A Biographical Approach to the Poem The Whipping by Robert Hayden Essay

Robert Hayden is one of the best-known American poets of his time. However, he is also one of the most underrated poets of all time, arguably not as much accolades as other poets of the same era. His poems exude admirable sincerity and tremendous grasp of poetic devices. His beautiful poem â€Å"The Whipping† is regarded as one of his finest work. A biographical approach to the poem would reveal to us that Hayden transforms his bitter memories to a sumptuous work of art. The poem is basically about a woman whipping a boy, for some reason that is not explicitly stated in the poem. The second line â€Å"is whipping the boy again† tells us that violent act is being carried on regularly. The reader immediately would assume that the woman is the mother of the boy, regardless if the woman is the boy’s biological or foster parent. The picture that Hayden had painted is vividly painful. The lines â€Å"she strikes and strikes the shrilly circling / boy till the stick breaks† suggests the level of anger of the woman and the fear and pain of the boy. The woman stopped whipping the boy only when the stick was already broken. Halfway through the poem, the author shifts from third to first person â€Å"words could bring the face that I / no longer knew or loved†¦Ã¢â‚¬  Those first person lines suggest to the readers that the speaking persona could have undergone the same kind of treatment. The line â€Å"well, it is over now, it is over† is a potent hint that the narrator is recalling his past. He is able to forgive the one that whipped him. However, he is unable to shake off the memories of being whipped as a boy. A peek to Hayden’s biography is likely to lead us to clues that had led him to conceive this poem. Hayden was born and grew up in a Detroit ghetto which the people there called Paradise Valley. During that time, violence, in the form of corporal punishment, was not uncommon. Hayden also had an irregular family life as a child. His biological parents were separated even before his birth. A couple who also exhibited a volatile relationship took him in. As a child, Hayden had witnessed domestic violence from both his biological and foster parents (Greasely 251-252). Hayden had shown us admirable honesty through his poem â€Å"The Whipping. Corporal punishment is not much talked about by adults, probably because they are now currently the ones guilty of whipping their children. Hayden had shared his memories to us to convey a message that would be vital for any community. He is suggesting to us that corporal punishment is more likely to generate childhood trauma than discipline. Moreover, he is also arguing that violence to a child is injustice. Parents blaming their child for their â€Å"lifelong hidings† are the primary reason why this vicious cycle of violence is still ongoing.

Ethical Issues in Business Essay

The issue of ethical behavior is one of the top challenges facing organizations today. A good definition of ethics includes the thought of doing what is morally acceptable or what is â€Å"good† and â€Å"right† as opposed to doing what is â€Å"bad† or â€Å"wrong† (Sims, 1992). But why are these issues a concern for organizations? What can they do to promote ethical behavior from their employees? Organizations should be concerned with ethical behavior for many reasons. Even though ethical decisions are not always black and white, ethical behavior is important to the organization because ethical behavior enhances the corporate reputation, helps attract talented employees, and enhances the corporate image. First, there is evidence that profitability is enhanced by a reputation for honesty and corporate citizenship (Kinicki, Kreitner, 2009). After all, the number one reason for business is to make a profit, thus returning value to its share holders. Consumers are more likely to buy goods or services from a reputable company then one with a reputation for unethical behavior. The Ford Company in the 1970’s was a good example of lost sales due to an unethical decision. When the Ford Pinto was hit in the rear, the gas tank would often explode. Ford was slow to acknowledge the problem. By the time Ford admitted that they had a flawed design, many consumers had stopped buying Fords. Another reason organizations should be concerned with ethical behavior is its ability to attract talented employees. In a recent survey eighty three percent of those polled rated a company’s record as â€Å"very important† when deciding to accept a job offer (Kinicki, Kreitner, 2009). Hiring and keeping innovative, creative and talented employees is essential for businesses as they attempt to compete in this global economy. Without talented people, organizations will be at a disadvantage when it comes to competing for future business. Being good corporate citizens is another reason that organizations should be concerned with ethical behavior. Businesses have many stakeholders that rely on them. These include shareholders, current and former employees, customers, suppliers and communities where facilities are located (Kinicki, Kreitner, 2009). Businesses are more than just profit centers today. When making decisions, businesses must consider the social, political, and environmental effects as well as the profitability aspect. The challenge to be a good corporate citizen has put the emphasis on being an ethical company, with every decision made. Ethics is an important organizational issue, but ethics starts with the individual. We make decisions based on a combination of our personality characteristics, values and moral principles (Kinicki, Kreitner, 2009). Each of us â€Å"learns† what is right or wrong as we grow up. Our moral compass is set by what we learn from parents, teachers, grandparents, siblings and society. We take our observations and experiences and use them to form our opinion as to what right and wrong means. We then use our moral compass to make decisions as we become employees and managers of business. Organizations should do everything necessary to address ethical issues up front. If they are unsuccessful in eliminating issues before they happen, organizations should be forthright in communicating any possible wrongdoing. Consider an example shared recently in the Wall Street Journal. Defense contractor DynCorp International Inc. recently admitted that it may have violated Foreign Corrupt Practices when it tried to speed up the issuances of visas and licensing related to work for the U. S. government overseas† (Cole, 2009, p. B. 4). This possible violation, if legitimate, was committed by sub-contractors working for DynCorp. By proactively disclosing possible wrongful behavior, DynCorp is sending a message that it will not tolerate unethical behavior by its employees or sub-contractors. But organizations can do more than address possible issues after they occur. They can impact ethical behavior in a positive manner through various means. By utilizing different measures organizational culture can be affected in a positive way. Ethical behavior starts at the top (Sims, 1992). The ethical tone of an organization is set with its top managers. How top management acts when faced with an ethical dilemma, strongly effects how the rest of the organization will react when they face questionable issues. By walking the walk and talking the talk, organizational leaders can show their subordinates what they expect in the area of ethics. Actions and words by top executives will set the tone for the entire organization. Another way an organization can positively affect ethical behavior is through a corporate code of ethics. This code of ethics should be shared with all employees throughout the organization. The company that I work for emails the code of ethics to all employees annually. A high ranking executive will send the code out for all to read. Each employee then is required to electronically sign indicating that he or she understands the code. This annual process sends the message that unethical behavior will not be tolerated. Organizations have much to do to be a productive, profitable entity in today’s global economy. Building an organizational culture that supports ethical decision making through active leadership, positive community actions, and employee involvement will go a long way toward meeting business goals. With a strong culture in place, organizations will be seen in a positive light by their customers, future and current employees, and by the communities where they do business. Being a good corporate citizenship will lead to a well liked, responsible, financially supported organization that can be competitive in the twenty first century.

My Different Kinds of Friends

I have formed many friendships in life. Each friend, however, is different. Some are closer than others. Some are more important to keep than others. There are friends made out of necessity and some formed as if by fate. Friends, certainly, are of various kinds. I have one best friend. We share many similarities in character and preferences. We have been through a lot since we first met. The best friend is someone whom you think you could trade personalities with. He is someone whom you could share your secrets, dreams and problems.He will accept you for both your good and bad traits and could be depended on in both happy and sad times. The other type of friend I have made is the group-friend. The clique is a group of people whom you go in a group with. I am part of one in school and another in the neighborhood. When I start working in a company, I know I will be part of another. Although the closeness is less than that of the best friend, belonging to a clique means having a group t o hang out with, play games with, and sympathize with each other’s life stories.Then, there are the friends I keep in close contact with but am not really close enough to confide in. I keep a good relationship with them because I see them regularly. They are schoolmates, sons and daughters of my parents, neighbors, and other people whom I interact with in a regular basis. Finally, there are the friends whom I make at various stages in my life but whom I lost contact with through the years. For instance, childhood friends who went to different schools or have already moved to other places.I keep in contact with some of them through email and sometimes I see them but a long distance friendship is different to having a regular friend around. Friends change every year or so. Even a best friend can become a mere acquaintance later on in life. There are no permanent friends unless one takes the extra effort. Friends are important to have in life, however, in that they are like life -saving crafts. We need them during fun times, but we need them more during the low moments of life.

(Balance Scorecard) Accounting Assignment Example | Topics and Well Written Essays - 2250 words

(Balance Scorecard) Accounting - Assignment Example According to balanced score card, the performance of a firm is measured on the basis of four perspectives, which are financial, customer, internal business process or value chain and learning and growth. The name balanced scorecard reflects balance between long term and short term objectives, financial and non financial measures, leading and lagging indicators, and between internal and external perspectives. Balanced score card is more than a system of measurement. It should be transformed into a strategic management system (Brigham and Louston, 2009, p.112). The new measurement system is used to align and communicate with the new strategies of firm and to properly manage them. For this, the suggested steps could be: classification and translation of strategy and vision, communicating and linking the strategic measures and objectives, planning, setting targets and aligning strategic initiatives and enhancing the learning and strategic feedback (Chandra, 2011, p.95). There are a community group of volunteers who are taking over some greenhouses at a nursery garden with an objective to grow plants as a way of providing training to the young people with learning difficulties. The principal sources of income to this community group of volunteers will be the sale of food and plants which are grown at the site, individual funding from each of the learning disabled, grant funding and charitable donations. It is advisable to them to use an appropriate balanced scorecard for the work. The use of balanced scorecard will provide the nursery volunteers with lot of benefits and the balanced scorecard should be produced with an appropriate number of financial and non-financial measures. In addition, the grant funder can apply some key performance indicator to the contract to reassure themselves that the service is being run appropriately by the volunteers. It is important to build a balanced scorecard which communicates the strategy of firm for certain

ELL Families and Schools Essay Example | Topics and Well Written Essays - 1000 words

ELL Families and Schools - Essay Example Some ELLs are introduced to English in some sort of way at home and at an early age. Oftentimes, however, this is in a decontextualized fashion and children who have had not had sufficient outside interaction with precise language practice do not function properly when they are placed in a regular classroom. "Educators should not categorize these children as having language disabilities; rather they should recognize that a sociocultural factor has influenced the children's verbal performance and has pinpointed the area that must be addressed by oral language instruction in the classroom" (Ruiz, 2008, pg. 1). Knowledge about print is another area of interest in this particular category. This is particularly important because a child's reading abilities are derived from their knowledge of print and related areas. Knowledge of print begins before a child even begins school. At that time, they also start to learn how to associate letters with sounds (Ruiz, 2008). Background knowledge is another sociocultural influence on ELLs. ... anguage learners with limited English proficiency can do as well as more proficient students on reading comprehension tasks when they do prereading activities that activate and extend the background knowledge pertinent to the tasks" (Ruiz, 2008, pg. 1). The last sociocultural component that has been identified for ELLs is sense of story. "That is, an internal sense of the usual components of a story: setting, main character(s), problem, attempts to resolve the problem, character reactions to the attempts, and resolution" (Ruiz, 2008, pg. 1). Bilingualism and Home Language Use There is much controversy surrounding whether or not learning more than one language at a young age will confuse a child and hinder his or her progress and school. However, research shows that there are many benefits for bilingual children and the sooner they start utilizing a second language, the better. According to IRC (2008, pg. 1), "A large number of research studies show very clearly that bilingualism can increase children's language abilities and help their progress in school. However, for children to experience these beneficial effects of bilingualism, it is important that both their home and school languages continue to develop. Children who can read and write as well as speak two languages have a major advantage not just in school but also in finding jobs after school." The problem with bilingualism in schools occurs when children do not have a solid first-language foundation and then are not taught or encouraged to use their initial language (IRC, 2008). Parental and Community Resources for English Acquisition There are federal and state programs readily available to ELLs, but many individuals do not take advantage of them or do not know how to gain access to them. There are

Legal Forms of Business Essay Example | Topics and Well Written Essays - 500 words

Legal Forms of Business - Essay Example In addition, where a single person can raise entire capital required to start a business in which he/she is the central service provider and wants full control. A partnership would be appropriate if the business’ ownership lies with a family or if capital contribution is done by more than one person (Ennico, 2010). Partnerships are typical in instances where the entity’s business line is not risky enough to warrant a more complex model. Limited liability partnerships are recommendable for small businesses that start off with one person or company as the owner but the need to expand by soliciting investments from other persons or companies. These new entrants are referred to as limited partners as their liabilities are limited to the business entity since they have no control of business operations. In such a scenario, the business’ daily operations are run by a general partner who is, therefore, liable for business debt unless the general partner is a company. Limited liability companies, on the other hand, are suitable for persons wishing to set up a business entity where owners’ liability for business debts and court judgements made against the company. This business form is appropriate for persons or companies that require a separate legal and tax entity from the owners , hence owners file their personal taxes from salaries and bonuses earned by the company (Mitchell, 2009). This is the most suitable form in instances where owners have massive assets that they wish to protect from business creditors, or the business conducted by the company is risky to warrant constant law suits from customers. S corporations would be suitable in instances where shareholders or owners would like to receive salaries that are considered â€Å"reasonable† by law. S corporations can also be set up when owners wish to make additional funds because funds retained by the entity after paying its

International accounting Essay Example | Topics and Well Written Essays - 1750 words

International accounting - Essay Example Thus the exchange rates were under pressure heading to period leading to intense depreciation at the time of a steep fall in the global risk sentiments forcing RBI to interrupt so as to stabilize the unit of domestic currency. As for the foreign currency the Bank has entered into the contract of foreign currency derivative with its customers to lay them off on matched basis in the inter-bank market. The foreign currency hedging is made on the spreads on the customer transactions. The risk management body of the company undertakes hedging and the methods are thus used for assessing the effectiveness of hedging. The hedging taking place may be against a single liability or asset or a portfolio of the same (HDFC Bank Ltd., 2012, pp.110-124). Extent and Nature of Foreign Currency Exposure The Bank has entered into derivatives and foreign exchange deals after setting up counterparty credit limits on the basis of the counterparty’s ability to meet obligations in the event of foreign currency exposure. For such like endeavors the bank does not bear any market risks but only carries the credit risk associated with the counterparty. The Bank generally maintains a provision for the standard assets inclusive of the credit exposures on the basis of current market to market value of interest rate and gold and foreign exchange derivatives contract at stipulated level by the RBI from time to time. For the overseas branches of HDFC the provisions are maintained at a much higher level by the respective regulator of RBI. The effect of translation exposure of the company has resulted in translation reserve of the company amounting to Rs. 251,651,000 on 31st March, 2012. However, the treasury segment usually consists of the net interest earnings from the bank’s investment portfolio, money market lending and borrowing, losses or gains on the investment operation and on account of trading in derivatives contract and foreign exchange. The non-monetary as well as the mon etary foreign liabilities and assets of non integral foreign operations. These are then translated based on the rates of closing exchange notified by FEDAI related to the Balance Sheet date thereby resulting in profit or loss of the company that arises out of exchange differences which gets compiled in the Foreign Currency Translation Account till the disposal of the net investment in the non integral foreign operations (Raynor, 1999, p.156). Major risks of the business Since the intensification of the global financial crisis of 2008, risk related to the domestic growth of the company was a hindrance faced from the external environment of the company. The Bank also faces risk related to the Technology Risk Management of the company generally resulting in the cyber fraud. The other critical risks faced by the bank are the operational risk, credit risk and the market risk. Credit risk aroused from the non-payment of the loaned amount of the company whereas the market risk associated w ith the interest rate risk and the liquidity risk of the company. Th

'How far do you agree that poverty has a direct link to health' Essay

'How far do you agree that poverty has a direct link to health' - Essay Example Karl Marx, a great philosopher, believed that societies progress through a coherence of class struggle between the rich who controls societal systems and underprivileged members of society who act as their subjects. According to Marx, the scenery of societal systems could be improved through the idea of socialism where all members of the society enjoy a fair and equal share. The essay will examine how the societal systems contribute to poverty whose impacts are felt in access to health care. This essay offers valuable and elaborate guidance for health service providers. The assessment of the aspects poverty in relation to access to health care shows a close link both abstractly and operationally. Link between Health and Poverty Access to good health care is dependent on the financial status of an individual. Poor people have limited access to health care facilities as compared to the rich people. It is worth noting that material deficiency and the numerous social disadvantages associ ated with poverty makes it impossible for poor people to access health care (Pieratt-Seeley, 2002, p. 232). Due to the strong connection between poverty and health, there have been deliberate efforts to reduce poverty as one of the ways to make it possible for all people to access health care. ... These mechanisms can help clarify why the impacts of poverty on health may continue to hit if poverty is considered in relation provisions rather than as an absolute deficiency (Saunders, 1998, p. 13). Assessing the links between poverty and health is significant for policy makers since it draws consideration to the likelihood that poverty can be associated with adverse health outcomes. It also helps in examining the distribution of income and health inequalities. Moreover, social aspects of health and social environment give rise to the values and practices that control health conditions and costs (Saunders, 1998, p. 17). Since the health sector has minimal authority over most powerful influences on health, such as education, food, shelter, environmental risks, and work conditions, it meets the practical difficulties of recognizing how it can successfully work to disrupt the brutal cycle of poverty to access to health care (Pieratt-Seeley, 2002, p. 234). Marx criticized capitalism s ystem arguing that it resulted in class struggle where some enjoyed prime services at the expense of the underprivileged (Pieratt-Seeley, 2002, p. 234). The basic principle of human rights, which include health, upholds all people equally. The issue of the guidelines to be adopted in human rights has been controversial due to differing policies, culture and beliefs in the society (Young, 1999, p. 269). Marx stipulated that the human dignity should be respected including other necessities of life. He argued that capitalism results in discrimination, which may cause high poverty levels in a country due to poor policies and implementation of the government policies, high incidences of impunity, skewed

An Economist's Account of the Existence of Moral hazard in the Essay

An Economist's Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac - Essay Example However, it is argued that the existence of the excessive utilization of these systems is due to the absence of a financial barrier to control the demand, and presence of financial arrangements on the supply side, which enables providers to supply wasteful amounts. Generally, unregulated, competitive markets result in private health insurance, which contributes to the concept of more insurance, which helps reduce health risks, but at the same time, increases demand and cost. In this regard, Nyman (2003) argued that most economists view the idea of controlling the supply side as a possible way of alleviating this problem. With such deliberations, it has been difficult for both the policy makers and economists to measure the level of demand and supply considered ideal in the market. In light with this, initiatives have been formulated in order to counteract moral hazard. Consumer moral hazards counter policies In order for policies to respond to consumer moral hazards, various issues h ave to be put into consideration without necessarily focusing on financial ones. The use of primary-care doctors as the gateway to preventing overuse of hospital services has been endorsed by many high income countries (Culyer and Newhouse 2000). On the other hand, the same modality has been endorsed by lower income countries by way of using bare-foot doctors. Nevertheless, numerous measures have been designed to counteract consumer moral hazards. Co-payments Co-payments have been utilized by a number of countries to exert some financial burden on the consumer in order to discourage unnecessary use of health care. This involves several schemes, which differ on the basis of the financial arrangement (Sexton 2010). Nevertheless, individual scheme is composed of flat rate change for each unit of service, a deductable akin to excess, and co-insurance. One of the most notable contributions of co-payments comes from the famous health insurance implement (HIE). In this particular experimen t, families that participated in the experiment were randomly assigned one of the different free-for-service insurance plans. The free for service plans involved different levels of cost sharing. Covered expenses included most medical services. Another set of the plan involved free access to inpatient services. The outcome of the experiment indicated that utilization responds to amounts paid out of pocket. Per capita total expenses on the free recorded 45 percent higher than those on the plan with a 95 percent co-insurance, however, spending rates on the rest of plans was on average. On the other hand, outpatient expenses on the provided free plan recorded an increase of 67 percent higher than those on the 95 percent co-insurance plan. The findings from this experiment indicated that an increase in the user price will lead to a decrease in demand. In this regard, it is apparent that implementing charges would lead to doctors concentrating more on those who can afford to pay (Sexton 2010). However, the implication is that those more in need tends to have less access to services. This becomes the problem of the approach advocated by RAND study. This is arguably true because in aggravate, the figure of those more in need of service and able to pay is replaced by those less in need and unable to pay. The other important issue of concern is whether the response of demand for health care to adjustment in its prices is the same or different for several groups in society (Nyman 2003). It is also necessary to

Randy Pausch Essay Example | Topics and Well Written Essays - 500 words

Randy Pausch - Essay Example Another point that he focused on was that one individual can help other individuals in attaining their dreams. One of the most important points that Pausch talked about was head fakes. The term head fakes refer to learning that takes place in an indirect manner (Pausch 1). He stated that parents send their children to learn football, but the real purpose of this that they want their children to learn how they can become better team mates. Another essential point that Pausch talked about was the to-do-list he developed as a child and these to-do-list comprised of various things he wanted to achieve in his life. Another significant point that he talks about is that he had spent his life helping others in attaining their aims and objectives and for this reason he gives an example of the virtual world that he and his students developed. Another important point he focused on was humility which refers to being humble to others. There are various lessons in the lecture provided by Pausch and these lessons can help managers in several ways in managing their subordinates. One of the most important concepts that Pausch talked about head fakes in connection with football. Managers in organizations can use the example provided by Pausch to help develop better teams in his/her organization. A manager can arrange football matches for his/her subordinates. Playing football will help a manager’s subordinates in different ways. Football is a game that requires teams to play in a united manner and every member of the team is dependent on each other. This will help subordinates in learning the importance of team members and team members will develop trust for each other and better relationships with each other through these games. Secondly, Pausch stated that one needs to help others in attaining their aims and objectives of life. Managers can make their subordinates develop to-do-list that comprises of all the things that subordinates want to achieve. This will help

The Serena Group and Its Personnel System Assignment

The Serena Group and Its Personnel System - Assignment Example The group has approximately five thousand employees working in various departments. For efficiency of service, the industry has various departments where employees are deployed (Tanke, 2009). In its operation, the industry operates under Tourism Promotion Service (TPS). The industry has three major departments: food and beverage, accommodations, and travel and tourism. These departments are managed by the general manager. Executive committees are under the general manager. These are the Executive Housekeeper, Front office manager, food and beverage manager, chief engineer controller, room division manager, chief chef, personnel manager and marketing manager. These staff members work congruently in all the branches. Below the executive committees are the heads of different sections. These are the restaurant managers, room service manager, banquet manager, security guest relation accountant, horticulturist preventive maintenance manager, cashier, reservation manager stewards, laundry m anager and the bar manager. All these employees work in ensuring that their customers get the best services. Â  Although the industry has exceptionally shown outstanding performance, it has internal challenges that are facing. One of the distinct challenges is the high turnover ratio. Most of the employees lay off their duties haphazardly due to the nature of the work they do or for other reasons. Although every workplace has its challenges, hospitalities industries, more so, Serena group has high turnover rates due to the following: Â  Most of the luxury hotels, if not all, depending on the tourists and travelers for their operation. As the tourists travel across the continents, they exploit on these luxurious hotels for their meals, accommodations and stay.

Liberty today Essay Example for Free

Liberty today Essay The common notion of liberty today has been linked to the connotation of being free – freedom from dictators telling what the people should do and should not do, freedom from responsibilities, and alleviation of any restrictions we are suffering before. Liberty has always been related to the mitigation of certain laws and restrictions that bind us to do things that we desire. This is exists either as punishment or as a responsibility. Some perceptions of liberty are those which enable us to do something, or give us access to certain things that we were not able to access before. This is a manifestation of how varied people’s views of liberty are, wherein this also created a delineation of liberty, as either positive, or the â€Å"freedom to † and negative liberty which is about being â€Å"free from†¦Ã¢â‚¬  This various meanings arise depending on the situation or timeline one lives in. Therefore, the meaning of liberty has been twisted and redefined over the course of history, making it a term directly associated with freedom. Liberty for some is a description of oneness, of a singular thing or object, wherein there exists one state of being. It is an interpersonal, social idea wherein it arose from the people’s need to communicate. Liberty means being treated as a fellow person by another man, not just his servant or worker. This acknowledgement means that the person is being treated as an equal, not as anyone higher or lower that you are. Liberty doesn’t mean you are moving away from a certain group, but looking closely, liberty is a feature of connection, not of isolation or exclusion. Liberty doesn’t entail isolating oneself from the others, but rather being able to connect with various people, like socializing and promoting interpersonal relationships from various people. So whether you isolate yourself, you are depriving yourself your liberty. Liberty has solicited a lot of different meanings, and there is no proof on which meaning is true or not. There are no clear definitions that tell what liberty means, and that it doesn’t necessarily imply that liberty means being free from people, from the laws they set which binds us, or whatever the consequences our actions bring on other people. The certain instance when liberty becomes meaningful is when we are free with people, wherein we are able to do anything that we desire freely. But doing this still has a limitation. Our freedom stops when we are overlapping or stepping on some other’s freedom. That is the time when liberty makes sense, when we know our limitations, when we know that a certain level of exercising our freedom would intervene somebody else liberty, not unless our actions could re-enforce other people’s liberty. But the sad reality of liberty is that it only exists on people of the same footing, between equal human beings. In the case of inequality, it introduces a hierarchal position, thus putting a man above another man, thus implying superiority over the other. Inequality leads to slavery and other forms of undermining other people. That is why liberty only exists or is exercised freely in a society of equals. Before, back when people are engaged in slave trade, the notion of liberty was being able to alleviate yourself from the bounds of your master, since you are a servant, you are expected to serve him. Since slavery at that time were literally robbing other ethnic societies of their people (eg. Slave trade in Africa,) they are being transported to other parts of the world, primarily in the western side, the Europeans. They are alienated from their own homes, forced to work in the lands of the white people, and their notion of liberty was going back to the lives they ones had, back in their homeland, where they lived freely, away from the bonds that these white people have imposed on them. Liberty at that time was an aspiration for the slaves, for slavery was the great oppressing force at that time. After slavery came the wars. People from other nations were moving to conquer other lands, extending their influence, showing the world the power they possess. After colonizing, their colonies were subjected to foreign rule, laws wherein they are not accustomed to, and these are being imposed to them strictly, whether they like it or not. At this point of time, Liberty is more of about freedom from the influence of other ideologies or customaries. When people are imposing something, like a certain rule or law to other people, it is a manifestation of their subjugation, thus trampling down the Liberty that exists for the people in the country that they have conquered. Liberty has been the cause of wars, of uprisings from these colonies, in order to fight for what they believe is right. Another instance was in the times of civil war, when people desired liberty from the harsh rules or unpleasant dispositions of their current leader. This causes people to form groups or factions and do undesirable things. These uprisings are said to be fighting for liberty, which in this case was being autonomous from the grasps of a cruel leader. Looking closely, the aspect of liberty in these situations was of a larger scale as compared to that of slavery. Slavery’s focus was alleviating your personal situation as a slave, or the liberty from the bonds of a master and slave. While these wars and uprisings is liberty on a larger scale on a national level wherein you wish to liberate the whole country or region itself from the bonds it has on the parent or colonizing country, wherein you demand for a better quality of life, no that of which you have now. In our present situation, we are also experiencing a certain liberty. Liberty now is expressed as freedom – freedom to do whatever you want, depending on your rights as a human being, provided that you don’t step on the rights of other people. Liberty now has different forms, depending on the person addressing it. It could include the way you dress, the way you speak, how you look, your choice of religion, and so much more. It is a clear manifestation that what was being fought for before was now achieved, yet liberty is still being used, but in a different context. Liberty now express freedom of the person, or even a institution, like for example, the journalists are free to write about topics which they deem essential for the people to hear or see, which is simply the freedom of the press. Liberty means exercising these things to the fullest, and not doing so means you are being treated unfairly. Prostitution as the Oldest Occupation The emergence of prostitution could be traced back in the 1800’s in the Victorian Era, at the time of strict morality and repulsion of anything that deviates from social norm. It generally elicited a negative impression from the people, condemning the act of using one’s body to earn a living. The people which are most affected by this negative outlook are the women involved in prostitution. They are looked down as man-sucking vampires, seducing them with their bodies in order to earn money (Ruggiero). But in reality, these women maybe the ones oppressed the ones who are victimized by the harsh conditions of the society especially in the Victorian Era. Their turn on prostitution may be the outcome of man’s desire to keep the women oppressed: a manifestation of women being marginalized and discriminated. Women before were considered to be inferior to men, usually seen as dependent on their male counterparts. Sex has been a way to satisfy these men, and that is one of the very few uses of women at that time. Thus, when there is a time of great need, the women would often resort to selling their bodies to the males who are very willing to pay for their services. This opens the opportunity for sex as an income-generating medium for these women. Economic poverty has been one of the main factors that drive a woman to prostitution. This happens when they were at the edge, burdened by the problem of making the ends meet. Poverty is evident in the society not only today but even in the classical times. People really have to work their bodies out in order to earn money so that they will have food on their plates. A person owning a piece of land and a small vegetable plot is lucky if he’ll be able to feed his family three meals a day. What about those who doesn’t own anything? How will they be able to support themselves if they don’t have a source of income to be able to buy the foods for their everyday life? Will they choose to live a life of a thief and be contended with taking away what they don’t own? But considering that their body could be used in order to earn money, would they still resort to a life of crime? These questions are the ones at play when we talk about justifying prostitution as a profession, a career where you earn a living. Morality and Prostitution There are two opposing ideas when it comes to the concept of morality. The first can be classified as the moralist perspective, when the society associates shame and disgust with this act. They consider the fundamental ideas of a society, wherein sex is should be between two persons that are married, and that it should elicit a feeling of love. Another point of view is the libertarian, wherein prostitution is not associated with morality. It is considered as a willing buyer-willing seller interaction, wherein there I something between two people, and they both consent to it. It is a crime without a victim, if ever the law criminalizes it. Obligations and Prostitution People have the obligation to guard the people’s safety and welfare. This means that they are concerned with the wellness of every member of the society that’s why they wouldn’t permit anything that could be negative be associated with the people and the society. They are held accountable for any of the acts that could be very detrimental to the society, and some would say that these factors include prostitution. That is why there are those who would rather suppress prostitution than permit it, even though there are other issues with the people, like poverty and illiteracy. The people’s obligation is to watch the safety and well being of the society that is why prostitution should be removed. But this takes into consideration the wellness of those who rely solely in prostitution in order to support their lives. If we take away or criminalize prostitution, what would just happen to those who are relying on what they earn in order to live, or even to support a large family. Consequences Prostitution entails a great deal of consequences, starting with the people who are involved with this concern and also their family. Prostitution delineates the person from others as something â€Å"dirty,† or sinful at that. Because of this, a person’s (especially women’s) way of life can be affected. The people may have a different outlook when they came to know you better, but that is not readily accepted by the society. Homosexuality The word homosexual is used to describe the sexual orientation of men and women who find their primary emotional and sexual fulfillment with people of the same sex (Davies Janosik, 1991). Homosexuality is only an aspect of personality, as is heterosexuality. According to Davies Janosik (1991), identifying people solely by their choice of sex partners tends to belittle them; it conveys the impression that homosexuals’ only interest is in sex. They added that other aspects of an individual’s personality tend to be ignored when sexual labels are applied, so such labels should be used carefully and with the understanding that the only basic difference between heterosexual and homosexual is in their preference of sexual partners. According to Davies Janosik (1991), â€Å"our culture’s negative attitude toward homosexuality has been strongly influenced by religious teachings that hold homosexuality to be sinful and by psychoanalytical theory, which has traditionally held that homosexuality is an emotional disorder caused by psychosexual development†. Most of the people have their own religions and because of this almost everyone views homosexuality as negative and is linked to committing a sin. As Davies Janosik quoted, â€Å"homosexuality can be attributed to an unresolved masochistic attachment to the pre-oedipal mother, a distant relationship with the father, a defense against castration anxiety, or immature ego. The Origins of Sexual Orientation Diversity According to Money et. al (2005), one of the prevailing questions raised regarding sexual orientation centers on its origin or cause; questions about the causes of sexual orientation are typically concerned with the origins of homosexuality and bisexuality. Because heterosexuality is considered normative and natural causes of heterosexuality are rarely considered. Much of the biomedical and psychological research on sexual orientation attempts to identify one or more causes of sexual orientation diversity. The driving question behind this research is, is sexual orientation inborn? Or is it learned or acquired from environmental influences? While a number of factors have been correlated with sexual orientation, including genetic factors, gender role behavior in childhood, and fraternal birth order, there is no single theory that can explain diversity in sexual orientation (qtd.in Money et. al, 2005). Reference: Ruggiero, Vincent. Thinking Critically About Ethical Issues. Sixth Edition ed. New York, NY: McGraw-Hill Humanities/Social Sciences/Languages, 2003. Blasius, M. Phelan, S. A. (1997). We are Everywhere: A Historical Sourcebook of Gay and Lesbian Politics. New York: Routledge. Davies, J. L. Janosik, E. H. (1991). Mental Health and Psychiatric Nursing: A Caring Approach. New York: Jones Bartlett Publishers. Glesne, D. N. (2005). Understanding Homosexuality: Perspective for the Living Church. New York: Kirk House Publishers. Koertge, N. (1981). The Nature and Causes of Homosexuality: A Philosophic and Scientific Inquiry. New York: Haworth Press. Money, L. A. , Knox, D. Schacht, C. (2005). Understanding Social Problems. New York: Thomson Wadsworth. Stewart, C. (2003). Gay and Lesbian Issues: A Reference Handbook. New York: ABC CLIO. Winer, J. A. (2006). The Annual of Psychoanalysis: Rethinking Psychoanalysis and Homosexuality V. 30. New York: Routledge. Brayton, Ed. Olson and the Meaning of Liberty. 2006. April 2008. http://positiveliberty. com/2006/07/olson-and-the-meaning-of-liberty. html. Derounian-Stodola, Kathryn Zabelle. Womens Indian Captivity Narratives. Penguin Group USA, 1998. Giollamoir, Oisin Mac. Liberty. 2005. April 2008. http://struggle. ws/wsm/ws/2005/85/liberty. html. Roberts, Dorothy. Race, Reproduction, and the Meaning of Liberty: Building a Social Justice Vision of Reproductive Freedom. 2001. April 2008. http://www. othmerinstitute. org/reports/report1. html.

Defining Globalization In An Operational Way Politics Essay

Defining Globalization In An Operational Way Politics Essay It is often very difficult to trace the origin of concepts and ideas in social sciences because the concepts, theories and ideas are the products of collective activities. Therefore, it would be very difficult to identify the first use of term globalization while according to Malcolm Walters, the author of book Globalization, Roland Robertson was the early user of this term (Walters, 1995)  [1]  . Apart from the fact, who has used this term for the first time, at the emergence of twenty first century globalization in the form of concept, and slogan is used frequently as compared to any other term. In Singapore, almost everything has significance with globalization from the inflow of foreign capital, technology, workers, music, movies, culture etc. Some people consider the globalization as a train with no brakes crushing everything coming in its way and some people consider it as a benefit to get on the train towards economic growth and modernization. Concept of Globalization According to the meanings in the Oxford Dictionary, the term glocal and the noun glocalization are created by contracting both global and local together so as to make a blend (Robertson, 1995, p. 28)  [2]  . The term was transformed on Japanese word dochakuka which basically meant to adapt the farming tactics depending on the local condition of individual. Within a business world, the concept was adopted so as to refer to global localization and the idea and term of globalization originally comes from Japan (Robertson, 1995, p. 28)  [3]  . However, the term glocalization was frequently used since late eighties, there were various relevant terms existed that were used by social scientists and are still continued to use. It was claimed by various sociologists that subjects and areas like sociology and political sciences were the products of western social experiences when such fields and areas were transported to non western or non European contexts there was a need for indigen ization. The idea of indigenization created a debate among scientists because it raises basic questions regarding the application of these concepts and ideas. One of the basic concerns of globalization is that it opens the doors of doubts regarding the originality of cultures. In longer term perspectives of globalization, the locality and local are considered to be the outcomes of globalization as it is difficult to find any culture that can be viewed as isolated from the procedures of globalization (Khondker, 2004, pp. 1-9)  [4]  . The influence of globalization on culture depends on the consideration of individual about the local cultures to be protected from the external influences or the creation of new cultural activities results from the mixing of ideas and concepts from various cultures. In fact there are some cultures as discussed above that are isolated and cultural interaction though relations of trade have occurred for thousands of years. Therefore, it can be observed that the values are key to assessing the influence of globalization on the individuals lives around the globe. At the instance, it is viable to spread the concept of globalization in such a way that the conflict between various values is highlighted as they play their role in specific circumstances. Hence, the McDonaldization or Americanization of the world presents the procedure of globalization that is driven by the consumer culture of America rolling over other various cultures (Rothenberg, 2003)  [5]  . Economic Phenomena and Globalization While the US Senate pushes a bill to complete a 700-mile-long fence along the Mexican border, Saudi Arabia is finalizing plans for a similar project: a 560-mile-long, US$12 billion dollar electrified fence along its border with Iraq. Both fences are being built to keep outsiders out, to foil illegal immigrants, refugees, black-market weapons dealers, drug runners, and in Saudi Arabias case, terrorists. The US and Saudi Arabia have decided that the consequences of not building a fence are more costly than ever before, thanks to globalization, which has made borders more penetrable by more people.  [6]   Though globalization and its causes and effects are integral to reporting issues like these, the definition of the word is widely debated. Is it widespread economic liberalization? Are national frontiers simply irrelevant? (Barber, 1996)  [7]  . Scholars have developed many definitions, but no matter which definition is chosen by a journalist for a story, the definition should be operational. It should allow for in-depth qualitative and quantitative analysis, so that causes and effects can be identified. Specifically, in international reporting, an operational definition of globalization should help a journalist answer important questions regarding the role of borders, domains, consciousnesses, actors, and consequences in a story (Holm, 2006).  [8]  Are fences on state borders a sign that globalization is weakening, or an example of globalizations sometimes localizing effects? In other words, the globalization might be considered and classified functionally relevant to the series of economic procedure. Such procedures include the liberalization and deregulation of markets, privatization of assets, retreat of state functions in terms of welfare, diffusion of technology, foreign direct investment etc. The term refers to the spread of sales, production facilities, manufacturing processes all around the world that can reconstitute the international division of labor. The prior decades of globalization has been witnessed by various analysts and often the discussion of globalization has been condensed into the discussion of national income that is measured in terms of growth. Connecting the amalgamation of globalization to the economic procedures, a broad statement made by Robert Z. Lawrence that in general terms the economic amalgamation leads towards the convergence with poor economies growing more fast as compared to the rich economy (Lawrence, 1996)  [9]  . It was also noted by the Harvard economist, Jeffery G. Williamson and the President of the Economic History Association, both argued that the globalization leads towards convergence as observed and evidenced in the historical decades. The essence of the argument was regarding the bottom line in terms of the living standard gap between developed and under developed countries reduces with the passage of time and hence the convergence indicates the destruction of this gap in terms of percentage (Williamson, 1996, p. 278)  [10]  . Globalization in Technological and Social Revolution It is considered to be inconsistent to ignore the more theoretical perspective in terms of the matter evidenced as a decisive shift away from industrial capitalism to a postindustrial conception of economic relations. The identical economic phenomena identified earlier are essential not only due to the reason of their representation of unique cluster of activity but also due to the representation of a new form of activity. This concept suggests an outstanding revolution among the techno-industrial higher classes that are mainly driven by the technological enhancements ultimately rendering the entire globe as a single market. It is a comprehensive vision in terms of globally cohesive production, specialized but interdependent markets of labor, privatization of state assets at faster pace, tangle linkage of technology across the conventional national borders. Furthermore, it is also argued that the development of entire new and recent economy has been evidenced along with a typical shi ft that is influencing the way of considering the wide variety of social and economic relations (Castells, 1991)  [11]  . Jan Aart Scholtes definition of globalization cannot clarify globalizations role in events like these. He sees globalization as a shift in the nature of social space due to the increase of transplanetary connections and the development of supra-territorial connections between people; he does not leave room for globalization as a force that can lead to or bolster the local (Scholte, 2005).  [12]  In addition, the space has been condensed due to the technological development even though the influence of such condensability most probably to enhance the diversity that is captured within the context of glocalization. The general reorganization of economic activities are considered to be in progress at regional levels while on the other hand, the eruption of information or communication and commodities or services flows is emerging across the various cities, regions and nations. The term glocalization is sometimes associated with the globalization as there is some conflict between thes e terms in terms of compliment or confliction. The context that glocalization is the localization of economic and political relation while shifting the authority from national level downward in such a way that heighten the responses of globalization and the conflicts with other perspectives suggesting that both are opposes on the basis of analysis and examination (Higgott Reich, 1997)  [13]  . Globalization, he says, involves reductions of barriers to transworld connections (Scholte, 2005)  [14]  . Boundaries have become defined under different criteria in a transplanetary, supra-territorial world. Not only do states borders mean less, but new types of borders exist; you can be online or offline by the click of a mouse, for example. And technology has also made supra-territoriality a possibility: global telecommunications, the Internet. Quantitatively, he says, there are more transplanetary links, the effects of relations are bigger, and the interactions are happening faster. Transplanetary relations, although they have been going on for centuries, are denser than those of any previous epoch (Scholte, 2005)  [15]  . Qualitatively, it is the supra-territorial nature of social space that is unique to the present era. Supra-territorial relations are those social connections that substantially transcend territorial geography (Scholte, 2005)  [16]  . One major sourc e of conflict lies within the context that globalization reduces the essence of geography while on the other hand, glocalization enhances it as a opposing tendency and geographical association in a sense of region and trading becomes the vital importance. Another source of conflict as suggested by Ruigrok and Rob van Tulder as they defined globalization and glocalization in terms of conflicting strategies of firms. It was also suggested that globalizing firms trail a strategy that endeavors for a worldwide division of labor in the firm while on the other hand, glocalizing firms trail an alternative strategy in which the firms find ways to imitate production within various regions while avoiding the risk associated with the establishment of trade blocs. Hence, glocalizing firms find ways to generate an interfirm division of labor that is geographically concentrated (Ruigrok Tulder, 1995, pp. 46-131)  [17]  . In most general terms, the globalizing firms are labeled multinational corporations as the glocalizing firms find various ways to imitate depending on the regions and with this difference, both behave in different manner. Multinational firms most probably decentralize production and sales but the decision making remain steadily centralized in a categorized structure. In behavioral terms, it is reflected in susceptibility to retain the overwhelming majority of Research Development facilities with specific exceptions at home (Louis W. Pauly, 1997)  [18]  . Moreover, the significance of revolution in the most positive form is reflected in the claims of Peter Schwartz and Peter Leyden that offers the prospects of four decades of prolonged growth and noteworthy transformation which is inspired by the deregulation and technological enhancements in terms of computers, telecom, biotech, nanotech, alternative energy etc (Schwartz Leyden, 1997, p. 116)  [19]  . Scholte points out four other notions of globalization as internationalization, liberalization, universalization, and westernization, and he describes these definitions in contrast to his. If defined as one of these four notions, he contends, the term globalization adds nothing new to previous understandings of the world, whereas his definition adds the concept of supra-territoriality. Scholte warns that the four definitions also hold implicit dangers because of their foci, which are narrow. If people see globalization as only economic liberalization, they will miss other important factors that make up globalization. Such limitations are dangerous according to Scholte because they blind people to the discontinuity in the underlying character of social geography (Scholte, 2005)  [20]  . If we define globalization in one of these four narrow terms, we merely rehash old knowledge and lose a major opportunity to grasp-and act upon-certain key circumstances of our times (Scholte, 2005)  [21]  . But can Scholtes definition and his new contribution, supra-territoriality, help us grasp and act upon key circumstances of our times? In international reporting-which should help us to at least grasp key circumstances-it is, to some extent, helpful to understand globalization as a respatialization of social life based on transplanetary and supra-territorial connectivity. Scholtes definition is especially useful to understand the use of framing in reporting. Globalization and Terrorism In chapter one of Framing Terrorism, Norris, Kern, and Just explain that journalists need frames to convey dominant meanings, to make sense of the facts, to focus the headlines, and to structure the story line (Norris, Montague, Marion, 2003)  [22]  . Frames help organize and prioritize stories in the nebulous realm of all news. Frames are powerful features of reporting, and can influence social space by agenda-setting, cognitive priming, and evaluation, especially when a large portion of the population has access to news and repeatedly experiences the same frame. More quickly and more widely than ever-because of mass-communications and instant transmissions-framing can link vaguely related issues with the magic of one term. 9/11, for example. It has been observed that America is at war with terrorists for over a long period of time. United States has never realized the magnitude of war until September 11, 2001. The conflict had been establishing since 1983 Marine Corps barracks bombings in Lebanon and few analysts predicted the hostility coming their way. A concept has been hypothesized by contemporary theorists renowned as the fourth generational warfare with the blurred distinctions between war and peace, civilian and military, and national and transnational groups. The global war on terrorism fits in such concept with the adversary using asymmetrical capabilities in surprising ways to devastating effects. It has been clearly understood by United States when coupled with the mass destructive weapons (Lind, Nightengale, Schmitt, Sutton, Wilson, October 1989, pp. 22-26)  [23]  . According to Norris, Kern, and Just, the event of 9/11 created a critical culture shift in the predominant news frame used by the American mass media for understanding issues of national security, altering perceptions of risk at home and threats abroad (Norris, Montague, Marion, 2003)  [24]  . Even if the real threat of terrorism did not change, the power of framing has kept the fear of terrorism ripe in the US, through the war on terrorism frame, still used daily in US international reporting. The widespread fear instigated by framing has consequently allowed the US government to restrict some civil liberties through the Patriot Act. Supra-territorial and transplanetary connections in mass communications have allowed the US government, in conjunction with US reporting, to efficiently frame international reporting and quickly assert influence over civil society. The terrorist attack on the Pentagon and the World Trade Centre was considered to be a significant and more deadly demonstration of various trends that have emerged in the period of post-Cold War. It was not considered to be a turning point that signaled and indicated the initiating of new decade of internationalization. It is obvious that terrorists always had evil objectives as demonstrated on September 11, 2001 in terms of capability to carry out deadly determinations anywhere across the entire globe with vast and major influences. Contradicting the capabilities of terrorists requires the re analyzing of strategic backgrounds and the response of United States towards such strategies. Moreover, the United States has been forced to consider the national interests and estimate the strategies of national security as a result of September 11, 2001. The most major trends having devastating influence on the strategic framework and background includes collapse of the bipolar system, reviv al of globalism, and rise of Islamic extremism. The convergence of such trends enabled various nations to experience peace, strength and increasing affluence along with various challenges. The strong repercussion have created against the considerations of various societies in terms of increasing consistency among nations and cultures that challenge to devastate and destroy the traditional local values. The terrorism has been lifted globally due to these trends and due to which it is essential for United States to re-assess the strategy (Terrorism, November 2002)  [25]  . Meanwhile, supra-territorial and transplanetary connections have benefited terrorists, as well. Al Qaeda has used the Internet to spread its message through websites and videos, and global television has allowed an array of terrorist messages to be spread to homes everywhere. Political terrorism is theater, Michael Stohl writes in Demystifying Terrorism, and terrorists are primarily interested in the audience (Stohl, 1988)  [26]  . To spread its messages, to reach audiences, to travel anywhere in a day, to take advantage of the fact that people travel en masse, to develop financial portfolios and make money through the global black-market drug and weapons rings, terrorists have relied on the density of transplanetary and supra-territorial nature of todays globalized space. But do terrorists do what they do just because that can? What are their motives? Are they just madmen? How do terrorists in Afghanistan differ from terrorists in Indonesia or India? What regions are especially conscious of terror-related problems? Why does Saudi Arabia think a fence can keep terrorists out? What are the consequences of not answering these questions? In international reporting, an understanding of Scholtes definition can help identify a storys potential frames (9/11, the War on Terror) and can even describe why some things are able to happen (terrorists are able to have a more wide-spread effect on the global stage). But in international reporting, Scholtes broad definition can only answer a slice of specific questions. It does not lead a journalist to answer important questions regarding the role of borders, domains, consciousness, actors, and consequences in a story. Contradictions and Uncertainties of Globalization Borders, in Scholtes definition, are broken down in the process of globalization, just as all barriers are reduced, and this result in more transworld social contacts (Scholte, 2005)  [27]  . With globalization, he says, people become more able-physically, legally, linguistically, culturally and psychologically-to engage with each other wherever on planet Earth they might be (Scholte, 2005)  [28]  . Besides the fact that he remains unclear about how these barriers break down, an increasing ability to engage with each other would not necessarily lead to further globality. As drug-runners and migrants have greater cross-border mobility thanks to quick transport and communications, more are crossing the US border with Mexico; in response, the US builds a fence, a literal enforcement of its traditional borders. And Saudi Arabias most recent answer to terrorism is the same: enforce traditional borders. Globalization actually links the people all around the world as a result of which new commonalities emerges into experiences with their differentiating and producing new inequalities. Similarly, when it connects the isolated regions to global network parts of the world, it ignores other regions. The events reveal the contradictions and conflicts at the core of globalization and the technologies of information, communication, and transportation facilitating the globalization can be used to damage it, and generating instruments of devastation along with the production (Kellner, 2002, pp. 285-305)  [29]  . Consequently, it has been argued that in order to theorize globalization properly it is essential to conceptualize the various contradictions that are generated by the combination of globalization of technological revolution and restructuring of capital, as a result of which conflicts are generated between capitalism and democracy. In the global economy, globalization involves the production of logic of capital with the spread of democracy in information, finance, investing and dispersal of technology. Thus, globalization is a mixture of capitalism and democracy in which the logic of capital and market system enter more fields of global life in terms of democracy spreads, more political areas and spaces of daily life are opposed by democratic demands and forces. It is observed that sometimes globalization promote democracy and sometimes it constrains it by either equating capitalism and democracy, or in a problematic manner (Friedman, 1999)  [30]  . Assessing of Matter At international level, developing and developed countries have differentiating concerns on wide basis. In developing countries, the importance is on development at any cost by indicating that the developed countries industrialized at time when there was no repute for environmental concerns and labor standards were also offensive. All such things were maintained by developing countries in order to receive assistance as little opportunities and chances were available but were needed to develop in any way. Moreover, developing countries have asked international community to postpone or cancel their astounding debt. Such countries are basically compelled to repay the loans that were taken by previous dictatorial regimes or suggested by the donors to finance development schemes (Chapter 11 Globalization)  [31]  . Additionally, if the world is becoming respacialized according to transplanetary and supra-territorial connections, is any compression of social space equally important among all domains? An African-American crude-oil trader with the Internet has more global impact than his familys remote Ugandan village with an Internet connection. But which domains of social space are more affected by respacialization, and compared to what? Is the crude-oil trader any more effective with blue-tooth technology, than he had been with wired technology? Is the village able to use their Internet connection in a way that will change their lives? Scholtes definition does not leave room for economies of scale or the ingrained character of traditional life in parts of the world. Traditional life and identities establish regional consciousnesses that determine agendas. How does a respacialization of social life change consciousnesses? The EU exists, and Europe has asserted itself as a unified economic power. Has this changed the way Germans think of themselves? How has it changed the German agenda? Scholtes definition doesnt consider the subtle interplay of identities as important in forming policies, whether the world experiences more connectivity or not. Just as domains are not equally important, neither are actors. On whom should international reports focus? Scholtes definition gives us no clues: who are those responsible for the respacialization of social life? Does it matter? And who are affected? Certainly not everyone, and certainly not in the same ways. Scholte admits this: the trend has not touched all of humanity to the same extent (Scholte, 2005)  [32]  . But how can this be measured based on Scholtes definition? This most important part of globalization, Scholte only touches upon. He writes, The growth of transplanetary and supra-territorial connections empowers some people and disempowers others (Scholte, 2005)  [33]  . If globalization creates inequalities, how great are these inequalities? Can we do anything about them? How can journalists begin to discuss them in a story? Scholtes definition leaves many questions unanswered, though these are what build stories. Other, more operational definitions of globalization have been developed and used by journalists and social scientists, on which journalists depend for measures of their subjects, audience, and their own effects. In Hans-Henrik Holms The Effect of Globalization on Media Structures and Norms, for example, this definition of globalization was used: the intensification of economic, political, social and cultural relations across borders (Holm H.-H. , 2001)  [34]  . Although it is not a universally accepted definition, the definition focuses on structural and technological elements and so can serve as a crucible, leading to new developments and insights. By including economic integration in the definition, Holm can deduce that globalization has had an effect on Danish media. One of many examples: Internationalization has pushed the media business towards larger and larger units (Holm H.-H. , 20 01)  [35]  . Holm could maneuver between qualitative and quantitative analysis and come to specific conclusions about how globalization has affected editorial choice in Danish media. In other studies, globalization as a term is more useful if it is not defined by the study. In Andreas Schucks study of vote choice in the Dutch EU constitution referendum, participants were asked their opinion of globalization, among other factors. This part of the study tried to find how some factors affected vote intention before the start of the campaign, and results indicated that people who had a fear of globalization were more likely to intend to vote no. (Schuck, September 2006)  [36]  According to Schuck, this is one of the first studies of its kind to take participants views of globalization into account, even though the term was undefined by the study (Schuk, September 2006)  [37]  . The participants relied on their own understanding of the term, however foggy. Requiring that participants defined globalization in Scholtes terms would have been counterproductive, not only because it would have been time-consuming to explain Scholtes definition. Even if the participa nts learned and understood the concept according to Scholte (or anyone else), the study then would not have revealed how public perceptions of globalization affects voters decisions. Conclusion Ultimately, globalization is not only a condition, but it is also a tool. By using the word in clearly decided ways-defining it or leaving it to subjects in a study or interview-globalization can lead journalists to understand and tell their stories more effectively. But globalization should not be over-estimated, as Holm points out in his study. When globalization is clearly defined, it is often found that the local, the traditional, is still important. One of his conclusions, in fact, is that classical news criteria are still the best predictors of what news will be chosen and used(Holm, 2006)  [38]  . And as the case

Analysis of Microfinance Lending and Credit Assessment Methodology

Analysis of Microfinance Lending and Credit Assessment Methodology Microfinance Institutions (MFIs) core activities are driven by a social mission through provision of full range of banking needs to poor people for productive purposes, thereby contributing to the developmentl objective of poverty reduction. MFIs products and services includes micro-credit, micro-savings, micro-insurance and also remittances. Microcredit program is providing financial capital to the poor household in order to engage them in income generating activities for alleviating poverty mostly to finance small businesses agricultural loans. Typically this type of lending is not secured by any collateral but granted based on the clients ability to generate the necessary financial means for repayment based on his or her business activities. Most of the terms and conditions for microcredit loans are flexible and easy to understand. However, there is no standard lending and credit assessment methodology employed by MFIs. We are motivated to explore and document this research gap. 1.2 The Innovation and Development of Microfinance Industry in Malaysia The provision of microcredit is nothing new in Malaysia. Poverty eradication programs involve provision of credit at subsidised rate to the poor has been around since 1970s after formation of the New Economic Policy (NEP) that was instituted in 1970. The earlier micro credit program was mainly carried out by credit unions, co-operatives, specialised credit institutions and NGOs. The provision of small financing designated mostly to finance micro enterprises, agriculture sector for poverty reduction and to improve income of the Bumiputera. The legislation for microfinance regulation in Malaysia includes, Moneylender Act 2002, Banking and Financial Institution Act 1989, Development Financial Institution Act 2002, and Cooperatives Societies Act 1993, (Zakiah, 2004). The Microfinance business models are based on mass market, cooperatives, monoline and distributor network (BNM, 2010). Majlis Amamah Rakyat (MARA), a council of trust to the Bumiputera and Credit Guarantee Corporation (CGC) are some of the pioneers to introduce micro credit to micro enterprises. The rural credit institutions comprising of Agriculture Bank of Malaysia (Agrobank), Farmers Organization Authority (LLP), Federal Land Development Authority (FELDA), Rubber Industry Smallholders Development Authority (RISDA) and other agro-based Co-operative Societies provide micro credit for the agriculture sectors. There are also a number of non-governmental organizations (NGOs) that engage in micro credit provision (Kasim and Jayasooria, 1993). These include Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM) and Sabah Credit Corporation (SCC) in Sabah, Koperasi Kredit Rakyat (KKR) in Selangor. Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) is a government agency micro credit provider. While, Malaysian Islamic Economic Development Foundation (YaPEIM), a cooperatives institution providing Islamic microcre dit program based on al-rahnu concept in Malaysia. Prior to 2003, Commercial banks involvement in microfinance program are just limited to extending lines of credit to AIM, and as a mediator for schemes such as the loan fund for hawkers and petty traders operated by the Credit Guarantee Corporation (CGC). In May 2003, the government launched a Micro Credit Scheme, particularly stimulating agricultural production activities as well as expanding small and medium enterprise activities. Two banking institutions namely Agrobank and Bank Simpanan Nasional (BSN), and AIM have been given the responsibility to carry out the scheme. The scheme is collateral free, and borrowers are eligible for a maximum loan of up to RM20,000 with interest rates charged at 4% per annum on reducing balance. The government acknowledged that development of the microfinance industry is crucial in promoting greater financial inclusion, given that almost 80 percent of the SMEs in Malaysia are micro enterprises (BNM, 2006). Thus, in August 2006, the National SME Development Council (NSDC) approved a comprehensive microfinance institutional framework proposed by BNM, comprising banking institutions, Development Finance Institutions (DFIs) and credit cooperatives to develop a sustainable microfinance industry. This commercially-driven microfinance industry will complement the existing Government-sponsored microfinance programmes. This is important to ensure that micro enterprises have adequate and continuous access to financing. Following this initiative, 10 local banks are now offering microfinance products providing a channel for micro enterprises to obtain financing from the formal financial systems. BSN was mandated to provide microfinance, while Bank Rakyat would provide microfinance to members of cooperatives and Agrobank would continue to provide microfinance to micro enterprises in the agriculture and agro-based sector. Banking institutions with their extensive nationwide network of branches would ensure wider outreach of microfinance. In addition, BNM proposed the establishment of the Malaysia Cooperative Societies Commission to strengthen the role of credit cooperatives in providing credit to micro enterprises. The new comprehensive microfinance indusry framework in Malaysia is as isllustrated in Table 1 below. Table 1: The Microfinance Institutions (MFIs) in Malaysia Non-Bank MFIs Bank MFIs Amanah Ikhtiar Malaysia (AIM) Yayasan Usaha Maju (YUM) Koperasi Kredit Rakyat (KKR) Kooperasi Kredit Pekerja (KKP) Partners in Enterprise Malaysia (PiEM) Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) Council of Trust to Bumiputera (MARA) Malaysian Building Society Berhad (MBSB) Sabah Credit Corporation (SCC) Agrobank Bhd (AgroBank) Bank Kerjasama Rakyat Bhd (Bank Rakyat) Bank Simpanan Nasional (BSN) Alliance Bank Bhd (Alliance Bank) AMBank Bhd (AM Bank) CIMB Bank Bhd (CIMB) EONCAP Islamic Bank Bhd (EON Bank) Public Bank Bhd (PBB) United Overseas Bank Bhd (UOB) Credit Guarantee Corporation Bhd (CGC) Source: adapted from Jasman et. al., (2010) These financial institutions have adopted different business models and strategies that leverage on the institutional strengths and niches to supports the credit needs of micro enterprises. A number of financial institutions have adopted a mass market model whereby the financial institution provides micro credit products through its existing branch network. Others, like Bank Rakyat, have adopted a cooperative model which provides microfi nance to its members. Some have employed the distributor network model, which leverages on the distributive capabilities of strategic business partners. Another is the monoline model with a dedicated microfinance operation, formed with its own distinct branding and processes designed to uniquely appeal to micro enterprises. Table 2 : Comparative Analysis of Non-Bank Microcredit Programs in Malaysia Category Non-Government Organization (NGOs) Government Agency Coopeatives Institution AIM YUM TEKUN MARA SCC YaPEIM Target Group Low income community Bumiputra micro entrepreneurs Bumiputra mincro entrepreneurs Agroculture based entrepreneurs Pretty traders Gold financing Programe Name Ikhtiar Microcredit General 1 2 and Group Fund Loan Tekun Microcredit Business Financing Community Loan Scheme Al-Rahnu Micro Credit Age Limit 18 years above Women 18 to 55 years 18 60 years 21 60 years Loan Amount Min : Nil Max : RM20,000 Min : RM100 Max : RM20,000 Min : Nil Max : RM50,000 Min : 1,000 Max : RM10,000 Min : 1,000 Max : RM10,000 Up to RM25,000 Loan Period 6 months to 3 years 6 months to 5 years 6 months to 5 years Up to 4 years Up to 3 years Processing Period 21 days N/a 35 days 11 days N/a Repayment Period Weekly Daily, Monthly Monthly Monthly Monthly Monthly Interest Rate / Charge 10%p.a 4% 11%p.a 5% 6%p.a 1.25%p.m 10%p.a 0.1% 0.75% Program Supports Insurance Business Training Business Training, Compulsory Deposits Business training Compulsory savings Advisory Business Matching loan scheme for group of 5 or 6 individuals. Source : UNDP(2008), and Respective Institutions websites. Note : No published data available for KKR, KKP and PiEM microfiance program details. Table 3 : Comparative Analysis of Banks Financial Institutions Microcredit Programs in Malaysia Category Banking Instititions (BIs) Development Financial Institutions (DFIs) Institution ABB AMBank CIMB EONCAPi PBB UOB CGC Agrobank BSN Bank Rakyat Program Name Personal Financing AmMikro Cash Express Personal Financing PB Micro Finance EasiCash DAGS Modal Usahawan 1 BSN Teman Niaga Mikro-i Target Group Micro enterprises Micro enterprises Micro enterprises Micro enterprises Micro enterprises Micro enterprises SMEs Micro enterprises Micro enterprises Micro enterprises Age Limit 25 60 years 18 60 years 21 60 years Retired civil servants 25 60 years 21 55 years 21 60 years 21 60 years 18 65 years Loan Amount RM2,000 RM50,000 RM3,000 RM50,000 RM3,000 RM50,000 RM5,000 RM50,000 RM3,000 RM50,000 RM5,000 RM50,000 RM50,000 RM3.0M RM1,000 RM50,000 RM5,000 RM50,000 RM1,000 RM50,000 Loan Period 6 months 5 years 1 5 years 6 months 5 years 3 15 years 1 5 years 2 5 years 3 months 5 years 1 5 years 1 months 5 years Processing Period 2 days 5 days 2 days 5 days 6 days 7 days 4 days 6 days 10 days Repayment Period Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Interest Rate / Charge 5.05%p.a 2.5%p.m 2% 3%p.m 2% 3%p.m 0.9%p.m 0.5% 3.5%p.a 4%p.a 4%p.a 4%p.a Source : Comparative table on microfinanc product features (BNM, 2010) and Respective Insritutions website 1.3 Problem Statements: Research issues in Microcredit Lending combines the science of obtaining and analysing the facts of a loan request and the art of making judgements about that information, the feasibility of the business, and the credibility of the borrower. Experienced lenders focus on the key business issues quickly, determine what information is needed, and then make prompt decisions based on that information. Developing sound credit judgement takes time and experience; development lending to small businesses by the book is difficult and rarely results in a quality loan portfolio. There is no formula for determining creditworthiness. The loan officer must assemble and evaluate information and then determine what the entire picture looks like. Traditional bank lenders refer to the Four Cs of lending: Credit, Capacity, Collateral, and Character. Development lending uses the same rigorous credit assessment principles, but applies them to situations in which the lender must rely on borrower character and cash flow from the business. The loan application and the first meeting with the borrower are the first screen of whether a business is a potential candidate for microcredit. Beginning with the first meeting, the lender must evaluate the quality of the business deal, the fit with the borrowers experience and capacity, and whether the financing amount and structure is appropriate. 1.4 Research Questions/Objectives The questions/objectives of this study are: RQ1: To investigate the microcredit lending methodology of commercial-driven and government funded MFIs RQ2: To investigate the credit assessment methodology of commercial-driven and government funded MFIs RQ3: Is there any different between lending and credit assessment methodology of commercial-driven and government funded MFIs? 1.5 Significance of this study This paper aim to understand, comparatively analyze and document the MFIs lending and credit application assessment methodology of both the commercial-driven and government-funded MFIs microcredit program. This study will contribute to enrich the existing literature related to microcredit and microenterprises financing with specific reference to Malaysia environment. 1.6 Limitations Survey involving only selected active MFIs based in west Malaysia. This paper only focused on microcredit lending and credit assessment methodology for micro enterprises only. 1.7 Organization of Report This paper is organized into four parts, after the introduction, part two contains the literature review related to microfinance lending and credit assessment methodology for micro enterprises. Part three describing data collection and analysis methodology and the last part contains concluding remarks and recommendations. LITERATURE REVIEW 2.1 Review of Microfinance Delivery Methodologies (REFINE) The Review of Rural Finance Innovations in Asia-Pacific Region have identified and documented the microfinance methodologies used in Asia. These methodologies include: Grameen Bank; Association for Social Advancement (ASA); SHG Linkage Banking ; Unit Desas (Village Banks) of the Bank Rakyat Indonesia (BRI); and Mixed model and mixed method (Source:xxx) Grameen Bank model The Grameen model is the most popular and widely replicated model in Asia. It consistently achieves outreach both in depth and magnitude and high repayment rates (98 per cent). The early replicators as early as 1989 were India, Malaysia and the Philippines; others include China and Indonesia. The model focuses on: poor peoples access to credit, with women as a priority; small loans repaid in weekly instalments; eligibility for higher loan amount for succeeding loans; loans for income-generating activities; financing activities chosen by borrowers themselves; and forming solidarity groups. Over time, the replicators modified the model to suit local contexts. ASA model ASA is another model from Bangladesh. In the 1990s, ASA gained recognition for achieving a repayment rate of 99 per cent. In Asia, the model has been replicated in India, Indonesia and the Philippines. While loan products are the same as with the Grameen model, the difference is that it does not impose the group co-liability. The model also requires that the borrowers form groups of 25 to 30 members. The model uses a unique standardized branch approach which enables cost savings and efficiency in service delivery the branch has no need for additional personnel for cashier and accountant, enabling it to fully cover costs even after 9 to12 months. SHG Linkage Banking model The SHG Linkage Banking model is an outcome of the Regional Linkage Banking Programme which is an initiative supported by APRACA and Deutsche Gesellschaft fà ¼r Technische Zusammenarbeit (GTZ) in the early 1990s. Using this model, NABARD of India achieved the largest scale and outreach in the countries supported by this programme. The approach is linking SHGs with banking institutions for loan and deposit services. Most SHGs are formed by NGOs or government agencies with financial support from NABARD. One difference between this model and the Grameen and ASA models is that before obtaining their first loan, the members of SHGs are required to mobilize savings first. They usually start at a 1:1 or 2:1 loan- to-savings ratio, increasing to 4:1 in succeeding loan cycles. Bank loans are wholesaled to SHGs, which in turn lend to individual members following terms and policies set by the SHGs themselves. The SHG is the dominant microfinance methodology in India (Sinha, 2003). Unit Desas model Unit Desas are village banks of the Bank Rakyat Indonesia (BRI). The bank provides loans for any income-generating activity: from 3 to 24 months for working capital and 36 months for investment capital. The reported repayment rate is 99 per cent. Charging market interest rates enabled the unit banks to be profitable and operationally self-sustainable units. Mixed model and mixed method As a result of cross-dissemination of various methodologies and experimentation by microfinance institutions, there is an emerging trend of adopting a mixed model and a mixed method. The former combines features of two or more models under one approach. The latter uses different methodologies for different client segments. For example, in the Philippines, microfinance institutions use an approach called GraSa which identifies clients and forms groups using the Grameen model while removing the co-liability requirement, which is a feature of the ASA model. Overall, the common thread among the best practices is the shift from mere credit to providing broader and sustainable financial services. While there are variations, there is an increasing emphasis on attaining a sustainable fund base, cost recovery of invested funds and efficient and responsive financial services to rural clients. 2.2 Traditional Approach of Creditworthiness Assessment for Small Borrowers An important role of credit markets is to screen borrowers and allocate credit efficiently based on their creditworthiness. Traditionally, banks have played a dominant role in doing so. One of the reasons posited for this has been that banks have the financial expertise to effectively intermediate capital (Diamond, 1994). The theoretical and empirical literature has argued that banks do very little screening for small borrowers and rely excessively on collateral. In addition, recent theoretical literature has also highlighted that the screening role may be better performed by markets with many participants, as opposed to banks (Boot and Thakor, 1997). Alternative peer-to-peer credit markets have recently started gaining popularity in lending to smaller borrowers such as individuals and small firms, both in developed and developing economies (Rajkamal I., et. al., 2009) While prior research has provided substantial evidence of elevated default risk among lower-income, minority, and less creditworthy borrowers (see, for example, Avery et al., 1996, Deng, Quigley, and Van Order, 1996, Berkovec et al., 1998, Pennington-Cross and Nichols, 2000), recent studies also suggest offsets to those risks via the slower prepayment speeds of targeted borrower groups (see, for example, Kelly, 1995, Van Order and Zorn, 2002, Archer, Ling, and McGill, 2002). Table 1: Summary of Criteria considered important by Bankers in Assessing Small Business Borrower Loan Applications Assessment Criteria Author(s)/Year Country Owners Personal Charatcteristics Business Ability (Fertuck, 1982) Honesty (Fertuck, 1982) Trading Experience (Deakins Hussain, 1994; Fletcher, 1995) Managerial Experience (Jones, 1982; Memon, 1984) Credit History (Jones, 1982; Memon, 1984) Quality of Management (Rosli, 1995) Malaysia Leverage and Security Position Gearing (Deakins Hussain, 1994; Fletcher, 1995; Berry, Grant and Jarvis, 2001; Binks and Ennew, 1996) Collateral (Ulrich Arlow, 1981) Guarantee (Deakins Hussain, 1994; Fletcher, 1995) Risk of Default (Rosli, 1995) Malaysia Owners and Business Financials Initial Capial (Jones, 1982; Memon, 1984) Financial Strengths (Fertuck, 1982) Bank Lending Policies Bank Policy (Berger and Udell, 2002) Relationship (Berger and Udell, 2002) Summary Table 2: Negative Factors Resulting in Rejection of Small Business Loans Application Assessment Criteria Author(s)/Year Country Owners Personal Charatcteristics Lack of Competecnce (Buttner Rosen, 1992; Desmond, 1991) Lack of Management Skills (Buttner Rosen, 1992) Lack of Entrepreneurial Skills Experience (Buttner Rosen, 1992; Desmond, 1991) Owners and Business Financials Poor Cash Flows (Struck Glassman, 1983) Poor Earnings Records (Fertuck, 1982) Insufficient Turnover (Read, 1998) Poor Credit Ratings Leverage Positions Poor Collateral (Fertuck, 1982) Insufficient Owners Equity (Struck Glassman, 1983) Past Due in Credit (Struck Glassman, 1983) Excessive Loan Requests (Desmond, 1991) Gearing too high (Desmond, 1991) Business Plans Insufficient Market Research (Buttner Rosen, 1992) Incomplete Business Plans (Buttner Rosen, 1992) Other Factors Bad Timing (Buttner Rosen, 1992) Summary 2.3 Innovation in Small Business Lending: The Art and Science of Microcredit The history of microcredit program can be traced back since 18th century where Credit Coperatives and charities provided small entrepreneurs in Europe (Hollis et. al., 1998). According to Hollis et. Al., a notable microcredit program in europe includes a fund created by Jonathan Swift, a novelist and the Irish Reproductive Loan Fund Institution. In developing economies, it is argued that among others absence of access to credit is presumed to be the cause for the failure of the poor to come out of poverty. Meeting the gap between demand and supply of credit in the formal financial institutions frontier has been challenging (Von Pischke, 1991). In fact, the gap is not aroused merely because of shortage of loan-able fund to the poor rather it arise because it is costly for the formal financial institutions to lend to the poor. Lending to the poor involves high transaction cost and risks associated with information asymmetries and moral hazards (Stiglitz and Weiss, 1981). Nevertheless, in several developing economies governments have intervened, through introduction of microfinance institutions to minimize the gap then allow the poor access credits through provision of so called microcredit. Microcredit is defined simply as small-scale credit, most typically for less-advantaged individuals. In practice, microcredit is most frequently used to refer to credit provided specifically for the purpose of starting a small business and there is other microcredit products catering for other consumption needs of poor individual. The various forms of micro-credit systems have proven successful in delivering credit to the poor and ensuring high rate of repayment when compared to the formal channels. Because micro-credit systems have been effective in reaching the poor, many developing countries have set up special financial institutions that either directly provide credit to SHGs and the facilitating NGOs or help refinance commercial and cooperative banks that provide the credit. These national micro-finance institutions are in turn funded by international agencies as well as the national government (source xxxx) Microfinance Lending Methodology Micro-lending methodology in practice is appearently different to mainstream banking. The distinguish characteristics are as follows; (i) non traditional creditworthiness assessment criteria; (ii) non traditional collateral accepted; (iii) loan officers are not necessarily bankers; (iv) credit is provided along with business support services. Other distinguishing features between them are as tabulated below; Table 3: Comparison of Micro-finance and Formal Banking Lending to Micro Enterprises Characteristics Microfinance Formal Banking Size of loan Small/tiny size of credit Medium/large credit Duration of loan Short duration Medium and long Thrift Emphasis on thrift as well as loans Focus on loan only Screening and Monitoring Group formation and informal methods Formal Procedures Enforcement of Repayments Stepped or sequential loans, Peer pressure and weekly repayments Collateral and legal pressured for repayments Nature of Organization Social organizational form Commercial organization form Motivation Self-help motivated Profit motivated Outreach Access to poor without collateral (all members) Access limited Lending Method Cash-flows based lending Asset-based lending Analysis Field visits Desk Analysis Credit Administration Flexible and personalized Standardized Source: Adapted with midification fromxxx 2.3.2 Microfinance Loan Assessment and Credit Analysis Methodology An important function of credit markets is to screen borrowers and allocate credit efficiently based on borrowers creditworthiness (Iyer, et. al., 2009). The credit analysis is defined as a process of establishing the current creditworthiness of loan applicants and forecasting the trends in its development. Top priority goals and stages in the bank credit analysis are determined. (Feschijan, 2008). The analysis of the creditworthiness involves preliminary study of the factors and prerequisites which can affect adversely the duly repayment of the credit. When analyzing creditworthiness, along with the required prerequisites for creditworthiness it is necessary to carry out a comprehensive study of the factors that determine it. It is believed that creditworthiness depends on several major factors: the borrowers efficiency, his reputation, his capacity for profit making, the value of his assets, the state of the economic situation, his profitability, etc. In order to conduct a thorough study of the above mentioned, it is necessary to use a number of indicators for the credit analysis (Feschijan, 2008). Table 3: Empirical Evidence of Microcredit Repayment Determinants Determinant factors Author(s)/Year Country Regular monitoring, audits, high repayment frequency, having group savings deposits Deininger and Liu (2009) India Close monitoring and close relationshp with borrowers Roslan et. Al. (2007) Malaysia Threats of sanctions, borrower incur less transactions costs Bhatt and Tang (2002) USA Gender of the borrower, type of business activity, amount of loan, repayment period and trainning Rosalan and M. Zaini (2009) Malaysia Joint liability, dinamic and progressive lending, Peer monitoring, social ties and social connections, self-selection, income shocks, social sanction and cooperation, loan size, infrastructure and local economic environment, group rules and regulations, group size, age of the group, assistance offered by bank, gender, local culture, group homogeneity, role of group leader Bakshi (2008) N/a (literature review) Group gender decomposition (group with more females) Anthony and Horne (2003) USA RESEARCH METHODOLOGY Data Specification and Collection Method Target Respondents Target respondents will comprises of the following selected microfinance institutions (MFIs) which constitutes both the non-bank MFIs and bank-MFIs; Category Non-Bank MFIs Bank-MFIs Organization MARA YUM AIM TEKUN SCC BSN Agro Bank Bank Rakyat Target Respondents Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer Credit Manager/Officer No. of Respondents 40 40 40 40 40 40 40 40 Total respondents = 320 A personally administrated survey was employed in this study. Target respondents were comprises of credit managers and officers of the above selected MFIs in west Malaysia. Questionnaire Design Table 3.1: The Structured Questionnaire Design Section Category Remarks Section A Respondent Profile This section is designed to cater information on respondents demographic profile. Section B Lending Methodology This section concentrates on profiling the lending methodology of MFIs Section C Credit Assessment This section is designed to explore microcredit assessment criteria employed by MFIs Data Analysis Methods Descriptive Statistics Analysis Descriptive statistics analysis used to explore the characteristics of the respondents. Factor Analysis Factor analysis use to analyse and determine the significant important factors for microlenders in analysing microenterprises loan applications. Analysis of Variance (ANOVA) ANOVA is used to established statistical significant of differences of lending and credit assessment methodologies between commercially-driven and government-funded MFIs. ANALYSIS AND DISCUSSIONS Descriptive Statistics Analysis Respondent demographic factors Factor Analysis RQ1: To investigate the microcredit lending methodology of commercial-driven and government funded MFIs RQ2: To investigate the credit assessment methodology of commercial-driven and government funded MFIs