Beliefs About Good and Evil: Literature Review

Beliefs About Good and Evil: Literature Review Sohila Sandher Maggie Campbell, Johanna Ray Vollhardt, (15 Jul, 2013) Fighting the Good Fight: The Relationship Between Belief in Evil and Support for Violent Policies. Personality and Social Psychology Bulletin. Vol. 41. 250-267 Retrieved from: http://psp.sagepub.com/content/41/2/250.full.pdf+html Maggie Campbell and Johanna Ray Vollhartd attempt to address â€Å"which forms of collective action more effectively communicate the illegitimacy of the status quo and the efficacy of a group? What are the factors that shape support for different protest strategies?† The goal of their studie was to â€Å"explore the extent to which violent and non-violent tactics convey a heightened or mitigated sense of illegitimacy and act to build or undermine a sense of group efficacy in the movement.† They also worked to â€Å"consider relationships between the use of violent and non-violent tacts and endorsement of those tacts in future action.† They also explore the existence of amoderator of prcesses, specifically focusing on allegations of corruption against authority. Their study was based on Coal Seam Mining in Australia. The first experiment Campbell and Vollhardt conducted had three different parts. The first part was to test the hypothesis that non-violent protest is more supported than violent protest, and that conventional methods of protest receive less hostility from sympathizers. The second part of the experiment worked to consider how specific collective actions influence sympathizers perceptions of a situation in relation to Coal Seam Mining. The third part meant to connect illegitimacy and efficacy with endorsemet of future violent versus nonviolent actions via meditational analysis. The experiment was carried out on a sample size of 192 people who were recruited through a survey research firm that was looking for Queenslanders over the age of 18 years old. The reason they picked specifically from Queensland is because it is an area that is affected by mining and is witness to ongoing anti-mining protests. Out of the 192 people, 121 were female, 50 were male, and 20 opted not to specify. The average of of participants was 46.67 years and the average Queensland residency was 30.52 years. The experiment was a one-way design that compared the effects of the independent variables of violent protest, non-violent protest, and a no protest control condition on four dependent variables. The four dependent variables were: support for the protest, hostility toward the protestors, and endorsement of non-violent, and extreme methods. The mediator variables were the illegitimacy of the issue and group efficacy about resolving the Gas situation. The procedure included a questionnaire and reading of articles on protests, depending what group the subject was placed under. The results from experiment 1 show the possibility of protest violence being less supported than non-violent protest and that violence creates more hostility towards protestors involved. The experiment also showed that non-violence promotes future non-violence because it â€Å"effectively communicates the illegitimacy of the issue and bolsters the belief that action can be effective.† The experiment concludes that â€Å"adopting violence during a protest is, at best, a waste of time.† Experiment 2 measured the role of corruption in a government system or authority in moderating support for violent and non-violent protest. The experiment found that allegations of corruption have paradoxical effects on perceptions not only on specific events but also on broad social change. The end result of the study is that there is little support for strategic use for violence in protest, but that is important to remember the role of the media and that different political opponents might generate different sympathizing results. Maggie Campbell, Johanna Ray Vollhardt. Fighting the Good Fight The Relationship Between Belief in Evil and Support for Violent Policies. (15 July 2013) Personality and Social Psychology Bulletin. Vol 40. 16-33 Retrieved: http://psp.sagepub.com/content/40/1/16.full.pdf+html In this article, Campbell and Vollhardt focus on the consequences of using the terms of good and evil to label people and groups and how labels effect the willingness to interact with a person or group in a violent or non-violent manner. The study â€Å"aims to examine the social psychological underpinning of beliefs in good and evil, and investigate mechanisms through which these beliefs legitimize violence against those viewed as evil adversaries.† They also acknowledge that there are different levels at which people acknowledge evil; that there is no â€Å"true evil† and â€Å"true good†. The research done by Campbell and Vollhardt suggests that the individual’s definition of good and even might predict negative intergroup attitude and support for violence towards perceived enemies. They worked towards developing measures that asses individual differences in believes about good in evil â€Å"reliably and separately, as a construct in it’s own ri ght.† They used four different studies to analyze how the labels of good and evil work. The goal of the first study was to provide an initial empirical investigation of beliefs regarding good and evil, and endorsement of redemptive violence. The expectation was that beliefs on good and evil and the support of redemptive violence would predict more support for violent intergroup outcomes as compared to support for nonviolent outcomes. Campbell and Vollhardt hypothesized that there would be â€Å"an indirect effect of belief in evil on intergroup policy preferences†. For this study they collected data from 349 participants living in the United States, the majority of which being European Americans. 41% of the group identified with a religious group, while 58% of the group had at least a 4-year college degree. The study was conducted online, with participants coming in from Facebook, Craigslist and, listservs. Good and evil, endorsement of redemptive violence, measures of support for violent vs. nonviolent policies, and control variables were all measured on a seven point scale. This measure ended up mainly catching a belief in evil. Study 2 was meant to strengthen the measures on belief in good. Study 2 was based on an exploratory question of whether the belief in good or if a belief in a dichotomy would present itself. The study was conducted much in the same manner as study 1. The conclusion was that belief in good predicted two nonviolent outcomes, and that participants who believed in good viewed themselves as part of the non violent categories they supported. Study 3A and 3B were conducted to test if a belief in evil predicts support for violent policies when effects of other cognitive processes are controlled and also established the social psychological constructs that predicted such attitudes. These studies were also conducted online. Studies 3A and 3B provide us with empirical evidence to the argument that belief in evil in conceptually different from previously studied constructs, and that it also has a predictive power that can help explain support for violent policies. This study showed the importance in looking at the beliefs in good and evil to understand attitudes towards violent or nonviolent policies in intergroup conflict. There is a promise of real world implication with this study. Thomas Talhem, Jonathan Haidt, Shigehiro Oishi, Xuemin Zhang, Felicity F. Miao, Shimin Chen. Liberals Think More Analytically (More â€Å"WEIRD†) Than Conservatives. (17 Nov 2014 ) Personality and Social Psychology Bulletin. Vol 41. 250-267 Retrieved: http://psp.sagepub.com/content/41/2/250.full.pdf+html This study is designed to test whether liberals and conservatives legitimately think about the world as if they were form different cultures because of differences in the ways they process the same set of facts. They play with the idea of temporarily changing peoples cultural thought and thereby changing political opinions. They use the term WEIRD as a category. WEIRD stands for the portion of the population that is Western, Educated, Industrialized, Rich, and Democratic. The researchers of this study argue that the liberals that fall within WEIRD are a even more remote part of the population. WEIRD people are considered outliers because they score analytically on measures of thought and perception as compared to the rest who think ore holistically or intuitively. They present the hypothesis that liberals think more analytically because liberal culture is more individualistic, with priority for individual identity instead of group. The study uses four reports that tie the relationship of politics to holistic-analytic thought. The first study brings cultural thought measure into political psychology, the second distinguishes social and economic politics, the third measures thought style with cognitive tests instead of self-report scales, and the fourth tests whether thought type causes political opinions by briefly changing people’s thought styles and then measuring their political opinion. The samples were US college subjects that naturally control for age and education, large internet samples to cover diverse demographic groups and allow for control of more demographic variables, and a sample from China that has a different political climate as compared to the United States. The first study used a triad task, and a framed-line task. These tasks were administered to the group of college studies and measured on a scale from 1 to 7. They found that social liberals had a more ‘Western’, analytic, cognitive, and perceptual style than their conservative American classmates. The socially conservative students were more relational, cognitive, and perceptual. Their styles of thinking were more ‘East Asian’. The researchers claim that study 1 add to evidence that there are cultural differences in cognition between people in the same nation. The second study was similar to the first, but it was ran on a large Internet group instead of one university campus. It replaced the information from study1 because it was a larger sample size. Study three used date on cultural differences between students in Northern and Southern China. It was a replication of the findings in the first two studies. An important difference was that the relationship between social politics and thought was only found in more developed areas. It did find that this is not just an American phenomenon. Study four looked at if thought style causes people to be liberal or conservative. Study 4 provided the first evidence of cultural thought style causing attitudes toward political opinions that were presented in a long-form article. The different samples gives researchers some evidence that the relationship between politics and thought is not only of one particular culture. Running Out of Nurses: Nursing Shortages in the Middle East Running Out of Nurses: Nursing Shortages in the Middle East Introduction Nursing is a challenged and dynamic profession. Struggles and challenges have accompanied the development of nursing profession through the previous decades. Although nursing was started with unorganized and weakly defined beginning, our sisters and brothers didnà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢t stop until nursing become respectful and recognized profession. Now in the twenty-first century, the most challengeable problem is nursing shortage which is considered a public concern because of its massive effect on the quality of care and on patient health and safety. The first nurse Nightingales concept was cause no harm to patients. This was the foundation for the scope of practice for nurses. Any obstacles that may result in threaten patient safety should not be ignored. (Cherry Jacob, 2002). Nursing shortage is an issue where the required number of nurses is much more than the supply. Nursing shortage has been reported as crisis due to its seriousness. In the moment of speaking there are 200000 vacant nursing positions worldwide and it is predicted to increase to one million or even more by 2020. 85% of hospitals have expressed concerns about nursing shortage and half of them have difficulties retaining and recruiting nurses. Moreover, the turnover rate among nurses is continuously rising. Recently it has reached 40% in some hospitals nationwide (Albro, 2008). This assignment has been done as a requirement for contemporary nursing course; it will discuss the history, reasons and impact of nursing shortage. Explore the issue of recruiting foreign nurses and the issue of nursing shortage in the Middle East. History Experiencing shortage of nursing had started long time ago. Opening the first school in nursing in the US was the result of difficulty in finding adequate number and trained nurses to hand round in Civil war. After World War 2 the medical services that were provided had significantly changed resulting in huge increase in the number of hospitals and creating special care unit which generate the need for more nurses to serve. That time educational centres for nursing start to appear to educate and train nurses in order to overcome the shortage of nurses. Now the evidence shows that all countries worldwide suffer from nursing shortage and it is an international concern which needs to be highlighted and managed as soon as possible (Andrews Dziegielewski, 2005). Contributing Factors In 1980s it was easy to identify the reasons behind nursing shortage: increase the number of hospitals, length of hospital stay and aging population. Although these reasons are true, this is not the whole picture. It is more complex than that Age Nursing has experienced highest registering rate in 1960s-1970s. Because of new job opportunities opened in 1980s-1990s, smaller number of women registered. As a result of that, the average age of RN nowadays is 45 or more. Most of the middle aged nurses will reach retirement age between 2005-2010 (Abualrub, 2005). Nursing image Over the years nurses have developed concerns about their image in the society. Nursing has been differently described within the population as saints or sinner, admire or ignore, powerless or powerful. Can we say nursing shortage result from nursing image or nursing image result from nursing shortage? These two are highly related. Above that the education preparation for nurses differ 2 years associate degree, 3 years diploma and 4 years baccalaureate. These levels of education have made people not value nursing as a profession. Having a bachelor degree isnt necessary when you can be qualified to work after 3 or 2 years. This leads to discourage people to enter nursing and undervalue it (Daly, Speedy Jackson, 2003). Job satisfaction The reasons why nurses have the intention to leave nursing the career and why the turnover rate is increasing is mainly due to job dissatisfaction. Common reasons nationwide are over load, schedule changes, lack of appreciation and less family time. The nursing field doesnt offer the chance for frustrated nurses to speak out and this nourishes the dissatisfaction feeling. Lack of satisfaction makes nursing not an attractive profession for young people. More than 50% of working nurses will not advice their children or sisters to enter nursing (Diana, 2005). Faculty shortage Linda, Clarke Silber (2003) did a study that showed a strong relation between nursing education and patient mortality rate. Education plays a role in providing high quality care. 19% is the mortality rate in hospitals that have 60% of nurses with bachelor degree where it is higher in hospitals with only 20% nurses having bachelor. Lack of nursing faculty that provide proper education for the demand of bachelor graduating nurses directly affect the nursing shortage leading to directly affect patient safety. Nursing institutions witness an increase of registration, American Association of Colleges of nursing state that 13% increase of enrolment rate between 2004-2005. This increase needs an increase in nursing schools and clinical settings to educate these students. If there is not enough nursing faculty the condition will be worse. According to AACN 2005 nursing schools have rejected 41683 qualified applications. The main reason was having not enough nursing faculty, clinical areas and preceptors to educate this number of students (Allen, 2008). Implication of Shortage No doubt nursing shortage will have a negative impact on health care system. Nursing shortage forces hospitals to impose mandatory and unsafe overtime on nurses, increase responsibilities and workload and create floating nurse. All these contribute to job dissatisfaction and decrease quality care (Goodin, 2003). On patient Linda, Clarke Silber (2003) conducted study to show the relation between nurse work load and mortality rate. 50% of hospitals worldwide have 5:1 patient to nurse ratio. The study shows if the ratio is 6:1 or more, the risk for patient death will be 14%. If it is more than 8, the risk will be 31%. The number of medical errors is rising in a dangerous rate. One of the associated factors is nursing shortage. Study done by health resources and services shows a strong relation between number of staff and medication errors. These errors may have undesirable effect on patient health (Goodin, 2003) On nurses Not enough staff intensifies the level of stress of nurses. Overtimes, increase responsibilities and emotional stress promotes increase staff absenteeism, impair decision making ability and increase level of turnover. More than 75% of RNs believe that their job quality delivered to patient is strongly affected by the shortage. Three from four nurses feel is frustrating, discouraging and disappointment when you unable to provide proper nursing care, just because of there is not enough nurses in the floor. (Revira, 2009). Shortage remedy As a remedy for nursing shortage health care societies have started to hire foreign nurses. Phenomena of hiring foreign nurses has been introduced and practiced for almost 50 years (Leavitt, Mason chaffee, 2007). Recruiting foreign nurses is specifically problematic as a technique to resolve this shortage simply for two reasons. First, the shortage is global issue; means the country which sent her nurses abroad intensified the shortage within its health care system. Second, hiring foreign nurses cost much more than hiring home graduate. This related to the coast of recruiting and training them into the organization (Cherry Jacob, 2002). . Recruitment and retaining RNs Nursing associations are constantly working in order to recruit nurses as much as they can. Recruitment strategies should focus on attracting young nurses. Efforts should be maximized to spread the awareness among school aged students in order to make them consider nursing as a career or a profession (Yoho, Timpanaro Fowler, 2006).. Retention of professional nurses have helped the organization to overcome the shortage. To retain experienced nurses organizations should consider staff needs, In response to that, magnet hospitals were created. Hospitals which they focus in developing proper retention strategies, mainly by enhance nurses autonomy and support decision making ability. Magnet program aim to increase job satisfaction, decrease turnover and promote encouraging environment. Now magnet considered the most effective programme in US for retaining and recruiting nurses ( Valerie, Dreachslin, 2007) Nursing shortage in the Arab world The image of nursing as a profession in the Arab world is significantly improving. The status of nursing will be addressed from three dimensions: practice, education and image. Nursing education in the Arab world causes a lot of confusion due to the different educational levels. The minimum accepted educational degrees to enter the profession can be associated degree (2 years) or diploma degree (3 years) while in the US the bachelor is the minimum accepted degree. Moreover, some countries dont offer bachelor degree where other countries have recently started bachelor program like UAE. Arab world also tend to recruit foreign nurses especially gulf countries to overcome the shortage. Nursing image plays a big role in promoting the shortage in the Arab world. Most of the population doesnt prefer their sisters or daughters to choose nursing as a profession (Shukri, 2005). Conclusion Nursing shortage is an international problem which needs to be solved urgently. All the reasons and impacts of nursing shortage are now internationally known and it cant be ignored any more. There are many reasons that could lead to this problem, few of them were addressed: Age, nursing image, job satisfaction and faculty shortage. Leaders of nursing in practice and in academia should work to gather to develops plans enhance the growth of nursing staff. Impacts of nursing shortage cant be denied because it has a dangerous effect on patients health and on nurses. The practice of hiring foreign nurses doesnt help in solving nursing shortage. Recruiting and retaining strategies should be carefully studied in order to increase the number of working nurses. The shortage in the Arab world is a noticeable problem in which a lot of efforts need to be done in many areas to overcome this shortage.

Youth empowerment through quality education

This paper considers quality education, its importance to youth empowerment and in what ways it empowers. The paper recommended proper implementation of the curriculum, continued Teacher Education, adequate budgetary allocation and priority for education and parental encouragement to mention a few. Nigeria celebrated another Independence Day recently marking her 53rd anniversary; however the pace of development and that at which policy decisions of government and by extension its policy makers are implemented, is not commensurate with how long she has been an independent state.It is believed that one sure way of measuring the responsiveness or otherwise of any government in the world today, is in its quick implementation of key policy agreement or decisions that will boost the advancement of any sector such policy is formulated As a resul t, it is not surprising to observe that nations that want to be reckoned with in terms of youth empowerment, religious tolerance, technological adv ancement, national transformation etc strive to position education as a focal point in its march towards development.It is in the face of this, that the steady decline in the overall standard of education cross all tiers in the nation therefore that education experts have continued to clamour for initiatives that would promote massive development of the sector that is daily experiencing backwardness. In fact, many graduates cannot express themselves properly. Some in practical disciplines can't practice what they have supposedly learnt in school.While some in offices lack adequate knowledge and sit idling away redundantly due to lack of empowerment. To empower means â€Å"to promote self-actualization or influence of† something or someone (Merriam-Webster Collegiate Dictionary, 2000) or to â€Å"make (someone) tronger and more confident, especially in control of their life and rights† (Oxford Advanced Learners Dictionary, 6th edition). Empowerment can therefore be said to be the process of increasing the educational, social, economic, political etc strength of an individual.Opeyemi (The Punch, 2013) quoting Olatokunbo Somolu, chairman, Board of Trustees for Vision 20:2020 in his address at the 16th Vision 20:2020 Career Workshop in Lagos earlier this year noted that â€Å"one of the steps needed to move the nation forward is through youth empowerment†. He explained that youth empowerment as a tool for evelopment is an attitudinal, structural and cultural process whereby young people gain the skill, ability and authority to make decisions and implement change in their own lives and the lives of other people (youths and adults inclusive) and the society in general.He further said, miouth empowerment is often addressed as a gateway to intergenerational equity, civic engagement and democracy building. The need to guide and nurture our youth who are the future of our great country Nigeria cannot be over-emphasized and further pointed out that e mpowering of youths is an investment that pays off anytime, anywhere. Adding that, by investing in youths, government corporations, communities, NGOs and individuals can help prepare the youths for the challenges ahead†. Many things can be said to be responsible for non empowerment, under empowerment or inadequate empower.For instance, Oyeleye ( in SUN 2013:45) quoted an Oba saying † youths nowadays see elders especially those in power as the problem of the nation having failed to provide for them, thus mortgaging the future of the nation†. He further said that â€Å"for this nation to see a brighter future, government must devote resources to developing youths and empowering them etore they learn and operate a new style ot internal terrorism†. This paper however, is not meant to ascribe blame but to promote youth empowerment through quality education. With that said, who then are the youths of a society? What is quality education?How can quality education b ring about youth empowerment? What are the imperatives for achieving such education? YOUTH AND YOUTH EMPOWERMENT Youth is â€Å"a time of life when one is young especially the period between childhood or adolescence and maturity' (Merriam-Webster Collegiate Dictionary, 2000). It is â€Å"the period between childhood and adult age† (Oxford Advanced Learners Dictionary, 6th dition). It is at this age or period of live that an individual is formed. The lessons, morals, values etc picked up or learnt at this stage of life that shapes who the individual becomes in the future.It is therefore paramount at this age, to promote self- actualization and increase the educational, social, economic, political etc strength of an individual. Youth empowerment occurs in homes, at schools, through youth organizations, government policy-making and community organizing campaigns. Major structural activities where youth empowerment happens throughout society include community ecision-making, org anizational planning, and education reform. It is often addressed as a gateway to intergenerational equity, civic engagement and democracy building.Many local, state, national, and international government agencies and nonprofit organizations provide programs centered on youth empowerment. Activities involved therein may focus on youth-led media, youth rights, youth councils, youth activism, youth involvement in community decision- making etc Even in politics, major political parties in the world have statements supporting youth empowerment. It is also a central tenet of the United Nations Convention on the Rights of the Child, which almost every country in the world (if not all) has signed into law.Presently, there are a variety of youth empowerment initiatives underway around the world. The 53 member countries of the Commonwealth of Nations have all signed up to the Commonwealth Plan of Action for Youth Empowerment (2007-2015). The Plan of Action underpins the work of the Commonwe alth Youth Programme (CYP). On the Commonwealth definition, â€Å"Young people are empowered when they acknowledge that they have or can create choices in life, are aware of the implications of those choices, make an intormed decision treely, ake action based on that decision and accept responsibility for the consequences of those actions.Empowering young people means creating and supporting the enabling conditions under which young people can act on their own behalf, and on their own terms, rather than at the direction of others. † QUALITY EDUCATION In any form or way it is presented, education is vital for human and national development. Through it, people acquire basic skills and attitudes by which they make meaningful living and coexistence (Okwuolise, 2005). Education brings about refinements, sobriety, dynamism, faith, technological advancement, empowerment, elf regard, aggregation etc (Okwuolise 1999).Osifo-Whiskey (in Okwuolise, 2005) said that â€Å"learning and kno wledge determines what people or society is, backward or advanced, civilized or primitive, enlightened or in darkness. Learning and knowledge are the equivalent of thinking in the matter of who is man or who is an animal†. Education however does not only achieve these, it â€Å"accretes equally national development and transformation, depending on the aspirations of the nation and the objectives intended to be achieved by it† (Okwuolise, 2005).From the foregoing, if considered in a formal sense, education is a process of nstruction for the purpose of preparing the learners to become useful to themselves and the society. It is therefore no wander, Onah et al (2012:41) defined education as â€Å"the process of transmitting what is worthwhile (desirable skills, knowledge, attitude, aptitude etc) to those who are committed to it, whether they are children, youths or adults in the hope of promoting their usefulness to themselves and the society'.Quality on the other hand me ans â€Å"of high worth, value or standard† (American Heritage Dictionary, 1996), or â€Å"degree or standard of excellence† (Collins English Dictionary, 2000). Quality education therefore means education that is of high or valuable standard, adequate and with valid teaching or instructional outings in terms of method and content. It must also, reflect the three domains of education (the cognitive, affective and psychomotor domains).It therefore goes without saying that, there are certain societal expectations or traits an empowered person (child, youth or adult) is expected to manifest. Along the line of philosophy and the line of educational domains as seen above, the empowered man should; l. Be a man of knowledge, i. e. e must be well grounded in what he is supposed to do, or what he is exposed to. II. Be of good nature with good relation and must be a sociable person and not a recluse Ill field of empowerment.Be able to practically pertorm and deliver . By and by, if we are to examine the role and importance of quality education in youth empowerment, much could be said. This paper however limits itself to the following areas where quality education accretes to youth empowerment; Knowledge and Insight Knowledge is the â€Å"acquaintance with or understanding of a science, art or echnique†, â€Å"range of one's information or understanding† while insight is the â€Å"ability to understand people and situations in a very clear way' (Merriam-Webster Collegiate Dictionary, 2000).One of the attributes of quality education is the ability to instill in learners (in this case, youths) the total understanding and a range of information in a very clear way of who they are, what they want, can be and their role in nation building and transformation. It gives them the ability to apply theory and principles learnt, discriminatory analysis and sharpen their mental reflexes by which they are able to contribute in problem olving whenever the si tuation arises.Approval This is â€Å"the belief that something or someone is good or acceptable: a good opinion of someone or something† (Merriam-Webster Collegiate Dictionary, 2000). It refers to â€Å"when someone likes something or someone and thinks that they are good† (Longman Dictionary of Contemporary English). Quality education instills in one traits, attitudes and capabilities that makes him/her acceptable and considered good enough anywhere, anytime. Such people are always involved in issues that enhance national development and transformation. Even the ible said â€Å"study to show thyself approved†¦. a workman that needeth not to be ashamed†¦. † (2 Tim: 2v1 5). Responsibility and Discipline Responsibility is â€Å"the state of being the person who caused something to happen† while discipline is an â€Å"orderly conduct or pattern of behavior† (Merriam-Webster Collegiate Dictionary, 2000). A person empowered through quality ed ucation is a doer; always taking charge and making things happen instead of Just sitting back and letting others do the work. Such a person always conducts himself/herself in orderly manners and with refined behavior. nation.This group ot people is those who can contribute to the progress ot any Self Reliance and Confidence Self-reliance is â€Å"the reliance on one's own effort and abilities† while Confidence is â€Å"a feeling or belief that you can do something well or succeed at something† (Merriam- Webster Collegiate Dictionary, 2000). When one's education is of high standards, the person understands he/she is in control of their live and will always trust in his [her abilities, believing that success can be achieved at whatever task being given since the necessary information required to succeed has been duly imparted.It is obvious then that, quality education makes a man confident and confidence in turn gives him the impetus to rely on his effort. Resourceful Th is means being â€Å"able to act effectively or imaginatively, especially in difficult situations† (Merriam-Webster Collegiate Dictionary, 2000). An empowered person who has knowledge and insight, is confident and self-reliant, disciplined and responsible will be able to think outside the box. He is not easily put down by difficulties and challenges. Imperatives of Quality Education It is now obvious that quality education empowers.Be that as it may, there are ertain necessities which are sine-qua-non for engendering quality education. They include: l. Educators must do their Job of educating thoroughly well. II. Provision of adequate infrastructure which includes good learning environments and classrooms. Ill. Employment of well trained, competent and professional teachers and educators. IV. Provision of adequate learning materials including well equipped libraries and laboratories. V. Organizing field trips, excursions and industrial (practical) trainings. VI.Provision of t eaching aids including public address systems and visual aids. VI'. Parental encouragement and support. VIII. Incentives for outstanding performances and performers. ‘X. Introduction and proper implementation of quality curriculum. X. Prioritization of the education sector in terms of budgetary allocation and funding. X'. Continuous teacher education. XII. Teacher motivation. Summary and Conclusion Through the ages, education has been known to be the antidote to poverty and ignorance, and key for unlocking natural resources ( ObaJi, in Onuoha, 2006).She stated that no nation striving for accelerated development does so without first developing its educational system. According to her; the visibility and publicity which ducation has enjoyed in recent times derives from the importance attached to education in national development. Quality education ensures the development of knowledgeable, insightful, self-reliant, skilled, disciplined, and a healthy population with the capacity to drive and sustain the socio-economic development of the nation.It goes without saying therefore, that in order to enable the youth to contribute constructively to the society; it is imperative to improve the quality of the educational system to ensure that the products of our educational institutions become critical thinkers, problem solvers nd accomplished leaders. There is therefore, a strong connection between education and national growth and development. Education not only provides scientific and technical skills, it also provides the motivation, Justification and social support for pursuing them.

Lehman Brothers Failure Questions Essay

Having taken part to the events occurring in this scenario only in a few occasions, and as the ultimate guarantee of rescue, the FED,in conjunction with FDIC and the Office of the Comptroller of the Currency, made decisions aimed to save those institutions, for instance AIG, Fannie Mae and Freddie Mac, whose failure would have had a greater impact on financial system’s wealth and perspectives of recovering from the crisis were reliable. This was the main reason for declining any proposal of action in favor of Lehman. Some argued that the company’s bankruptcy was an intentional choice rather than a â€Å"genuine error†, aimed to induce the restoration of higher degrees of financial discipline. However, had the government disposed a plan in favor of Lehman Brothers, this would have prevented investors from losing faith towards financial institutions, the financial system from freezing and economy from carrying the weight of the crisis Notwithstanding, further attempts to save Lehman Brothers did not came to completion for several reasons, not only due to Government stillness, but the giving out of other financial actors i. . Bank of America and Barclays. In an ultimate analysis is thus important to consider that the â€Å"unfair† practices were not carried on by the sole Government, but by all financial institutions acting in the system as a whole: every actor placed a risky bet, whose consequences seem difficult to be addressed to just one responsible. Do you think that the U. S. government should have allowed Lehman Brothers to fail? Although Lehman Brothers was the fourth-largest U. S. investment bank, it was seen by many analysts as the weakest of Wall Street’s biggest firms. It is plausible therefore to think that the government willfully took the decision to let it go bankruptcy, in the purpose to restore a certain degree of indipendence from the market, and serving as threat for other institutions preventing them from adopting hazardous behaviours. The government decision of non-intervention had immense costs both in terms of financial losses inflicted to the credit market operators and institutions, and of lost in confidence in the market itself, that eventually turned into terror and paralyzed the credit market worldwide. Indeed investors’ confidence in th market and general concerns about the security of the banks continued to plumb during Lehman Brothers’ stock value erosion and afterwards. Nonetheless, consequences from Lehman Brothers’ bankruptcy had spread in a broader sense affecting all clusters of stakeholders: for instance, it could be mentioned the forced lay off of up to 1,500 people, which amounted to about 6 percent of Lehman’s work force. With hindsight, the decision of the US Government to allow such a giant as Lehman to fail is difficult to support, especially considering the devastating negative impact it had in a long-term perspective. Almost no objection that it should have been a critical decision to take at that time. It indeed brought the evidence that the financial market needed a shock, which unveiled some crucial problems and send a clear message to the banking system, proving that â€Å"too big to fail† companies were likely to face collapse as well, though no one would have believed this before. Many experts argue that when the government bails out a private financial institution it creates a problem called â€Å"moral hazard,† meaning that if the institution knows it will be saved, it actually has an incentive to take on more risk, not less. What do you think? Moral hazard, or, in other words, the willing of companies to act recklessly, bearing large risk exposure, has the consequential effect of distorting competition, thus mitigating risk perception and allowing excessive risk-taking, which is ultimately transferred from financial institutions to the society as a whole. This had been a controversial argument , largely discussed in the light of the financial crisis of 2008. The core of the debate was to what extent did moral hazard caused the crisis, and to what extent did government’s guarantees of rescuing perpetuated an hazardous behavior among market players. The moral-hazard argument is not only due to eventual interventions from governments, but is increasingly being considered by expertise as an inner element of a company’s strategic policy, drawing the shape of the decision making process in the interest of the company itself. However, corporate decisions are rather made in the interests of individuals than for the company as a whole, which causes a loose the connection between those interests and the company’s long-term health assumption. The possibility to gain short term benefits, at a relatively low cost, leads to reckless behavior regardless of eventual bails out from governments, with long term costs that hardly find responsibles to pay them back. One key factor is indeed limited liability, which allows investors and executives, ultimately liable for companies’ decisions, to enjoy the benefits of their risk-taking, while eventually limiting their exposure. The Government is responsible for contrasting moral hazard practices and maintaining investors’ confidence in the stability of both financial and economic activity, ensuring that the system don’t suddenly shut down in a panic. It can happen that, indeed, the expectation of further intervention from regulators and politicians may be an incentive for hazardous practices itself. However, moral hazard is an intrinsic disease of corporate strategies, thus of the financial market, whose antidote only relatively depends on government rescuing hand upon financial institutions. References James K Glassman ,The Hazard Of Moral Hazard. Commentary. New York: Sep 2009. Vol. 128, Iss. 2; Pg. 28, 5 Pgs James Surowiecki ,Hazardous Materials; The Financial Page. The New Yorker. New York: Feb 9, 2009. Vol. 85, Iss. 1; Pg. 40 John M. Berry, When Too Big To Fail Gets Too Chaotic To Manage,The Fiscal Times, May 10, 2010

Global Financial Crisis Example For Free - Free Essay Example

Sample details Pages: 14 Words: 4286 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? The term  financial crisis  is applied to a variety of situations in which some financial institutions suddenly lose a large part of their value of assets. A financial crisis is generally known as Recession. In the 19th and early 20th centuries, many financial crises were associated with  banking panics, and many  recessions  coincided with these panics. Don’t waste time! Our writers will create an original "Global Financial Crisis Example For Free" essay for you Create order Other situations that are often called financial crises include  stock market crashes  and the bursting of other financial  bubbles,  currency crises, and  sovereign defaults.  Financial crises directly result in a loss of  paper wealth; they do not directly result in changes in the real economy unless a recession or depression follows. Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world. A  recession  is a  business cycle  contraction, a general slowdown in economic activity over two consecutive quarters in a year.  During recessions, many macroeconomic  indicators vary in a similar way. Recession is measured by GDP as a fall in GDP or negative GDP is considered to be Recession. Production as measured by  Gross Domestic Prod uct  (GDP), employment, investment spending,  capacity utilization, household incomes, business profits and  inflation  all fall during recessions; while  bankruptcies  and the  unemployment rate  rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as  increasing money supply, increasing subsidies,  increasing government spending and decreasing taxation. In the  United States, the Business Cycle Dating Committee of the  National Bureau of Economic Research  (NBER) is generally seen as the authority for dating US recessions. The NBER defines an economic recession as: a significant decline in [the] economic activity spread across the country, lasting more than a few months, normally visible in  real  GDP  growth, real personal income, emplo yment (non-farm payrolls), industrial production, and wholesale-retail sales.  Almost universally, academics, economists, policy makers, and businesses defer to the determination by the NBER for the precise dating of a recessions onset and end. History: Financial Crisis A noted survey of financial crises is  This Time is Different: Eight Centuries of Financial Folly  (Reinhart HYPERLINK https://en.wikipedia.org/wiki/Financial_crisis#CITEREFReinhartRogoff2009HYPERLINK https://en.wikipedia.org/wiki/Financial_crisis#CITEREFReinhartRogoff2009 Rogoff 2009), by economists  Carmen Reinhart  and  Kenneth Rogoff, who are regarded as among the foremost historians of financial crises.  In this survey, they trace the history of financial crisis back to  sovereign defaults   default on  public  debt, which were the form of crisis prior to the 18th century and continue, then and now causing private bank failures; crises since the 18th century feature both public debt default and private debt default. Reinhart and Rogoff also class  debasement  of currency and  hyperinflation  as being forms of financial crisis, broadly speaking, because they lead to unilateral reduction (repudiation) of debt. 19th century Danish state bankruptcy of 1813 Panic of 1819   pervasive USA economic recession w/ bank failures; culmination of U.S.s 1st boom-to-bust economic cycle Panic of 1825   pervasive British economic recession in which many British banks failed, Bank of England nearly failed Panic of 1837   pervasive USA economic recession w/ bank failures; a 5 yr  depression  ensued Panic of 1847   a collapse of British financial markets associated with the end of the 1840s  railroad  boom. Panic of 1857   pervasive USA economic recession w/ bank failures 1866:  Overend Gurney crisis   comprised the  Panic of 1866  (primarily British) Panic of 1873   pervasive USA economic recession w/ bank failures, known then as the 5 yr  Great Depression   now as the  Long Depression Panic of 1884 Panic of 1890 Panic of 1893   a panic in the United States marked by the collapse of railroad overbuilding and shaky railroad financing which set off a series of bank failures Australian banking crisis of 1893 Panic of 1896   an acute  economic depression  in the  United States  precipitated by a drop in  silver reserves  and market concerns on the effects it would have on thegold standard 20th century Panic of 1901   limited to crashing of the New York Stock Exchange Panic of 1907   pervasive USA economic recession w/ bank failures Panic of 1910-1911 1910 -  Shanghai rubber stock market crisis Wall Street Crash of 1929, followed by the  Great Depression   the largest and most important economic depression in the 20th century 1973 -  1973 oil crisis   oil prices soared, causing the  1973-1974 stock market crash Secondary banking crisis of 1973-1975   United Kingdom 1980s -  Latin American debt crisis   beginning in Mexico in 1982 with the  Mexican Weekend Bank stock crisis (Israel 1983) 1987 -  Black Monday (1987)   the largest one-day percentage decline in stock market history 1989-91 -  United States Savings HYPERLINK https://en.wikipedia.org/wiki/Savings_and_loan_crisisHYPERLINK https://en.wikipedia.org/wiki/Savings_and_loan_crisis Loan crisis 1990 -  Japanese asset price bubble  collapsed early 1990s Scandinavian banking crisis:  Swedish banking crisis,  Finnish banking crisis of 1990s 1992-93 -  Black Wednesday   speculative attacks on currencies in t he  European Exchange Rate Mechanism 1994-95 -  1994 economic crisis in Mexico   speculative attack and default on Mexican debt 1997-98 -  1997 Asian Financial Crisis   devaluations and banking crises across Asia 1998 Russian financial crisis 21st century 2001 Bursting of  dot-com bubble   speculations concerning internet companies crashed 2007-10 -  Financial crisis of 2007-2010, followed by the  late 2000s recession  and the  2010 European sovereign debt crisis. Brief intro of Lehman Brothers Lehman Brothers: The I one to be affectedÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ Lehman Brothers Holdings Inc. was a global financial services firm which, until declaring bankruptcy in 2008, participated in business in investment banking, equity and fixed-income sales, research and trading, investment management, private equity, and private banking. It was a primar y dealer in the U.S. Treasury securities market. Its primary subsidiaries included Lehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, Eagle Energy Partners, and the Crossroads Group. The firms worldwide headquarters were in New York City, with regional headquarters in London and Tokyo, as well as offices located throughout the world. On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies. The filing marked the largest bankruptcy in U.S. history. The following day, Barclays announced its agreement to purchase, subject to regulatory approval, Lehmans North American investment-banking and trading divisions along with its New York headquarters building. On September 20, 2008, a revised version of that agreement was approved by U.S. Bankruptcy Judge James M. Peck. During the week of September 22, 2008, Nomura Holdings announced that it would acquire Lehman Brothers franchise in the Asia Pacific region, including Japan, Hong Kong and Australia. as well as, Lehman Brothers investment banking and equities businesses in Europe and the Middle East. The deal became effective on 13 October 2008. Lehman Brothers investment management business, including Neuberger Berman, was sold to its management on December 3, 2008. Creditors of Lehman Brothers Holdings Inc. retain a 49% common equity interest in the firm, now known as Neuberger Berman Group LLC. It is the fourth largest private employee-controlled asset management firm globally, behind Fidelity Investments, The Capital Group Companies and Wellington Management Company. A March 2010 report by the court-appointed examiner indicated that Lehman executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finances appear less shaky than they really we re. This practice was a type of repurchase agreement that temporarily removed securities from the companys balance sheet. However, unlike typical repurchase agreements, these deals were described by Lehman as the outright sale of securities and created a materially misleading picture of the firms financial condition in late 2007 and 2008. Causes of Collapse Subprime mortgage crisis In August 2007, the firm closed its subprime lender, BNC Mortgage, eliminating 1,200 positions in 23 locations, and took an after-tax charge of $25 million and a $27 million reduction in goodwill. Lehman said that poor market conditions in the mortgage space necessitated a substantial reduction in its resources and capacity in the subprime space. In 2008, Lehman faced an unprecedented loss to the continuing subprime mortgage crisis. Lehmans loss was a result of having held on to large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages; whether Lehman did this because it was simply unable to sell the lower-rated bonds, or made a conscious decision to hold them, is unclear. In any event, huge losses accrued in lower-rated mortgage-backed securities throughout 2008. In the second fiscal quarter, Lehman reported losses of $2.8 billion and was forced to sell off $6 billion in assets. In the first half of 2008 alone, Lehman stock l ost 73% of its value as the credit market continued to tighten. In August 2008, Lehman reported that it intended to release 6% of its work force, 1,500 people, just ahead of its third-quarter-reporting deadline in September. On August 22, 2008, shares in Lehman closed up 5% (16% for the week) on reports that the state-controlled Korea Development Bank was considering buying the bank. Most of those gains were quickly eroded as news came in that Korea Development Bank was facing difficulties pleasing regulators and attracting partners for the deal. It culminated on September 9, when Lehmans shares plunged 45% to $7.79, after it was reported that the state-run South Korean firm had put talks on hold. On September 17, 2008 Swiss Re estimates its overall net exposure to Lehman Brothers as approximately CHF 50 million. Investor confidence continued to erode as Lehmans stock lost roughly half its value and pushed the SHYPERLINK https://en.wikipedia.org/wiki/SP_500HYPERLINK https:/ /en.wikipedia.org/wiki/SP_500P 500 down 3.4% on September 9. The Dow Jones lost 300 points the same day on investors concerns about the security of the bank. The U.S. government did not announce any plans to assist with any possible financial crisis that emerged at Lehman. The next day, Lehman announced a loss of $3.9 billion and their intent to sell off a majority stake in their investment-management business, which includes Neuberger Berman. The stock slid seven percent that day. Lehman, after earlier rejecting questions on the sale of the company, was reportedly searching for a buyer as its stock price dropped another 40 percent on September 11, 2008. Just before the collapse of Lehman Brothers, executives at Neuberger Berman sent e-mail memos suggesting, among other things, that the Lehman Brothers top people forgo multi-million dollar bonuses to send a strong message to both employees and investors that management is not shirking accountability for recent performance. Lehman Brothers Investment Management Director George Herbert Walker IV dismissed the proposal, going so far as to actually apologize to other members of the Lehman Brothers executive committee for the idea of bonus reduction having been suggested. He wrote, Sorry team. I am not sure whats in the water at Neuberger Berman. Im embarrassed and I apologize. Short-selling allegations During hearings on the bankruptcy filing by Lehman Brothers and bailout of AIG before the House Committee on Oversight and Government Reform, former Lehman Brothers CEO Richard Fuld said a host of factors including a crisis of confidence and naked short-selling attacks followed by false rumors contributed to both the collapse of Bear Stearns and Lehman Brothers. House committee Chairman Henry Waxman said the committee received thousands of pages of internal documents from Lehman and these documents portray a company in which there was no accountability for failure. An article by journalist Matt Taibbi in Rolling Stone contended that naked short selling contributed to the demise of both Lehman and Bear Stearns. A study by finance researchers at the University of Oklahoma Price College of Business studied trading in financial stocks, including Lehman Brothers and Bear Stearns, and found no evidence that stock price declines were caused by naked short selling.. Causes of Financi al Crisis Strategic complementarities in financial markets It is often observed that successful investment requires each investor in a financial market to guess what other investors will do.  George Soros  has called this need to guess the intentions of others reflexivity.  Similarly,  John Maynard Keynes  compared financial markets to a  beauty contest game  in which each participant tries to predict which model  other  participants will consider most beautiful. Furthermore, in many cases investors have incentives to  coordinate  their choices. For example, someone who thinks other investors want to buy lots of  Japanese yen  may expect the yen to rise in value, and therefore has an incentive to buy yen too. Likewise, a depositor in  IndyMac Bank  who expects other depositors to withdraw their funds may expect the bank to fail, and therefore has an incentive to withdraw too. Economists call an incentive to mimic the strategies of others  strategic complementarily. It has been argued that if people or firms have a sufficiently strong incentive to do the same thing they expect others to do, then  self-fulfilling prophecies  may occur.  For example, if investors expect the value of the yen to rise, this may cause its value to rise; if depositors expect a bank to fail this may cause it to fail.  Therefore, financial crises are sometimes viewed as a  vicious circle  in which investors shun some institution or asset because they expect others to do so.[ Leverage Leverage, which means borrowing to finance investments, is frequently cited as a contributor to financial crises.it borrows in order to invest more, it can potentially earn more from its investment, but it can also lose more than all it has. Therefore leverage magnifies the potential returns from investment, but also creates a risk ofƚ  bankruptcy. Since bankruptcy means that a firm fails to honor all its promised payments to other firms, it may spread financial troubles from one firm to another The average degree of leverage in the economy often rises prior to a financial crisis. For example, borrowing to finance investment in the  stock market  (margin buying) became increasingly common prior to the  Wall Street Crash of 1929. Asset-liability mismatch Another factor believed to contribute to financial crises is  asset-liability mismatch, a situation in which the risks associated with an institutions debts and assets are not appropriately aligned. For example, commercial banks offer deposit accounts which can be withdrawn at any time and they use the proceeds to make long-term loans to businesses and homeowners. The mismatch between the banks short-term liabilities (its deposits) and its long-term assets (its loans) is seen as one of the reasons  bank runs  occu r (when depositors panic and decide to withdraw their funds more quickly than the bank can get back the proceeds of its loans)  Likewise,  Bear Stearns  failed in 2007-08 because it was unable to renew the short-term debt it used to finance long-term investments in mortgage securities. In an international context, many emerging market governments are unable to sell bonds denominated in their own currencies, and therefore sell bonds denominated in US dollars instead. This generates a mismatch between the currency denomination of their liabilities (their bonds) and their assets (their local tax revenues), so that they run a risk of  sovereign default  due to fluctuations in exchange rates. Uncertainty and herd behavior Many analyses of financial crises emphasize the role of investment mistakes caused by lack of knowledge or the imperfections of human reasoning.  Behavioral finance  studies errors in economic and quantitative re asoning. Psychologist Torbjorn K A Eliazonhas also analyzed failures of economic reasoning in his concept of ÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã…“copathy. Historians, notably  Charles P. Kindleberger, have pointed out that crises often follow soon after major financial or technical innovations that present investors with new types of financial opportunities, which he called displacements of investors expectations  Early examples include the  South Sea Bubble  and  Mississippi Bubble  of 1720, which occurred when the notion of investment in shares of company  stock  was itself new and unfamiliar,  and the  Crash of 1929, which followed the introduction of new electrical and transportation technologies.  More recently, many financial crises followed changes in the investment environment brought about by financial deregulation, and the crash of the  dot com bubble  in 2001 arguably began with irrational exuberance about Internet technology. Unfamiliarity with recent technical and  financial innovations  may help explain how investors sometimes grossly overestimate asset values. Also, if the first investors in a new class of assets (for example, stock in dot com companies) profit from rising asset values as other investors learn about the innovation (in our example, as others learn about the potential of the Internet), then still more others may follow their example, driving the price even higher as they rush to buy in hopes of similar profits. If such herd behavior causes prices to spiral up far above the true value of the assets, a crash may become inevitable. If for any reason the price briefly falls, so that investors realize that further gains are not assured, then the spiral may go into reverse, with price decreases causing a rush of sales, reinforcing the decrease in prices. Regulatory failures Governments have attempted to eliminate or mitigate financ ial crises by regulating the financial sector. One major goal of regulation is  transparency: making institutions financial situations publicly known by requiring regular reporting under standardized accounting procedures. Another goal of regulation is making sure institutions have sufficient assets to meet their contractual obligations, through reserve,  capital requirements, and other limits on  leverage. Some financial crises have been blamed on insufficient regulation, and have led to changes in regulation in order to avoid a repeat. For example, the Managing Director of the  IMF,  Dominique Strauss-Kahn, has blamed the financial crisis of 2008 on regulatory failure to guard against excessive risk-taking in the financial system, especially in the US.  Likewise, the New York Times singled out the deregulation of  credit default swaps  as a cause of the crisis. However, excessive regulation has also been cited as a poss ible cause of financial crises. In particular, the  Basel II Accord  has been criticized for requiring banks to increase their capital when risks rise, which might cause them to decrease lending precisely when capital is scarce, potentially aggravating a financial crisis. Fraud Fraud has played a role in the collapse of some financial institutions, when companies have attracted depositors with misleading claims about their investment strategies, or have  embezzled  the resulting income. Examples include  Charles Ponzis scam in early 20th century Boston, the collapse of the  MMM  investment fund in Russia in 1994, the scams that led to the  Albanian Lottery Uprisingof 1997, and the collapse of  Madoff Investment Securities  in 2008. Many  rogue traders  that have caused large losses at financial institutions have been accused of acting fraudulently in order to hide their trades. Fraud in mort gage financing has also been cited as one possible cause of the 2008  subprime mortgage crisis; government officials stated on September 23, 2008 that the  FBI  was looking into possible fraud by mortgage financing companies  Fannie Mae  and Freddie Mac,  Lehman Brothers, and insurer  American International Group Contagion Contagion  refers to the idea that financial crises may spread from one institution to another, as when ban run spreads from a few banks to many others, or from one country to another, as when currency crises, sovereign defaults, or stock a market crashes spread across countries. When the failure of one particular financial institution threatens the stability of many other institutions, this is called  systemic risk One widely-cited example of contagion was the spread of the  Thai crisis in 1997  to other countries like  South Korea. However, economists often debate whethe r observing crises in many countries around the same time is truly caused by contagion from one market to another, or whether it is instead caused by similar underlying problems that would have affected each country individually even in the absence of international linkages. Recessionary effects Some financial crises have little effect outside of the financial sector, like the  Wall Street crash of 1987, but other crises are believed to have played a role in decreasing growth in the rest of the economy. There are many theories why a financial crisis could have a recessionary effect on the rest of the economy. These theoretical ideas include the financial accelerator, flight to quality and flight to liquidity, and the  Kiyotaki-Moore model. Some  HYPERLINK https://en.wikipedia.org/wiki/Currency_crisis#Theories_of_currency_crisesthird generationHYPERLINK https://en.wikipedia.org/wiki/Currency_crisis#Theories_of_currency_crisesHYPERLINK https://en.wikipedia.o rg/wiki/Currency_crisis#Theories_of_currency_crises models of currency crises  explore how currency crises and banking crises together can cause recessions. Time line given by World Bank Interactive financial crisis timeline Story of the unfolding financial crisis and the banks response -sept2007 # oil rises $133 per barrel # several countries suffer shortage and malnutrition due to export bans and rise in prises -march 2008(harsh new reality) #36 countries are in crisis as a result of higher food prices and will require external assistance # the root cause of the phenomenon of rising food price higher energy and fertilizer prices, the demand for the food crops in bio fuel production and low food stocks are likely to prevail in the medium turn, says the bank. -april 2008 (early investment to fight hunger ) # world bank calls for plan to fight hunger pledge to double agricultural investment in African to $ 800 million -may2008 (response in itiatives # $ 1.2 billion global food prices response programme (GFRP) launches to provide relief to countries hard hit by food high prices in april 2009,GFRP increased to $2 billion. -august 2008( crises spreads) #US treasury intervenes in growing financial turmoil #crises spreads rapidly through financial sector of advanced economies. # major banks draw back on financing for trade and foreign investment # Crises beguns to hit emerging economies -Octuber 2008 (Food full and financial crisis) # developing countries face triple hit from food, fule and financial crisis, adding that the number of malnourished people globally will grow by 44 million to 967 million in 2008. # at the bank fund 2008 annual meetings, the bank wants the financial bail out must include developing countries as well. Dec. 2008(Slowing growth and diminishing wealth) # GDP and job losses surge across high income countries. # Oil drops to $ 41 per Barrel in dec. 2008 # 24 of 26 middle income countries experience GDP decline. # Bank begins to fast track assistance to hard hit countries. World bank Group launches facilities to boost microfinance infrastructure bank recapitalization. Jan 2009 (the vulnerability fund) # The Bank calls for developed countries to pledge the equivalent of 0.7 % of their stimulus packages, or as much as they can in additional money to help developing countries which can not afford bail outs and deficits. Feb 2009 (Conditional cash transfers) # the bank expands conditional cash transfer progremes to $ 2.4 billion. Such programs offer qualifying families money in exchange for commitment such as taking babies to health clinics and keeping children in school. March 2009 (Global output contracts) # according to latest bank economic forcast first decline in global output since world war II is expected in 2009 as global GDP is set to contract by 17% April 2009 # stregthining protection, infrastructure on a track # The bank triples its investment in safety nets and other social protection programmes in health and education to $12 billion over next 2 years to protect the most vulnerable people from the worst effects of the global economic crises. # The bank creates a $ 45 billion facility for infrastructure investment over the next 3 years to help create jobs. # Speed crises recovery and ensure long term development the bank is also boosting overall agriculture landing to $ 12 billion over the next 2 years -june 2009 ( boosting rural finance, more help needed for poor, charting a global recovery) # the bank establishes the agriculture finance support facility to expanf=d rural finance through a $ 20 million bill and melinda Gates foundation contribution. The facility will increase growers acces to financial services , such as saving credit payments and insurance. # World economy will decline this year by close to 3% percent, more than previsouly estimated. # Poor co untries will continue to be hit hard by multiple waves of economic stress. # World sees drop in global output trade and private capital flows. # Indicator of a deepening recession inform the Banks push for concerted global action wile crisis is still underway. July 2009 (Record assistance to crisis hit countries) # The bank Group committed nearly $60 billion in 2009 to help countries struggling aimed the global economic crisis. August 2009 (continued price rise) # Oil back up to $ 70 per barrel (27.5% higher than 2005 prices) Food crisis continues with prices still 57.6% higher than in 2005. Sept. 2009 (sign of Recovery, Poor still Hurting) # GDP decline slow or end in many advanced economies, but recovery of employment expected to lag. # 43 poorest countries are still suffering and will need additional assistance to move beyond the global recession. Sept. 2009 (Responsible Globalization) # World Bank President Robert Zoellick outlines new vision for a world post financial crisis. # In a speech , Zoellick says, Coming out of this crisis ,we have an opportunity to reshape our policies and institution. (Reference : http:/ www.worldbank .org/financial crisis/) Conclusion Financial crisis is a situation when value of some assets decreases or GDP becomes negative which is not at all good for an economy. This crisis came in to effect from Sept. 2007 and still some countries like US is under the effect or we can say are still under crisis. This can be easily seen when in latest times as Obama The president of US visited India and took over 50000 jobs for US so called the developed country. The effect was seen at the time when Lehman Brothers a great bank of US collapsed in 2008. This was all due to over prodection and giving loans without any security and the further reason for such is no savings by the people of US. The effect of such crisis is not seen on India or was negliable because the savings habit of Indians. The most affected sector was Financial sector whereas the least affected was or is IT sector. In the end it can be said that to avoide the effect of Financial crisis one should start saving for an uncertain future.