rape of the Lock. (Pope) This partly explains the use of the term â€Å"Rape† in the title. The use of such a strong word to describe such an inane event illustrates Alexander Pope’s fondness of parody – as well as his ability to illustrate the strange and often humorous idiosyncrasies of the wealthy elite.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As Pope begins his five act poem, his first line both questions and accuses the parties involved in the rivalry by asking what â€Å"trivial things† could have been seen as such a â€Å"dire Offence†. The assault which is spoken of by Pope in this first canto is described as being committed by a â€Å"well-bred Lord† upon a â€Å"gentle Belle†. This assault is also questioned, in that Pope asked how a â€Å"Belle† could refuse the advances of such a well-born man. It is the assumption, from this early exchange, that it was socially expected that these two individuals, most certainly due to their social standing, would have no choice but to form a physical union – completely ignoring any personal choice in the matter.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Throughout the first canto, there are several examples of instances where Pope created a strange sense of reality through his use of word choice and order. Calling to attention the vision of a â€Å"birth-night beau†, a very festive and happy image, Pope juxtaposes the idea of non-consensual relations and enters into a dream-state. The allusions that Pope creates here are a very white and pure scene. The use of imagery such as the slippers, â€Å"silver sound†, and Belinda laying her head against her â€Å"downy pillow† creates a setting of safety and warmth.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In line twenty four of the first canto, the poem begins to take on a decidedly fantastic feel. This is used to create the sense that Belinda is truly a slothful person. As she arises at noon, the reader is told that she returns to sleep – creating a sense of an unpressured and possibly spoiled girl with no responsibilities.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The dreams of Belinda are also illustrated here. Pope mentions several types of fantastic characters in this section which illustrate the unrealistic world Belinda inhabits. The angels and elves which Pope mentions number in the thousands – and through them, illustrate the mental age of Belinda – that of a child. These creatures also set up the meaning of the first canto, the warning of Belinda.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the clear Mirror of thy ruling Star I saw, alas! some dread Event impend, Ere to the Main this Morning Sun descend. But Heavn reveals not what, or how, or where: Warnd by thy Sylph, oh Pious Maid beware! This to disclose is all thy Guardian can. Beware of all, but most beware of Man! (Pope 1.108-114) This warning shows the reader, in Pope’s mock-epic style, that some sort of tragedy is about to unfold for Belinda.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This fantastical illustration continues through the end of the first canto. Pope uses the personification of the items in Belinda’s room to create the creatures which she sees through her dreams. Line 135 is a perfect example of this as Pope writes: â€Å"The Tortoise here and Elephant unite, / Transform’d to Combs†. It is obvious to the reader that Pope is describing a tortoise shell and ivory comb. However, in the dream world of Belinda, this object is represented by its literal components before losing this personification and becoming a tool to create Belinda’s physical beauty.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The second canto is used to by Pope to illustrate the importance of hair to the physical beauty of Belinda. Her majestic persona is described by Pope in order to place a heavy weight on the locks of hair she will eventually lose to the impetuous Lord.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Pope exaggerates Belinda’s physical attractiveness and the attractiveness of her jewelry as well. Though she is surrounded by many well presented youths, all adorned in splendor, â€Å"evry Eye was fixd on her alone† (Pope 2.6) Her physical beauty, as Pope describes it, is accentuated by the cross around her neck – which was so spectacular that â€Å"Jews might kiss, and Infidels adore†. (2.8) The power of a piece of jewelry to overcome religious conviction is very unlikely, however, for Pope, this is a perfect way to illustrate the perceived power of high social standing of the wealthy elite. For the members of the elite families of England, the importance of visual presentation cannot be over-stated, not even when compared to religion. Though the symbol she wears is a Christian icon, its beauty – both from its construction and the fact that it is being worn by a young girl of such attractiveness as Belinda, it could seemingly convert Jews and heathens from their chosen dogmas.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is also in canto two that the Baron, who will perpetrate the rape of the lock, is introduced. Lines twenty nine and thirty of the second canto reads: â€Å"Th Adventrous Baron the bright Locks admird, / He saw, he wishd, and to the Prize aspird†. This introduction of the Lord creates an interesting situation for the reader. Despite the several dozen lines of text which describe the beauty of Belinda’s clothing, jewelry as well as her physical features, it is the locks of hair that hang against her neck which the Baron first sets eyes upon, and subsequently longs for.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The first feelings of the Baron are shown to be violent in nature.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Resolvd to win, he meditates the way,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   By Force to ravish, or by Fraud betray;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   For when Success a Lovers Toil attends,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Few ask, if Fraud or Force attaind his Ends.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (2.31-34) This illustration of the man’s intent shows the reader that the Baron does not visualize the hair on Belinda as a part of Belinda – if he recognizes Belinda at all. The hair that hangs on her neck, however, is instantly revered as a stately prize.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is also through this section that the locks of hair are given a sexual persona. At no time does the Baron speak, or think of Belinda as a source of joy, but rather her hair as an all encompassing quest. The immediacy of the Baron’s passion for the locks of Belinda’s hair illustrates a very important aspect of his personality – the trophy is more important than the conquest. It is the intent of the Baron to display the locks of hair, as one would display a commendation. The locks of would signify the physical conquest of the beauty of Belinda – whether or not that conquest ever actually occurred.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The signification given to the locks of hair on Belinda’s head is that of her chastity. By removing them, the Baron, in so much as it was seen in the times, had given Belinda the equivalent of a badge of promiscuity. The path through which the Baron achieves his goal, is illustrated through a card game. though this game is seemingly innocuous, it symbolizes to very distinct and overt actions – the first being war, with the direct imagery within the poem, and the other being sex, by the eventual winning of the locks of chastity by the Baron.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The victory of the card game enables the Baron to cut the locks of hair from Belinda’s head. This action, keeping with the tone of the title of the poem, is illustrated violently – though the reality of the action was certainly far less extraordinary.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Peer now spreads the glittring Forfex wide,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Tinclose the Lock; now joins it, to divide.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Evn then, before the fatal Engine closd,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A wretched Sylph too fondly interposd;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fate urgd the Sheers, and cut the Sylph in twain,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (But Airy Substance soon unites again)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The meeting Points that sacred Hair dissever   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   From the fair Head, for ever and for ever!   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (3.147-154) The words used by Pope in this stanza are undoubtedly violent. Though the Baron is removing the hair with the pressured permission of Belinda, Pope chooses to paint this scene as though the Baron was attacking her, killing her, and/or ravaging her body. Pope also uses strange images to create the picture in the reader’s mind. Line 148 states that the scissors were closed around the hair, cutting it; however, the language chosen by Pope creates the image of both conjunction and disjunction.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This stanza is followed by:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Then flashd the living Lightnings from her Eyes,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   And Screams of Horror rend th affrighted Skies.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Not louder Shrieks to pitying Heavn are cast,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When Husbands or when Lap-dogs breath their last,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Or when rich China Vessels, faln from high,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In glittring Dust and painted Fragments lie!   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (3.155-160) This violence that is being spoken of here, as intended by Pope, creates the feeling of murder, and military conquest. The emotions that Pope takes advantage of here, are for the express purpose of illustrating the over-exaggerated weight placed in the locks of hair. This scene is intentionally written so violently, as to show the reader that the members of this social stratum have little understanding of the true importance of things – such as locks of hair.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Throughout canto four, Pope makes several allusions to the act of torture. It is the intent of these lines to show the reader that the taking of the locks of hair, for Belinda, however insignificant as they may truly be, was a painful and violating event. Meanwhile, the Baron, himself, calls into question the validity of the social significance of the hair: â€Å"While the Fops envy, and the Ladies stare! / Honour forbid! at whose unrivald Shrine / Ease, Pleasure, Virtue, All, our Sex resign†. (4.104-107)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The remainder of the poem, for Pope, further illustrates the illogical amount of importance placed on the loss of Belinda’s hair. The insistence that â€Å"Fate and Jove† where in the audience of this event, illustrates for the reader that the society which Pope is lampooning here feels that the Christian God and the pagan gods would be affronted by witnessing such a horrible action. Pope also suggests that the loss of Belinda’s locks would be of such great importance to the surrounding women in her life that their own lives would come to a halt – â€Å"For who cam move when fair Belinda fails?† (5.4)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Pope offers no redemption for the couple, or the society they inhabit. By line ninety-four of the fifth canto, Belinda and the Baron engage in actual combat. Pope uses this fight to further illustrate the complexity of this society’s skewed priorities.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Now meet thy Fate, incensd Belinda cryd,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   And drew a deadly Bodkin from her Side.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (The same, his ancient Personage to deck,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Her great great Grandsire wore about his Neck   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In three Seal-Rings which after, melted down,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Formd a vast Buckle for his Widows Gown:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Her infant Grandames Whistle next it grew,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Bells she gingled, and the Whistle blew;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Then in a Bodkin gracd her Mothers Hairs,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Which long she wore, and now Belinda wears.)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (5.86-96) The fact that the petite and beautiful Belinda pulls a blade from her side, and attacks the Baron with it, is against the idea of the age – where men are the fighters and women are weak in and in need of protection.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This attack by the young maiden is followed by the powerful Baron’s begging for his life â€Å"ah, let me survive†. (5.101) This, again, goes against the expectations of the reader, creating a setting of irrationality. These actions by Pope to create this skewed reality, are effective in forcing the reader to see the entire world of The Rape of the Lock as improbable.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Throughout the poem, Pope utilizes the tools of the ancient epic poems to create a sense of importance and truth to the work. Just as Homer had with his Iliad, Pope creates a tale of heroic and historical importance. However, this is simply a ploy to expose the utter lack of importance of the issue at hand. The entirety of the poem is an exaggeration of the expectations of the reader, and their knowledge of history and poetic license.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The complexity of Pope’s couplet rhyming as well as the loose iambic lines, suggest that the work is meant to be seen just as the historical epics had been. However, the use of exaggerated metaphors and unlikely situations confront that sense of importance – and overpower it. The voice that Pope uses throughout the poem allows the reader to feel at ease with the untrustworthiness of the narrator.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It was the intent of Alexander Pope to illustrate a situation in which a ludicrous amount of importance was placed on a fairly insignificant object – hair. Though the fact is never revealed within the poem, hair regrows naturally. This means that regardless of the taking of the hair by the Baron, given ample time, the hair would be replaced and the event completely forgotten. However, as with the strain between the two families for which Pope was inspired to write about, the event was seen as somewhat of a major catastrophe. WORKS CITED Pope, Alexander. The Rape of the Lock. University of   Massachusetts. Date of access: April 27, 2007. URL: http://www-unix.oit.umass.edu/~sconstan/index.html

Comparative Study of the Banks in Nepal

Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005) Comparative Study of the Banks in Nepal Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005)