The Health and Safety at work Act 1974 Essay Example for Free

The Health and Safety at work Act 1974 Essay All workers have a right to work in places where risks to their health and safety are properly controlled. Health and safety is about stopping you getting hurt at work or ill through work. Your employer is responsible for health and safety, but you must help. What employers must do for you. Decide what could harm you in your job and the precautions to stop it. This is part of risk assessment in any way you can understand, explain how risks will be controlled and tell you who is responsible Consult and work with you and you health and safety representative in protecting everyone from harm and in the workplace Give you the health and safety training you need to do your job free charge. Free of charge, provide you with any equipment and protective clothing you need, and ensure it is properly looked after Provide toilets, washing facilities and drinking water Provide adequate first-aid facilities.

Genetic Algorithm Research Proposal

Genetic Algorithm Research Proposal System Optimization The main concern is to find the optimum value for each design parameter for each prediction period for a total simulation time of 12 hours. The simulation is performed on the selected system based on the optimization timeframe with an acceptable accuracy and the optimization process is applied for a prediction period of one. The value of a single design parameter and internal loads are fixed during a prediction period and may vary from one prediction period to another. Genetic Algorithm Modeling the liquid desiccant system with the CC/DV system is complex task with multi-variables involved, several equations are coupled and indirect relations between different parameters are present. Since several non-linear equations are solved, it is advised to use a revolutionary derivative free optimization tool that follows the direct search technique. The simplest optimization tool that could be used for the proposed case is the genetic algorithm optimization tool because it is derivative free, based on numerical analysis, and is somehow efficient if compared with other derivative based optimization schemes. Moreover, it fetches the global minimum of a specific function. Our choice of using a derivative free algorithm to solve the optimization problem is implemented by the evolutionary genetic algorithm. Genetic algorithms are adaptive methods which may be used to solve search and optimization problems, and are based on the genetic process of biological organisms. Genetic algorithms are growing more and more popular and extending from simple design optimization to online process control. The power of the genetic algorithm arises from its robustness, being acceptably good in finding the near optimum solution and being relatively quick [1]. An efficient optimization technique uses two techniques to find the optimal solution, exploration and exploitation, and this is what genetic algorithm does. The Genetic Algorithm terminology The algorithm starts by seeding a set of trial combinations of the variables to be optimized and calculating the numerical value of the objective function for each combination selected. This set is called the â€Å"Initial Population†. The set of numerical values calculated for the objective function from the first trial, is then evaluated according the â€Å"Fitness Criteria†. The fitness criteria can be defined as the condition for the objective function numerical value to be better convenient than its pears. Based on their fitness, some combinations in the previously seeded set are chosen to be â€Å"Parents†. Parents then undergo either â€Å"Crossover† or â€Å"Mutation† procedure to produce â€Å"Children†. Most fitted parents simply jump to the next generated population without any change; such parents are referred as â€Å"Elite†. The current population is replaced by children from the next population. Elite children are the individuals in the current generation with the best fitness values. These individuals automatically survive to the next generation. Crossover children are created by combining the vectors of a pair of parents. Mutation children are created by introducing random changes, or mutations, to a single parent. The algorithm stops when the â€Å"Tolerance† in the objective function values between two generations is less than a certain set error value, or when the maximum number of â€Å"Generations† is exceeded, or by any other defined â€Å"Stopping Criteria†. For the optimized control strategy used for the chilled ceiling, displacement ventilation system the variables of the chilled ceiling and displacement ventilation are varied; this variation leads to a minimal optimal cost that results in the minimum cost that could be attained in the system. Referring to the system figure and considering the optimal control strategy, the variables that may be used for cost optimization are: The desiccant temperature at the inlet of membrane(). The supply air temperature(). The supply air mass flow rate(). Equation Chapter 6 Section 3Each variable in the optimization routine has a lower and an upper bound. These bounds define the interval where the genetic algorithm searches for the optimal cost and are based on physical considerations. The bounds for the different variables according to ASHRAE’s recommendations are: The supply air temperature is considered to vary between 17 and 23  °C. The supply air mass flow rate is considered to vary between 0.08 and 0.26 kg/s. Optimization Constraints There are several non-linear constraints that are applicable to the system. These constraints are related to thermal comfort issues, condensation inside the room and physical constraints. The constraints may be redefined in the following list The Percent People Dissatisfied inside the occupied zone is less than 10%. This condition is required for the human thermal comfort. The closer the PPD is to zero, it is assumed that the occupants inside the room would be more comfortable noting that the smallest percent people dissatisfaction is 5%. The temperature gradient shall not be greater than 2.5 K/m or 2.5  °C/m. This condition is required so that there would not be any large gradients in the human body. Large gradients cause thermal discomfort for living beings. The stratification height inside the room is greater than 1 m. This condition is required so that the stratified air does not mix with the breathing zone. The relative humidity inside the occupied zone is greater than 56% and less than 76%. The fitness function: To be able to enhance the speed of the genetic algorithm, the electrical cost function and constraints are combined in a single cost function by using penalty functions, thus the fitness cost function may be written as: The coefficients , , , , and in the above function are the weight factors for their related penalty costs. The weight factors values are set according to the system parameter. For the current system,‘s are set to unity. electrical cost The objective function that is to be optimized is the total operational cost of the system; this cost may be divided into: The cost of running the chiller.     Ã‚   The cost of running the pump. The cost of running the fan. Note that in this work the cost is given in units of KW. Chiller Cost The chiller is the main energy consuming component in our system .The chiller cost is expressed in terms of the part load ratio. The part load ratio is defined as the ratio of the current load on the chiller divided by the design load that the chiller could handle. Mathematically, the part load ratio is found from the equation The coefficient of performance of the chiller is correlated to the load equation by using the following correlation: The cost of the chiller is calculated by using the following equation Fan cost The fan cost is directly related to the air mass flow rate by using the following equation: Pump cost The pump cost is related to the pump head, liquid desiccant mass flow rate, and the efficiency of the pump. The power of the pump is evaluated by multiplying the pressure difference by the volumetric flow rate and dividing the result by the pump efficiency; mathematically the pump cost equation may be written as Note that the pump cost is not included in the cost function, since the desiccant mass flow rate is costant. Therefore the total energy consumed can be expressed by the following equation: The Constraints Cost Functions The cost function for the constraints may be written such that they could be incorporated into the online cost function in a simple manner. These constraints are related to their respective threshold values such that when the constraints are violated, the fitness function would have a very large value. For the predicted person dissatisfied, the cost function The relative humidity cost function may be bounded from the upper side by using the relation The stratification height cost is bounded to be larger than 1m, thus the stratification height cost is The temperature gradient is to bounded to be less than 2.5 K/m, thus the temperature gradient cost function may be written as The exponential term helps to penalize the cost function when-ever the thermal comfort level of occupants in the room TH decreases below the minimum set value THmin. This will increase the value of the cost function dramatically and the set of variables at hand is rejected. The integration of the constraint terms within the objective function expression and the use of the exponential form to control the constraints’ cost were implemented by Keblawi et al. [13] and Hammoud et al. [4].

Application Of Islamic Microfinance In Poverty Alleviation Economics Essay

Application Of Islamic Microfinance In Poverty Alleviation Economics Essay Poverty is one of the fundamental problems in developing countries. It is estimated that around 80 percent of the worlds population is living in countries where income distribution gap is widening. Poverty rate is quite high in all Muslim countries except a few countries in Southeast Asia and the Middle East. Poverty levels have also been associated with high inequality alongside low productivity. Half of the Indonesia population (about 129 million) is living below the poverty line of $2 a day. While in South Asia two largest Muslim states Bangladesh and Pakistan alone account for 122 million each living below the poverty line where as 100 million Muslims of India is also living below the poverty line. (Source: Islamic Microfinance Development: Challenges and Initiatives, IRTI website, 2007) Microfinance is a part of financial services which includes not only credit facility but also savings, insurance, and fund transfers to facilitate low-income people. The World Bank estimates that there are over 7,000 microfinance institutions; serving some 16 million poor people in developing countries. The total cash turnover of MFIs world-wide is estimated at $2.5 billion and the potential for new growth is outstanding. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) The Microcredit Summit estimates that $21.6 billion is needed to provide microfinance to 100 million of the worlds poorest families. The Summit planners said it should be possible to raise US$2 billion from borrowers savings alone and the final figure may be even higher. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) Fewer than 10 million out of the 500 million people who run micro and small enterprises have access to financial support for their business and fewer than 2% of the poor people have access to financial services (credit and savings) from sources other than lenders. (Source: MICROFACTS: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) The supporters of microfinance believed that it will help in reducing poverty and the concept became more popular in 1974 when famine struck Bangladesh. At the time, Dr. Muhammad Yunus was a professor of economics at the University of Chittagong. He subsequently started Grameen Bank which has been a wonderful success with more than 90 percent recovery rate. (Source: Short history of Grameen Bank, Grameen Bank website, 2010) Studies have also shown that during an eight year period, among the poorest Bangladesh with no credit service of any type, only 4 % pulled themselves above. But with only individuals and families with credit from Grameen Bank, more than 48% rose above the poverty line. (Source: MICROFACTS: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) In Pakistan there are 25 Microfinance institutions with the total deposit of $52.3 million which covers 1.83 million of population out of total population of 174 million (Fehmeen, 2010). Pakistan is ranked 6th in terms of population with the labor force of 53.78 million as estimated for 2009. (Source: CIA world Fact book, Central Intelligence Agency website, no date) Figure 1: Unmet Demand for Microfinance in Pakistan from 2008-2009 Source: Microfinance Hub Website From the statistical figures of 2008-2009; it can be said that the population below the poverty line is 29,928,000 million which represents 17.2 % of the total population and the unemployed population is 26,448,000 which means 15.2% of the total population; that sums up to 32.4% out of the total population of Pakistan. These people need microfinance support to improve their living standard because the people living below the poverty line are not even able to get basic necessities of life (Fehmeen, 2010). In this regard, the Financial Inclusion Program (FIP) has been implemented by SBP with support of the UK Department for International Development (DFID), which aims to transform the financial market with a clear objective to provide equitable and efficient market-based financial services to the otherwise excluded poor and marginalized population including women and young people. FIP has developed an evidence based policy and a realistic target of reaching out to three million microfinance users by the end of 2010. (Source: Financial Inclusion Program, SBP, no date) Some facts about the outreach of Islamic Microfinance in different countries are mentioned in the Table 1. Region No. of Included Institutions % of Female clients (Avg.) Total no. of Clients Total Outstanding Loan Portfolio (US$) Avg. Loan Balance (US$) Afghanistan 4 22 53,011 10,347,029 162 Bahrain 1 N/A 323 96,565 299 Bangladesh 2 90 111,837 34,490,490 280 Indonesia 105 60 74,698 122,480,000 1,640 Jordon 1 80 1,481 1,619,909 1,094 Lebanon 1 50 26,000 22,500,000 865 Pakistan 1 40 6,069 746,904 123 West Bank and Gaza 1 100 132 145,485 1102 Saudi Arabia 1 86 7,000 586,667 84 Sudan 3 65 9,561 1,891,819 171 Syria 1 45 2,298 1,838,047 800 Yemen 3 58 7,031 840,240 146 Total 63 299,441 197,583,155 564Table 1: Outreach of Islamic Micro Finance by Country Source: CGAP Survey, 2007 Islamic finance is still in its introductory phase, but it has achieved double digit growth both in Pakistan and around the world. Some of the well known Islamic finance instruments are Murabaha (Sale Contract), Musharakah (Equity Participation), Mudarabah (Partnership), Ijarah (Lease Financing), Bay Muajjal (sale on Credit or deferred payment sale), Bay Salam (Deferred Delivery Sale) etc. 1.2 Problem Statement Interest based micro lending carries high interest rates and is impermissible in Islam; hence, this study strives to analyze how the mix of debt and equity based Islamic finance contracts be used in providing Islamic micro financial services in Pakistan which has more than one quarter people living below the poverty line and huge rural population. 1.3 Objectives of the study It will identify and analyze various instruments of Islamic microfinance that can eliminate poverty effectively than conventional micro financing. It will recognize and analyze the mix of debt and equity based Islamic finance contract; used in providing Islamic micro financial services in Pakistan. It will explore the scope of opportunities for Islamic microfinance in Pakistan. It will discover the challenges that Islamic microfinance could face in Pakistan. 1.4 Importance of the study This  study  highlights the importance of Islamic microfinance to help reduce poverty in Pakistan. As the poor are becoming poorer in Pakistan due to rising inflation and very limited sources of employment, this research will discuss how the Islamic microfinance could help in poverty alleviation, equitable redistribution and employment creation. 1.5 Research Methodology This research study will inquire that how far Islamic microfinance would be helpful in reducing poverty in Pakistan. To substantiate the case for microfinance; the study will analyze five major countries where microfinance is prevalent. Panel data on four variables which include per capita income, education which will be measured through literacy rate, poverty measured through percentage of population living below the poverty line and inequality measured through gini co-efficient will be taken from the selected five countries. The period of study will be different for each country starting from when microfinance started in particular countries to the current period. Secondly, the research will identify and analyze the mix of debt and equity based Islamic finance contract which could be used in providing Islamic micro financial services in Pakistan. For this purpose, specific entrepreneurial activities with investment requirements will be identified and then the ideal Islamic mode to be used in specific entrepreneurial activities with particular investment would be recommended. 1.6 Plan of the study This study consists of five phases. Work in each phase would be reported as a separate chapter. The first chapter of study will cover the introduction which includes the background of the study, Problem statement, Objectives of the study, importance of the study and scope of research. The second chapter will cover the literature review of will the academic and practical progress in Microfinance. The third chapter will discuss the research methodology i.e. the various tools and techniques that will be used to conduct research. The fourth chapter will include the data collection and findings obtained from the analysis of the data collected. The fifth chapter will comprise the research conclusion based on the findings. 1.7 Limits of the study This study on application of Islamic microfinance in poverty alleviation would be useful and provide experiential support to future studies on Islamic microfinance in Pakistan. There exist no full fledge Islamic microfinance bank in Pakistan. Hence, the models and instruments discussed have not been put into practice and empirical analysis of performance will be hard to make. CHAPTER 2 LITERATURE REVIEW 2.1 What is Microfinance? According to Abedelhamid 1991 (p. 57-64). Microfinance is a set of financial services which provides loans to clients who are excluded from the traditional financial system on account of no or little collateral. In the third world countries, microfinance has become very popular because inflation tends to be high and volatile; government is often incompetent; and the necessary legal framework for financial services is often missing Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. Microfinance services are provided by three types of sources: Formal institutions, such as rural banks and cooperatives; Semiformal institutions, such as nongovernment organizations; and Informal sources such as money lenders and shopkeepers. Institutional microfinance is defined to include microfinance services provided by both formal and semiformal institutions. Microfinance institutions are defined as institutions whose major business is the provision of microfinance services. (Source: Finance for Poor: Microfinance development Strategy, ADB website, 2000) 2.2 History of Microfinance Microfinance history dates back to the mid of the 18th century when the philosopher Lysander Spooner was doing research on the advantages from small loans to entrepreneurs and farmers as a way to get people out of poverty. The economist Timothy Guinnane at Yale had been doing some research on Friedrich Wilhelm Raiffeisen ´s village bank movement which started in 1864 in Germany and by the start of the year 1901 the bank reached 2 million rural farmers. As per Timothy Guinnane explanation it was proved that microcredit could pass the two tests concerning peoples payback moral and the possibility to provide the financial service to poor people. Today, the expression Microfinance has its roots in the 1970s when the Grameen Bank of Bangladesh was established. At that time a new span of microfinance initiatives introduced many new procedures into the sector. Pioneering enterprises started doing experiments with providing credits to the poor people. Increasingly, it was thought that people could be relied on for repayment of their borrowings and it is feasible to provide financial services to underserved people through market based enterprises without subsidy. In 1974, Shore bank was the first microfinance and community development bank founded in Chicago for the first time in USA. (Source: History of micro finance, Global envision website, 2006) Today the World Bank estimates that more than 16 million people are served by some 7000 microfinance institutions all over the world. CGAP experts suggested that about 500 million families benefits from these small loans making new business possible. (Source: Micro facts: Data Snapshots of Microcredit, Global Development Research Centre website, 2008-2009) 2.3 Present Situation and Growth of Microfinance The year 2008 is considered as the beginning of a challenging period for microfinance in a number of countries. The economic and financial crises that reached MFIs and their clients turned calm waters into rough shores for many institutions in the industry. The year 2009 MIX Global 100 Composite Ranking captures the effects of this changing environment, where global growth rates slowed for the first time in years, and many MFIs faced stagnant or rising costs, and in some in ­stances a slow rise in credit risk. Figure: 3 Growth Pattern of Microfinance in all continents Source: MIX Global website, 2009 The 2009 edition of the MIX Global 100, surveyed 955 institutions from nearly 100 countries as illustrated in Table 2. As a group, surveyed institutions represented nearly 85 percent of the known pool of microfinance borrow ­ers, serving 72 million borrowers with 37 billion USD in loans and holding 22 billion USD in deposits from 67 million microfinance clients (Source: MIX Global website, 2009). Table 2:2009 MIX Global 100 Composite Ranking Countries with Most MFIs in Top 100 Country MFIs in Top 100 All Ranked MFIs India 20 51 Ecuador 9 44 Egypt 6 12 Philippines 6 34 Bangladesh 5 9 Cambodia 5 13 Bolivia 4 22 Bosnia and Herzegovina 4 13 Armenia 3 7 Mexico 3 27 Morocco 3 5 Dominican Republic 2 2 Jordan 2 6 Mongolia 2 4 Nepal 2 16 Peru 2 54 Serbia 2 4 Vietnam 2 5 Source: MIX Global website, 2009 Microfinance is assured as one of the tools that can decrease as well as eradicate poverty. According to Saefullah (2010) numbers of research have been conducted in order to measure the success of microfinance. The stories of Grameen Bank in Bangladesh, Bank Rakyat Indonesia (Indonesian People Bank) in Indonesia, Self-Help Group in India show the extent to which microfinance can eliminate poverty. Obaidullah (2008) has also done research that attempts to identify the glory of microfinance. Table: 3 Poverty Level and Financial Access in Bangladesh, Indonesia and Turkey Source: Islamic Microfinance Development: Challenges and Initiatives, 2008, IRTI, IDB Name of Member Counrty Human Poverty index Rank Income poverty Index Population Below Population in millions No. of poor in millions Financial access percentage (2007) $ 1 a day (%) $ 2 a day (%) Poverty Line Peoples republic of Bangladesh 85 36 82.8 45 147.37 122 32 Republic of Indonesia 41 7.5 52.4 17.8 245.45 128.6 40 Republic of Turkey 21 3.4 18.7 20 70.41 13.2 49 Impact of microfinance in household and community level components According to study of Chowdhury Bhuiya (2004) the wider impacts of BRAC (Bangladesh Rural and Advancement Committee) poverty alleviation program found that there was a positive impact on living standard as the survival rate and schooling of children improved. The Impact of microcredit on borrowers of Grameen Bank by Khandker (2003) illustrate that there was a positive impact on the households poverty reduction that availed the microfinance facility. Latif (2001) in his study on the effects of microcredit on the household saving of Bangladeshi borrowers concluded that saving-income ratio was significantly higher for the customers of microfinance as compared to poor who were not participants of microfinance institutes. Another research conducted by Zaman (2001) on the Impact of microcredit on poverty and vulnerability found that there is positive impact on income and decision making capability of poor using microfinance. Bangladesh Institute of Development Studies (2001) researched on the Impact of microcredit on savings and informal borrowings discussed that microcredit increased savings and this was more prominent in women than men. Hakim (2000) in the study Impact of microfinance program highlighted the higher social relations and mobility among women clients and the positive impact of microfinance on asset-ownership. Mosley and Hulme (1998) studied the possible conflict between growth and poverty alleviation. Their main finding is that the income and assets of the borrowers had increased due microcredit. Halder (1998) in the research identification of the poorest and the impact of credit on them asserted that the members of BRAC (Bangladesh Rural and Advancement Committee) consumed high calories as compared to non-members. Pitt and Khandaker (1996) explained in their study the Impact of microcredit on borrowers of BRAC, BRDB (Bangladesh Rural Development Board) and Grameen Bank that there was positive impact in women employment, total per capita weekly expenditure and womens non-land assets. Villagers attitude and other behaviors can be changed through credit programs. (The Challenge of Poverty and Mapping out Solutions: Requisite Paradigm Shift from a Problem-Solving and Islamic Perspective Dr. Mohammad Omar Farooq) M.A.Hamid (no date) found in his research that from 200 customers of Grameen Bank 46 were willing to join the Islamic bank of Bangladesh limited and one of the three main reasons was that this Islamic bank will provide services of microfinance within the limits of Islamic Shariah and Grameen Bank will not. Microfinance has a very essential role to play in development according to proponents of microfinance. As per UNCDF (2004) studies microfinance plays three vital roles in improvement. First of all it helps needy people to fulfill their basic needs and protect against hazards and is also related with up gradation of household economic welfare and lastly it motivates women by their participation in economy and also encourage equality. Results of a research on monitoring and evaluation of PKSF (Palli Karma-Sahayak Foundation) (2005) sponsored microfinance programs shows that absolute poverty decreased by 9% and moderate poverty reduced by 5% through 1997 to 2000. Amin et al. (2003) in his study the Impact of microcredit on clients of Grameen Bank, BRAC and ASA concluded that Microcredit program was successful in reaching poor Objective of microfinance according to Otero (1999) is not just about providing capital to the poor or fight against poverty on an individual level but it also has a responsibility on an institutional level. It seeks to create organizations that can provide their financial services to the poor, who are continuously ignored by the formal sector. According to Littlefield and Rosenberg (2004) study people that are below poverty line are not part of financial services sector of the economy so thats why microfinance institutions have established to provide solution to these issues. MFIs become a major part of financial sector of country by providing these services to poor people and hence it can also access capital markets for the funding of their lending portfolios. (Otero, 1999) The overall collision of microfinance can be analyzed on three things including level, type and its variable. Level defines its depth that on which level it has affected the target market whereas type of impact examines how it has benefited the people along with the impact variables as mentioned in fig. 2. Impact of microfinance on household can be accessed on two levels household and community through its types by considering its different variables. It can be scrutinize through income, education, empowerment and other social things as well. Level s of Impact Types of Impact Impact Variable Economic Variables: Income Household Assets Housing Access to food Human Capital: Education Health Confidence Skills Empowerment Social Capital: Social Networks Social Mobility Household Community Social Economic Figure: 2 Impact of Microfinance in House hold and community level Source: Eoin Wrenn, 2005 2.4 Challenges for Microfinance The achievement in microfinance in the world has been impressive relative to the status in the 1970s. However, a number of major problems remain. 2.4.1Policy development environment for financial sectors programs The policy environment for microfinance in many countries still remains unfavorable for sustainable growth in microfinance operations. For example, in countries such as Peoples Republic of China, Thailand, and Viet Nam, the ceilings on interest rates limit the ability of MFIs to provide increased and continuing access to an increasing segment of the excluded households. 2.4.2Inadequate financial infrastructure It is another major problem in the world. Financial infrastructure includes legal, information, and regulatory and supervisory systems for financial institutions and markets. Most governments have not focused to build financial infrastructure that supports, strengthens, and ensures the sustainability of such institutions or programs and promotes participation of private sector institutions in microfinance. The other major financial infrastructure-related problems include lack of: A legal framework conducive for emergence and sustainable growth of small-scale financial institutions, Regulatory and supervisory systems for microfinance in countries where the microfinance subsector is approaching a level of maturity, and Emphasis on development of accounting and auditing practices and professions 2.4.3Limitation of retail level institutional capacity Most retail level institutions do not have adequate capacity to expand the scope and outreach of services on a sustainable basis to most of the potential clients. Lack capacity to leverage funds, Are unable to provide a range of products and services compatible with the potential clients characteristics. Do not have an adequate network. (Source: Finance for Poor: Microfinance development Strategy, ADB website, 2000) 2.5 Islamic Microfinance According to Mufti Muhammad Taqi Usmani( no date) , from years Muslims are trying to frame their style of living according to Islam thats why they restrict themselves within the limits of Shariah which on the basis of Islam prohibits the practice of Riba or interest in any of the financial or trade activities. According to Dr. Abbas Mirakhor, Executive Director of the IMF as referred by Chaudhri (2006) An important function of Islamic finance that is seldom noted à ¢Ã¢â€š ¬Ã‚ ¦ is the ability of Islamic finance to provide the vehicle for financial and economic empowerment à ¢Ã¢â€š ¬Ã‚ ¦ to convert dead capital into income generating assets to financially and economically empower the poor Islamic Microfinance is the way of financing to the underserved population without using the concept of interest. Microfinance is already more structurally aligned to applying Islamic equity financing structures. As microfinance programs are based on group sharing of risk and personal guarantee while maintenance of trust and honesty is tied to the availability of future funds. 2.5.1 Importance of Islamic Microfinance In his famous book Wealth of Nations, Adam Smith argued that participation in religious sects could potentially convey two economic advantages to adherents. The first could be seen as a reputational signal while the poor might look alike to potential employers, lenders, and customers, membership in a specific group could convey a reduction in risk associated with the particular individual and ultimately improve the efficient allocation of resources. Second, religious groups could also provide for extra-legal means of establishing trust and sanctioning miscreants in intra group transactions, again reducing uncertainty and improving efficiency, especially where civil remedies for failure to uphold contracts were weak. (Case study: Islamic microfinance and socially responsible investment Anderson and Noland, 1988). Islamic finance techniques could give thousands of entrepreneurial poor the access to microfinance an option they might not consider if traditional, interest-based commercial loans were offered. More experimentation and practice in the field should contribute to more knowledge and a better understanding of effective loan delivery mechanisms using Islamic banking principles (Muhammad Ramzan, 1996). 2.5.2 Islamic approach to poverty alleviation All principles or laws in Islam owe their origin to its holy book the Quran and the sayings and deeds of its Prophet (peace be upon him) encapsulated in books of Hadith. A saying of the Prophet (peace be upon him) forcefully drives home the central message of Islam regarding poverty: Poverty is almost like disbelief in God.. On another occasion, the Prophet (peace be upon him) is reported to have said Allah! I seek refuge with you from the affliction of poverty (Soruce: Sahih Bukhari: read, study, search online Volume 8, Book 75, Number 379). Islam views poverty to be a curse to be eradicated through productive efforts. Poverty is in conflict with enrichment of self (nafs), which is one of the primary objectives (maqasid) of Shariah. Islamic jurists have unanimously held the view that it is the collective obligation (fardkifayah) of a Muslim society to take care of the basic needs of the poor. (Obaidullah, Muhammed (2008) 2.5.2.1Charity Charity occupies a central position in the Islamic scheme of poverty alleviation. The broad term for charity in Islam is Sadaqa. When compulsorily mandated on an eligible Muslim, Sadaqa is called Zakah. When Sadaqa results in flow of benefits that are expected to be stable and permanent (such as, through endowment of a physical property), it is called Sadaq-e-jariya or Waqf. Establish Prayer and dispense the Purifying Alms (Zakat) and bow in worship with those who bow (Al-Quran, (2:43)) The research paper by Professor Habib Ahmed (no date) asserts that Zakah play an important role in eliminating poverty and a significant impact of Zakah can be seen if the macroeconomic policies are in the alignment with poverty reduction objective. Zakah is the third among five pillars of Islam and payment of zakah is an obligation on the wealth and production of every Muslim. The primary issue with a zakah or sadaqa-based solution to the challenge of poverty is the issue of sustainability. Funds mobilized through these tools tend to fluctuate from time to time and may not lend themselves to careful planning and implementation. Further, these funds are meant mostly for the extremely poor and function as a safety net for meeting their immediate and basic needs. Benefits from waqf, assets are of course, meant to flow to the community at large and also on a sustainable basis (M U Chapra, 2008).It has been In FY 2009, approximately Rupees 150 billion were paid by people in Pakistan in charity, of which 90 percent was for the purpose of paying Zakat. (Dawn, September, 7, 2009) According to Dr Mohammad Omar Farooq people when pay Zakah should be concerned with its impact on the society in the long or short term to get the solutions for poverty alleviation. In another research conducted by Nafis Alam (no date) states in his study Islamic venture philanthropy: a tool for community development that Islamic charities are significant influential tool for sustainable community development. 2.5.3 Islamic Microfinance Products Islamic approach to poverty alleviation is a composite of a mission based and market-based interventions. Islamic Microfinance need not be restricted to not-for-profit modes alone. Islam permits for-profit trade and creation of wealth. It depends on the customer that what he/she wants to do with the money either needs just security of the money against which he/she may not claim the profit or wants to invest the money and share both profit and loss. The poor need a range of microfinance services, such as, micro-savings, micro-credit, micro-equity, micro-Takaful and micro-remittance. In the context of mainstream Islamic finance, people come across a host of for-profit modes through which such services may be provided to the poor. These could be used for microfinance with minor modifications wherever needed (Obaidullah, 2008). Micro-Savings Micro-savings is a critical financial service for poor and excluded households. Poor people want secure, convenient deposit services that allow for small balances and transactions and offer easy access to their funds. However, microfinance institutions across the globe tend to neglect this product while giving undue importance to micro-credit. The contract underlying a savings product must be free from elements of Riba and Gharar. This constitutes one of the most well known Islamic products, consisting in a cost-plus profit financing transaction in which a tangible asset is purchased by an Islamic institution at the request of its customer from a supplier. The Islamic institution then sells the asset to its customer on a deferred sale basis with a markup reflecting the institutions profit Various contractual options for designing savings products are: wadia, qard hasan and Mudarabah (Obaidullah, 2008). Micro-Credit The Islamic alternative to interest-based conventional loan is trade based or lease-based credit that permits the ownership and/or use of commodities or physical assets needed for productive ente

Bears :: essays research papers

Traveling in bear country can be quite thrilling. Coming face to face with a bear would be terrifying. Most bear attacks can be avoided, but there is always a chance of encountering a bear. Although nothing is one hundred percent guaranteed effective, here are a list of some tips that might prove to be useful in a bear encounter. Be Alert in Bear Country . Always have Bear Deterrent Pepper Spray in its holster ready for immediate use. Don\'t bury it in your pack. . Be alert where recent bear activity has been documented by park officials: Fish and Game, Forest Service, and other Public Service people. Some Common areas where bears like to roam are: avalanche chutes, stream beds, dense edge cover and, in late summer, berry patches. . Use extreme caution when traveling on trails at night or at either end of the day. . Be careful with food smells - never cook close to camp. Store all foods in plastic away from camp at night when camp is unattended. Store them at least 100 yards away from camp. Hang them at least 14 feet up a tree and hung 4 feet away from the trunk. . Watch for fresh bear scant or tracks on the trail or near possible camp sites. . If possible, make plenty of noise on the trail, especially on blind curves, in dense vegetation or areas with limited vision.  Ã‚  Ã‚  Ã‚  Ã‚   . Be aware of the wind - bears have an excellent sense of smell. If the wind is at your back, the chances are a bear will smell you and leave well before you reach it. If the wind is blowing in your face, the chances of an encounter will greatly increase. In high wind situations or along creeks and streams, a bear might not hear you coming or you might not hear it. . Dead animal carcass - If you come upon a dead animal carcass, immediately leave the area. Bears will often feed on a carcass for days and also stay in the area to protect their food. . Bear cubs - If you see a bear cub, chances are the mother is not far away. Female bears will fiercely defend the young, so it is best you leave the area and find a different path. . Keep dogs under control - dogs can lead an angry bear back to you. . Do not travel alone in bear country. Invite a friend.

Home Computer Network :: essays research papers

Have you ever needed to have more than one home computer for you and your family? Do you have two or more computers, but need to copy and/or share files and/or programs between them, but you don’t know how? Do all of your computers need Internet access, but you don’t want to have a phone line installed for each of them? Well, you can do all of this. I know, because this is what I did at my home. After doing research I found that there are several advantages for having your own Home Computer Network. Following, are several reasons to do this in your house. First, by having an in-home computer network, and a file server, you can have a central location for storing all of your information. So, if you need more than one computer to access certain information, such as fonts, financial files, games, etc., you can do this through the network. This also eliminates the need for copying files to floppy diskettes, hand-carrying them to the other computers, and copying the files one-floppy-at-a-time to each, individual computer. This would be a very slow process, compared to a fast network speed. Additionally, if one computer on your network crashes, you can move to another computer and continue your work. So, if you use your network and file server effectively, you can have a high degree of reliability, security, and efficiency. Second, an in-home computer network can allow you to have only one Internet connection while giving Internet access to all computers on your network. This is very important if you only have one phone line. If you were to add an additional phone line for each computer you wanted to be connected to the Internet, well, let’s just say that this would be a costly alternative. By using your file server on your network, as a PROXY server, you can just use one phone line to connect to the Internet. All you have to do is install a small PROXY program that says, â€Å"I am the Internet connection for this network. Everybody aim their Internet browsing at me!† It’s really that simple. By doing this, it fools the other computers on your network into thinking that the file server IS the Internet. In addition to being connected via one phone line, and one computer, your file server can have what is called a â€Å"Firewall.† This eliminates outside intruders from invadin g your network.

2004 MLB Wins Regression Essay -- essays research papers

On Wednesday, October 27th 2004, the Curse of the Bambino was finally lifted off the City of Boston and its long-suffering baseball fans (see Appendix A for more on the Curse). For the first time in 86 years, the Boston Red Sox were the world champions of baseball. There is no arguing that the 2004 Red Sox were a good team that played excellent baseball throughout the season. The team was led not by talent cultivated through the Red Sox’ farm system but by high-priced, free-agent acquisitions such as Pedro Martinez, Manny Ramirez, Keith Foulke, Curt Shilling and David Ortiz. The average age for a Red Sox team member was 31.1 years, the oldest team average in the league. Additionally, the cumulative payroll for the 2004 Red Sox was the second highest in Major League Baseball at $125,208,542 or $4,173,618 per player. The previous two statistics describe some of the off-field demographic makeup of the 2004 Red Sox. In additional to being a veteran and well-paid ball club, the Red Sox performed well on the field as well. The team batting average (number of hits divided by number of official at-bats) of the Red Sox was tied for the highest of the 30 Major Leagues teams at 0.282. In terms of pitching statistics, the Red Sox were in the top thi rd of earned run average (E.R.A.; the number of earned runs allowed per nine innings of play). Fielding average (number of successful fielding attempts divided by total number of fielding attempts) is the only major statistic where the Red Sox were significantly below the mean, ranking in the bottom quartile. I am interested in analyzing the Major League Baseball data from the 2004 season to determine the factors that best predict success (measured by the number of team wins). I am especially interested in analyzing the relationship between wins and payroll. I am most curious about this relationship because this relationship can be controlled by the ball club’s management. On-field performance is less controllable by the team’s management because it has a higher ‘human performance’ element. Furthermore, I will obtain the linear regression equations for the various variables and detailing the additional amount of wins for the marginal amount of the independent variable. In addition to analyzing the relationship between payroll and wins, I am also interested in analyzing the relationship between other major statistical categ... ...s out the level of payroll was not a significant variable for predicting the number of wins. Although the Boston Red Sox had a high payroll, I conclude that their success was much more related to their superior hitting and pitching during 2004 than to their high-payroll. Appendix A The Legend of the Curse In 1918 the Red Sox won their 5th World Series, the most by any club at that time. One of the stars of the Boston championship franchise was a young pitcher by the name of George Herman Ruth, aka The Babe or The Bambino. In 1920, however, Red Sox owner Harry Frazee needed money to finance his girlfriend's play, so he sold Babe Ruth's contract to Colonel Jacob Ruppert's New York Yankees for $100,000 (plus a loan collateralized by Fenway Park). Since then, the Yankees, who had never won a World Championship before acquiring Ruth, have gone on to win 26, and are arguably one of the greatest success stories in the history of sport. Meanwhile, the Boston Red Sox have appeared in only four World Series since 1918, losing each one in game seven. Many consider Boston's performance after the departure of Babe Ruth to be attributable to "The Curse of the Bambino." 2004 MLB Wins Regression Essay -- essays research papers On Wednesday, October 27th 2004, the Curse of the Bambino was finally lifted off the City of Boston and its long-suffering baseball fans (see Appendix A for more on the Curse). For the first time in 86 years, the Boston Red Sox were the world champions of baseball. There is no arguing that the 2004 Red Sox were a good team that played excellent baseball throughout the season. The team was led not by talent cultivated through the Red Sox’ farm system but by high-priced, free-agent acquisitions such as Pedro Martinez, Manny Ramirez, Keith Foulke, Curt Shilling and David Ortiz. The average age for a Red Sox team member was 31.1 years, the oldest team average in the league. Additionally, the cumulative payroll for the 2004 Red Sox was the second highest in Major League Baseball at $125,208,542 or $4,173,618 per player. The previous two statistics describe some of the off-field demographic makeup of the 2004 Red Sox. In additional to being a veteran and well-paid ball club, the Red Sox performed well on the field as well. The team batting average (number of hits divided by number of official at-bats) of the Red Sox was tied for the highest of the 30 Major Leagues teams at 0.282. In terms of pitching statistics, the Red Sox were in the top thi rd of earned run average (E.R.A.; the number of earned runs allowed per nine innings of play). Fielding average (number of successful fielding attempts divided by total number of fielding attempts) is the only major statistic where the Red Sox were significantly below the mean, ranking in the bottom quartile. I am interested in analyzing the Major League Baseball data from the 2004 season to determine the factors that best predict success (measured by the number of team wins). I am especially interested in analyzing the relationship between wins and payroll. I am most curious about this relationship because this relationship can be controlled by the ball club’s management. On-field performance is less controllable by the team’s management because it has a higher ‘human performance’ element. Furthermore, I will obtain the linear regression equations for the various variables and detailing the additional amount of wins for the marginal amount of the independent variable. In addition to analyzing the relationship between payroll and wins, I am also interested in analyzing the relationship between other major statistical categ... ...s out the level of payroll was not a significant variable for predicting the number of wins. Although the Boston Red Sox had a high payroll, I conclude that their success was much more related to their superior hitting and pitching during 2004 than to their high-payroll. Appendix A The Legend of the Curse In 1918 the Red Sox won their 5th World Series, the most by any club at that time. One of the stars of the Boston championship franchise was a young pitcher by the name of George Herman Ruth, aka The Babe or The Bambino. In 1920, however, Red Sox owner Harry Frazee needed money to finance his girlfriend's play, so he sold Babe Ruth's contract to Colonel Jacob Ruppert's New York Yankees for $100,000 (plus a loan collateralized by Fenway Park). Since then, the Yankees, who had never won a World Championship before acquiring Ruth, have gone on to win 26, and are arguably one of the greatest success stories in the history of sport. Meanwhile, the Boston Red Sox have appeared in only four World Series since 1918, losing each one in game seven. Many consider Boston's performance after the departure of Babe Ruth to be attributable to "The Curse of the Bambino."

Genzyme Corporation Essay

Genzyme has a tradition to be financed with equity. High equity ratio has advantages such as low agency costs related to debt, lower financial stress and more flexibility for management, which is especially crucial for start-up companies, such as in the early stage of Genzyme. However, besides losing the tax shield from debt, high equity financing leads to an increasingly diffused ownership, which would in turn causes problems such as shareholder – management principal – agent problem and asymmetric information problem. Principal – agent problem: As agent of the shareholder (principal), management should aim at maximizing shareholders’ value, i.e. the market value of the equity. However, management tends to serve its own interests. In order to make management act in line with the shareholders’ interest, agency costs of managerial incentives are induced. For Genzyme, to increase leverage is one way to reduce managerial incentives related agency costs . However, management generally does not prefer debt, since higher leverage implies higher risk for bankruptcy as financial distress increases with the leverage level. In order to mitigate this problem, Genzyme can try to offer compensation contracts which reflect compensation to the firm specific risks that managers are facing. This will make sure management to act in line with shareholders’ interest. Beside principal – agent problem, low debt equity ratio can also cause high adverse selection cost induced by asymmetric information. Asymmetric information problem: the separation of ownership and control of the firm will lead to asymmetric information problem. Management obviously has more information than shareholders and often will not disclose certain crucial information about firm’s strategic plans or operations. This will naturally have impact on the market value of a public traded firm like Genzyme. With asymmetric information, the market value of the firm might not reflect the true value of the firm. The market value tends to reflect a pooling equilibrium, because of high adverse selection. Fully separating equilibrium can only be obtained through firm’s sending unique, powerful but costly signals to the market. Therefore, Genzyme Corporation faces high signaling cost relat ed to adverse selection induced by asymmetric information problem. Debt again serves good to mitigate information asymmetry problem and to discipline management.