Wednesday, July 31, 2019

Orem

Strengths Orem’s theory provide a comprehensive base to nursing practice. It is functional in the different fields of nursing. May it be in clinical setting, education, research or administration. Moreover, this theory is as applicable for nursing by the beginning practitioner as much as the advanced clinician(George JB. , 1995). Another major strength of Orem’s theory is it’s advocacy for the use of the Nursing Process (Balabagno, et. al, 2006). Orem specifically identified the steps of this process.She also mentioned that the nursing process involves intellectual and practical phases. Limitations The ambiguity of applying theory to nursing practice may lie in the fact that one theory does not always specifically support all aspects of nursing care. Orem’s self care deficit theory may not encompass all aspects of care and needs of a specific client. For instance, some dilemma with Orem’s theory include having an unclear definition of family, the nu rse-society relationship and public education areas are weak.These issues are essential in the management and treatment plan in caring for patients. Although the family, community and environment are considered in self care action, the focus is primarily on the individual (Balabagno, et. al, 2006). Another limitation is the definition of health as being dynamic and ever changing with states ranging from health or non health, wellness or illness (Fitzpatrick JJ, 2005).This definition of health directly contradicts the experience of some patients with varying needs and levels of care requirements. One of the most obvious limitations of Orem’s theory is that throughout her work, it can be said that a limited recognition of an individual’s emotional needs is present within the theory (George JB. , 1995). It focuses more on physical care and gives lesser emphasis to psychological care. Other theories address this limitation quite adequately such as Jean Watson’s Theo ry of Caring.

Tuesday, July 30, 2019

Ecological Effects of Industrial Revolution

Ecological Effects of Industrial Revolution Museum http://ohsweb. ohiohistory. org/places/se02/index. shtml Buckeye Furnace is a reconstructed charcoal-fired iron blast furnace originally built in 1852. http://www. thehenryford. org/education/industrialRevolution. aspx Impact of Technology and Innovations during Industrial Revolution by experiencing the transition from small farms and shops of the 18th and 19th centuries to the large industrial complexes of today.Engines of Change introduces some of the people and machines that were part of this great transformation of change. Websites http://industrialrevolution. sea. ca/innovations. html Technologies are discussed that occurred during the Industrial Revolution to improve production. http://www. worldcoal. org/coal-the-environment/coal-mining-the-environment/ Coal mining and the how it affects the environment. http://www. worldcoal. org/coal-the-environment/climate-change/ Global greenhouse emissions, coal and climate change. http:/ /www. catf. us/publications/reports/Cradle_to_Grave. df The environmental impact from coal mining. http://www. nps. gov/lowe/index. htmUncover the Industrial Revolution through interactive exhibits at the Boott Cotton Mills Museum, and see the operating power looms. http://www. millerandlevine. com/km/evol/Moths/moths. html Example of evolution working through the process of natural selection caused by a changing habitat linked to the industrial revolution. http://ecology. com/features/industrial_revolution/index. html The Industrial Revolution marked a major turning point in Earth’s ecology and humans’ relationship with their environment. ttp://www. mnsu. edu/emuseum/biology/evolution/genetics/naturalselection. html A complete text explaining evolution by the process of natural selection. http://www. globalchange. umich. edu/globalchange1/current/lectures/selection/selection. html Explanation of Natural Selection. http://bsgran. people. wm. edu/melanism. pdf Peppered moth selection analysis. Journal Article Oakes, Elizabeth H. â€Å"Newcomen, Thomas. † A to Z of STS Scientists. New York: Facts On File, Inc. , 2002. Science Online. Facts On File, Inc. http://www. fofweb. com/activelink2. asp?ItemID=WE41&SID=5&iPin= azsts0137&SingleRecord=True http://www. fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= azsts0137&SingleRecord=True. With the invention of this atmospheric steam engine, the Industrial Revolution used coal as fuel. Barber, Nigel. â€Å"Ethical Issues of Air Pollution . † Encyclopedia of Ethics in Science and Technology. Facts On File, Inc. , 2002. Science Online. Facts On File, Inc. http://www. fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= ethics0008&SingleRecord=True http://www. fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= ethics0008&SingleRecord=True.Major environmental polluters feel little sense of legal liability for pollution causing ill health and habitat destruction. Hopkins, William G. â₠¬Å"photosynthesis and the environment. † Photosynthesis and Respiration, The Green World. New York: Chelsea House Publishing, 2006. Science Online. Facts On File, Inc. http://fofweb. com/activelink2. asp? ItemID=WE41&SID=5&iPin= GWPR0006&SingleRecord=True http://fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= GWPR0006&SingleRecord=True. Since Industrial Revolution, the human population has put increased pressure on the biosphere. Rosen, Joe, and Lisa Quinn Gothard. greenhouse effect. † Encyclopedia of Physical Science. New York: Facts On File, Inc. , 2009. Science Online. Facts On File, Inc. http://fofweb. com/activelink2. asp? ItemID=WE41&SID=5&iPin= EPS0098&SingleRecord=True http://fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= EPS0098&SingleRecord=True. Explanation of greenhouse effect, greenhouse gases, and energy transfers. Barber, Nigel. â€Å"ethical implications of the Industrial Revolution. † Encyclopedia of Ethics in Science and Technology. Facts On File, Inc. , 2002. Science Online. Facts On File, Inc. http://fofweb. com/activelink2. asp?ItemID=WE41&SID=5&iPin= ethics0217&SingleRecord=True http://fofweb. com/activelink2. asp? ItemID=WE40&SID=5&iPin= ethics0217&SingleRecord=True. The increased burning of fossil fuels by industry and transportation resulted in pollution to destroy ecosystems and create health problems. PowerPoint Presentations http://americanhistory. pppst. com/industrialrevolution. html http://www. birdville. k12. tx. us/Instruction/ss2/SS%20Resources/8th%20Grade%20Links/Results%20of%20Industrial%20Rev.. ppt#256,1,Results of the Industrial Revolution http://www. mrberlin. com/7th/Growth_Prosperity/cotton_gin. pt#261,1 Cotton Gin Simulation http://www. biologycorner. com/worksheets/pepperedmoth. html Simulations of peppered moth population due to predation and ecological changes. YouTube video http://www. youtube. com/watch? v=qWiv5QAZAJM Human Induced Climate Change – Ian Plimer (part 4 of 5) Bo ok Chapter Sakolsky, Josh . Critical Perspectives on the Industrial Revolution. New York: Rosen Publishing, 2005. A collection of articles which examines the Industrial Revolution. Chapter 2 Science, Technology, and Society: A Changing World. Books Stalcup, Brenda. The Industrial Revolution. San Diego: Greenhaven Press, 2002.A collection of articles which examines the causes, the spread of inventions and impact of the Industrial Revolution. Outman, James L. and Elisabeth M. Industrial Revolution: Primary Sources. Detroit: UXL, 2003. A book presenting works, speeches and testimony from which one gains an insight into the period. Evans, Chris and Goran Ryden. The Industrial Revolution in Iron: The Impact of British Coal Technologyin Nineteenth-Century Europe. London: Ashgate, 1988. Print. Hester, Ronald and Roy Harrison. Mining and its Environmental Impact. Cambridge: Royal Society of Chemistry, 1994.Print. Film/DVD Coal Country. Director Phylis Geller. 001, Liason Distribution, DVD. http://www. coalcountrythemovie. com/ Reveals the truth about modern coal mining in America. A Forest Returns: The Success Story of Ohio's Only National Forest as told by Ora E. Anderson. Producer Jean Andrews. Ohio Landscape Production, Inc. 2005. DVD. Documentary about the establishment of Wayne National Forest in Southeastern Ohio. http://www. ohiolandscape. org/09Forest. html Thesis Document number: ohiou1121272350. http://rave. ohiolink. edu/etdc/view? acc_num=ohiou1121272350 Research paper and videotaped production of Ora Anderson about the beginnings of Wayne National Forest. Gerald Nelson

Monday, July 29, 2019

A Few Good Man Movie Review Example | Topics and Well Written Essays - 500 words

A Few Good Man - Movie Review Example ges to prove the presence of Code Red, â€Å"an extrajudicial punishment† for dissenting officers, but there is a setback when it is proved that Dawson was absent when the code red order was made. As the movie ends, Colonel Jessup contradicts his testimony and angrily justifies his actions that led to the death of Santiago. Jessup is arrested, while Downey and Dawson are found guilty of unbecoming conduct of a marine and discharged dishonorably. A Few Good Men touches on military justice and demonstrates how military honor and competence is suborned by authorities. Dawson and Downey were treated fairly in A Few Good Men as they were cleared of murder and Jessup was arrested for giving the code red order on Santiago. Dawson and Downey were following orders dictated by their code on abiding to a unit, corps, God, and country in the course of duty (Sorkin, 1990, p. 32). However, they followed orders from their superiors, including Colonel Jessup, but did not regard their duty to protect those not in a position to protect themselves leading to their dishonorable discharge. There was unfairness by the justice system in choice of attorney, willingness to make plea, and choice of prosecutor. Instances exist where the judicial system treated the accused differently as they were going against the word of powerful people. The first instance is assigning the Santiago case to Kaffee and Moore despite their proven inexperience in courtrooms and Kaffee best known for settling cases regardless of guilt, innocence, or the opinion of accused. The other instance is that Downey and Dawson were investigated by military that set up the justice system through appointing the attorneys and presided over the prosecution, which is a violation of their right to fair treatment. The other difference was through instructing Kaffee to plea on behalf of the accused to avoid getting the case to trial. This is evidenced by the prosecutor cautioning him that not pleading was a risk to his

Sunday, July 28, 2019

History of McDonald's Research Paper Example | Topics and Well Written Essays - 1250 words

History of McDonald's - Research Paper Example The whole building was moved 40 miles to the East and established in San Bernardino in California. This was undertaken by the two sons of MacDonald, Richard and Maurice in 1940. The restaurant was subsequently renamed â€Å"MacDonald’s Farmhouse Barbeque† at that time the restaurant mostly sold barbequed products. In 1948, when the two brothers realized that most of the profits for the restaurant came from hamburgers, they focused their attention on the sale of hamburgers, French fries, shakes and such other fast foods that were selling fast in the restaurant. Carhops were therefore eliminated from the menu of MacDonald’s. The two brothers recognized the need to organize the restaurant in a manner that operated like an assembly line in order to ensure full efficiency. In 1948, the name of the restaurant was once again changed to McDonald’s and it reopened its doors on 12th December, 1948. Beginning of Franchises A major transformation in the growth of the restaurant began in 1953 when the McDonald’s brothers initiated a series of franchises. Such franchises were initially done in Phoenix, Arizona and in Downey, California. Sure enough, the latter is the oldest McDonald’s restaurant still in survival today. In a bid to enhance efficiency, the McDonald’s brothers initiated the Speedee as a sign of the efficient and quick system that had actually been devised. The growth of McDonald’s gathered much speed in the 1950s. In 1954 Ray Kroc acquired McDonald’s franchises in California and Arizona. Subsequently, Kroc opened his first and eventually the ninth restaurant in Chicago. This became the birth of McDonald’s Corporation. The name or the corporation was further renamed in 1960 to McDonald’s Corporation. In 1961, the business right of the company was transferred to Kroc upon his request to the McDonald’s brothers. Transformation The growth and success of McDonald’s as a quick food restaurant is partly attributed to the proper founding principles that have always defined the corporation to this day. Indeed, with millions of customers across the globe, it is inevitable that the corporation has a sense of definition that clearly tells it apart from the rest in the market. The basic concern for Ray Kroc was essentially the need to provide very quick service. In 1954, the McDonald’s hamburger stand in California could run a total of eight multi-mixers at a time. This quick service enabled the company to establish a brand from an early age. McDonald’s also boasts a very philanthropic principle which has always defined the corporation for years. Indeed, the organization is always much responsible towards the community within which it dwells and will always chip in to assist in development projects that benefit the community. The management is always very responsible about the issues and needs of their customers. This concern is clearly evident in the manner the corporation involves itself in projects like health, education and medical research. All the franchises of McDonald’s are always very positive in their social responsiveness and this has always assisted the communities in a very progressive manner. The Founding Principles One of the core principles that Kay Kroc instilled in the employees of

Saturday, July 27, 2019

Corporate Finance High School Essay Example | Topics and Well Written Essays - 1500 words

Corporate Finance High School - Essay Example That is, organizations need to be structured in such a way so the agent will expect that diligently serving the interests of his or her principals will also be in his or her own long-run best interests. In order to accomplish this, the principals need to be reasonably clever in setting up the initial rules of the game that are set in the employment contract , sufficiently vigilant in keeping track of their agents' quality of performance over time, and willing to bear at least some minimum level of "agency costs" in order to provide the necessary incentives There are many definitions for the term ethical investment, and what this term entails. Ritsie Lowry, maintainer of the GoodMoney site1 suggests that "In one sense, ethical investment is just like traditional investment. Ethical investors pursue the same economic goals as all investors: capital gains, higher income and/or preservation of capital for future needs. However, ethical investors want one additional thing. They don't want their investments going for thing that cause harm to the social or physical environments, and they do want their investments to support needed and life-supportive goods and services". From this certain definition we are able to realize that ethical investment is similar to the conventional investment, but differs to the fact that it needs one more requirement. Ethical Investors are very strict as far as the kind of business their money is going to fund. Many researches have proved that the ethical investors prefer to invest their money ethically although they know beforehand that the investment will not be as lucrative as a traditional investment. Russell Sparkes 2 in his book mentions "Repeated surveys (the last by Minitel in 1991) have shown that around 40% of the public want their money invested ethically. Interestingly enough, most of those in favor said that they would make ethical investments even if they knew that the returns would be lower than on conventional investments". Nevertheless there exist some facts which prove that ethical investment is quiet lucrative and in some cases more lucrative than the traditional investment. Weidner Investments3, point out four reasons, why the ethical investment is more profitable: 1) Management of the ethical company can focus on genuine growth without worrying about public reactions 2) Legal and hassle related costs are minimal 3) Brand loyalty is less expensive to maintain 4) Active ethical investors and consumers will give the firm free advertising again and again All these points seem quiet rational and representative of reality. We can assume that ethical

Friday, July 26, 2019

Automobile firm FORD Essay Example | Topics and Well Written Essays - 3250 words

Automobile firm FORD - Essay Example The rise in taxes in recent years has meant that petrol cars pay more VED. Companies have to take into account other laws such as new car warranties and the laws under the EU treaty such as those regarding location and block exemption. The market is oligopolistic. Ford has a high market share in 3 categories of cars. However, international competition, especially from BRIC countries, is a threat. The Ford brand has lost its appeal to the masses and is now termed as an old brand. In the market, there are high barriers to entry from financial constraints and regulatory requirements. There is threat of substitutes from environment-friendly cars. Backward integration diminishes the power of suppliers. Customers have high bargaining power in this durable goods industry. The future strategies of Ford Motors should be focused on slashing prices, improving brand image and technological innovation. The automobile industry is perhaps an industry that has suffered the most in the current global economic crisis situation. Burdened by the lack of consumer credit and cutbacks in household expenditures, this durable goods industry has had to endure setback in sales growth. Furthermore, the credit crunch has meant that the companies have found hard to draw capital from the pockets of investors. Oil price hikes and increase in credit costs pulled up the costs of manufacturing and put the giant manufacturers in the same league as small manufacturers with regard to problems faced. Companies like Chrysler have had to cut back on production in order to trim their inventories and reduce cost. Revill (2008) reports that Ford will reduce production at its Southampton factory in southern England in 2011 to 35,000 units, less than half of the 75,000 the factory built in 2007. Despite this, the automotive industry has done quite well. According to Auto Industry (2007), in 2006, 1.4 million cars and 208,000 commercial vehicles were produced in the UK. SMMT (2009) reports

Math paradoxes - geometric series Speech or Presentation

Math paradoxes - geometric series - Speech or Presentation Example The key concept here is that there are an infinite number of rooms, so that our logic – which would terminate in the ‘real world’- can go on forever. This is called ‘Hilbert’s infinite hotel paradox’ and the famed hotel is often jokingly referred to a â€Å"Hilberts† analogously to â€Å"Hiltons†! Infinity is a very hard concept to understand and possess the most absurd properties of any mathematically definable object. Cantor was the first mathematician to study the properties of infinite sets in greater detail. Suppose you group together all the even numbers (2, 4, 6, 8, 10†¦) and all the perfect squares (1, 4, 9, 16†¦) separately into two groups. Which group has more members? If selection was from a small set, say from the first 100 numbers, then the answer is fairly obvious. There are 50 even numbers in the list from 1 to 100 while there are only 10 perfect squares. As the set grows larger, we expect the ratio to remain the same. However, if the grouping is from the entire set of integers, then lo and behold, we find the rather unusual result that both the groups have exactly the same number of members! This is because, for every even number from the first set we can find a perfect square in the other set. Thus, since for every element in the first set there i s a corresponding element in the next set, we have to conclude that no set has more members than the other; as if this were to be so, some even number would have no perfect squares to relate to. Series’ show the remarkable properties of â€Å"Convergence and â€Å"Divergence†. These properties happen to be very well studied as they find applications in most branches of engineering. Take an apple pie and cut it in half. Cut one of these halves in half again and repeat the process. Initially you have 1 object (in this case a pie). It then becomes . The third iteration reduces it to . It is easy to see where we are going.

Thursday, July 25, 2019

Organizational Analysis Essay Example | Topics and Well Written Essays - 3000 words

Organizational Analysis - Essay Example This strategy comes into play whenever any organization has a certain aim or objective to reach as otherwise the entire strategy becomes an ineffective one. This strategy is used in order to be incorporated in the entire strategic planning model. For any company to be competitive, efficient and at par with the market, it has to be able to scan the internal and the external environment at that results in the fulfillment of the corporate aims. This analysis would allow the organization, to have valuable information resulting in the matching of the firm's resources and its capabilities to the sort of competition that exists in the market in which that company is operating and functioning in at present. For all companies in the present times, this tool has become highly important as it results in the strategy formulation and selection. The above diagram depicts all the four aspects which make up this analysis framework and which are used in order to scan the environment as well. The company that would be analyzed for the purpose of this paper would be done in a manner which would allow its internal and external factors to be highlighted while at the same time looking at the best possible strategy that could be used by this organization in order to achieve its corporate aims and all. Hill, T. & R. Westbrook (1997). The company that would be analyzed would be the ALDI which stands for Albrecht Discount; a discount supermarket chain which is based in Germany. It would be viewed in terms of the different areas which make it one of the biggest supermarket chains of Germany. This organization operates on a global level and delivers world class services to its global clients. This organization falls within the commercial sector which has recently had had to take a severe hit due to the recession and yet this particular organization has remained strong and steady enough-it even managed to score highly on the list of top companies operating within the European region proving that his chain has the strength which has allowed it to gain a good and strong position in the market despite such a strong setback. This organization's business services are made up of the provision of a range of goods which are available at discounted prices. The global strength of this organization can be gauged from the fact that it has over eight thousand stores worldwide and almost a new store opens up in Britain every week. The strengths of this supermarket have been this very ability to deliver quality services to a wide range of clients who have access to a number of in-house products and the outside products are unusually quite limited in number... The fact that this organization has always stressed on maintaining a low price policy which has allowed it to keep itself on its toes and hence, the ability to sustain itself during one of the worst financial scenarios to have ever existed. The innovative ideas such as having weekly special offers on more expensive products and by having a wide range of stores has translated into a strong and confident clientele. The ability of this chain to listen to the customer and value the feedback, efficient

Wednesday, July 24, 2019

The City Hall of Los Angeles Essay Example | Topics and Well Written Essays - 1250 words

The City Hall of Los Angeles - Essay Example The pride of the nation is clearly manifested by the fact that the top of City Hall's tower was designed to resemble the Mausoleum at Halicarnassus, one of the Seven Wonders of the Ancient World. The City Hall of Los Angeles is another building that represents the pride of a powerful nation in the 21st century just as El Escorial stood as a sign of a great nation in the 16th century. These two structures served their purpose of showing to the world what the country they represent was capable of doing in terms of arts, engineering, and science and technology. There are several aspects where we can equate this two architectural figures against each other. We can examine as to their purpose and usability, the motive of its conceptualization, the approach and styles the structures were developed, and their respective contributions to the history of architecture and structural engineering. This essay digs down into the essence of these facts and would try to explain them. There maybe other landmarks in the United States and the world greater than the City Hall but once in recent history it brought pride to the nation because of its structural magnificence and proportion. Besides, this structure also represents the advancement of a nation in terms or economy, culture, and science and technology. ... The building of such enormous structure serves to remind the nation of its capabilities. Speaking of the structure as a show of economic might, the LA City Hall is built in a highly progressive city within an economically superior state which is part of a super powerful nation. It represented the government being the based of its management and operation. It was built from materials obtained from different parts of LA which clearly show that its creation is a pooling of everyone's pride. The building stood in a place where nature is so unfriendly LA being in a fault and a seismic hazard. Yet it rose to the top undaunted by this geologic challenge. The gamble could only be best when the sophistication of modern architecture combined with science and technology warrants more that fifty percent of survival. It indeed survived the challenge, proof to that is it still exists today. As further evidence to the technological advancement of its structural systems, the seismic retrofit at Los Angeles City Hall was selected as a winner in Buildings magazine's 2003 Modernization Awards among other awards and citations. One important culture of the people that pushed for the building of LA structure is risk taking attitude. Taking the challenge in a rational way and making use of creative thinking and harnessing available resources and good minds makes nothing impossible. For the creative developers some things are just difficult but never impossible. Added into its pride was designing the top of City Hall's tower to resemble the Mausoleum at Halicarnassus, one of the Seven Wonders of the Ancient World. Today with continuous upgrading and reinforcing the LA City Hall survived the challenges of times. Newer structures around the

Tuesday, July 23, 2019

How a Cellular Phone System Works Assignment Example | Topics and Well Written Essays - 250 words

How a Cellular Phone System Works - Assignment Example The cells can either take a hexagonal or circular shape. One cell can operate multiple radio towers. People can simultaneously use their cell phones due to the widespread frequency reuse within a city. The cells enable cellular phones to have incredible range as they can automatically switch as people move around. A cellular network’s range is not limited as compared to that of a walkie-talkie (1.1 miles) and a CB radio (4.9 miles). Frequencies also shift between cells when an individual is on a call while in motion. As a cellular phone moves away from its cell, change in signal strength is detected by the cell’s base station. The next base station being approached detects the increasing signal strength. The two base stations in the two cells coordinate, through a Mobile-Telephone Switching Office, and the user is ‘handed over’ to the next cell automatically. The shift makes it possible for someone to drive across a city while using a cell phone, and keep up a conversation for the entire period (Wisniewski, 36). A cell phone differs from both CB radios and walkie-talkies, which are both half-duplex devices. It is able to use multiple frequencies, hence a full-duplex device. An individual can use one frequency for listening and a second frequency for talking. The multi-tasking capability of a cellular phone is that, two people on a call can talk simultaneously. The towers in these cells transmit a two-way frequency maximizing the capabilities of cellular phones as full-duplex devices. Nonadjacent cells can use the same frequencies severally since base stations and cell phones employ low-power transmitters, which ensure that transmissions do not go very far from a cell and the cell phones around it. Low-power transmitters have a stake at the shape of cellular phones since they ensure that the power consumption of the phone is relatively low hence a small battery. Similar frequencies must

Monday, July 22, 2019

Machiavelli Lao-Tzu Essay Example for Free

Machiavelli Lao-Tzu Essay Lao-tzu was an ancient Chinese philosopher from 6th century BC, the author of Tao-te Ching, and Machiavelli was an Italian philosopher who lived 2000 years after Lao-tzus time, author of Prince. They are both philosophers but have totally different perspective on how to be a good leader. While both philosophers writing is instructive. Lao-tzus advice issues from detached view of a universal ruler; Machiavellis advice is very personal perhaps demanding. Both philosophers idea will not work for todays world, because that modern world is not as perfect as Lao-tzu described in Tao-te Ching, and not as chaotic as Machiavelli illustrated in Prince. Perhaps Lao-tzu and Machivellis political system will not work for todays world, but some of their philosophies are still exist in some of modern issues. One of those issues is gun control, which has become a dividing line in America. Lao-tzu advised in Tao-te Ching weapon are the tools of violence; all decent man detest them. Weapon are the tools of fear; a decent man will avoid them except in the direst necessity and, if compelled, will use them only with the utmost restraint. On the other hand Machiavelli wrote in Prince, Francesco Sforza became Duke of Milan from being a private citizen because he was armed; his sons, since they avoided the inconveniences of arms, became private citizens after having been duke. For, among the other bad effects it causes, being disarmed makes you despised; this is one of those infamies a prince should guard himself against (page 36) in which he pointed out that taking arms from a people can make a difference between a prince and a citizen. To gun control activists, the issue is about crime and the regulation of the weapons used to commit crimes. In their opinion, law-abiding citizens should have no need for guns, which is similar to Lao-tzus idea. However in opposite, the nations powerful gun lobby, the National Rifle Association, argues that gun control is a violation of freedom and rights to protect themselves, which correspond to Machiavellis idea. I think that if American government take either sides, will end up in total chaos. Gun control, which means law-abiding citizens lose their right to protect themselves, and outlaw, will be the only one legally own firearm. But if there are totally no gun control, a five year old boy can bring a gun to school, and shoot at teacher as he please, even thought that he doesnt know better. Machiavelli wrote A prince, therefore, must not have any other object nor any other thought, nor must he take anything as his profession but war, its discipline; because that is the only profession which befits one who commands; He discussed that a Princes duty is war and only war. This lead to the second issue, war, which existed as long as the existence of human kind, as I am writing this essay there are still wars going on all over the world. According to Machiavelli war should be the only thing on a princes mind, because if a prince give more thought to personal luxuries than war he could lose his state and position. Lao-tzu states in Tao-te Ching The master doesnt try to be powerful; thus he is truly powerful. The ordinary man keeps reaching for power; thus he never has enough. I have to disagree with both philosophers idea, because I think that war can be looked at as a human evolution, in the ancient world war was fought for land and freedom. In modern world, war was fought for gross of economy. War is something that just happens, its not necessary and cant be avoided. Look into American History From Civil War to Vietnam War to Desert Storm, which cost billions dollars and millions lives, will the war ever end? We all know, the answer is no. As long as human lives, the war will never end. Perhaps Lao-tzu and Machiavellis political view is totally opposite, at the end they all have a common goal is to create an ideal political system. The constitution among other things would not allow that sort of government today. The times have defiantly changed, but the need for the higher forms of thinking amongst society has not.

Theoretical Analysis of the Banking Crisis

Theoretical Analysis of the Banking Crisis Crisis in the banking sector The current crisis and the Great Depression Theories and the crises: Several theories exist connected to the financial crises that have happened since the banking system was established. Some of them tried to explain the reasons and the origin of them however none of these theories could provide an acceptable solution how to prevent the crisis. To determine the continuity in the timeline and the spread of the crisis it was not enough to create just an economic comparison. The analysts set some mathematical and other type of model to investigate the behavior of the market. The two mostly accepted models of banking panics are the Diamond and Dybvig model and the Calomiris and Kahn model. These models were set in the 1990s as the reflection of the systematic banking crisis since 1970.Both of the two theories were accepted the fact that the banks liabilities are more liquid than its assets. In the Diamond and Dybvig model they set a hypothetical world without the banking system. The banks make contract to transform its illiquid assets.( Federal Reserve Bank of Minneapolis Quarterly Review Vol. 24, No. 1, winter 2000, pp. 14-23, Dybvig: Bank Runs, Deposit Insurance, and Liquidity).The problems with the contract is that it doesnt include any risk-sharing option. The deposit insurance is the only way to reduce the risk because its decrease the ability of the bank to transform its assets. The asymmetric information affects the liquidity demand. The final conclusion of this model is that the bank run is triggered only because patient agents believe.†This result is a self-fulfilling prophecy (panic): Because patient agents expect other patient agents to withdraw their funds early, they do the same. As a consequence too many funds are actually withdrawn, which otherwise would have not been the case. (Banking and Finance /Banking Crises.ppt/2008.12.03)† The Calomiris and Kahn model basis is the Diamond and Dybvig model, but it is more complex (Charles W. Calomiris, Charles M. Kahn, â€Å"The Role of Demandable Debt in Structuring Optimal Banking Arrangements† in American Economic Review, Vol. 81, 1991). They introduced one other potential option that the banks follow a risky behavior and put their investors money into risky projects. Because the asymmetric information the investors dont know about this step. Then, two possible things can happen; the project turns out well or not. If the project turns out negatively the bank starts to invest again. In the model the depositors can purchase information, but if is shows a negative indicator they withdraw their money. If there are a huge number of the depositors who want to withdraw the bank has serious liquidity problems and the bank panic starts. The only possible solution, according to this model, is to increase monitoring in the banking sector and strengthen the regulation to avoid moral hazard. I. The Great Depression 1. The beginning of the Great Depression (1928-30) The history of the Great Depression is important to analyze the main aspect of the crisis. From May of 1928 the stock market rise continuously and the average stock price increased because the FED raised its discount rate, and saw the stock market was booming and the stock price doubled, as excessive speculation. They tried to resolve this by increased monetary policy to raise interest rate and a new deflationary policy was introduced. As a consequence, a huge financial bubble evolved. In October 22, 1929 New York Times published an article; â€Å"Fisher Says Prices of Stocks Are Low†. (The 1929 Stock Market: Irving Fisher Was Right, Ellen R. Mc Grattan p.1) Then, two days later the stock market went crashing and the stock prices had fallen by 30 %: According to Irving Fisher the problem was that the people have been speculating on the small margins. It was not that the stock market was too high, but the people so enthusiastic to making money that they properly expected to mak e. It created debts because the people bought stocks on borrowed money. The politicians issued optimistic predictions to prevent the selling panic in the U.S. market (The causes of the 1929 stock market crash, Harold Bierman).The secretary of the Treasury, Andrew W. Melon stated: â€Å"There is no cause to worry. The high tide of prosperity will continue†. The stock market did come back in the middle of 1930, more than half of the stock that has been decline as been reversed. People thought it was over recession turned into something different. The agriculture sector stocks continued to decline. This regressive tendency was intensive not only because the Great Depression. Massive overproduction started in the European agricultural production sector after the World War I to recover the lack of the agricultural goods. To increase the legislative protection of the domestic farmers the Smoot-Hawley Tariff Act of June 1930 raised U.S. import tariffs (U.S Department of State, http://future.state.gov/). The Smoot-Hawley Tariff declined the international trust and cooperation and caused some problems in international trade. As a result of market crush bank collapsed from October 1930 until March 1933 by this time over a third of Americans bank was out of business. It continued to decline by mid 1932, the stock had declined to 10% their value in the peak 1929 and the increase in this in uncertainty from unsettled business conditions created by economic contraction made adverse selection and moral hazard problem worse in credit market. (The great crash, 1929, John Kenneth Galbraith) There was reduction in the number of intermediation due to loss of one-third of banks. This only increases adverse selection and moral hazard problem. Funds to firm with productive investment opportunities were greatly decreased due to this problem. In some sectors like manufacturing sector the production fell dramatically which was the basis of the Firms wage rates cuts. The level of price fell by 25% in the period of 1930-1933. Debt deflation was triggered in which net worth fell C:Documents and SettingsJudyAsztalunemploymen t.gifbecause of the increase burden of indebtedness borne on the firm. One sector problems affected the others. Millions of people lost their jobs. In the period of 1900-1947 two types of unemployment were made. These researches were developed the data set for the civilian labor force and for the Non-farm employees. (Historical unemployment in relation to today, A. Andrews)The employment rate declined by approximately 20% and the economic contraction and unemployment rose to 25 percent because of the decline in net worth. The result was more increase in adverse selection and moral hazard in the credit market. This was the worst ever experienced in the United States of America. 2. The FED This system was introduced to the public as economic stabilizer in 1913 to prevent further economic crisis although Federal Reserve System was totally passive during the Great Depression. In general, the Federal Reserve controls the interest rates and the money supply (inflation).The FED is controlled by its Board members and the majority of the twelve member Constitute the Federal Open Market Committee with five Reserve Bank The Fed not only supply the money to economy, it loans the money to them at interest. Besides, it regulates the value of the currency being issued. It should have acted as the last resort to lend as that its role. For the period of 1921-1929 the FED increased the money supply by 62% .The main reasons they did nothing was they never anticipated the negative of bank failure could have on money supply and economic activity. They thought a bank failure is as a consequence of poor bank management or bad banking practice. Small banks failures were the first to be affe cted in the bank panics in the early stages. And since the big city bank was the most influential they saw the failure of the small banks as complacency. Some suggested that political role might have played an important role in the passivity of the Federal Reserve System at that period. The New York Federal Reserve System was the most dominant force in the 1928, and it supported the Fed in open market purchase to lend money to the banks during the bank panics. This was opposed by other powerful member in the Federal Reserve System and the New York position was out voted. There were multiple causes and many theories about the origin of the Great Depression. According the monetarist theory the Crisis is the consequence of the lack of the FEDs policy making. The level of government influence on a bank varies from one country to another let say for example, in China the government regulation is very high probably the highest in the world and in United Kingdom the government regulation i s very low .It can be said that in the United Kingdom it high if we compare with the United State. So depending of which countries are comparing to another, government influence is usually different. 3. The economic decline (1930-32) Thanks to the Tariff Act the world market suffered a huge damage but, the act was not enough to recover the U.S. economy. People starting lose their jobs, homes and their confidence to the system and they take out their money from the banks and in the end they couldnt repay their loans. The continuous decline shows the effect in political elections in November 1930 when the representatives of the Republican Party lost their places in the Senate and their number and voting power reduced dramatically. In 1931 some new predictions appeared in the news which says that the depression would be over in the end of that year. During this year the deepening economic depression hit Europe and credit structures collapsed there. The media blamed United States for create this depression by cutting back on imports. Various conspiracy theories were voiced about the Soviet Union and some Biblical prophecy appeared too. In1932 a new presidential campaign started where Hoover and Roosevelt describe two different political aspects about the Depression. Hoovers economic aspect based on voluntarism and individualism, but the natural economic forces and the voluntary action by business groups couldnt work in the last 3 years. So his voters lost the trust in Hoover and he was easily beaten in the election (Burner David, Herbert Hoover: Alfred A. Knopf, New York, 1979). 4. The New Deal Roosevelt the new president was introduced a new program called the New Deal that contained social and economic reforms in 1933. He settled up new governmental agencies with the Glass-Steagall Act. â€Å"It gave tighter regulation of national banks to the Federal Reserve System; prohibited bank sales of securities; and created the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits with a pool of money appropriated from banks. (New York Times, http://topics.nytimes.com /topics/reference/ timestopics/subjects/g/glass_steagall_act_1933/index.html )â€Å" The senate tried to restore the peoples trust in the U.S financial system with the Glass-Steagell Act .It made a clear separation between the investment and the commercial banks .To handle the banks poor asset management Franklin Roosevelt declared a â€Å"bank holiday â€Å"as a result of bank panic in March 1933.The† bank holiday† regulated that the banks had to be until the governmental inspecto r investigation. The inspector after a monitoring process judged about the banks reopening. Another program was started namely in that time: the Agricultural Adjustment Act which helped to increase the income of the farmers. The overproduction created corps surplus and the government pay the farms, in the frame of this program, to leave the fields fallow and not to raise pigs and lambs. (Ronald Edsforth: The New Deal: Americas Response to the Great Depression, 2000) The Act aimed to raise the value of the corps, but few months later, natural disasters destroyed almost all the corps and the machinery. To help the farmers and teach them how to measure and reduce erosion the government established the Soil Conservation Service. This program stopped in 1936 when a new agricultural act had been accepted. The new regulation provides a possibility to the farmers to get federal subsidies. Besides of this, NIRA (National Industrial Recovery Act) had been accepted by the government to generate more jobs, strengthen the right of collective bargaining. The unemployment increased since the Great Depression had started. Based on this reason, they provided jobs in government projects such as work camps. Approximately two million people participated in this program until 1934. The unskilled workers got hard work like digging and railway repairs but they earned only a little money. National Labor Relations Act introduced new fair labor practices in 1935.The New Deal program had helped the US economy but didnt bring the end of the Great Depression. The roots of the economic problem came from the financial insecurity and the distribution of money, because the people on relief lived from one day to another (Bernardit Bellushit, The Failure of the NRA (1975)). The investors were afraid of buying sto cks and lose their money. The companies couldnt sell their new products because the people spent their money to food. The inventories were full and nobody wanted to produce more and that stopped the cycle of the economy. 5. The Second New Deal President Roosevelt decided to set a group of new economic and social measures and provided some legislative initiatives. The public and political forces lead the president to make some radical steps. . In 1936 Roosevelt won the election but the Americans wanted the government to take greater responsibility for the welfare of the nation. The Second New Deal as legislative program established some government controlled agencies and projects. He allocated billions of dollars to start and give a financial budget for the Work Progress Administration (WPA).Roosevelt nominated the social worker Harry Hopkins to be the head of the WPA. In its early years it focused on the construction programs such as build schools and government buildings. Attempt to the population of the United States it found that the one of every six people was unemployed and most of them was unskilled (http://www.u-shistory .com /pages /h1599.html). Unskilled laborers the forgotten man of past generation works at decen t wages. The nation was building and repairing schools, public buildings, community centers and airports to meet the changing needs of the modern world. In one project twelve hundred men were employed to improve bowling field and construct building hangers and administration buildings. In addition to the hundreds of the unskilled laborers, many skilled workers were employed in this improvement project. Hundreds of homes have been treated from bondage of property. In New York City WPA housing demolisher project was started which improved the families living conditions. In many other cities of the country old firetraps are being demolished to make way to modern buildings. Swimming pools and parks were constructed to make more public value to the community and remove the children from the streets. In many parts of the country nursery schools were established to where almost 10 thousand children got hot meals, supervised train activities. In these projects employment has been provided 6 00 hundred teachers nurses dieticians and cooks. More than 300 thousand adults learned to read and write first time in their life and started to learn foreign languages from native teachers. In cooperation with the national youth administration 26500 young man and women were employed as instructors laboratory assistants and clerical helpers.( Historical unemployment in relation to today, A. Andrews) Clerical white -collar workers find employment at filling and checking important land records. As part of the program of rehabilitation of the conservation of human resources a number of household training school were established by WPA. In these school girls from relief families are prepared for domestic works. Health education is an important part of the WPA program in a number health centers in large cities teaches the proper care of the children and adults. In some cities sawing rooms were established to support the poor families with clothes. Another type of permanent construction was the community stadium as a representative a large group of project provides the public gatherings all over America. Hundreds of new bridges were constructed thousands of old bridges have been repaired and made safe. In Many cities the construction was undertaken with the cooperation of the public health agencies. The rapid growth of air traffic gives the opportunity to built modern airports and gives a job to thousand s to improve and repair the existing facilities. The increased air transportation also made necessary the development of hundreds of emergency landing fields. In cooperation with the local police departments in several cities automobile inspection stations were established to reduce the unsafe vehicles on the roads. Women who had the principle to support their families are paid for the work. And the product they made was distributed free to the families on relief (John Salmond, The New Deal: The National Level (1975). pp. 188-89). Many other type of employment was provided for women and other part-time jobs were provided in kitchen and in libraries and schools. As a result of some projects thousand of books and maps were translated. This program also contained training for adults t o learn tailoring. The financial support of the administration was enough to invest into more projects like Federal Writers Projects , Federal Theater Project, Federal Art Project, National youth Administration ,to generate more jobs for white-collar workers.â€Å"Because Harry Hopkins believed that the work provided by the WPA should match the skills of the unemployed, artists were employed to paint murals in public buildings, sculptors created park and battlefield monuments, and actors and musicians were paid to perform. These white-collar programs did not escape criticism and the term â€Å"boondoggling† was added to the English language to describe government projects of dubious merit.( Jim Crouch, The Works Progress Administration Eh. Encyclopedia(2004)). The WAP was a long program and finally was abandoned in 1943.Social security act created a new health insurance system based on employer and employee contributions, supported by taxes 6. The SWOT Analysis of the WPA SWOT Strengths: Weaknesses: Education to unskilled workers Started project didnt wanted Various types of jobs WPA as Financial â€Å"black hole† Provide part-time jobs Political influences Jobs for Artist and Black people and Women No ability to control the workers productivity Improve the health care system Opportunities : Threats: Starting more useful projects Instable economical environment Decreasing political aspects of the projects Living expenses increases, because import stop Strengthen the economy throughout projects Potential health problems, disease could stop projects Developing international export-import partnerships Other political parties critics-political intervention Support the banking act, provide more financial security The SWOT analysis is for compute the Strength, Weaknesses, Opportunities and Threats of a sector or a company (Mehta, S. (2000) Marketing Strategy). It is used for strategic planning to create a way to the desired goal or objective. In this case it was decided to apply this technique to set a real picture about the Second New Deal through WPA. The main aim of the current analysis is not generate alternative strategies, but to summarize the situation of WPA and the critiques in 1930s.Starting with the strength of the WPA it can be seen that the group of different types of jobs were provided to a high-scale target area. People could achieve different skills by the WPAs trainings and educations, and they got motivation to learn and use their knowledge in long-term. There were several weaknesses of the program from the beginning. As a governmental project the WPA needed a huge financial background to work and in some cases they only waste the money. The critiques described that some part of the program was only started to get more votes. The real leaders of the WPA had no ability to control the workers productivity and their effectiveness. To mention some real threats the instable economic environment remained the same. The diseases could spread faster among the workers and it may stop many constructing projects and it may indicate more financial problems in the health care system. One of the most important opportunities was to prevent more political fight and decrease the obvious political aspects of the projects. It would have been useful if they could solve the import problems. The following table above contains the main strength, weaknesses, opportunities and threats. 6.1. The external factor analysis EFAS (External Factor Analysis Summary) External Factors: Weight Ratings Weighted Score Opportunities: O1 Starting more projects 0,1 3 0,3 O2 Decreasing political aspects of the projects 0,2 4 0,8 O3 Strengthen the economy through projects 0,05 3 0,15 O4 Developing international export-import partnerships 0,1 2 0,2 O5 Support the banking act, provide more financial security 0,05 3 0,15 Threats: T1 Instable economical environment 0,2 4 0,8 T2 Living expenses increases, because import stop 0,1 3 0,3 T3 Potential health problems, disease could stop projects 0,05 2 0,1 T4 Other political parties critics-political intervention 0,15 3 0,45 Total Scores: 1 1,0-5,0 3,25 The SWOT table can be used to introduce three other type of analysis the EFAS, the IFAS and the SFAS. The External factor analysis and the internal factor analysis are calculated in a same way. The external factors (opportunities, threats) are used to show the economic background of the company or the sector. The elements of the SWOT table are the main factors of these tables. Every row contains weights and the rates and the multiplied result; the weighted score. The sum of every weight has to equal by 1, and the factors ratings should be between 1 and 5.The total score will be the sum of the weighted scores and it shows a real picture about the companys position. The company is in danger if the result is less 3,5 than. 6.2 The internal factor analysis IFAS(Internal Factor Analysis Summary ) Internal Factors: Weight Ratings Weighted Score Strenghts: Education to unskilled workers 0,15 3 0,45 Various types of jobs 0,15 4 0,6 Provide part-time jobs 0,1 3 0,3 Jobs for Artist and Black people and Women 0,2 2 0,4 Improve the health care system 0,1 3 0,3 Weaknesses: Started project didnt wanted 0,05 3 0,15 WPA as Financial â€Å"black hole† 0,05 2 0,1 Political influences 0,1 4 0,4 No ability to control the workers productivity 0,1 3 0,3 Total Scores: 1 1,0-5,0 3 If the result is more than 3,5, the company is in safe. The internal factors (Strengths, Weaknesses) are closely related to the object of the analysis. The internal strengths and weaknesses summarize the main topics the company has to deal with. The total score is 3 and this means that the company is not in safe and for a long -term basis the management has to handle the weaknesses to strengthen the company position in the market. SFAS(Strategic Factor Analysis Summary ) Factors: Weight Ratings Weighted Score Duration (in terms) S Strenghts: Short Medium Long S1 Education to unskilled workers 0,2 3 0,6 X S4 Jobs for Artist and Black people and Women 0,2 4 0,8 X W Weaknesses: W3 Political influences 0,15 4 0,6 X W4 No ability to control the workers productivity 0,1 2 0,2 X O Opportunities: O1 Starting more projects 0,05 5 0,25 X O2 Decreasing political aspects of the projects 0,05 1 0,05 X T Threats: T1 Instable economical environment 0,2 4 0,8 X T4 Other political parties critics-political intervention 0,05 3 0,15 X Total Scores: 1 1,0-5,0 3,45 6.3. The Strategic Factor Analysis Summary The Strategic Factor Analysis Summary (Business Policy and Strategy lecture SFAS power point presentation 2008.12.03) has an additional column, the duration that is separated into three different parts; long-term, medium-term, and short-term .The most important factors are listed here with weights and ratings to represent the main internal and external aspects of the WPA and to make a summary about the problems and possibilities. As a conclusion, based on the analysis listed below, the SFAS ‘s weighted score is 3,45.It means that the WPA could work in a long-term if the leadership could handle the problems. The WPA project stopped in 1944; therefore the main reasons did not connected to the internal factors, but only the externals. Some critiques had right the all the projects of WPA had only a political step to achieve more cotes in the elections. 7. The worlds reaction to the Great Depression (Theories) The world reacted in a several way to the Great depression and created a lot of theories how to solve the situation. The most famous reaction was the communism, fascism and the Keynesian theory. The fascism took place in Germany, Italy and it represented a highly centralized economy. The public construction programs provided jobs for unskilled labourers to built roads, work camps and military facilities. It increased the demography of the population, but the system was highly dictatorial. According to the statistics the unemployment rate decreased dramatically from 6 million to 0.2 million people.The Communism, as a highly bureaucratic and centralized system, was one of response to the Great Depression. It focused to fully employ the people in a strictly regulated obligatory way. The Keynesian theory: It states that the fully employment is needed, but only the intervention of the government can create this possibility. It can be long -term purpose of the existence of the government. The Keynesian theory changed the way of the thinking about the unemployment. The idea of the welfare state was another solution of the crisis. The education, the minimal guarantee of a job to every citizen is the basis of a welfare system. It guarantees the minimum wages and the minimum social and healthcare system. II. The Current Financial Crisis 1. The beginning of the Current Crisis The current financial crisis started in 2007, but it was not until the last quarter of 2008 .Firstly, this part of the thesis going to show how it all started, the causes and those who were affected by the crisis and how they are trying to deal with the crisis. Most of the people are pointing directly to real estate as the major cause of the current financial crisis even financial institutions that not directly involve with real estate are affected. It can be seen how the subprime mortgages and unscrupulous lenders has caused the unsustainable real estate bubble which began to collapse in 2006.There was increase in homeownership in the United State to about 5 million in little more than six years thanks to the increase in subprime lending. Within these six years constructions of new house sing units grew more but this housing bubble could not grow forever. In this period the price of house went so high and rent price went so low. When the price of housing began to decrease in the lat e 2006 to early 2007, many subprime borrowers had very hard time to make their payment. The housing bubble or the excesses of the subprime mortgage market became even more evident when subprime mortgage lender filed for bankruptcy. All the sectors like households, businesses (including financial institutions), and government are the main participants in the financial market and hit by the crisis. The secondly related financial groups are the surplus units provide funds and while the other group that enter the financial market to obtain fund are the deficit units. If market securities yield low returns why invest in it? Three factors can be seen to why it important to make investment in market securities these are, as we have said before the advantage to convert to cash rapidly so it can be substitute as cash. The second reason is that when a firm has excess cash let say for a month it can invest the excess cash in form of securities as not to hold too much cash in hand. The third reason is that when a firm know it going to pay a loan soon it gathers the money monthly to pay and this money could be invest in market securities before the loan is to be paid. As it have seen when the financial crisis started the public could see that the financial system is in a deep trouble some even call it recession because the stock market came crashing and lost almost 42% of it original price. Before the peak of the financial crisis the total world stock market worth $62.5 trillion and now it $36.6 trillion so it lost $25.9 trillion. Let compare the stock market of leading countries of one day and another day and see how it doing. STOCK MARKETS May 5 prev %chg SP 500 903.8 907.24 -0.38 Nasdaq Comp 1754.12 1763.56 -0.54 Dow Jones Ind 8410.65 8426.74 -0.19 FTSEurofirst 300 846.81 842.7 +0.49 DJ Euro Stoxx 50 2407.55 2419.53 -0.50 FTSE 100 4336.94 4243.22 +2.21 FTSE All-Share UK 2226.6 2174.64 +2.39 CAC 40 3225.0 3237.97 -0.40 Xetra Dax 4853.03 4902.45 -1.01 Nikkei (c) 8977.37 Hang Seng 16430.08 16381.05 +0.30 FTSE All World $ 153.46 153.19 +0.18 ( source New York Times May 5 2008) There was turmoil in the all over the international financial system due to the losses in the subprime mortgage in the mid-2007.This was wide spread global crisis even thus firm not associated with the mortgage firm. This made the financial institutions very nervous and the stock market got very weak. Between July 2007 and March 2008, there was a significantly drop in the price of shares in the large, small and investment bank. A Theoretical Analysis of the Banking Crisis Theoretical Analysis of the Banking Crisis Crisis in the banking sector The current crisis and the Great Depression Theories and the crises: Several theories exist connected to the financial crises that have happened since the banking system was established. Some of them tried to explain the reasons and the origin of them however none of these theories could provide an acceptable solution how to prevent the crisis. To determine the continuity in the timeline and the spread of the crisis it was not enough to create just an economic comparison. The analysts set some mathematical and other type of model to investigate the behavior of the market. The two mostly accepted models of banking panics are the Diamond and Dybvig model and the Calomiris and Kahn model. These models were set in the 1990s as the reflection of the systematic banking crisis since 1970.Both of the two theories were accepted the fact that the banks liabilities are more liquid than its assets. In the Diamond and Dybvig model they set a hypothetical world without the banking system. The banks make contract to transform its illiquid assets.( Federal Reserve Bank of Minneapolis Quarterly Review Vol. 24, No. 1, winter 2000, pp. 14-23, Dybvig: Bank Runs, Deposit Insurance, and Liquidity).The problems with the contract is that it doesnt include any risk-sharing option. The deposit insurance is the only way to reduce the risk because its decrease the ability of the bank to transform its assets. The asymmetric information affects the liquidity demand. The final conclusion of this model is that the bank run is triggered only because patient agents believe.†This result is a self-fulfilling prophecy (panic): Because patient agents expect other patient agents to withdraw their funds early, they do the same. As a consequence too many funds are actually withdrawn, which otherwise would have not been the case. (Banking and Finance /Banking Crises.ppt/2008.12.03)† The Calomiris and Kahn model basis is the Diamond and Dybvig model, but it is more complex (Charles W. Calomiris, Charles M. Kahn, â€Å"The Role of Demandable Debt in Structuring Optimal Banking Arrangements† in American Economic Review, Vol. 81, 1991). They introduced one other potential option that the banks follow a risky behavior and put their investors money into risky projects. Because the asymmetric information the investors dont know about this step. Then, two possible things can happen; the project turns out well or not. If the project turns out negatively the bank starts to invest again. In the model the depositors can purchase information, but if is shows a negative indicator they withdraw their money. If there are a huge number of the depositors who want to withdraw the bank has serious liquidity problems and the bank panic starts. The only possible solution, according to this model, is to increase monitoring in the banking sector and strengthen the regulation to avoid moral hazard. I. The Great Depression 1. The beginning of the Great Depression (1928-30) The history of the Great Depression is important to analyze the main aspect of the crisis. From May of 1928 the stock market rise continuously and the average stock price increased because the FED raised its discount rate, and saw the stock market was booming and the stock price doubled, as excessive speculation. They tried to resolve this by increased monetary policy to raise interest rate and a new deflationary policy was introduced. As a consequence, a huge financial bubble evolved. In October 22, 1929 New York Times published an article; â€Å"Fisher Says Prices of Stocks Are Low†. (The 1929 Stock Market: Irving Fisher Was Right, Ellen R. Mc Grattan p.1) Then, two days later the stock market went crashing and the stock prices had fallen by 30 %: According to Irving Fisher the problem was that the people have been speculating on the small margins. It was not that the stock market was too high, but the people so enthusiastic to making money that they properly expected to mak e. It created debts because the people bought stocks on borrowed money. The politicians issued optimistic predictions to prevent the selling panic in the U.S. market (The causes of the 1929 stock market crash, Harold Bierman).The secretary of the Treasury, Andrew W. Melon stated: â€Å"There is no cause to worry. The high tide of prosperity will continue†. The stock market did come back in the middle of 1930, more than half of the stock that has been decline as been reversed. People thought it was over recession turned into something different. The agriculture sector stocks continued to decline. This regressive tendency was intensive not only because the Great Depression. Massive overproduction started in the European agricultural production sector after the World War I to recover the lack of the agricultural goods. To increase the legislative protection of the domestic farmers the Smoot-Hawley Tariff Act of June 1930 raised U.S. import tariffs (U.S Department of State, http://future.state.gov/). The Smoot-Hawley Tariff declined the international trust and cooperation and caused some problems in international trade. As a result of market crush bank collapsed from October 1930 until March 1933 by this time over a third of Americans bank was out of business. It continued to decline by mid 1932, the stock had declined to 10% their value in the peak 1929 and the increase in this in uncertainty from unsettled business conditions created by economic contraction made adverse selection and moral hazard problem worse in credit market. (The great crash, 1929, John Kenneth Galbraith) There was reduction in the number of intermediation due to loss of one-third of banks. This only increases adverse selection and moral hazard problem. Funds to firm with productive investment opportunities were greatly decreased due to this problem. In some sectors like manufacturing sector the production fell dramatically which was the basis of the Firms wage rates cuts. The level of price fell by 25% in the period of 1930-1933. Debt deflation was triggered in which net worth fell C:Documents and SettingsJudyAsztalunemploymen t.gifbecause of the increase burden of indebtedness borne on the firm. One sector problems affected the others. Millions of people lost their jobs. In the period of 1900-1947 two types of unemployment were made. These researches were developed the data set for the civilian labor force and for the Non-farm employees. (Historical unemployment in relation to today, A. Andrews)The employment rate declined by approximately 20% and the economic contraction and unemployment rose to 25 percent because of the decline in net worth. The result was more increase in adverse selection and moral hazard in the credit market. This was the worst ever experienced in the United States of America. 2. The FED This system was introduced to the public as economic stabilizer in 1913 to prevent further economic crisis although Federal Reserve System was totally passive during the Great Depression. In general, the Federal Reserve controls the interest rates and the money supply (inflation).The FED is controlled by its Board members and the majority of the twelve member Constitute the Federal Open Market Committee with five Reserve Bank The Fed not only supply the money to economy, it loans the money to them at interest. Besides, it regulates the value of the currency being issued. It should have acted as the last resort to lend as that its role. For the period of 1921-1929 the FED increased the money supply by 62% .The main reasons they did nothing was they never anticipated the negative of bank failure could have on money supply and economic activity. They thought a bank failure is as a consequence of poor bank management or bad banking practice. Small banks failures were the first to be affe cted in the bank panics in the early stages. And since the big city bank was the most influential they saw the failure of the small banks as complacency. Some suggested that political role might have played an important role in the passivity of the Federal Reserve System at that period. The New York Federal Reserve System was the most dominant force in the 1928, and it supported the Fed in open market purchase to lend money to the banks during the bank panics. This was opposed by other powerful member in the Federal Reserve System and the New York position was out voted. There were multiple causes and many theories about the origin of the Great Depression. According the monetarist theory the Crisis is the consequence of the lack of the FEDs policy making. The level of government influence on a bank varies from one country to another let say for example, in China the government regulation is very high probably the highest in the world and in United Kingdom the government regulation i s very low .It can be said that in the United Kingdom it high if we compare with the United State. So depending of which countries are comparing to another, government influence is usually different. 3. The economic decline (1930-32) Thanks to the Tariff Act the world market suffered a huge damage but, the act was not enough to recover the U.S. economy. People starting lose their jobs, homes and their confidence to the system and they take out their money from the banks and in the end they couldnt repay their loans. The continuous decline shows the effect in political elections in November 1930 when the representatives of the Republican Party lost their places in the Senate and their number and voting power reduced dramatically. In 1931 some new predictions appeared in the news which says that the depression would be over in the end of that year. During this year the deepening economic depression hit Europe and credit structures collapsed there. The media blamed United States for create this depression by cutting back on imports. Various conspiracy theories were voiced about the Soviet Union and some Biblical prophecy appeared too. In1932 a new presidential campaign started where Hoover and Roosevelt describe two different political aspects about the Depression. Hoovers economic aspect based on voluntarism and individualism, but the natural economic forces and the voluntary action by business groups couldnt work in the last 3 years. So his voters lost the trust in Hoover and he was easily beaten in the election (Burner David, Herbert Hoover: Alfred A. Knopf, New York, 1979). 4. The New Deal Roosevelt the new president was introduced a new program called the New Deal that contained social and economic reforms in 1933. He settled up new governmental agencies with the Glass-Steagall Act. â€Å"It gave tighter regulation of national banks to the Federal Reserve System; prohibited bank sales of securities; and created the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits with a pool of money appropriated from banks. (New York Times, http://topics.nytimes.com /topics/reference/ timestopics/subjects/g/glass_steagall_act_1933/index.html )â€Å" The senate tried to restore the peoples trust in the U.S financial system with the Glass-Steagell Act .It made a clear separation between the investment and the commercial banks .To handle the banks poor asset management Franklin Roosevelt declared a â€Å"bank holiday â€Å"as a result of bank panic in March 1933.The† bank holiday† regulated that the banks had to be until the governmental inspecto r investigation. The inspector after a monitoring process judged about the banks reopening. Another program was started namely in that time: the Agricultural Adjustment Act which helped to increase the income of the farmers. The overproduction created corps surplus and the government pay the farms, in the frame of this program, to leave the fields fallow and not to raise pigs and lambs. (Ronald Edsforth: The New Deal: Americas Response to the Great Depression, 2000) The Act aimed to raise the value of the corps, but few months later, natural disasters destroyed almost all the corps and the machinery. To help the farmers and teach them how to measure and reduce erosion the government established the Soil Conservation Service. This program stopped in 1936 when a new agricultural act had been accepted. The new regulation provides a possibility to the farmers to get federal subsidies. Besides of this, NIRA (National Industrial Recovery Act) had been accepted by the government to generate more jobs, strengthen the right of collective bargaining. The unemployment increased since the Great Depression had started. Based on this reason, they provided jobs in government projects such as work camps. Approximately two million people participated in this program until 1934. The unskilled workers got hard work like digging and railway repairs but they earned only a little money. National Labor Relations Act introduced new fair labor practices in 1935.The New Deal program had helped the US economy but didnt bring the end of the Great Depression. The roots of the economic problem came from the financial insecurity and the distribution of money, because the people on relief lived from one day to another (Bernardit Bellushit, The Failure of the NRA (1975)). The investors were afraid of buying sto cks and lose their money. The companies couldnt sell their new products because the people spent their money to food. The inventories were full and nobody wanted to produce more and that stopped the cycle of the economy. 5. The Second New Deal President Roosevelt decided to set a group of new economic and social measures and provided some legislative initiatives. The public and political forces lead the president to make some radical steps. . In 1936 Roosevelt won the election but the Americans wanted the government to take greater responsibility for the welfare of the nation. The Second New Deal as legislative program established some government controlled agencies and projects. He allocated billions of dollars to start and give a financial budget for the Work Progress Administration (WPA).Roosevelt nominated the social worker Harry Hopkins to be the head of the WPA. In its early years it focused on the construction programs such as build schools and government buildings. Attempt to the population of the United States it found that the one of every six people was unemployed and most of them was unskilled (http://www.u-shistory .com /pages /h1599.html). Unskilled laborers the forgotten man of past generation works at decen t wages. The nation was building and repairing schools, public buildings, community centers and airports to meet the changing needs of the modern world. In one project twelve hundred men were employed to improve bowling field and construct building hangers and administration buildings. In addition to the hundreds of the unskilled laborers, many skilled workers were employed in this improvement project. Hundreds of homes have been treated from bondage of property. In New York City WPA housing demolisher project was started which improved the families living conditions. In many other cities of the country old firetraps are being demolished to make way to modern buildings. Swimming pools and parks were constructed to make more public value to the community and remove the children from the streets. In many parts of the country nursery schools were established to where almost 10 thousand children got hot meals, supervised train activities. In these projects employment has been provided 6 00 hundred teachers nurses dieticians and cooks. More than 300 thousand adults learned to read and write first time in their life and started to learn foreign languages from native teachers. In cooperation with the national youth administration 26500 young man and women were employed as instructors laboratory assistants and clerical helpers.( Historical unemployment in relation to today, A. Andrews) Clerical white -collar workers find employment at filling and checking important land records. As part of the program of rehabilitation of the conservation of human resources a number of household training school were established by WPA. In these school girls from relief families are prepared for domestic works. Health education is an important part of the WPA program in a number health centers in large cities teaches the proper care of the children and adults. In some cities sawing rooms were established to support the poor families with clothes. Another type of permanent construction was the community stadium as a representative a large group of project provides the public gatherings all over America. Hundreds of new bridges were constructed thousands of old bridges have been repaired and made safe. In Many cities the construction was undertaken with the cooperation of the public health agencies. The rapid growth of air traffic gives the opportunity to built modern airports and gives a job to thousand s to improve and repair the existing facilities. The increased air transportation also made necessary the development of hundreds of emergency landing fields. In cooperation with the local police departments in several cities automobile inspection stations were established to reduce the unsafe vehicles on the roads. Women who had the principle to support their families are paid for the work. And the product they made was distributed free to the families on relief (John Salmond, The New Deal: The National Level (1975). pp. 188-89). Many other type of employment was provided for women and other part-time jobs were provided in kitchen and in libraries and schools. As a result of some projects thousand of books and maps were translated. This program also contained training for adults t o learn tailoring. The financial support of the administration was enough to invest into more projects like Federal Writers Projects , Federal Theater Project, Federal Art Project, National youth Administration ,to generate more jobs for white-collar workers.â€Å"Because Harry Hopkins believed that the work provided by the WPA should match the skills of the unemployed, artists were employed to paint murals in public buildings, sculptors created park and battlefield monuments, and actors and musicians were paid to perform. These white-collar programs did not escape criticism and the term â€Å"boondoggling† was added to the English language to describe government projects of dubious merit.( Jim Crouch, The Works Progress Administration Eh. Encyclopedia(2004)). The WAP was a long program and finally was abandoned in 1943.Social security act created a new health insurance system based on employer and employee contributions, supported by taxes 6. The SWOT Analysis of the WPA SWOT Strengths: Weaknesses: Education to unskilled workers Started project didnt wanted Various types of jobs WPA as Financial â€Å"black hole† Provide part-time jobs Political influences Jobs for Artist and Black people and Women No ability to control the workers productivity Improve the health care system Opportunities : Threats: Starting more useful projects Instable economical environment Decreasing political aspects of the projects Living expenses increases, because import stop Strengthen the economy throughout projects Potential health problems, disease could stop projects Developing international export-import partnerships Other political parties critics-political intervention Support the banking act, provide more financial security The SWOT analysis is for compute the Strength, Weaknesses, Opportunities and Threats of a sector or a company (Mehta, S. (2000) Marketing Strategy). It is used for strategic planning to create a way to the desired goal or objective. In this case it was decided to apply this technique to set a real picture about the Second New Deal through WPA. The main aim of the current analysis is not generate alternative strategies, but to summarize the situation of WPA and the critiques in 1930s.Starting with the strength of the WPA it can be seen that the group of different types of jobs were provided to a high-scale target area. People could achieve different skills by the WPAs trainings and educations, and they got motivation to learn and use their knowledge in long-term. There were several weaknesses of the program from the beginning. As a governmental project the WPA needed a huge financial background to work and in some cases they only waste the money. The critiques described that some part of the program was only started to get more votes. The real leaders of the WPA had no ability to control the workers productivity and their effectiveness. To mention some real threats the instable economic environment remained the same. The diseases could spread faster among the workers and it may stop many constructing projects and it may indicate more financial problems in the health care system. One of the most important opportunities was to prevent more political fight and decrease the obvious political aspects of the projects. It would have been useful if they could solve the import problems. The following table above contains the main strength, weaknesses, opportunities and threats. 6.1. The external factor analysis EFAS (External Factor Analysis Summary) External Factors: Weight Ratings Weighted Score Opportunities: O1 Starting more projects 0,1 3 0,3 O2 Decreasing political aspects of the projects 0,2 4 0,8 O3 Strengthen the economy through projects 0,05 3 0,15 O4 Developing international export-import partnerships 0,1 2 0,2 O5 Support the banking act, provide more financial security 0,05 3 0,15 Threats: T1 Instable economical environment 0,2 4 0,8 T2 Living expenses increases, because import stop 0,1 3 0,3 T3 Potential health problems, disease could stop projects 0,05 2 0,1 T4 Other political parties critics-political intervention 0,15 3 0,45 Total Scores: 1 1,0-5,0 3,25 The SWOT table can be used to introduce three other type of analysis the EFAS, the IFAS and the SFAS. The External factor analysis and the internal factor analysis are calculated in a same way. The external factors (opportunities, threats) are used to show the economic background of the company or the sector. The elements of the SWOT table are the main factors of these tables. Every row contains weights and the rates and the multiplied result; the weighted score. The sum of every weight has to equal by 1, and the factors ratings should be between 1 and 5.The total score will be the sum of the weighted scores and it shows a real picture about the companys position. The company is in danger if the result is less 3,5 than. 6.2 The internal factor analysis IFAS(Internal Factor Analysis Summary ) Internal Factors: Weight Ratings Weighted Score Strenghts: Education to unskilled workers 0,15 3 0,45 Various types of jobs 0,15 4 0,6 Provide part-time jobs 0,1 3 0,3 Jobs for Artist and Black people and Women 0,2 2 0,4 Improve the health care system 0,1 3 0,3 Weaknesses: Started project didnt wanted 0,05 3 0,15 WPA as Financial â€Å"black hole† 0,05 2 0,1 Political influences 0,1 4 0,4 No ability to control the workers productivity 0,1 3 0,3 Total Scores: 1 1,0-5,0 3 If the result is more than 3,5, the company is in safe. The internal factors (Strengths, Weaknesses) are closely related to the object of the analysis. The internal strengths and weaknesses summarize the main topics the company has to deal with. The total score is 3 and this means that the company is not in safe and for a long -term basis the management has to handle the weaknesses to strengthen the company position in the market. SFAS(Strategic Factor Analysis Summary ) Factors: Weight Ratings Weighted Score Duration (in terms) S Strenghts: Short Medium Long S1 Education to unskilled workers 0,2 3 0,6 X S4 Jobs for Artist and Black people and Women 0,2 4 0,8 X W Weaknesses: W3 Political influences 0,15 4 0,6 X W4 No ability to control the workers productivity 0,1 2 0,2 X O Opportunities: O1 Starting more projects 0,05 5 0,25 X O2 Decreasing political aspects of the projects 0,05 1 0,05 X T Threats: T1 Instable economical environment 0,2 4 0,8 X T4 Other political parties critics-political intervention 0,05 3 0,15 X Total Scores: 1 1,0-5,0 3,45 6.3. The Strategic Factor Analysis Summary The Strategic Factor Analysis Summary (Business Policy and Strategy lecture SFAS power point presentation 2008.12.03) has an additional column, the duration that is separated into three different parts; long-term, medium-term, and short-term .The most important factors are listed here with weights and ratings to represent the main internal and external aspects of the WPA and to make a summary about the problems and possibilities. As a conclusion, based on the analysis listed below, the SFAS ‘s weighted score is 3,45.It means that the WPA could work in a long-term if the leadership could handle the problems. The WPA project stopped in 1944; therefore the main reasons did not connected to the internal factors, but only the externals. Some critiques had right the all the projects of WPA had only a political step to achieve more cotes in the elections. 7. The worlds reaction to the Great Depression (Theories) The world reacted in a several way to the Great depression and created a lot of theories how to solve the situation. The most famous reaction was the communism, fascism and the Keynesian theory. The fascism took place in Germany, Italy and it represented a highly centralized economy. The public construction programs provided jobs for unskilled labourers to built roads, work camps and military facilities. It increased the demography of the population, but the system was highly dictatorial. According to the statistics the unemployment rate decreased dramatically from 6 million to 0.2 million people.The Communism, as a highly bureaucratic and centralized system, was one of response to the Great Depression. It focused to fully employ the people in a strictly regulated obligatory way. The Keynesian theory: It states that the fully employment is needed, but only the intervention of the government can create this possibility. It can be long -term purpose of the existence of the government. The Keynesian theory changed the way of the thinking about the unemployment. The idea of the welfare state was another solution of the crisis. The education, the minimal guarantee of a job to every citizen is the basis of a welfare system. It guarantees the minimum wages and the minimum social and healthcare system. II. The Current Financial Crisis 1. The beginning of the Current Crisis The current financial crisis started in 2007, but it was not until the last quarter of 2008 .Firstly, this part of the thesis going to show how it all started, the causes and those who were affected by the crisis and how they are trying to deal with the crisis. Most of the people are pointing directly to real estate as the major cause of the current financial crisis even financial institutions that not directly involve with real estate are affected. It can be seen how the subprime mortgages and unscrupulous lenders has caused the unsustainable real estate bubble which began to collapse in 2006.There was increase in homeownership in the United State to about 5 million in little more than six years thanks to the increase in subprime lending. Within these six years constructions of new house sing units grew more but this housing bubble could not grow forever. In this period the price of house went so high and rent price went so low. When the price of housing began to decrease in the lat e 2006 to early 2007, many subprime borrowers had very hard time to make their payment. The housing bubble or the excesses of the subprime mortgage market became even more evident when subprime mortgage lender filed for bankruptcy. All the sectors like households, businesses (including financial institutions), and government are the main participants in the financial market and hit by the crisis. The secondly related financial groups are the surplus units provide funds and while the other group that enter the financial market to obtain fund are the deficit units. If market securities yield low returns why invest in it? Three factors can be seen to why it important to make investment in market securities these are, as we have said before the advantage to convert to cash rapidly so it can be substitute as cash. The second reason is that when a firm has excess cash let say for a month it can invest the excess cash in form of securities as not to hold too much cash in hand. The third reason is that when a firm know it going to pay a loan soon it gathers the money monthly to pay and this money could be invest in market securities before the loan is to be paid. As it have seen when the financial crisis started the public could see that the financial system is in a deep trouble some even call it recession because the stock market came crashing and lost almost 42% of it original price. Before the peak of the financial crisis the total world stock market worth $62.5 trillion and now it $36.6 trillion so it lost $25.9 trillion. Let compare the stock market of leading countries of one day and another day and see how it doing. STOCK MARKETS May 5 prev %chg SP 500 903.8 907.24 -0.38 Nasdaq Comp 1754.12 1763.56 -0.54 Dow Jones Ind 8410.65 8426.74 -0.19 FTSEurofirst 300 846.81 842.7 +0.49 DJ Euro Stoxx 50 2407.55 2419.53 -0.50 FTSE 100 4336.94 4243.22 +2.21 FTSE All-Share UK 2226.6 2174.64 +2.39 CAC 40 3225.0 3237.97 -0.40 Xetra Dax 4853.03 4902.45 -1.01 Nikkei (c) 8977.37 Hang Seng 16430.08 16381.05 +0.30 FTSE All World $ 153.46 153.19 +0.18 ( source New York Times May 5 2008) There was turmoil in the all over the international financial system due to the losses in the subprime mortgage in the mid-2007.This was wide spread global crisis even thus firm not associated with the mortgage firm. This made the financial institutions very nervous and the stock market got very weak. Between July 2007 and March 2008, there was a significantly drop in the price of shares in the large, small and investment bank. A

Sunday, July 21, 2019

Analysis of Islamic Architecture

Analysis of Islamic Architecture The eternal principle behind modern Islamic architecture is about the story that evolves from ancient times of Islam architecture and move towards modernism. Modernism began to slowly grow since Industrial revolution started. Since the period, it has turn Islamic architecture to explore in depth with the use of mass production. At the same time, continuing the richness of Islamic architecture elements and forms with influences from Euro and how it brought to Singapore, which is known to be one of the elite modern countries. The spread through revolution is rapid and challenges occur in Islamic architecture to keep up with the modern times and also embracing its cultural identity. The comparison between Euro and Singapore Islamic architecture for religious building carries the same element of projecting modernism as religious spaces. As well as modification of few elements of Islamic form into simplistic manner that fits in the society that lives in. Academic building as modern Islamic architecture reveals representation of different materials and colours to interpret Islamic perspective. The differences in the application use by Egypt and Singapore were selective yet portray the element of Islamic architecture. Commercial building in Islamic and Singapore as multi-cultural country sets different challenges. The application of the elements are achievable, however in site context, attraction as identity and carrying the character may be difficult due to the society that lives in, and how they perceive it differently. Introduction The variety of artistic developments in todays Islamic Architecture is influenced by both traditional forms and by modernism. There was a greater openness of Islamic architecture to European styles, also varied and distinctive new approaches to the analysis of their own tradition. Whether or not it ranges from secular to religious, Islamic architecture carry the same element of style such as the geometric shapes and repetitive art. Standing still in this modern era, Islamic architecture has been famous for its traditional forms. For example the concept of art rests on a basic foundation of calligraphy, geometry and, in architecture, the repetition and multiplication of elements based on the arch. Usually there are allied and parallel floral and figural motifs. Other element such as the water and light are also important for Islamic architecture decoration as they contribute in generating layers of pattern for surface decoration. With these surfaces, they are able to transform space. Since surface is articulated by decoration, there is an intimate connection in Islamic architecture between space and deco. Analysis Modernism in Islamic architecture will be covered in three aspects such as religious architecture, academic as well as commercial spaces.To begin with, the aspect of modern Islamic architecture of religious spaces such as the Mosque shows a great departure from traditional to futuristic look. Resulting in hybrid buildings where traditional facades of arches and domes are grafted onto modern high-rises. 2.1 As a case study of Euro-Islamic architecture, the Penzberg Islamic Centre built in a small German town between Munich and Alps, boldly demonstrates the compatibility of mosques and modernism. minarets are shortened and serve no purpose unlike minaret of traditional Islamic Mosque that is tall in height are usually use as a way call people for prayers. However, The building in night scene. The minaret serves its purpose as light which illuminates the ornamental decoration wrapped around. The idea shows the model notions of enlightened Islam. Apart from the shortened minaret, whose colours sets it apart from the course being sandstone facade, the centre is not obviously marked out as a typical religious building. The exterior already hints at the contemplative atmosphere of the prayer hall inside. The main entrance that is made to stand out by slanted concrete slabs symbolizing the pages of a book, on which words from the Koran can be read. Whereas on the right, the interior has shows the modernist idea of working with the simplest means by having no huge chandeliers and no exuberant ornaments. Adding dynamic quality to the architecture is by playing with lights. The same key element uses often in Islamic architecture. The way the light falls draws attention to the ceiling and wall panels, where ornaments are applied to the unclad concrete that can be read as expressions of divine boundlessness. The abstracted star motifs contain The 99 Names of God such as The Most Merciful and The Utterly Just in calligraphy. Modern Islamic Architecture can exist anywhere in Europe since Europe society can keep with constantly developing innovation and the idea of understanding faith but not tradition that is set in stone. In Europe, the mosque of today must represent a distinct type that reveals the 20th century that is when it meets the fitting choice for future generations. Modern Islamic architecture may took over in Europe, going back to local context, Euro-Islamic architecture are also influencing Singapore. Singapore is well known for here and now architecture building that surrounds the entire city. Modernity is what Singapore falls under. Overshadowing the historical sites, modern Islamic architecture in Singapore is becoming more dominant. The second case studies in local context for religious building are the Assyafaah mosque located at Admiralty lane in Singapore. The Assyafaah Mosque The Assyafah Mosque uses a contemporary interpretation of the arabesque, a universally recognizable symbol of Islamic Art and Architecture, to create an original identity for the modern mosque. The use of the positive arabesque, a double arabesque to make the notions of overlapping geometries more explicit and negative arabesques are seamlessly incorporated in the design of this mosque. The architects state that the use of the arabesque patterns to symbolize the Qurans attributes provides a link to the past. The minarets were done in modernist way. It is similar to Penzberg Islamic centre minaret which is done in a simple form. The minaret of Assyafaah mosque is a symbol of alif which is the first letter word of Arab language. The idea of integrating letters as minarets further emphasize Islamic architecture elements rather than using complex calligraphy form. The column free prayer hall framed by its ribbed and arched fairfaced concrete structure rising from the floor and opening upwards towards the quadruple volume in front of the mihrab wall The three-dimensional arches, which serve the purpose of transferring the structural loads of the upper three storeys help provide a column free span in the lower prayer space. The concrete arches are a great prove of how the architect explores usage of material which look as raw yet prove to be aesthetically pleasing. At the same time, they serve to guide the eye of the user towards the four-storey high marble clad mihrab wall, bathed in natural light. The light filtering through, very much a-like to Tadao Ando style of playing with lights. Again, the nature of keeping elements of Islamic architecture by using natural light to seep through the calligraphy patterned frames which act as light filtering, making the facade to look more lacy by trapping some light and diffuse it with most subtle gradations. The uses of geometrical facade assure the Islamic architectural method of using optical effect shows how different thicknesses of frame define the sophisticated effect. 2.2 Apart from religious building, academic buildings in Islamic architecture are as well influence with modern contemporary architecture. The third case studies for academic buildings are the Bibliotheca Alexandrina in Egypt. The structure illustrates the rich historical and rapid modern evolution of the Islamic past. The design portrays the idea of openness, containment and all encompassing knowledge in its main geometric form, the circle. Partly, Islamic elements such as the geometric patterns permitted an interrelationship between the parts and the whole building complex. The Bibliotheca Alexandrina Exterior facade The stone walls of the library The idea of openness with the integration of water. As an influence of Islamic architecture, water reflects architecture and also serves its means by emphasizing the visual axes. Like the mirror, they give fluidity, dynamic yet show the static architecture. Besides having literal water elements, another way to represents Earth element reflected in one of the Modern Islamic academic architecture in Singapore which is Al-Mukminin Madrasah located in Jurong East. Exterior building of Al-Mukminin For the fourth case study is about the building as total modernization of Islamic architecture. Arabesque pattern is not evident in this building, however, the building play with colours despite no vivid traditional form. The underlying exploration of this facade is the use of Islamic colours to represent water, sky and ground. The multi-shade colours also gives an optical illusion effect from far, creating dematerialisation which is one of the technique element that from Islamic architecture usually use in traditional times. 2.3 The last aspect besides Religious and academic building are the commercial building. One of the examples for commercial building for Islamic architecture would be the museum of Islamic Art in Qatar by I.M Pei. He uses geometrical forms and symmetry applied for the design concept. Clearly, it is not a hybrid futuristic building which usually uses metal and glass cladding as the facade. Instead, he uses limestone marble which gives the smooth touch against the solid form building. As compared to traditional times of using mud brick construction, the limestone marble gives off the modernistic look and also how the block are arranged in sequence manner in parallel. Museum of Islamic Art Exterior Front and Interior The front view of the museum shows two pillar which look like the modern minarets. Traditional domes are not seen evidently, however in the interior, tall arches are not seen instead walls slanted in symmetrical direction toward the ceiling in geometrical forms that creates spherical domes made up of geometric shapes. The dome also gives a hint of natural light to pass through. Elements of Islamic principle are still applicable to commercial spaces. The aim to enhance space through patterns proves dynamically interesting for a modern Islamic building. The solidity of the forms made up is in repetition direction along with different proportions which then allows the eternal principles of Islamic architecture of rhythmical movement. The last case study for Commercial buildings as modern Islamic architecture is the Haniffa, a famous textile company originated from India, the building is located by Keng Lee road, Singapore. The building shows strong influence of Euro-Islamic architecture. Conclusion In conclusion, the desire for rapid development has brought in influences from Western architecture to Islamic architecture due to the Industries revolution that pushes the Islamic architecture to move forward by understanding the essence Islamic principles in architecture and then allows modern building technology to be the tool in the expression. Tool of expression in terms of the mass production of materials has become an advantage for designers to explore with the possibilities of transforming forms by moving away from traditional techniques into modern ways. Such application is strongly reflected on Singapore context for Islamic architecture. Most Islamic architecture buildings in Singapore were made in modern ways. However, the challenge that is set for Singapore is how it may stand apart from other non-Islamic architecture tall buildings that have been the ultimate identity of Singapore. In order to create modern Islamic architecture identity should be more evident, and the re levance to eternal principle of Islam is important. This can be achieve by creating forms in relation with traditional Islamic elements that evolves through modern approach and at the same time carry its own characteristic. Hence, the regional identity of Islamic architecture will then become an evolution to modern Islamic era. List of references James Steele [1994] Architecture for Islamic Societies Today, Academy Editions / The Aga Khan Award For Architecture, St.Martins Pr, United Kingdom Cristian Welzbacher [2008] EURO-ISLAM Architecture (The New Mosques in the West), Sun Publisher,Saudi Arabia Renata Holo, Hasan Uddin Khan [1997] The Mosque The Modern World, Thames Hudson Publisher, Australia Markus Hattstein, Peter Delius [2004] ISLAM Art Architecture, Konemann, New York Richard Ettinghausen, Oleg Grabar [2003] The Art and Architecture Of Islam 650-1250 , Yale University Press, Connecticut Phillipa Baker [2004] Architecture Polyphony Building in the Islamic World Today,Thames Hudson Publisher, Yemen Bibliography http://www.miesarch.com/index2.php?option=com_contentview=articleid=10Itemid=16obraid=251 http://www.architecture-page.com/go/projects/assyafaah-mosque-singapore__all http://www.bibalex.org/english/aboutus/building/architecture.htm http://www.fivefootway.com/2009/06/30/forum-architects-madrasah-addition-to-al-mukminin-mosque-blends-traditional-values-with-contemporary-colour/ http://de51gn.com/design/the-museum-of-islamic-arts-by-im-pei-opens-in-Qatar/