Impact Of Interest Rate Changes On Banks Profitability Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2630 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Use of more than one independent variable in the analysis may cause of multicollinearity problem. The multicollinearity is measured by tolerance and variance of inflation factor (VIF). Tolerance is the proportion of variation in the dependent variable not explained by the model. The tolerance and VIF value showed that there is not much multicollinearity problem among independent variables. Which showed that overall model is good. 4.2: Multiple Regression Analysis Assumptions 4.2.1: Normality of error term distribution The normality is checked by normal probability plots. In the method, the normal distribution made a 45 degree straight line, and plotted residual are compared with the diagonal. As presented in the figure 4.1 the values of the residual fall along the straight line with not much difference. The figure concludes that the residual structure is normal. Don’t waste time! Our writers will create an original "Impact Of Interest Rate Changes On Banks Profitability Finance Essay" essay for you Create order Figure 4.1: Normal P-P Plot of Regression Standardized Residual Another method used to check the normality by histogram. The shape of the histogram in figure 4.2 showed that the figure closed to the shape of normal curve. Figure 4.2: Histogram 4.2.2: Linearity of the phenomenon measured The linearity of the relationship between dependent variable and independent variable represented the degree to which the change in the dependent variable is associated with independent variable. The figure 4.3 did not reflect any nonlinear pattern to the residual. Which shown that the overall relationship between variables is linear. Figure 4.3: Scatter Plot Interest Income Figure 4.4: Partial Regression Plot Interest Income and Interest Rate Figure 4.5: Partial Regression Plot Interest Income, Loan and Advances 4.2.3: Constant variance of error term The residual plots also showed that the presence of equal variance. This fulfilled the assumption of multiple regression model. 5.2.4: Independent of the error terms In regression each predicted value was independent of any other prediction. There were no sequenced by any variable from residual plot. 4.3: Reliability and Validity 4.3.1: Reliability The reliability is defined as the degree to which the observed values measure the true values, error free and consistent. The overall results were in line with the practices applicable in Pakistan. But the difference is appeared when the results of Pakistan compared with international practices. In high interest rate environment Pakistan banking getting high returns on the other hand the at global level interest rate were low. That clearly indicates the major differences in returns at Pakistan and international level. 4.3.2: Validity The validity is defined as the degree to which the measure is accurately represents what it is supposed to. The instrument has been used to predict the variation explained by the independent variable in interest income. The regression model used in the analysis and all the assumption has been fulfilled. 4.4: Hypothesis Testing H1: There is a significant and positive impact of interest rate on interest income. Result: Since the significant value of interest rate is 0.000, which was less than 0.050 and regression coefficient value 852.617 was also positive. That means interest rate had a significant and positive impact on interest income. That accepts the hypothesis H1. The reason for significant and positive impact was that rate increases and interest income increases. H2: There is a significant and positive impact of balances with other banks deposit accounts on interest income. Result: Since the significant value of balances with other banks- deposit accounts is 0.209, which was greater than 0.050 and regression coefficient value 0.057 was also negative. That means balances with other banks deposit accounts had no significant and positive impact on interest income. That rejects the hypothesis H2. The reason for no significant and positive impact was balances with other banks cover only the small portion of the banks earning assets. H3: There is a significant and positive impact of lending to financial institution on interest income. Result: Since the significant value of lending to financial institution is 0.917, which was greater than 0.050 and regression coefficient value 0.003 was also negative. That means lending to financial institution had no significant and positive impact on interest income. That rejects the hypothesis H3. The reason for no significant and positive impact was lending to financial institution cover only the small portion of the banks earning assets. H4: There is a significant and positive impact of investments on interest income. Result: Since the significant value of investments is 0.186, which was greater than 0.050 and regression coefficient value 0.079 was also positive. That means investment have no significant but had positive impact on interest income. That rejects the hypothesis H4. The reason for no significant but positive impact was that interest income not much dependent on investment. If the investment increases then interest income also increases but in small proportion. H5: There is a significant and positive impact of loan and advances on interest income. Result: Since the significant value of loan and advances is 0.000, which was less than 0.050 and regression coefficient value 0.118 was also positive. That means loan and advances have a significant and positive impact on interest income. That accepts the hypothesis H5. The reason for significant and positive impact was that as the portfolio increases the interest income increases. Table 4.6: Hypothesis Assessment Summary Hypothesis Independent Variables t value sig. Comments There is a significant and positive impact of interest rate on interest income. Interest Rate 6.474 0.000 Accepted since there was a significant and positive impact of interest rate on interest income. There is a significant and positive impact of balances with other banks deposit accounts on interest income. Balances with other banks deposit accounts -1.270 0.209 Rejected since there was an insignificant and negative impact of balances with other banks- deposit accounts on interest income. There is a significant and positive impact of lending to financial institutions on interest income. Lending to Financial Institution -0.105 0.917 Rejected since there was an insignificant and negative impact of lending to financial institutions on interest income. There is a significant and positive impact of investments on interest income. Investments 1.338 0.186 Rejected since there was an insignificant and positive impact of investments on interest income. There is a significant and positive impact of loan and advances on interest income. Loan and Advances 28.368 0.000 Accepted since there was a significant and positive impact of loan and advances on interest income. Dependent Variable : Interest Income Sig. Value: (0.05) 4.5: Chapter Summary The chapter included the results, interpretation, assumption in the multiple regression and hypothesis tested. The overall results are positive and significant. CHAPTER FIVE DISCUSSIONS, IMPLICATIONS, FUTURE RESEARCH AND CONCLUSIONS 5.1: Conclusion The objective of the study was to evaluate the impact of interest rate changes on banks profitability. The interest rate and loan and advances had a significant and positive impact on interest income. In the context of Pakistan interest rate and loan and advances had major impact on the banks interest income. The other significantly important variable was the loan and advances. As the portfolio of the loan and advances increases the banks interest income increases. Both the independent variable was directly related to interest income. The statistical result also showed that both the variable has significant and positive impact on the banks interest income. The regression technique also proved these findings. That means that profitability of bank dependant on interest rate, loan and advances. Specifically, in a higher interest rate environment, an increase in lending rates usually larger than the increase in deposit rates, which result in pushing up the bank, spreads. On the other side, in a lower loan and advances scenario, the opposite likely to be happen. When interest rate increases, lending rates tend to adjust more quickly as compare to deposit rates. While, in a declining situation deposit rates adjust faster then lending rates. Banks were more sensitive to interest rat risk as compare to the other financial institution. It is feared that further increase in the interest rate would slow the growth of advances and increase in the bad debts. Short term interest rate changes was a serious issue among shareholders, managers and analysts and most of the banks represent no serious threat on long term interest rate. That would affect the performance and credit rating of financial institution. The Paid up capital requirement of Rs. 7 billion until 2010 by the SBP also encourage further consolidation in the banking sector. It used for decrease the impact of risk, conservative growth in advances and deposits, bringing downward advances to deposits ratio. But the major concern was the interest rate movement which damaging in great deal. It would be very difficult for individual to save money and made investment in the economy. The findings clearly suggested that main determinant of banks profitability are interest rate, loan and advances. The only way to increase banks profitability by way of having good quality portfolio in terms of assets, check and balance system developed to monitor closely such default risk and interest rate risk. Usually Banks have different polices in place to monitor the customer credit worthness in the form of KYC, AML, watch list, credit rating and electronic credit information bearue (ECIB). Banking was about how to managing its risk and return. Success in banking system is dependent on how well organization manages its risk and return. The nature of banks business was to identify, evaluate and manage risk effective and efficiently. 5.2: Discussions and limitations There were some limitations in the research. Such as; The basis for calculation of interest income was KIBOR rate. The Pakistan banking system started practicing KIBOR rate as benchmark from 2002 onward. Therefore, the study period is 2003 2008. The sample size consists of ten major banks in Pakistan. That covered 76% market share of the Pakistan banking industry. 5.3: Implications and Recommendation 5.3.1: Implications The mechanism of monetary policy was to bring discipline and efficiency in the financial sector and developing a favorable environment for economic growth. The central bank pursued a tight monetary policy from past few years. There are several objective of monetary policy to control inflation, government borrowing and interest rate. In Pakistan, rising inflation and interest rate was the most common phenomenon. Rising lending rates harms the economy and consumer. It is a fact that high lending rates are regularly linked to high inflation. The changes in interest rates affect consumption and savings decisions of households, corporate level and also affect the output and investment decision throughout the economy. The central bank set the interest rate at which bank lends money to financial institutions and consumer. This measure will help in controlling the monetary pressure associated with the economy. 5.3.1.1: Decrease in interest rates As a general rule, the decrease in interest rate is best for the economic environment. When consumer can afford to borrow funds because customers dont have to pay high interest rate on borrow funds. Interest rate used as a tool for controlling the economic growth. When the economy grows rapid pace then it will experience inflation. Prices rise to a high level and no one can afford changes in real interest rate. That affects the public demand for goods and services due to altering the availability of bank loans. A low real interest rate decreases the borrowing cost that leads to the investment spending and encourage people to spend in various forms consumer durables. Low interest rate provide corporate level opportunity to take new capital investment spending and increase the firm confidence by making heavy investment in growing sector and generating heavy revenue. That result in stabilizing the economy and providing employment opportunities. The other aspect of low interest rate was that it will decrease the default risk of counter party. It means that people have more disposable income to pay their borrow funds and take saving decisions. Cause depreciation in the exchange rate and increase demand for domestic producers those who sell goods and services global markets. The rise in the growth of exports would increase the aggregate demand. 5.3.1.2: Increase in interest rates The increased in rate will increase the cost of property. Conversely, fall in the interest rate increase the demand and increase pressure on mortgage prices. That would increase the spending associated with mortgage buying and increase in prices had increase the total wealth. The increase in interest rate opens the door for increasing non performing loans. Despite the fact that heavy amount of provisioned made by the banks. Inefficient and corrupt borrowers try to find out an easy exit way to avoid repayment. That problem was going to be worsted due to low recovery rate of bad debts. 5.3.2: Recommendations The banks can decrease their risk with out involvement of funds by developing their focus on non interest income. Bank must take conscious measure about capital adequacy ratio and abrupt changes in the interest rate. The central bank should play their role in standardization of interest spreads. There has been a gap of 5 to 8 percent between what the banks in Pakistan were paying to the deposit holders and what charging to borrowers, which was not in line with the international level. Banks management should required to logically focus on improving the quality of their banks profitability by providing better return to depositors and charge less interest rate to borrowers for the development of economy. APPENDICES Appendix A Data Sheet Period 2003 2004 2005 2006 2007 2008 Interest Rate 2.4588 3.3384 8.1853 9.9159 10.1640 12.8018 S.No Bank Year Interest Income Balances with Other Banks Deposit Accounts Lending to FIs Investments Loan and Advances 01 ABL 2003 4,984.607 1,607.460 15,361.240 40,972.690 49,986.980 02 ABL 2004 5,244.710 1,183.920 16,175.000 57,631.300 69,948.840 03 ABL 2005 9,846.657 2,329.190 5,777.380 45,068.120 119,506.010 04 ABL 2006 17,215.507 460.830 19,050.240 47,274.640 151,705.420 05 ABL 2007 21,201.422 18,419.240 84,209.830 178,524.360 06 ABL 2008 30,570.540 15,793.180 86,560.780 223,639.780 07 AB 2003 4,373.715 2,370.460 5,770.840 20,421.220 46,341.070 08 AB 2004 4,487.206 4,194.420 2,324.840 16,602.370 71,718.490 09 AB 2005 8,780.698 4,949.270 10,172.240 24,447.030 88,395.860 10 AB 2006 12,596.921 6,019.030 8,392.950 27,094.960 102,724.880 11 AB 2007 15,143.241 2,697.120 14,444.140 39,196.290 108,188.770 12 AB 2008 18,393.313 2,847.660 4,479.750 37,077.250 139,830.970 13 BAF 2003 4,033.380 138.920 7,437.730 28,603.260 50,372.330 14 BAF 2004 5,620.203 1,195.210 35,346.540 90,291.460 15 BAF 2005 12,246.811 7,714.610 27,050.490 57,445.250 120,416.990 16 BAF 2006 21,191.470 9,929.260 12,456.650 57,152.550 152,235.780 17 BAF 2007 25,783.871 14,695.660 3,452.060 88,568.460 175,678.810 S.No Bank Year Interest Income Balances with Other Banks Deposit Accounts Lending to FIs Investments Loan and Advances 18 BAF 2008 31,046.583 12,815.470 3,315.500 77,655.480 198,811.850 19 BAH 2003 2,403.489 303.650 469.630 14,109.220 35,543.980 20 BAH 2004 2,432.106 3,952.270 2,471.000 14,413.790 47,536.980 21 BAH 2005 4,935.626 377.170 3,352.750 19,502.320 55,526.000 22 BAH 2006 7,857.745 536.820 6,578.800 20,949.460 71,036.210 23 BAH 2007 9,945.872 262.700 4,112.430 35,240.220 79,446.700 24 BAH 2008 14,604.237 2,513.210 295.400 48,360.340 101,422.780 25 HBL 2003 19,049.914 17,049.800 22,595.490 158,870.810 216,380.740 26 HBL 2004 18,198.725 28,962.540 3,755.040 132,354.980 292,398.010 27 HBL 2005 32,343.206 27,558.480 12,272.250 107,678.120 350,424.900 28 HBL 2006 43,685.740 29,301.390 6,550.130 120,077.020 371,364.540 29 HBL 2007 50,481.021 22,865.310 1,628.130 178,463.740 403,478.900 30 HBL 2008 63,305.033 35,810.250 6,193.790 146,668.940 484,451.900 31 HMB 2003 2,684.887 195.090 3,896.280 17,958.900 32,637.090 32 HMB 2004 2,783.812 1,695.490 4,132.230 15,559.830 40,599.290 33 HMB 2005 4,358.556 381.790 5,462.580 22,003.310 44,039.160 34 HMB 2006 7,289.123 4,665.010 5,447.110 39,252.460 84,142.090 35 HMB 2007 11,983.551 2,175.450 3,989.250 61,656.770 91,044.060 36 HMB 2008 15,873.445 1,537.310 98.180 55,347.780 110,391.360 37 MCB 2003 10,569.994 290.360 10,430.450 125,635.810 104,011.100 38 MCB 2004 9,083.863 3,972.120 10,965.300 66,220.990 144,010.170 39 MCB 2005 17,756.232 548.150 9,998.830 68,261.030 188,139.680 40 MCB 2006 25,778.061 2,531.000 21,081.800 62,178.080 206,847.500 S.No Bank Year Interest Income Balances with Other Banks Deposit Accounts Lending to FIs Investments Loan and Advances 41 MCB 2007 31,786.595 571.810 1,051.370 111,816.630 229,732.870 42 MCB 2008 40,043.824 696.010 4,100.080 102,168.650 273,222.330 43 NBP 2003 19,452.317 19,979.670 29,937.860 168,280.530 188,958.770 44 NBP 2004 20,947.333 47,412.390 10,511.320 146,984.970 250,494.740 45 NBP 2005 33,692.665 28,068.920 16,282.940 120,471.490 299,422.810 46 NBP 2006 43,788.628 39,662.610 23,012.730 114,093.350 348,370.460 47 NBP 2007 50,569.481 30,356.200 21,464.600 180,431.770 374,732.030 48 NBP 2008 60,942.798 35,021.680 17,176.030 167,708.330 457,828.030 49 NIB 2003 172.372 347.580 951.960 6,791.960 50 NIB 2004 803.542 118.860 1,812.910 1,329.410 12,349.390 51 NIB 2005 1,716.917 1,400.000 2,270.000 5,205.170 20,181.320 52 NIB 2006 3,499.278 1,100.000 2,600.000 6,677.110 31,874.850 53 NIB 2007 6,999.888 535.720 4,753.110 40,593.510 92,586.340 54 NIB 2008 15,201.691 12,459.620 37,663.870 97,322.480 55 UBL 2003 9,269.494 17,959.120 23,096.030 53,841.740 114,897.000 56 UBL 2004 9,660.563 22,801.880 16,262.500 52,906.600 166,488.950 57 UBL 2005 20,687.373 13,262.180 17,867.550 61,236.540 239,613.350 58 UBL 2006 33,627.533 18,164.960 29,572.070 65,571.650 282,322.910 59 UBL 2007 41,045.543 2,583.690 24,781.720 115,967.140 334,120.160 60 UBL 2008 52,253.361 3,056.020 22,805.340 126,129.800 410,665.880 Appendix B Banks included in the study with legend S.No Legend Bank 1 AB Askari Bank Limited 2 ABL Allied Bank Limited 3 BAF Bank Al Falah Limited 4 BAH Bank Al Habib Limited 5 HBL Habib Bank Limited 6 HMB Habib Metropolitan Bank Limited 7 MCB MCB Bank Limited 8 NBP National Bank of Pakistan 9 NIB NIB Bank Limited 10 UBL United Bank Limited Appendix C SPSS Results Table 4.1: Descriptive Statistics Mean Std. Deviation N Interest Income 18,772.105 16,092.870 60 Interest Rate 7.811 3.766 60 Deposits with other Banks 9,089.759 12,244.525 60 Lending to FIs 10,296.928 8,376.489 60 Investments 68,035.369 49,741.048 60 Loan and Advances 165,419.474 122,548.000 60 Table 4.2: Correlations Interest Income Interest Rate Deposits with other Banks Lending to FIs Investments Loan and Advances Pearson Correlation Interest Income 1.000 0.581 0.617 0.363 0.811 0.961 Interest Rate 0.581 1.000 0.031 0.024 0.201 0.436 Deposits with other Banks 0.617 0.031 1.000 0.318 0.703 0.723 Lending to FIs 0.363 0.024 0.318 1.000 0.431 0.412 Investments 0.811 0.201 0.703 0.431 1.000 0.862 Loan and Advances 0.961 0.436 0.723 0.412 0.862 1.000 Sig. (1-tailed) Interest Income . 0.000 0.000 0.002 0.000 0.000 Interest Rate 0.000 . 0.408 0.429 0.062 0.000 Deposits with other Banks 0.000 0.408 . 0.007 0.000 0.000 Lending to FIs 0.002 0.429 0.007 . 0.000 0.001 Investments 0.000 0.062 0.000 0.000 . 0.000 Loan and Advances 0.000 0.000 0.000 0.001 0.000 . N Interest Income 60 60 60 60 60 60 Interest Rate 60 60 60 60 60 60 Deposits with other Banks 60 60 60 60 60 60 Lending to FIs 60 60 60 60 60 60 Investments 60 60 60 60 60 60 Loan and Advances 60 60 60 60 60 60 Table 4.3: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .961a 0.924 0.923 4,477.355 2 .978b 0.956 0.955 3,428.556 Table 4.4: ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 14,120,000,000 1 14,120,000,000 704 .000a Residual 1,163,000,000 58 20,050,000 Total 15,280,000,000 59 2 Regression 14,610,000,000 2 7,305,000,000 621 .000b Residual 670,000,000 57 11,750,000 Total 15,280,000,000 59 Table 4.5: Interest Income Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) -2107.823 976.321 -2.159 0.035 Loan and Advances 0.126 0.005 0.961 26.537 0.000 1.000 1.000 2 (Constant) -6878.423 1049.738 -6.553 0.000 Loan and Advances 0.115 0.004 0.874 28.368 0.000 0.810 1.235 Interest Rate 852.617 131.700 0.200 6.474 0.000 0.810 1.235 Table 4.6: Excluded Variables Model Beta In t Sig. Partial Correlation Collinearity Statistics Tolerance VIF Minimum Tolerance 1 Interest Rate .200a 6.474 0.000 0.651 0.810 1.235 0.810 Deposits with other Banks -.164a -3.404 0.001 -0.411 0.477 2.096 0.477 Lending to FIs -.041a -1.024 0.310 -0.134 0.830 1.205 0.830 Investments -.068a -0.957 0.343 -0.126 0.258 3.883 0.258 2 Deposits with other Banks -.057b -1.270 0.209 -0.167 0.377 2.652 0.306 Lending to FIs -.003b -0.105 0.917 -0.014 0.800 1.250 0.648 Investments .079b 1.338 0.186 0.176 0.220 4.549 0.186 Figure 4.1: Normal P-P Plot of Regression Standardized Residual Figure 4.2: Histogram Figure 4.3: Scatter Plot Interest Income Figure 4.4: Partial Regression Plot Interest Income and Interest Rate Figure 4.5: Partial Regression Plot Interest Income, Loan and Advances

Baldwin s Views On Personal Liberation - 1731 Words

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Concerns of APRA and ASIC-Free-Samples for Students-Myassignment

Question: APRA and ASIC have separate regulatory roles in relation to the financial services sector, including banking. Both APRA and ASIC have published their concerns about aspects of lending practices of Australian banks. Discuss the above statement. Answer: Introduction In Australia, the financial regulation is quite detailed and extensive. The financial regulation is split in the nation between Australian Prudential Regulatory Authority, i.e. APRA, and Australian Securities and Investments Commission, i.e. ASIC. Both APRA and ASIC, have different regulatory roles when it comes to the financial services sector and this includes banking (Tyree, 2014). In reference to the lending practices of Australian banks, both the bodies have published their concerns. This discussion is focused on highlighting the role of the two and the manner in which their responsibility is different from each other. Further, a summary would also be provided in context of the concerns of these two and the actions proposed by them. APRA and ASIC APRA APRA on the other hand, has the responsibility of licensing and for the prudential supervision of ADIs, i.e. the Authorized Deposit-taking institutions, superannuation funds, and life and general insurance companies. The APRA regulated financial institutions are obligated to submit period reports to APRA (Lui, 2016). It has also brought forth the capital adequacy guidelines for the banks, which match the Basel II guidelines. Such investment banks which are not operated under the ADIs, are not regulated under the Banking Act, 1959, and are not licensed under this legislation, are not subjected to the APRAs prudential supervision (OECD, 2017). Though, the majority of investment banks have to provide APRA with the statistical information based on the Financial Sector (Collection of Data) Act, 2001 (Pearson and Batten, 2010). APRA is basically an integrated prudential regulator which has the responsibility for deposit taking institutions like credit unions, banks and building societies, along with the friendly societies. The prudential policies have to be developed by APRA which balance the financial safety and competitive neutrality, competition, efficient and contestability (Reserve Bank of Australia, 2018). ASIC ASIC has the responsibility for consumer protection, market integrity, and for the regulation of finance companies and investment banks. Though, when it comes to the practical aspect, this function is manifested by application of EDRs, i.e. External Dispute Resolution schemes. Presently, there are two EDRs approved by ASIC. And in this, the prominent one is FOS, i.e. the Financial Ombudsman Service (Australia). FOS gets around thirty thousand complaints every year. The second one is CIO, i.e. the Credit and Investment Ombudsman, which for the year of 2015-16 got 4,769 complaints (CIO, 2016). CIO and FOS are both nongovernmental and not for profit organizations which are funded through the members, included in which are the financial advisers, banks and the other financial service providers. So, there is a major self regulatory and private element in the banking regulators (Pearson, 2009). ASIC basically administers and enforces a number of legislative provisions which are related to financial products, financial markets and the financial sector intermediaries. The goal is to safeguard the consumers and market from unfair practices, manipulation and deception, whereby the confident participation in financial system by the consumers and investors is promoted (Reserve Bank of Australia, 2018). Concerns of APRA and ASIC APRA APRA has decided to intensify its scrutiny over the lending practices of banks for the present year. Included in this is investigating on the possibility of banks overriding the policies drawn by them in an inappropriate manner. This indicates that the lending restrictions placed on the investor borrowers would continue to apply even with the housing figures showing the easing up of demand for loans. As per APRA, there was a need for improving the assessment of the repaying ability of the borrowers and there was a need to be conservative regarding the consumer sendings benchmark estimates. As per APRA, there was a need for the banks to monitory the use of discretion by the bankers in a closer manner, for overriding the lending policies. This was because there was no use of stronger policies where these could be overridden and also where the data deficiencies meant that the policy was not complied with or being fully monitored (Eyers, 2017). APRA has asked the banks to take on a more strict assessment of borrowers. Since APRA is not convinced that the banks actually follow this policy in a comprehensive manner, there was a need at the actual lending practices, where additional assurance was sought out regarding the tighter loan policies actually resulting in more prudent lending decisions. A comprehensive credit reporting reform was also suggested, whereby the banks would be made to report regarding the positive credit history to bureaus, along with the history of default. These measures are expected to make certain that the earlier debts of the borrowers in existence were known and can be properly factored in the assessment of these loans (Eyers, 2017). ASIC ASIC too has worked on the issue highlighted by APRA and is aggressively pursuing Westpac over the alleged contraventions of lending laws. Civil proceedings have been started by ASIC against Westpac for their alleged failure in assessing the repaying capability of the borrowers in a proper manner. The main allegations were related to the reliance placed by Westpac on the index HEM for determining the money which could be given to the borrowers. The claim of ASIC was that this was an improper measure and that Westpac should have properly analysed the repaying ability of the borrowers on the basis of their actual spending. This was because Hem only represented the estimates of consumption of the Australian families and had not been formed by making reference to the expenditure data which was collected during the relevant time frame. This was because the data relied on by Westpac was one 2009-10 when the loans were issued in between December 2010 to March 2015. Westpac on the other hand claimed that the HEM benchmark was an objective measure which was not dependent on quality of estimation of consumer expenses. They also stated that there was reliance on other factors as well, and HEM was not solely relied on. They also provided that HEM was commonly used as a measure for providing loan (Mather, 2017). Conclusion Thus, from the discussion undertaken in the previous segments, it can be concluded that APRA and ASIC are two crucial financial regulatory bodies in the nation. Both of these bodies have separate roles and yet both have an important role to play. Due to the recent cases, both bodies have taken a proactive role in checking the lending practices of the Australian Banks. The case which the ASIC was present pursuing against Westpac only proves the contentions put by APRA in the previous segment as being truer, as there is indeed a need for stricter measures to be adopted in a proper manner and a need for analysing the lending practices of the Australian banks. References CIO. (2016) Annual Report on Operations 2016. [online] Available from: https://www.cio.org.au/publications/annual-report-on-operations/annual-report-on-operations-2016.html [Accessed 03/04/18] Eyers, J. (2017) APRA to ramp up scrutiny of bank lending practices. [online] Available from: https://www.afr.com/real-estate/residential/apra-to-ramp-up-scrutiny-of-bank-lending-practices-20170908-gydmfb [Accessed 03/04/18] Lui, A. (2016).Financial Stability and Prudential Regulation: A Comparative Approach to the UK, US, Canada, Australia and Germany. London: Taylor Francis. Mather, J. (2017) ASIC's responsible lending battle with Westpac heats up. [online] Available from: https://www.afr.com/business/legal/asics-responsible-lending-battle-with-westpac-heats-up-20170904-gyabdc [Accessed 03/04/18] OECD. (2017) Global Forum on Transparency and Exchange of Information for Tax Purposes Global Forum on Transparency and Exchange of Information for Tax Purposes. Paris: OECD Publishing. Pearson, G. (2009)Financial Services Law and Compliance in Australia. Victoria: Cambridge University Press. Pearson, G., and Batten, R. (2010) Understanding Australian Consumer Credit Law: A Practical Guide to the National Consumer Credit Reforms. North Ryde: CCH Australia Ltd. Reserve Bank of Australia. (2018) Council of Financial Regulators Annual Report 2002. [online] Available from: https://www.rba.gov.au/publications/annual-reports/cfr/2002/aus-fin-reg-frmwk.html [Accessed 03/04/18] Tyree, A.L. (2014) Banking Law in Australia. 8th ed. Sydney: LexisNexis Butterworths.

I/O psychology free essay sample

Working With Employees Portfolio Assignment Resources: University of Phoenix Material: Working With Employees   Read the University of Phoenix Material: Working With Employees located on your student website. Begin working on the assignment, which is due in Week Five. This assignment is designed to help you identify common problems that managers face when dealing with employees and the solutions that managers use in an attempt to solve those problems. You are provided an opportunity to evaluate the efficacy of the solutions from a practical perspective and from the perspective of research in Industrial/Organizational psychology. Learning Team Employee Selection and Training Paper Write a 1,050- to 1,400-word paper in which you examine the role of industrial/organizational psychology in selecting and training employees. In your examination, address the following: Choose at least two real-world examples of how organizations have used industrial/organizational psychology to select and train employees. Discuss methods to measure the level of success of each training program. We will write a custom essay sample on I/O psychology or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Discuss any legal and/or ethical concerns that may arise in the implementation of each training program. Include at least three references. Format your paper consistent with APA guidelines. Monday Week Four: The Individual and the Organization Details Due Points Objectives 4.1 Evaluate the different employee motivation theories and discuss some applications to organizational settings. 4.2 Examine the concepts of job satisfaction and how it applies to a success or failure. 4.3 Discuss concepts of productive and counterproductive employee behavior. 4.4 Examine basic concepts of occupational stress.

Julia Caesar Supreme Power essays

Julia Caesar Supreme Power essays Julius Caesar was born into a patrician family in Rome, but early on he opposed the rule of a small conservative group. His family belonged to the old nobility the patrician order and several of his ancestors had won distinction in the service of the state. Caesar was the most prominent man of all history; for this genius transcendent in three directions, in politics, war, and literature. Caesar's life was cast in a period with great changes for the Roman State. Both strength and security had given place to violent party strife, which threatened the existence of government in Rome. The city was crowded with turbulent throngs of poor citizens who received grain from the public treasury at a very low rate. Notwithstanding the risk and uncertainty, politics were thought the only field of activity as a young Roman man of standing. Caesar became a follower of Gaius Marius a great popular leader and Sulla the aristocratic dictator of Rome forced Caesar to leave Rome. Julia Caesar went t o Greece to study philosophy but was later permitted to return to Rome where he was occupied a number of public offices. In 61 BC he became governor of a Spanish province. When Julia returned to Rome, he allied himself with Pompey and crassus in the First Triumvirate and was elected consul in 59 BC. In 58 BC Caesar began a number of military campaigns in Gaul (France), campaigns that established his military genius. During Caesar nine years in Gaul, he lost two battles; he conQuered all territory east to the Rhine and invaded Britain twice. After the Roman Senate instructed him in 49 BC to lay down his command, he crossed the Rubicon a stream that separated his provinces from Italy. With this act, Caesar provoked a civil war, which was his greatest step toward grasping supreme power. He had himself appointed dictator and consul as well as tribune for life. He followed Pompey to Greece and then to Egypt and defeated him. During the next sixteen years ...

Myself Included

Myself Included Myself Included Myself Included By Maeve Maddox A reader questions my use of the phrase â€Å"myself included† in the following extract from a post on who versus that: Many speakers, myself included, feel that who is usually the first choice when the antecedent is human, but recognize that its use is a stylistic choice and not a matter of rule. Sometimes that may be the better choice. Says the reader: I’m wondering about your use of ‘myself’. I would have assumed it should be ‘me included’. Or have I misunderstood the reflexive pronouns? I’m curious because it’s one of my pet peeves when someone ends an email with ‘if you have any questions, you can refer to myself.’ The reader has not misunderstood the general rules for the reflexive pronouns. 1. A reflexive pronoun is used as a direct object when the object is the same as the subject of the verb: â€Å"I cut myself shaving again.† 2. The reflexive pronoun is used as an indirect object when the indirect object is the same as the subject of the verb: â€Å"She bought herself a new car.† 3. The reflexive pronoun is used as the object of a preposition when the object refers to the subject of the clause: â€Å"My son built our deck by himself.† Note: The phrase â€Å"by + reflexive pronoun† shows that someone did something alone and/or without any help. The same meaning is conveyed when the reflexive pronoun alone is placed at the end of a sentence: â€Å"I baked all the cookies myself.† 4. The reflexive pronoun is used to emphasize the person or thing referred to: â€Å"The binding itself is worth  £50.† Note: This use of the reflexive pronoun is especially common when the person referred to is famous or powerful: â€Å"The Queen herself wrote a note of condolence to her butler.† The most common errors made with reflexive pronouns are the sort the reader refers to, the use of a reflexive pronoun when the context calls for a plain personal pronoun: INCORRECT: If you have any questions, you can refer to myself. CORRECT: If you have any questions, you can refer to me. The error here is using a reflexive pronoun as the object of a preposition that does not refer to the subject of the clause (you). Other common errors include the following: INCORRECT: Jack and myself traveled to Greece this summer. CORRECT: Jack and I traveled to Greece this summer. The error is in using the reflexive pronoun as the subject of a verb. INCORRECT: When you give out the presents, don’t forget Margie and myself. CORRECT: When you give out the presents, don’t forget Margie and me. The error here is using reflexive myself as the object of the verb forget. Although the phrases â€Å"myself included† or â€Å"including myself†seem to defy the rules they have enjoyed a long history of use by reputable writers. The Ngram Viewer indicates that â€Å"including myself† is far more common than â€Å"including me† in printed books. A Web search for â€Å"including me† brings 617,000 results; â€Å"including myself† brings 3,890,000 results. An article by linguist James Harbeck lists fourteen examples of exceptions to the rules. Here are three of them: You seem like a better version of myself. (object of preposition) There are two others here besides myself. (object of preposition) Myself, as director here, will cut the ribbon. (subject of sentence) Sometimes â€Å"including me† is the obvious choice, but in other contexts, a writer may prefer â€Å"including myself.† Compare: Everyone received a lavish gift, including me. Many scientists, including myself, found the film outrageous in its inaccuracies. The best advice about the use of reflexive pronouns is to master the rules, but to remain aware that sometimes â€Å"nonstandard† myself may be more idiomatic than me. â€Å"If you have any questions, you can refer to myself† is unquestionably nonstandard, but in contexts in which a speaker or writer is espousing an opinion shared by others, â€Å"myself included† and â€Å"including myself† are established idioms. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:Spelling Test 18 Types of Parenthetical PhrasesCaptain vs. Master

Movie Bury My Heart at Wounded Knee Review Example | Topics and Well Written Essays - 1000 words

Bury My Heart at Wounded Knee - Movie Review Example It encompasses just a piece of the history that the book arrays over. This includes the battle of little Big Horn to the killing of sitting bull. This film directed by Yves Simoneau; however covers a lot more enough deceitfulness and deviousness and unfulfilled treaties on the side of the United Sates government. Yet still, the downside to it is are the approaches of the white men in charge, such like President Ulyness Grant. Grant is a good friend to the red Indians, who thinks that by contributing to the evolution of the red Indians best guarantees his survival. He also believes that there no way Sioux is going to be saved unless the rd Indians are obliged to give up their uncivilized way of life and patch up on the corollary. The whole anthropological, political and sociological careers have been exhausted by the disentanglement racism involved in statements such like those. Ironically, the burning of villages was clearly not an American discovery of 20th century. However, Bury My Heart at Wounded Knee is intoned with not only with scenes of this time but also of the late 18th century of the inevitably slow holocaust of the Native Americans. These Native Americans were expunged from their own land, and become inexorable sufferers of their own efforts to mollify the mysterious white men who believe they can possess the entire world. However, we rarely see the first accord between Indians and European and Indian. What we see is the infuriating outcomes of it. When the Native Americans gave an edge, they were mislaid after respectable men, such like Dawes, were blackmailed by their own rejection to see any appeal in Native American cultures. In this context, this is signified is so very measly but frighteningly warm calamity of Charles Eastman. Eventually, Sioux is wrenched away from ethnic life as a young adolescent and brought up in the civilization of European settlers back East. The brilliant Adam Beach realizes when it’s too late that the ulterior m otive behind the Americans was to use him as a weapon with which to destroy his own people as well as Native American civilization. The shame and tragedy play out in measly moments. For one thing, the youthful Charles braids being sliced off, the distraction of the men on the corollary; the effect is extreme. It is a lot enough to make any conscientious American disgraced by the dismays visited on the Native Americans in the name of liberty and principles. This film was adopted form the novel Bury ‘My Heart at Wounded Knee† by Dee Brown. The movie links the ending years of a shameful chapter of American history. Straddling the period of 1850 to 1890, this film chronicles the destiny of the many native tribes who were forfeited for the sake of the white American gluttony for land tracks of land and readily available resources. From the onset, the film depicts the expunging of the Navajos from their ancestral homes to a proviso. On the same length, they are however permitt ed to return to their native land, which is somewhat less fertile. This film evokes the feeling that this event hallmarked the last fight of the Native American. Throughout the film, furthermore, voices of the past can still teasingly be heard. This film brings to mind the feeling that it was somewhat it is a lot more kind of a condemnation of white America and an outlook that perseveres until today. The hostile attitudes that permitted the United States government and Army to defeat a whole nation can be found in the American

Prison is primarily a mechanism for the regulation of labour Essay

Prison is primarily a mechanism for the regulation of labour - Essay Example Considerations for the profitability of prison labour have been seen from various corporations and businesses and they have since considered the prisoners as labourers. Critics to this practice however point out that prison seems to have become a mechanism for controlling and regulating labour, and that in the process, the system has circumvented fair labour practices, including unionization and minimum wage requirements. Corporations however are quick to point out that prison labour is part of the rehabilitation process and is within the fair mandates of the law. Based on these opposing sides to the issue, this paper shall discuss the thesis that: Prison is primarily a mechanism for the regulation of labour. A clear and comprehensive analysis shall be considered in order to arrive at a valid and reliable understanding of the issue. Body Prison labour has been the subject of various international legal arguments. These arguments all relate to the application and validity of its practice. Prison labour is basically understood as labour â€Å"undertaken by convicts housed within the confines of a prison, both private and public that produces either a good or a service† (American University, 2001). The US is going through a period of liberalization and with the creation of private prisons, laws have begun to change in relation to inmate labour. The US Prisons Industries Enhancement Program (PIE) has assisted prisons to coordinate with private industries in order to market prison products on a wider scale (American University, 2001).... In the UK, prison labour is also not an unfamiliar practice. Prisoners in the UK are now known to be working for many of UK’s well-known brands for as little as 4 pounds a week (Cookson and Chamberlain, 2009). Companies like Virgin Atlantic, Monarch Airlines, and Travis Perkins are just some of these companies who are benefiting from prison labour and the NHS and the Ministry of Defence has also been known to utilize these goods produced by prisoners (Cookson and Chamberlain, 2009). More than 100 companies are utilizing prison labour in England and Wales, producing holiday brochures, name tags, and balloons for industrial mouldings. And most people are actually unaware that their products are being made by inmates (Cookson and Chamberlain, 2009). In about a year, an estimated 30 million pounds between companies and prisons are being signed. Critics are quick to label these contracts to be exploitative because they provide prisoners with mundane and repetitive work; and their a ctual rehabilitation process is actually not given much attention (Cookson and Chamberlain, 2009). There are about 80,000 inmates in the US who are involved in commercial activities, and some of them are making about 21 cents per hour for their labours (Whyte and Baker, 2000). The US government presently employs around 21,000 inmates making various products, including file cabinets, electronic equipment, and military helmets which are then sold to federal agencies and private companies (Whyte and Baker, 2000). Sales from prison labour products now register at $600 million with about 37 million dollars in profits. Prison labourers are also now in the manufacturing industry, participating in making blue jeans, auto parts,

Domestic Issues Faced By The United States Of America Essay Example for Free

Domestic Issues Faced By The United States Of America Essay Human Rights human rights in the United States has been criticized for their practices and policies. The record shows that human rights in the United States are complicated and controversial issue. Racial discrimination – Whether they are African American or Native American they are all human beings. Policy advice blacks should be treated equally and can have the same opportunities and protection from the government just like the whites get. Segregation of white and black is a good consideration too. Inhumane Treatment Death Penalty – human rights is the maximum and irreversible denial under the death penalty. It is controversial for its capital punishment. It is inhumane, cruel and unusual violation. Policy advice is to prohibit execution. Prison System – imprisonment of children and teenagers. A lot of mistreatment, rape, sexual abuse etc. Those behaviors are unlawful. Policy advice give medical care, stop prisoner rape, add more security and abolish death sentence. GLOBAL ISSUES FACED BY THE UNITED STATES OF AMERICA Global Warming – ‘the earth’s temperature is rising’. Policy advice – we have to have a major sacrifices to solve the problem. Global Health Issues – ‘every year millions of people die needlessly because of poverty’. Policy advice – privatization of health system. World Hunger and Poverty Land Rights – ‘owning of land’. Policy advice – build a program to provide land ownership for the poor. Rainforest Destruction – one effect of the banana industry is ‘rainforest destruction and dependent economies. Policy advice – prioritize the local market before exporting. To conclude, it is important to know our rights in the society because each one of us is entitled to have our own niche in this country and even in this world. R E F E R E N C E S Free, Marvin D. Jr. (November 1997). The Impact of Federal Sentencing Reforms on African Americans 28 (2): pp. 268-286. Retrieved on 2007-05-31. http://en. wikipedia. org/wiki/Human_rights_in_the_United_States#cite_note-1 Anup Shah, Food and Agriculture Issues, GlobalIssues. org, Created: Monday, December 03, 2007 http://www. globalissues. org/food/

Free Oedipus the King Essays: The Worst Enemy of Oedipus :: Oedipus the King Oedipus Rex

The Worst Enemy in Oedipus the King In the Greek tragety Oedipus the King Tiresias speaks the truth when he tells Oedipus, "you are your own worst enemy." He is too determined to find out who he is, that shouldn't be so important to himself. He also, is too proud to listen to the gods. He thinks he can get out of following through on his fate. So, it is he that dooms himself. First of all, Oedipus is determined to discover who he is. He can not accept things as they are and by stubbornly investigating his past, he is his own worst enemy by destroying his relationships and himself. When he was a young man he heard gossip that his father was not his real birth father. He was bothered to learn the truth from the oracle. He truly believed that his adopted parents were his real parents so he moved to Thebes so he wouldn't fulfill the oracle. When he finally realized that he killed a man that was old enough to be his father, he considered the fact that it could have been his father that he killed. That means that he married his mother. Oedipus drives his mother to kill herself. "Storm, then, let it burst! Born from nothing though I be proved, let me find that nothing out...My fealty to that family makes me move true to myself. My family I shall prove" (Oedipus page 60). Oedipus was a very proud man. I believe that his pride was his biggest character flaw and because of his pride, the conclusion of the play was tragic. He feels that he has to take responsibility for his actions even though he had no control over them. He doesn't want to live anymore because he married his mother and killed his father and so the oracle had come true. "Lost! Ah lost! At last it's blazing clear. Light of my days, go dark. I want to gaze no more. My birth all sprung revealed from those it never should, myself entwined with those I never could. And I the killer of those I never would." (Oedipus page 67). Oedipus did not listen to the Gods. His circumstances determined his fate, but could have been broken if he had not killed anyone, researched his parents before leaving Corinth, or not been so anxious to punish himself or find the murderer.

Investigation: Body Temperature Regulation

Investigation: Body temperature regulation Guiding question: To what point does fur determine an arctic foxes wellbeing in the wild and how much protection against extreme temperatures does it really offer. Introduction: In this experiment I will be attempting to justify my findings that I have gathered over the course of a few different experiments. What I have been gathering information over is the suitability of an arctic foxes fur coat. I have gone about finding this out by simulating a model of an arctic foxes fur coat through many trying and stressful conditions. The way I did so was by firstly dividing the experiments into three different steps. The first step entailed me attempting to put my model arctic fox in sub zero temperatures, as it would be in real life. What I did however was to put two models in the fridge. The first was a simple test tube covered with cotton, while the second had a space of cool air between the fur and the test tube simulating the space that would be created when a fox puffs out its fur almost like when we get goose pimples. The second experiment was designed to signal whether it changes anything to the temperature of my two test tubes if there is wind or not. I also did that same experiment of wind with my test tubes both drenched with water, again this would simulate a real life situation such as rain and wind or even snow and wind. Lastly I decided to put my test tubes (or arctic foxes! ) at normal room temperature to determine how much the tests really did influence the temperatures, in this way I could see what exactly was going on in terms of the cooling curve. Hypothesis: I expect the following experiment to give me a rough enough idea of arctic foxes protective measures and to help me better understand the full extent of their heat retaining abilities. I expect that my experiment has a great deal of flaws yet I also believe that there will be enough raw data to accurately determine a positive result. A positive result would be one that accurately gives me an idea of how to answer my guiding question. If I were to be more specific I would say that in my opinion the test tube with the hot air trapped between the cotton and the actual test tube will make no difference over the one with only cotton around it. I base this upon the theory that the air temperature between the test tube and the cotton will quickly loose any of its heat and will become redundant. I can prove this by continuing with the experiments I have designed to determine just that. Lastly I also believe that when I will confront the results of my two experiments, the one with only the fan and the other with the fan and the wet cotton I will find that the later will be much more susceptible to the cold and its temperature will decrease much more, due to the water that will constrict its ability to retain heat. Apparatus: * Two test tubes of equal dimensions * Cotton wool to simulate fur on an arctic fox * Pieces of wood that create a space of air between the tube and the wool * Timer to accurately give me a time span for which to conduct my experiment * Fan to simulate wind * Thermometer to place within test tube which will accurately calculate the temperature of the water held inside it. * Kettle to boil the water before placing it inside the test tube * Selotape to keep the cotton in place Fridge to simulate the sub zero temperatures that arctic foxes must live through Evaluation of apparatus: I think that the apparatus that I used are all extremely good and effective with a few key exceptions. Firstly the cotton is not quite the same material as the fur that an arctic fox uses, meaning that the experiment will not be true to real life. It will only give me a rough idea of the concepts of heat regulation within this particular species of animal, but that will be enough to answer the guid ing question. Another piece of apparatus that does not match exactly my requirements is the fan seeing as it only produces a certain amount of wind and in only one direction meaning that I will have to continually turn my test tube in order to keep the experiment fair and equal. Experiment one: In this experiment I will be placing my test tube’s at room temperature in order to determine before starting the other experiments what the cooling curve would be without it being put through any abnormal conditions. As I can see through the graphs above the temperature decreases very slowly from the initial 70 degree starting temperature. What happens is that test tube one and two slowly start to disconnect form each other, seeing as test tube one retains heat more effectively. I will now see whether the results will be drastically different with my other experiments. I have also noticed that the test tube 1 has a greater heat retaining ability that may well be due to the layer of air held between it and the test tube. To further prove this theory I will have to continue with my other experiments. Experiment two: In this experiment I have put my two test tubes inside the fridge in order to simulate the sub zero air conditions. In my hypothesis I said that I thought there would be no difference between test tube one and two. In the first experiment it was proved otherwise, yet in the following experiment there will be a greater temperature change so the differences in temperature will become more evident as time goes on. As you can see in the following graph there is a much more significant difference between test tube one and test tube two. This shows that so far the space of hot air between the cotton wool and the test tube is beginning to work much more effectively. This is completely against what I initially said in my hypothesis, where I clearly stated I thought It would make no difference. However if you look carefully at this gathering of information you are able to see that the results start to separate from each other much more significantly than the first experiment this shows that the more drastic the temperature the more it helps to have that layer of hot air to protect and keep the ‘arctic fox’ warm. Experiment three: This is the most important experiment, in my opinion to determine to what extent an arctic foxes fur helps keep out the cold. This is because I will be keeping the test tubes at room temperature while placing a fan in front of it to simulate wind and the cold wind that comes with that. It is not as drastic as my previous experiment but it is just as important. I expect to see results that are of a higher temperature than the last experiment, but I also expect the difference between the two test tubes to increase seeing as test tube 2 is much better equipt against this kind of heat and temperature difference.

Authoritarian Parents

Authoritarian Parenting: The Impact on Children. By Matthew J. Miller, Psy. D. Baumrind’s Parenting Styles Parenting Types: 1. Authoritarian 2. Authoritative 3. Permissive 4. Neglectful In the early 1960’s, psychologist Diana Baumrind conducted experiments with parents. These experiments were designed to identify and understand how parents differ in their responses to their children. As a result of the Baumrind study as well as further research, four main styles of parenting were delineated. They are Authoritarian, Authoritative, Permissive, and Neglectful.Each style has its own characteristics as well as effects on children’s development. This article will discuss the impact on children of authoritarian parenting. Authoritarian Parenting For Authoritarian parents, rules are often more important than relationship. Authoritarian parents have many rules and they enforce them. They expect and demand adherence to high standards. Having high standards for the behavior of children is not necessarily a bad thing. However, the way they go about achieving these high standards hurts the relationship between the parent and child.The authoritarian parent often fails to explain the reasoning for the rules. In fact, they do not engage in much conversation with their children regarding the rules. When children ask, â€Å"why? † the response is, â€Å"Because I said so. † Not only does authoritarian parenting impact the current relationship between parent and child, but this type of parenting can have long-term effects on the emotional development of the child even into adulthood. In addition, the impact of this style of parenting can also be felt in the child’s relationship with God.The Current Relationship There is a strong element of fear that pervades an authoritarian household. Much like an authoritarian government, there is compliance with rules, but the compliance is typically not out of love. Children in an authoritarian home c omply out of fear. Fear of punishment and fear of the withholding of affection drives these children to comply. In addition to fear, the child does not feel loved and accepted by their parents. Children are punished for even minor infractions. Often, these punishments do not fit the crime and are overly punitive.Even worse, the punishments often result in relationship consequences which include a withholding of love and affection from the parents to the child. As a result, the child begins to learn that they are loved and accepted for what they do, rather than for who they are. John, a high-school basketball player I met, had this type of relationship with his father. His father would come to all of his games to see him play. While a parent’s presence at a child’s games should be a source of encouragement, for John it was not. If John had a good 2Current Relationship Consequences: 1. Fear 2. Lack of love and acceptance 3. Lost opportunities for guidance game, his fathe r was like a â€Å"Chatty Kathy† doll on the way home. You could not shut him up. On the other hand, if John’s game did not go as well, there was absolute silence. His father would not speak to him. John learned quickly that there were conditions placed on him to received love. He was loved if he performed. He was not love if he did not perform. Children raised by authoritarian parents often are compliant with parental rules.Authoritarian parents point to this compliance as evidence that their style of parenting is working. However, as with many things in life, there is an opportunity cost to decisions we make. Growing up is difficult, especially in this day and age. There are many times that a child will need help and guidance as they grow. When we seek guidance, we tend to seek it from relationships where we feel loved and accepted. Since children of authoritarian homes do not experience love and acceptance from their parents, they will seek counsel from someone outs ide the home, or they may seek no counsel at all.While the authoritarian parent may be a good person who has much wisdom to offer, when it comes to the major issues of life, the children do not seek their counsel. Relationship with God Often our view of God, who Jesus taught us to call Father, is similar to our view of our earthly father. Since our earthly father is visible to us â€Å"†¦We project our and God is not, we project our image of our earthly father onto our image of our earthly heavenly Father. When children grow up with demanding authoritarian parents, they often begin to see God the same way.While father onto our they may be obedient to God, this obedience is out of fear of heavenly Father. † punishment rather than a response to acceptance. Real change in our lives comes when we feel accepted, not when we fear punishment. As a result, children who grow up with authoritarian parents often have a negative view of God. As was stated above regarding their earth ly parents, children who hold an authoritarian view of God will likely not seek to build a deep relationship with Him. We do not seek relationship with those whom we fear. Instead, like Adam and Eve, they will seek to hide from God. Future DevelopmentIn addition to the impact authoritarian parenting has on the current relationship with their parents and their relationship with God, children who grow up in this type of home often experience long-term emotional consequences. These children often have poor social skills, low self-esteem, anger and higher rates of depression and anxiety. In addition, although they may remain compliant, they can develop an overall mistrust of authority. There are many reasons why these issues may develop in children with authoritarian parents. In an authoritarian home, compliance is expected, while independence is discouraged.Because they are taught to follow rules rather than take initiative, they are more capable of following instructions than becoming leaders. They are taught what to think rather than how to think. As a result, these children remain dependent emotionally into adulthood, sometimes even living in the parental home long after what would be considered emotionally healthy. This lack of independence, both emotional and physical, can result in low self-esteem. 3 Children growing up in an authoritarian home, like growing up under an authoritarian regime, experience a loss of control over their own lives.When we come to believe that no matter what we do, we cannot gain actual control Future Consequences: of our own life, eventually a sense of helplessness ensues. This â€Å"learned helplessness† is a major component in the development of 1. Poor social skills depression. This sense of powerlessness does not leave us when we leave the authoritarian parent. Instead, this becomes a deeply 2. Low self-esteem entrenched view of ourselves that can take years to overcome and can impact all future relationships including marital and parenting relationships. 3.Anger Along with a loss of control, children who grow up with 4. Depression authoritarian parents often experience anger at how they are being treated. However, their anger is not typically allowed to be 5. Anxiety expressed. Often the expression of any form of anger in an authoritarian home results in punishment. Where does the anger go? There are typically two ways that anger gets expressed. The first is in either active or passive rebellion against the parent, or, in the future, toward any form of authority. The second way that anger gets expressed is that the child turns the anger inward toward themselves.This internalization of anger also leads to depression. One reason why in the United States there is less violence against the government than in other countries is that our country’s laws encourage and protect freedom of speech. When people feel that their thoughts and feelings have an outlet, they are less prone to resort to viole nce. When people are not free to express themselves, they will tend toward helplessness or rebellion. Finally, children who are raised by authoritarian parents often experience increased anxiety.Because â€Å"wrong† decisions result in harsh punishments, they develop what Freud would describe as an overactive superego. The superego, according to Freud, is the moral branch of personality. It develops to guide us to make right decisions and to avoid punishments. For Christians, the superego includes the Holy Spirit. However, the Holy Spirit is not our only guide to determine the rightness or wrongness of our actions. The superego also includes the internalized values of the important people and structures (like the law) of our lives.As the number of rules increase, so does the superego. Anxiety is both an internal and external manifestation of the struggle to avoid real or perceived punishment. For those with an enlarged superego, the superego acts like the boulder chasing Indi ana Jones chasing us through our lives. In upcoming articles, the three other parenting styles will be discussed along with their impact on children.  © All Rights Reserved (2010). The Center for Christian Counseling & Relationship Development, L. L. C. Pavilions at Greentree, Ste. 303, 12000 Lincoln Dr. W. , Marlton, NJ 08053. (856) 396-0111. 4

Free Essays on Swift And Voltaire

Jonathan Swift’s â€Å"A Modest Proposal† and â€Å"Candide,† by Voltaire are both satires that mock man and society. The messages in these satires are both aimed at the same type of audience, the upper class society. In â€Å"A Modest Proposal,† Swift writes about a possible solution for Ireland’s poverty and over population. His work was aimed towards the English, complaining of their maltreatment. He attacks the English for economical problems of Ireland by proposing an elaborate plan to use the gross amount of children as food. He, as narrator makes this proposal in such a tone a reader with very little education may take him seriously, which was not the intent for the piece. His sarcasm is meant to ridicule the English for their lack of concern and weak solutions. Swift makes references to both the English upper class and the lower class of society. Readers may find him to be condescending. He refers to the poor being made liable to distress because they will have something of value, their children, to be sold for food. This is an attack on the system, the upper class, even though he mocks the moralities of the Irish. He, when proposing these solutions, is illustrating how easy it is for the English to refer to the people as numbers instead of humans. Jonathan Swift makes his proposal in the mind set of any politician. He is ridiculing their system of solution and at the same time is trying to humanize the situation with his sarcasm. This essay was targeted towards individuals that would feel guilt or anger, the upper class English. â€Å"Candide† by Voltaire, is targeted to the upper class as well. In this episodic, philosophical tale, Candide travels the world and encounters many people. Voltaire makes historical references as well as geographical, that mostly (at that time) the upper class educated would understand. Voltaire also makes personal attacks on publishers and others, which only peo... Free Essays on Swift And Voltaire Free Essays on Swift And Voltaire Jonathan Swift’s â€Å"A Modest Proposal† and â€Å"Candide,† by Voltaire are both satires that mock man and society. The messages in these satires are both aimed at the same type of audience, the upper class society. In â€Å"A Modest Proposal,† Swift writes about a possible solution for Ireland’s poverty and over population. His work was aimed towards the English, complaining of their maltreatment. He attacks the English for economical problems of Ireland by proposing an elaborate plan to use the gross amount of children as food. He, as narrator makes this proposal in such a tone a reader with very little education may take him seriously, which was not the intent for the piece. His sarcasm is meant to ridicule the English for their lack of concern and weak solutions. Swift makes references to both the English upper class and the lower class of society. Readers may find him to be condescending. He refers to the poor being made liable to distress because they will have something of value, their children, to be sold for food. This is an attack on the system, the upper class, even though he mocks the moralities of the Irish. He, when proposing these solutions, is illustrating how easy it is for the English to refer to the people as numbers instead of humans. Jonathan Swift makes his proposal in the mind set of any politician. He is ridiculing their system of solution and at the same time is trying to humanize the situation with his sarcasm. This essay was targeted towards individuals that would feel guilt or anger, the upper class English. â€Å"Candide† by Voltaire, is targeted to the upper class as well. In this episodic, philosophical tale, Candide travels the world and encounters many people. Voltaire makes historical references as well as geographical, that mostly (at that time) the upper class educated would understand. Voltaire also makes personal attacks on publishers and others, which only peo...

12 castigos por no pagar child support

12 castigos por no pagar child support Cuando un padre o una madre que no vive habitualmente con su hijo no paga la pensià ³n de alimenticia  Ã¢â‚¬â€œtambià ©n conocida como manutencià ³n o  child support en inglà ©s- puede sufrir consecuencias de diversa naturaleza, incluso de carcter migratorio. En Estados Unidos, esta obligacià ³n afecta a todos los padres o madres que no conviven habitualmente con sus hijos, incluidos los migrantes indocumentados.  ¿Quà © es la pensià ³n alimenticia o child support? La pensià ³n de alimenticia o manutencià ³n, conocida en inglà ©s como child support, es la cantidad de dinero que un padre o una madre que no vive con sus hijos debe pagar al progenitor que sà ­ convive con ellos para su mantenimiento. En el caso de que los padres no està ©n ni hayan estado casados, la paternidad deber probarse o reconocerse  primero.  ¿Cà ³mo se calcula cantidad a pagar por child support? La cantidad que se debe pagar depende de diversas circunstancias, como las necesidades del menor, costo del seguro mà ©dico, los ingresos de cada uno de los padres, la existencia de ms hermanos u otras obligaciones familiares, el tiempo que el menor pasa con cada uno de los padres, etc. Puede haber un acuerdo entre los padres o, a falta del mismo, seguir las reglas de cà ³mputo del estado en el que reside el menor. Cada uno de los 50 estados de los Estados Unidos tiene distintas reglas. Si se desea obtener una idea de la cantidad que podrà ­a corresponder a un nià ±o se puede utilizar una calculadora online (en inglà ©s). Es necesario elegir la del estado que corresponde. Hay que destacar que, como regla general, se tiene en cuenta el salario bruto de los padres, es decir, incluidos los impuestos que le retienen o paga. En el caso de los migrantes indocumentados que por su estatus migratorio puede que no puedan probar cunto ganan la cantidad se estima segà ºn su ingreso potencial, lo que se conoce en inglà ©s como potential income. Esto tambià ©n puede pasar con otros padres sin que importe su estatus migratorio y se dà © la circunstancia de que trabajan a tiempo parcial, ya que se puede considerar que podrà ­an trabajar ms. Por otro lado, dependiendo de los estados, si uno de los padres recibe ayuda del estado podrà ­a considerarse que sus ingresos equivalen a 0. Adems, hay que tener en cuenta que no se tienen en cuenta los gastos mensuales de cada uno de los padres. Segà ºn los à ºltimos datos proporcionados por la oficina del Censo de los Estados Unidos, la cantidad media que se recibe en concepto de child support por nià ±o por mes es de $329. Como regla general la cantidad a pagar se fija en el mismo momento en que se establecen los derechos de visita del progenitor que no vive con el infante o adolescente. Posteriormente puede solicitarse una revisià ³n de la cantidad si hay un cambio en los ingresos por parte de la persona que debe pagar, tanto si se incrementan como si disminuyen.  ¿Cà ³mo se obliga a un padre o madre a pagar por child support? En principio, deberà ­a haber un acuerdo voluntario entre ambos padres. En la actualidad apenas un 10 por ciento de todos los acuerdos de child support se hacen de ese modo.  Si no hay acuerdo voluntario entonces el padre o la madre que convive con el menor puede: contratar a un abogado privadamente para que resuelva el casopresentarse en corte y directamente demandaracudir a la oficina del fiscal del estado en la agencia de Child Support y solicitar ayuda. En los casos en los que el progenitor que vive con el menor recibe beneficios sociales como Medicaid o TANF se puede recibir ayuda legal gratuita para este tipo de casos. Se puede asà ­ intentar garantizar el pago de las mensualidades futuras y tambià ©n el cobro de la cantidad que està © pendiente de pago. 12 castigos por no pagar la pensià ³n de alimentos Pueden variar de estado a estado, pero en general puede significar que el padre o la madre que no paga la pensià ³n de alimentos cuando tiene obligacià ³n de hacerlo puede sufrir una o varias de las siguientes consecuencias que tienen que ser acordadas en corte y mediante orden judicial: Embargo (garnirshment, en inglà ©s) de parte de la nà ³mina  (payroll). En este caso se le entrega mensualmente la cantidad embargada al padre o a la madre que conviven con el menor.Embargo de una parte de lo que cobra por desempleo.Embargo de las cuentas de banco.Embargo de la cantidad de devolucià ³n que se obtiene del gobierno federal o del estado tras rellenar las planillas de los impuestos (tax returns).Multas, que pueden ser fijadas por la agencia estatal que se ocupa de pensià ³n de alimentos o por una corte. Las multas son el origen de deudas finales altas cuando lo que se debà ­a inicialmente por impago del child support era mucho ms bajo.Pena de prisià ³n. Tiene que ser decretada por una corte y generalmente se da en situaciones de desacato a la corte (contempt) o se trata de una persona que ha incumplido en ms de una ocasià ³n. Son muy raras las penas de prisià ³n superiores a seis meses.Expulsià ³n del Ejà ©rcito, en el caso de militares.  Notificacià ³n a los credit  bureau, lo cual puede afectar  negativamente al  crà ©dito. Suspensià ³n de la licencia de manejar.Anulacià ³n del pasaporte estadounidense o no entrega de uno que se solicita  siempre y cuando la deuda por impago sea igual o  o superior a $2,500.  Efectos migratorios para obtencià ³n de beneficiosPena de crcel para los padres que se mudan a otro estado En este à ºltimo caso, el padre o la madre que incumple con su obligacià ³n de pagar el child support se muda de estado con la intencià ³n de que sea ms difà ­cil hacerle cumplir puede ser condenado por un delito federal, en aplicacià ³n de la ley que se conoce como Deadbeat Parents Punishment Act. Esta ley prevà © penas de crcel para los padres que se mudan a otro estado y dejan de pagar por ms de un aà ±o y deben ms de $5,000 o no han pagado por ms de dos aà ±os y el monto supera los $10,000. Si se trata de una primera ofensa, la pena de prisià ³n puede ser acordada hasta un mximo de seis meses. Para los que es su segunda ofensa, la pena de prisià ³n puede alcanzar los dos aà ±os. Adems, se sigue teniendo la obligacià ³n de pagar los atrasos. Consecuencias migratorias si no pagan el child support El no pagar la pensià ³n de alimentos a los hijos puede tener distintos efectos migratorios. Por ejemplo: Los residentes permanentes que desean convertirse en ciudadanos americanos por medio del proceso de naturalizacià ³n pueden ver que su peticià ³n es rechazada. Asimismo, el no pagar la pensià ³n de alimentos puede tener consecuencias graves en todos aquellos casos en los que es necesario acreditar buen carcter y/o la ley concede discrecià ³n para conceder un beneficio migratorio a un oficial o a un juez de inmigracià ³n. Como ejemplo de casos migratorios en esta categorà ­a destacan: El ajuste de estatus  para adquirir la tarjeta de residencia permanente.La cancelacià ³n de la deportacià ³n.Y la salida voluntaria.La obtencià ³n de la green card por el registry.Por à ºltimo, no olvidar que los casos de no pago de la pensià ³n de alimentos puede acabar en casos extremos en un arresto. Por ejemplo, en el caso de  indocumentados, puede significar posiblemente su deportacià ³n. Por otro lado, cobrar child support no se considera welfare ni carga pà ºblica y no afecta a la hora de recibir un beneficio migratorio.  ¿Quà © hacer cuando no se puede pagar child support? Todos los padres y madres tienen la obligacià ³n de contribuir al mantenimiento de sus hijos. Sin embargo, en ocasiones es muy difà ­cil hacer frente a esta obligacià ³n econà ³mica. Por ejemplo, en los casos de despido o de enfermedad. Pero teniendo en cuenta las consecuencias serias del impago nunca se debe dejar de pagar sin ms. Adems de notificar al otro progenitor sobre la incapacidad temporal para pagar es recomendable hacerlo saber tambià ©n a la agencia estatal o local que se ocupa de estos asuntos (en la mitad de este artà ­culo aparece un enlace para busca el que corresponda al estado en el que se debe pagar). Tambià ©n se puede buscar en internet por child support agency y aà ±adiendo el nombre del lugar en el que se reside. Adems, considerar si procede solicitar en corte una modificacià ³n del acuerdo de pago de pensià ³n alimenticia. Mientras se encuentra una solucià ³n, es recomendable hacer un esfuerzo para hacer frente al pago del child support o al menos contribuir parcialmente con lo que se pueda. Pero nunca dejar de pagar sin notificarlo. Casos especiales: infante en Estados Unidos y progenitor otro paà ­s Puede darse el caso en el que un nià ±o en USA no recibe el pago de pap o mam que est en otro paà ­s, pero que el incumplidor sà ­ ingresa a los Estados Unidos. Puede estar hacià ©ndolo como turista o porque tiene una visa de trabajo vlida. En este caso se puede notificar la situacià ³n a la oficina de Aplicacià ³n de Inmigracià ³n y Aduanas (ICE). Y ahà ­Ã‚  pedir que se le revoque la visa y que no pueda entrar a Estados Unidos. Tambià ©n puede darse un caso distinto. Si el menor est en Estados Unidos y el padre o la madre que no paga est en el extranjero, se puede obligarle a pagar en corte. Y es que Estados Unidos tiene un acuerdo con 77 paà ­ses para hacer posible que los nià ±os reciban de sus padres y madres la pensià ³n de alimentos. Casos especiales: infante fuera de Estados Unidos y progenitor en este paà ­s Hay casos en el que los nià ±os estn en el extranjero y su progenitor en Estados Unidos y à ©ste no cumple con la obligacià ³n establecida legalmente de pasarle una pensià ³n de alimentos. En estos casos se puede recurrir a un abogado estadounidense para que haga valer en corte esa obligacià ³n. Adems, si el paà ­s en el que vive el nià ±o tiene acuerdos con los estados de USA en el que vive el padre (o la madre) que no paga pensià ³n alimenticia, se puede solicitar que cumpla con su obligacià ³n con la ayuda de ese gobierno. Por ejemplo, en el caso de Mà ©xico se puede reclamar con bastante à ©xito cuando el nià ±o es mexicano, se encuentra allà ­ y el pap est en uno de los estados con los que hay un acuerdo de este tipo. Incluso en los casos en los que el padre o la madre obligado al pago sea un inmigrante indocumentado. Tambià ©n puede darse un caso distinto. Si el menor est en Estados Unidos y el padre o la madre que no paga est en el extranjero, se puede obligarle a pagar en corte. Y es que Estados Unidos tiene un acuerdo con 77 paà ­ses para hacer posible que los nià ±os reciban de sus padres y madres la pensià ³n de alimentos. Puntos Clave: Pago de Child Support Los padres o las madres que no conviven con sus hijos tienen obligacià ³n de contribuir a su mantenimiento, es lo que en EE.UU. se conoce como child support o pensià ³n de alimentos o manutencià ³n. Esta obligacià ³n tambià ©n afecta a los migrantes indocumentados.La cantidad del pago del child support se fija por acuerdo entre los padres, a falta del mismo cada estado establece unas calculadoras para fijarlo.Todos los estados tienen oficinas pà ºblicas para ayudar a reclamar las pensiones por alimentos.El padre o la madre que no paga puede sufrir castigos monetarios, civiles y migratorios. En casos graves puede incluso recibir pena de prisià ³n. Este es un artà ­culo informativo. No es asesorà ­a legal para ningà ºn caso concreto.

Volunteer Service Evaluation Paper Essay Example | Topics and Well Written Essays - 250 words

Volunteer Service Evaluation Paper - Essay Example It provides a holistic approach to an individual through a wellness approach of enhancing the physical, intellectual, emotional and spiritual growth while promoting creative, social and vocational living. For seniors seeking fulfilling and an active lifestyle they provide the Holiday Touch. According to Greeley place, their staffs understand that everybody is unique and their needs change over time and thus offer personalized care to help the seniors enjoy life. They are committed to improving the lives of seniors. To them providing comfort, care and security to the seniors is fulfilling and they feel it’s a calling and not a job. They organize for the seniors innovative programs and activities as well as travelling which is both fun and promotes personal growth. According to Greeley place all the daily chores are attended by the staff and what seniors do is just to create a cheerful and friendly community. They senior citizen also support other organizations and causes in society such as the American Cancer Society. Through individual participation in volunteering one gets firsthand experience on how to interact with people of special needs such as the elderly. You learn on what to expect in retirement as well as prepare for the same. It more fulfilling to see the elderly appreciated by society through attending to them and volunteering is a way of giving back to

My philosophy of education Essay Example | Topics and Well Written Essays - 500 words

My philosophy of education - Essay Example During an observation at Battery Park City School, I found an example. In a class of first graders, when a girl was moving a bean bag chair by herself, a boy classmate walked up to her and helped her move it. As soon as Liz, who is their teacher, saw it, she said, â€Å"Oh! Look at him. How gentle he is! You are a gentleman.† In this case, the boy is recognized and feels a sense of pride with what he has done. This helps the boy learn that helping others is a good thing. The teacher’s words are helpful not only for the boy, but also for the rest of students in class. Hearing their teacher praise their classmate for lending a helping hand will help them realize that helping others is a good thing. Through a few words of praise, students could learn what is right and it helps form their personality. In this context, praise is an effective learning method and teaching method. Alice S. Honig discussed the positive solutions to address typical difficulties. One of the positive solutions mentioned was praise. According to Honig, â€Å"Children who are tense may show signs of pressure and frustration, like biting their nails or stuttering. Harsh response will only make children more tense. Instead, find situations in which these children shine, and bolster their self-confidence with Praise. For example, ‘Marques, you did a beautiful job of hanging up your coat!’ †. For Gartrell as cited in Meece and Soderman, appropriate praise is one that is â€Å"sincere, constructive, and encouraging†. Children tend to flourish when adults take notice and recognize a child’s effort and accomplishments. Recognizing positive changes in a child’s behavior and abilities also helps. Pro-social behavior is developed when the positive results of a child’s behavior on another is pointed out. In promoting a positive verbal environment, praise is used as a means to encourage a child’s intrinsic motivation. As the articles

The Fraud Act 2006 in the UK Essay Example | Topics and Well Written Essays - 2500 words

The Fraud Act 2006 in the UK - Essay Example In the UK, the Fraud Act 2006 came into force during January 2007, and it substituted the deception crimes included in the Theft Acts 1968-1996 with a more general offence of fraud, which can be done in the following ways namely fraud by failing to divulge information, fraud by dishonesty or deceitful representation and fraud by misuse of position and authority. The offence under the Frauds Act 2006 is punishable if charges are proved with a fine or with an imprisonment of ten years or with both. It is punishable by a fine not in excess of the statutory maximum or sentence for a period of not exceeding six months or with both. Under tort of deceit, a person may claim damages if the fraud committed is resulted in injury to the affected party. On the ground of fraudulent misrepresentation, a contract may be voidable if it has been obtained by fraud. (Law & Martin 2009:240). Courts in England have not yet prepared to prescribe exactly what can be regarded as fraud. It is to be noted tha t the Serious Fraud Office (SFO) which was formed on the recommendation of the Roskill Report in 1984 had not taken into account the offence of fraud but recognised on an evocative manner, many fraud crimes which UK’s Home Office employs even today. (Ramage 2005:4). As on date, in UK, there exists no statutory offence of fraud and the Home Office of UK has set out some kind’s criminal activities that can be regarded as offences of fraud in â€Å"Counting Rules for Recording Crime.† According to a publication made by the Home Office in April 2003, describing the following as offences of â€Å"forgery and fraud.† Frauds by an individual include common law offence of conspiracy to defraud, under the Proceeds of Crime Act 2002, fraudulent misappropriation of funds, obtaining a money transfer through credit card or cheque fraud under section 12 of the Theft Act 1987. (Ramage 2005:104).In Cronos Containers NV v Palatin, the defendants were Klamath Enterprises S A and Mr. and Mrs. Palatin. The shares of Klamath were owned by Mr. Palatin. In 1994, Mr.Palatin deceived the plaintiff by making five different payments from one of the Plaintiff’s clients, and the same was credited into Barclays bank account owned by Paladins. Then, such defrauded sums were employed by the defendants to renovate a property held by Klamath. (Ramage 2005:4). Conspiracy to Defraud Under Common Law It falls under consent to divest deceitfully somebody’s right or to abuse somebody’s property privilege. In Scott v Metropolitan Police Commissioner2, S agreed with workers of a cinema theatre to take copies of cinema screened in that theatre without the approval of the owner with an objective of commercial distribution held to be a conspiracy to defraud under common law. In Wai Yu-Tsang v R3, A acted in concert with bank employees to camouflage in the bank accounts the fact about dishonoring of cheques which the bank had already purchased so as to prev ent a bankruptcy by the bank, and A was held for the guilty of conspiracy to fraud. According to Lord Goff, conspiracy to fraud does not restrict to the notion of divesting somebody with something of value, but it also falls under deceit and fraud and if somebody may be discriminated in any way by the deceit or fraud. (Fionda & Bryant2000:154).  

Human Capital Development and Productivity Relationship

Human Capital Development and Productivity Relationship ABSTRACT This study examines the relationship between human capital development and productivity. Productivity is the dependent variable while human capital development indicators and gross capital formation are the explanatory variables. Recurrent and capital expenditures on health and education are used as human development indicators. The scope of the study is from1977 to 2003. The Ordinary Least Square method was used to determine this relationship. It has revealed a negative relationship between gross capital formation and productivity. However, human capital development was found to affect productivity significantly. It is therefore advocated to adopt policies that will improve the expenditure on health and education. CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The issue of human capital development is of great importance in any economy particularly developing economy such as Nigeria. The twentieth century has become the human capital century. People and skills matter, the wealth of a nation is embodied in its people, that is, the working class. Although advanced countries but the poor countries are becoming more aware of the importance of people the advantage countries but the poor countries are becoming more aware of the importance of people the advancement of the economy. This study is therefore of great significance to the world at large. Labor is one of the four factors of production. The others are capital, land and entrepreneur. In the nineteenth century, people were of little importance to industrial giants such as Britain, Germany, France and the United States. However, in the early 1900 attention began to shift to education of people at secondary and higher levels and provision of welfare services such as health services. The Nigerian economy has however failed to move at the pace of other countries in the world. Although effort have been made in the area of human development in the part, there has not been a substantial improvement in the human capital development in the past, there has not been a substantial improvement in the human capital indicators such as education and health. Productivity can be perceived as the output per unit or the efficiency with which resources are utilized. Therefore productivity with respect to human capital development refers to the development of human capital which will lead to efficiency with which resources are utilized and this will increase output. The trend of productivity in Nigeria is one that fluctuates. Productivity in Nigeria compared to that of other countries is very low. Sustained productivity depends on the economys human capital. Human capital can be defined as the skills, knowledge, competencies, and attributes that reside in a worker. Human capital development involves the improvement of a nations human capital through better healthcare, nutrition, accommodation, working environment, education and training. The economies of nations and the world at large is dynamic in nature, it follows that the human resources of these nations should be constantly improved on. That is, training of manpower should be a continuous process in order to meet up with the demands of the world market. Here, the emphasis is placed on education and health. These can also be referred to as indicators of human capital development on productivity. ducation in Nigeria has improved over the years with increased interest in the tertiary institution. However, a closer attention has to be paid to the needs of the educational sector because the quality and level of educational attainment on the productivity of a country. Certain measures have been put in place to improve the quality of education in Nigeria by the Federal government and other agencies. However, these efforts have not brought about the much desired change in the standard of the education in Nigeria. Failure in the educational sector has been accounted for due to some problems. They include; inadequate allocation by the government to education, lack of dedicated teachers, poor political environment, poor implementation of policies and several others. Private organizations have sprung up to resuscitate the educational sector. This is evident through the increase in private schools in the primary, secondary and even the tertiary level. Nigerians have lost confidence in t he ability of the government to provide good education and this has resulted in high patronage of these private institutions by Nigerians who can afford it. This leaves the bulk of Nigerians that cannot afford private education at the mercy of the government funded schools. The government has failed to realize the gravity of what an underdeveloped human capital can do to an economy. The need for more attention to be centered on this aspect is very necessary. The health sector is also faced with similar problems as that of education. Health is a very important factor in human capital development. The state of health of labor affects the level of performance thereby affecting the level of productivity. Government has tried in improving health services by reducing the number of population per doctor, providing more health facilities, hospitals and other required health personnel. However, there is still room for improvement in this aspect. The rural areas of the country have been neglected while the urban areas have been focused on, there is still need to reduce the population per doctor, provide preventive healthcare and take drastic measures to reduce the infant maternal mortality. These discrepancies in education and health of the country have a very significant effect on productivity and hence economic growth. 1.2 STATEMENT OF THE PROBLEM The Nigerian economy has solved several problems facing it. There has been prolonged economic recession followed by the collapse of the world oil market from the early 1980 and fall in the foreign exchange earnings of the country. Other problems include overdependence on imports for consumption and capital goods, lack of adequate social and economic infrastructure and neglect of the agricultural sector. Nigeria is rated to be one of the poorest countries in the world. Putting the countrys economy back on track requires a lot of activities that will advance the economy such as rebuilding the economy and making goods and services available and affordable for every one. This is where the issue of productivity comes in since productivity refers to the level of output of a country. The problem therefore deals with increase in productivity through human capital development so as to increase growth. This study raises questions on how the indicators of human capital development affect productivity. 1.3 SCOPE OF THE STUDY This study covers all sectors of the economy and all countries in the world as the issue of human capital and productivity affects everyone. However, the study is based on the Nigerian economy and all considerations and analysis refers to the Nigerian economy. This study covers the period from 1977 to 2004. 1.4 OBJECTIVES OF THE STUDY The major objective of the study is to determine the relationship between human capital development and productivity in the Nigerian economy through the use of two human capital development indicators; education and health. The specific objectives include: To ascertain the relationship between human capital development and productivity To examine the impact of health on the productivity in the Nigerian economy. To examine the impact of education on productivity in the Nigerian economy. To determine the indicators of human capital development. 1.5 JUSTIFICATION OF THE STUDY This study is relevant to every sector of the economy. This is because every sector of the economy has labor as its most important factor of production. It is therefore of great importance to the industrial, agricultural, mining sector and so on. It gives them more incentive to invest more in their human resources. It is also of great importance to the government who have in their hands the authority and responsibility over important indicators of human capital development. This study will encourage government to increase expenditure on education, health and other areas of the economy that affect productivity. It provides a basis for which investment in health and education will be measured against productivity. This study is therefore of great importance to all sectors of the economy, the government and other stakeholders such as consumers, shareholders and so on. 1.6 RESEARCH QUESTIONS The following questions arise in the course of this study and will subsequently be answered. They include the following; What is the relationship between human capital development and productivity? What is the effect of health on productivity? What is the impact of education on productivity? What are the other factors that lead to the development of human capital? 1.7 HYPOTHESIS OF THE STUDY The following hypotheses hold for this study; H0 : Education has the lowest impact on productivity H1: Education has the greatest impact on productivity. H0: Health has no significant impact on productivity. H1: Health has a significant impact on productivity. H0: There is no significant relationship between human capital development and productivity. H1: There is a significant relationship between human capital development and productivity. 1.8 RESEARCH METHODOLOGY The issues to be raised in this research work are both empirical and theoretical. The Ordinary least square method of analyzing data will be used and the results will be interpreted. 1.9 DATA SOURCES Data was obtained from the Central Bank Statistical Bulletin, 2004. 1.1.0 OUTLINE OF CHAPTERS In order to achieve the stated objectives, the project work has been subdivided into five chapters. Chapter one is the introduction which consists of the background, statement of the problem, objectives, justification, hypotheses, scope, research methodology, organization and limitation of the study. Chapter two is devoted to past literature written on the subject matter. Chapter three is the methodological framework and the model specification. Chapter four is presentation, interpretation and empirical analysis of regression results. Chapter five boarders on the summary, recommendation and conclusion of the study. CHAPTER TWO LITERATURE REVIEW 2.1 CONCEPT OF HUMAN CAPITAL DEVELOPMENT Human resources make up the standard or the basis for the wealth of a country. Human resources are the summation of efforts, skills, knowledge and experience available in a country. It is the managerial, scientific, engineering, technical, craftsmen and other skills which are employed in creating, designing, developing organizations, managing and operating productive and service enterprises and economic institutions (Yesufu, 1962). They are a nations most valuable resources. They constitute a nations human capital. Human capital refers to the skills, education, health, and training of individuals. It is capital because these skills or education are an integral part of us that is long-lasting, in the way a machine, plant, or factory lasts ( Gary Becker, 1992). Before the nineteenth century, investment in human capital was not important in any country. Expenditures on schooling, health and other forms of investment were quite small. This began to change during that century with the application of science to the development of new goods and more efficient methods of production, first in Britain, and then gradually spreading to other countries. During this century, education, skills, and other knowledge have become crucial determinants of a persons and a nations productivity. One can even call the twentieth century the Age of Human Capital in the sense that the primary determinant of a countrys standard of living is how well it succeeds in developing and utilizing the skills, knowledge, health, and habits of its population. It has been estimated that human capital-education, on-the-job and other training, and health-comprises about 80 percent of the capital or wealth in the United States and other advanced countries. (Gary Becker 1992). Therefore a country without effective human capital development skills will be lagging behind in the issue of development. The concept of human capital refers to the abilities and skills of human resources of a country, while human capital formation refers to the process of acquiring and increasing the number of persons who have the skills, education and experience that are critical for economic growth and development of a country (Okojie 1995:44). Human capital is so important that in the Khartoum Declaration of 1988, it was asserted that: .the human dimension is the sine qua non of economic recovery .no SAP or economic recovery programme should be formulated or can be implemented without having at its heart detailed social and human priorities. There can be no real structural adjustment or economic recovery in the absence of the human imperative (Adedeji 1990:390). In other words, there cannot be meaningful economic growth without adequate human resources. Human resources development involves the improvement and the transformation of a nations human resources by better medicare, nutrition, accommodation, environment, education and training (Yesufu, 1962) Human capital development can be described as a deliberate effort by Government and people to provide the right number of workers, at the right areas of need and at the right time in an economy that is incentives that will increase the morale of the workers. For example, in Japan, training of human resources is seen as very important in development of the economy. They also provide incentives that boost the morale of the workers. The government is expected to provide policies or programmes that provide the labour needs and a requirement in all sectors of the economy. The existence of a large population does not translate to a productive resource. Human resources can only be productive due to effort made by the government and the private organisations in developing human resources. Human beings become productive resource or human capital only when they are able and in a position to contribute meaningfully to productive economic activities. They have to be trained to become agents of p roduction and economic activities. Without training they remain passive, potential and inactive as other factors of production. Human beings can be fashioned to lead useful and happy lives and contribute to societal development by the development of their characters and potential abilities through education, training, health services and so on conducted over a long period of years. The enterprise of human capital development therefore is the impartibility of knowledge and skills to human beings through education and training for productive as well as consumptive ends (U.O Anyanwu). Education is only one form of investment in human beings. Others include expenditure on medical care, migration to more prosperous regions, information about job opportunities and career prospects and choice of jobs with higher training contents. Human capital development is a form of investment with expected economic as well as social returns not only to the individual investor and his family but also the society at large. The economy, with time, begins to experience growth, while the beneficiary acquires the opportunity to contribute to and secure qualitative live by being able to make the right choices and command higher earnings profile. Consequently human capital development has been seen as the ultimate concern of all types of development-economic, social, cultural, political, etc. Capacity building or human capital development responds to a wide-range of questions such as what people are able to be or do, the issues longevity, health and mind development, their inalienable fundamental human rights to freedom of choice, speech, association, political, economic, social and other needs and ability to escape from avoidable diseases, malnourishment and illiteracy (HDR Nigeria 1996). Human Development Report (1996) maintains that sustainability of human capacity building is the essential component of the ethics of universalism of life, stressing that it is a matter of sharing development opportunities between all classes and groups of people between the rich and the poor, between the present and future generations. It is of the view that sustainability demands what it calls intra-generational and inter-generational equity (HRD Nigeria 1996). Capacity building or HRD has other associated benefits and returns. (Umo 1995) has itemized other crucial contributions of human capital to development in general to include; the generalized capacity to absorb economic shocks as well as cope with the complexities of modern development; creating a corps of well informed citizenry with positive attitude to national development, providing persons for technology base needed for industrialization; 2.2 CONCEPT OF PRODUCTIVITY The most widely accepted definition of productivity is that it is the ratio of inputs to output. This definition enjoys general acceptability because of two related considerations. One, the definition what productivity is thought of to be in the context of an enterprise, an industry or an economy as a whole. Two, regardless of the type of production, economic or political system, this definition of productivity remains the same as long as the basic concept is the relationship between the quantity and quality of goods and services produced and the quality of resources used to produce them. Eatwell and Newman (1991) defined productivity as a ratio of some measure of output to some index of input use. Put differently, productivity is nothing more than the arithmetic ratio between the amount produced and the amount of any resources used to produce them. This conception of productivity goes to imply that it can indeed be perceived as the output per unit input or the efficiency with which resources are used. Olaoye (1985) observed that productivity as a concept can assume two dimensions: namely total factor productivity (TFP) and partial productivity. The former relates to productivity that is defined as the relationship between outputs Growth in productivity provides a significant basis for adequate supply of goods and services thereby improving the welfare of the people and enhancing social progress (Mike Obadan). Demburg (1985) said without productivity there would be no growth in per capita income and inflation control would be more difficult. A country with high productivity is often known for high capacity utilization (optimal use of resources), high standard of living, low rate of unemployment and social progress. Productivity measures the relationship between quantitative and qualitative value of goods and services produced and the quantity of resources needed to produce them (that is, factor inputs such as labour, capital, technology) (Sumbeye, 1992; Okojie 1995; Roberts and Tybout 1997). Mali (1978) defines it as the measure of how resources are brought together in organisations and utilized for accomplishing a set of results. It is reaching the highest level of performance with the least use of resources. In this definition, the issue of efficiency is being referred to. Increased productivity will involve the use of less resources and an outcome of more output. Roberts and Tybout (1997) and Tybout (1992), assuming a neoclassical production function at the sectoral or industry , define total factor output to be a concave of inputs and time (a proxy for technological innovation). To them, the elasticity of output with respect to time is the total factor productivity. TFP = Total output / Weighted average of all inputs..1 The factor inputs include labour, capital, raw material and purchase of spare parts and so on. In a particular sense, these factors are reduced to the weighted average of labour and capital (Okojie, 1995; Roberts and Tybout, 1997). Partial productivity (PP) is defined as: PP = Total output / partial input.2 According to T. M.Yesufu, labour productivity refers to the output result of workers organised within a given economic unit or enterprise. Yesufu outlined the three basic deficiencies associated with the use of labour productivity. They include the following; the term labour as generally conceived , is ambiguous and far from inclusive. It excludes some very important categories of human inputs, especially management, marketing, accounting and the white collar workers generally, who are not directly on the production line. even the acknowledged workforce generally used for labour productivity measurement(the blue coated production line- skilled and unskilled labour) as far from homogenous, which complicates the allocation of output between the constituent classes; for example , adult and child labour; male-female, artisan, technician, etc. the output of an enterprise itself usually varies in terms of type , material inputs, labour mixes, sizes of unit products, etc., that are not easily dis-aggregated. Due to these shortcomings of the use of labour productivity some economists prefer to use total factor productivity as it is said to be superior and more acceptable for purposes of determining enterprise or macroeconomic performance. Partial productivity is particularly used for analytical purposes, to test the relative efficiency of, or returns to, various forms of inputs, and to check, for example, the effect on marginal productivity an increase or reduction of a particular type of input. 2.2.1 The Traditional Concept of Productivity The traditional concept of productivity focuses on the efficiency in the production or delivery process. In this wise, the focus is merely on the ratio of output to inputs. Thus, productivity is measured as the amount of output per unit of inputs. Since the emphasis was more generally on labour productivity, the measure was often the amount of output per worker working for one hour. This traditional approach implies a simple Mathematical relationship so that productivity improvement means producing more with less or the same amount of inputs; or sustaining the same level of output with less input. This traditional view derives from the economic logic of cost minimisation. One implication of this approach is that traditional productivity improvement schemes tend to focus on how to reduce inputs employed and improve the skills of the workers they retain. Workers lay-offs, while seeking to maintain the same levels of output with the reduced work force became popular at enterprise levels. The present policy of the Federal Government to reduce the work force in the public service is as a result of this traditional logic. 2.2.2 New Emerging Concept of Productivity Globalisation and the new forms of competition which it has brought about, however, today require us to focus on a much broader concept of productivity. Likewise, we need to appreciate more fully the changing dynamics of the factors involved in the process of productivity improvement. As a recent analysis points out, increased competitiveness, the increased complexity of markets, the globalisation of manufacturing and the increased concern about social and ecological issues make productivity improvement more important at the same time that the need for a broader meaning of productivity is required. Thus, the focus today is increasingly on total factor productivity and the process of its improvement involves improving the overall business environment. This involves the promotion of better labour-management relations, continuous improvement in products and processes, enhancement of the quality of work life and continuous development of the human resource. In this new conception, the emphasis of the direction to productivity improvement is on increased added value creation, rather than the minimisation of labour inputs. Emphasis has also been brought to bear on the distribution of the benefits of productivity improvement among all stakeholders (workers, employers, consumers). Productivity is not seen any more just as the physical increase in output, but also as the improvement in the quality and value or acceptability of the product or service. Thus, productivity is not just an efficiency concept any more, but equally an effectiveness concept. In an increasingly globalized world, productivity improvement does not just involve the efficient production of products or services, but of products and services that are needed and demanded and bought by very discerning customers. Customer orientation is increasingly in the fore and quality is now an important index of performance. Productivity is becoming identical with quality. 2.3 DETERMINANTS OF PRODUCTIVITY A number of factors affect productivity. Major among these are the complementing factors of production as well as technology/innovation, institutional backup, worker motivation, the quality of labour, environment, etc( U.O. Anyanwu). To discover the effect of each of the cooperating factors on productivity, we have to go into a theoretical world where we can hold other things constant while varying each of these factors one after the other. Here, we are still relying on the theory of diminishing marginal productivity which states that if increasing amounts of a variable factor, say labour, is applied to a fixed amount of other factors (e.g. land, capital, materials etc.), given the level of technology then beyond a certain number the extra or marginal product of the variable factor begins to fall down or diminish (Todaro 1985) However, in a real world all the factors impact productivity simultaneously. (a) Land, A Factor of Labour Productivity Growth Land can affect productivity both quantitatively and qualitatively. If land is identified as the limiting factor of labour productivity more arable land can be brought under cultivation to relax the land constraint. In this regard a number of forest reserves have, for this purpose, to be deforested. The quality of land can be improved through the application of manure and fertilizer, which also increases the yield per hectare. Other methods of farming that make for more yields per hectare of land such as improved seed and grain varieties have been adopted by modern farmers. New land policies that alter tenure ship and ownership are devices for relaxing land constraints and improving productivity. (b) Capital Accumulation and Labour Productivity. If identified low labour productivity is attributable to lack of capital, capital can be raised through the mobilization of domestic and foreign investment. Acquisition of new factories, equipment, and machinery will lead to increases in productivity and output per capita of the nation. The Nigerian Governments are committed to the attraction of foreign investments to, among others; improve the capital base of the country. However, while the efforts are being made to cover the need for further capital, installed capital such as the Liquefied Natural Gas Project, Petrochemical plants, Refineries and Iron and Steel factories, among others need revitalization if our productivity is to increase. Investment in social and economic infrastructure gives a significant effect to productivity such as roads, electricity, water, sanitation, communication for the facilitation of economic activities. Road networks are needed to bring the additional product to areas of need, while electricity, water, communication, all play very dominant roles in bringing about the additional product and service arising from the new investment. Dams, irrigation facilities, bridges and road extensions to interior areas all raise product per hectares of cultivated land. Use of chemicals, fertilizers, pesticides, etc. is part of the capital needed enhanced productivity because by raising value of the farm land, productivity is also being improved. (c)Technology/Innovation and Productivity Most economists regard technology/innovation as the most important source of growth. Technology is being seen as a new and improved ways of achieving or performing traditional tasks. Technology can be neutral, labour or capital intensive. Technology is said to be labour and capital neutral when higher output levels are achievable using the same quantity and combinations of factor inputs in a production process. Simple innovations such as re-distribution of labour can result in higher output levels, too. On the other hand, technology may be capital intensive or labour intensive if higher levels of output are possible, with more capital or more labour. Use of simple implements such as those of cottage and small scale industries are said to be labour intensive while those such as electronic computers, automated textile looms, mechanical ploughs, tractors display capital intensity (Todaro 1985). In industrialized countries where unit cost of labour is very high and expensive technology choice favors one that is capital intensive or labour saving, while in developing countries such as Nigeria where there is abundance of labour and scarcity of capital, choice of technology gravitates towards those that are labour intensive, and capital saving. There is the fourth aspect of technology called labour or capital augmentation technology. The quality or skill of labour can be augmented by the use of, for example, videotapes, televisions and other electronic communication devices while capital augmentation is said to occur when productivity can be enhanced by the use of existing capital goods for instance iron types etc can replace wooden hoes. Today hybrid products such as cassava, rice, etc that give higher yield per hectare are being developed through technological augmentation. (d) Labour Force Growth and Labour Productivity. Labour Force growth an important part of the population growth stimulates economic growth and productivity growth particularly when growth has not attained its optimum level. A large labour force, all things being equal, means a large population and the latter is potentially a large domestic market, and if well endowed, empowered and developed, a great international market, too. However, much depends obviously on the capacity of the economic system to productively employ the additional workers arising from the population/labour force growth. Again this will equally depend on the rate and kinds of capital accumulation and the availability of related factors such as managerial and administrative skills and competence the level of commitment of the political administration. 2.4 IMPACT OF HUMAN CAPITAL DEVELOPMENT ON LABOUR PRODUCTIVTY Human Capital Development enhances labour productivity and the productive capacity of the economy. Employers regard the qualification arising from capacity building, as a reliable indication of personal ability, achievement drive reasoning for instance that, a graduate must make a better salesman than a man who had never met the Human Capital Development and Productivity Relationship Human Capital Development and Productivity Relationship ABSTRACT This study examines the relationship between human capital development and productivity. Productivity is the dependent variable while human capital development indicators and gross capital formation are the explanatory variables. Recurrent and capital expenditures on health and education are used as human development indicators. The scope of the study is from1977 to 2003. The Ordinary Least Square method was used to determine this relationship. It has revealed a negative relationship between gross capital formation and productivity. However, human capital development was found to affect productivity significantly. It is therefore advocated to adopt policies that will improve the expenditure on health and education. CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The issue of human capital development is of great importance in any economy particularly developing economy such as Nigeria. The twentieth century has become the human capital century. People and skills matter, the wealth of a nation is embodied in its people, that is, the working class. Although advanced countries but the poor countries are becoming more aware of the importance of people the advantage countries but the poor countries are becoming more aware of the importance of people the advancement of the economy. This study is therefore of great significance to the world at large. Labor is one of the four factors of production. The others are capital, land and entrepreneur. In the nineteenth century, people were of little importance to industrial giants such as Britain, Germany, France and the United States. However, in the early 1900 attention began to shift to education of people at secondary and higher levels and provision of welfare services such as health services. The Nigerian economy has however failed to move at the pace of other countries in the world. Although effort have been made in the area of human development in the part, there has not been a substantial improvement in the human capital development in the past, there has not been a substantial improvement in the human capital indicators such as education and health. Productivity can be perceived as the output per unit or the efficiency with which resources are utilized. Therefore productivity with respect to human capital development refers to the development of human capital which will lead to efficiency with which resources are utilized and this will increase output. The trend of productivity in Nigeria is one that fluctuates. Productivity in Nigeria compared to that of other countries is very low. Sustained productivity depends on the economys human capital. Human capital can be defined as the skills, knowledge, competencies, and attributes that reside in a worker. Human capital development involves the improvement of a nations human capital through better healthcare, nutrition, accommodation, working environment, education and training. The economies of nations and the world at large is dynamic in nature, it follows that the human resources of these nations should be constantly improved on. That is, training of manpower should be a continuous process in order to meet up with the demands of the world market. Here, the emphasis is placed on education and health. These can also be referred to as indicators of human capital development on productivity. ducation in Nigeria has improved over the years with increased interest in the tertiary institution. However, a closer attention has to be paid to the needs of the educational sector because the quality and level of educational attainment on the productivity of a country. Certain measures have been put in place to improve the quality of education in Nigeria by the Federal government and other agencies. However, these efforts have not brought about the much desired change in the standard of the education in Nigeria. Failure in the educational sector has been accounted for due to some problems. They include; inadequate allocation by the government to education, lack of dedicated teachers, poor political environment, poor implementation of policies and several others. Private organizations have sprung up to resuscitate the educational sector. This is evident through the increase in private schools in the primary, secondary and even the tertiary level. Nigerians have lost confidence in t he ability of the government to provide good education and this has resulted in high patronage of these private institutions by Nigerians who can afford it. This leaves the bulk of Nigerians that cannot afford private education at the mercy of the government funded schools. The government has failed to realize the gravity of what an underdeveloped human capital can do to an economy. The need for more attention to be centered on this aspect is very necessary. The health sector is also faced with similar problems as that of education. Health is a very important factor in human capital development. The state of health of labor affects the level of performance thereby affecting the level of productivity. Government has tried in improving health services by reducing the number of population per doctor, providing more health facilities, hospitals and other required health personnel. However, there is still room for improvement in this aspect. The rural areas of the country have been neglected while the urban areas have been focused on, there is still need to reduce the population per doctor, provide preventive healthcare and take drastic measures to reduce the infant maternal mortality. These discrepancies in education and health of the country have a very significant effect on productivity and hence economic growth. 1.2 STATEMENT OF THE PROBLEM The Nigerian economy has solved several problems facing it. There has been prolonged economic recession followed by the collapse of the world oil market from the early 1980 and fall in the foreign exchange earnings of the country. Other problems include overdependence on imports for consumption and capital goods, lack of adequate social and economic infrastructure and neglect of the agricultural sector. Nigeria is rated to be one of the poorest countries in the world. Putting the countrys economy back on track requires a lot of activities that will advance the economy such as rebuilding the economy and making goods and services available and affordable for every one. This is where the issue of productivity comes in since productivity refers to the level of output of a country. The problem therefore deals with increase in productivity through human capital development so as to increase growth. This study raises questions on how the indicators of human capital development affect productivity. 1.3 SCOPE OF THE STUDY This study covers all sectors of the economy and all countries in the world as the issue of human capital and productivity affects everyone. However, the study is based on the Nigerian economy and all considerations and analysis refers to the Nigerian economy. This study covers the period from 1977 to 2004. 1.4 OBJECTIVES OF THE STUDY The major objective of the study is to determine the relationship between human capital development and productivity in the Nigerian economy through the use of two human capital development indicators; education and health. The specific objectives include: To ascertain the relationship between human capital development and productivity To examine the impact of health on the productivity in the Nigerian economy. To examine the impact of education on productivity in the Nigerian economy. To determine the indicators of human capital development. 1.5 JUSTIFICATION OF THE STUDY This study is relevant to every sector of the economy. This is because every sector of the economy has labor as its most important factor of production. It is therefore of great importance to the industrial, agricultural, mining sector and so on. It gives them more incentive to invest more in their human resources. It is also of great importance to the government who have in their hands the authority and responsibility over important indicators of human capital development. This study will encourage government to increase expenditure on education, health and other areas of the economy that affect productivity. It provides a basis for which investment in health and education will be measured against productivity. This study is therefore of great importance to all sectors of the economy, the government and other stakeholders such as consumers, shareholders and so on. 1.6 RESEARCH QUESTIONS The following questions arise in the course of this study and will subsequently be answered. They include the following; What is the relationship between human capital development and productivity? What is the effect of health on productivity? What is the impact of education on productivity? What are the other factors that lead to the development of human capital? 1.7 HYPOTHESIS OF THE STUDY The following hypotheses hold for this study; H0 : Education has the lowest impact on productivity H1: Education has the greatest impact on productivity. H0: Health has no significant impact on productivity. H1: Health has a significant impact on productivity. H0: There is no significant relationship between human capital development and productivity. H1: There is a significant relationship between human capital development and productivity. 1.8 RESEARCH METHODOLOGY The issues to be raised in this research work are both empirical and theoretical. The Ordinary least square method of analyzing data will be used and the results will be interpreted. 1.9 DATA SOURCES Data was obtained from the Central Bank Statistical Bulletin, 2004. 1.1.0 OUTLINE OF CHAPTERS In order to achieve the stated objectives, the project work has been subdivided into five chapters. Chapter one is the introduction which consists of the background, statement of the problem, objectives, justification, hypotheses, scope, research methodology, organization and limitation of the study. Chapter two is devoted to past literature written on the subject matter. Chapter three is the methodological framework and the model specification. Chapter four is presentation, interpretation and empirical analysis of regression results. Chapter five boarders on the summary, recommendation and conclusion of the study. CHAPTER TWO LITERATURE REVIEW 2.1 CONCEPT OF HUMAN CAPITAL DEVELOPMENT Human resources make up the standard or the basis for the wealth of a country. Human resources are the summation of efforts, skills, knowledge and experience available in a country. It is the managerial, scientific, engineering, technical, craftsmen and other skills which are employed in creating, designing, developing organizations, managing and operating productive and service enterprises and economic institutions (Yesufu, 1962). They are a nations most valuable resources. They constitute a nations human capital. Human capital refers to the skills, education, health, and training of individuals. It is capital because these skills or education are an integral part of us that is long-lasting, in the way a machine, plant, or factory lasts ( Gary Becker, 1992). Before the nineteenth century, investment in human capital was not important in any country. Expenditures on schooling, health and other forms of investment were quite small. This began to change during that century with the application of science to the development of new goods and more efficient methods of production, first in Britain, and then gradually spreading to other countries. During this century, education, skills, and other knowledge have become crucial determinants of a persons and a nations productivity. One can even call the twentieth century the Age of Human Capital in the sense that the primary determinant of a countrys standard of living is how well it succeeds in developing and utilizing the skills, knowledge, health, and habits of its population. It has been estimated that human capital-education, on-the-job and other training, and health-comprises about 80 percent of the capital or wealth in the United States and other advanced countries. (Gary Becker 1992). Therefore a country without effective human capital development skills will be lagging behind in the issue of development. The concept of human capital refers to the abilities and skills of human resources of a country, while human capital formation refers to the process of acquiring and increasing the number of persons who have the skills, education and experience that are critical for economic growth and development of a country (Okojie 1995:44). Human capital is so important that in the Khartoum Declaration of 1988, it was asserted that: .the human dimension is the sine qua non of economic recovery .no SAP or economic recovery programme should be formulated or can be implemented without having at its heart detailed social and human priorities. There can be no real structural adjustment or economic recovery in the absence of the human imperative (Adedeji 1990:390). In other words, there cannot be meaningful economic growth without adequate human resources. Human resources development involves the improvement and the transformation of a nations human resources by better medicare, nutrition, accommodation, environment, education and training (Yesufu, 1962) Human capital development can be described as a deliberate effort by Government and people to provide the right number of workers, at the right areas of need and at the right time in an economy that is incentives that will increase the morale of the workers. For example, in Japan, training of human resources is seen as very important in development of the economy. They also provide incentives that boost the morale of the workers. The government is expected to provide policies or programmes that provide the labour needs and a requirement in all sectors of the economy. The existence of a large population does not translate to a productive resource. Human resources can only be productive due to effort made by the government and the private organisations in developing human resources. Human beings become productive resource or human capital only when they are able and in a position to contribute meaningfully to productive economic activities. They have to be trained to become agents of p roduction and economic activities. Without training they remain passive, potential and inactive as other factors of production. Human beings can be fashioned to lead useful and happy lives and contribute to societal development by the development of their characters and potential abilities through education, training, health services and so on conducted over a long period of years. The enterprise of human capital development therefore is the impartibility of knowledge and skills to human beings through education and training for productive as well as consumptive ends (U.O Anyanwu). Education is only one form of investment in human beings. Others include expenditure on medical care, migration to more prosperous regions, information about job opportunities and career prospects and choice of jobs with higher training contents. Human capital development is a form of investment with expected economic as well as social returns not only to the individual investor and his family but also the society at large. The economy, with time, begins to experience growth, while the beneficiary acquires the opportunity to contribute to and secure qualitative live by being able to make the right choices and command higher earnings profile. Consequently human capital development has been seen as the ultimate concern of all types of development-economic, social, cultural, political, etc. Capacity building or human capital development responds to a wide-range of questions such as what people are able to be or do, the issues longevity, health and mind development, their inalienable fundamental human rights to freedom of choice, speech, association, political, economic, social and other needs and ability to escape from avoidable diseases, malnourishment and illiteracy (HDR Nigeria 1996). Human Development Report (1996) maintains that sustainability of human capacity building is the essential component of the ethics of universalism of life, stressing that it is a matter of sharing development opportunities between all classes and groups of people between the rich and the poor, between the present and future generations. It is of the view that sustainability demands what it calls intra-generational and inter-generational equity (HRD Nigeria 1996). Capacity building or HRD has other associated benefits and returns. (Umo 1995) has itemized other crucial contributions of human capital to development in general to include; the generalized capacity to absorb economic shocks as well as cope with the complexities of modern development; creating a corps of well informed citizenry with positive attitude to national development, providing persons for technology base needed for industrialization; 2.2 CONCEPT OF PRODUCTIVITY The most widely accepted definition of productivity is that it is the ratio of inputs to output. This definition enjoys general acceptability because of two related considerations. One, the definition what productivity is thought of to be in the context of an enterprise, an industry or an economy as a whole. Two, regardless of the type of production, economic or political system, this definition of productivity remains the same as long as the basic concept is the relationship between the quantity and quality of goods and services produced and the quality of resources used to produce them. Eatwell and Newman (1991) defined productivity as a ratio of some measure of output to some index of input use. Put differently, productivity is nothing more than the arithmetic ratio between the amount produced and the amount of any resources used to produce them. This conception of productivity goes to imply that it can indeed be perceived as the output per unit input or the efficiency with which resources are used. Olaoye (1985) observed that productivity as a concept can assume two dimensions: namely total factor productivity (TFP) and partial productivity. The former relates to productivity that is defined as the relationship between outputs Growth in productivity provides a significant basis for adequate supply of goods and services thereby improving the welfare of the people and enhancing social progress (Mike Obadan). Demburg (1985) said without productivity there would be no growth in per capita income and inflation control would be more difficult. A country with high productivity is often known for high capacity utilization (optimal use of resources), high standard of living, low rate of unemployment and social progress. Productivity measures the relationship between quantitative and qualitative value of goods and services produced and the quantity of resources needed to produce them (that is, factor inputs such as labour, capital, technology) (Sumbeye, 1992; Okojie 1995; Roberts and Tybout 1997). Mali (1978) defines it as the measure of how resources are brought together in organisations and utilized for accomplishing a set of results. It is reaching the highest level of performance with the least use of resources. In this definition, the issue of efficiency is being referred to. Increased productivity will involve the use of less resources and an outcome of more output. Roberts and Tybout (1997) and Tybout (1992), assuming a neoclassical production function at the sectoral or industry , define total factor output to be a concave of inputs and time (a proxy for technological innovation). To them, the elasticity of output with respect to time is the total factor productivity. TFP = Total output / Weighted average of all inputs..1 The factor inputs include labour, capital, raw material and purchase of spare parts and so on. In a particular sense, these factors are reduced to the weighted average of labour and capital (Okojie, 1995; Roberts and Tybout, 1997). Partial productivity (PP) is defined as: PP = Total output / partial input.2 According to T. M.Yesufu, labour productivity refers to the output result of workers organised within a given economic unit or enterprise. Yesufu outlined the three basic deficiencies associated with the use of labour productivity. They include the following; the term labour as generally conceived , is ambiguous and far from inclusive. It excludes some very important categories of human inputs, especially management, marketing, accounting and the white collar workers generally, who are not directly on the production line. even the acknowledged workforce generally used for labour productivity measurement(the blue coated production line- skilled and unskilled labour) as far from homogenous, which complicates the allocation of output between the constituent classes; for example , adult and child labour; male-female, artisan, technician, etc. the output of an enterprise itself usually varies in terms of type , material inputs, labour mixes, sizes of unit products, etc., that are not easily dis-aggregated. Due to these shortcomings of the use of labour productivity some economists prefer to use total factor productivity as it is said to be superior and more acceptable for purposes of determining enterprise or macroeconomic performance. Partial productivity is particularly used for analytical purposes, to test the relative efficiency of, or returns to, various forms of inputs, and to check, for example, the effect on marginal productivity an increase or reduction of a particular type of input. 2.2.1 The Traditional Concept of Productivity The traditional concept of productivity focuses on the efficiency in the production or delivery process. In this wise, the focus is merely on the ratio of output to inputs. Thus, productivity is measured as the amount of output per unit of inputs. Since the emphasis was more generally on labour productivity, the measure was often the amount of output per worker working for one hour. This traditional approach implies a simple Mathematical relationship so that productivity improvement means producing more with less or the same amount of inputs; or sustaining the same level of output with less input. This traditional view derives from the economic logic of cost minimisation. One implication of this approach is that traditional productivity improvement schemes tend to focus on how to reduce inputs employed and improve the skills of the workers they retain. Workers lay-offs, while seeking to maintain the same levels of output with the reduced work force became popular at enterprise levels. The present policy of the Federal Government to reduce the work force in the public service is as a result of this traditional logic. 2.2.2 New Emerging Concept of Productivity Globalisation and the new forms of competition which it has brought about, however, today require us to focus on a much broader concept of productivity. Likewise, we need to appreciate more fully the changing dynamics of the factors involved in the process of productivity improvement. As a recent analysis points out, increased competitiveness, the increased complexity of markets, the globalisation of manufacturing and the increased concern about social and ecological issues make productivity improvement more important at the same time that the need for a broader meaning of productivity is required. Thus, the focus today is increasingly on total factor productivity and the process of its improvement involves improving the overall business environment. This involves the promotion of better labour-management relations, continuous improvement in products and processes, enhancement of the quality of work life and continuous development of the human resource. In this new conception, the emphasis of the direction to productivity improvement is on increased added value creation, rather than the minimisation of labour inputs. Emphasis has also been brought to bear on the distribution of the benefits of productivity improvement among all stakeholders (workers, employers, consumers). Productivity is not seen any more just as the physical increase in output, but also as the improvement in the quality and value or acceptability of the product or service. Thus, productivity is not just an efficiency concept any more, but equally an effectiveness concept. In an increasingly globalized world, productivity improvement does not just involve the efficient production of products or services, but of products and services that are needed and demanded and bought by very discerning customers. Customer orientation is increasingly in the fore and quality is now an important index of performance. Productivity is becoming identical with quality. 2.3 DETERMINANTS OF PRODUCTIVITY A number of factors affect productivity. Major among these are the complementing factors of production as well as technology/innovation, institutional backup, worker motivation, the quality of labour, environment, etc( U.O. Anyanwu). To discover the effect of each of the cooperating factors on productivity, we have to go into a theoretical world where we can hold other things constant while varying each of these factors one after the other. Here, we are still relying on the theory of diminishing marginal productivity which states that if increasing amounts of a variable factor, say labour, is applied to a fixed amount of other factors (e.g. land, capital, materials etc.), given the level of technology then beyond a certain number the extra or marginal product of the variable factor begins to fall down or diminish (Todaro 1985) However, in a real world all the factors impact productivity simultaneously. (a) Land, A Factor of Labour Productivity Growth Land can affect productivity both quantitatively and qualitatively. If land is identified as the limiting factor of labour productivity more arable land can be brought under cultivation to relax the land constraint. In this regard a number of forest reserves have, for this purpose, to be deforested. The quality of land can be improved through the application of manure and fertilizer, which also increases the yield per hectare. Other methods of farming that make for more yields per hectare of land such as improved seed and grain varieties have been adopted by modern farmers. New land policies that alter tenure ship and ownership are devices for relaxing land constraints and improving productivity. (b) Capital Accumulation and Labour Productivity. If identified low labour productivity is attributable to lack of capital, capital can be raised through the mobilization of domestic and foreign investment. Acquisition of new factories, equipment, and machinery will lead to increases in productivity and output per capita of the nation. The Nigerian Governments are committed to the attraction of foreign investments to, among others; improve the capital base of the country. However, while the efforts are being made to cover the need for further capital, installed capital such as the Liquefied Natural Gas Project, Petrochemical plants, Refineries and Iron and Steel factories, among others need revitalization if our productivity is to increase. Investment in social and economic infrastructure gives a significant effect to productivity such as roads, electricity, water, sanitation, communication for the facilitation of economic activities. Road networks are needed to bring the additional product to areas of need, while electricity, water, communication, all play very dominant roles in bringing about the additional product and service arising from the new investment. Dams, irrigation facilities, bridges and road extensions to interior areas all raise product per hectares of cultivated land. Use of chemicals, fertilizers, pesticides, etc. is part of the capital needed enhanced productivity because by raising value of the farm land, productivity is also being improved. (c)Technology/Innovation and Productivity Most economists regard technology/innovation as the most important source of growth. Technology is being seen as a new and improved ways of achieving or performing traditional tasks. Technology can be neutral, labour or capital intensive. Technology is said to be labour and capital neutral when higher output levels are achievable using the same quantity and combinations of factor inputs in a production process. Simple innovations such as re-distribution of labour can result in higher output levels, too. On the other hand, technology may be capital intensive or labour intensive if higher levels of output are possible, with more capital or more labour. Use of simple implements such as those of cottage and small scale industries are said to be labour intensive while those such as electronic computers, automated textile looms, mechanical ploughs, tractors display capital intensity (Todaro 1985). In industrialized countries where unit cost of labour is very high and expensive technology choice favors one that is capital intensive or labour saving, while in developing countries such as Nigeria where there is abundance of labour and scarcity of capital, choice of technology gravitates towards those that are labour intensive, and capital saving. There is the fourth aspect of technology called labour or capital augmentation technology. The quality or skill of labour can be augmented by the use of, for example, videotapes, televisions and other electronic communication devices while capital augmentation is said to occur when productivity can be enhanced by the use of existing capital goods for instance iron types etc can replace wooden hoes. Today hybrid products such as cassava, rice, etc that give higher yield per hectare are being developed through technological augmentation. (d) Labour Force Growth and Labour Productivity. Labour Force growth an important part of the population growth stimulates economic growth and productivity growth particularly when growth has not attained its optimum level. A large labour force, all things being equal, means a large population and the latter is potentially a large domestic market, and if well endowed, empowered and developed, a great international market, too. However, much depends obviously on the capacity of the economic system to productively employ the additional workers arising from the population/labour force growth. Again this will equally depend on the rate and kinds of capital accumulation and the availability of related factors such as managerial and administrative skills and competence the level of commitment of the political administration. 2.4 IMPACT OF HUMAN CAPITAL DEVELOPMENT ON LABOUR PRODUCTIVTY Human Capital Development enhances labour productivity and the productive capacity of the economy. Employers regard the qualification arising from capacity building, as a reliable indication of personal ability, achievement drive reasoning for instance that, a graduate must make a better salesman than a man who had never met the