Nitric Oxide Therapy in infants with pulmonary hypertension

The benefits of nitrogen oxide (NO) therapy as used in the treatment of infants with persistent pulmonary hypertension (PPHN) can be best appreciated if the reader is familiar with the pathophysiology of PPHN and the previous methods used in treating the disease. The function of NO has evolved in the minds of the scientific community from being a mere noxious gas emitted by vehicles to a wonder compound in the field of medicine. In the area of pulmonology, its vasodilatory effect in the blood vessels is now being used to assist PPHN patients in rerouting blood flow in infants whose blood circulation fails to shift from fetal to normal circulation.Such nature of the compound, being the main ingredient in NO therapy allows for a less invasive procedure which in effect reduces risks of complications during and after treatments, expected in previous treatment methods. This reduced risks account for the relatively more cost-effective character of NO therapy as a treatment method in PPHN p atients.There is not much use for the lungs during the fetal life. At such stage, the function of the lungs is carried out by the placenta through the umbilical cord. Fetal life is characterized by a high pulmonary vascular resistance (PVR) with pulmonary blood flow being restricted to a less than 10% lung-directed cardiac output. Blood vessels that connect the heart and the lungs are constricted, sending the circulating blood back to the heart through the ductus arteriosus, a blood vessel that functions only in fetuses. In other words, the lungs in the fetal stage are bypassed.At birth, when the lungs finally assume the function of gas exchange, the PVR decreases, allowing for an increase in pulmonary blood flow. The blood vessel that is previously constricted, favoring blood flow to the ductus arteriosus is now relaxed, simultaneously with the permanent closure of the ductus arteriosus. This happens as the lungs become ventilated and the alveolar oxygen tension is increased.Persis tent Pulmonary Hypertansion occurs when at birth, the lung circulation fails to achieve the normal drop in PVR, preventing the transition from fetal to newborn circulation. This failure results in the continuous functioning of the ductus arteriosus which impairs the flow of blood from the heart to the lungs and limits the amount of oxygen that can be picked up by the blood to be delivered to the different parts of the body. The blood that flows back to the heart remains in an unoxygenated state which could lead to the development of refractory hypoxemia, respiratory distress and acidosis.It is only in 1987 when nitric oxide (NO) was recognized as a key endothelial-derived vasodilator molecule. From then, research has been expanded to establish the role of NO throughout the body, and to discover its therapeutic potential.   To appreciate the effects of NO in alleviating pulmonary hypertension, it is important to gain understanding of its chemistry and mechanism of action.Nitric Oxi de is a gaseous compound that rapidly diffuses across membranes and has a single unpaired electron. This explains its high reactivity, especially to Hemoglobin (Hb) in the blood. This nature of the compound accounts for its noted biological significance. It has been discovered to function as stimulant in the release of hormones; as neurotransmitter; a significant participant in the magnification of synaptic actions and learning processes; and an inhibitor in platelet aggregation, which makes it a marvel in the field of cardiology. In the field of pulmonology, nitric oxide is valued for its vasodilatory effect in the blood vessels.This effect can be explained by the mechanism involving the compound's diffusion from the vascular endothelial cells to the subjacent smooth muscles of the pulmonary vessels. From here, NO activates the enzyme guanylate cyclase to change conformation to promote smooth muscle relaxation by converting GTP to cGMP.   This vasodilatory effect signals the mech anism to modulate blood flow and vascular tone.Given the mechanism of action, it is easy to surmise how NO can be utilized as a therapeutic agent in the management of blood-vessel-related diseases such as those related to the heart (hypertension), the reproductive system(erectile dysfunction) and in this case, the lungs (Persistent Pulmonary Hypertension in infants (PPHN)).Before NO, treatments used in infant PPHN are hyperventilation, continuous infusion of alkali, tube vasodilation and vasodilator drugs. A study on the effects of these various treatments was done by Ellington, Jr., et. al., (2001) showing no specific therapy clearly associated with the reduction in mortality in infants. In determining whether therapies were equivalent, the study showed that hyperventilation reduced the risk of extracorporeal membrane oxygenation (ECMO) with no oxygen increase at 28 days, while alkali infusion increased the use of ECMO as well as an increase in the use of oxygen at 28 days (Ellingt on, Jr., et. al., 2001). ECMO is a highly invasive procedure that requires major surgery, performed in serious cases of PPHN when patients fail to respond to treatments.It is only after post-lab studies were able to identify the role of NO-cGMP signaling in the regulation of lung circulation that NO therapy was developed for PPHN (Channick, R., et. al., 1994). Like previous treatment methods, NO therapy improves oxygenation as well as reduces the risk of ECMO in infants with PPHN (Oliveira, et. al., 2000). But because nitric oxide is capable of acting on its own upon inhalation to relax the blood vessels and improve circulation, it is considered as a less invasive procedure in the management of infants with PPHN compared to the previous treatments mentioned in the preceding paragraphs.The efficiency of the treatment procedure can be determined by observing its effect on the patient's ventilation and blood flow, which is a determinant of the efficiency of transpulmonary oxygenation a nd partial pressure of oxygen in the systemic arterial blood (Ichinose, et. al., 2004). NO therapy enhances the mechanism by which blood flow is redistributed toward regions in the lungs with better ventilation and higher intra-alveolar partial pressure of oxygen (Ichinose, et. al., 2004).Other treatments used in the management of PPHN such as tube ventilation, alkalosis and intravenous vasodilators were shown to be effective in ameliorating pulmonary hypertension in some infants, but in many instances, it does not, as ECMO almost always becomes a necessity in saving the life of the infants (Ichinose, et. al., 2004). A type of hyperventilation has been proven not to increase the risk of ECMO, but unlike NO-therapy (Ellington, Jr., et. al., 2001), it is invasive as to require a tube inserted inside the infant's trachea.In patients with moderate PPHN, there is an improvement in arterial p a O 2, reduced necessity of ventilator support and low risk of progression to severe PPHN (Sadiq, et. al., 2003) and this, without the risk of increasing the incidence of adverse outcomes when the age of 1 year is reached (Clark, et. al. 2003). Inhaled NO is able to rapidly increase the arterial oxygen tension and increase the blood flow in the lungs without causing systemic hypotension (Roberts, 1992; Kinsella, 1992). No apparent increase in morbidity has been shown after one year of treatment with NO (Aparna and Hoskote, 2008). For high-risk infants with PPHN, inhaled NO has been found to lessen the risk of pulmonary hypertensive crisis (PHTC) after congenital heart surgery (Miller, et. al. 2000).Studies on the role of NO in the management of PPHM show that while it is therapeutic, it also prevents the occurrence of chronic lung disease which affects morbidity. Vascular cell proliferation and pulmonary vascular disease have been shown to decrease with NO in the newborn (Roberts, et. al., 1995). In addition, while NO treatment can be more costly, it is the most cost-effective among other methods because of the reduced need for ECMO (Angus, et. al. 2003). For these reasons, it is understandable why NO therapy seems to have taken over in the area of PPHN treatment.ReferencesAngus DC, Clermont G, Watson RS, et al. (2003). Cost-effectiveness of inhaled nitric oxide in the treatment of neonatal respiratory failure in the United States. Pediatrics. 112, 1351–1360.Aparna U., Hoskote, MD., et. al. (2008). Airway function in infants treated with inhaled nitric oxide for persistent pulmonary hypertension. Pediatr Pulmonol. 43, 224-235.Channick R, Hoch R, Newhart J, et al. (1994). Improvement in pulmonary hypertension and hypoxemia during nitric oxide inhalation in a patient with end-stage pulmonary fibrosis. Am J Respir Crit Care Med. 149, 811-814Clark, RH., Huckaby, JL., et. al. (2003). Low-Dose Nitric Oxide Therapy for Persistent Pulmonary Hypertension: 1-Year Follow-up. Journal of Perinatology. 23, 300.  Ellington Jr, Marty, O'Reilly, et. al. (2001). C hild Health Status, Neurodevelopmental Outcome, and Parental Satisfaction in a Randomized, Controlled Trial of Nitric Oxide for Persistent Pulmonary Hypertension of the Newborn. Pediatrics,107.Ichinose F, Roberts JD, et.al. (2004). A Selective Pulmonary Vasodilator: Current Uses and Therapeutic Potential. Circulation. 109, 3106-3111. Kinsella JP, Neish SR, Shaffer E, et al. (1992). Low-dose inhalation nitric oxide in persistent pulmonary hypertension of the newborn. Lancet.   340, 819–820.Miller O, Tang SW, et. al. (2000) Inhaled nitric oxide and prevention of pulmonary hypertension after congenital heart surgery: A randomised double-blind study. The Lancet. 356: 9240, 1464.Oliveira cac, et. al. (2000). Inhaled Nitric oxide in the management of persistent pulmonary hypertension of the newborn: a meta-analysis. Rev. Hosp. Clin. Fac. Med. S., 55 (4): 145-154, 2000Roberts JD Jr, Polaner DM, Lang P, et al. (1992). Inhaled nitric oxide in persistent pulmonary hypertension of the newborn. Lancet. 340, 818–819.Roberts JD Jr, Roberts CT, Jones RC, et al. (1995). Continuous nitric oxide inhalation reduces pulmonary arterial structural changes, right ventricular hypertrophy, and growth retardation in the hypoxic newborn rat. Circ Res. 76, 215-222.  Sadiq HF, Mantych G, et. al. (2003). Inhaled Nitric Oxide in the Treatment of Moderate Persistent Pulmonary Hypertension of the Newborn: A Randomized Controlled, Multicenter Trial. Journal of Perinatology.   23, (2).98

Legal Environment Essay

Sexual harassment is always a legal topic in the work environment because the ramifications are so severe, but at the same time very abstract to describe what can constitute sexual harassment. This paper will take into consideration different elements of the law including Employment Law and cases tried before the U. S. Supreme Court. It will also offer suggestions for corrective action pertaining to the issue of sexual harassment in the workplace. In corporate America, sexual harassment is a huge concern amongst many organizations. The matter of sexual harassment is an issue that needs to be immediately attended to in order for companies to avoid large costs associated with lawsuits stemming from allegations of being sexually harassed in the workplace. Sexual harassment is usually an immediate damage. According to Crucet et al. (2010), â€Å"sexual harassment can cause damage to a company’s representation, status, customers, as well as their proceeds†. Sexual harassment can be identified as any unwelcome sexual jesters or advances, request for sex, and/or any physical or verbal conduct that may be considered in a sexual nature. The legalities circling sexual harassment can be broken down into two particular categories. According to Crucet et al. (2010), â€Å"the first category is quid pro quo and the second one consists of a hostile environment†. The first category of quid pro quo (this for that) sexual harassment usually involves an employee and a supervisor because in most situations only supervisors have the power of hiring and firing an employee. It also â€Å"involves some express or implied linkage between an employee’s submission to sexually oriented behavior and tangible job consequences† (Mallor et al. 2010, p. 1328). An example of quid pro quo could be related to a supervisor telling his female employee that â€Å"if you do this sexual favor for me, then you will be promoted†. According to Tyner & Clinton (2010), â€Å"other examples include managers requesting sexual favors, and the receipt or non-receipt of those favors as a condition for making hiring, termination, promotion, and other placement decisions. † Quid pro quo is easier to identify than hostile environment harassment. The second category of sexual harassment is called hostile environment harassment. According to Mallor et al. 2010), â€Å"hostile environment harassment, occurs when an employee is subjected to unwelcome, sex-related behavior that is sufficiently severe or pervasive to change the conditions of the victim’s employment and create an abusive working environment† (p. 1328). The key element of any type of harassment is unwelcomed sexual advances but in hostile environment harassment it is definitely a bit tricky and at times hard to define (Tyner & Clinton, 2010). Both categories of sexual harassment violate Title VII of Employment Law that is in place to protect equal opportunity in the workplace. In order to avoid or limit their liability for sexual harassment allegations, an employer must act immediately when issues of sexual harassment are brought to their attention in addition to providing adequate training on sexual harassment along with having an effective policy in place that identifies the definition of sexual harassment. A current ethical situation that I have encountered in the workplace involves hostile environment harassment. I have an employee by the name of Bob Doe that has been accused of sexual harassment in the workplace. Bob has been working as an Admissions Counselor under my supervision since January of 2011. Bob is married with three young children between the ages of ten to sixteen. Bob is a great worker but people still feel uncomfortable around him and comes off much different that the other male employee or co worker. He carries around an aura or vibe that makes the female employees feel uncomfortable. For instance, when Bob has a conversation with other female employees he tends to get too close and invade personal space. He is often caught saying vulgar and raunchy remarks that are HR inappropriate and has a habit of speaking under his breath a lot. Many of the female employees have claimed that he stares at them for periods of time without saying anything. He is medium to tall height, with a muscular build and tends to wear tight articles of clothing to reveal his muscles. Bob is middle aged and is about 5-10 years older than the average of other Admissions Counselors. In August of 2011, one day another male employee approached me and said that Bob had made some remarks to him regarding another female employee. Bob told this male employee â€Å"that he would love to catch her drunk† about that female employee. As a supervisor, this remark made me feel very angry that one of my employees would make comments like that about another employee and I immediately reported this action to my Director, Steve. Steve said that he really couldn’t do anything about that comment because I could not confirm whether or not he said it based off of the word of another employee and that the comment was not heard by the female employee. The director then told me to stay away from the gossip in the workplace and not to get involved in drama, He reminded me that I am suppose to be above that sort of office slander and that I was put in this position to make others people at their job and not be a whistle blower. I acknowledged what he told me and agreed that I would do a better job moving forward, but I still asked him to please report this incident to Human Resources. Steve said that he would handle the situation and would report the incident to Human Resources. Steve likes to handle all HR issues as he calls, â€Å"in house†. Steve wants the managers to run an incident by him before going to HR because he feels that he can handle the issues and that only if the cause was serious enough and if he was not present then we could go to Human Resources, otherwise we were to seek his approval or direction first. The second incident that involved Bob was in November 2011, when he approached another female employee on the team and grabbed her from behind and hugged her. Although he was not being overly aggressive and had a smile on his face, the female employee named Helen was caught off guard and felt violated and asked Bob not to touch her again because it made her feel uncomfortable. Bob laughed it off and said â€Å"Gezz girl relax! You know it’s not like that† and pointed at his wedding ring and walk away. Helen approached me and told me what happened. I immediately pulled Bob into a conference room and told him very sternly that it was inappropriate to hug and/or touch another employee in the workplace especially if it is unwelcomed because it could be viewed as sexual harassment. He said he understood and apologized for his behavior. At this time, I felt that this particular incident did not need to be reported to Human Resources since I felt I had a pretty good handle of the situation. I, however did document the incident in his employee activity log and mentioned it to my director who also said I handled the situation appropriately The third incident that happened regarding Bob was in January 2012. Bob was flirting with a female employee named Lisa who was not an employee on my team but still in the same division. Bob then began to grab Lisa’s hand and hold it with his hand. As Lisa pulled away, she asked Bob â€Å"why are you trying to hold my hand? † Bob’s response was â€Å" you’re so hot you’re making my hands clammy. † This was another sexual harassment issue that could have blown up. Once Lisa’s manager brought this situation to my attention, I once again called Bob into the conference room and explained to him that this was his second warning not to touch another employee, especially a female employee because it is inappropriate and unwarranted and if it were to happen again, then I would have no choice but to personally report him to Human Resources. Once again, I turned to my Director, Steve to seek his advice. Steve again told me that as long as you feel that you handled the situation appropriately and documented it then Bob should be fine. At this point I started getting the feeling that Steve didn’t care about the safety of my female employees and that he just wanted to avoid HR to avoid a situation. I felt as if Steve was allowing this to happen to prevent himself from looking bad. I then decide that I had to take the situation into my own hands and be more cognizant of Bob’s behavior with other employees. There have been a number of other times that Bob continued to make inappropriate comments to other female employees. He would compliment girls on their dress and say how nice their legs looked or that a certain color really brings out their figure. However, there were no mo complaints from Bob in regards to touching another employee inappropriately. He eventually decided to move onto another role with a different company and that was that. Sexual harassment is subjective because everyone identifies and perceives sexual harassment differently. Bob did come from the food and beverage industry where he was a bartender and a lot of his employees were cocktail waitresses in a night club in downtown. He did mention that in his previous job that he was very friendly with his staff because the culture would be more tolerable, especially with alcohol being involved. So, he may not have viewed his actions as being sexual harassment to his female employees, but obviously the employees felt otherwise. Author Tyner and Clinton write that â€Å"According to the law, the victim must be a â€Å"reasonable person† (Tyner & Clinton, 2010). The â€Å"reasonable person† standard initiated in the landmark case of Rabidue v. Osceola Refining back in 1986. According to Tyner & Clinton (2010), â€Å"in this case the majority ruled that vulgar language and the sexually oriented posters did not result in a working environment that could be considered intimidating, hostile, or offensive under the guidelines. † Essentially Judge Keith felt that â€Å"sexual harassment should not be judged by a reasonable person but rather by a reasonable victim† (Tyner & Clinton, 2010). It is the victim that feels uncomfortable and is claiming the allegations of sexual harassment. They are the one that feel that the acts of another are unwelcomed and violating their legal rights. Unfortunately, as a manager of fourteen Admissions Counselors, at times I don’t have the presence to be everywhere at all times. I have frequently not been present at urgent moments because I was helping or assisting another employee. I always made it a conscience effort to praise in public and coach or criticize in private. This was the course of action I took with Bob whenever I witnessed an inappropriate behavior from him. I took him into the conference room and let me know that what he just did is not acceptable. I did not want him to feel that he was being discriminated against because he was an older male. I know that it was my ethical duty to make sure that all of my employees have the right to feel safe in the workplace. This topic really sticks out to me because as a manager of a big company we are constantly having sexual harassment trainings and seminars on how to identify and prevent instances from occurring. A manager at the training shared with the rest of the managers a horrific case of sexual harassment from one of her employees. The employees name was Tim and he was a very skilled and tenure Admissions Counselor and often looked at as a great example of a successful hard working Admissions Counselor. When a female new hire Kristy was added onto the same team as Tim the manager advised that the new hire learn from Tim and create best practices and habits that Tim has. Kristy was near Tim a lot because she was given orders to learn from Tim. Tim would use this opportunity to flirt with Kristy constantly and asking her very intruding questions about her personal life such as, if she is dating anyone or if she is interested in a relationship or just â€Å"hooking up. † Kristy became very ucomfortable when Tim started to text message her at night saying that he is bored now that he is divorced and that he wants to meet her early in the morning to go over performance strategies. When Kristy finally confided in another employee the manager was brought to attention. The manager immediately told Kristy to go to HR right away and the manager went to her supervisor and they both took immediate actions. Because of Tim’s behavior Kristy was about to quit her job and she would attempt to be sick in order to stay away from Tim’s desk. Tim’s behavior created a hostile environment because Kristy was in fear of encountering Tim. This incident not only saddens me for Kristy, but also made me sad because of what Bob had done in the past to my fellow employees and I had not taken immediate actions like I should have. Legal Viewpoints: The U. S.  Supreme Court According to Crucet et al. (2010), â€Å"in 1980 the Supreme Court said that sexual harassment was a breach of the Civil Rights Act of 1964. † Title VII of the Civil Rights Act of 1964 â€Å"prohibits discrimination based on race, color, religion, sex, and national origin in hiring, firing, job assignments, pay, access to training, and apprenticeship programs, and most other employment decisions† (Mallor et al. , 2010, p. 1323). An important case that first appeared the â€Å"reasonable person† argument was in the Rabidue v. Osceola Refining in 1986 mentioned earlier in this paper. This case is often cited as the predecessor to the landmark Supreme Court case of Ellison v. Brady in 1991. In Ellison v. Brady (1991) the Supreme Court rules that â€Å"it is unreasonable to use a â€Å"reasonable person† standard since the rules were established by men† (Tyner & Clinton, 2010). This is where the â€Å"reasonable victim† came into existence. The court went on to say that â€Å"we note that the reasonable woman victim standard we adopt today classified conduct as unlawful sexual harassment even when harassers do not realize that their conduct creates a hostile working environment† (Tyner & Clinton, 2010). This Supreme Court ruling is of great importance. Many of times, harassers don’t even realize what they are doing is wrong because their perception of reality is off. Two important Supreme Court cases in 1998 created the framework for deciding whether or not employers were held liable for sexual harassment committed by its employees. The first was Burlington Industries v. Ellerth (1998) and the second was Farragher v. Boca Raton (1998). According to Cabassa (2011), â€Å"employers in jurisdictions where courts have allowed indemnity claims against employees for actions giving rise to harassment cases† are on the rise. There are many cases linking to sexual harassment in the workplace that they have launched a litigation committee that covers employment law to covering all legal issues related to the employment relationship (Cabassa, 2010). The question still stands on whether or not a company is liable for sexual harassment committed by one of its employees. The answer to that question lies on â€Å"whether the harasser was a coemployee or a supervisor of the victim, whether the victim suffered tangible job detriment and whether the company had sexual harassment policies, training, and grievance procedures† (Mallor et al. , 2010, p. 1328). Therefore, in order for a company to release themselves from association and allegations of sexual harassment a number of things need to be considered. Suggestions for Corrective Action According to Das (2007), â€Å"sexualization itself, as a precursor to signaling, could arguably stem both from a targets developmental trajectory and from later-life experiences that get layered onto this basic personality substrate. † Therefore, although Bob had these precursor straits of sexualization prior to him going through divorce, the later-life experiences of divorce layered into his life may have caused him to be more relentless. Regardless of his personal life experiences, Bob needs to be in line with the Employee Handbook and follow its policies. It is imperative each company have a Human Resource or Employees Relations Representative that can handle any allegations of sexual harassment. It is first and foremost important for a company no matter of size small or large, to have an Employee Handbook in place to identify what is considered acceptable and what can be recognized as sexual harassment. Then adequate training needs to be in place to help identify what may be considered as sexual and/or ostile environment harassment. After the training, each employee should be required to sign off on an acknowledgment form acknowledging that they know and understand the sexual harassment policy. Once those guidelines are set then it is important for managers and supervisors to take the allegations of sexual harassment very seriously and prevent any further occurrences to take place. If allegations of sexual harassment are made, it is important for Human Resources to open an investigation immediately to determine the facts of the case and to get each sides of the story.  Once the pieces of the puzzle are in place, then the next step is to take appropriate disciplinary action up to and including termination of the harasser. This measure will hopefully prevent sexual and hostile environment harassment. Conclusion In conclusion, the Employment Law has been established by Title VII of the Civil Rights Act of 1964 allowing every person the right to pursue a career and economic gain with the absence of sexual harassment in the workplace. The U. S.  Supreme Court has been a huge help in identifying the law surrounding and interpreting the U. S. Constitution as it pertains to sexual harassment. According to Tyner & Clinton (2010), â€Å"the Society for Human Resource Managers reported in 2002 that 97 percent of employers have written sexual harassment policies and that 62 percent of those employers provide training on sexual harassment. † Therefore, as a society we are on the right track to preventing harassment of any type in the workplace especially unwelcomed and unwarranted sexual advances.

Whitney Museum of American Art Essay Example | Topics and Well Written Essays - 2250 words

Whitney Museum of American Art - Essay Example creasingly understood that the context of the museum setting and the principles upon which it is built must be known in order to understand the potential approach taken. This knowledge can be gained in a variety of ways such as multiple visits over a period of time through which a ‘feel’ for the museum and its philosophical approach might be developed. More practical means of discerning the particular approach a museum has adopted may include discovering the history of the museum, the distinguishing characteristics of it, the philosophies of the people who helped to build the museum to its present incarnation and an understanding of the people who govern, to some degree, the museum’s direction – the board of directors and donors. Therefore, before looking into the way the Whitney Museum of American Art treats its patrons through member benefits or the type of exhibitions they present, it is helpful to investigate some of these more practical conceptions of history, uniqueness, foundational principles and current influences. This museum was founded in 1931 based largely around the American art objects either previously collected by the museum’s founder Gertrude Vanderbilt Whitney or purchased specifically for the museum by Mrs. Whitney. The original collection featured 700 paintings, sculptures and other art objects. Operating on a relatively tight budget, the museum quickly established a custom of purchasing works from living artists who were on the cusp of making themselves known in the general art world. These artists were often discovered through regularly scheduled exhibitions that showcased recent American art. Inspired pieces were often acquired through these exhibitions as well as future works by these grateful artists. Although these exhibits started as annual events, as soon as the museum could afford expansion, the events were scheduled biennially instead, a custom the museum continues to practice today. According to the museum’s

Research Project Paper Example | Topics and Well Written Essays - 2000 words - 2

Project - Research Paper Example However, research has shown that local members of the community are not benefiting much from the resources that are mined in their area. It has also been found that the working conditions of the employees are not favourable since the mine has been recently hit by a spate of strikes over pay issues. It has also been found that people who were protesting over improved working conditions were harshly treated and 34 lost their lives after the police opened fire on the protestors. In principle, organizations that extract natural resources in different places should plough back to the members of the community. It has been recommended that the company involved in this case should make efforts to empower the employees in particular so that they can also directly benefit from the natural resources that are obtained from their areas. This can be done through increasing their wages as well as creating community share trusts. This action is designed to fulfil the corporate social responsibility (CSR) concerns of the company. Overview of the topic In most cases, natural resources like minerals are exploited for various reasons. Minerals contribute towards economic growth and development if they are sold to other countries. Through exploitation of mineral resources in a particular area or country, employment is created and the welfare of the people is likely to be improved. There are many benefits that can be derived from extracting natural resources in a certain area. Development of infrastructure can also be promoted if a natural resource that is of commercial value is being mined in a particular area. Essentially, informed companies should make an effort to ensure that their activities also positively contribute to the growth and development of the areas they would be operating in. This can also help to create trust among the local members since they would stand to benefit from the wealth obtained from their backyard. However, this is not the case in some places that are rich in mineral resources since the people living around the area where the minerals are being mined live in abject poverty. This is in stark contrast to minerals millions of dollars extracted in these people’s background but they do not benefit from these resources. This is ironical because local residents in the communities where the precious minerals are mined are poor and they do not directly benefit from the wealth extracted from their backgrounds. This calls for organizations involved in this business to be more accountable and socially responsible for their activities. Essentially, the concept of â€Å"CSR maintains that businesses are part of the larger society in which they exist and are accountable to the society for their operations,† (Strydom, 2004 p.11). This means that organisations should strike a fine balance between the needs and interests of customers, needs of the environment and the need for businesses to realise their financial goals. This goes han d in hand with the concept of business ethics which tries to make a distinction between something that is morally good from bad (1994). Apart from inequalities in the distribution of wealth obtained from extraction of natural resources in a particular area, it can be seen that the local community members are also exposed to dangers such as environmental pollution that are directly caused by the activities of the company extracting the

Binh Danh Research Paper Example | Topics and Well Written Essays - 1500 words - 1

Binh Danh - Research Paper Example In his words, "Its almost my religious practice when I make my own artwork because Im coming up with my own concept about what is life, what is death, what is consciousness, what is history.† (Sparks, 2006). Binh Danh has tried to pay respect through his work to the people who have suffered during the war of Vietnam; the soldiers, the common man and the children who lost their parents during the brutality of war. In Binh Danh’s own words, â€Å" for me its becomes almost a religion, it’s almost my own religious practice when I make my own artwork, because I am coming up with my own concept of what is life and what is death, what is consciousness and what is history† (Sparks, 2006). Binh Danh has derived his inspiration from the life he had seen in Vietnam; the war, the tragic incidents of life and death that moved around him. His work displays more reality and it is closer to the bitter realities and life circumstances faced by every Vietnamese. His main theme of the work is focused on the subject of life and death. His photographs reflect the memories of his stay in Vietnam which made him suffered in a bad way. His images portray violence, blood, death and war scenes that are scribbled on his mind. His images clearly tell the scenes of war in Vietnam and the political crisis that overall affected the wheel of economy of the country. Binh Danh used a uniquely different technique in his photography which distinguishes his work from the rest of the work. He invented his own technique which is different from what was being used by the other artists. His technique is innovative and as well as, it is organic in nature. His style is also known as chlorophyll technique in which the artist uses the most suitable leaf to take a print on it. Sometimes he picks fresh leaves for more clear images and sometimes, he also picks leaves which are marred

Educational Web Portal's Use in the Study of Environmental Sciences Essay

Educational Web Portal's Use in the Study of Environmental Sciences - Essay Example While environmental science has gained a lot of attention of people in general and the educationalists in particular in the advanced economies, it remains a relatively neglected area of education in the third world countries primarily because there are several issues of much greater importance like poverty, hunger, violence, and terrorism that need to be solved before the people can pay attention towards the environment. Reduced emphasis of the government and the people in power on environmental sciences as an area of research and education restrains people’s access to the potential sources of information related to environmental sciences in the third world countries. In such circumstances, there is dire need of an online network that encapsulates all the required information about environmental sciences and one that is constantly upgraded and updated to make the latest findings and knowledge generated from the ongoing research and surveys in the advanced countries accessible to the interested learners in the third world countries. An educational web portal is a very effective tool to inculcate knowledge about the environmental science. People can connect with one another to form a learning community using the educational web portals. ... Educational web portals host research, lesson plans, and online course work, provides parents with a means to access the grades, monitor student outcomes, and satisfy the reporting standards established by the state. Educational web portals develop a common gateway to all the services and data that people need to share knowledge and jointly work on the environmental science projects. Educational web portals can be developed using such basic technologies as Windows Server and Microsoft Office SharePoint Server. Rapid availability of these technologies and expertise in their use extends the investment’s value in the Microsoft technologies. Educational web portals help the people achieve different kinds of goals and tasks that include but are not limited to the development of online communities for collaboration among the learners, administrators and the subject experts. â€Å"Portals, when properly designed, increase both effectiveness and efficiency of an institution†¦[an d] can be used as an effective communication tool† (Popovic et al., 2005, p. 322). People can use the educational web portals to improve the sharing of best practices in the industry among the members of the community. Users of the educational web portals can access the institution’s resources whenever required. The online document libraries available on the educational web portals are constantly updated with latest research findings and important documents like conference proceedings. When educational web portals are implemented in schools, it provides several kinds of services including lunch ordering, and online class registration. Educational web portals use dashboards to display updated performance data of the students. Students can share information with the community members, school

Children's Literature - instruction through delight Essay

Children's Literature - instruction through delight - Essay Example And hope that they’d tell their parents†¦which is what happened† (In Beckett, 2008:118). Interestingly, in the UK, Northern Lights was marketed for children however it was marketed for both adult and child markets in the US. It was only when the book received outstanding reviews in the US that it attracted adult readership in the UK. As a result â€Å"many critics feel that Pullman’s work can lay better claim to the crossover label because it is much more sophisticated, complex and multi-layered† (Beckett, 2008:117). Moreover, in considering the crossover phenomenon, a British journalist in 1999 commented that â€Å"the real barrier to overcome is not one of the possibilities of the genre but the judges reluctance to value something that could also be valued by a child, believing that if a child could like it, it must be childish for an adult to like it† (In Beckett: 2008:118). To this end, Pullman’s books clearly challenged orthodox attitudes towards children and adult fiction and further forced the literary establishment to acknowledge that â€Å"books published for children are literary works worthy of attention of adults† (In Beckett, 2008:119). However, in turn, this changing shape of children’s literature has fuelled academic debate as to whether Pullman’s dystopian work can correctly be viewed as a children’s book as it confounds the archetypal format of children’s literature that focus on fairytales, utopian ideals and happy endings (Silvey, 2002: 341). Appurtenant to this debate is the contention as to whether the growing phenomenon of such crossover fiction is anti-educational as a result of the instruction through delight paradigm. The focus of this paper is to critically evaluate this debate with contextual reference to Pullman’s â€Å"Northern Lights†, which is the first book in the Dark Materials Trilogy. It is

To what extent do companies benefit Essay Example | Topics and Well Written Essays - 2000 words

To what extent do companies benefit - Essay Example Such actions suggest that corporations will increasingly be held accountable for activity of concern to multiple stakeholder groups. As a result there will likely be a renewed interest in identifying the dimensions and consequences of corporate social responsibilities. Cameron has suggested that multiple perspectives of organizational effectiveness exist and that "consensus regarding the best, or sufficient, set of indicators of effectiveness is impossible to obtain" (1986: 541). The same arguments can be made regarding social performance as a specific aspect of overall corporate performance. Social responsibility continues to be a poorly defined as well as difficult to measure concept. There appears to be no real agreement as to what constitutes social performance. What is indicated, however, is the need to apply measures which address multiple criteria of social performance. This study attempts to specify the underlying dimensions of a multiple measure of corporate social responsibility and investigate the relationship between corporate social performance and multiple measures of financial performance. For the purposes of this study, corporate social performance represents a measure of a firm's attentiveness to multiple stakeholder groups. ... This perspective generally cast corporate activity as a zero-sum game. Whatever resources were expended in the interests of social responsibility came at the expense of shareholders (Wartick and Cochran, 1985). The interests of shareholders and other stakeholders were defined implicitly as conflicting and mutually exclusive. Many criticisms have been leveled at this perspective and it seems safe to conclude that corporations are no longer viewed, even theoretically, as solely economic institutions (Sharfman, 1992). At a very minimum, there appears to be a consensus that firms serve multiple constituencies and stakeholder groups whose memberships are overlapping and whose interests are interdependent (Aram, 1989; Freeman, 1984; Nash, 1990). An understanding of such relationships and an attendant concern for the interests of all stakeholder groups may force firms to act in a socially responsible way regardless of their motivation (Sen, 1993). Out of these perspectives come varied hypotheses regarding the relationship between social responsibility and corporate economic performance. When corporations are viewed as economic institutions, a negative relationship between social responsibility and profitability is assumed (Ullmann, 1985). The opposing hypothesis suggests a positive relationship between social responsibility and performance. Proponents of this perspective argue that socially concerned management is likely to also possess the skills necessary to achieve superior financial performance (Alexander and Buchholz, 1978; Metzger et al., 1993). A final perspective hypothesizes an inverted U-shaped correlation between social and economic performance. To an

Budgeting in Health Care Organizations Essay Example | Topics and Well Written Essays - 750 words

Budgeting in Health Care Organizations - Essay Example There are numerous other types of budgets such as annual statistics budget and revenue budget and they vary according to their purposes (Gapenski). These budgets can vary across different health care institutions. The reason for this is the diversity of the financial structures, organizational culture and reporting systems of organizations (Finkler and McHugh, 2008, p.171). The process by which health care organizations design and implement budget based on such organizational structure, culture and reporting system determines whether they will achieve budgeted operating margin targets. This is demonstrated in the experience of University of Utah Hospitals and Clinics (UUHC). It was found that the institution's personnel are not knowledgeable on budgeting and finance and that there is no organizational mechanism or aspect of the organizational culture that encourage the education of the staff. As a result, expenses always exceed the budget and what is worse, the extra expenditures are found to be unnecessary (Clark, 2005, p.79). Budgeting, or correct budgeting, is important because it supports the operation of the health care organization. ... lth care institutions and it needs budgeting in order to maintain positive performance and deal with problems, such as "shrinking revenues and rising expenses" (Schwieters and Harper, p.76). The benefit of budgeting is aligned with the importance of cost information. As managers and hospital personnel are informed about budgeting and cost, a sound operating budgeting process can finally be implemented in order to achieve financial health. This point was explained by the intervention introduced at UUHC in 2004 to improve budgeting results. The organization pursued an aggressive education drive for its staff about budget and finance, "offering incentives to stay within budgets, holding budget variance meetings with managers, and requesting corrective action plans from managers". The result was improved budgeting performance. The intervention model highlighted by the case of UUHC included an important tool in budgeting: variance analysis. It is a method that focuses on comparisons of ac tual results and budgeted expectations for each line in the budget of each cost center in the health care organization (Finkler, Ward and Baker, 2007, p.200). The flexible budgeting variance analysis is one of its types that is widely used in health care organizations. The methodology follows a framework of gathering information the comprehensively cover the composition of departmental expenses. This could lead UUHC, for instance, to subdivide total variance (the difference between standard prices and quantities and actual prices and quantities) into three: price, quantity and volume (Baker, 1998, p.128). Baker explained these three in detail: Price variance pertains to the proportion of the overall variance caused by the differences between actual and expected price input; Quantity

Egypt Rome and ancient China Essay Example | Topics and Well Written Essays - 250 words

Egypt Rome and ancient China - Essay Example The first light of Chinese human progress uncovered itself 7,000 to 8,000 years back, as showed by the remnants of the Daxi Culture in Sichuan and Hubei regions, the the Majiapang Culture in Jiangsu and Zhejiang territories, the Hemudu Culture in eastern Zhejiang and the Yangshuo Culture along the center spans of the Yellow River and its principal tributaries. As stated by legend, the primitive tribes that possessed the center and upper spans of the Yellow River were bound together into two effective tribes under the Yellow Emperor and Fiery Emperor and started their push southward 5,000 years back. After years of warfare, they prevailed over the Sanmiao and Jiuli tribes dynamic in south China under the administration of Chi You. A piece of the crushed tribe was fused into the tribes under the Yellow and Fiery rulers to turn into apart a piece of the Han individuals, which denoted the start of the Chinese country. Roman civilization The ancient Rome was an empire built by the Romans who acquired this by conquering most countries. The empire spread from Rome to other parts of Europe as well as Africa. The Romans followed a thriving civilization that developed from the Italian Peninsula in the early 8th century. The Roman civilization grew from monarchy to an aristocratic empire; still in the present times the influence attributed to the Romans still exists. The Romans had the distinct history that got insight from their present and future which was similarly embraced (Leakey 56).

One Day In September Essay Example for Free

One Day In September Essay Analyze how the opening sequences of two documentary films help to establish genre and narrative. The two documentaries Im going to discuss are called one day in September and when we were kings these are both documentaries about well known sporting events. One day in September is about a group of Israeli athletes in the Olympics who are captured and held hostage by Palestinians whereas when we were kings is based on two boxers from America who compete for their country in Africa in 1974 called George Forman and Muhammad Ali. They are both an example of a well known competitive sport. One day in September opens with a short clip of Munich where the Olympics is due to be held it is presented as if it is advertising it as a holiday destination. The music at first is very cheerful and light with a narrator describing Munich and its attractions this is known as non diagetic sound. There are quick clips of the lifestyle and scenery in Munich to give you a general idea of what Munichs culture and lifestyle is like. It soon changes very serious and dramatic credits with a man quoting Well nobody could foresee what later on happened this leads the viewers to think already that this is not going to be a usual day. The credits slide onto a very dark blurred background with distorted reports on what seem to have happened in the background, this effect intrigues the audience to what actually happened on that day in September. When the credits finish the music changes back to the calm, peaceful music as before and the audience see slides of what appears to be a happy couples marriage. The viewer can already sense that these people are going to be involved. A woman is narrating over these short clip and goes straight in to talking past tense saying It was only a year and three months that I was married to Andrà ¯Ã‚ ¿Ã‚ ½ Spitzer this gives the audience the impression that they are not married anymore. The narrator carries on discussing her marriage and how she met Andre Spitzer this creates a bond between the audience and the narrator to leave a bigger effect on the viewers. The shot then changes to a prisoner however you cannot see his face, the sound then changes into tension building music to create suspense between the audience and this prisoner this also shows us black and white images of were he lives over these shots the prisoner goes directly into who he is and describes his past and his training. The camera shots keeps us curious into who he is and what he has done while the suspense of the music engages us into what happened one that day in September. The audience then go back to Andrà ¯Ã‚ ¿Ã‚ ½ Spitzers wifes perspective however the music stays the same building up the suspense while the point of view changes from the goodies to the baddies. The documentary then changes into a anonymous male describing what was about this Olympics that made it different from all the others for Andrà ¯Ã‚ ¿Ã‚ ½ and his team. The sound then changes to an upbeat feel good song showing clips of the Olympics which confuses the audience slightly to what went wrong.

Private military contractors Essay Example for Free

Private military contractors Essay Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Private military contractors, also known as private security contractors provide a number of different services for the UN military in Iraq.   Various services include the preparation of meals, navigating army supply vehicles, military training and security for US officials.   Some private military contractors also provide interrogation and translating services for the US military. Contractors providing this service in particualr have been suspected of a number of human rights abuses at the Abu Ghraid Prison.   Other activities by private military contractors have raised issues about humanitarian conerns and the abuse of womren’s rights.    There are currently at least 100 private military contractors in Iraq.[1]   This discussion looks at the unique role of private military companies in Iraq and examines their impact on the rights of women. Private Military Companies in Iraq   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The US military and the State Department spends billions of dollars on private security contractors in Iraq.[2] These contractors according to the Washington Post are: â€Å"Out of public view, have been engaged in a parallel surge, boosting manpower, adding expensive armor and stepping up evasive action as attacks increase.†[3]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The primary goal is to â€Å"offset chronic troop shortage† and the number of invidual contractors are between 20,000 and 30,000.[4]   David Isenberg in a report by the British American Security Information Council published on September 4, 2004 maintains that it is impossible to accurately account for the number of private military companies currently in Iraq.   This is because only PMC’s whose contracts exceed $50 million are required â€Å"to be reported to Congress.†[5]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Isenberg complains that the legal status of private military companies is especially problematic since there is no real provision in International law to account for their role and definition.[6] While many view the private military personnel as mercenaries, they do not fit the definition of mercenry within the meaning of the Geneva Convention.[7]   Article 47 describes a mercenary as an idividual who takes part in military combat and is not a national and: is motivated to take part in the hostilities essentially by the desire for private gain and, in fact, is promised, by or on behalf of a Party to the conflict, material compensation substantially in excess of that promised or paid to combatants of similar ranks and functions in the armed forces of that Party.[8]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   James Conachy however, refers to these private military personnel as â€Å"modern-day mercenaries.†[9]   Conachy aligns their physical presence with their abstract presence.   While they are by and large not subjected to transparency and legal accountability in the traditional sense they operate out of uniform and from â€Å"unmarked vehicles†.[10]   They go about their business in this manner while â€Å"manning roadblocks, or stalking outstide building, with machine guns.†[11] As a result, the private militaray presence in Iraq has â€Å"become an ubiquitous and offensive symbol of the US occupation.†[12]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Conachy maintains that the need for private military presence in Iraq is obviated by the bredth of US military deployment overseas following the September 11 terrorist attacks.   Without the use of private military companies the US would be compelled to send more troops to Iraq from an already depleted armed force or would have to seriously consider â€Å"reviving the military draft.†[13] It is obvious from this assessment of the single purpose of the private military that distinguishes them from the Article 47 definition of mercenary.   Mercenaries are not aligned to a paritcular party and obviously the private military contractors are aligned to the US and are used to facilitate the US military’s shortfall.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The following description of private military duties takes them well outside of Article 47’s definition of mercenary: â€Å"Far more than in any other conflict in United States history, the Pentagon is relying on private security companies to perform crucial jobs once entrusted to the military.†[14] It is clear that private military companies are not in actual combat.   Mercernaries, according to the Geneva Convetions are actively fighting . Human Rights Concern and Women   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In an article published in the Guardian, Luke Harding explains that the full extent of abuse toward women by all sectors of the military in Iraq will not be fully known.   This is primarily because Islamic women rarely discuss violations of a sexual nature.   Rape, Harding maintains is a symbol of shame in the muslim world   and â€Å"victims can be killed to salvage family honour.†[15] The most shocking incidents of abusive treatment of women originate from the Abu Ghraib jail which was primarily manned by private military personnel.[16] Accroding to Patrap Chatterjee the private military’s role at the Abu Ghraib jail was one of interrogation which brought them into more frequent contact with the prisoners than other jail personnel.[17]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The International Committee of the Red Cross reported that in October 2003 there were approximately thirty female prisoners in the Abu Ghraib jail.[18]   According to prison personnel, that number was reduced to five by May of 2004.[19]   The Internation League for Peace and Freedom had documented some eye witness accounts of abuse at the Abu Ghraid jail.   One such account was given to Iman Khamas who heads the International Occupation Watch Center, a private organization that collects anti-human rights information.   The account came from a former prisoner who told Khamas of a rape incident at the jail.   Khamas reports that the prisoner recalls that: â€Å"†¦ the prisoner said her cellmate had been rendered unconscious for 48 hours. ‘She claimed she had been raped 17 times in one day by Iraqi police in the presence of American soldiers.’[20]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Another report originated from Mohammed Daham al-Mohammed who heads an Iraqi group, the Union of Detainees and Prisoners.   According to a-Mohammed he was informed of a â€Å"mother of four† who had been arrested in December of 2003 and killed herself after being raped by US guards who forced her husband to watch while incarcerated at the Abu Ghraib jail.[21]    According to the woman’s sister the rape victim committed suicide.[22] The victim had told her sister of incidents of physical abuse outside of the rape.   In one account she recalled a American male pulling her by the hair and forcing her to look at her husband while the American took off her clothing.   After this incident the rape took place.   Once released, the woman was afraid to face her husband since he had witnessed the rape and asked her sister to help her commit suicide.[23]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A former male prisoner reported incidents where women were constantly removed from their cells to private rooms.   The prisoner explains: They had to pass in front of our tent and cried out, Find a way to kill us.[24] Human Rights groups explain that rape for a Muslim woman shames the entire family which is why these women would rather die having suffered a rape.[25] Khamas recalls an incident in which she visited a woman at the Abu Ghraid jail and a female prisoner told her about a rape, but whispered in her ear despite the fact that no one else was present.[26]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Khamas, Mohommed and Hoda Nuaimi, a professor in politics at Baghdad University report that: â€Å"†¦three young rural women from the Sunni Muslim region of Al-Anbar, west of Baghdad, had been killed by their families after coming out of Abu Ghraib pregnant.Nuaimi said that in the case of another such woman, who was four months pregnant, her brother had been reluctant to kill his sister because he considered her a victim.†[27]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Luke Harding reports that the first information about abuse of female victims at the Abu Ghraib jail, a US facility first came to light by a note smuggled out of the prison by a female prisoner.[28]   In the note the woman claimed that women were being raped by US personnel and many of them had become pregnant.   The note also begged the Iraqis to â€Å"bomb the jail to spare the women further shame.†[29]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Swadi, a female lawyer among seven representing the female detainees indicated that the abuse was not limited to the Abu Ghraib jail and was happening all over Iraq.[30] The shame associated with rape and the consequence for family disgrace were evident in the following account from a female prisoner at al-Kharkh, a US military base: She was the only woman who would talk about her case. She was crying. She told us she had been raped†¦Several American soldiers had raped her. She had tried to fight them off and they had hurt her arm. She showed us the stitches. She told us, We have daughters and husbands. For Gods sake dont tell anyone about this.’†[31]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Luke Harding also reports that an investigation conducted by the US Military which was headed by Major General Antonio Taguba confirmed the contents of the note smuggled out of the Abu Ghraib facility.   Moreover, digital photographs, according to Tajuba’s findings also depitcted US personnel engaging in sexual contact â€Å"with and Iraqi woman.†[32] Tajuba’s investigation also found videotapes of nude female prisoners.[33]   There are additional photographs of Iraqi women being forced at gun point to â€Å"bare their breasts.†[34] While these photographs have been relased to Congress they have not been released to the public.[35]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In May of 2004: â€Å"an Iraqi woman in her 70s had been harnessed and ridden like a donkey at Abu Ghraib and another coalition detention centre after being arrested last July.†[36] UK Labor Member of Parliament Ann Clwyd investigated the incident and confirmed that it was in fact true.   The Iraqi elderly woman had been held without charge for at least three weeks during which time â€Å"she was told that she was a donkey.†[37]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Luke Harding explains the devastating consequences for female rape victims which only accentuates the abuse involved.   According to Harding: â€Å"Honour killings are not unusual in Islamic society, where rape is often equated with shame and where the stigma of being raped by an American soldier would, according to one Islamic cleric, be unbearable. The prospects for rape victims in Iraq are grave; it is hardly surprising that no women have so far come forward to talk about their experiences in US-run jails where abuse was rife until early January.†[38]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   At the time of writing, Harding describes another incident of physical and mental abuse agianst female detainees in Iraq in which the private military personnel are activiely involved.   Five women, according to Harding were being held in â€Å"solitary confinement† in cells measuring just 2.5 meters in length and 1.5 meters in width at Abu Ghraib.[39] Captain Dave Quantock who was then in charge of the prisoners at Abu Ghraib told journalists that all female prisoners at Abu Ghraib are kept â€Å"in solitary confinement for 23 hours a day.†[40]   The only entertainment the women are allowed is access to the Koran.[41]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mystery surrounds the grounds upon which the five females in solitary confinement are held.   The general term used is that they are held as â€Å"security detainees.†[42] Swabi maintains that these women are being held â€Å"for who they were married to and their potential intelligence value.†[43] Be that as it may, the degree of abusse cannot be justified.   Under both US and International laws the cruel and inhuman treatement of prisoners at anytime is unlawful.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   International humanitarian laws contained in the Geneva Conventions 1949 of which the United States ratified since 1955 requires that during times of war and peace all prisoners are to be treated humanly.[44] More over the Geneva Convention IV specifically prohibits rape and indecent assault on women.   Article 27 provides as follows: â€Å"Women shall be especially protected against any attack on their honour, in particular against rape, enforced prostitutiOn, or any form of indecent assault.†[45]   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Judicth Gail Gardam and Hillary Charlesworth argue that women have always been at risk of violence in armed conflict.   Although the emphasis has always been on sexual violence there have been other forms of violence against women.   Gardam and Charlesworth note that the 1995 Beijing Platform for Action called for governments worldwide to map out plans for combatting: â€Å"the effects of armed or other kind of conflict on women, including those living under foreign occupation.†[46] The Iraqi conflict and occupation and the violence against women is therefore nothing new.   What is perhaps more surprising is the fact that it could happen in light of international laws and attention to violence against women in the past. Conclusion   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An irony arises out of these reports.   The US invasion has been called â€Å"operation Iraqi freedom† which presupposes a vastly humanitarian effort.   Yet in the course of fighting for Iraqi freedom, those sent to fight for the cause have added to the problem.   Roger Normand alleges that the US personnel in Iraq are: â€Å"†¦violating almost every law intended to protect civilians living under foreign military occupation.[47] While many of   these crimes are being committed by private military companies,   the world at large and the Iraqi populace draw no distinction between the US soldiers and the security companies employed by them to help the cause. The private military and security personnel are agents of the US government and as such the US government is vicariosuly liable for the misconduct of the private miliatary contractors.   As long as they are permitted to continue working with and for the military and as long as they continue to violate international law particularly article 27 of the fourth Geneva Convention, the US must take responsibility for the ills committed by them.   They cannot take the benefit without the burden.    Bibliography Center for Economic and Social Rights.(n.d.) â€Å"New Report Documents Extensive U.S. War Crimes In Iraq†. Available online at: http://www.ccmep.org/2004_articles/iraq/061104_CESR.htm Retrieved December 11 2007 Chatterjee, Pratap. (May 12, 2004) â€Å"Private Contractors and Torture at Abu Ghraib, Iraq.† Democracy Now. Available online at: http://www.democracynow.org/2004/5/12/private_contractors_and_torture_at_abu Retrieved December 11, 2007 Conachy, Jamers. (May 3, 2004) â€Å"Private Military Companies in Iraq: Profiting from Colonialism.†International committee of the Fourth Amendment. Available online at: http://www.wsws.org/articles/2004/may2004/pmcs-m03.shtml Retrienved December 11, 2007 Fainaru, Steve. (June 16, 2007) â€Å"Iraq Contractors Face Growing Parallel War: As Security Work Increase, So do Casualties.† Washington Post Gardam, Judith, Gail and Charlesworth, Hillary. (Feb. 2000) â€Å"Protection of Women in Armed Conflict†. Human Rights Quarterly Vol. 22 No. 1 pp 148-166 Geneva Convention Harding, Luke. (May 12, 2004)† Focus Shifts to Jail Abuse of Women.† The Guardian. Harding, Luke. (May 20, 2004) â€Å"Rape in Iraq: The other prisoners.† The Guardian. Isenberg, David. (Sept. 4, 2004) â€Å"A Fistful of Contractors: A Case For a Pragmatic Assessment of Private Military Companies in Iraq.† British American Security Information Council, Research Report. Kabbara, Rouba. (May, 29, 2004) â€Å"Human Rights Groups: Iraqi Women Raoed at Abu Ghraib Jail.† Peace Women Available online at: http://www.peacewomen.org/news/Iraq/May04/Women%20in%20Prison.html   Retrieved Deember 10 2007

Impact of the US Credit Crunch on Australian Economy

Impact of the US Credit Crunch on Australian Economy Introduction However, due to the US housing credit crunch and turbulence in financial markets all over the world immediately took into effect and global economic growth slowed towards the end of the year (OBrien et al., 2007). Given this basic premise of the current financial crisis, this literature review will be guided by exploring studies made on how the US-induced credit crunch affected the Australian economy, particularly the housing market. The first stage of this literature review is attributed to describing the current financial crisis, specifically the events that led to its development such as the collapse of the US housing and banking sectors in 2007. Part of discussing the events that took place after the onset of the financial crisis would be to examine the various mechanisms employed by financial institutions and national governments in order to mitigate the direct and indirect consequences of the financial crisis. The second part of this literature review seeks to determine the effects of the financial crisis to the Australian economy, as well as the various policy responses made by both the Reserve Bank of Australia (herein referred to as RBA) and the Australian government. Finally, this literature review will determine whether studies on the current financial crisis were able to provide sufficient attention to the manner by which it affected the housing market, particularly in the case of Australia. The rationale behind these assertions lies on the need to broaden the scope of examining the consequences brought about by the credit crunch in 2007 and the financial crisis in 2008, from being centered in the US to involve other nations as well. It should always be understood that the effect of the subprime meltdown was not limited to US firms exposed to the subprime mortgage market for the reason that globalization made regional financial markets so interconnected that crisis spread across countries at tremendous speed (Moosa, 2008). Hence, it is just apropos to exhaust scholarly works that have managed to realize that at this point in time, economic activities of nations are intertwined and the development of policy solutions should also undergo the same process. Another reason for this literature review would be to identify research gaps that will in turn serve as a motivation for future studies on the effect of the current financial crisis towards nations economies such as the case of Australia. Since the underlying context for this review of related literature is the 2007 credit crunch and the 2008-present global financial crisis, the period covered for the literature surveyed in this paper will be from 2007 to the present. With these things taken into consideration, the focus of this literature review will be the effect of the 2008 financial crisis to the housing market in Australia. From the broad circumstance of the credit crunch and the financial crisis that happened in the US and inevitably transgressed to the rest of the world, this literature review seeks to identify the relationship from a macroeconomic environment of the global financial crisis to a specific case of the housing market in Australia. The justification for this lies on the need to determine whether policy responses used in the US are effective or otherwise in mitigating the direct consequences of the crisis, and vice versa. The credit crunch and the global financial crisis As it had been previously mentioned, this portion of the literature review is allotted to discuss the credit crunch as well as the occurrence of the global financial crisis. Both the credit crunch and the financial crisis are crucial concepts in this review for the reason that it will be impossible to present and examine the effects of the financial crisis to the Australian economy, specifically the housing sector if these concepts are not understood properly. According to the National Institute Economic Review (2008), the 2008 financial crisis is rooted in the US subprime mortgage defaults. Moosa (2009) defines subprime mortgages to encompass all activities involving the granting of loan to borrowers with inferior credit worthiness creating complex financial products. Meanwhile, Honohan (2008) in his study defines a credit crunch as credit related crises suffered by banks and other intermediaries which is often the cause of contraction in lending market especially if these are triggered by exogenous economic shocks. The positive attribute of the definitions provided by these authors lie on the fact that these are lifted from actual events and circumstances, more specifically the 2007 credit crunch and the current financial crisis. Another interesting point with regard to the financial crisis was given by Barrell and Hurst (2008) who stressed that financial crises are episodic and frequent and are difficult to address without major impacts in the prospect for financial growth. Based on this observation by Barrel and Hurst (2008), it becomes evident that it is inevitable under conditions of financial crises that economic growth will not be affected, especially with globalization as the underlying condition. With regard to the direct cause that led to the development of the financial crisis, Ben Bernanke (2008), believe that the period of financial turbulence on the part of the US began in 2006 when there were uncontrollable contractions in the US housing market that were caused by the inability of certain individuals to pay for subprime mortgages. Moreover, this was reinforced by increasing constraints on credit availability, which has dramatically slowed down the economy and has made it less responsive to market changes. Honohan (2008) supports this further in his discussion on the evolution of the 2008 financial crisis by asserting that the origin of the crisis was especially pronounced in the housing market wherein credit losses are so massive that it cannot be replenished anymore. The fall of house prices in the US and other major economies such as the UK directly affected economic growth in other countries. In his study, Honohan (2008) also believes that although the current global financial crisis was triggered by the 2007 credit crunch in the US banking sector brought about by the bursting of the housing bubble, definitions such as those presented by Moosa (2009) and Barrell and Hurst (2008) should not be confined to the US experience. The explanation behind this is that other nations might have responded differently upon the advent of financial crisis. In this case the positive aspects of the study by Honohan (2008) lies on the fact that it was able to present a coherent discussion of the origin of the 2008 financial crisis as something that did not happen overnight. Instead, Honohan (2008) attributes the occurrence of the financial crisis to ineffective risk management and lax monetary and fiscal policies in the US and eventually the rest of the world. Although Honohans (2008) article was focused on the banking aspect of the financial crisis and how mortgage problems in the US, his discussion of the detrimental effects of the crisis such as the closure and bankruptcy of banks and lending institutions were effective in stressing the importance of coherent monetary policies. On the other hand, the research gap identified in the article presented by Honohan (2008) is that it was highly concentrated on the banking sector in the US, thus, ignoring the direct consequences of the credit crunch and the financial crisis to the housing sector. It should always be taken into account that the financial crisis originated in the housing sector. Hence, potential solutions should first be geared towards addressing the negative consequences brought about by the crisis in the housing sector. Another gap in the study made by Honohan (2008) was that it was not able to present recommendations that will serve as a guide to policy makers as to how to mitigate the direct and indirect consequences of the current financial crisis. In a similar study, Barrell and Davis (2008) observed that the evolution of the 2007-2008 financial crises was brought about by low global interest rates arising in turn from high levels of global liquidity. This can be explained further by the case of the US wherein bank lending to households grew at unprecedented rates leading to the point that people can no longer pay their monthly dues. In addition to this, Barrell and Davis (2008) also indicated that banks are expected to hold increasingly low levels of balance sheet liquid assets, given low interest rates, and they undertook aggressive wholesale liability management to maintain funding levels. Without these initial actions taken to address the earliest manifestation of a credit crunch particularly the collapse of the housing market, countries would not have survived the crisis and will be forced to close down major financial institutions. Again, in order to understand the financial crisis and its effects towards nations and economies, it should be taken into consideration that the asset price bubble in the US in 2007 was perhaps the most noticeable occurrence in the housing sector and this has led to irreversible consequences in the financial sector. Given this event, Barrell and Hurst (2008) supports this by stating that it is the short-term fluctuations in house prices that affected consumption in countries like the US and the UK, therefore fostering slow growth in the rest of the developed world—and eventually, the rest of the world. In their discussion of the present financial crises, as well as the prospects for recession, Barrell and Hurst (2008) stated that the best way to address the negative consequences of the crisis would be through effective monetary policy through interest rates reduction which should be set by the central bank in order to prevent bubbles like the housing bubble in the US from bursting and damaging economies at larger scales. The low global interest rates contributed to rapid credit expansion and rise in asset prices which greatly contributed to the US financial crisis (Barrell Davis, 2008). The benefits provided by the study made by Barrell and Hurst (2008) and the article written by Barrell and Davis (2008) would be that in both instances, the authors were able to recognize the collapse of the housing sector as the root cause of the financial crisis. Hence, in both articles, the authors believe that solutions for the current financial crisis should not neglect making changes in the structure of the housing sector. As for the gaps in the studies presented by Barrell and Davies (2008) and Barrell and Hurst (2008), the authors in both articles failed to establish a strong relationship between the policy recommendations that they have made to counteract the negative effects of the financial crisis from worsening and the need to direct solutions at improving the housing sector to prevent another collapse in the future. Also, like most of the scholarly works reviewed in this paper, the articles presented by Barrell and Davies (2008) and Barrell and Hurst (2008) were both centered on the case of the US and the UK, without taking into account that these cases cannot be used to generalize the responses of other nations to the financial crisis. Perceived solutions to the credit crunch and the financial crisis After presenting the various definitions and understanding of the ongoing financial crisis, it is just apropos to also present the perceived solutions to the credit crunch as well as the financial crisis based on the literature reviewed for this study. According to Harris and Davidson (2009) governments have a huge role in addressing the credit crunches and financial crises through the enforcement of effective fiscal policy. The government holds responsibility to help manage the nations resources in order to foster growth and present more job-creating opportunities. In the same article, Harris and Davidson (2009) also raised that the initial response to the credit crunch was reliant on the role of the government to intervene and take action to prevent the consequences from worsening into a financial crisis and a global recession. The example given in the article was the case of the US, whose immediate response would be Paulsons initial $700 billion bail-out package that was envisioned to foster government spending through state and local governments spending. The research gaps identified in the studies presented above, namely the lack of coherent recommendations to address the financial crisis at the practical level were addressed by Harris and Davidson (2009). The reason for this is that Harris and Davidson (2009) stressed on the need for fiscal policies to counteract the immediate effects of the credit crunch. Although the focus on government intervention can be considered both as a positive and negative aspect of the study for the reason that in order to fully control both the financial and the social effects of a credit crunch, it is not sufficient to simply rely on fiscal policy but have a combination of both monetary and fiscal policy. With these things taken into account, the only identifiable gap in the study by Harris and Davidson (2009) is that it was not able to discuss existing and potential monetary policies that may go hand in hand with fiscal policies in managing the negative consequences of the financial crisis. The research gaps identified in the study by Harris and Davidson (2009) were effectively addressed in the study by Belke (2009) for the reason that it may have proposed the use of fiscal stimulus to counteract the direct effects of the credit crunch and that of the crisis as well but Belke (2009) also explored the option of having a combination of both monetary and fiscal policy in order prevent the credit crunch and the financial crisis from initiating a move towards a global economic meltdown. According to Belke (2009) the generic answer to prevent the generic economy from collapsing is that use of fiscal policy to sustain demand, since monetary policy with its main concentration on interest rates approaching zero is no longer effective. The strength of the study made by Belke (2009) is that it was able to cite concrete situations that will illustrate the effectiveness of using both fiscal and monetary policy. For instance, the case of the European Union (EU) specifically the UK wherein tax cuts are implemented in order to effectively increase demand and to foster higher levels and consumption were cited by Belke (2009) as an example of fiscal policy to boost the economy. With these examples and conditions taken into account, the research gap in the study presented by Belke (2009) lies on the fact that it was not able to fully exhaust the potential options that will aid nations, especially those that are not dependent on credit consumption, to handle the immediate impact of the financial crisis that has been triggered by the credit crunch in the US in 2007. Moreover, even if the most suitable cases to illustrate the proposed solutions would be that of the US and other developed EU countries, it would have been better if Belke (2009) used a comparative method between countries that relied on both fiscal and monetary policy and those that did not. It is only through comparison that Belke (2009) could further justify the assertions and recommendations that she had made in her study. As it had been previously raised in this literature review, Belke (2009) was not able to establish a relationship between fiscal policy, monetary policy and the housing sector. The reason for this would be that the housing sector was the triggered the financial crisis. Thus, it is just apt that immediate solutions be directed toward the housing sector as well. Furthermore, the fact the Belke (2009) also focused on the case of the US and the developed countries in the EU is also considered as a gap in the research for the reason that the effectiveness of both fiscal and monetary policy cannot be generalized in the case of only the US or the UK. The financial crisis and the housing sector This portion of the literature review briefly presents the effect of the financial crisis on the housing sector, where it is believed to have originated. It is already given that the credit crunch and eventually the financial crisis emanated from the housing industry in the US, but this does not mean that research should be confined in the case of the US and other economic superpowers such as the UK. The academic literature available regarding the effect of the financial crisis on the housing market and vice versa was once again confined to the case and experiences of the US. For example, in a speech delivered by Ben Bernanke (2008) he stated that housing markets remain weak, with low demand and the increased number of distressed properties on the market contributing to further declines in house prices and ongoing reductions in new construction. The observation made by Bernanke was reinforced by the arguments raised by Barrell (2008) wherein he pointed out that one of the significant factors that affected the worsening of the credit crunch into a full blown financial crisis would be the inability of the US government to respond to the need to intervene to economic activities. Based on these statements, it can be said that homeowners are affected by the decline in demand for houses because they cannot sell at a loss given that the current market prices for the house are low. In addition to this, homeowners cannot make further investments because their money has been trapped in the real estate property that they hold and their inability to shoulder the dept payments. In another scenario, homeowners who are facing debt for their mortgage are facing high risks of losing their property since they may not have the proper mechanism to generate additional income in order to finance for the payment. This was supported by Miron (2009) when he stated that if government redistributes income by intervening in the mortgage market it will however, it creates the potential for large distortions of private behavior. The financial crisis and the Australian Economy Prior to examining available literature on the effect of the present global financial crisis to the Australian housing sector, it is necessary to present the broader picture by determining the effect of the financial crisis to the overall Australian economy as well as immediate policy responses employed to control its negative consequences. The need to examine the effect of the financial crisis on the economy lies on the fact that the contagious effect of the subprime crisis has hit financial institutions in Europe and Australia, therefore, damaging health of s significant number of financial institutions and reducing the ability of others to run their business properly (Moosa, 2008). Under these conditions, Moosa (2008) presented a study that was driven by the need to clearly identify the effect of a US induced credit crunch and financial crisis towards the Australian economy, particularly in terms of the underlying policy decisions implemented by both the RBA and the government. The bursting of the US housing market bubble in 2007 led to the rapid decline in the house prices and the downgrades of related asset-backed securities as well as the collapse of the banking and lending institutions in the US and most of the EU (Moosa, 2008). The same cannot be said in the case of Australia, where the housing market was not particularly overvalued as in the case of the US, but was nonetheless vulnerable to the harsh effects of the credit crunch. The explanation behind this is that there are still large portions of subprime loans granted to borrowers in Australia, hence there is still the risk that they may not have reliable credit records. The only difference between the case of the most countries like the US and Australia in terms of the extent to which the financial crisis affected the economy are in terms of policy initiatives and effective regulation. Given this basic premise, Moosa (2008) asserted that one of the reasons why Australia was not subjected to massive losses after the financial crisis in 2008 was due to the fact that the housing sector did not experience massive shocks as in the case of the US, the UK and most countries in the EU. Typically, mortgages in banks and lending institutions was hit hard by the collapse in the subprime housing market in the US, in the case of Australia, the effect was not severe by the bursting of the housing bubble. In his study, Moosa (2008) began by discussing the reason why the subprime crisis in the US took effect in June of 2007. Moosa (2008) identified two critical areas in order to explain this. First would be the lax monetary policy as indicated by the low interest rates; second, reckless lending of banks to dodgy borrowers and excessive securitization. Although Moosa (2008) indicated in his study that the Australian economy is still susceptible to the effects of the subprime crisis brought about by liquidity situations that push investors to stay away from private sector securities, the only difference is that the Australian financial sector had the necessary policies to balance this out. The positive aspect of the study presented by Moosa (2008) is that it was able to showcase the difference between the effect of the current financial crisis in the US and other nations and Australia. Through Moosas (2008) study, it becomes clear that even though financial crises have a common shape, its consequences are not always the same for every nation. The explanation behind this is that each nation has its own set of fiscal and monetary policy. Consequently, nations, such as Australia respond differently to the same conditions set by the global financial crisis. Regarding the research gap in Moosas (2008) study, it had failed to establish the elements that were present in the Australian economy that enabled it to respond differently and optimally to the shock that was brought about by the financial crisis, as well as the credit crunch which preceded it. What could have been done by Moosa (2008) in order to address this gap would be to cite concrete instances in the Australian economy wherein the implementation of effective policies was able to overcome the negative consequences of the financial crisis. Malcolm Edey (2008), Assistant Governor of the RBA, was able to articulate reasons on why the Australian economy was able to withstand the detrimental consequences of the 2008 financial crisis. The arguments raised by Edey (2008) directly address the research gap identified in the article by Moosa (2008). According to Edey (2008), the reason why the Australian economy was able to minimize the losses despite the financial crisis and the looming threat of recession was due to the following reasons. First, subprime loans are essentially loans that do not meet standard criteria for good credit quality. In Australia, a different policy was employed to address non conforming loans. Ellis (2009) supports this by stating that in Australia, citizens pay the interest in their homes mortgage against their tax, so they are encouraged to keep their mortgage balances low. Second, unlike in other countries such as the US, the Australian government was able to develop coherent fiscal and monetary policy that will encourage households and business sectors to be more risk averse by having higher levels of savings and investment. An example of this would be the AUD 42 billion stimulus package that was called the National Building and Job Plan (Edey, 2008). To further support the points raised by Edey (2008) and Ellis (2009), Steven Kennedy (2009) from the Australian Treasury presented three reasons on why the Australian economy was one of the few who managed to overcome the negative consequences brought about by the 2007 credit crunch and the existing global financial crisis. The primary reason identified by Kennedy (2009) was that the Australian government and the RBA had timely policy responses to the occurrence of the financial crisis. Second, being at close proximity with Asian countries, such as China, Australia was able to benefit from the continuous growth rates of these Asian economies. Finally, the Australian banking system has remained in good shape throughout the crisis which meant that it has effectively operated with sound rules and regulations. The benefits offered by the studies made by Ellis (2009) and Kennedy (2009) is that both were able to acknowledge the unique characteristic of the Australian economy, which are deeply rooted in effective policy making and regulatory ability on the part of both the RBA and the government. In addition to this, income growth in Australia was already strong prior to the crisis which means that policy makers have to option to concentrate on weaker sectors of the economy that will experience the consequences of the crisis in a different scale. Again, the research gap in the observations given by Ellis (2009) and Kennedy (2009) is that the practical examples and illustrations on how these policies were translated into actual practice are once again insufficient. Another problematic aspect of these articles is that the authors only presented the positive aspect of effective monetary and fiscal policies, thus, disregarding the fact that these might also manifest flaws that might jeopardize the success of the regulation. Ellis (2009) and Kennedy (2009) in their separate articles mentioned that Australia had an edge over other nations in terms of counteracting the direct effects of the financial crises, but both scholars failed to provide stronger basis to support such assertion. The financial crisis and the housing market in Australia The final section of this literature review is allotted in examining the available studies made with regard to the current state of the housing market in Australia and how it responded towards the occurrence of the financial crisis. With regard to the overall condition of the housing market, Edgerton (2008) presented a detailed discussion of the through the pricing, purchasing and selling trends in major Australian cities namely, Sydney, Melbourne, Brisbane, Adelaide, Perth, Darwin, and Canbera. The method used by Edgerton (2008) was to analyze trends in housing price increase and/or decrease as well as trends for sales and purchases of houses in these major Australian cities. The findings from the study made by Edgerton (2008) indicate that it is not only the international factors such as the 2007 credit crunch and the existing financial crisis that may affect the overall performance and condition of the housing market. Instead, national factors may also affect the formation and eventually the bursting of housing bubbles. In order to support his claims Edgerton (2008) cited that Australia employ better lending standards compared to other countries, specifically the US. To illustrate this further, in Australia, there are no recourse loans unlike in the US where many mortgages are non-recourse. Non-recourse loans mean that the borrower in financial difficulty to pay their debts has the option of handing their house back to the bank without incurring any liability for any shortfall when the house is sold. It is a different scenario in Australia because borrowers, regardless of whether they give back the house or not (Edgerton, 2008). Hence, unlike in the US and other markets, the borrowers in Australia remain liable for any shortfall. With this, the housing markets as well as banking and lending institutions in Australia are not tasked to shoulder the losses from subprime mortgages. The strength of the study by Edgerton (2008) is that he was able to stress that Australia employs rather different regulatory practices compared to the US, particularly in handling mortgage. From a description of the quick acting policies in the housing, banking and lending sector, the Australian economy, most specifically the housing sector was able to survive and overcome the detrimental elements of the financial crisis. It is also important to point out that Edgerton (2008) is one of the few scholars who gave attention to the importance of the housing market in determining the overall performance of the economy, specifically in the case of Australia. Besides, the housing market can serve as an avenue for added investments and new business opportunities; hence it should not be taken for granted, particularly during times of crises. It was also helpful that the paper presented had visual illustrations such as graphs in order to illustrate further the performance of the economy relative to the financial crisis and its effect on the housing sector. On the other hand, the research gap in the study by Edgerton (2008) is that it was not able to establish the reasons that serve as motivation for the government to implement stricter mechanisms. Impact of the US Credit Crunch on Australian Economy Impact of the US Credit Crunch on Australian Economy Introduction However, due to the US housing credit crunch and turbulence in financial markets all over the world immediately took into effect and global economic growth slowed towards the end of the year (OBrien et al., 2007). Given this basic premise of the current financial crisis, this literature review will be guided by exploring studies made on how the US-induced credit crunch affected the Australian economy, particularly the housing market. The first stage of this literature review is attributed to describing the current financial crisis, specifically the events that led to its development such as the collapse of the US housing and banking sectors in 2007. Part of discussing the events that took place after the onset of the financial crisis would be to examine the various mechanisms employed by financial institutions and national governments in order to mitigate the direct and indirect consequences of the financial crisis. The second part of this literature review seeks to determine the effects of the financial crisis to the Australian economy, as well as the various policy responses made by both the Reserve Bank of Australia (herein referred to as RBA) and the Australian government. Finally, this literature review will determine whether studies on the current financial crisis were able to provide sufficient attention to the manner by which it affected the housing market, particularly in the case of Australia. The rationale behind these assertions lies on the need to broaden the scope of examining the consequences brought about by the credit crunch in 2007 and the financial crisis in 2008, from being centered in the US to involve other nations as well. It should always be understood that the effect of the subprime meltdown was not limited to US firms exposed to the subprime mortgage market for the reason that globalization made regional financial markets so interconnected that crisis spread across countries at tremendous speed (Moosa, 2008). Hence, it is just apropos to exhaust scholarly works that have managed to realize that at this point in time, economic activities of nations are intertwined and the development of policy solutions should also undergo the same process. Another reason for this literature review would be to identify research gaps that will in turn serve as a motivation for future studies on the effect of the current financial crisis towards nations economies such as the case of Australia. Since the underlying context for this review of related literature is the 2007 credit crunch and the 2008-present global financial crisis, the period covered for the literature surveyed in this paper will be from 2007 to the present. With these things taken into consideration, the focus of this literature review will be the effect of the 2008 financial crisis to the housing market in Australia. From the broad circumstance of the credit crunch and the financial crisis that happened in the US and inevitably transgressed to the rest of the world, this literature review seeks to identify the relationship from a macroeconomic environment of the global financial crisis to a specific case of the housing market in Australia. The justification for this lies on the need to determine whether policy responses used in the US are effective or otherwise in mitigating the direct consequences of the crisis, and vice versa. The credit crunch and the global financial crisis As it had been previously mentioned, this portion of the literature review is allotted to discuss the credit crunch as well as the occurrence of the global financial crisis. Both the credit crunch and the financial crisis are crucial concepts in this review for the reason that it will be impossible to present and examine the effects of the financial crisis to the Australian economy, specifically the housing sector if these concepts are not understood properly. According to the National Institute Economic Review (2008), the 2008 financial crisis is rooted in the US subprime mortgage defaults. Moosa (2009) defines subprime mortgages to encompass all activities involving the granting of loan to borrowers with inferior credit worthiness creating complex financial products. Meanwhile, Honohan (2008) in his study defines a credit crunch as credit related crises suffered by banks and other intermediaries which is often the cause of contraction in lending market especially if these are triggered by exogenous economic shocks. The positive attribute of the definitions provided by these authors lie on the fact that these are lifted from actual events and circumstances, more specifically the 2007 credit crunch and the current financial crisis. Another interesting point with regard to the financial crisis was given by Barrell and Hurst (2008) who stressed that financial crises are episodic and frequent and are difficult to address without major impacts in the prospect for financial growth. Based on this observation by Barrel and Hurst (2008), it becomes evident that it is inevitable under conditions of financial crises that economic growth will not be affected, especially with globalization as the underlying condition. With regard to the direct cause that led to the development of the financial crisis, Ben Bernanke (2008), believe that the period of financial turbulence on the part of the US began in 2006 when there were uncontrollable contractions in the US housing market that were caused by the inability of certain individuals to pay for subprime mortgages. Moreover, this was reinforced by increasing constraints on credit availability, which has dramatically slowed down the economy and has made it less responsive to market changes. Honohan (2008) supports this further in his discussion on the evolution of the 2008 financial crisis by asserting that the origin of the crisis was especially pronounced in the housing market wherein credit losses are so massive that it cannot be replenished anymore. The fall of house prices in the US and other major economies such as the UK directly affected economic growth in other countries. In his study, Honohan (2008) also believes that although the current global financial crisis was triggered by the 2007 credit crunch in the US banking sector brought about by the bursting of the housing bubble, definitions such as those presented by Moosa (2009) and Barrell and Hurst (2008) should not be confined to the US experience. The explanation behind this is that other nations might have responded differently upon the advent of financial crisis. In this case the positive aspects of the study by Honohan (2008) lies on the fact that it was able to present a coherent discussion of the origin of the 2008 financial crisis as something that did not happen overnight. Instead, Honohan (2008) attributes the occurrence of the financial crisis to ineffective risk management and lax monetary and fiscal policies in the US and eventually the rest of the world. Although Honohans (2008) article was focused on the banking aspect of the financial crisis and how mortgage problems in the US, his discussion of the detrimental effects of the crisis such as the closure and bankruptcy of banks and lending institutions were effective in stressing the importance of coherent monetary policies. On the other hand, the research gap identified in the article presented by Honohan (2008) is that it was highly concentrated on the banking sector in the US, thus, ignoring the direct consequences of the credit crunch and the financial crisis to the housing sector. It should always be taken into account that the financial crisis originated in the housing sector. Hence, potential solutions should first be geared towards addressing the negative consequences brought about by the crisis in the housing sector. Another gap in the study made by Honohan (2008) was that it was not able to present recommendations that will serve as a guide to policy makers as to how to mitigate the direct and indirect consequences of the current financial crisis. In a similar study, Barrell and Davis (2008) observed that the evolution of the 2007-2008 financial crises was brought about by low global interest rates arising in turn from high levels of global liquidity. This can be explained further by the case of the US wherein bank lending to households grew at unprecedented rates leading to the point that people can no longer pay their monthly dues. In addition to this, Barrell and Davis (2008) also indicated that banks are expected to hold increasingly low levels of balance sheet liquid assets, given low interest rates, and they undertook aggressive wholesale liability management to maintain funding levels. Without these initial actions taken to address the earliest manifestation of a credit crunch particularly the collapse of the housing market, countries would not have survived the crisis and will be forced to close down major financial institutions. Again, in order to understand the financial crisis and its effects towards nations and economies, it should be taken into consideration that the asset price bubble in the US in 2007 was perhaps the most noticeable occurrence in the housing sector and this has led to irreversible consequences in the financial sector. Given this event, Barrell and Hurst (2008) supports this by stating that it is the short-term fluctuations in house prices that affected consumption in countries like the US and the UK, therefore fostering slow growth in the rest of the developed world—and eventually, the rest of the world. In their discussion of the present financial crises, as well as the prospects for recession, Barrell and Hurst (2008) stated that the best way to address the negative consequences of the crisis would be through effective monetary policy through interest rates reduction which should be set by the central bank in order to prevent bubbles like the housing bubble in the US from bursting and damaging economies at larger scales. The low global interest rates contributed to rapid credit expansion and rise in asset prices which greatly contributed to the US financial crisis (Barrell Davis, 2008). The benefits provided by the study made by Barrell and Hurst (2008) and the article written by Barrell and Davis (2008) would be that in both instances, the authors were able to recognize the collapse of the housing sector as the root cause of the financial crisis. Hence, in both articles, the authors believe that solutions for the current financial crisis should not neglect making changes in the structure of the housing sector. As for the gaps in the studies presented by Barrell and Davies (2008) and Barrell and Hurst (2008), the authors in both articles failed to establish a strong relationship between the policy recommendations that they have made to counteract the negative effects of the financial crisis from worsening and the need to direct solutions at improving the housing sector to prevent another collapse in the future. Also, like most of the scholarly works reviewed in this paper, the articles presented by Barrell and Davies (2008) and Barrell and Hurst (2008) were both centered on the case of the US and the UK, without taking into account that these cases cannot be used to generalize the responses of other nations to the financial crisis. Perceived solutions to the credit crunch and the financial crisis After presenting the various definitions and understanding of the ongoing financial crisis, it is just apropos to also present the perceived solutions to the credit crunch as well as the financial crisis based on the literature reviewed for this study. According to Harris and Davidson (2009) governments have a huge role in addressing the credit crunches and financial crises through the enforcement of effective fiscal policy. The government holds responsibility to help manage the nations resources in order to foster growth and present more job-creating opportunities. In the same article, Harris and Davidson (2009) also raised that the initial response to the credit crunch was reliant on the role of the government to intervene and take action to prevent the consequences from worsening into a financial crisis and a global recession. The example given in the article was the case of the US, whose immediate response would be Paulsons initial $700 billion bail-out package that was envisioned to foster government spending through state and local governments spending. The research gaps identified in the studies presented above, namely the lack of coherent recommendations to address the financial crisis at the practical level were addressed by Harris and Davidson (2009). The reason for this is that Harris and Davidson (2009) stressed on the need for fiscal policies to counteract the immediate effects of the credit crunch. Although the focus on government intervention can be considered both as a positive and negative aspect of the study for the reason that in order to fully control both the financial and the social effects of a credit crunch, it is not sufficient to simply rely on fiscal policy but have a combination of both monetary and fiscal policy. With these things taken into account, the only identifiable gap in the study by Harris and Davidson (2009) is that it was not able to discuss existing and potential monetary policies that may go hand in hand with fiscal policies in managing the negative consequences of the financial crisis. The research gaps identified in the study by Harris and Davidson (2009) were effectively addressed in the study by Belke (2009) for the reason that it may have proposed the use of fiscal stimulus to counteract the direct effects of the credit crunch and that of the crisis as well but Belke (2009) also explored the option of having a combination of both monetary and fiscal policy in order prevent the credit crunch and the financial crisis from initiating a move towards a global economic meltdown. According to Belke (2009) the generic answer to prevent the generic economy from collapsing is that use of fiscal policy to sustain demand, since monetary policy with its main concentration on interest rates approaching zero is no longer effective. The strength of the study made by Belke (2009) is that it was able to cite concrete situations that will illustrate the effectiveness of using both fiscal and monetary policy. For instance, the case of the European Union (EU) specifically the UK wherein tax cuts are implemented in order to effectively increase demand and to foster higher levels and consumption were cited by Belke (2009) as an example of fiscal policy to boost the economy. With these examples and conditions taken into account, the research gap in the study presented by Belke (2009) lies on the fact that it was not able to fully exhaust the potential options that will aid nations, especially those that are not dependent on credit consumption, to handle the immediate impact of the financial crisis that has been triggered by the credit crunch in the US in 2007. Moreover, even if the most suitable cases to illustrate the proposed solutions would be that of the US and other developed EU countries, it would have been better if Belke (2009) used a comparative method between countries that relied on both fiscal and monetary policy and those that did not. It is only through comparison that Belke (2009) could further justify the assertions and recommendations that she had made in her study. As it had been previously raised in this literature review, Belke (2009) was not able to establish a relationship between fiscal policy, monetary policy and the housing sector. The reason for this would be that the housing sector was the triggered the financial crisis. Thus, it is just apt that immediate solutions be directed toward the housing sector as well. Furthermore, the fact the Belke (2009) also focused on the case of the US and the developed countries in the EU is also considered as a gap in the research for the reason that the effectiveness of both fiscal and monetary policy cannot be generalized in the case of only the US or the UK. The financial crisis and the housing sector This portion of the literature review briefly presents the effect of the financial crisis on the housing sector, where it is believed to have originated. It is already given that the credit crunch and eventually the financial crisis emanated from the housing industry in the US, but this does not mean that research should be confined in the case of the US and other economic superpowers such as the UK. The academic literature available regarding the effect of the financial crisis on the housing market and vice versa was once again confined to the case and experiences of the US. For example, in a speech delivered by Ben Bernanke (2008) he stated that housing markets remain weak, with low demand and the increased number of distressed properties on the market contributing to further declines in house prices and ongoing reductions in new construction. The observation made by Bernanke was reinforced by the arguments raised by Barrell (2008) wherein he pointed out that one of the significant factors that affected the worsening of the credit crunch into a full blown financial crisis would be the inability of the US government to respond to the need to intervene to economic activities. Based on these statements, it can be said that homeowners are affected by the decline in demand for houses because they cannot sell at a loss given that the current market prices for the house are low. In addition to this, homeowners cannot make further investments because their money has been trapped in the real estate property that they hold and their inability to shoulder the dept payments. In another scenario, homeowners who are facing debt for their mortgage are facing high risks of losing their property since they may not have the proper mechanism to generate additional income in order to finance for the payment. This was supported by Miron (2009) when he stated that if government redistributes income by intervening in the mortgage market it will however, it creates the potential for large distortions of private behavior. The financial crisis and the Australian Economy Prior to examining available literature on the effect of the present global financial crisis to the Australian housing sector, it is necessary to present the broader picture by determining the effect of the financial crisis to the overall Australian economy as well as immediate policy responses employed to control its negative consequences. The need to examine the effect of the financial crisis on the economy lies on the fact that the contagious effect of the subprime crisis has hit financial institutions in Europe and Australia, therefore, damaging health of s significant number of financial institutions and reducing the ability of others to run their business properly (Moosa, 2008). Under these conditions, Moosa (2008) presented a study that was driven by the need to clearly identify the effect of a US induced credit crunch and financial crisis towards the Australian economy, particularly in terms of the underlying policy decisions implemented by both the RBA and the government. The bursting of the US housing market bubble in 2007 led to the rapid decline in the house prices and the downgrades of related asset-backed securities as well as the collapse of the banking and lending institutions in the US and most of the EU (Moosa, 2008). The same cannot be said in the case of Australia, where the housing market was not particularly overvalued as in the case of the US, but was nonetheless vulnerable to the harsh effects of the credit crunch. The explanation behind this is that there are still large portions of subprime loans granted to borrowers in Australia, hence there is still the risk that they may not have reliable credit records. The only difference between the case of the most countries like the US and Australia in terms of the extent to which the financial crisis affected the economy are in terms of policy initiatives and effective regulation. Given this basic premise, Moosa (2008) asserted that one of the reasons why Australia was not subjected to massive losses after the financial crisis in 2008 was due to the fact that the housing sector did not experience massive shocks as in the case of the US, the UK and most countries in the EU. Typically, mortgages in banks and lending institutions was hit hard by the collapse in the subprime housing market in the US, in the case of Australia, the effect was not severe by the bursting of the housing bubble. In his study, Moosa (2008) began by discussing the reason why the subprime crisis in the US took effect in June of 2007. Moosa (2008) identified two critical areas in order to explain this. First would be the lax monetary policy as indicated by the low interest rates; second, reckless lending of banks to dodgy borrowers and excessive securitization. Although Moosa (2008) indicated in his study that the Australian economy is still susceptible to the effects of the subprime crisis brought about by liquidity situations that push investors to stay away from private sector securities, the only difference is that the Australian financial sector had the necessary policies to balance this out. The positive aspect of the study presented by Moosa (2008) is that it was able to showcase the difference between the effect of the current financial crisis in the US and other nations and Australia. Through Moosas (2008) study, it becomes clear that even though financial crises have a common shape, its consequences are not always the same for every nation. The explanation behind this is that each nation has its own set of fiscal and monetary policy. Consequently, nations, such as Australia respond differently to the same conditions set by the global financial crisis. Regarding the research gap in Moosas (2008) study, it had failed to establish the elements that were present in the Australian economy that enabled it to respond differently and optimally to the shock that was brought about by the financial crisis, as well as the credit crunch which preceded it. What could have been done by Moosa (2008) in order to address this gap would be to cite concrete instances in the Australian economy wherein the implementation of effective policies was able to overcome the negative consequences of the financial crisis. Malcolm Edey (2008), Assistant Governor of the RBA, was able to articulate reasons on why the Australian economy was able to withstand the detrimental consequences of the 2008 financial crisis. The arguments raised by Edey (2008) directly address the research gap identified in the article by Moosa (2008). According to Edey (2008), the reason why the Australian economy was able to minimize the losses despite the financial crisis and the looming threat of recession was due to the following reasons. First, subprime loans are essentially loans that do not meet standard criteria for good credit quality. In Australia, a different policy was employed to address non conforming loans. Ellis (2009) supports this by stating that in Australia, citizens pay the interest in their homes mortgage against their tax, so they are encouraged to keep their mortgage balances low. Second, unlike in other countries such as the US, the Australian government was able to develop coherent fiscal and monetary policy that will encourage households and business sectors to be more risk averse by having higher levels of savings and investment. An example of this would be the AUD 42 billion stimulus package that was called the National Building and Job Plan (Edey, 2008). To further support the points raised by Edey (2008) and Ellis (2009), Steven Kennedy (2009) from the Australian Treasury presented three reasons on why the Australian economy was one of the few who managed to overcome the negative consequences brought about by the 2007 credit crunch and the existing global financial crisis. The primary reason identified by Kennedy (2009) was that the Australian government and the RBA had timely policy responses to the occurrence of the financial crisis. Second, being at close proximity with Asian countries, such as China, Australia was able to benefit from the continuous growth rates of these Asian economies. Finally, the Australian banking system has remained in good shape throughout the crisis which meant that it has effectively operated with sound rules and regulations. The benefits offered by the studies made by Ellis (2009) and Kennedy (2009) is that both were able to acknowledge the unique characteristic of the Australian economy, which are deeply rooted in effective policy making and regulatory ability on the part of both the RBA and the government. In addition to this, income growth in Australia was already strong prior to the crisis which means that policy makers have to option to concentrate on weaker sectors of the economy that will experience the consequences of the crisis in a different scale. Again, the research gap in the observations given by Ellis (2009) and Kennedy (2009) is that the practical examples and illustrations on how these policies were translated into actual practice are once again insufficient. Another problematic aspect of these articles is that the authors only presented the positive aspect of effective monetary and fiscal policies, thus, disregarding the fact that these might also manifest flaws that might jeopardize the success of the regulation. Ellis (2009) and Kennedy (2009) in their separate articles mentioned that Australia had an edge over other nations in terms of counteracting the direct effects of the financial crises, but both scholars failed to provide stronger basis to support such assertion. The financial crisis and the housing market in Australia The final section of this literature review is allotted in examining the available studies made with regard to the current state of the housing market in Australia and how it responded towards the occurrence of the financial crisis. With regard to the overall condition of the housing market, Edgerton (2008) presented a detailed discussion of the through the pricing, purchasing and selling trends in major Australian cities namely, Sydney, Melbourne, Brisbane, Adelaide, Perth, Darwin, and Canbera. The method used by Edgerton (2008) was to analyze trends in housing price increase and/or decrease as well as trends for sales and purchases of houses in these major Australian cities. The findings from the study made by Edgerton (2008) indicate that it is not only the international factors such as the 2007 credit crunch and the existing financial crisis that may affect the overall performance and condition of the housing market. Instead, national factors may also affect the formation and eventually the bursting of housing bubbles. In order to support his claims Edgerton (2008) cited that Australia employ better lending standards compared to other countries, specifically the US. To illustrate this further, in Australia, there are no recourse loans unlike in the US where many mortgages are non-recourse. Non-recourse loans mean that the borrower in financial difficulty to pay their debts has the option of handing their house back to the bank without incurring any liability for any shortfall when the house is sold. It is a different scenario in Australia because borrowers, regardless of whether they give back the house or not (Edgerton, 2008). Hence, unlike in the US and other markets, the borrowers in Australia remain liable for any shortfall. With this, the housing markets as well as banking and lending institutions in Australia are not tasked to shoulder the losses from subprime mortgages. The strength of the study by Edgerton (2008) is that he was able to stress that Australia employs rather different regulatory practices compared to the US, particularly in handling mortgage. From a description of the quick acting policies in the housing, banking and lending sector, the Australian economy, most specifically the housing sector was able to survive and overcome the detrimental elements of the financial crisis. It is also important to point out that Edgerton (2008) is one of the few scholars who gave attention to the importance of the housing market in determining the overall performance of the economy, specifically in the case of Australia. Besides, the housing market can serve as an avenue for added investments and new business opportunities; hence it should not be taken for granted, particularly during times of crises. It was also helpful that the paper presented had visual illustrations such as graphs in order to illustrate further the performance of the economy relative to the financial crisis and its effect on the housing sector. On the other hand, the research gap in the study by Edgerton (2008) is that it was not able to establish the reasons that serve as motivation for the government to implement stricter mechanisms.