Freedom Is Our Birthright

In 1890’s many Indian leaders began to explore more radical objectives and methods of Nationalism. This was the Extremist phase of Indian Nationalism. The extremist leaders such as Bal Gangadhar Tilak, Bepin Chandra Pal and Lala Lajpat Rai criticized the Moderates for their politics of prayers and emphasized the importance of self-reliance and constructive work. They asked people to rely on their own strength and fight for Swaraj. Viceroy Curzon partitioned Bengal in 1905 for administrative convenience. But whose convenience? Surely the convenience of the British related to the interest of British officials and businessmen. Perhaps the main motive behind partitioning Bengal was to curtail the influence of Bengali politicians and to split Bengali people. This partition infuriated people all over India and everyone opposed it. Public meetings and demonstrations were held. The struggle that unfolded came to be known as the Swadeshi movement. This movement opposed British rule and encouraged the ideas of self-help, swadeshi enterprise national education and use of Indian languages. ALL INDIA MUSLIM LEAGUE: The All India Muslim League was formed at Dacca in 1906 by a group of Muslim landlords and nawabs. The League supported the partition of Bengal and desired separate electorates for Muslims. In the year 1916, the Muslim League united with Congress and signed a pact known as the Lucknow Pact and decided to work together for representative government in the government. ADVENT OF MAHATMA GANDHI: Mohandas Karamchand Gandhi was born at Porbandar, Gujarat in the year 1869. He was an advocate by profession and practiced law at South Africa. He returned to India in 1915 and emerged as a mass leader. He was a respectable leader as he led Indians in South Africa in non-violent marches against racist restrictions. After his return to India he spent his first year travelling throughout the country, understanding the people, their needs and the overall situation. In 1919, Mahatma Gandhi gave a call for satyagraha against the Rowlatt Act( an Act which curbed the freedom of expression of the Indian people and strengthened police powers). He asked the Indian people to observe 6th April 1919 as a day of non-violent opposition to this Act, as a day of humiliation and prayer and strike. The Rowlatt Satyagraha turned out to be the first all-India struggle against the British government.

Role of Students in the Purification of the Society

TOPIC: Role of students in the purification of the society. TABLE OF CONTENTS TOPIC: Role of students in the purification of the society * Purpose of education. * Students and their role in the society. * Current situation of the society. * Students' reformers in the past. * Students' role in the purification of the society. * Conclusion * Refrences ‘’IN THE NAME OF ALLAH ALMIGHTY WHO IS THE MOST GRACIOUS AND MERCIFULL’’ TOPIC: Role of students in the purification of the society â€Å"Those who know cannot be like the ones who do not know.Of course, knowledge and ignorance are like light and darkness which can never be alike. †(Holy QURAN) There are a vast no of students who are studying in thousands of schools, colleges & universities. These students can plays a very significant role in the re-building and reconstruction of our nation. This can only happen if their energies are properly channelized. The students had also played in a very important r ole in the constructive growth of society. The students possess immense youth power. The role of student in a society entails various things.They must should concentrate on studies so that they develop into well-educated individuals that make significant contributions to the society in the future. They must pass on whatever knowledge they have to others. This can take on many forms ranging from helping your siblings to creating awareness about environmental issues such as global warming. They should act as responsible individuals which means to steer clear of any unlawful activities. Students should try and refrain themselves from all such activities for their benefit as well as the society.They must should do their best what they can to protect their environment and society. Students should avoid littering places and should try to invest a few hours into community services if possible so that it could help them to play a constructive part of Their selves in the society so that they are able to face the challenges of life in positive manner. Students should also behave respectfully to the elders of the society and take care of their needs i. e. help an elder to cross a road; stand up and make space for an elder to sit if there is none.By doing little deeds of kindness students could bring reforms in the whole society. The history is full of such examples that whenever a group of students take an initiative then it became the voice of whole nation. Our youth is very much capable and enthusiastic of doing so and by using their mental approach they can convert impossible to possible but for the purification of society students must should be channelized in such a way so that they could be able to play their part for the constructiveness and betterment of society. PURPOSE OF EDUCATION:Education has a great social importance specially in the modern, complex industrialized societies. Philosophers of all periods, beginning with ancient stages, devoted to it a great d eal of attention. Some of the significant functions of role of education in society are 1. To complete the socialization process. 2. To transmit the central heritage 3. The formation of social personality. 4. Reformation of attitude. 5. It encourages the spirit of competition. 6. Acts as integrative force that unites different sections of society. 7. Enhances civic sense and rational approach in an individual. . Improve the quality and efficiency of provision and outcomes 9. Promote equity and active citizenship 10. Enhance innovation and creativity at all levels of education and training. Students and their role in society: Every individual has an obligation towards the society. Students is particular can do a lot in this regard. The role of students in a society includes various things. Firstly concentrate on studies so that they develop into well-educated individual. The next step is to pass on whatever knowledge they have to other & creating awareness.A student plays a vital rol e in the development of society. They developed the society by improving their skills in knowledge of the country. Current situation of the society: Young people are often viewed as lacking the skills needed to become part of the political process. These perceptions are often backed by popular theories on childhood development, many of which define youth as social group that is in the ‘stage of becoming adults’. Young people are not afforded the opportunities to share power with adults in part because they are viewed as lacking the requisite skills.Consequently, they are not invited to the table. The very idea of â€Å"youth citizenship† – young people participating as equals – is a stretch for many adults. The irony is, however, that once at the table, young people are often viewed as a threat to adult power. Rather than work with young people to build the skills, adults either abdicate power or work to control it. This tendency to exclude young pe ople has been well-substantiated in international Therefore ‘youthfulness’ has become a major justification for excluding young people from decision making.It is also important to emphasize that these ideas are also present all major social institutions; from the family, the school, the community; religious institutions etc. It is not a surprise that there are not expectations and processes that facilitate the political participation of young people within their communities as well as at the national level. As now the youth has given a chance to show their constructive abilities in many ways they are also provided with different mediums such as social networking sites, print and electronic media so that they can express their selves in much better way but at a larger medium and at better extent.Student reforms in the past: Students are actually the spine and the base of nation. They are the actual representatives of youth. The history had also proven it that whenever a student moment takes place then it became the voice of each and every person. In the separation of subcontinent and the foundation of Pakistan students had played their vital role. Students played a major role in the Pakistan Movement. This was of great historical significance, for the Muslim students of the subcontinent had never participated in such great numbers in a political movement.It was a befitting culmination of the reformist movements of the late nineteenth century for the emancipation and education of Muslim youth. The Quaid Muhammad Ali Jinnah can be seen as source of inspiration for their emergence as players on the political scene. The recent biggest reform by students emerges in England because of the increasing fee structure in UK, and just because of the reaction of students the government had to take a backward step on this decision. It is very much clear that whenever students put their efforts in any matter then it had its own significance on them.Students' role in the purification of the society: Students are the future of the country. Through their energy, ability and potential they can bring radical changes not only to the society but also to the country as a whole. They can participate in creating awareness among the people about several issues and can help them in contributing efficiently for the society. They have the power to change the face of the society and hence play a pivotal role in the development of the society.They can purify the society by assessing knowledge and improving personalization skills, motivation ; practices for the formation of a good society and reforming of a civilized nation in to well beings. The synthesis research on achievement motivation, school engagement, and student voice, concluding that the more educators use student-centered approaches to reinforce student agency, the more motivation and engagement are likely to rise. I think this is the only way which makes students more productive so that they ca n play their part more efficiently and usefully for the society.CONCLUSION: Education is a compulsory factor a nation should have as to make progress in any field of life. In other words Education matters. In is a need of now as to get it as it helps in making a society peaceful, happy, prosperous and helps in many other ways. Children’s gain it as to make their future as also to play a vital role for the development of their nation. Now a days the society has no moral values due to which the students have to play a vital role as to play their part in society. Many institutes are made as for the people to gain knowledge and play a vital role.Our religion also gives stress on the gain of education and by gaining education a man can play a very vital role. In the end I can only say that â€Å"EDUCATION Matters†. REFRENCES: * Purpose of education written by Kim Jones. * Elementary education ; motivation in Islam written by DR. Eeqbal Hassim * Students role in history writ ten by Urwah ibn Zubayr * Possitive youth development written by Micheal J. Nakkula * www. students. com * The social role of university student written by Florian Znaniecki. * Social rights ; duties written by Leslie Stephen.

Aboriginal People in the Canadian Military

According to records, more than 4,000 Indians were enlisted during the First World War, and about 35% of Indian soldiers were in the same age. This number does not include people other than Indians, Metis, other local people such as Inuit. In addition, many indigenous inhabitants witnessed more than average admission. 47% of indigenous soldiers in Prince Edward Island State and 53% of New Brunswick's volunteers volunteered. Amazingly, 100% of adult men in the Miku Mak Reserve in Sydney Nova Scotia have volunteered. In most cases, indigenous peoples and non-Earth soldiers shared similar experiences during the war. Some indigenous people initially had difficulty moving to military life. The reason is that many people came from remote areas of the country and followed their own cultural traditions. They have little contact with Canadians outside the area, and they often speak English and French. Most people believe indigenous men quickly adapt to new lives as soldiers and often become p recious members of their company. Like most Canadians, many indigenous peoples serve Canadian Corps of Canadian Expedition (CEF). The military role of indigenous peoples is influenced by traditional hunting and military skills, plus racial stereotypes of recruitment staff and executives. Many indigenous peoples play the most dangerous role in sniper, reconnaissance soldiers, military. The First National Army encountered a double cultural barrier in military: racial prejudice marked the modern non - native world, and the army class was almost completely moved in English. Records and memoirs indicate that most units finally accepted indigenous soldiers and even provided a welcome or progressive environment than other areas of modern society. The first national army left an amazing record of the wartime achievement. Some were appointed to officers, and many served as intensive platoon leaders and battle instructors. At least 50 people are decorated for bravery on the battlefield. Many people have gained a position close to legends as scouts and sniper soldiers, using pre-war hunting techniques and wilderness experience. Ten years ago, the armed conflict between indigenous peoples and the Oka Quebec Oka police and military pushed the relationship between indigenous peoples and non-indigenous Canadians to the forefront. At that time, the committee announced a federal indigenous policy statement named New Commitments. This statement calls for cooperation in redesigning the relationship between Indigenous peoples and Canada and finding new ways to solve essential problems for our coexistence. Although progress has been seen in the past decade, it is now clear that progress was too late and too late.

Does the process of Globalization help or hinder wealth creation in Essay

Does the process of Globalization help or hinder wealth creation in developing countries - Essay Example This is a group that favours activities of by such international institution as the World Bank, IMF and WTO that are seen as creating a level ground for all countries in the world to take part in international trade. However, there is an opposing group of critics of globalization that asserts developed countries have had an unprecedented benefits compared to developing countries. This essay explores how globalization has contributed to the process of wealth creation in developing world by analysis arguments by both proponents and opponents of globalization in order to determine whether globalization has helped or hindered wealth creation. There are a number of areas in which proponents of globalization argue that developing counties have benefited due to wealth creation accrued from doing business with other countries and multinationals. Due to the interconnectedness of the global economy, demand has been created for goods from developing countries therefore increasing the volume of trade. The increased trade has benefited the Newly Industrialized Economies from Asia that have been able to export their manufactured goods. These countries started off as developing countries but it is the access to international markets that resulted creation of wealth from capital inflow into their economies resulting in economic growth. The wealth created from international business has been used to reduce poverty levels by contributing to welfare state in these countries (Lechner, 2009). The level of knowledge and technological exchange that has been brought about by globalization is also an aspect emphasised by proponents of globalization. It is argued by proponents that the benefits of globalization to developing countries are not only in the area of direct foreign investments but the phenomenon has also led to the sharing of technical innovation between developed and

Law Research Proposal Example | Topics and Well Written Essays - 750 words

Law - Research Proposal Example Moreover, will a sentence for a rich person be subjected differently as opposed to that of a deprived individual? Background A popular idiom denoting the above subject states that the civil law is intended for the wealthy while criminal law is for the deprived. Impartiality before the law is unproductive in an unequal civilization. Distant from having an integral structure that guards the poor against the affluent, there is a justice constitution that ditches the poor. There persists to be numerous people who state publicly that affluent criminals, even killers who have the capability to use costly legal representatives, are never killed, while the minority increase in penitentiaries while the majority are stood for by public protectors or, occasionally, by pro bono members in big law firms. It is not purely the governing decree itself, but the broadening gap flanked by the Have's along with have-Nots (Dorpat, 2007). It is those who direct some genus of white collar felony for which, if sentenced at all, the doers can pine in country-club penitentiaries whereas the hardcore offenders- turned to felony since they were unfortunate, starving or unlearned- did crimes to stay alive. The law might be unbiased, but fairness is hardly ever truthfully fair. Problem Statement One must gravely scrutinize how justice is described, traditionally, and then arbitrate the extent the law has diverged from its initial connotation: "fairness has been described as the eminence of being unbiased, the equivalent handling of equals, and existing in concurrence with the innate law and the heavenly plan. Fairness entails integrity in coping with others and matching people’s lives to truths and precision. This ill-fated background carries on underplaying the significance of the natural law in handling human cases. One key predicament occurs before any jury appearance: specifically, the law implementation agencies counting the police force, sheriffs and, since the eminence of 9/11 the termed Homeland Security authorities. This reflects in the judicial attitude towards the sentencing of the poor people (Ashworth, 2010). Frequently, the verdict of the jury on the rich people, if any subsists, is woefully derisory to facilitate them be sentenced to long term periods. The jury is perceived more as error finders as opposed to solution givers and colleagues in the Governments also undertake in this injustice. Hypothesis: The jury partakers will subconsciously deem a defendant’s financial background in the proposition of a verdict. Depicting the variable The Independent variable is a juvenile SFU scholar driving a 150,000 dollar vehicle and another youthful SFU scholar driving a 5000 dollar vehicle. The Dependent variable is the period that the culpable defendant is sentenced in a penitentiary. Participants/ Population The partakers of this venture include 20 scholars in a classroom framework. They include people from diverse backgrounds schooling in identic al circumstances. This is because of the minimal time period required to amass information on the required research. Research Design For this venture, the researcher has to collect the relevant information in class (about 20 individuals) with merely 10 minutes. Therefore, the questionnaire is deemed to be fairly short and has two examples of a similar case since the time frame is also squat. In addition, the procedure the researcher implores to investigate the hypothesis is by administering a

Mockery in Order Essay Example | Topics and Well Written Essays - 750 words

Mockery in Order - Essay Example Therefore, the development of control structures is useful in maintaining order as well as enforcing discouraging protocols. The establishment of order has its own draw backs which are useful in the creation of controls that are useful in the maintenance of orderliness in the society. The reduction of freedom of choice to a restricted module or activity is the principal drawback of order creation. In a bid to create uniformity and orderliness in society, there is the creation of laws, rules, and regulations which are useful for the development of the systematic way. Military personnel are easily identified because of the set of the uniform they wear; the same applies to police service and school going children. Some of the personnel may view the uniform as an infringement on rights to dress as they wish which is the paradox of order. According to Barthes, the infringement of one's rights in the army through uniforms and the set of rules is a mockery to order (Barthes 40). He refers to submission in the army as fanatic and a blind act (Barthes 40). Think of students in uniform! Uniform gives an impression of equity and order in school, but does it mean that they love wearing it? A clear no. Some of the students will always abuse the uniform. As a result, dressing chords are implemented to enforce order of which later results to strikes and the so called â€Å"cases of indiscipline†. What a mockery of order! The students feel that the order created infringes their rights and forces them to adopt what they cannot live to. In a football match, the separation of the two groups of fans and supporters help in the creation of order. Imagine, that there was no separation between the groups. What could be the consequence of such an action? There would be strife and fighting within the group leading to disharmony and strife. The separation of the groups leads to the creation of order in the match. The separation is a creation of that reduces or limits freedom of movement between the two groups. In the real sense, human beings need to interact with each other, to enjoy freedom of movement. This privilege is lost in order for the order to exist in the match. The existence of a physical barrier separating the two groups is obviously an infringement on the right for movement and association that is accorded to all human beings. Despite the success of the physical barrier, there are still problems facing maintenance of order in situations such as play interruption as a result of pitch invasion by supporters as wi tnessed in matches in Italian and Russian football leagues. Additionally fans may clash in the street with some fans obtaining injures or even death in the street confrontation. The solution to the problem has always been the designation of routes to reduce meeting of the two supporter groups. The route designation minimizes freedom and association movements. The restriction of movement and association is the price of order creation; thus, it creates a scenario in order to gain publicity, and show a need for order creation. According to the chaos theory, in order for the order to be created disorder must first exist and vice versa. The creation of order, is based on, the drive to make an organised structure from, a disorganised state. The creation and innovation experienced in the world is as a result of need for order in all spheres of life. It is vital to state that the need for order

Book review, Movie Made America Essay Example | Topics and Well Written Essays - 750 words

Book review, Movie Made America - Essay Example A number of movie producers and directors moved to Hollywood to ensure the industry stays put. The golden age began with an end to the silent era. Diverse genres emerged that involved â€Å"western, slapstick comedy, film noir, musical, animated cartoon, biopic and newsreels†. Motion pictures flourished and the movie industry became a good business to venture. A number of marvelous cinema works emerged, because movie producers and directors developed too many movies with expectations of getting the best amongst the many. The merger between ideology and technology classified the new Hollywood that was accountable for the 1980s approach of synergy as cable companies flourished and the use of video emerged (Sklar 115). In terms of financing early filmmakers faced difficult times in ensuring film, production was of good quality and presentable. Filmmakers ended producing many movies so that they could benefit from the few that succeeded. Additionally, theatres showed movies at che aper prices so that filmmakers could get something from their work. Actors were not paid much because the industry was not doing well financially. Financial problems were also induced by the presence of censorship from the government. Censorship was established to ensure public apprehension about the quality; propriety, decency and taste of films produced were of the required standards. Religious groups and other powerful authorities also requested for censorship in motion pictures to ensure morals of the society were respected and adhered. Therefore, filmmakers were forced to ensure their film work passed through censorship so that they could get authority to sale and distribute their work (Sklar 116). Politics engulfed the film industry in 1947, citing that filmmakers were using propaganda in their films. Walt Disney and Ronald Reagan were among the first Hollywood professionals with court cases. A committee was thus established to disapprove the government interference in the ind ustry. Communism was the main subject of the court hearings and filmmakers tried to defend themselves in all manners possible. Additionally, the developed committee assisted in ensuring government interference in the film industry was limited for future purposes (Sklar 117). Changes in the movie industry in America can be tracked by checking the quality and the content contained in the early movies to date. For instance, after the Word war two filmmakers concentrated more in providing content related to war experiences and hardships. Most of the actors were involved in the war therefore; they came with new experiences and emotions after the war. Additionally, technological development can be seen through movies, from silent movies, to motion pictures to cartoons and animations to 3D pictures. Moreover, the quality of the pictures taken has changed overtime. Therefore, by only focusing on the movies from yester years one can see the history and culture of Americans clearly (Sklar 118 ). Through the movie industry, we learn that America is a versatile nation accommodating everyone through the movie industry. In addition, America as a nation likes changes, thus through the movies we can see the many changes that have taken place in people’s lives. At the beginning, pinhole cameras were used to project moving images on a screen. At the time, recording of images for later viewing was impossible. In 1830s, moving

Volcanoes and Global Cooling Essay Example | Topics and Well Written Essays - 750 words

Volcanoes and Global Cooling - Essay Example The essay "Volcanoes and Global Cooling" talks about the climate changes, the effects of greenhouse gasses blamed for the global warming experienced in the world today. However, little attention has been given to the impacts of volcanic eruptions on climate change. Gray observed from the past volcanic reactions that the gaseous emissions released to the stratosphere particularly the sulfur dioxide can cause global cooling, which has the potential of impacting negatively on the climate. At the same time, the carbon dioxide released, being a greenhouse gas, also has the potential of enhancing global warming. The impacts of volcanic erupt on climate change have triggered intense debate over the past few years, according to Self and Rampino. However, based on the past eruptions, scientists have discovered that the eruptions release gasses that later on causes global cooling. According to Self and Rampino, climatologists have discovered that the sulfur dioxide released from the eruptions is what is responsible for the global cooling. In the stratosphere, sulfur particles block the incoming radiation warming the stratosphere thereby reducing the amount of incoming radiation effectively cooling the troposphere. According to Self and Rampino, during powerful volcanic eruptions, sulfur dioxide is released into the stratosphere, where it is oxidized and mixed with water vapor to form sulfuric acid. The process, according to scientists takes about one month while the particles formed have a lifetime of up to three years. The sulfate aerosols formed prevents radiation from reaching the earthâ€⠄¢s surface thereby resulting in global cooling. Self and Rampino note that past volcanic eruptions have lowered the earth’s average temperatures by up to half a degree for a period of up to one to three years (75). Benjamin Franklin is arguably the first scientist to notice the effects of volcanic eruptions on climatic change. According to Mass and Portman, Benjamin Franklin first noticed ‘dry fog’ in the summer of 1783 during his visit to Europe (566). Additionally, he observed during the winter that followed that Europe was abnormally cold. It is then that he suggested that the abnormally cold weather witnessed during the winter was the result of volcanic eruption. According to Mass and Portman, research conducted years later showed that the Laki Volcano in Iceland had indeed erupted in 1783 (566). Later on in 1816, Europe again experienced abnormally cold summer, when the year was nicknamed â€Å"Year without Summer† (Borowski par.3). Research conducte d discovered that the cool summer was the result of a great eruption that occurred on the Mt. Tambora in Indonesia a year before (Borowski par.3). Additionally, in 1883, peculiar colors and halos were observed around the sun and moon accompanied with vibrant sunrises and sunsets. According to Mass and Portman, the occurrence was the result of the eruption of Krakatau volcano in Indonesia in July 1883 (567). Study showed that the eruption of Krakatau had other world consequences, which included the loss of about 20-30% of direct solar radiation for three consecutive years after the eruption. This resulted in a very prolonged cooling effect in most parts of Europe and Asia. The climatologists also noted the strong evidence of the volcanic eruptions on climate change following 1982’s strong eruption of El Chichon in Mexico (Mass and Portman 569). Like Krakatau, the eruption of El Chichon released large quantities of dust, carbon dioxide, ash, and sulfur dioxide into the stratosp her

International Business And Accounting Essay Example | Topics and Well Written Essays - 2500 words

International Business And Accounting - Essay Example The consumers across the globe have expanded choices in terms of services and commodities available in the market. The international trade volumes have spurred economic growth and development in third world countries and this is reflected in terms of expanded business opportunities, increased employment and improved wages. The diversity in market structures, financial environment, cultural practices, consumer behavior, and industry trends present risks and challenges to international companies. Trading in goods and services in such conditions assume new complexities that can restrict the potential of growth and development (Evenett & Hoekman, 2006). Based on these observations, the paper provides an in-depth assessment of the implications and impacts of free-trade agreements from the differing perspectives of business, consumer, worker and society. The subsequent sections highlight the pros and cons of free trade agreements and how it impacts each section of the society and economic framework. Problem Identification and Analysis International trade and economic cooperation has been driven by government initiatives and international communities that frame their decisions on the inputs from private sector. Regional trade communities and bilateral trade agreements facilitate trade and investment through improved transparency, removal of non-tariff barriers, market liberalization policies, establishment of trading norms and standards, and improved bilateral understanding to support trading in services (ASEAN-China report, 2001). While globalization of economies and market liberalization practices have defined new opportunities for unrestricted trade and commerce between countries, regional trade... This essay stresses that global trade is beneficial for kinds of economies, whether developed or developing. Producers’ benefit from selling their goods in international markets generating higher revenues and consumers benefit from expanded choices of products available in the market. The international trade can help reduce poverty levels and erase income inequalities in developing economies promising improved standards of living. The international trade is regulated through a set of rules that the governments of the countries have created over the years. The poorer countries have restricted access to markets in developed countries due to the imposition of various trade barriers and agricultural subsidies. This paper makes a conclusion that markets have become more volatile as a result of global impacts and this has created the need for changing strategies in business operations and tactful government intervention to insulate the country’s economy from harmful economic effects. Monetary and fiscal policies are highly instrumental in regulating the country’s economy and creating market stability. The key strategic focus of governments while formulating trade agreements should be on eliminating trade disparities and establishment of norms that define quality of products and services delivered to the end consumers. The developed economy must focus on ensuring a fair trade practice that helps in reducing trade barriers and any form of economic exploitation.

The impact of animation for children's psychological development in Essay

The impact of animation for children's psychological development in finding their identities - Essay Example Text Resources that will be consulted 14 13. Conclusion 14 14. References 16 What are animations and what forms they may adopt Since man has the ability to clearly distinguish between thirty frames at maximum over a second, an animation refers to a display of up to thirty images a second which model an illusion of movement. This optical illusion occurs due to persistence of vision and has been used successfully over centuries in the benefit of animation and other movie makers. Animation for kids refers to all the cartoons and other fun movies whose main targeted audience is the kids. Fairy tales are one of the most prized possessions of a kid, often so, because they are said to belong to the children world. As Andersen(1991) says, the fairy tales speak to a child in a language he understands. They are vibrant and colorful, the music is often loud and don’t need a serious voice over because the video alone conveys the message. Beck (2005) believes that animations may also conve y a message. They don’t necessarily have to end with a prince charming falling head over heels with a princess who has it all. It can also convey important messages such as effects of global warming, importance and need of conserving energy, basic human rights etc. At the tender age when children normally enjoy these animations, they are forming their perspective of the world. Obviously what they see will reflect on their personalities hence the animation makers need to ensure that the message conveyed is positive and important. Grant (2006) exclaims that we often see banners promoting positivity and a revolution in the world but then, animation have a much a greater impact than mere pictures and words. Ghertner (2010) exclaims that animations are not just for kids, they entertain the elders just the same. For example, who hasn’t watched ‘Lion King’ or ‘ The Lord of the Rings’? There are so many such epic animations that one wonders if there w ould ever be an end to storytelling; and the answer is no! Animated stories have been there since centuries and there will always be new stories evolving. Bessen (2008) says that one can only hope that this art gains a greater meaning and insight as it progresses since storytelling affect the psyche of young kids and adults alike who watch them and often consider themselves to be the heroes of the story. Picture credit: http://www.dandare.org/FreeFun/Images/CartoonsMoviesTV/LionKingWallpaper1024.jpg Animations Sharpen the Human Brain Over the last two decades one sees the popularity of the use of animations and other graphics increasing by leaps and bounds in the instructional media. Almost all schools rely on animations to teach the kids the basics and the teachers then add on to it. As Gilland (2009) correctly points out, around twenty years ago, one could not have imagined but now robotic schools are well thought for idea. This intrigues one to explore how animations are more eff ective than the teachers themselves. Block (2007) exclaims that it has been experimentally proven by various researches that animations on subject matters really improve a child’s retention and inference abilities. Instead of a teacher telling how Red Riding Hood got scared of the wolves, if a student gets to see it, he is able to infer it better and not only that, he retains the images better than words. The reason why animations Some of these reasons are associated with the affective role that graphics can fulfill. For example, animations may be aesthetically

The Quest Of Life From Childhood To Death Essay Example for Free

The Quest Of Life From Childhood To Death Essay The quest for life has always been a medley of â€Å"the good, the bad and the ugly†. The occasional ups and downs of life and the frequent twists of fate here and there have left nobody untouched even the famous celebrities people see as role models. From Cradle to grave, everyone is faced with one challenge or the order of diverse degree. This was what Terry Kay’s plot captured in his classical, award winning novel titled To Dance With The White Dog. The plot of the novel revolves around Sam Peek, a complete family man, a local farmer and a celebrity, for featuring in many horticultural magazines in Hart County, Georgia, who devotedly planted pecan tress and even more devotedly loved his wife, Cora. For over 55 years, they were happily married, with kids until tragedy came knocking one night when Cora suddenly develops a heart attack which led to her death. Sam, already in his eighties was deeply saddened by his wife’s death. The children were not left out in sharing in the sorrow for they were one very happy family and devotedly loved each other. Sam’s health was naturally affected with by his grief and his daughter, Kate became too worried over his health, most especially when Sam claimed he keeps seeing a stray white dog that nobody else could see. Even Sam’s favorite son, James did not see the dog initially and everybody believes that the grief has affected his and simply going crazy, except his grandson, Bobby. However, after a series of events, everybody began seeing the white dog. Until the dog eventually disappears immediately after Sam’s death. It was concluded that the dog was Cora in another form. The theme of the novel is virtually about the quest or journey of life.The series of quest in Sam’s journey of life. His â€Å"saddest day† of loosing his wife, the lonesomeness that follows and the strength to live life without his wife. Sam’s story is about a true grief, aging, love and family life. Adding flavour to the quest is the mysterious White Dog that can only be seen by Sam Peek. It demonstrated a life-long love, natural process of aging and family relationship. One can taste bitterness and sweetness as one enters Sam’s life. You can feel the tears in his eyes, loneliness in his heart and joys on his face as the entire book enfolds vividly and dissolves in your mind. The book has been described as poetry portraying itself to be fiction. Despite his many children and friends, Sam felt lonely after his wife’s death. He had been invited for his 60 year college re-union, which he was looking forward to going along with Cora who promised to go with him. She died the very day the invitation came in the mail. Sam left home for the re-union, but lost his way along the road, he ended up in a medley of memories of his past struggles and achievements. He ended up going to where he proposed to Cora. He took a while reflecting on how he spent his life, the good old days with his wife, the younger days of the children. The life after his wife’s death and his companion, the mysterious white dog. He eventually discovers that he has cancer. As the cancer progresses in its stages, his oldest daughter moved back in to take care of him. Meanwhile, during his lonely days, his companion, the white dog would come around to keep him company. He was living alone in the farm. His children did not believe he could survive living alone in the farm without his wife. â€Å"How can this elderly man live alone on his farm? How can he keep on driving his dilapidated truck down to the fields to care for his few rows of pecan trees?†   Their fear was further aggravated when Sam keeps telling them about a white dog, â€Å"as white as the pure driven snow†, which seems to be   invisible to everyone but him, his children   be to think that grief and old age have gotten to his brain. Sam on the other hand begin to think his children crazy. Sam, knew he saw the dog. He, one of the smartest men in the South when it comes to trees could not be insane. He survived the pain of loss, grief, loneliness and old age yet maintaining the old farm alone. It is an emotional and intriguing story tracing Sam’s life through his life span, his memories, travails and the process of learning in life. Sam learns that the simple things of life are the most important after all. When he needed anyone, the white dog was always there, showing itself only when it felt was necessary. The story proves that love transcends death, for the love of Sam and Cora continued after Cora’s death through the white dog that Sam saw licking up grease on his back porch. Strangely enough, the white dog looked just like a dog that Sam and his wife had when they first were married. As Sam’s eldest daughter moved in to take care of him in his dying days, he opens the door for the white dog never to be seen again. After Sam’s death, the dog was not seen again either, only a faint print of the dog’s paws was noticed on his grave. The work was inspired by the experience of the writer and that of his parents. Kay was born in Hart County, Georgia, the setting of his novel. The eleventh of twelve children, which was the reason Sam had many children and friends. He grew up on a farm, he said that his parents had an undying love which he uses his novel to express, proving that true love disregards the concept of time and can possibly carry on lasting for eternity. It is actually a revised story of his experience about love, family and relationships.   A memorable experience of his childhood struggles, parental love and devotion, peer and family interaction etc. Summarily, the novel captures a true- life-like-story of humor, love, and friendship woven through the journey of Sam’s life. A quest for life from cradle to grave of an old man who must deal with the death of his wife death, as well as the trials of old age. A compelling story of the unusual struggle for survival despite the loss of a true companion and the other series of events time temper one life with. Sam Peek is a personification of strength, will and endurance, as he chose to continue to live on with all odds. Eventually his death culminates to creativity of the novel as the paws of his perpetual companion, the white dog, which was another form of Cora, was found on his grave. A true proof that their love will continue even after death.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Reference: Terry Kay: To Dance With the White Dog: Washington Square Press 1st edition Trade.1991 Paperback. ISBN # 0671726730 http://www.terrykay.com/TerryBio.html www.mupress.org/webpages/books/blackmarrhouse.html www.amazon.com

Need for collaborative projects in business courses Essay Example for Free

Need for collaborative projects in business courses Essay Group projects are integral to the business curriculum and can be useful in developing students skills and abilities as managers. However, faculty encounter several problems with group projects, including assessing students efforts, aiding good communication and coordination among members, and making sure the project is a truly collaborative effort. Technology may aid in addressing these problems; electronic discussion boards and chat rooms, for example, can help faculty and students enhance collaboration and increase the accountability of group members. Keywords: Discussion boards, chat rooms, collaborative learning, student projects INCREASED GLOBAL COMPETITION and other changes in the business environment over the last several years have led organizations to restructure themselves. One aspect of that restructuring is a shifting of responsibility and decision making downward and a movement toward self-directed work teams (Cohen, 1993). To prepare students to thrive in this environment, we obviously need to teach them effective teamwork and communication skills. This article describes two tools that can help accomplish this task, the electronic discussion board and the chat room. These can foster interdependence in group projects and deeper, active learning. First, we discuss the need for and benefits of collaborative projects, the problems of group work, and the role of technology in such projects. We then provide recommendations for incorporating these electronic tools in business communication classes. Need for Collaborative Projects in Business Courses. As many researchers have noted, the structural shift towards teams occurring in many organizations should be reflected in the classroom (Bobbitt, Inks, Kemp, Mayo, 2000). Using groups in class thus prepares students to work collaboratively in the business environment while promoting collaborative learning in the classroom itself. The first benefit of group work in the classroom is that it teaches students how to work collaboratively in the business environment. Business organizations repeatedly indicate that the increased use of teams in the real world has increased students need for exposure and experience with teams (Buckenmyer, 2000). Companies that use teams creatively spend many hours and dollars training individuals to work in teams and training managers to manage teams. Through working in groups, students can enhance their abilities in setting goals, delegating work, and dealing with conflict (Colbeck, Campbell, Bjorklund, 2000). They can also improve their communication, leadership, problem solving, and technical skills. All of these skills are highly rated by recruiters and employers and will help graduates meet the demands and rigors of the workplace (McNally, 1994). The second benefit of group work is that these projects promote collaborative learning. University educators have embraced cooperative learning methods as ways to engage students and to foster cooperation (Ravenscroft, 1997). Researchers have found that the values of Generation X are highly individualistic, visually-oriented, and aligned with information technology, not with the sharing of information (Buckenmyer, 2000). Thus, group course projects, with proper guidance, can help these students learn to deal effectively with others. Group work learning can be an excellent way of encouraging the development of higher cognitive skills in students (Thorley Gregory, 1994) and can be effective even for relatively quiet group members. When groups work well, students consistently fare better in class, on tests, and in attitudes towards the instructor and each other (Jones Brickner, 1996). The quality of learning is improved by peer support, with students gaining experience in communication, negotiation, organization, and task management. Cooperative methods have been recognized as effective ways to motivate students to become actively involved in learning. The collaborative group project creates a forum that allows students to take an active approach towards their own education. The security of working within a group provides an excellent entree into the progression to independent and autonomous learning (Maguire Edmondson, 2001). Problems with Group Projects The many benefits of collaborative projects, however, are often offset by problems. First, a common problem is the failure of the group to work together effectively. Students may exert an individual effort but are unable to coordinate their efforts effectively with their group members to achieve any kind of synergistic benefits (Tullar, Kaiser, Balthazard, 1998). Group members need to be contributing their ideas, questioning and learning from each other, and building on the efforts of the other members. For collaborative learning to occur, students must coordinate the diverse skills and abilities of their group members to address a complex task (Tullar et al. , 1998). A second problem is that often group members simply divide a project so that each individual writes a portion. Then, just before the project is due, the students bring in their disks and combine files without coordinating their efforts or talents effectively. Third, group work often leads to unequal contributions of members, resulting in hitchhikers and workhorses (Cottell Millis, 1993). These hitchhikers, also called free riders and social loafers, can cause problems in the workflow of the group, as they do not do their fair share. Members of the group have difficulty addressing the free-rider problem and documenting the problem and their efforts to solve it (Gremler, Hoffman, Keaveney, Wright, 2000). The issue becomes one students word against anothers as the teacher tries to determine fair individual grades. Finally, group projects are often assigned without the allocation of class time for groups to develop cooperative skills or to become cohesive (Michaelsen, 1992). There is limited time in class to discuss both the needed topics and the mechanics of group management. In many cases, groups meet on evenings and weekends when faculty members are not available for assistance. Additionally, many group members are geographically and temporally dispersed, which makes organizing face-to-face group meetings difficult. The Role of Technology in Enhancing Collaborative Learning Active and cooperative learning approaches will be counterproductive unless they are thoughtfully implemented and well supported. Communication tools like discussion boards and chat rooms can be effective in inter-team collaboration as well as in faculty-student communication. These tools can help ease the problems discussed in the previous section. By solving these problems with technology, faculty can address three learning goals: empowering students, improving their communication skills, and developing their ability to work collaboratively. Finally, these technological communication tools offer teaching opportunities by allowing faculty to be more accessible to students and to track students efforts better. Addressing Group Project Problems Internet-based tools can be a tremendous help in coordinating team efforts, particularly when the team is geographically (whether by a few miles or a few thousand miles) or temporally dispersed (Kaiser, Tullar, McKowen, 2000). With technology, groups can meet either synchronously, using chat rooms, or asynchronously, using threaded discussion boards, in which group members contribute to the group discussion at times convenient to their schedules over a defined time period. These tools enable everyone in the group to talk at the same time or at their convenience by typing their comments into the forum that instantly distributes their comments. Additionally, strong personalities have greater difficulty dominating the group as everyone has equal access to the floor. Students may feel more comfortable presenting ideas this way than in a face-to-face meeting, and the quality and professionalism of their ideas may be higher, knowing that their participation is being monitored. The discussion forum also gives all students ample time for reflection so students responses are often more thoughtful than those in face-to-face situations. Studies have illustrated this level of increased and more evenly distributed participation from students in computer-supported groups (Tullar et al. , 1998). Addressing Learning Goals Projects provide opportunities for experiential learning, that is, students apply what they have learned to real-world situations and thus develop decision-making skills. But in doing so, projects often produce anxiety as students struggle to determine what answer the instructor wants. However, with these projects, whether it be a case, a report of a business issue, or a business plan, faculty are typically not searching for one right answer, but rather are concerned with the process that students use in solving problems. Teaching students to ask the right questions is thought to be more important than giving students the right answers. In the real world, there is neither one right answer nor is there a sage on a stage that can direct students to the right answer. Students need to learn how to find and to support the answers for themselves. The use of electronic discussion boards and chat rooms can aid student learning in the struggle through the project process. Thus, three learning goals can be addressed through the use of electronic discussion boards and chat rooms with experiential group projects: (1) empowering students to become active participants in their learning, (2) increasing students communication skills in describing and solving problems, and (3) enhancing students abilities to collaborate and work with others in developing their own resources in solving problems. To achieve these goals, education must involve interactivity among instructors, students, and the materials, and electronic discussion boards and chat rooms can enrich that interactivity. Providing Additional Teaching Opportunities Another advantage of these tools is the opportunity for faculty to participate in the discussions and e-mails. Faculty can use these tools to demonstrate concern for students and to provide additional accessibility and feedback. In fact, the transactional distance encourages faculty to maintain a facilitative role rather than an authoritative role (Moore, 1993). Finally, these tools make it easier for faculty and students to keep track of what everyone has said as there is a written record (Kaiser et al. , 2000). Students have the opportunity to reorganize and reshape their understanding of course content. The Web-based tools allow thoughts to be captured for future examination, elaboration, and extension. The end result is usually more robust and thoughtful discussions. In fact, threaded discussions can extend the time that both instructors and students invest in the course (Bruce Hwang, 2001). Recommendations for Using These Tools Many universities are starting to use various computer course tools or platforms to promote online learning. These platforms, such as BlackBoard or WebCT, can be used to design either Web-based or Web-assisted courses. For several years, we have used discussion groups and chat rooms in Web-based classes but have also found that communication can be enhanced in traditional classes through use of these tools. Since more business organizations are using electronic tools, such as Lotus Notes, to facilitate group meetings, using them in the classroom helps students further prepare for their careers. However, the wise faculty member will be advised that these tools should be used judiciously. Therefore, based on our experience, the following suggestions are made to faculty who are considering the use of Web-based tools. Discussion Boards Instructors and students can compose and post messages electronically on electronic discussion boards. Both public and private discussion forums can be implemented. With many computing platforms, such as WebCT, faculty can set up public forums to start threaded discussions for the class to which the students can respond electronically. Students can use these public forums to post questions to which the entire class can respond, such as for help in finding information for the project. A project normally seems easier when the instructor is discussing it in class and few questions arise. However, students questions occasionally occur after class or on weekends. The discussion board allows the opportunity for students to post problems asynchronously and to receive input from the class. The burden is no longer on the instructor to solve every problem as it occurs but is on the students to work with each other as well as with the instructor in solving problems. This is a tremendous lesson for students to learn to deal with problem solving in the real world. When an employer gives an employee a project or task to do, he/she expects the employee to do it on his/her own and not ask for assistance from the employer every step of the way. Students have to learn to be problem solvers on their own, and the use of electronic discussion boards helps develop that skill. The professors role is to help get the conversation started. For example, the instructor can post a question on the public project discussion board asking at which sites people are having success finding information for the project. The students can then respond. Those students who respond in a useful manner will be rewarded, such as with a participation grade. Those students or groups who do not respond can be asked on the discussion board for their input. When students see the progress other students are making, they may be spurred to work harder. Additionally, the faculty need to check the discussion board frequently to see if any misinformation is being spread, to ensure netiquette is being practiced, and to restart the conversation as needed. Finally, faculty can take questions that the students ask individually and request that the students post them on the discussion board. In that way the instructor only has to respond once, and similar inquiries can then be referred to that response. This will eve ntually build a culture in the class where the instructor is not seen as the sole source for information, and the students learn to work with each other in solving problems. Additionally, instructors can create private forums to be used to divide students into groups for class exercises or for the use of asynchronous coordination of group projects in which group members cannot all meet at the same time. The instructor can visit these public and private forums to track group progress, to encourage students to help each other to solve problems, and to provide assistance as needed after the students have tried first on their own. In the private group forums, the students are encouraged to use the board to organize group meetings, to post their research findings, and to post drafts of their work for their group members to see and make comments. The professor can encourage individual group members to post their contributions to the paper to the private forum for the other members to see and post suggestions. This would increase group collaboration in a manner that can be documented. After the group has collaborated on a draft of the project, the instructor can offer suggestions. Finally, instructors should consider requiring the groups to post progress reports on their efforts periodically during the term. These progress reports describe what the group has accomplished, what the groups plans are, if there are any problems, and if there are, how they are being addressed. The instructor should provide guidelines as to what the groups should have accomplished by the progress report dates so the students can determine if they are on track. While these reports could be submitted on paper, doing it through the discussion board makes it easier for group members to be aware of what has been submitted. Chat Rooms. With chat rooms, students can meet electronically at the same time no matter where they are, as long as they have Internet access. Each group can have its own chat room, with the instructor joining in from home or office in one of several ways. The group can meet first and then have a designated time when the instructor logs in to answer questions. The instructor can leave when the questions are answered or give the group time to discuss among themselves and then check back later. For project work, it is important that instructors periodically meet with student groups to answer questions, address problems, and provide guidance. The chat room may be a useful tool in meeting with students out of class. The students can meet with the instructor for a practice chat to get the students comfortable with the technology. The instructor can request that the groups meet with him/her several times during the term to discuss their progress. These meetings can be either in the office during office hours or during designated chat office hours, such as on Sunday nights when the instructor is at home. With traditional classes, groups should have the option to meet in person with the professor, particularly early on in the project. For those students who cannot come during office hours, the chat room provides an excellent way to interact, although instructors may want to set clear boundaries or specific hours for when they are willing to meet in the chat room. When the instructor is meeting with groups via chat, patience is needed. It can be confusing when everyone is typing in questions. While the instructor prepares an answer to one question, several more students questions can appear. The instructor needs to make it clear that he/she will discuss questions in the order in which they appear. On the other hand, there may be times when the chat room is silent while the students are preparing their questions. The instructor may want to prompt to see if there are any other questions but should give the students some time if needed. Finally, no one should log off until everyone has finished. Someone may be in the middle of preparing something to post and the silence is seen as the end of the session, or someone may have left the room for a minute and has come back to find an empty chat room. Therefore, a practice chat session may be helpful with these issues. Grading Student Use of Discussion Boards and Chat Rooms Grading student responses in both the discussion forum and chat room can present challenges. Many times there may be a group grade for a project that is then adjusted for the individual students grade base on his/her contribution to the groups project. Additionally, students may be individually graded for their participation in the course. Some students will initially shy away from using the discussion board, as they would prefer to do things the way they always have and do not want to learn a new technology. Other students, particularly those who are too shy to speak up in class, may welcome this new opportunity. It is up to the instructor to provide the incentive to become involved. While a positive attitude may help the instructor in encouraging students, making posts part of their grade, such as a portion of their participation grade, probably ensures the best results. Instructor can grade the posting on several issues: clarity of thought/grammer, quality of comments/critical thinking, and usefulness/participation in responding to other posts. In evaluating the group projects to determine individual grades, instructors often have students submit group evaluations. The information on these evaluations can be substantiated or compared to what has occurred on the groups private discussion forum and what has been documented in the progress posts. If a group member is not contribution, it is the responsibility of the group to communicate this the instructor and to attempt to deal with the problem before the final project is submitted. The use of the discussion board and chat room can be a tremendous help in tracking a groups activities. This puts more responsibility on the students to document and address the issues before it is too late. It also aids instructors in making fairer assessments of individual efforts. To better manage the communication tools, instructors should set up clear guidelines for grading, such as describing how many new posts and response posts are required per week, as well as how often the students are expected to check the discussion board. For example, the professor may want each group to submit a bi-weekly progress report on its project. The instructor may also want to review netiquette as well as set limits as to how many posts students can make on public forums to avoid overwhelming the discussion board. The instructor needs to stress that it is the quality of the posts and not the quantity that counts and provide students with feedback to encourage its proper use. Finally, the instructor can also utilize student management tools that are included in the computing platforms like WebCT to determine when and how many posts the students are making. Additionally, search commands can be used to find all the posts one student has made in order to track an individual students progress. Conclusion Teamwork and group meetings are entrenched elements of an increasingly global environment. As a result, business faculty must prepare their students, as future managers, to collaborate with groups effectively. Electronic meeting tools, such as discussion boards and chat rooms, can play a key role in that training. These tools can enhance and empower student learning and collaboration as well as increase communication and problem solving skills. By collaborating more effectively in school, students will be better prepared to collaborate effectively in the workplace (Kaiser et al. , 2000). These tools also offer additional teaching benefits. They are very useful in documenting student effort and accountability for fair contribution. They also provide a means for faculty to be conveniently accessible and to provide feedback outside of class time. Additionally, electronic tools help students learn to develop their own resources. These tools then can be a tremendous aid for faculty to address group project problems, to help their students achieve learning goals, and to provide additional teaching opportunities to interact with their students. Thus, by using electronic discussion boards and chat rooms, such as with group projects, faculty can effectively enhance their students collaborative learning. References Bobbitt, L. M. , Inks, S. A. , Kemp, K. J. , Mayo, D. T. (2000). Integrating marketing courses to enhance team-based experiential learning. Journal of Marketing Education, 22(1), 15-24. Bruce, S. M. , Hwang, T. T. (2001). Web-based teacher preparation in visual impairment: Course development, teaching, learning and quality assurance. Journal of Visual Impairment Blindness, 95(10), 609-622. Buckenmyer, J. A. (2000). Using teams for class activities: Making course/classroom teams work. Journal of Education for Business, 76(2), 98-107. Cohen, G. (1993). New approaches to teams and teamwork. In J. R. Galbraith E. E. Lawler, III (Eds. ). Organizing for the future (pp. 194-226). San Francisco: Jossey-Bass. Colbeck, C. L. , Campbell, S. E. , Bjorklund, S. A. (2000, January/February). Grouping in the dark: What college students learn from group projects. The Journal of Higher Education, 71(1), 60-83. Cottell, P. G. Millis, B. (1993, Spring). Cooperative learning structures in the instruction of accounting. Issues in Accounting Education, 8, 40-59. Gremler, D. D. , Hoffman, K. D. , Keaveney, S. M. , Wright, L. K. (2000). Experiential learning exercises in services marketing courses. Journal of Marketing Education, 22(1), 35-44. Jones, J. D. , Brickner, D. (1996). Implementation of cooperative learning in a large-enrollment basic mechanics class. ASEE Annual Conference Proceedings [CD-Rom]. Kaiser, P. R. , Tuller, W. L, McKowen, D. (2000). Student team projects by Internet. Business Communication Quarterly, 63(4), 75-82. Maguire, S. , Edmondson, S. (2001). Student evaluation and assessment of group projects. Journal of Geography in Higher Education, 25(2), 209-217. McNally, J. (1994). Working in groups and teams. In L. Thorley R. Gregory (Eds. ). Using group-based learning in higher education (pp. 113-120). London: Kogan Page. Michaelsen, L. K. (1992). Team learning: A comprehensive approach for harnessing the power of small groups in higher education. To Improve the Academy, 11, 107-122. Moore, M. (1993). Theory of transactional distance. In D. Keegan (Ed. ). Theoretical principles of distance education (pp. 22-38). New York: Rutledge. Ravenscroft, S. P. (1997). In support of cooperative learning. Issues in Accounting Education, 12(1), 187-190. Reeves, T. (1996). Relevant readings. Technology in teacher education: From electronic tutor to cognitive tool. Action in Teacher Education, 27(4), 74-78. Thorley, L. , Gregory, R. (Eds. ) (1994). Using Group-based Learning in Higher Education. London: Kogan Page. Tullar, W. L. , Kaiser, P. R. , Balthazard, P. A. (1998). Group work and electronic meeting systems: From boardroom to classroom. Business Communication Quarterly, 61(4), 53-65. Address correspondence to Jacqueline K. Eastman, Department of Marketing/Economics, College of Business Administration, Valdosta State University, Valdosta GA 31698 (e-mail: [emailprotected] edu).

Government Bond Market in Nigeria

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