Mirabell and Millament Relationship Essay Example for Free

Mirabell and Millament Relationship Essay In The Way of the World, his last comedy, Congreve seems to come to realise the importance for providing an ideal pair of man and woman, ideal in the sense that the pair could be taken for models in the life-style of the period. But this was almost impossible task, where the stage was occupied by men and women, sophisticated, immoral, regardless of the larger world around them, and preoccupied with the self-conceited rhetoric as an weapon to justify their immoral activities within a small and restricted area of social operation. Congreve could not avoid this, and for this, he had to pave his way through the society by presenting a plot which, though complicated enough for a resolution, aims at the ideal union between the hero and heroine—Mirabell and Millament. They emerge as the triumphant culmination of the representative characters of the whole period, of course not types, for they are real enough to be human. Congreve endowed his hero and heroine with all the qualities typical of the society, but towards the end the qualities, if negative, are employed as guards against the venoms of the society. At the beginning of the play, we find Mirabell shaping up a situation so that he can win the hands of Millament and her estate as well from Lady Wishfort who has the rein of power over them. In this Mirabell is perfect Machiavellian: conscious of his surroundings. He is not at all a man from chivalric romance. That he is a past master in the game of love, of course, in the sense of the period, that is, sexual relationship—is evident from his past affairs with Mrs. Fainall, from Mrs. Marwood’s fascination towards him and, one many suspect, from Lady Wishfort’s unconscious longing for him. Moreover, Mirabell has mastered rhetoric to encounter men and women around them. Consistent with the irresistible charm of Mirabell, Congreve built the character of Millament. She is the perfect model of the accomplished fine lady of high life, who arrives at the height of indifference to everything from the height of satisfaction. To her pleasure is as familiar as the air she draws; elegance worn as a part of her dress; wit the habitual language which she hears and speaks. She has nothing to fear from her own caprices, being the only law to herself. As to the affairs of love, she treats them with at once seriousness and difference. For instance, she exclaims to Mirabell: â€Å"Dear me, what is a lover that it can give? One makes lovers as fast as one pleases, and they live as long as one pleases, and they die as soon as one pleases; and if one pleases one makes more. † This, however, may be a case for Millament who is â€Å"standing at the threshold of maturity from girlhood†, as Norman N. Holland points out. But from her discussion of preconditions before entering into marriage with Mirabell, it is clear that she is intelligent and discrete enough to judge her situation. In the Proviso Scene we find Mirabell and Millament meeting together to arrange an agreement for their marriage. The scene is a pure comedy with brilliant display of wit by both of them, but, above all, provides instructions which have serious dimensions in the context of the society. On her part, Millament makes it clear that a lover’s (Mirabell’s) appeals and entreaties should not stop with the marriage ceremony. Therefore, she would like to be ‘solicited’ even after marriage. She next puts that â€Å"My dear liberty† should be preserved; â€Å"I’ll lye abed in a morning as long as I please†¦Ã¢â‚¬  Millament then informs that she would not like to be addressed by such names as â€Å"wife, spouse, my dear, joy, jewel, love, sweet-heart; and the rest of that nauseous can, in which men and their wives are so fulsomely familiar. † Moreover, they will continue to present a decorous appearance in public, and she will have free communication with others. In other words, after marriage they maintain certain distance and reserve between them. Mirabell’s conditions are quite different: they are frankly sexual in content, directed to his not being cuckolded or to her bedroom manners. â€Å"Just as Millament’s are developed femininely† as Norman N. Holland points out, â€Å"Mirabell’s are developed in a typically masculine way. † Each of Mirabell’s provisos begin with its item: first, the general principle, â€Å"that your Acquaintance be general†, then specific instructions, â€Å"no she-friend to screen her affairs†, no fop to take her to the theatre secretly, and an illustration of the forbidden behaviour, â€Å"to wheedle you a fop-scrambling to the play in a mask†. Nevertheless, Mirabell denounces the use of tight dresses during pregnancy by women, and he forbids the use of alcoholic drinks. The conditions are stated by both parties in a spirit of fun and gaiety, but the fact remained that both are striving to arrive at some kind of mutual understanding. While the Proviso Scene ensures the marriage of true minds, the possession of dowry with Millament remains the aim of Mirabell for the rest of the play. At the end of the play Mirabell and Millament through their own peculiar balance of wit and generosity of spirit, reduce the bumbling Witwood and mordant Fainall to the level of false wit. Thus Mirabell and Millament dramatise the true wit that is so carefully and symmetrically defined through opposition. On his part, Mirabell informs that, â€Å"†¦I like her with all her faults: nay, like her for her faults†¦They now to grown as familiar to me as my own frailties†¦Ã¢â‚¬  And Millament declares to Mrs. Fainall, â€Å"Well, if Mirabell should not make a good husband, I am a lost thing—for I find I love him violently. † These confidences do not prevent their own chances for honesty in marriage. The triumph of the play is in the emergence of lovers who through a balance of intense affection and cool self-knowledge achieve an equilibrium that frees them from the world’s power. As the title of the play The Way of the World suggests, they have assimilated the rational lucidity of sceptical rake so that they can use the world and reject its demands.

Bluest Eye :: essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  Toni Morrison’s The Bluest Eye reveals the trauma of an eleven-year-old African-American girl named Pecola Breedlove. This story takes place in the town of Lorain, Ohio during the 1940’s. It is told from the perspective of a young girl named Claudia MacTeer. She and her sister, Frieda, become witness to the terrible path that Pecola is forced to endure because she is not considered beautiful by society. Pecola chooses to hide from life behind her clouded dream of having the bluest of eyes so that those around her will view her as beautiful as the light skinned, blond haired, blue eyed girls that got so much favoritism. The Breedlove’s constant bickering and ever growing poverty contributes to the emotional downfall of this little girl. Pecola’s misery and insecurity is caused by her father’s hand and the community’s struggle with racial separation, anger, and ignorance. â€Å"Characters in the black community accept thei r status as the Other, which has been imposed upon them by the white community. In turn, blacks assign the status of Other to individuals like Pecola within the black community (Toni Morrison).† Her innocence is harshly ripped from her grasp as her father rapes her. The community’s anger with it’s own insecurities is taken out on this poor, ugly, black, non-ideal young girl. She shields herself from this sorrow behind her obsessive plea for blue eyes. Her eyes do not replace the pain of carrying her fleeing father’s baby, nor do they protect her from the sideways glances of her neighbors. Though this book discuses negative and disturbing situations, it teaches a very positive lesson about the importance of self respect and positive thinking.   Ã‚  Ã‚  Ã‚  Ã‚  The Bluest Eye explores how outside influences affect one’s own sense of beauty and how it is harmful to consider yourself ugly. This theme seems to follow the conclusion of Brown v. Board of Education, that when a society presents the idea of beauty in certain way, those who do not fit into that image are â€Å"susceptible to low self esteem, hatred of their own racial lineage, and preferences towards whites (Tushnet).† Toni Morrison shows this through each of her characters in this novel. For example, when Claudia, Frieda, Pecola, and Maureen Peal, a white snob, are walking home from school the girls begin to bicker. Their conversation ends with Maureen stomping away and establishing the fact that she is indeed â€Å"cute,† implying that they most definitely are not.

Eradicating Extreme Poverty And Hunger Essay

Hunger is one of the determinants of poverty in Africa. Hunger leads to poor health, high mortality rate, low productivity and extreme societal disability. I highly believe that if only we could work on food security in countries like Africa, we could be way up above making half of the world’s poverty level to decrease. Business could go a long way towards assisting this. People here are facing the two prime and significant problems – Extreme Poverty and Hunger. Have you seen the children and adults of Somalia, Uganda, and Congo; all of them are malnourished and suffer from different diseases due to malnourishment – by the gift of starvation and poverty. These are some of the poorest people in the world. Sucked into the cities in search of work, they live in shacks made of corrugated iron, near an open sewer. Though poverty is now in decline in Bangladesh, malnutrition rates are still among the highest anywhere in the world. One in every six people in the world lives on less than a dollar, or 65p, a day, and more than 800 million people are malnourished. The people you see in these TV and newspaper pictures just happen to have been born in the wrong place. While we drink clean tap water, they drink water from a sewage-infested river. While we consume more than is good for us, they eat rice with a little chicken skin if they are lucky. We can’t help having been born here and not there; we can’t stop eating or drinking or shopping. But if people in our street didn’t have enough to eat, we would share our food with them. Just because poverty is a long way away doesn’t mean there is nothing we can do to tackle it. In 2000, world leaders made a promise to eliminate half of the extreme poverty levels and the number of malnourished people by 2015. They can do it – but only if we keep up the pressure. As Nelson Mandela said: â€Å"Ending poverty isn’t about charity. It’s about justice. † This goal aims to reduce by half the number of people whose income is less than $1 a day, and those who suffer from hunger. In southern Sudan, drought and the effects of 20 years of conflict led to a severe food shortage in 2002, with many children very malnourished. An NGO called TEARFUND responded to this emergency with a new approach called community-based therapeutic care. Traditional feeding programmes treat children suffering from severe malnutrition in feeding centres. Children and their careers usually stay in the centre, so only a limited number can be treated at any time. This new community-based approach involves setting up many smaller distribution points, often in remote areas. Local people help build and staff them. All the malnourished children admitted to the programme are examined. If they have a healthy appetite and no medical complications, they are given supplies of a special food called Plumpynut and sent home, to be looked after by their mothers. They get regular supplies of Plumpynut from the local distribution point when they go for a weekly check up. This community-based approach reduces the time mothers have to spend away from their other children, and from their household and farming work. This was especially appreciated at the start of the planting season. Plumpynut also proved very popular with the children. Severely malnourished children with serious health problems or no appetite are admitted to a stabilization centre for medical care until they have recovered enough to return home. This new community-based approach was a success in South Sudan, and very popular with local people. The programme was able to cover a much wider area. Hundreds more children were treated than in previous, centralized programmes. There was a high recovery rate and a very low mortality rate. Nurses who had spent over five years in feeding programmes initially found it strange to let severely malnourished children leave the treatment centre. However, they soon became the strongest advocates for the new approach. Mothers attending the distribution points also received health education and supplies of seeds. Some have now formed women’s groups that meet each week to receive further health education. Alleviating hunger and poverty has been and continues to be the pre-dominant policy challenge facing global and national decision makers. Here we argue that policy interventions for addressing this challenge should be designed in the context of emerging global, regional and national trends. We discuss four major trends that are shaping the future food economy and consequently the prospects for meeting the hunger and poverty goals. These trends are: i) Rapid urbanization in the developing world and its impact on food markets. ii) Increasing integration of global food markets through trade. iii) Deterioration of natural resource base and the degradation of the global and local commons; and iv) Rising transactions costs in the acquisition and use of science and technology for development. Other ideas to meet eradicate poverty and hunger are as follows – Encourage access to micro-credit; provide free school meals for all school children, using locally produced foods; improve soil fertility through adding manure, making compost and using green manures; plant trees like moringa and leuceana that add nutrients to the soil; and encourage the use of door-sized home gardens. At the turn of the new millennium, 147 nations agreed they had the resources and the political will to eradicate the extreme poverty, hunger and disease that kills millions of people each year in the poorest parts of the world. UNDP also mentioned that seven years ago the world came together and committed to tackle poverty in all its forms and work to build a better world for everyone. This vision was encapsulated in the Millennium Declaration and the eight Millennium Development Goals that emerged from it, which include halving the number of people living in extreme poverty and hunger by the year 2015; achieving universal primary education; promoting gender equality and women’s empowerment; reducing child and maternal mortality; combating HIV/AIDS and other diseases and ensuring environmental sustainability. These Goals are underpinned by a commitment to build a global partnership for development, a compact between poor countries that commit to focus on reducing poverty, and the richer world that commits to be an active partner in supporting developing country efforts. The MDGs represent an internationally agreed set of goals that can be achieved if all actors work together and do their part. Now, at the midpoint towards the 2015 target, it is clear that significant progress has been made in many areas. The number of people living on less than one dollar a day has fallen by roughly 250 million people and so, at the global level at least, it looks like we will meet the goal to halve extreme poverty and hunger. In some regions more children are in school – both girls and boys – and people can expect to live longer and more productive lives. However this is not happening in all parts of the world. As I saw in my visit to Mozambique, Tanzania and Rwanda last week, while many African countries are making real progress in the fight against poverty, the challenge of achieving the MDGs and other development objectives in sub-Saharan Africa is particularly acute, where only some countries are progressing sufficiently to achieve some of the Goals. Today, worldwide, more than one billion people still lack access to safe drinking water; 6,000 people die of HIV and AIDS each day; and more than 750 million adults cannot read – half a billion of them women. The impact of climate change also poses a particularly daunting challenge to many developing countries, especially the poorest. But this picture does not have to remain the same. Many of the Goals remain eminently achievable in the vast majority of countries. For this to happen, though, two crucial aspects of the partnership for development must be respected. The first relates to the theme for the Eradication of Poverty: ‘People living in poverty as agents of change’, where it is clear that developing countries themselves should own their development process and that UNDP’s role is to help build the capacity to empower them to take charge of their own development. It also means that the support we provide will be more effective as it will be given in support of the priorities of poor people, and on their own terms. The idea that people living in poverty are agents of their own change can be applied at the local level, but also extends through the national level where people can get involved in monitoring policies and reviewing budgets, as well as at the international level where poorer countries must be able to contribute fully to the global institutions and processes that can shape progress in their country. The second component of the partnership is that while poor people must be in the driving seat of their development, we have also committed to provide them with the necessary support. Implementing the commitments that the international community has already made – on increasing and improving aid, dealing comprehensively with the debt problems facing developing countries, and delivering a trading system that puts the needs of poor countries at its heart – would go a very long way in ensuring that the MDGs can be met. The policies and actions of all countries on issues such as the environment and migration must also be made as supportive as possible of development, lest we give with one hand and take away with the other. For the Eradication of Poverty we should recommit to achieving the MDGs as a whole, and to these two components in particular in the fight against poverty, so that the world can come as close as possible to achieving the ambitious Goals that has been set for 2015. Former UN Secretary General Kofi Annan also had said that – Today called for simultaneous action on both issues, warning that it will be impossible to eradicate one blight without the other. â€Å"Hunger and poverty are ugly siblings. You cannot get rid of either unless you tackle the other as well†¦ Hunger, after all, is both a source and a consequence of extreme poverty. A hungry man cannot think beyond his next meal†¦ This has devastating consequences for the economic and social development of society as a whole,† Mr. Annan told government representatives and other officials at UN Headquarters. â€Å"The world has the resources and the know-how to make hunger history. What we need is political will and resolve. Let us renew our pledge to work together towards the day when no man, woman or child goes to sleep hungry. Let us resolve to win the fight against hunger once and for all. And I think that, with determination, resolve and will, it can be done. † Mr. Annan repeated that the theme to eradicate poverty and hunger is the need to bolster agriculture, noting that more than two thirds of the world’s hungry live in rural areas, and increased investment in agriculture is one of the most effective means to help them. He also made a warning that the world has made insufficient progress towards the Millennium Development Goals (MDGs), particularly goal number one for eradicating extreme poverty and hunger by 2015. Anyhow, global poverty and hunger are issues that affect all of us. Almost a billion people live on less than $1 a day and approximately half of the world population lives on less than $2 a day (United Nations, 2007). Since 1990, 270 million people throughout the world have died from poverty-related causes. Realizing that there are a little over 300 million people living in the United States, the figure of 270 million deaths is staggering. The majority of those that died were women and children. Every three seconds a child dies of hunger and preventable diseases (Bedell, 2005). According to CARE (2007), an organization committed to fighting global poverty and helping people become self-sufficient, more than 840 million people in the world suffer from malnutrition. Of those people, more than 153 million are children under age 5, and tragically, six million of those children will die because of hunger. In 2000, the Millennium Declaration was adopted by 189 member nations of the United Nations. These countries committed to achieving eight Millennium Development Goals (MDGs) by 2015 to improve the quality of life in developing countries. Goal 1 is to eradicate extreme poverty and hunger. Even though the international poverty line is being redrawn, the current poverty line has been set at an income of $1. 08 per day. The poverty line is the minimum income level to meet basic needs. The poverty line varies in different countries such as the United States. Nevertheless, the goal is to reduce by one-half the number of people worldwide earning less than $1 per day. Without financial resources, basic needs such as food, water, shelter, hygiene, education, and access to health care cannot be met. Poverty is multidimensional and affects the person’s well-being and sense of worth. According to a woman in Tiraspol, Moldova, â€Å"For a poor person everything is terrible–illness, humiliation, shame. We are cripples; we are afraid of everything; we depend on everyone. No one needs us. We are like garbage that everyone wants to get rid of† (study conducted by World Bank Group, 2007). Some progress is being made to meet Goal 1 as the number of people in developing countries that are living on less than $1 per day decreased from 1. 25 billion in 1990 to 980 million in 2004 (United Nations, 2007). However, according to the 2007 Millennium Development Goals Report, the sub-Saharan countries are making progress but are not on target to meet Goal 1. Poverty rates in western Asia increased. Poor progress has been made to decrease childhood hunger in sub-Saharan countries and southern Asia. Efforts will need to be accelerated to meet Goal 1. Because the MDGs are interrelated, it is important to be aware of all of goals. They are: 1. Eradicate extreme poverty and hunger. 2. Achieve universal primary education. 3. Promote gender equality and empower women. 4. Reduce child mortality. 5. Improve maternal health. 6. Combat HIV/AIDS, malaria, and other diseases. 7. Ensure environmental sustainability. 8. Develop a global partnership for development. Fighting Hunger, Poverty, and Injustice The International Council of Nurses conference in Yokohama, Japan, this summer, also discussed about other international efforts to eradicate poverty and hunger. One of the presenters at the conference was Barbara Stocking, director of Oxfam International, an organization dedicated to fighting poverty and injustice worldwide. Her presentation included content about the devastating effects of poverty and hunger. As you might expect, her photographs and stories of many of the people suffering from hunger and poverty were particularly poignant. As the late Dr. Martin Luther King said: â€Å"We have the resources to get rid of poverty. There is no deficit in human resources. The deficit is in human will. † So let us work towards make the world a beautiful place

Aging Schedule of Accounts Receivable - 1396 Words

ANSWERS TO QUESTIONS: 1. Table 1: Aging Schedule of Accounts Receivable AGE OF ACCOUNT | BALANCE OUTSTANDING | % OF TOTAL BALANCE OUTSTANDING | 0-15 days | $ 20,000 | 19.59 % | 16-30 days | 30,000 | 29.39 | 31-60 days | 40,000 | 39.19 | 61-90 days | 10,000 | 9.80 | Beyond 90 days | 2,071 | 2.03 | TOTAL | $ 102,071 | 100.0 % | 2. To evaluate the credit quality of Aero-Strip’s accounts receivables portfolio, we turn to their average collection period (ACP) and aging of accounts receivable. Knowing the ACP enables the firm to determine whether there is a general problem with the accounts receivable. The firm has credit terms of 2/10, net 30 so it would expect its ACP to equal about 30 days. Calculating the ACP of the†¦show more content†¦If Aero-Strip decides to sell its new invoices to a factor, the total financing available for 90 days is $ 35,200. CUSTOMER | AMOUNT | Ace Aviation, Inc.Express ShuttleLomax CharterMiller Aerial SurveyingPointers Aviation, Inc. | $ 7,290 18,554 2,497 13,121 8,532 | TOTAL | $ 50,000 | $ 50,000- ($50,000 x 80%)= $ 40,000 Less: reserve ($40,000 x 10%) 4,000 Commission ($40,000 x 2%) 800 TOTAL FINANCING $ 35,200 6. Effective Annual Rate=Total interest paid+Toal fees paidUsabel fundsÃâ€"36590 a. i=9%36590=2.22% Total interest paid=2.22% Ãâ€" $58,668.49=$ 1,301.96 EAR= $ 1,301.96$58,668.49Ãâ€" 36590=9% b. i= 8%36590=1.97% Total interest paid=1.97% Ãâ€"$35,200=$694.36 EAR= $ 694.36+$800$35,200Ãâ€"36590=17.22% The effective annual rate for pledging accounts receivable and factoring accounts receivable is 9% and 17.22%, respectively. 7. If I were to represent the commercial bank I would tell Howard that pledging his accounts receivable is better than factoring because there will be no transfer of the ownership of the accounts receivable and customer remittances will go directly to the company. In addition, hiring a credit manager would beShow MoreRelatedAnalysis Of Accounts Receivable Balances893 Words   |  4 PagesInterpretation of the Receivables Data Accounts receivable balances Accounts receivables balances are the uncollected amounts as at a specific point in time. For instance, for year one, first quarter at end of March, the balance is $ 386,875 and for the second quarter it is $ 333,000. For the second year, it is estimated that the balance as at end of March and June shall be $ 449,000 and $ 395,125 respectively. Average collection period (ACP) The average collection period is the average number ofRead MoreCase 27 - Finance1395 Words   |  6 PagesCase 27 1. For this question, ignore the forecasted receivables collection pattern in Exhibit 27.4. Using paper and pencil (do NOT use the template), calculate the projected ACP and average daily sales (ADS) under the following conditions: 30% of customers pay on the 10th day 50% of customers pay on the 30th day 20% of customers pay on the 60th day 800,000 units sold per year @ $5 per unit = $4,000,000/360 Remember, since there are no balance sheets or operating statements, you will haveRead MoreGoal Cash Management981 Words   |  4 Pagesof timely payment discounts. One method to control distribution is a zero-balance account. A zero-balance account is a bank account have a zero balance. Funds are transferred from a master account as needed to cover checks written. The funds can remain in an interest bearing account as long as possible (p 604). 16.5) Average collection period is the average length of time it takes a business to collect its receivables (p 615). ACP is used to monitor revenue cycle performance by (p 615): Allowing aRead MoreAcc/291 Week 11178 Words   |  5 Pagesdisposition of accounts receivables? What is their function? Since the majority of US thrive on the use of credit cards, the accounts receivables for a company may no longer be on a cash-to-cash basis. A company may need to sell these accounts to other companies who specialize in handling accounts receivables if they need cash more quickly or if it would be too costly to perform the necessary billing to collect on the account. The entries used to record the disposition when the receivables are soldRead MoreChapter 5 Assinment Essay973 Words   |  4 Pagesprojected average receivables level? d) If Tyler is estimating a gross profit margin, or contribution margin, of 40 percent, how much of the receivables balance must actually be financed? What would Texas Rose’s balance sheet figures for accounts receivable and notes payable be at the end of the year if notes payable are used to finance the investment in receivables? e) If short-term bank loans cost 12 percent, what is the projected annual cost of carrying the receivables? a. DSO=10*30%+30*55%+60*15%=3+16Read MoreThe, Oxley Act ( Sox )882 Words   |  4 Pagesrequires companies to accurately report the value of all assets including accounts receivables. A big part of accurately representing the value of accounts receivable is to account for the bad debts that may not be collected. According to Generally Accepted Accounting Principles (GAAP), bad debts must be recognized as an expense in the same period as the revenue is recognized (Narayanan). Using the direct write-off method to account for bad debt does not comply with this standard. Two allowance methodsRead MoreThe First Day Of Internship1143 Words   |  5 Pagesautomatically set limits on material misstatement that was $78,800 and I marked any accounts in trial balance above its amounts. Jan 12: I started auditing cash transaction of a property management company located in Fresno. There were petty cash, operating cash account, saving account, and reserve account. To investigate fraud or material misstatement, I firstly checked to verify the balance of each cash account and the balance of each confirmation from bank. I also examined client’s year-end balanceRead MoreThe Healthcare Delivery Landscape Is Dramatically Changing1004 Words   |  5 Pagesexperiences throughout the revenue cycle chain. 2.Statistical scoring provides an accurate, reliable tool for assessing liquidity and determining which accounts are best managed in-house and which deserve early consideration for outside placement with primary collection agents and/or selling aged accounts receivables on a pre-determined schedule. 3.Experienced third party medical debt recovery agents utilizing BI stand to achieve higher recovery rates based on historical data and predictive scoringRead MoreAccounts Receivable Management11518 Words   |  47 PagesAN EVALUATION OF ACCOUNTS RECEIVABLE MANAGEMENT BY MANUFACTURING FIRMS IN NAKURU MUNICIPALITY [pic] RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE IN BACHELOR OF COMMERCE (ACCOUNTING OPTION) SCHOOL OF BUSINESS KABARAK UNIVERSITY APRIL 2008 DECLARATION This research project is our original work and has not been presented for the award of any diploma or degree in any other university or college or any other institution of higher learning. Signature______________________________Read MoreThe Reduction Of A / R Days862 Words   |  4 Pagesand correction of these issues will keep the doors of the facility open. The key players and activities that will commence are I. Accounting/Finance Department a. Differentiate current accounts receivable and classify them as current or unresolved b. Aging of Accounts Receivable Schedule Preparation c. Identify contributing factor of the average collection period that are within the controls of hospital management d. Assess current credit collection policies, standards, and

Finance -the Market Essay - 1097 Words

Finance 1. How can changes in foreign exchange rates affect the profitability of financial institutions? Foreign exchange rate determines the price exchange of two currencies. Changes in these rates affects the amount of goods and services import and export of a country. When a country currency is stronger, it is now exchanged for more goods than before, and once the currency is weaker, less of goods are purchased for the same amount of the currency. Financial institutions use the exchange rates changes to decide whether to buy/sell financial assets such as bonds, stocks, etc. That means, they will buy and sell foreign assets to gain profit. The value of these assets increases or decreases as the exchange rates change. If the dollar†¦show more content†¦When the economy is expanding, the spin of money is faster where income of individuals and business increases, and so there’s more likelihood to spend money than before the expansion. For that reason, all stays equal, businesses would want to take advantage of this condition, and would raise funds to pay for new investme nts, which will raise the supply of bonds in the market. At a similar rate, the effect of the economy expansion (the increase in jobs, income, and savings of potential investors) on the demand for bond in the market will be positive. More people can afford and are able to buy bonds for investments. Therefore, economy expansion increase demand and supply of bonds. If excess of demand for bonds is over supply, the price of bond will increase due to insufficient supply, and so interest rates will fall. If excess of supply of bonds is over demand, the price of bonds will fall and thus interest rate will rise. 5. Consider the decision to purchase either a 5-year corporate bond or a 5-year municipal bond. The corporate is a 12% annual coupon bond with a par value of $1000. It is currently yielding 11.5%. The municipal bond has an 8.5% annual coupon and a par value of $1000. It is currently yielding 7%. Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 35%. Municipal bond: PV=Show MoreRelatedFinance in International Markets12499 Words   |  50 PagesFINC/ECON 3240 - International Finance Homework Solution Chapter 1 2. Comparative Advantage. a. Explain how the theory of comparative advantage relates to the need for international business. ANSWER: The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. Consequently, there is a need for international business. b. Explain how the product cycle theory relates to the growth of anRead MoreThe Islamic Finance and The Sukuk Market1800 Words   |  7 PagesCHAPTER 1: INTRODUCTION 1.1 OVERVIEW The Islamic finance industry has been evolving and growing rapidly for the past decade. The recent global financial meltdown has open opportunity to Islamic finance to offer a new outlooks and effective solutions to economics problems. Economists are now looking to the east, learning lessons and seeing advantage of Islamic finance. Since then, serious research on Islamic financial system has been carried out and Islamic financial system has been an interestingRead MoreForeign Finance And Derivatives Markets944 Words   |  4 PagesInfluenced by my, who has invested in the capital market for nearly twenty years, I have targeted investment banking as my preferred career goal. I studied Finance as an exchange student at Imperial College Business School this summer. In International Finance and Derivative Markets classes, I was totally obsessed by the dancing figures and logical charts in the financial world. 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Solid As A Rock free essay sample

Sometimes, when I am trapped in a crowded waiting room or public transportation, I like to look at the signs and make new words out of their letters. First I see if I can discern smaller words in the headlines (such as the disc in discern), but other times I try to count the number of times each letter appears, or even rearrange them to create totally new words. This habit has to do with the way I view life, as well as one of my lifelong hobbies. We dont see things as they are; we see them as we are. This quote, which is from the Talmud, illustrates how I look at situations. Like the tendency of my mind to change words from how they really are, I often struggle to find appropriateness for my actions. Sometimes I grossly underestimate or overestimate the urgency of a situation. When its time to go out, I have been known to jump into the shower, get one more piece of jewelry, or stop to call a friend. We will write a custom essay sample on Solid As A Rock or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page One activity that helps me to find appropriateness is my writing. Letters that are set down never change, but my opinion or take on a certain problem definitely does. This was never more illustrated than during my third year on the editorial staff of the Lincoln-Sudbury Fountain literary magazine. During meetings, the Fountain editors discussed anonymous submissions from our classmates before deciding to accept or reject. We read prose that described walks through the woods and rippling lakes, but we also received submissions that talked about every emotional issue from racism to family relationships to finding ones sexuality. Like the letters on the waiting room signs that change their meaning, the Fountain transfigured itself into a more personal magazine by the rearrangement of words. I feel that I also have gone through a great deal of transformation, not just in my writing, but in my personal expression and opinions. Every day I listen to other peoples rearrangements their critiques of me as well as my own and try to form a final opinion of myself. I wrote the following poem when I was in the fourth grade. The poem has stayed the same, but the rock and I are both changing: The side view a sky blue parallelogram. The top, a darker blue. The bottom, white. Or is it the other way around? How can you tell which side is which on a painted rock? You can only guess and imagine Light blue, the sky on a peaceful day. A darker blue, my bag. White, the clouds, another part of blue sky. Paint covers what was once covered with dirt. There are red spots on a white background. They are not meant to be there, but they make the rock more colorful. Red the horizon. Not smooth, not bumpy, but in-between. Memories of painting rocks that come from outside, from the ground. Size-small, but medium compared to other rocks. All this from a single rock, Its sides unknown. Every year when I read my poem, I see another rock. I then remember the image of the rock that I saw before. Like a painted rock that has endured many coatings and colors, I have tried on many styles and friends. The contradiction is that, through the permutations and images, there are still only 26 letters and only one of myself. The principle of there being only one rock of its kind, despite the different ways in which a person can see it, goes beyond the alphabet or my personality. That the specific object or situation stays the same, that the reorganized street signs always go back to their original words and that the rock always retains its solid shape is a concept that consoles me whenever I begin a new experience or encounter a new phase of rearranging. Instead of becoming a totally new person, whenever I discard or pick up a new point of view, the remnants still stick with me like a peeled-off sticker that leaves behind a mark of its shape.

The Impact of the Global Financial Crisis in Bangladesh Essay Example

The Impact of the Global Financial Crisis in Bangladesh Essay The Impact of the Global Financial Crisis in Bangladesh 20-Aug-2010 Prepared by Mojadda Alfa Azam ID. : 10916047 Dept. : Accounting Information System EMBA, DU Course name: Micro Macro Economics Course no. : 4102 Acknowledgements I would like to give thanks to Prof. Dr. Tahmina Khatun, professor of AIS Department, EMBA, DU, for her continuous guidance and supreme supervision throughout the course. I am solely responsible for any remaining errors. Finally all praise to Almighty Allah for giving us the strength and courage to complete the course. . Background and Objectives Political instability, natural disasters, the global food and fuel price hikes: Bangladesh’s economy has withstood several challenges since 2006. The global financial and economic crisis is another challenge that is testing its resilience coming on top of the former adversities. The global financial crisis started in mid-2007 has culminated in widespread financial stress among major financial institutions si nce September 2008. The economic downturn has now degenerated into recession. Projections of the gross domestic product (GDP) provide a gloomy picture for 2009. The 2009 world growth forecast has been revised downward by 1. 0-1. 5 percentage points to -1. 0 to -0. 5 percent in March 2009 compared with the last IMF projection of 0. 5 percent made in January 20093. While developed countries were the first hit by the recession, developing and least developed countries (LDCs) have also started to feel the consequences of the crisis on commodity prices, trade volumes, access to international financial markets and job losses, though to various degrees. These developments have led to shifting the debate from the causes to the consequences and policy actions required to mitigate the adverse impacts of the crisis. 1. 1. The Legacy of the High Food Prices As most of the developing countries, Bangladesh has no hiding place as the impact of the global financial crisis could compound the impacts of the food price rises. Although the recent food security situation cannot be attributed solely to the food price rises, there is evidence in the literature that the food price crisis has sent a substantial number of households back to poverty, after a decade of progress. We will write a custom essay sample on The Impact of the Global Financial Crisis in Bangladesh specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Impact of the Global Financial Crisis in Bangladesh specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Impact of the Global Financial Crisis in Bangladesh specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The recent joint WFP/UNICEF/IPHN household survey suggests that 25 percent of the population has become food insecure as of December 2008, as many as the food poverty percentage of 1995-96. The most affected households are overwhelmingly headed by female (38 percent food insecure), they have higher dependency ratio (45 percent), the head of households are less educated (70 percent), and they have less assets (asset score of 4 against a national average of 9. 4). In terms of livelihood, household have barely 1 income earner (1. 8 on average), depend on agriculture wage labor (23. 7 percent), non agriculture wage labor (19. 1 percent) and casual labor (5. 2 percent). Most of them are landless (48. 6 percent) and net food buyers (39. 6 percent). The highest increases in the proportion of net food buyer households are non-agriculture wage laborers (59 percent), remittances earners (53 percent) and casual workers (55 percent). Female headed households included a much higher increase of th e proportion of net food buyer (64 percent) compared to male headed households (26 percent). On average, households spend 62. 2 percent of their budget on food, up from 52 percent in 2005. Unfortunately, such an increase of the food budget share is made possible at a high opportunity cost, using multiple coping mechanisms. In addition to eating less than 3 meals a day for adults and less than 4 meals a day for children under 5, 22 percent of households recourse to negative coping mechanisms such as cutting expenditure on health and 33 percent of them getting further indebted from the financial institutions. As a consequence, severe malnutrition rates increased. Severe acute malnutrition rate increased to 3. 4 percent in end-2008 from 2. 9 percent in 2007; severe underweight increased from 11. 8 to 12. 3 percent; and severe stunting increased from 16. 1 percent in 2007 to 20. 1 percent in end-2008 While the recent downturn of commodity prices may be seen as a relief for some of the affected households, the recession is likely to further worsen the situation of the most affected households who depend on agriculture and non-agriculture wage labor and casual labor. A review of literature by the Centre for Policy Dialogue (CPD, 2009) reveals that the most vulnerable areas to the global financial crisis in Bangladesh are likely to be export- oriented sectors, manpower export, remittance and domestic resource mobilization. The livelihoods in these areas are the most affected by the food price rises. Bangladesh’s foreign exchange rely mainly on workers’ remittances (10 percent of the GDP) and ready-made garment (RMG) exports (more than 75 percent of total exports). 1. 2. Objectives of the Case Study Against this background, WFP initiated a rapid assessment of the impact of the financial crisis on households’ food security and livelihoods to enable better preparedness and appropriate and effective responses. This rapid assessment is part of a series of WFP country case studies to elicit how the global financial crisis is manifested in Bangladesh at macro-economic level as well as how the macro-level impacts are manifested on households’ living conditions4. More specifically, the assessment aims at: Understanding how the global financial crisis is being transmitted to the Bangladesh economy, particularly the performance of the channels through which the crisis is being transmitted. †¢ Assessing the extent to which the pass-through effects is trickling down at the household level, through key indicators such as remittances, wages, employment and commodity prices and ultimately the living conditions of households. †¢ Proposing act ions to strengthen responses and monitoring. 2 Methodology and Limitations In order to capture the impact of the current global financial crisis on households both secondary data analysis (SDA) and primary data collection are conducted. The assessment reviewed secondary data available and then conducted primary data. 2. 1. Data Collection, Collation and Review The SDA reviewed literature on the impact of the global financial crisis both at macro-economic level and on households’ incomes sources and food security. This information was used to provide an overview of the macro- economic vulnerability with insights into the country’s recent macro-economic performance. The macro-level analysis also aimed at gaining insights into how the global financial crisis transmits to the domestic economy. Key informants (KI) interviews were held from 12-18 March with senior government officials, development partners, NGOs, research institutions and leading members of the private sector (annex 1) to triangulate the secondary data review. The primary data collection was carried out through focus group discussions (FGD). The FGD helped to apprehend how households have been affected so far by the global financial crisis. They provided perceptions of vulnerability, including sources of incomes, expenditures, coping strategies, priority needs and responses, discriminated by sex. They also guided the discussions on the changes which occurred within the last few months. The field work took place between 22 March and April 04, 2009. Forty FGD were held (annex 2). Survey areas were identified through literature review of the dominant livelihoods that are most likely to be affected by the global financial crisis. Hence, areas with high concentration of migration and dependent on remittances in the North East and South East, areas with high concentration of agricultural labor and cash crops such as tea estates in the North East and shrimp farms in the South West and areas with high concentration of non agricultural unskilled labor (e. g. , garment industry) of the two biggest cities Dhaka (capital city) and Chittagong where selected. Two more locations were selected in Khulna and Rajshahi as control groups in both rural and urban areas to represent other categories of casual labor. From each selected location, two FGDs (female and male) were selected and interviewed separately. FGD participants were identified with the help of key informants (village heads, health and education workers, government employees) in each selected location. A team of five members comprising a supervisor, an organizer, a moderator, a note taker and a field writer interviewed the FGD participants. FGD materials included voice recorders and note books among others. A total of 304 individuals participated in the FGD discussions with an average of 8 participants per FGD. Table: Summary of FGD Composition Number of |Number of FGD |Number of | |participants per | |individuals | |FGD | | | |6 |8 |48 | |7 |7 |49 | |8 |19 |152 | |9 |5 |45 | |10 |1 |10 | |40 |40 |304 | |Average size of FGD = 8 | 2. 2. Limitations The findings of this study cannot be generalized to the whole population, mainly because of the purposive nature of sample and the small number of people participating in the survey. T he survey is designed to draw upon respondents’ perceptions of the impact of the global financial crisis. However, the possibility of multiple understandings of the situation makes it difficult to articulate the findings. The validity of the results may also be affected by ability of moderators to have control over the discussion process with participants. The moderator has to allow participants to talk to each other, ask questions and express doubts and opinions, while having very little control over the interaction other than generally keeping participants focused on the topic. By its nature focus group research is open ended and cannot be entirely predetermined. To reduce such a potential bias, the moderators received a 4-day training to facilitate recall and quantitative estimates to improve internal validity. The checklist was also translated into Bangla to improve interactions between the moderators and the participants and among participants. The reliability of focus groups’ perception may be weakened by internal cultural and hierarchical dynamics and lack of confidentiality within the group. As a result full participation of all may not have been ensured by the moderators. The effort made to select homogenous groups both by sex and livelihoods aimed at reducing this bias. 3. Macro-Economic Performance and Impact of the Global Financial Crisis 3. 1. Recent Economic Developments 3. 1. 1 GDP Growth Performance In recent years, Bangladesh enjoyed a substantial growth of the real GDP. The GDP growth stood at 6. 2 percent in FY08, slightly below the 6. 4 percent growth recorded in FY07. The GDP growth in FY08 was led by substantial growth in industry (6. 9 percent) and services (6. 7 percent) sectors while the agriculture sector grew by 3. 6 percent. However, in the backdrop of the current global crisis, there are some indications of uncertainties about the growth projection in FY09. Although the global financial crisis is yet to significantly affect the Bangladesh economy, all the projections converge on the fact that the GDP growth will be lower than the initial projection of 6. 5 percent in FY09 (annex 3). The central bank of Bangladesh (BB) and the Ministry of Finance (MoF) set an optimistic target of the GDP growth of at least 6. 0 percent. The GDP growth of 4. 5 percent (lower than its earlier projection of 4. 8 to 5. 4 percent) projected very recently by the World Bank (WB) is the most conservative one. The latest projection of the annual GDP growth (5. 6 percent revised from its previous stand of 5. 5 to 6. 0 percent) made by Asian Development Bank (ADB) is between the government and the WB’s projections, based on recent signs of the impact of the global financial crisis on key sectors. 3. 1. 2 Inflation Patterns Although the trend in inflation is subsiding, it is still above the long-run path, making it difficult for the most affected and vulnerable households to cope with recent shockshigh food prices (2007-2008) and localized natural disasters (cyclone Sidr) in 2007. The 12-month average inflation stood at 8. 9 percent by end 2008 with a declining trend since August. While the softening of the inflationary pressure is likely to continue, it is important to keep in view that the current price fall in the global commodity market is largely due to changes in demand side factors while the global supply situation has remained unchanged. As such if the major economies, especially the advanced ones, succeed in recovering from the crisis within a relatively short period, the commodity markets may again experience tight conditions. It is also worth noting the potential disincentive of the price decline on domestic food commodity production. While the high food prices resulted in only a small percentage increase of the net sellers of food commodities (i. e. , 5 percent increase in the category of small farmers of 0. 5-2. acres), these winners are likely to become losers as a result of the global financial crisis. With the global financial crisis, potential income losses are also likely to affect the households identified by the recent WFP/UNICEF/IPHN as th e most affected by the food price crisis, namely non-agriculture, agriculture wage and casual laborers. 3. 1. 3 Performance of the Financial Sector The demand for credit has weakened between July-December 2008. The growth in the broad money (M2) at the end of December 2008 remained around the same level of 17. 6 percent in June 20085. However, both the domestic credit and private sector credit dropped significantly during the last six months reflecting weak credit demand in the economy. While the growth in domestic credit dropped to about 19. 3 percent in December from about 21. 0 percent recorded in June 2008, the growth in private sector credit mainly concentrated to trade and industry recorded a decline of about 3 percentage point to 21. 8 percent in December from about 24. 9 percent in June 2008. This pattern is an indication of relatively lower economic activities during the period. Interest rates such as deposits, lending, repo and reverse repo rates moved up relative to their levels in the first half (H1) of FY2008 6 . During the last six months, however, the Bank Rate (Discount Rate) and yields of government Treasury bills (T-bills)7 and bonds remained mostly unchanged. The commercial lending and deposit rates of the banks varied within a relatively wide margin during H1 FY2009 compared with the narrow margin variation during H1 FY2008. Commercial lending rate reached its peak of 13. 5 percent in December 2008 from a low of 12. 6 percent in September 2008. Commercial deposits rate, on the other hand, reached 7. 9 percent in December 2008 from 7. 3 percent in August 2008. Real lending and deposits rate exhibited increasing trend during H1 FY2009 due to the decelerating inflation rate of the period. The interest rates on the certificates of National Savings Directorate (NSD) for the duration of 3 and 5 years remained unchanged respectively at 11. 5 percent and 12. 0 percent during H1 FY2009. The major indicators of health of the banking system, such as the ratio of non-performing loans (NPLs), amount of actual provisioning, total deposits and advances, the ratio of capital adequacy, the interest rate spread (IRS), and indicators of profitability remained broadly stable and satisfactory during H1 FY2009. Given the low level of foreign capitalization, the countrys banking sector remained broadly unaffected from the ongoing global financial turmoil. However, it would be important to refresh the surveillance of the banking sector and revisit the financial sector management to counteract any potential adverse impact on the countrys banking sector. 3. 1. 4 Fiscal Performance During the July-December period of FY2009, the realized amount of revenue receipts fell short of its annual target. In the FY2009 budget, the target for revenue earnings was set at 11. 3 percent. During H1 FY2009, preliminary estimates show that total revenue and total expenditure stood respectively at 5. 9 percent and 8. 1 percent of GDP, resulting in a fiscal deficit of 2. 2 percent of the GDP (during H1 FY2009) against the yearly target of 4. 99 percent. The financing of the deficit amounted to Tk. 135. 8 billion of which Tk. 93. 1 billion was accommodated from domestic sources, including bank financing of Tk. 73. 6 billion while the remaining Tk. 42. 7 billion came from foreign sources. The implementation of the Annual Development Program (ADP) also remained very low at 1. 2 percent of GDP in H1 FY2009 compared with the yearly target of 4. percent of the GDP, due to slow execution rate of projects. The execution rate of the ADP is unlikely to improve beyond 70 percent by the end of FY2009 in June. 5 Broad money is considered to be the most inclusive measurement of the money supply in a given country. It involves the most liquid or cash components of money supply or non-ca sh components that can be converted into cash very easily. Broad money is a key economic indicator used to forecast inflation and the decisions of investors. 6 Repo (repurchase agreement) is a financial instrument used in the money market. It is a transaction in which one party sells securities to another while agreeing to repurchase those securities at a future date. Bangladesh Bank has introduced repo for banks and financial institutions, as an indirect monetary tool for day-today liquidity management to smoothen temporary and unexpected disturbances in the supply and demand for money. 7 T-bills (Treasury Bills) are short-term debt obligation backed by the government with a maturity of less than one year. 3. 1. 5 Performance of the Capital Market In the backdrop of the ongoing financial turmoil, investors shaky confidence might have played a role in the recent mixed performance of the capital market in Bangladesh. Stock prices showed significant upturn during the first half (January-June) of 2008 while the second half (July-December) witnessed a downward movement. Although the daily average turnover improved, different monthly average price indexes at Dhaka Stock Exchange (DSE) have declined, showing some fluctuations in 2008. Compared with December 2007, the monthly average of all share price index (DSI), DSEG, and DSE20 declined by 14. 1 percent, 12. 1 percent, and 8. 3 percent respectively in December 2008. 3. 2. Degree of Exposure to the Effects of the Global Financial Crisis The World Bank identified Bangladesh as highly exposed to the global financial crisis8. Almost 20 percent of the population was already leaving in the hardcore (i. e. food) poverty in 2005. The high food price crisis has sent ? of the population into food insecurity by end 2008. According to the World Bank, the capacity of the country to cope with the impacts of the financial crisis on poverty is constrained by limited leverage for larger fiscal deficits9 and moderate inflation at 8. 9 percent at end 2008. Despite efforts made by the government to mitigate the negative impacts of the high food prices on households, the implementation of the Annual Development Program (ADP) remained very low in 2008, raising some concerns about the country’s capacity to efficiently and effectively scale-up public expenditures to protect vulnerable groups and reduce poverty. Figure: Exposure of Countries to the Global Financial Crisis [pic] Source: World Bank, 2009 Bangladesh’s economy is increasingly exposed to global economic shocks, given its increased integration with the global economy during the last decade. The contribution of trade (export and import) increased significantly since 2001 from 33. 4 percent of the gross domestic product (GDP) to 43. 4 percent in FY2008. About 85 percent of exports are destined to developed countries and roughly 60 percent of import originates from those countries. Exports take up 20 percent of the GDP in Bangladesh. Ready-made garment (RMG) is the main driver of exports, with a share of almost 80 percent of total exports (i. e. 16 percent of GDP). Almost half of the exports go to the European Union (EU), while 25 percent goes to the United States (US). The dependence on foreign aid has progressively reduced since the 1990s, while foreign direct investment remains low at 1 percent of the GDP over the last decade (2000-2009). Table: Bangladesh’s Degree of Openness to the Global Economy | |FY1981 |FY1991 |FY2001 |FY2007 |FY2008 | |(Export + Import)/GDP |13. 5 |16. 8 |33. 4 |43. 3 |43. 4 | |Remittances/GDP |1. 9 |2. 5 |4. 0 |8. 8 |10. | |ODA Disbursed/GDP |5. 8 |5. 6 |2. 9 |2. 3 |2. 4 | |ODA Disbursed/Export |158. 1 |100. 9 |21. 2 |12. 9 |13. 3 | | | | | | | | |Foreign Direct Investment (FDI)/GDP |- |0. 1 |1. 2 |1. 2 |0. 8 | The contribution of remittances has more than doubled since 2001 from 4 percent of the GDP to 10 percent in FY2008. Bangladesh is a huge labor surplus country, putting it on the supply side of the global labor market and at the fifth position among the top remittance recipient countries in the world. As a result, the economy is heavily dependent on migrants’ earnings in the Gulf countries and Western countries. In FY2007-08, total remittances (i. e. , USD8 billion) accounted for 10 percent of the GDP. As per the latest statistics, 5. 5 million Bangladeshis are currently working abroad. About 65 percent of these workers are semi-skilled (16 percent) and low-skilled (49 percent). Two-thirds of the migrants work in Middle East countries, mainly in Saudi Arabia, Kuwait, Qatar, and United Arab Emirates (table 3). They constitute 25. percent of the total labor in those countries and contribute 63 percent of the total remittances inflow in Bangladesh. The remittances inflow from these countries doubled from USD2. 4 billion in FY2003-04 to USD4. 97 billion in FY2007-08, as a result of the construct ion boom in the Gulf, mainly Dubai. Table: Importance of Migrant Workers and Remittances | |Labor Force |Share of Bangladeshis in |Share in Total Remittance | | |(Million) |Labor Force (%) |Inflow (%) | |Kingdom of Saudi Arabia |6. 7 |27. |30 | |Kuwait |2. 2 |14. 2 |11 | |Qatar |1. 1 |10. 0 |4 | |United Arab Emirates |3. 3 |33. 4 |14 | |Bahrain |0. 5 |26. 2 |2 | |Oman |0. 9 |23. |3 | |Total |14. 7 |25. 3 |63 | The most recent data (July-December 2008) suggest that the pass-through of the ongoing global economic crisis into Bangladesh economy is real. Even though Bangladesh is not integrated to the global capital market, the economy is facing the second round effects of the global financial crisis. There is evidence that international trade, exports of manpower and inflow of foreign official development assistance (ODA) are being adversely affected (table 4). The major source of the potential adverse impact is emanated from the projected contraction of foreign aggregate demand. Recent trends in the volume of Cargo (export plus import) handled in the Chittagong (CTG) port decreased by 5. 3 percent during H1 FY2009. Table: Recent Developments in Trade, Remittances and Aid Flows | | | | | | | |Jul-Dec. 2008 |Jul-Dec. 2007 |Growth in |Growth in | | |(Provisional) |(Revised) |Jul. -Dec. 2008 |(FY08) | |1. Cargo (export plus import) handled in CTG | | | | | |port (000 MT) |13489. 0 |14244. 0 |-5. 3 |3. 4 | |2. Exports (fob) |7754. 7 |6495. 9 |19. 4 |15. 7 | |3. Imports (Settlement of LCs) |11115. 4 |9078. 4 |22. 4 |27. 6 | |4. Remittances |4504. 7 |3440. 5 |30. 9 |32. 4 | |5. Gross ODA inflow |898. 3 |903. 2 |-0. 5 |20. 4 | |6. Net ODA inflow |579. 6 |630. 0 |-8. 0 |25. 2 | |7. Foreign direct investment (FDI) |706. 0 |285. 0 |147. 7 |-18. 0 | |8. Change in reserve position |-361. 0 |437. 3 | | | |9. Change in exchange rate |-0. 42 |0. 3 | | | Sources: (1) Bangladesh Bank, (2) Export Promotion Bureau (EPB), (3) Chittagong Port Authority, and (4) External Resources Division (ERD) of the Ministry of Finance. 4. Perceived Impacts at Household Level Five divisions were covered namely Chittagong, Dhaka, Khulna, Rajshahi and Sylhet. To understand the impact of the global financial crisis, focus groups discussions (FGDs) were conducted in purposively selected locations to cover livelihood groups that are most likely to be affected by the financial, according to the macro-economic pass-through channels analyzed in previous sections. Hence, 40 FGDs were organized, 12 with remittance earners, 8 with garment workers, 12 with workers of export-oriented agriculture (shrimp and tea estate) and 8 control groups made up with casual workers not involved in the former activities (table 5). Overall, discussions did not reveal any major difference between control groups and other FGDs, suggesting workers of the most exposed sectors and casual laborers are similarly affected by the effects of the global financial crisis. Therefore, the next sections will not distinguish control groups from others. Given the small sample size, the next sections will not emphasize the analysis of the characteristics of individual livelihood groups either. Table: Geographical and Sectoral Coverage of FGDs |Sector of Activity |Division |District |No. FGD | | | |Sylhet Comilla Noakhali |4 | | | |Chandpur |2 | |Remittance earners |Sylhet |Maulvibazar |2 | | | | |2 | | | | |2 | | | |Dhaka |4 | |Garment workers |Dhaka |Gazipur |2 | | |Chittagong |Chittagong (Ctg) |2 | | | |Satkhira |4 | |Export oriented agriculture labourers (shrimp,|Khulna |Bagerhat |2 | |tea estate) | | | | | |Sylhet |Maulvibazar |6 | | | |Gaibandha |2 | |Control group rural (casual labour) |Rajshahi |Panchagarh |2 | | | |Rajshahi |2 | | |Khulna |Khulna |2 | |Total |40 | 4. 1. Impacts on Livelihoods and Incomes Based on discussions with the 40 focus group members, remittances are mentioned by 9 of 40 FGDs as the first income source of the communities, followed by unskilled non-agriculture daily labor (8 of 40 FGDs), work in tea estate (6 of 40 FGDs) and work in garment factories (4 of 40 FGDs). As the first source of income, 4 FGDs mentioned that remittances contribute to about 80 percent of their incomes. Unskilled non-agriculture dailylabor is the second main income source for 9 of 40 FGDs, , followed by agriculture daily labor (8 of 40 FGDs) and small businesses (6 of 40 FGDs). As a second source of income, the contribution of unskilled non- agriculture daily labor to income is estimated at 25 percent, according to 8 FGDs. Female FGDs reported more dependence on remittances as their main income sources, compared to male FGDs. Five of 20 female FGDs depend on remittances as their first source of income, compared to 4 male FGDs. Four female FGDs mentioned that remittances contribute to 80 percent of their incomes, suggesting female-headed household whose husbands are migrant workers are vulnerable to decreases of remittances. No male FGD reported such a high level of contribution of remittances to household incomes. Five of 20 female FGDs are also more dependent on unskilled non-agriculture daily labor as their second source of income, compared to 4 in 20 for male FGDs. By contrast, male FGDs are more dependent on agriculture daily labor (5 in 20 FGDs) as their second source of income compared to female FGDs (3 in 20 FGDs). In total, 4 in 40 FGDs mentioned work in garment factories as both their first and second source of incomes. Figure: Main Income Sources (Number of Respondent FGDs) Small business Day labor (agric. ) Unskilled day lab our (no n-agric. ) Earth-digging Fishing in deep sea/ river Garment worker Ho use-maid Skilled labour (non-agric. ) Remittance Rickshaw/ van/ cart puller Other services Tea worker Wood / bamboo/ f irewoo d seller Fish/ shrimp -processing worker There is a sense that activity changes witnessed by FGDs are being made at the expense of sustainable livelihoods. In response to whether households have changed activities in the past 6 months, 17 out of 40 FGDs (12 male FGDs and 5 female FGDs) answered positively. According to respondent FGDs, households most frequently changed their activity to daily labor, suggesting they are likely engaging in less regular livelihoods. The main reasons of livelihood changes are low purchasing power (9 FGDs) and reduced job opportunities (7 FGDs) suggesting households are likely facing the impacts of the global financial crisis on top of the lasting effects of the high food prices. Table: Activity Changes Observed over the Last 6 Months Before Type of activity change now Number of Respondent FGDs Earth-digging Selling firewood 1 Tea estate worker Earth-digging 1 Rickshaw-puller, Mason, Street-vendor Selling betel leaf and bidi (tobacco) 1 Day labourer 8 Agriculture farmer Day labourer 1 Unemployed Migrant worker 2 Worker in shrimp-hatchery Fishing in deep sea/river 2 Day laborer Small business 1 Total 17 4. 2. Impacts on Employment and Wages Job losses were mentioned by fish/shrimp processing, garment and migrant workers, though the magnitude of the losses is reported to be less than 25 percent, with 10 percent being the most frequently reported estimate. Of the 40 FGDs interviewed, 16 FGDs (10 male and 6 female FGDs) mentioned that job losses have taken place within their community during the last 6 months. Job losses were reported mainly in Chittagong and Khulna divisions, by 5 and 8 FDGs, respectively. In general, job cuts and reduced salaries are reported as the main reasons for job losses or for changing activities. Fish/shrimp processing workers are the most affected by job losses in Khulna due to diseases in hatcheries and reduction of exports. In addition job losses in the shrimp processing sector, especially in Khulna, are amplified by the normal seasonal break in shrimp producing activities. Reportedly, shrimp production covers only 6 months a year. As a result, workers in shrimp-hatcheries would normally seek additional jobs such as casual labor during the rest of the year. Salary decreases reported by garment workers are due to reduced buying orders from abroad and reduced payments on overtime. Job losses are engulfing the supply of labor as daily workers are also facing job scarcity, according to 5 FGDs interviewed in Chittagong, Dhaka, Khulna and Rajshahi. As shown in figure 10, most of the respondent FGDs estimate that job losses are below 25 percent, except in Khulna where half of them mentioned the percentage of workers that have lost their job during the last 6 months could range between 50 and 75 percent. In Chittagong, respondent FGDs of the garment sector tend to estimate job losses below 10 percent. Relatively high proportions (between 25-75 percent) of job losses were reported by only 1 of 6 FGDs of the garment sector in Dhaka and 1 of 6 casual labor FGDs in Rajshahi. However, these figures cannot be interpreted as a general trend of the responses emerging from discussions with garment workers and casual laborers in these areas 4. 3 Impacted by the food price shock By mid-2008, food prices had increased by more than 200% since 2006 and more than 60% since January this year Between March 2007 and march 2008, prices of corn, rice, soybean and wheat increased by 31,74,87 and 130% respectively Rice price passed US$1000 in April 2008 A large proportion of population depends on agriculture. Per capita food production has been low and negative. Proportion of claries obtained from cereals is high. [pic] Table: Food price contribution to consumer price inflation in South Asian countries, 2008 | | | | | |Country |Overall inflation |Food price |Expenditure |Contribution of food | | | |inflation(a) |share of |prices to overall | | | | |food (in %) |inflation(b) | |(1) |(2) |(3) |(4) |(5) | | | | | | | |Bangladesh (April 2008) |9. 94 |11. 84 |64. 5 |7. 64 | | | | | | | |India (February 2008) |4. 60 |5. 0 |33. 4 |1. 94 | | | | | | | |Nepal (April/May 2008) |7. 50 |10. 00 |53. 2 |5. 32 | | | | | | | |Pakistan (May 2008) |19. 30 |28. 50 |41. 5 |11. 3 | | | | | | | |Sri Lanka (June 2008) |28. 20 |40. 06 |46. 7 |18. 71 | Source: Statistical Departments and Bureaus of different countries, 2008. (a) Includes beverages and tobacco. (b) Column (5) entries are calculated as (5) = (3) ? (4)/100. Table: The Impact of Rising Food Prices: Bangladesh (CGE Estimates 60% Rise) Macroeconomic Variables The effect of increase in food prices General Price level 2. 6% Real household income -1. 61% Welfare (equivalent variation) -0. 905 Real GDP -0. 787 Source: Adapted from ADB (2008a). There has been a considerable amount of controversy and debate over the impact of foo