Reflective paper Essay Example | Topics and Well Written Essays - 1500 words

Reflective paper - Essay Example Gained information from other authors and experts in the more casual setting on what questions which can fall under open-ended and close-ended questionnaires Day 2 (morning) Interviewed nurses on how and what questions they asked in order to gain health-related information from their patients. Gained information on the type of questions they used and how they asked such questions from patients Day 2 (afternoon) Interviewed doctors and other health professionals asking them the types of questions they should be asked by other health professionals in relation to patient care. Gained knowledge on what I can ask from doctors and other health professionals in order to gain the most data about the patient’s care. ... Day 4 (afternoon) Formulated open-ended and close-ended questions based on books and studies researched, and based on information gathered from other nurses, patients, and health professionals Organize information on paper based on knowledge gained above and establish open-ended and close-ended questions from this knowledge. Day 5 (morning) Tested such questions with 3 nurses, 3 other health professionals, and 3 patients; feedback from such questions were asked from the respondents Learned what was lacking and what needed improvement in the questionnaire Day 5 (afternoon) Questionnaire refined based on the suggestions of the respondents Integrated more improvements on questionnaire based on initial feedback Day 6 (morning) Rapport building was carried out with other colleagues, health professionals, and patients. Found out ways of getting around patient’s defenses and get them to be more open about their health issues. Day 6 (afternoon) Posed open-ended and close-ended questio ns on patients to establish their history and physical assessment details Gained accurate, timely, and appropriate information about the patients to assist in the diagnosis and treatment plan. Reflection The plan above which I followed in the application of my PDP, contains both advantages and disadvantages. This plan was very much effective in achieving my goals for this research. Basically, I believe that what I have done above will help me better communicate with patients and other health professionals. In carrying out the question and answer process, I was able to bring further support to the idea by the JCAHO (2003) which stated that open-ended questions are known to yield definite answers from the patient in relation to past and current

United arab emirates stand agaisnt ISIS Essay Example | Topics and Well Written Essays - 500 words

United arab emirates stand agaisnt ISIS - Essay Example The nation registered a strong condemnation for the terrorist acts and gross human rights violations committed by ISIS (Khaleej Times 1). This included a range of heinous crimes against humanity committed by ISIS like the beheading and killing of Western hostages, genocide of ethnic and religious minorities, violation of political and human rights by ISIS in the territories under its domain and its overall ideology of violence, intolerance and radicalization of Islam. In multiple official communiquà ©s made by the UAE, both to the regional and global media, the Emirate officially labelled and categorized ISIS to be a threat to humanity, a big challenge to regional peace and stability, and a cause of concern that warrants collective international action and commitment (Khaleej Times 1). The UAE also made proactive efforts to muster and influence the international community against the grave threat posed by ISIS, by sponsoring a range of regional meets and opinion making efforts. This included hosting International Centre of Excellence against Violent Extremism and organizing a â€Å"Muslim Council of Elders â€Å"comprising of reputed scholars from many Muslim nations, with the objective of combating the ideological sway commanded by ISIS in the region for the time (Khaleej Times 1). In addition, the UAE pledged an unconditional and committed support to the Western efforts to fight ISIS. UAE is amongst the group of Middle East nations including Saudi Arabia, Qatar, Bahrain and Jordan who are actively participating in the airstrikes against ISIS, led by the US and other Western powers (Khan 1). The UAE also expressed a strong support for the UN Security Council Resolution 2170 aimed at galvanizing international efforts against the war on ISIS (Khaleej Times 1). In addition the Ministry of Foreign Affairs is looking to it that

Government Bond Market in Nigeria

Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an Government Bond Market in Nigeria Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an

Censorship :: essays research papers

Censorship "The song [Cop Killer] is fiction, not fact. At no point did I go out and say 'Let's do it.' I am singing in the first person as a character who is fed up with police brutality. I ain't never killed no cop. I felt like it a lot of times. But I never did" -Rapper Ice-T, National Review, July 20, 1992. Statements such as that has started an on going debate about censorship in the television and music industry. What exactly is censorship? Some feel censorship is a violation of the first amendment right. Others say censorship is a must in the violent, abusive world we call "society". Who has the right to censor? Who doesn't? What needs to be censored, and what doesn't? The fact of the matter is that their are the pro's and con's in the music and entertainment industry about censorship. Since its invention earlier this century, television has become the most popular format for entertainment. We can be entertained, informed, and inspired by programs on TV. In fact, Americans love TV so much that we probably watch far too much of it. TV stations are becoming less restrictive about content in their programs. More violence, profanity, and nudity than ever before now graces our TV screens every night. Clearly, there are things that children should not be seeing on TV. The new V-chip legislation passed be Congress requires all TV manufactures to install an electronic device that allows parents to set the tolerance levels for violence, profanity, and nudity. However, are children's viewing habits the responsibility of the government or the parents? There are several arguments that can be made on censorship on TV. One for example, what the pro's for censorship? What are the con's? The are a lot of good points and bad points about censorship on TV. A good point that can be made is that there are a lot of violence and profanity on the "tube". This can be clearly stopped by the new V-chip legislation just passed. But would the V-chip automatic censor block out such violent dramas a "Schindler's List," "Root." or "Gone With the Wind?" Would producers make a television mini-series about the bloody Civil War, which very likely would be blocked as too violent, or pass on such a project for fear of censorship? Another good point to censor certain TV shows is the theme of the show or movie.

Traditional Education

Traditional education From Wikipedia, the free encyclopedia Traditional education, also known as back-to-basics, conventional education or customary education, refers to long-established customs found in schools that society has traditionally deemed appropriate. Some forms of education reform promote the adoption of progressive education practices, a more holistic approach which focuses on individual students' needs and self-expression. In the eyes of reformers, traditional teacher-centered methods focused on rote learning and memorization must be abandoned in favor of student-centered and task-based approaches to learning.However, many parents and conservative citizens are concerned with the maintenance of objective educational standards based on testing, which favors a more traditional approach. Depending on the context, the opposite of traditional education may be progressive education, modern education (the education approaches based on developmental psychology), or alternative e ducation. [1] Contents * 1 Definition * 2 Instruction Centre * 3 Marking * 4 Subject Areas * 5 Criticism of the concept of teaching in traditional education| DefinitionThe definition of traditional education varies greatly with geography and by historical period. The chief business of traditional education is to transmit to a next generation those skills, facts, and standards of moral and social conduct that adults deem to be necessary for the next generation's material and social success. [2] As beneficiaries of this scheme, which educational progressivist John Dewey described as being â€Å"imposed from above and from outside†, the students are expected to docilely and obediently receive and believe these fixed answers.Teachers are the instruments by which this knowledge is communicated and these standards of behavior are enforced. [2] Historically, the primary educational technique of traditional education was simple oral recitation:[1] In a typical approach, students sat quietly at their places and listened to one student after another recite his or her lesson, until each had been called upon. The teacher's primary activity was assigning and listening to these recitations; students studied and memorized the assignments at home. A test r oral examination might be given at the end of a unit, and the process, which was called â€Å"assignment-study-recitation-test†, was repeated. In addition to its overemphasis on verbal answers, reliance on rote memorization (memorization with no effort at understanding the meaning), and disconnected, unrelated assignments, it was also an extremely inefficient use of students' and teachers' time. This traditional approach also insisted that all students be taught the same materials at the same point; students that did not learn quickly enough failed, rather than being allowed to succeed at their natural speeds.This approach, which had been imported from Europe, dominated American education until the end of the 19th century, when the education reform movement imported progressive education techniques from Europe. [1] Traditional education is associated with much stronger elements of coercion than seems acceptable now in most cultures. [citation needed] It has sometimes included: the use of corporal punishment to maintain classroom discipline or punish errors; inculcating the dominant religion and language; separating students according to gender, race, and social class, as well as teaching different subjects to girls and boys.In terms of curriculum there was and still is a high level of attention paid to time-honoured academic knowledge. In the present it varies enormously from culture to culture, but still tends to be characterised by a much higher level of coercion than alternative education. Traditional schooling in Britain and its possessions and former colonies tends to follow the English Public School style of strictly enforced uniforms and a militaristic style of discipline. This ca n be contrasted with South African, USA and Australian schools, which can have a much higher tolerance for spontaneous student-to-teacher communication. citation needed] Instruction Centre | | Topic| Traditional approach| Alternate approaches| Person| Teacher-centred instruction: * Educational essentialism * Educational perennialism| Student-centred instruction: * Educational progressivism| Classroom| Students matched by age, and possibly also by ability. All students in a classroom are taught the same material. | Students dynamically grouped by interest or ability for each project or subject, with the possibility of different groups each hour of the day.Multi-age classrooms or open classrooms. [3]| Teaching methods| Traditional education emphasizes: * Direct instruction and lectures * Seatwork * Students learn through listening and observation[4]| Progressive education emphasizes: * Hands-on activities * Student-led discovery * Group activities| Materials| Instruction based on text books, lectures, and individual written assignments| Project-based instruction using any available resource including Internet, library and outside experts| Subjects| Individual, independent subjects.Little connection between topics[3]| Integrated, interdisciplinary subjects or theme-based units, such as reading a story about cooking a meal and calculating the cost of the food. | Social aspects| Little or no attention to social development. [3] Focus on independent learning. Socializing largely discouraged except for extracurricular activities and teamwork-based projects. | Significant attention to social development, including teamwork, interpersonal relationships, and self-awareness. | Multiple tracks| * A single, unified curriculum for all students, regardless of ability or interest. Diverse class offerings without tracking, so that students receive a custom-tailored education. * With School to work, academically weak students must take some advanced classes, while the college bo und may have to spend half-days job shadowing at local businesses. | Students choose (or are steered towards) different kinds of classes according to their perceived abilities or career plans. Decisions made early in education may preclude changes later, as a student on a vo-tech track may not have completed necessary prerequisite classes to switch to a university-preparation program. Student and teacher relationship| Students often address teachers formally by their last names. The teacher is considered a respected role model in the community. Students should obey the teacher. Proper behavior for the university or professional work community is emphasized. | In alternative schools, students may be allowed to call teachers by their first names. Students and teachers may work together as collaborators. | Marking Topic| Traditional approach| Alternate approaches| Communicating with parents| A few numbers, letters, or words are used to summarize overall achievement in each class.Marks may be assigned according to objective individual performance (usually the number of correct answers) or compared to other students (best students get the best grades, worst students get poor grades). A passing grade may or may not signify mastery: a failing student may know the material but not complete homework assignments, and a passing student may turn in all homework but still not understand the material. | Many possible forms of communicating achievements: * Teachers may be required to write personalized narrative evaluations about student achievement and abilities. Under standards-based education, a government agency may require all students to pass a test; students who fail to perform adequately on the test may not be promoted. | Expectations| Students will graduate with different grades. Some students will fail due to poor performance based on a lack of understanding or incomplete assignments. | All students need to achieve a basic level of education, even if this means spe nding extra years in school. | Grade inflation/deflation| Achievement based on performance compared to a reasonably stable, probably informal standard which is highly similar to what previous students experienced. The value of any given mark is often hard to standardize in alternative grading schemes. Comparison of students in different classes may be difficult or impossible. | Subject Areas Topic| Traditional approach| Alternate approaches| Mathematics| Traditional mathematics: * Emphasis is on memorization of basic facts such as the multiplication table and mastering step-by-step arithmetic algorithms by studying examples and much practice. * One correct answer is sought, using one â€Å"standard† method. * Mathematics after elementary grades is tracked with different students covering different levels of material. Mathematics is taught as its own discipline without emphasis on social, political or global issues. There may be some emphasis on practical applications in scien ce and technology. | * Curriculum de-emphasizes procedural knowledge drills in favor of technology (calculators, computers) and an emphasis on conceptual understanding. * Lessons may include more exploratory material supportive of conceptual understanding, rather than direct presentation of facts and methods. * Emphasis may be on practical applications and greater issues such as the environment, gender and racial diversity, and social justice. Mathematics lessons may include writing, drawing, games, and instruction with manipulatives rather than filling out worksheets. [5] * Lessons may include exploration of concepts allowing students to invent their own procedures before teaching standard algorithms. * Grading may be based on demonstration of conceptual understanding rather than entirely on whether the final answer is correct. * In some countries (e. g. the United States), there may be expectations of high achievement and mastering algebra for all students rather than tracking som e students into business math and others into mathematics for math and science careers. Science| Fact-based science: Science class is an opportunity to transmit concrete knowledge and specific vocabulary from the teacher (or textbook) to the students. Students focus on memorizing what they are told. â€Å"Experiments† follow cookbook-style procedures to produce the expected results. | With Inquiry-based Science a student might be asked to devise an experiment to demonstrate that the earth orbits the sun. The emphasis changes from memorizing information that was learned through a scientific method to actually using the scientific method of discovery. Language learning| Phonics: The focus is on explicit training in sound to letter correspondence rules and the mechanics of decoding individual words. Students initially focus on phonics subskills and reading simplified decodable texts. When they have mastered a sufficient number of rules, they are allowed to read freely and extens ively. (In many languages, such as French, Spanish and Greek, phonics is taught in the context of reading simple open syllables. )| With whole language the child is exposed to rich, relevant language that can heighten motivation to read.Learning to read is assumed to be as natural as learning to speak, so students are not formally taught sound to letter correspondences, but assumed to infer them on their own. (Note that this issue is limited to languages such as English and French with complex phonetics and spelling rules. Instruction in countries with languages such as Spanish and Greek, which have relatively simple phonetic spelling, still depends mainly on phonics. )| Criticism of the concept of teaching in traditional education Traditional education focuses on teaching, not learning.It incorrectly assumes that for every ounce of teaching there is an ounce of learning by those who are taught. However, most of what we learn before, during, and after attending schools is learned wi thout it being taught to us. A child learns such fundamental things as how to walk, talk, eat, dress, and so on without being taught these things. Adults learn most of what they use at work or at leisure while at work or leisure. Critics argue that most of what is taught in classroom settings is forgotten, and much of what is remembered is irrelevant.

Extracurricular activity Essay

You may not know a lot of people when you start high school. Maybe your friends from middle school are going to a different high school. Even if you know other freshmen, you might feel nervous that you don’t know any upperclassmen. How are you going to make friends among this sea of unknown faces? Most high schools hold a freshman orientation before school actually starts. These are helpful not only because you learn your way around the building and get to meet some of your teachers, but you also get to meet fellow freshmen. That way, when you show up on your first day of school, you may already recognize a few familiar faces. When you talk to people at orientation, you’ll probably find that a lot of them are feeling just like you are. They’re all new to the school and don’t know what to expect. Talking about a common concern with your classmates can spark new friendships. Learning Inside the Classroom How about the workload in high school — is it a lot harder? Again, this is something your classmates are probably worried about, too. The work in high school builds on what you learned in middle school, giving you a more advanced knowledge of many academic subjects. So you may find you have more work to do or that it’s a bit more challenging. But these challenges can make you feel less bored with the usual routine — it feels great when you’ve mastered something really tough. Maybe you’ll find a new appreciation for biology or discover a passion for literature. If you ever find your work too overwhelming, teachers and tutors are available for extra help. While you have more independence as a high school student than you might have had in middle school, there are still many resources to fall back on if you feel the work is too much. Extracurricular Activities High school also has more extracurriculars than middle school did, such as clubs, music and theater groups, student government, and sports teams. This is a fantastic time to explore your interests and try new things. Who said school has to be all work and no play? These activities may take place before or after school, or during free periods or study halls. Because of this, it helps to sharpen your time management skills in your first year. Extracurricular activities are great, but remember to leave free time for yourself. Everybody needs some downtime.

im not good at english Essays

im not good at english Essays im not good at english Essay im not good at english Essay Samuel Merrill Woodbridge (1819-1905) was an American clergyman, theologian, author, and college professor. A graduate of New York University and the New Brunswick Theological Seminary, Woodbridge served several congregations in New York and New Jersey for sixteen years as a minister in the Reformed Church in America. His was the eleventh generation in a large family of English and American clergymen dating back to the late fifteenth century. After accepting a pastoral call in New Brunswick, New Jersey, he was appointed professor of ecclesiastical history and church government at the New Brunswick Theological Seminary, where he taught for 4 years. He also taught for seven years as professor of metaphysics and philosophy of the human mind at Rutgers College (now Rutgers, The State University of New Jersey). Woodbridge later led the New Brunswick seminary as Dean and President of the Faculty from 1883 to 1901 †both positions were equivalent to a seminary president. He was the author of three books and several published sermons and addresses covering various aspects of Christian faith, theology, church history and gov Samuel Merrill Woodbridge was born 5 April 1819 in Greenfield, Massachusetts. He was the third of six children born to the Rev. Sylvester Woodbridge, D. D. (1790- 1863) and Elizabeth Gould (died in 1851). [1][2]:p. 140 According to a genealogical chart published in Munseys Magazine in 1907, Woodbridge was in the eleventh generation of a family of clergymen dating back to the late 1 5th century. 3][4] The earliest clergyman in this ancestral line, the Rev. John Woodbridge (born in 1493), was a follower of John Woodbridge attended New York University, receiving a Bachelor of Arts (A. B. ) degree in 1838. [1] As an undergraduate student, Woodbridge was a member of the universitys secretive, all-male Eucleian Society and was elected o Phi Beta Kappa. [l] He was awarded a Master of Arts (A. M. ) from the New Brunswick Theological Semina ry in 1841 and was installed as a minister by the Reformed Churchs Classis of New York, a governing body overseeing churches within the region. 3][5]:p. 4 At this time, his alma mater, New York University, promoted his bachelors degree to a Master of Arts. [l] After his graduation from seminary, he served as pastor to congregations in South Brooklyn (1841-49), at the Second Reformed Church in Coxsackie, New York (1849-52), and at the Second Reformed Church in New Brunswick, New Jersey In December 1857, Woodbridge as appointed to the faculty of two schools in New Brunswick, New Jersey. He would serve 44 years as a professor of ecclesiastical history and church government at New Brunswick Theological Seminary (from 1857 to 1901) and for seven years as a professor of Metaphysics and Philosophy of the Human Mind at Rutgers College (from 1857 to Both schools were then affiliated with the Protestant Dutch Reformed He was appointed by the Synod to a vacancy in both professorates caused by the death of the Rev. John Ludlow, D. D. (1793-1857), on 8 September 1857. [8]:p. 28 During his tenure at the seminary, Woodbridge also rovided instruction in the areas of pastoral, didactic and polemic theology†often when there were vacancies amongst the faculty. [8]:pp. 414-41 5[9] seminarys faculty, circa 1904 In 1883, the churchs General Synod decided that the oldest professor in service in the Theological Seminary at New Brunswick be styled Dean of the Seminary, and to him shall be entrusted the discipline of the Institution, according to such regulations as may be agreed upo n by the Faculty. [8]:p. 134 Woodbridge led the seminary as its first Dean of the Seminary, and subsequently as President of the Faculty until his retirement in 1901. Both positions were redecessors to the present seminary president. [10] During his career, Woodbridge received honorary degrees from Union College (D. D. 1858) and from Rutgers College (A. M. , 1841; D. D. , 1857; LL. D. He retired from teaching in 1901 as an emeritus professor, at the age of 82. [1] Woodbridge married twice. His first marriage was to Caroline Bergen (who died in 1861) in February 1845; the couple had one daughter, Caroline Woodbridge (born in 1845). On 20 December 1866 he married his second wife, Anna Wittaker Dayton (1823-1920), with whom he had two daughters, Anna Dayton Woodbridge (born in 1869) and Mary Elizabeth Woodbridge born in 1872). [1][2]:p. 192 Woodbridge died at the age of 86 on 23 June 1905 in New Brunswick, New Jersey. [l] He was interred in a family plot in the citys Elmwood Cemetery. 11] Church historian Charles Edward Corwin recorded that Woodbridge was described as having a strong personality that made dry subjects to glow with life, adding that he was very firm in the faith but his loving heart made him kindly even toward those whose opinion he considered dangerous. Samuel Merrill Woodbridge was born 5 April 1819 in Greenfield, Massachusetts. He was the third of six children born to the Rev. Sylvester Woodbridge, D. D. 1790-1863) and Elizabeth Gould (died in 1851). [1 ][2]:p. 40 According to a genealogical chart published in Munseys Magazine in 1907, Woodbridge was in the eleventh generation of a family of clergymen dating back to the late 15th century. [3][4] The earliest clergyman in this ancestral line, the Rev. John Woodbridge (born in 1493), was a follower of John Woodbridge attended New York University, receiving a Bachelor of Arts (A. B. ) degree in 1838. [1] As an undergraduate student, Woodbridge was a member of the universitys secretive, all-male Eucleian Society and was elected to Phi Beta Kappa. [l] He was awarded a Master of Arts (A. M. from the New Brunswick Theological Seminary in 1841 and was installed as a minister by the Reformed Churchs Classis of New York, a governing body overseeing churches within the region. [3][5]:p. 4 At this time, his alma mater, New York University, promoted his Protestant Dutch Reformed faith. [7][b] He was appointed by the Synod to a vacancy when there were vacancies amongst the 5[9] Emeritus professo r Woodbridge (seated, center, with white beard and robes) with the of clergymen dating back to the late 1 5th century. [3][4] The earliest clergyman in this even toward those whose opinion he considered dangerous.

Nuclear Power and the Future essays

Nuclear Power and the Future essays Today's lives rely on electricity, for example, in homes, in factories, and in offices. Nowadays, human beings use nuclear power for generating electricity, but there are many problems in handling nuclear waste. To build a nuclear reactor, what you need is some mildly enriched uranium. Typically, the uranium is formed into pellets with approximately the same diameter as a dime and a length of an inch or so. The pellets are arranged into long rods, and the rods are collected together into bundles. The bundles are then typically submerged in water inside a pressure vessel. The water acts as a coolant. In order for the reactor to work, it must be submerged in water, That means that the uranium would eventually overheat and melt. To prevent this, control rods made of a material that absorbs neutrons are inserted into the bundle using a mechanism that can raise or lower the control rods. Raising and lowering the control rods allow operators to control the rate of the nuclear reaction. Whe n an operator wants the uranium core to produce more heat, the rods are raised out of the uranium bundle. To create less heat, the rods are lowered into the uranium bundle. The rods can also be lowered completely into the uranium bundle to shut the reactor down in the case of an accident or to change the fuel. The uranium bundle acts as an extremely high-energy source of heat. It heats the water and turns it to steam. The steam drives a steam turbine, which spins a generator to produce power. In some reactors, the steam from the reactor goes through a secondary, intermediate heat exchanger to convert another loop of water to steam, which drives the turbine. The advantage to this design is that the radioactive water/steam never contacts the turbine. Also, in some reactors, the coolant fluid in contact with the reactor core is gas (carbon dioxide) or liquid metal (sodium, potassium), these types of reactors allow the core to be operated at higher temperatures...

René Laennec and the Invention of the Stethoscope

Renà © Laennec and the Invention of the Stethoscope The stethoscope is an implement for listening to the internal sounds of the body. It is widely used by doctors and veterinarians to gather data from their patients, in particular, breathing and heart rate. The stethoscope may be acoustic or electronic, and some modern stethoscopes record sounds, as well.   The Stethoscope: An Instrument Born of Embarrassment The stethoscope was invented in 1816 by the French physician Renà © Thà ©ophile Hyacinthe Laà «nnec (1781-1826) at the Necker-Enfants Malades Hospital in Paris. The doctor was treating a female patient and was embarrassed to use the traditional method of Immediate Auscultation, which involved the doctor pressing his ear to the patients chest. (Laà «nnec recounts that the method was rendered  inadmissible by the age and sex of the patient.) Instead, he rolled up a sheet of paper into a tube, which allowed him to hear his patients heartbeat. Laà «nnecs embarrassment gave rise to one of the most important and ubiquitous medical instruments. The first stethoscope was a wooden tube similar to the ear horn hearing aids of the time. Between 1816 and 1840, the various practitioners and inventors replaced the rigid tube with a flexible one, but documentation of this phase of the device’s evolution is spotty. We do know that the next leap forward in stethoscope technology took place in 1851 when an Irish doctor named Arthur Leared invented a binaural (two-ear) version of the stethoscope. This was refined the next year by George Cammann and put into mass production.   Other improvements to the stethoscope came in 1926, when Dr. Howard Sprague of Harvard Medical School and M.B. Rappaport, an electrical engineer, developed a double-headed chest piece. One side of the chest piece, a flat plastic diaphragm, rendered higher-frequency sounds when pressed to the patient’s skin, while the other side, a cup-like bell, allowed sounds of a lower frequency to be discerned.

Middle school and high school students Essay Example | Topics and Well Written Essays - 1750 words

Middle school and high school students - Essay Example There is an emergence of two dominating ideas related to analyzing the provided information,the first suggested active involvement of students and teachers' enthusiasm laying the way for positive images of social studies in high and mid-school students The second idea was the perceiving of a utilitarian value emphasizing that students were not as negative toward social studies as indicated in researches made before.My instructional environment as well as my interwoven opinions of the author's research takes place in a middle school consisting of 7th and 8th grade classes. The students are organized into six academic teams: three 7th graders and three 8th graders teams. Each team consisted of five core academic subjects: English, Social Studies, Math, Science and Reading. The first notion of the study was in the following up with the first idea: it was discovered that ongoing changes in curriculum design, teaching methodology and administrative practices (especially those of punishmen t as well as detention) have an affecting attitude on the perceiving perspectives of students and the emphatic notable conclusions of the feeling of boredom, irrelevance of subject and the lack of personal interaction of students with their teachers in class.I teach in a 7th grade Social Studies classroom. There is also a Learning Support teacher that works with Learning Support students that have IEP's on each team. Students are heterogeneously grouped in all classes except Math. This class has two sections of Advanced Math students and three sections of Integrated Math students. Each team also has an inclusion class that all of the Learning Support students attend at the same time. Each inclusion class is provided with a Learning Support teacher or a teaching assistant to help with instruction. I understood and found out that the relationship between student attitudes toward social sciences and educational methodology in schools, differing according to districts as well as the lev el of income from which they are related to, relates to their achievement towards the curriculum needs and offered possibilities of the better future. Students tend to experience the subject other than memorize and dot down the content and concepts, instead, they would rather induce and reduce into a deduction form the conceptual meanings behind that of which relates them to a "bettering" of their social environment, which is the relational angle between student achievement and student self-applaud ( self-fulfillment): parents care for the achievement as well as reinforced value of the subject by the teachers' backing them up with credits and giving their opinions credentials. There is more general information concerning my teaching environment that would pertain to academic research. My teaching environment is very homogeneous relative to race. Nearly 97% of the students are white. The few minority students are African-American and Latino. The area is rural but has undergone rapid growth over the past decade. Another important fact is that many of the students in my teaching environment are considered low-income students. Nearly half of them receive free or reduced lunches based on criteria set by the federal government. A possible scenario for quantitative research is in the number of teachers who have noticed a decrease in geographic knowledge in the incoming 7th grade students, but they are not sure of the cause. During my stay at one school nearby the district where I live, notable confusion of belonging between students and their subject matters studied at school have been identifying their problems as been meticulous: one student interviewed at the school's nearby bus station, the boy's name was Eric, a middle school student, was as follows, considering his views on education: "If I were to care, then someone should be caring about me. It is not a matter of a child being looked after where everyone just applauds