A Comparison of the Economic Philosophies of Adam Smith,...

As far back as man has been on earth, he has been driven towards building a community among his peers. Whether that is a community of hunters and gatherers who share whatever the day has brought to them within their tribe, or a larger community which within its structure lie the inner dwellings of division of labor and societal classes. Adam Smith (18th Century), John Stuart Mill (19th Century), and Karl Marx (19th Century) are of the same cloth, but in modern terms their community is referenced as a government, and they each have their own distinct opinions on the drive instilled within human nature that shape their personal economic theories. I will be dissecting the views of each of these economists, in regards to the role of†¦show more content†¦In Smiths government, banking would be regulated and the government would provide public goods, such as highways, canals, lights and sewage systems. All of which would contribute to the public hygiene and overall maintenance o f the state, and cities. It is safe to say that Adam Smith would, in todays world, be labeled as a socialist, with his heavy reliance on government funded aid and services. An important aspect of Smiths views, were taxes. In one of Smiths many opinions regarding human nature, he explains that the rich, once placed in a position of power, maintain that power through their dealings within a civil government which employs men of inferior wealth, to protect the wealthy lands of the rich. In layman’s terms a community with the bare minimum has little violence since there is nothing to fight over, but one with plush property and wealth, has a plethora of people fighting over one another. This is where Smiths views of taxes comes into play. In his world, the government would impose taxation, with the intentions of discouraging improper or luxurious behavior which he believed did not benefit society as a whole. (Smith, pp.18-20) When discussing human nature in the sociological spectrum, Smith likens humans to animals, or dogs in particular. The typical reliance of animals, once theyre matured,on no one but themselves (becoming independents), is a characteristic that humans do not follow. I believe SmithsShow MoreRelatedBranches of Philosophy8343 Words   |  34 PagesBranches of philosophy The following branches are the main areas of study: †¢ Metaphysics investigates the nature of being and the world. Traditional branches are cosmology and ontology. †¢ Epistemology is concerned with the nature and scope of knowledge, and whether knowledge is possible. Among its central concerns has been the challenge posed by skepticism and the relationships between truth, belief, and justification. †¢ Ethics, or moral philosophy, is concerned with questions of howRead MoreJurisprudential Theories on IPR13115 Words   |  53 Pagesthrough a personality argument as presented by Georg Friedrich Wilhelm Hegel is often regarded as the most powerful alternative to a Lockean model of property. Hegels remarks on intellectual property were printed as part of his Elements of the Philosophy of Rights, a book that was based on the lectures he gave at the University of Berlin between 1818 and 1831. 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The Recommendations Free Essays

In the recent past, there have been calls for stricter regulations in terms of supervision and capital adequacy of the banking sector as a result of increased risks faced by banks trading internationally. A committee was therefore formed; Basel Committee on Banking Supervision, to come up with recommendations that would be adopted by banks to mitigate themselves against the risks they face in their operations. The original proposals by the committee were done in 2001 and 2003 although due to changing financial environment, revisions have had to be made that has led to the current financial proposals which were expected to be adopted by member countries after being endorsed by the central bank Governors of G10 countries (BIS, 2009). We will write a custom essay sample on The Recommendations or any similar topic only for you Order Now The Recommendations The framework is set out in 3 pillars; the first one being the minimum capital requirements which touch on the calculation of the minimum capital requirements, capital risk (using standardized approach, internal ratings approach as well as securitization framework), operational risk and market risk. The second pillar touches on the supervisory review process while the third pillar on market discipline (BIS, 2009). 1st Pillar This pillar gives recommendations on the minimum capital requirements and how it is calculated for purposes of credit, market and operational risks. The capital ratio should be lower than 8% with Tier 2 capital being limited to 100% of Tier 1 capital. The capital ratio is calculated using the regulatory capital and risk weighted assets. Regulatory capital framework includes Tier 1 (paid up capital , disclosed reserves), Tier 2 (undisclosed reserves, asset revaluation reserves, general provisions, hybrid capital instruments, subordinated debt and Tier 3 (subordinated short term debts). All these Tiers will be included in the capital base provided total of Tier 2 is subject to maximum of 100% of Tier 1, subordinated debt limited to 50% of Tier 1, Tier 3 capital limited to 250% of Tier 1 capital, general provisions on unidentified losses limited to 1. 25 percentage points and unrealized gains being subject to a discount of 55% (BIS, 2009). The internal ratings approach of calculating credit risk is based on unexpected losses and expected losses. Under this method there is categorization of exposures into asset classes with different underlying risk characteristics. These classes are corporate, sovereign, bank, retail and equity. The internal ratings approach should be adopted in the banking group in a phased manner. Standardized approach measures credit risk in a standard manner, with the help of external assessments (BIS, 2009). The other method of determining credit risk is through the use of securitization approach where exposure is determined on the basis of the economic substance rather than the legal form. Traditional securitization is where cash flow from an underlying collection of exposures is used to service a minimum of two different stratified positions showing different levels of credit risk. Synthetic securitization on the other hand is where at least two different stratified risks reflecting different levels of credit risk where credit risk of an underlying collection of exposures is transferred, partly or wholly through use of funded or unfunded derivatives that mitigate against the credit risk of the portfolio. Operational risk results from insufficient or inadequate internal processes, people and systems or from external events. Operational risk includes legal risk but not strategic or reputational. This risk is measured using standardized and advanced measurement approaches. Market risk is risk of losses in on and off balance sheet positions as a result of changes in the market prices. The risks include risks associated with interest related instruments, forex and commodities. 2nd pillar This pillar of the Basel II provisions touches on supervisory review, risk management as well as supervisory accountability in relation to risks facing the banks. Supervisory review ensures that banks have enough capital to manage risks develop internal capital assessment , how well banks are assessing their capital requirements as regarding risks as well as amount of capital held against risks. The second pillar also has 4 provisions on banks i. e. banks should have processes of assessing their overall capital adequacy in relation to risk and maintaining capital levels, banks internal capacity and strategies and compliance with capital ratios. , banks operate above regulatory capital ratios and capital requirements, and intervention by supervisors to avoid capital falling bellow minimum capital requirements. Other issues to be addressed under this pillar include interest rate risks, credit risks, operational risks, and market risk (BIS, 2009) 3rd pillar This touches on the disclosure requirements under Basel II. The disclosure requirements is to complement pillar 1 and 2 thus encouraging market discipline in terms of information access on risk, capital, risk assessment process. The disclosures should be in line with the management of these risks thus effectively informing the market on the banks exposure to risks hence enable consistency, understandability and comparability. The information could be made publicly available and in case of non disclosure, penalties may be enforced. These, though, varies across different countries. The disclosure requirements under the framework should not conflict with the accounting standards which are overall and if conflicts arise, they should be explained. Accounting disclosures should also be complemented with the frameworks disclosure requirements to clarify the disclosures (BIS, 2009). Materiality of the disclosures should also be considered. Materiality is determined by the effect of omission or inclusion of an item. The disclosures can also be done on a semi annually, quarterly, or annual basis depending on the nature of information to be disclosed. Confidential and proprietary information should also be considered in disclosing information to the market. Challenges facing Basel II The implementation of the provisions of Basel II has not been smooth sailing. It has presented some apparent challenges to banks across the globe. The new framework has led to the mobilization of the risk, information systems and finance departments of the banks given the fact that far reaching provisions contained in the accord. This in itself will involve the use of resources in terms of manpower and money (Accenture, 2007). Banks are also faced with the challenge of implementation of the framework in terms of the change in the product portfolios as well as economic environments. This is in terms of the capital requirements which under the accord, should be above the minimum limits. The assessment of capital requirements may also lead to changes in product portfolios thus leading to introduction and withdrawal of other products. Despite the apparent benefits brought about by the new accord, some banks view Basel II as a regulatory bottle neck in their operations. Other challenges that accompany the implementation of Basel II is that of the cost implication. Given the far reaching provisions of the framework, the costs to be incurred in setting up supervisory teams and risk assessment mechanisms may be out of reach of smaller banks or even ‘eat’ into the profits of well established banking institutions. The costs involved have led to uncertainty among many bank heads (Accenture, 2007). The current information systems in most banks around the globe cannot adequately meet the requirements of Basel II. This means that banks will have to either improve on their information systems or overhaul them completely. This brings us back to the issue of cost involved in the implementation of the framework. The need of historical data in the calculation of credit risk, advanced internal rating based approach which requires up to 7 years in historical data or advanced measurement approach which requires up to 5 years of historical data will definitely increase the need of databases by banks which also has cost implications attached to it (Accenture, 2007). The implementation of Basel II will lead to the complete change in the existing systems and processes in order to meet the new regulations in risk determination and management as well as capital adequacy. The implementation of the accord will also see the changes in operations of the banks at the same time calling for closer supervision The adoption of the recommendations of the accord has received widespread acceptance although the level of implementation is varied. The effect of this is that there may be lack of uniformity hence making comparisons difficult between different banks (Accenture, 2007). Conclusion Despite all the above mentioned challenges, the benefits brought about by the implementation of Basel II far outweigh the drawbacks. The provisions enable banks to have and develop credit management and assessment systems that will help them to mitigate these risks effectively. The regulatory capital requirements under the accord will also enable the banks to have adequate capital to finance their operations as well as manage any risk arising thereof. The disclosure requirements also ensure that the market is aware of the operations of the banks. References Accenture. (2007, December 10th). Basel II Impacts: Challenges and Opportunities. Retrieved March 16th, 2009, from Accenture: http://www. accenture. com/xdoc/en/industries/financial/banking/capabilities/BII_Survey_SAP. pdf BIS. (2009, March 10th). Basel II:Revised International Capiatl Frameork. Retrieved March 16th, 2009, from Bank for International Settlements: http://www. bis. org/publ/bcbs128. htm How to cite The Recommendations, Papers

Challenges of Education Sector in India-Free-Samples for Student

Question: Discuss about the ethical issues faced by the Education Sector in India. Answer: Introduction: Ethics can be defined as the practice that does not harm others. Being ethical means performing the activities that are valuable and do not harm the other peoples morale. Ethics is one of the major concerns for all. Unethical practices are found to exist in almost all fields or sectors today. This study is about various factors that give birth to the unethical practices at the education sector. The Indian education sector is considered in the study because in recent times, there are many unethical activities have been observed in the same. Studying this area helps in understanding the basic concept of ethics in business. The major objectives of this study are: To identify the issues faced by the education sector To identify the initiatives that has been taken in order to manage the business ethical issues in this sector. To identify that causes of ethical issues in education sector of India Analysis: Education sector is also facing many ethical issues in India. This is because of commercialization and corruption in the industry. Ethical issues faced by the sector: Privatization: Privatization is not at all a bad thing for India. However, privatization in the education system in India is affecting the system and the students in negative manner. As the government of India has allowed the private sector to start up their own financing education institutions, education in India is becoming a market commodity (Kingdon, 2007). The first unethical behaviour of these institutions can be seen in the amount of fees they charges from the students. They use luxurious infrastructure to attract the students after which these institutions exploit them unethically. Another ethical issue that has been found in such institutions is appointing teachers at low salary scale (Rossouw, Van Vuuren, Ghani, and Adam, 2010). These teachers are not even qualified to be on that post. These practices may ruin the future of the students as they are not getting the correct education and knowledge. As these institutions runs on private basis so they also arrange the examinati on papers for the students and provide them higher grades without providing them knowledge (Kumar and Dash, 2011). This is the most unethical practice done by these institutions. Lack of value education: In ancient times, the education in India has different means. The Gurus at that time focuses on providing Indian culture values to the students. Now the time has changed and so as the pattern of the education. Todays curriculum of the Indian education system only provides knowledge to the students that makes them money makers and keeps them away from their cultural values. Corruption: Increase in corruption in the education system has deprived the level of ethical practices in the same. Corruption in education system is about the use of public offices to have private benefits. Today, the education in India has become a field of commercial matters. Corruption has occurred at every point of education sector such as administration; school infrastructure, textbook distribution, admitting only the creamy layers, admission by donations etc. are some of the practices (Arnove, Torres and Franz, 2012). Sustainability focus of the sector: Education sector of India is focusing on various aspects of sustainability these days. It has been analysed that sustainability in India is related to the environmental concerns. Every business in India has to focus on maintain the environment sustainability by reducing the activities that can harm the environment. Education can play their part in the same by implementing some of the courses related to environment safety and measures. Educating the students for the same helps in providing them knowledge about the importance of the keeping the environment safe in the country. Major stakeholders in the sector: Stakeholders of any sector are the people who are directly or indirectly associated with that particular sector (Agarwal, 2007). Although, the major focus of the education sector is students who are studying in the educational intitutions but there are some other stakeholders who are also involved in making the educational institution to run properly (Peters, 2015). The internal stakeholders of the education sector in India are students, faculties, administration and the support group that supports the functioning of the institutions. As far as the external stakeholders of the sector are considered, some of them are government and local bodies, the alumni, communities, local businesses etc. Factors that drives the sector to manage the business ethics: There are many factors that drive the education sector in India to manage its business ethics. It has been analysed that the biggest factor that drives the management of business ethics is related to the corruption that is spreading in the sector and also related to the exploitation of the students by providing them the knowledge that does not relates to their culture. It has been analysed that because of the commercialization of the education in India, the students are facing so much issues as they do not get the quality education from the institutions have to pay a lot for getting admissions in such big institutions (Prakash, 2007). The culture of giving donation restricts the people get the high quality education as they need to pay a large amount of money for that. students believes that educational institutions are the place to worship as they get education and knowledge but the deterioration of the ethical practices in the education system has changes the face of the whole syst em for the students (Reyhner and Eder, 2015). They look for their idols in the schools and colleges but these unethical practices in the education system reduce the respect that the students have for their institutions. In some of the states in India, the exams have transformed to Shiksha Mafia, the students are coming up with new ideas to cheat in their exams and their teachers help them in the same. This restricts the actual meaning of education to the students and also provides them wrong lessons (Umashankar and Dutta, 2007). After the independence of the county, many policies have been framed by the government to improve the education system of the country but these policies have not shown any satisfactory effect on the education system improvement. This is because the policies that have been made concentrated more on the dimensions of subjects but has given no weightage to the ethical and moral values. Managing business ethics: The government of the country has taken many initiatives in order to improve the education system and managing the business ethics in the education sector of India. In the recent years, it has been discussed that there is a need for teachers training so that they can provide correct education to the students (Ainscow and Sandill, 2010). There are policies formed by the government in order to make the standard qualification compulsory for the teachers to be appointed at the educational institutions. The government of India is also putting efforts by opening more and more semi-governmental institutions that operates by the private institutions but are governed by the government of India or the state government such as Rajasthan technical university, Mumbai university etc. As far as the curriculum of the courses in India is concerned, it has been analysed that the value education is very important for the students in India and thus the curriculum should be change according to the cultur al values of India (Agarwal, 2009). The teachers should also take the initiative to improve their teaching patterns and should be loyal to their duties so that they can play their part in the education system of India. Being ethical also delegates the responsibility to the people to perform their duties. This is also important for the parents to give ethical knowledge and values to their children. The collective efforts of all the stakeholders of education sector are important for developing the system and for managing the business ethics in the system (Miles and Singal, 2010). It has been identified from the pattern of education that it is required to provide the practical knowledge to the Indian students rather than forcing them to score good marks in the theoretical subjects. This pressure that is created on the minds of the students also results in wrong practices by the students and sometimes it leads to depression that affects the health of the students. Conclusion: This study concludes that ethics is the very important part of any business in order to maintain the values of the business. Education sector is also one of the sectors that are facing many issues in terms of ethics in India. Some of the issues are related to corruption, the curriculum, lack of values and culture of India etc. there are various stakeholders of the education sector who have to take initiatives to management the business ethics. Some of the stakeholders are students, teachers, administration etc. these issues can be managed by initiatives such changing the curriculum, including the values and training the teachers. References: Kingdon, G.G., 2007. The progress of school education in India.Oxford Review of Economic Policy,23(2), pp.168-195. Kumar, S. and Dash, M.K., 2011. Management education in India: trends, issues and implications.Research Journal of International Studies,18(1), pp.16-26. Peters, R.S., 2015.Ethics and Education (Routledge Revivals). Routledge. Arnove, R.F., Torres, C.A. and Franz, S. eds., 2012.Comparative education: The dialectic of the global and the local. Rowman Littlefield Publishers. Agarwal, P., 2007. Higher education in India: Growth, concerns and change agenda.Higher Education Quarterly,61(2), pp.197-207. Prakash, V., 2007. Trends in growth and financing of higher education in India.Economic and Political Weekly, pp.3249-3258. Reyhner, J. and Eder, J., 2015.American Indian education: A history. University of Oklahoma Press. Umashankar, V. and Dutta, K., 2007. Balanced scorecards in managing higher education institutions: an Indian perspective.International Journal of Educational Management,21(1), pp.54-67. Ainscow, M. and Sandill, A., 2010. Developing inclusive education systems: the role of organisational cultures and leadership.International Journal of Inclusive Education,14(4), pp.401-416. Agarwal, P., 2009.Indian higher education: Envisioning the future. Sage Publications India. Miles, S. and Singal, N., 2010. The Education for All and inclusive education debate: conflict, contradiction or opportunity?.International Journal of Inclusive Education,14(1), pp.1-15. Rossouw, D., Van Vuuren, L., Ghani, A.H.A. and Adam, M.Z.A., 2010.Business ethics. Oxford University Press Southern Africa.