Terrorism is a form of risk that is impossible to manage Essay

Terrorism is a form of risk that is impossible to manage - Essay Example Terrorism always stems up in the weakest of classes within a society. (THACKRAH, 2004) Its infancy is thus bred and nourished in the lowest of classes within the culture. This weak class in a third world nation is in reality the masses. What people think about the form of government is really given an air of indifferent experiences when terrorism starts to crop up all of a sudden. This creates a feeling of hatred for the governmental institutions as well as the people at the helm of affairs, i.e., the ones who are generating the policies and are running the government. (OOTS, 1986) Terrorism demands of people to change their way of looking and expecting something, if they do for that matter, from the government. It has been the case for many years that whenever government within a certain country is in a position of economic and defense power, terrorism creeps up out of the blue and mesmerizes its democratic institutions beyond repair and restoration. The need of the hour on these countries’ part is to fight against the terrorist activities with a stern hand but in a more disciplined and ethical fashion. If the same is not done, hatred is the most common of reactions that have been seen for time immemorial for these countries. Terrorism has changed the face of the world. The people of this world have started to feel unsafe whenever they are within a horde and thus different assumptions have started to come about as concerns to the basis of different congregations, events, concerts and so on and so forth. This has really presented a very grim picture of the peace aspect related with this world. It has to be changed and there needs to be thinking mindset shift within the global populace to start with. People need to understand their respective responsibilities and then echo the same in the light of the different policies and strategies

Egypt vs. Fertile Crescent Essay Example for Free

Egypt vs. Fertile Crescent Essay During the early dynastic period, the early River Civilizations had just come to be. Egypt and The Fertile Crescent were 2 of the civilizations. Different civilizations were developing different things as well as living two different ways of life. In social and intellectual ways, these two civilizations handled themselves in very similar as well as many different ways to function the way they did and remain stable while they could. Egypt and the Fertile Crescent shared certain things within the social and political part of their civilizations. They both needed a lot of work to be done. Anywhere from building pyramids, to parts of a city, someone had to do it, but who? To solve this dilemma, the Fertile Crescent used slaves, and Egypt had laborers. Having slaves or laborers made is accomplishable for job positions to be filled within a city, or made it easier and quicker to finish projects ordered by the Pharaoh. In an intellectual view, both developed a form of writing. The Fertile Crescent invented the cuneiform, which is also the first form of writing, to pass down history. As well as Egypt, they had hieroglyphics, which served the same purpose, In other words, they needed a way to keep records from generation to generation. To do this, they used what they had to develop a form of writing to accomplish this. As for differences between to two civilizations, they were very many social and political ones. The Fertile Crescent had a small amount of social classes. They had a priest, merchants, and slaves. Those are the basic classes. The significance of having a less amount of classes is simplicity. Also, because the Monarchy already holds most of the power, it has no need for someone else to have any. Egypt had a lot more compared to them. Pharaohs, Land owners, Army commander, merchants, Farmers, and Laborers. While having more social classes than The Fertile Crescent, it might seem to make it harder on them for they have more going on, and more people doing more things, but it made it easier on the Pharaoh. Yes, he still had say so in what went on, but there were still different people in charge of different things. As for any intellectual differences, Egypt was able to develop a calendar. By doing this, they were able to tell when any floods were coming and it was no surprise. Not only did this calendar only help with flooding problems, but they could also mark any important date of when anything happened during their time. On the other hand, the Fertile Crescent was always hit by surprise by floods from the river. They never developed a calendar, so for them, they had no clue when a flood was coming and it became a panic when it did.

How does the writer create tension and suspense in The Red Room? :: Free Essay Writer

How does the writer create tension and suspense in The Red Room? The writer is able to create tension and suspense through various ways in the short story ‘The Red Room’. The opening sentence in the story immediately mentions the supernatural, which immediately tells us that this is a gothic story. The first sentence is dialogue, but we do not know who is speaking. This creates tension as it is withholding information. This is the main technique used to create both tension and suspense through out this story. Throughout the whole story we are not given any names of the character, but are distinguished by a certain phrase ‘the man with a withered arm’ shows us that each of the characters mentioned in this story has a negative description. The negative description and the withholding information build up tension as we want to know more about these characters and who they are. Using negative words make out that the characters are evil or decrepit. The words used to describe these characters are withered, old decayed and pale. We are also not given a name of the narrator or what business he has at the castle. All we know is that he is sceptical about the ghosts that these people are telling him about. ‘That it will take a very tangible ghost to frighten me’, shows a conflict between the superstitious and the sceptical. This builds up tension as we know that in most gothic stories, the sceptical are usually the ones to get punished. The narrator is mocking these other characters, which builds suspense as we know that in the end it will be he that will be hurt. Another way in which the writer builds up tension and suspense is by writing the story in first person. This makes us feel emotionally drawn to the character. We feel what the narrator feels, and we only know what the narrator knows. Using first person also allows us to trust the narrator or to empathise with the character. The use of imagery or personification increases the suspense in the story, ‘Shadows cower’ is a very descriptive way of showing how frightening the mansion is. It sounds as if the shadows which are linked to darkness themselves are afraid of a greater evil. We wonder what this great evil could be that makes evil itself tremble. Another personification used is ‘candles writhing’. Candles are usually associated to gothic stories, as it is only small source of light within a vast darkness of the room. These personifications and imagery brings the house to life as it makes you feel and see things much

How Your Diet Is Influenced by Religious Essay

Since the beginning of time, dietary practices have been incorporated into the religious practices of people around the world. Some religious are prohibited from consuming certain foods and drinks. Practices such as fasting are described as tenets of faith by numerous religions and several incorporate some element of fasting. The diet influenced by religious beliefs does have numerous benefits in our daily life but it also has some disadvantages. Some religions have dietary restrictions which are observed by their followers as part of their religious practice. Such like Islam has laws permitting foods classified as halal. Which is means pork and alcohol are not allowed. Meanwhile, most hindus are vegetarians and must do not eat cow. There are reasoned why every religion have dietary restrictions in their daily meal and it is because of food safety. According to Wisegeek (2012) religious dietary restrictions protect the followers of the religion which is allowing them to grow fruitful and multiply healthy meal. Furthermore, every religions has it owns preferences and culture. In culture of religions, they do have their own eating patterns and behavior. Cultural also provides guidelines regarding of the food in their religions. If the religions had a good eating patterns in their daily life it will give a benefit on their diet. It depends on how many amount of food that their takes in one day. As we know, some religions have some acceptable foods and unacceptable foods. For religions that have a bad food combinations it can have negative effects on their health, especially when it comes to their digestion. In addition, food combinations can also give harmful effects to their body. While this may be true, we should also consider the fact exposure to food by religions local cuisine does influence their diet. Basu (2011) states that for a person that more exposed to a food, it more encourage for them to eat it. Foods that are commonly and easily cook within a specific religion frequently become a part of the local cuisine. For example, other religions cook such an oily dish but there are other religious cook their dish with grilled or boil it. It is based on how the followers of the religions cook in their daily life because the followers are only more exposed to the foods that are easily for them to get it. It does influence their diet when they are eating based on their local cuisine. In conclusion, certain religions are at high risk of nutrition-related disease. With understanding and adjustment it is possible to change their diets so they are easily followed a current healthy eating habits. It is very important to us to take the best possible care of our body and develop healthy cooking and eating habits in order to help our live life. REFERENCES Conjectour Corporation. (2012). Religions Dietary Restrictions. Retrieved September 1, 2012, from www.wisegeek.com/why-do-some-religions-have-dietary-restrictions.html Basu, O. Julia. (2011). The Influence of Religion on Health. Retrieved September 2, 2012, from http://www.studentpulse.com/articles/367/the-influence-of-religion-on-health

Protecting the Environment

After consideration, I would have thought deeper before making a decision. One of the examples is that I will think of other possibilities and ways of disposing an unwanted item. This is because our actions might seem little and can do much harm to the environment but as time passes by and all our actions are added up together and this might cause chaos in the future. Damaging the environment is not a petty issue. Planet earth as we all live in seems to be the only planet that is capable of supporting human life. Once it is damage beyond repair, it might wipe out our species. In the effort of protecting the environment, we will consider the effect of our actions before making decisions. Will our actions do any good to the environment or will it continue to harm the environment? This is the question that must be thought of when taking actions. As we all know, we do not have centuries to go anymore. Scientist around the globe is already complaining about the effect of global warming and the unstable environment that we all have nowadays. We have only a few more decade to go before we totally wipe out the ice berg at the north and south pole. Once the ice is melted, all sort of extreme and outrages weather will occur. Recycling is a very basic but important action that everyone should adopt now. In the wake of global warming right now, it is important that we recycle. The needs to recycle is base on the fact that our natural resources are diminishing . If we do not recycle, factories will have to process the raw material and this will result in more heat release into the environment. A very basic way to recycle is to separate our rubbish into papers, metal and glass. Others waste such as food can be use to make compose. Besides recycling, we will also reuse thing that can be use again such as food containers and shopping bags. Food containers can be kept and put aside. It can be use to keep food when needed. Shopping bags can also be use to carry things when we go shopping. Using shopping bags will eliminate the needs for plastic bags. Many of the plastic bags that most of the shops offer are non biodegradable. This material will not be eliminated unless burned. Once it is burned, it will release a poisonous gas which will cause air pollution. Open burning is also an important issue relating to the environment. It will cause air pollution and also release great amount of heat and carbon dioxide into the environment. Open burning is really unnecessary for household because if we manage our garbage well and put it in the plastic bags, the rubbish collector will just bring those garbage away. Burning the forest to open new lands is also unacceptable. This action will cause discomfort to many people and if it is not manage well, the fire will spread and unwanted accident might happen. We should all prevent using the air conditioning at home because it will release a type of gas which will destroy the ozone layer. Once the ozone is destroy, people that stay in that area will get skin cancers. To keep our body cool, we should use fan instead. It does not consume that much electricity as air conditioner and it does not harm the environment. We should also drink more cold water or take cool bath to warm our body when the weather is hot. We should also educate our friends and family about ways to protect the environment. If possible, everyone should get educated. If everyone is focusing to protect the environment, many unwanted disasters will be prevented. In the deontological theory point of view, it can be easily seen that it is everyone’s duty to protect the environment. Everyone must do his part to protect the environment so that the next generations to come will have a better place to live in.

Free Essays on Antisocial Behavior In Adolescents

Adolescent Antisocial Behavior To begin this essay, I will attempt to give a full description of the components of antisocial behavior in order to accurately depict my sister’s situation. The main purpose of this essay is to better educate myself on this particular behavior disorder and to better understand Brandi’s choices, actions, and behavior. According to the American Psychiatric Association manual, antisocial behavior, also known as conduct disorder or oppositional defiant disorder, is described as â€Å"a recurrent pattern of negativistic, defiant, disobedient, and hostile behavior toward authority figures that persists for at least six months†¦Ã¢â‚¬  (Nystul, 2003). The manual also states that a diagnosis of antisocial personality must meet several requirements: a failure to conform to social norms, consistent deceitfulness, impulsiveness, failure to plan ahead, irritability, aggressiveness, a consistent disregard for work and family obligations, a consistent disregard for the saf ety of oneself and others, and lastly, a lack of regret or remorse (Harvard, 2000). Oddly, clinical descriptions note that most adolescents displaying significant signs of antisocial behavior are of adequate intellect and do not display signs of thought disorder. These individuals simply fail to exercise good judgment in decision-making. Accordingly, these youths also have difficulties seeing the â€Å"consequences† and various outcomes of their choices and behavior (Pardini, 2003). Finally, other typical behaviors in adolescents affected by conduct disorder include: truancy, lying and stealing, engaging in physical fights, a tendency to run away, lighting fires, cruelty to animals, a tendency to use drugs, alcohol, and cigarettes at a early age, low self-esteem, learning difficulties, and aggression to others (Colman, 2003). Next, I will discuss proposed potential causes of these antisocial behaviors in children. The most prominent and rep... Free Essays on Antisocial Behavior In Adolescents Free Essays on Antisocial Behavior In Adolescents Adolescent Antisocial Behavior To begin this essay, I will attempt to give a full description of the components of antisocial behavior in order to accurately depict my sister’s situation. The main purpose of this essay is to better educate myself on this particular behavior disorder and to better understand Brandi’s choices, actions, and behavior. According to the American Psychiatric Association manual, antisocial behavior, also known as conduct disorder or oppositional defiant disorder, is described as â€Å"a recurrent pattern of negativistic, defiant, disobedient, and hostile behavior toward authority figures that persists for at least six months†¦Ã¢â‚¬  (Nystul, 2003). The manual also states that a diagnosis of antisocial personality must meet several requirements: a failure to conform to social norms, consistent deceitfulness, impulsiveness, failure to plan ahead, irritability, aggressiveness, a consistent disregard for work and family obligations, a consistent disregard for the saf ety of oneself and others, and lastly, a lack of regret or remorse (Harvard, 2000). Oddly, clinical descriptions note that most adolescents displaying significant signs of antisocial behavior are of adequate intellect and do not display signs of thought disorder. These individuals simply fail to exercise good judgment in decision-making. Accordingly, these youths also have difficulties seeing the â€Å"consequences† and various outcomes of their choices and behavior (Pardini, 2003). Finally, other typical behaviors in adolescents affected by conduct disorder include: truancy, lying and stealing, engaging in physical fights, a tendency to run away, lighting fires, cruelty to animals, a tendency to use drugs, alcohol, and cigarettes at a early age, low self-esteem, learning difficulties, and aggression to others (Colman, 2003). Next, I will discuss proposed potential causes of these antisocial behaviors in children. The most prominent and rep...

Welcome to Hell!

Welcome to Hell! Welcome to Hell. Please let us enslave you. We'll give you a free t-shirt if you fill out this credit card application... You can drive home in this brand new car, with no payments until 2000... It's so much easier to not worry about these details. We'll take care of them for you. All we ask is that you send in your payment every month like a good slave.No, no, don't read books. Libraries are closing more and more everyday anyway because they're obsolete, now superseded by television. That concept we taught you in grade school called "literacy" was just a lie, just like everything else we crammed down your throat. We just want to make life easy for you! We'll even give you pretty pictures and animation to protect you from that mean computer! Just you don't worry about that. We'll manage all the details for you for the low, low price of $99.95.1914 Santa Claus in japanThe less you know, the better off we are. Job security. Think we're stupid? We are, but we can bullshit our way onto y our desktop, because you're even stupider than we are. The truth is, you never knew you had a choice. You probably wouldn't even know there was such a thing as software, without which the computer can't operate, if it hadn't been for our constant reminders that you can upgrade the crap we sold you for the low, low price of $79.95. But it's worth it because you get a 30% increase in performance. That will actually impress you because we're competing with ourselves here.It's actually not that hard. After a late night and a hang over, we quickly code this crap and hire graphics professionals to candy coat it. Then we break anti-trust laws and cut every corner possible to...

How to Make Bromocresol Green Indicator

How to Make Bromocresol Green Indicator Bromocresol green (BCG) is a triphenylmethane dye that is used as a pH indicator for titration, DNA agarose gel electrophoresis, and microbiological growth media. Its chemical formula is C21H14Br4O5S. The aqueous indicator is yellow below pH 3.8 and blue above pH 5.4. This is the recipe for bromocresol green pH indicator solution. Key Takeaways: Bromocresol Green Indicator Recipe Bromocresol green is a pH indicator that is yellow below pH 3.8 and blue over pH 5.4. Between pH 3.8 and 5.4 it is green.The indicator is made from bromocresol green powder dissolved in ethanol.Bromocresol green is most often used for electrophoresis, titration, and in microbial growth media. Bromocresol Green pH Indicator Ingredients 0.1 g of bromocresol greenethyl alcohol Prepare the Bromocresol Green Solution 0.1% in alcohol Dissolve 0.1 g of bromocresol green in 75 mL of ethyl alcohol.Dilute the solution with ethyl alcohol to make 100 ml. 0.04% aqueous Dissolve 0.04 g of bromocresol green in 50 mL of deionized water.Dilute the solution with water to make 100 ml. While bromocresol green is usually dissolved in ethanol or water, the dye is also soluble in benzene and diethyl ether. Safety Information Contact with bromocresol green powder or indicator solution may cause irritation. Contact with skin and mucous membranes should be avoided. Sources Kolthoff, I.M. (1959). Treatise on Analytical Chemistry. Interscience Encyclopedia, Inc. New York.Sabnis, R. W. (2008).  Handbook of Acid-Base Indicators. Boca Raton, FL: CRC Press.

Property Law Assignment Essay Example | Topics and Well Written Essays - 2500 words

Property Law Assignment - Essay Example the existence of a resulting trust in situations where the plaintiff has clearly made a contribution towards the purchase price of the property, despite the fact that they have not been entered onto the property register. This equitable presumption is based on the notion that the person contributing towards the property must have expected to acquire an interest in that property, in proportion to the money expended2. Lord Diplock in Gissing v Gissing3 made the point that A resulting, implied or constructive trust†¦is created by a transaction between the trustee and the cestui que trust in connection with the acquisition by the trustee of a legal estate in land, whenever the trustee has so conducted himself that it would be inequitable to allow him to deny the cestui que trust a beneficial interest in the land acquired. It should be noted that in this particular case Alice did not contribute to the purchase price of the property, even though she did spend her inheritance on improvements within the property. As there was no direct contribution towards the purchase price Alice would have to rely on the principle of constructive trusts to assert her claim. Under the law of constructive trusts the applicant must prove that they expected to acquire an interest in the property, either by their actions or by money paid towards the maintenance or improvement of the property. Cases that have succeeded are those were the applicant has paid towards household bills or has spent their own money on repairs within the property5. in determining whether a constructive trust can be averred the court will often take into account the conduct of the parties. The court will look for evidence to support an assertion that the applicant has acted in their detriment in reliance of an expectation of having a beneficial interest in the property. The court determined this to be the case in Lloyd’s Bank Plc v Rosset6, in which the court found that work carried out by the applicant on the

Media Essay Example | Topics and Well Written Essays - 500 words - 3

Media - Essay Example Unfortunately the same mishap has been integrated to the contemporary media. Media as a social art has its aim to inform a vast range of subject. Globalization had undeniably helped it attain that goal. That is when global mass media ties the world together. Global industrialization had lead to innovations that had aid the media with their venture. Most notably, globalization had made it possible for the media to let the far smaller nations to have a glimpse on what was happening to the titans. Having been improperly handled, that thought benefit had nonetheless lead to overwhelming effect of western culture to outside countries which further lead to cultural degradation and national conflicts. This same effect had managed to inflict the contemporary media. Although the increasing concentration of mass media ownership within and across the nation borders may be considered as the most significant development in international communication, this had rather cause deregulation and privatization. Globalization had secured the presence of giant mass media firms in all the national aspect of every region worldwide. This had allowed them to syndicate with dozens of national media firms worldwide to produce and disseminate news and entertainment to localities. This had made them in control of everything that would be aired and implied to the international market. The media that were supposed to be objective, having neutral observation and letting the fact speak for themselves, have been made into a model of little analysis, that was inefficiently statistical and a one way communication. As a result, the important world facts had been replaced with political scandals, celebrity divo rces, natural disasters and anything that will ward off the public’s eye towards the true significant matters. The mass media that was supposed to ask deeper questions about the exercise of power, the

Public relations thrives on public opinion Research Paper

Public relations thrives on public opinion - Research Paper Example Soon after, a large number of companies and organizations started employing publicity tactics to attract large audiences. The Excellence Project Vercic, L.A. Grunig (1996) states that nine generic principles govern the basis of setting up global public relations. Edward Louise Barneys is considered an America pioneer in the development of techniques relating to public relations and propaganda. Edward Barneys is considered as the ‘father of public relations’. Edward Barneys developed many influential PR techniques including press release and third party advocacy. Barneys helped remove the taboos surrounding the idea of women smoking in public, thorough his famous campaign of 1920 known as the Women’s Smoking Campaign. Barneys educated the industries regarding the importance of news and stated that it was the most effective method of conveying message to the public. Edward Barneys summarized the importance of PR techniques in his famous quotation given below: This quotation fully explains the importance of public relations and public opinions in setting up a democratic system. In modern world, setting up a democratic system encompasses various aspects. One of the major aspects in establishing democracy is public relations. The research following the development of Excellence theory shows that public relations serve as a pivotal condition for the establishment of a liberal democracy. During the 20th century, public relations gained the status of becoming a powerful and influential industry, not only in the United States of America but across the whole world. In modern society, public relation operations are not just limited to the in-house activity of public corporations and public institutions, but are also being increasingly established as independent consultation firms. Thus, public relation operations have become a prominent constituent in

Global Perspectives on Health Essay Example | Topics and Well Written Essays - 750 words

Global Perspectives on Health - Essay Example While aspects such as GDP growth, Infant Mortality Rate and Adult Literacy Rate, Tanzania records a relatively higher statistic in comparison to the whole of the average in the African Region. Nevertheless, when we look at the statistics in a global perspective, it can be concluded that the numbers for Tanzania is staggering. Total Fertility Rate, Under 5 Mortality Rate and Life Expectancy at Birth are just some of the health indicators which show how the country is struggling in indispensable area of health care. The graphs show that there is little to no progression in terms of Life Expectancy at Birth, Infant Mortality Rate, Under 5 Mortality Rate and Total Fertility Rate of Tanzania. It can be observed that Infant and Under 5 Mortality Rates gradually decreased in more recent years. Life expectancy was also augmented while Fertility Rate remained more or less at the same level. This increase in statistics is a good signifier of a move in progress in terms of health. Based on the data shown, it can be perceived that Tanzania has a reasonably high population rate wherein the number of male population is almost similar with the number of female population. It also illustrates that majority of this population are aged 20 and below. This can be directly related to the mortality and life expectancy rate of the country. The World Health Organization attributes the low level of health in the United Republic of Tanzania primarily to poor nutrition, illiteracy and gender inequality. HIV remains to be the most prevalent problem in the country’s communicable DALY but some progress is being shown. From 9.9% as reported in 2000, HIV infection slowed down to 7% within the years 2003-2004 (World Health

Latin America Cinema (Hour of Furnace and Third Cinema) Essay

Latin America Cinema (Hour of Furnace and Third Cinema) - Essay Example The aim of the Third Cinema is to motivate the masses towards starting a revolution, with the director joining in as a part of the group. Another aspect of the Third Cinema, according to the two Argentineans, is clandestinity; the films that form part of the Third Cinema should be shown secretly so that not only is censorship and other commercial groups (both part of the mainstream cinema) avoided, but also to include a risk on the part of the viewer who decides to see them. â€Å"The Hour of the Furnaces† is a pioneer film of the Third Cinema genre, if Third Cinema can be referred to as a genre. Directed by Fernando Solanas and Octavio Getino, â€Å"The Hour of the Furnaces† was secretly filmed in Argentina in the early 60s and with a runtime of over four hours. It serves as a very bold condemnation of the neocolonialism that has dragged the country specifically, and Latin America generally, down into the depths of economic and social colonization, first by Spain, then by the United Kingdom and finally by the United States. The film depicts the horrors of capitalism in the â€Å"underdeveloped† country, with the bourgeoisie and the oligarchy getting richer, while the poor laborers and farmers get poorer. The directors use a very fiery and fast tempo soundtrack to help them drive their point home. The point driven home is a call for revolution, an appeal to the masses by the directors to take up arms as all non-violent means, adapted by the Peronists to bring about a change by toppling the regime that came into power by a coup against Juan Domingo Perà ³n, had failed to do any good. In short, through this film, the directors have tried to become a part of the collective and are trying to inspire the masses into starting a revolution against the injustices that the ruling class has subjected them to through the methods of capitalism and neocolonialism. A manifesto of change, â€Å"The Hour of the Furnaces†

Global Perspectives on Health Essay Example | Topics and Well Written Essays - 750 words

Global Perspectives on Health - Essay Example While aspects such as GDP growth, Infant Mortality Rate and Adult Literacy Rate, Tanzania records a relatively higher statistic in comparison to the whole of the average in the African Region. Nevertheless, when we look at the statistics in a global perspective, it can be concluded that the numbers for Tanzania is staggering. Total Fertility Rate, Under 5 Mortality Rate and Life Expectancy at Birth are just some of the health indicators which show how the country is struggling in indispensable area of health care. The graphs show that there is little to no progression in terms of Life Expectancy at Birth, Infant Mortality Rate, Under 5 Mortality Rate and Total Fertility Rate of Tanzania. It can be observed that Infant and Under 5 Mortality Rates gradually decreased in more recent years. Life expectancy was also augmented while Fertility Rate remained more or less at the same level. This increase in statistics is a good signifier of a move in progress in terms of health. Based on the data shown, it can be perceived that Tanzania has a reasonably high population rate wherein the number of male population is almost similar with the number of female population. It also illustrates that majority of this population are aged 20 and below. This can be directly related to the mortality and life expectancy rate of the country. The World Health Organization attributes the low level of health in the United Republic of Tanzania primarily to poor nutrition, illiteracy and gender inequality. HIV remains to be the most prevalent problem in the country’s communicable DALY but some progress is being shown. From 9.9% as reported in 2000, HIV infection slowed down to 7% within the years 2003-2004 (World Health

To teach children about the prevention about spreading germs and the Essay

To teach children about the prevention about spreading germs and the cold and flu - Essay Example Since viruses are micro organisms, they cannot be seen with naked eyes. When the viruses of contagious diseases like cold and flu, enter our body, they reproduce rapidly and damage cells by secreting poisonous toxins. We become sick when healthy cells of our body are destroyed. Infection is the stage when the viruses invade our body and enter cells to start rapid reproduction process. The rapid multiplication produces a huge number of viruses which then destroy their host cells and cause diseases. The physical symptoms like sneeze, fever, cough, running nose etc. occur as a result of activation of antibodies and other such agents of the body’s immunity system that resist or fight the harmful foreign agents (viruses), resulting in physical symptoms The symptoms are indication that our body has started reacting to the invasion of foreign bodies and may need appropriate backup mechanisms like medicines to kill those germs. Working with a group of four children in the implementation and learning methods of the preventive measures was a whole new experience. The curiosity and enthusiasm of the children was contagious and implementing different measures of prevention turned out to be a great learning experience, which was full of fun. Initially washing hands became a big issue with the children but when their hands were put under the microscope and they saw micro organisms, they were quick to adopt this habit! Showing the presence of micro-organisms was a huge motivator for the children to take up and implement other preventive measures in their daily life. They also assured that all their friends and family members would also be informed about the need to wash hands not only as prevention against the infectious diseases but also for healthy living. Information about balanced diet had become a big debate but ultimately all the children agreed that they all

Russian Financial Crisis in 1998 Essay Example for Free

Russian Financial Crisis in 1998 Essay These events led Russia’s international reserves to fall by $13. 5 billion and to the dissolution of the Kiriyenko government. One month later, Standard and Poor’s downgraded its rating of the Russian ruble to â€Å"CCC,† the lowest possible Standard and Poor’s rating, for its long-term outlook and â€Å"C† for short-term outlook. These events signaled the onset of the Russian financial crisis, which had its roots in the fundamental problems in the Russian economy but was triggered in part by the continuing financial crises in emerging markets in Asia and around the world. What were the causes of this crisis and near financial collapse? What are the so-called â€Å"experts† saying about the crisis and its spillover effects on other ENI countries? What are the possible courses of action that could minimize the adverse effects of the crisis and reduce the likelihood of future occurrences? The purpose of this paper is to summarize the divergent viewpoints expressed by leading scholars and practitioners in the field of international development and finance. By surveying the literature, it is apparent that the Russian crisis, and to some extent the Asian crisis that preceded it, was caused by a combination of internal structural problems in the domestic economy (especially in the banking and fiscal systems) and growing problems with the international financial system that permits excessively rapid outflows of capital. However, there is significant divergence of opinion among scholars and practitioners as to which set of factors, those related to the Russian economy or those related to the international financial system, are the cause of the crisis. In addition to the differences of opinion as to the causes of the crisis, disagreement exists as to the remedies to the crisis. As a result, each group has recommended its own set of policy prescriptions. The first section of this paper discusses the divergent opinions on the causes of the crisis. The second section highlights the economic, social, and political effects of the crisis. The third section provides a list of the proposed remedies offered by the divergent camps. The final section summarizes the main findings and includes a timeline of the Asian and Russian crises. Divergent Opinions: Causes of the Russian and Global Financial Crises The divergent views regarding the causes and cures of the Russian and Asian financial crises can be broken down into two camps: (1) those that believe that the crises derived primarily from problems in the international financial system and (2) those that place blame primarily on the structural problems within the countries themselves which left them vulnerable to capital flight and other problems arising from external financial instabilities. Members of the first group tend to be critical of the IMF and other international financial institutions, saying that these institutions played a role in creating and exacerbating the financial crises rather than helping to reduce the negative impact, although the â€Å"fix the system† critics do agree that each of the crisis countries did suffer from internal structural problems as well. The second group of analysts—the â€Å"fix the countries† group—believes that the international financial system and the approach of the IMF in assisting these countries are more or less working, and that the current crises derived from a lack of sufficient regulatory and fiscal reforms in Russia and Asia. â€Å"Fix the Global Financial System† Critics Jeffrey Sachs. According to Sachs, â€Å"the Treasury and the IMF have driven a large part of the developing world into recession†¦And the Brazil case makes absolutely clear that the first step is not to defend overvalued currencies. The punishing cost of this is overwhelmingly high. This is a lesson that the IMF and the Treasury have continued to ignore† (Uchitelle 1999). In his view, the IMF exacerbated the crisis by demanding tight fiscal and monetary policies. He claims that perceiving the crisis to be one of balance of payments, rather than a financial panic, the IMF chose an approach similar to the mistaken policies implemented by the United States in the early stages of the Great Depression of the 1930s (Radelet and Sachs 1999). Furthermore, Sachs insists that since high interest rates and austerity measures are bringing disaster to many emerging markets, interest rates should be kept down to encourage economic activity and allow exchange rates to find their own equilibrium level. He does not attribute the devaluation of exchange rates as a cause of the crisis in Russia, nor does he believe that a currency board arrangement would have saved the country. He states that â€Å"when pegged rates become overvalued, [this] forces countries to deplete their foreign exchange reserves, in a vain defense of the currency peg. † In his view, it was the combination of broken promises (i. e. , the ruble will not be devalued) and depleted reserves that left the country vulnerable to panic (Radelet and Sachs 1999). He believes that a growing economy is more likely to restore investor confidence than a recessionary one burdened by high interest rates (Uchitelle 1999). An additional contributing factor to the crisis, according to Sachs, was â€Å"moral hazard. Investors clearly had doubts about Russia’s medium-term stability, and talked openly about the risk of collapse and about the safety net that they expected the IMF and G-7 to provide to Russia. Knowing that these international lenders would rescue Russia and guarantee investments in the event of a financial meltdown in Russia, international investors tended to underestimate the r isks—and hence tended to over-invest in Russia. Russia was viewed as â€Å"too big to fail,† and this led to an inflow of capital that was larger than appropriate for the actual level of risk (Radelet and Sachs 1999). George Soros. As one of the world’s most successful international investors, an important philanthropist with millions of dollars invested in democracy projects throughout the ENI region, and a public intellectual who has proposed that sweeping changes be made to the international financial system, George Soros is a key figure in the Russian and Asian financial crises. His disparate roles often create a conflict, as Soros-the-intellectual appears to many an advocate of the regulation of international capital flows to prevent potential damages from speculations by people like himself (Frankel 1999). Soros was Russia’s biggest individual investor prior to the crisis in August 1998. He held a $1 billion stake in Svyazinvest, a telecommunications concern, and millions in stocks, bonds, and rubles. In mid-August 1998 Soros sprang into action to try to stop the crisis. He contacted the U. S. Treasury department, influential former members of Yeltsin’s administration, a nd published a letter in The Financial Times saying that the meltdown in Russian financial markets â€Å"had reached the terminal phase† (O’Brien 1998). In his letter, Soros called for immediate action—a devaluation of the ruble and institution of a currency board—that would have eliminated the Russian central bank’s discretion over monetary policy. Not realizing that a letter from Soros would be perceived as coming from Soros-the-investor instead of Soros-the-intellectual, his letter helped to prompt a panic in Russian markets, where investors believed Soros was shorting the ruble. Soros’ funds ultimately lost $2 billion in Russia as a result of the financial crisis there. According to his testimony to the Congressional Committee on Banking and Financial Services on 15 September 1998, Soros pointed out that â€Å"the Russia meltdown has revealed certain flaws in the international banking system which had previously been disregarded† (Soros 1998a). These flaws can be summarized as follows: (1) Banks engage in swaps, forward transactions, and derivative trades among each other— in addition to their exposure on their own balance sheets—but these additional transactions do not show up in the banks’ balance sheets. So when Russian banks defaulted on their obligations to western banks, the western banks continued to owe their own clients. As these transactions form a daisy chain with many intermediaries, and each intermediary has an obligation to his/her counterparty, no simple way could be found to offset the obligations of one bank against another. As a result, many hedge and speculative funds sustained large losses, and had to be liquidated. This systemic failure led most market participants to reduce their exposure to emerging markets all around, and this caused bank stocks to plummet and global credit market to enter a crunch phase. 2) As individual countries attempt to prevent the exodus of capital from their economy by raising interest rates and placing limits on foreign withdrawal of capital (as in Malaysia), this â€Å"beggar-thy-neighbor† policy tends to hurt the other countries that are trying to keep their capital markets open. (3) Another â€Å"major factor working for the d isintegration of the global capitalist system is the evident inability of the international monetary authorities to hold it together†¦ The response of the G7 governments to the Russian crisis was woefully inadequate, and the loss of control was kind of scary. Financial markets are rather peculiar in this respect: they resent any kind of government interference but they hold a belief deep down that if conditions get really rough the authorities will step in. This belief has now been shaken† (Soros 1998a). He also adds that â€Å"†¦financial markets are inherently unstable. The global capitalist system is based on the belief that financial markets, left to their own devices, tend toward equilibrium†¦This belief is false† (Soros 1998a). 3 His proposed cure is to reconsider the mission and methods of the IMF as well as replenish its capital base. Additionally, he’d like to see the establishment of an International Credit Insurance Corporation to help create sound banking systems, which would be subject to close supervision by the international credit agency, in developing countries (Soros 1998b). His last recommendation is to reconsider the functioning of debt-swap and derivative markets (Soros 1998b). Academia and Other Nongovernmental Organizations. Initially, Paul Krugman, an economist at MIT, argued that problems with the Asian economies, combined with corruption and moral hazard, led to wild over-investment and a boom-bust cycle. More recently, however, Krugman explains that such weaknesses cannot explain the depth and severity of the crisis, nor the fact that it occurred in so many countries simultaneously, and instead he places the blame on financial panic and overly liberalized international and domestic financial systems (Radelet and Sachs 1999). According to Krugman, â€Å"all short-term debt constitutes potential capital flight. † The need to fix structural problems in individual countries should not stand in the way of broader macroeconomic measures, in particular those designed to stimulate growth in hard times. He states that â€Å"it is hard to avoid concluding that sooner or later we will have to turn the clock at least part of the way back. To limit capital flows for countries that are unsuitable for either currency unions or free floating; to regulate financial markets to some extent; and to seek low, but not too low, inflation rather than price stability. We must heed the lessons of Depression economics, lest we be forced to relearn them the hard way† (Uchitelle 1999). In other words, the global financial system is largely to blame for the recent crises. Fix the Countries† Analysts IMF. According to the IMF, Russia’s financial crisis was brought on by a combination of (1) weak economic fundamentals, especially in the fiscal area; (2) unfavorable developments in the external environment, including contagion effects from the Asian financial crisis and falling prices for key export commodities such as oil; and (3) its â€Å"vulnerability to changes in market sentiment arising from the financing of balance of payments through short-term treasury bills and bonds placed on international markets† (IMF December 1998). The IMF had pointed out in May 1998 that Russia had made insufficient progress in improving budget procedures and tax systems, establishing competent agencies to collect taxes and control expenditures, clarifying intergovernmental fiscal relations, and ensuring transparency at all levels of government operations. By August 1998, investor confidence in the ability of Russian authorities to bring the fiscal system under control began to decline, immediately leading to the financial crisis, after the Duma failed to approve fiscal measures planned under the augmented Extended Fund Facility (EFF). These measures were aimed at reducing the fiscal deficit, implementing new structural reforms addressing the problem of arrears, promoting private sector development, and reducing the vulnerability of the government’s debt position, including a voluntary restructuring of treasury bills. 4 The extent to which the Russian crisis is attributable to contagion effects from the Asian crisis instead of to internal problems stemming from insufficient reforms in fiscal management is difficult to determine. According to the IMF’s May 1998 assessment of spillover effects from the Asian crisis, Russia’s stock market was seriously hit by the crisis and by early spring 1998, stock prices in Russia had indeed not yet fully recovered from the lows reached in fall 1997. The Russian ruble had also been hit hard and the central bank had to intervene heavily in the foreign exchange market just to keep the currency within the new exchange rate band. As international capital fled from the risky Asian economies in the fall and winter of 1997, investors who were similarly wary of risky investments in the transition economies began to reduce their exposure to Russian and other ENI markets. Nevertheless, emerging market investors quickly began to differentiate between high- and low-risk countries. By first quarter 1998 the Czech Republic and Poland had become relatively attractive to investors, receiving considerable short-term capital inflows and by January 1998 Standard and Poor’s credit rating for Hungary had greatly improved. Russia and Ukraine, on the other hand, continued to suffer from structurally weak financial sectors and an over-dependence on short-term borrowing. To attract investment back into Russia, the Russian government had to raise interest rates in order to offer yields well above pre-crisis levels to cover for the increased perception of risk. As a result, foreign investment had started to flow back into Russia by early 1998. According to the IMF, differences in the severity of interest rate and equity price movements among the transition countries illustrate the importance of appropriate domestic macroeconomic and structural policies to limit vulnerability to international financial crises. In Russia and Ukraine, financial sector weaknesses and a high dependence on government borrowing, in addition to chronic revenue problems, especially in Russia’s case, explain why these two countries were more affected by the Asian crisis than the Central and East European countries. In other words, the Asian crisis exposed Russia’s underlying structural problems and made the need to address them more apparent. The IMF continues to assert that the financial crisis in Russia was a crisis of the state. Nearly a year and a half ago, Michel Camdessus, Managing Director of the IMF, claimed that the Russian state â€Å"interferes in the economy where it shouldn’t; while where it should, it does nothing. Camdessus pointed out that the Russian state needs to make progress in promoting an efficient market economy through transparent and effective regulatory, legal, and tax systems. At present, the IMF still supports these recommendations (IMF November 1998). Existence of a Virtual Economy. Clifford Gaddy of the Brookings Institution and Barry Ickes of Penn State University argue that although the immediate causes of Russia’s financial crisis are the large budget deficit, resulting from nsufficient revenue collection, and an inability to service the debt, especially short-term dollar liabilities, there are more fundamental problems with Russia’s economy. These problems stem from â€Å"illusions† regarding prices, wages, taxes, and budgets that permeate the Russian economy to such a great extent that the economy has become â€Å"virtual† rather than actual. This virtual economy 5 is derived from a public pretense that the economy is bigger and output more valuable than they really are. According to Gaddy and Ickes, the virtual economy primarily originated from the unreformed industrial sector inherited from the Soviet era, in which enterprises produced output that was sold via barter at prices that were higher than they would be if sold for cash. In general, these enterprises operate without paying their bills, as wages that should be paid to employees (but are not paid) become wage arrears, and required payments for inputs (which are also not paid) emerge as interenterprise arrears and payments through barter. In fact, Gaddy and Ickes assert, people make an effort to avoid cash transactions because they would expose the pretense of the virtual economy. They go on to state that although the virtual economy acts as a safety net for Russian society, it has serious economic repercussions since it negatively affects enterprise restructuring, economic performance measuring, and public sector reform (Gaddy and Ickes 1998). At this point, they argue that the West has two choices on how to help Russia. First, the West can concentrate on keeping Russia stable in the short term by bailing out the virtual economy, which will lead to further consolidation of a backward, noncompetitive economy and will guarantee the need for future emergency bailouts. The second option would be to refuse the bailout. The consequences of this option would be drastic—the ruble will lose its value, foreign capital will flee—but on the positive side, the Russian economic policy that is so addicted to borrowing would have to kick the habit as it found its supply of international credit cut off. They state that â€Å"denying Russia a bailout is not without risks. But bailing out the virtual economy is sure to increase those risks for the future† (Gaddy and Ickes 1998). U. S. Government. The U. S. Treasury Department points out that despite the many important reforms that have been carried out in Russia—including extensive privatization, price liberalization, and reduction of government spending—reforms in a few critical sectors have lagged behind, leading to the financial crisis. According to David Lipton, the principal problems include the failure to control the budget deficit and extensive government borrowing. The budget problems are a manifestation of the political struggle over the country’s economic direction and as long as these disputes over the proper role of government remain unresolved, he believes that budget difficulties and unnecessary government borrowing will continue unabated. He also argues that Russia’s high fiscal deficits have led to the country’s high interest rates since â€Å"Russias macroeconomic problem is fundamentally fiscal; interest rates are more properly viewed as a symptom of that problem, not a cause† (Lipton 1998). Lastly, he argues that the failure to build a favorable investment climate and adhere to the rule of law also helped to sow the seeds of the financial crisis (Lipton 1998). The Treasury Department also points to external factors that led to the crisis. According to Deputy Secretary Lawrence Summers, the Russian crisis was not inevitable. He avers that if the Asian crisis had not reduced confidence among emerging markets investors, and had the prices of export commodities (e. g. , oil) not fallen so dramatically—the August 1998 crisis might not have taken place (Summers 1999). Nevertheless, the crisis did occur because the Russian government attempted to pursue an enormously risky course of simultaneously 6 devaluing the ruble, imposing a debt moratorium, and restructuring government bonds in response to the external pressures (Lipton 1998). To avoid future crises, Summers points out that Russia needs a tax system that supports the government and legitimizes enterprises, which probably involves a new allocation of spending and revenues between central and regional governments. Summers, however, is also quick to point out that it is much easier to talk about what tax reforms need to be implemented than to discuss how the reforms can be accepted politically. He adds that bank restructuring is another area where reform is needed and that it should be done in a fair nd transparent way within a legal framework that makes current owners take responsibility for their losses before scarce public funds are used (Summers 1999). Russian Government and Nongovernmental Analysts. Yegor Gaidar, former prime minister of Russia, attributes the crisis to the combined continuation of soft budget constraints from the socialist period along with the weakening of previous administrative controls and government corruption, which led to the ban kruptcy of state enterprises. The early years of transition in Russia were marred by inefficient macroeconomic policy, weak budgetary and monetary constraints, and inflation that eroded budget revenues. Although later macroeconomic policy was more efficient and succeeded in controlling inflation, efforts to improve revenue collection or cut expenditure obligations have failed, leading to unsustainable deficits. The lessons learned here are that budget deficits should be reduced as quickly as possible, as inflation is also controlled, and the vulnerability of exchange rate regimes to potential crises should be addressed immediately (IMF 1999; Gaidar 1999). In terms of the current regime, Gaidar describes Primakov and his government as a â€Å"communist government in post-communist Russia,† because Primakov and his cabinet come from the â€Å"traditional Soviet economics establishment† and his post-crisis approach relies on strengthening and centralizing government control. According to Gaidar, the Russian government faced two possible paths to solve the crisis: (1) return to the approach employed in 1992–94, with soft monetary and budget policies, or (2) maintain a tight monetary policy, stabilize the ruble, and carry out fundamental budget reforms to allow the government to balance revenues and expenditures. The first path would lead to the return of high inflation rates, as the government relaxed its control over the money supply in an attempt to pay its debts, but the banks would benefit from the return of â€Å"cheap money† issued by the Central Bank. The second path would involve speeding up structural reforms, which would be good news for profitable enterprises but would mean painful consequences for unproductive enterprises—mostly firms in the industrial and financial sectors—as they would be allowed to go bankrupt if they could not compete in world markets. Both paths would be painful, Gaidar explains, but the first path of high inflation would also be inequitable, as the poorest layer of society tends to suffer most from increasing prices. Not surprisingly, Primakov chose to pursue a modified version of the inflationary approach, a sort of populist economics policy that had been implemented in many Latin American countries. The reason Primakov opted for this path, as Gaidar states, is because â€Å"in part, the lack of internal and external sources for financing after the 7 dismissal of the Kiriyenko government pushed [the Primakov government] toward choosing the inflationary variant† (Institute for Economics in Transition 1999). Andrei Illarionov, Director of the Institute for Economic Analysis in Moscow, while noting the IMF’s successes with respect to Russia, criticized the IMF for being too willing to compromise on Russian conditionality. Not one of the IMF programs developed in Russia, Illarionov claims, has been executed in full, as a result of the softening and revision of conditions in original agreements. He states that â€Å"decisions to provide financing for Russia, motivated by political rather than economic considerations, have given rise to the problem of moral hazard. As a result, the Russian government became spoiled after being granted unearned financial assistance, and policy became even more irresponsible than before (Illarionov 1998). Finally, Illarionov also criticizes the IMF for offering inappropriate policy recommendations to Russian authorities in two other areas: exchange rate and fiscal policies. The IMF program (mid-1998, pre-crisis) stipulated that the exchange rate policy should remain unchanged for the remainder of 1998, in order to preserve the low inflation rates, and prescribed that the Russian government should concentrate mainly on raising revenue rather than reducing expenditures. Although many poor 9 O c t 9 8 J u l 9 8 A p r 9 8 egaw muminim laiciffo J a n 9 8 O c t 9 7 .9991/20 ,PECER :ecruoS J u l 9 7 A p r 9 7 J a n 9 7 Dissatisfaction over the continuing problem of wage arrears led to an increase in strikes throughout the country toward the latter part of 1998; 1873 strikes were registered in December 1998, nearly 3. 4 times the number during the previous December. aissuR ni ecnetsisbuS dna ,snoisneP ,segaW ecnetsisbus woleb era % 92 level ecnetsisbus laiciffo ecnetsisbus woleb era % 12 0 001 002 003 004 005 006 007 008 R u bl e s p e r m o n t h . eople have become poorer, the impoverishing effects of the crisis have also hit other groups within Russian society. Workers involved in the business of selling imported goods have found that demand for their products has nearly evaporated as not only consumer incomes have fallen, but also ruble depreciation means higher prices on imports. As a result, many of these trade businesses have shed labor or closed. One of the longer-term consequences of the economic crisis in Russia may be the strain on society, which is likely to weaken the Russian government’s ability to continue to push for reforms. In some ENI countries, the crisis has given reform skeptics an excuse to abandon or reverse some reforms already implemented. The social pressure against further economic reforms, now seen by many as the cause rather than the cure for the economic crises, may become strong enough to counter-balance the pro-reform force. It may lead some ENI countries to get stuck in what Adrian Karatnycky describes as a â€Å"state of stasis† rather than of transition. Stability Versus Democracy Politically, the financial collapse has weakened Russia vis-a-vis the west, but its relative power in the region has in many ways increased. Not only has the crisis given Moscow an excuse to consolidate power over the regions throughout Russia, but it has also allowed many hard-liners within Russia to gain some ground in their push to reassert Russia’s traditional sphere of influence. In addition, many neighboring regions have found themselves with large arrears on their payments to Russia for natural gas deliveries, and have had to strike deals with Russia to find ways to settle these debts through deliveries of food and other barter arrangements. Following the onset of the crisis in August, the Russian government proposed many changes intended to promote economic stability at the cost of democracy. In February 1999, Prime Minister Primakov argued that Russia’s governors should be appointed by the President, rather than elected by their constituents, so that Moscow can take back control over the regions and avoid a collapse of the country. President of Belarus Alyaksandr Lukashenko rejoiced in the crumbling of IMF-backed reforms in Russia, considering the crisis to be a indication of his position in favor of state planning and price controls. The old proposal regarding a possible political union of Belarus, Ukraine, and Russia has also resurfaced, as Russia and some neighboring countries have concluded that further integration will help solve their problems. In the words of Ivan Rybkin, President Yeltsin’s envoy to the CIS, â€Å"the recent crisis taught us all that we must stand together in order to surviveâ₠¬  (Rutland 1999). Effects on Neighboring Countries The drop in real wages in Russia—coupled with the devaluation of the ruble—has translated into dramatically reduced Russian imports. For the neighboring countries that depend on Russia as a market for their exports, the shrinking market in Russia has been disastrous for their local economies. As Russians are shifting consumption away from the relatively more expensive imported goods, the producers of these goods in neighboring countries are faced 10 with a dramatic fall in demand for their products. This has translated into falling output and increased unemployment for the countries that are most closely tied to Russia through trade, especially Moldova (more than 50 percent of Moldovan exports go to Russia); Belarus, Ukraine, and Kazakhstan, (;gt;33 percent of exports to Russia, as of early 1998); and Georgia (;gt;30 percent of exports to Russia) (EC 1999). The drop in remittances from nationals living in Russia has led to decreased incomes in neighboring countries with large numbers of gastarbeiter working in Russia. Armenia, Georgia, and Azerbaijan have been most severely hit by this decline in remittances. In some cases the pattern seems to have been reversed, with families in neighboring countries now supporting relatives living in Russia (EC 1999). Finally, food prices have also increased in the neighboring countries of the NIS, as the cost of imports from outside Russia has risen as a consequence of the significant devaluation of local currencies. Some of the specific effects and impacts on other NIS and neighboring countries are summarized briefly below. Armenia—Accumulation of public sector arrears is likely, as government is facing difficulties in financing of education, health care, and other expenditures. Remittances from Armenians in Russia have decreased, placing additional pressure on family support systems, and this could result in increased poverty. Azerbaijan—Trade-related consequences in the short term are less than for other NIS countries, as the political instability in the North Caucasus region has already limited trade ties with Russia prior to the crisis. Government spending was cut in 1998, and further cuts in 1999 will affect key social sectors. As in other Caucasus countries, decreased remittances from Azerbaijani nationals residing in Russia has reduced family incomes in Azerbaijan. Baltic Region—Estonia, Latvia, and Lithuania—The Russian crisis forced some Baltic banks to fail, and several others to reveal their under-reporting of exposure to Russia in their September 1998 quarterly reports. Better developed financial systems, a reorientation toward western markets, and general political stability have helped to limit the damage and contagion effects from the Russian crisis. Belarus—One of the most affected countries in the NIS, Belarus was highly dependent on trade with Russia prior to the crisis. Exports to Russia plunged from $400 million/month in the first half of 1998 to just $170 million/month by September 1998. Shortages of basic foods forced the government to introduce rationing. Georgia—The Russian market accounted for 30 percent of Georgia’s exports prior to the crisis, and Georgian nationals living in Russia provided a significant amount of income to Georgian families through remittances. The trade deficit with Russia widened to 50 percent in October 1998, forcing the Georgian authorities to float the lari (which led to a sharp depreciation). 11 Kazakhstan—In the first half of 1998, half of Kazakhstan’s exports went to Russia, and the impact of the crisis has been felt in Kazakhstan primarily through the reduction of exports to Russia. Kazakhstan introduced a temporary ban on the import of some Russian foodstuffs, in order to control the inflow of cheapened Russian goods following the depreciation of the ruble. Kyrgyzstan—Nearly 60 percent of Kyrgyzstan’s exports went to Russia, prior to the crisis, so this country was also one of the more vulnerable to negative shocks through the trade mechanism. In this most pro-reform of the Central Asian Republics, price liberalization of utilities and privatization may be threatened, as consumers are less able to pay the higher tariffs as a esult of fallen incomes. Moldova—Trade with Russia is important to Moldova, as 50 percent of Moldovan exports went to Russia prior to the crisis. Many farms and other agro-exporters have been unable to pay wages, as their export market has dried up in Russia. Here, too, the crisis has threatened the reform and liberalization process implemented by the government, as investors’ interest in the Moldovan economy has diminished and a heavy withdrawal from commercial banks have signaled a lack of confidence in this country. Tajikistan—Low commodity prices for cotton and gold had already damaged the Tajikistan economy before the Russian crisis, and the fragile peace held together in part with the support of the Russian military (serving as border guards) has certainly not gained strength from the crisis. Apparently, Tajikistan is not as dependent on trade with Russia as other NIS countries, and this has helped to insulate Tajikistan from the direct effects of the crisis. Turkmenistan—Exposure of Turkmen banks to Russian markets has been limited, as the Turkmenistan economy is tightly controlled by the state. The Russian crisis therefore is not expected to have a strong direct impact on Turkmenistan. Ukraine—Closely linked to Russia through trade and financial ties, Ukraine has suffered greatly as a result of the Russian crisis. The hryvnia lost half its value against the dollar following the crisis, and reserves have fallen (as of early 1999) to only one month of imports. Inflation surged to 12. 8 percent in October 1998 alone, following a long period of relatively stable inflation before the onset of the crisis (2 percent inflation in first half of 1998). Uzbekistan—As Uzbekistan has been gradually reorienting its international trade profile away from Russia over recent years, the country has apparently been less affected by the crisis than other NIS countries. Further, the underdeveloped banking system and financial markets in Uzbekistan may have helped to insulate that country from the shocks emanating from Russia in August 1998, as Uzbekistan had relatively little exposure to Russia’s financial markets. 2 Proposed Remedies As discussed throughout this paper, two camps have emerged in academic and policy circles that seek to explain the causes of and remedies for the Russian financial crisis. This section highlights some of the remedies proposed by each camp. According to the â€Å"fix the countries† critics, such as the IMF and the U. S. Treasury Department, the Russian government must continue pushing for reforms in the public finance and banking sectors. According to Gaddy and Ickes, only two options exist for western creditors and international financial institutions: keep Russia stable in the short-term by bailing out the virtual economy or refusing a bailout. Denying Russia a bailout would have negative effects in the short-term by leading to the demise of large commercial banks and oligarchs, foreign capital flight, and currency devaluation. In the long run, however, Gaddy and Ickes prefer this option because they believe it will force Russia to adjust to economic life without a steady supply of credit available and adapt sound economic policies. They dislike the first option simply because they believe it will lead to the further development of a nonmarket-oriented economy that would require bailouts in the future. The Treasury Department adds that bank restructuring and reforms in tax administration and collection are necessary as well. The â€Å"fix the global financial system† critics, such as Jeff Sachs and George Soros, urge that the international financial system be reformed so that short-term borrowing by banks and governments be limited so as to avoid potential investor panics. In addition, Sachs recommends that domestic banking regulations, in the form of enhanced capital adequacy standards and policies that encourage partial bank-sector ownership by foreign capital, be implemented in order to limit vulnerability of the domestic economy to foreign creditor panics, and that exchange rates be kept flexible instead of pegged. In addition to these proposed remedies, others have gone further to propose mechanisms for recovering losses (Sexton 1998). According to Sexton, foreign creditors have at their disposal four mechanisms to recover losses to Russian firms: 1. Convertible debt securities: debtors could issue convertible bonds to creditors although Sexton argues that this probably won’t work too well in Russia 2. Treasury or redeemed shares: company may exchange its own shares, that were bought back, or interests to extinguish outstanding indebtedness; there should be no tax consequences to debtor on repurchase of shares; on resale to foreign creditor, debtor should be taxed on any gain on shares or should be able to deduct any loss sustained 3. Alternative debt refinancing structure: swapping debt for convertible debt which creditor converts into equity; issue by debtor to creditor of convertible bonds as a means of refinancing outstanding debt; creditor should make sure conversion ratio covers value of outstanding debt over term of loan; disadvantage to this 13 strategy is that creditor is refinancing and likely to have twice the outstanding debt for some time 4. Securitizing the debt: convert debt into security which creditor then contributes to debtor’s charter capital to pay for the shares (key issue facing creditors thinking of taking equity in a Russian debtor company in exchange for indebtedness is how to value that equity) Summary This paper has addressed the opposing views as to the causes of and remedies for the Russian financial crisis. †¢ Two central camps have emerged. One camp argues that the Russian economy has severe structural problems that were the primary cause of the crisis: fiscal deficit, banking sector problems. The other group points to the IMF and the problems with the international financial system, claiming that moral hazard problems led investors to underestimate the risk of investing in emerging markets such as Russia, and that unregulated short-term investment flows out of emerging markets can result from the panic. Each of these groups proposes different remedies for the crisis, based on their assessment of the roots of the crisis. The IMF and Treasury Department insist that the Russian government continue to push for reforms in public finance and the banking sector, claiming that weaknesses in these areas ultimately led to the onset of the Russian crisis. Jeffrey Sachs, George Soros, and others who are critical of the international financial systems and the role of the IMF in the recent financial crises, recommend that the short-term borrowing by governments and banks in emerging markets be limited and regulated, and that exchange rates are flexible rather than pegged. †¢ Although the worst of the Russian crisis may have already passed, as the Russian and other ENI stock markets appear to have recovered and the dramatic fall in production has been reversed, the original causes of the crisis still need to be addressed. Continued progress in banking and fiscal reforms in Russia will be necessary to ensure that the country is less vulnerable to future external shocks and foreign creditor panics. Improvements in these sectors would help restore investor confidence in the Russian economy and reverse the current outflow of capital. 14 ANNEX: What Happened in Russia? A Brief Chronology of Events Asian Crisis: Precursor to the Russian Crisis †¢ †¢ July 1997, Thailand—devaluation of Thai baht December 1997, Korea—devaluation of Korean won †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ ate October 1997— Pressure on ruble intensifies, as result of Asian crisis December 1997—Foreign exchange pressure temporarily recedes in Russia 19 December 1997—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"BB-â€Å"; outlook—negative; short-term—â€Å"B† January 1998—Reemerging p ressure on ruble forces Central Bank to raise interest rates, increase reserve requirements on foreign exchange deposits, and intervene on ruble and treasury bill market March 1998—Stock market prices in Russia have not yet recovered from lows reached in late fall 1997 May 1998—Russia places major commercial bank under Central Bank administration; miners strike over wage arrears; Russia continues to intervene on foreign exchange markets to support ruble, but investors increasingly see this strategy as unsustainable Late May 1998—Interest rates in Russia increased to 150 percent; Russian government announces revisions to 1998 budget, including 20 percent cut in expenditures and new initiatives to boost revenues Early June 1998—Recent policy announcements temporarily ease tensions, allow partial reversal of earlier interest rate hikes 9 June 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: long-term— â€Å"B+â€Å"; outloo k—stable; short-term—â€Å"B† Late June 1998—Russian authorities unveil anti-crisis program, aimed at boosting tax revenues, cutting expenditures, and speeding up structural reforms . 9991 lirp A , eci vre S et aR egn ahc xE CIFI C AP : ecruo S 15 4 / 2 / 9 9 3 / 2 / 9 9 2 / 2 / 9 9 1 / 2 / 9 9 1 2 / 2 / 9 8 1 1 / 2 / 9 8 1 0 / 2 / 9 8 9 / 2 / 9 8 8 / 2 / 9 8 7 / 2 / 9 8 6 / 2 / 9 8 5 / 2 / 9 8 4 / 2 / 9 8 3 / 2 / 9 8 2 / 2 / 9 8 1 / 2 / 9 8 03 Russian Crisis Timeline 0 5 01 51 02 52 After the devaluation of the Thai baht in July 1997, one Asian country after another had to raise interest rates sharply to avoid currency devaluation. But the combination of high interest rates and currency depreciation, which inflated the burden of foreign debt, provoked a financial crisis (Krugman 1999). SU$/selbuR :etaR egnahcxE elbuR †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ 16 1 2 / 2 0 / 9 8 9 / 2 0 / 9 8 6 / 2 0 / 9 8 3 / 2 0 / 9 8 1 2 / 2 0 / 9 7 9 / 2 0 / 9 7 6 / 2 0 / 9 7 3 / 2 0 / 9 7 1 2 / 2 0 / 9 6 .9991 lirpA ,semiT wocsoM :ecruoS 9 / 2 0 / 9 6 6 / 2 0 / 9 6 3 / 2 0 / 9 6 1 2 / 2 0 / 9 5 9 / 2 0 / 9 5 6 / 2 0 / 9 5 3 / 2 0 / 9 5 1 2 / 2 0 / 9 4 9 / 2 0 / 9 4 6 / 2 0 / 9 4 0 †¢ 003 †¢ xednI semiT wocsoM :egnahcxE kcotS naissuR †¢ Mid-July 1998—Russian authorities introduce additional policy package, in the context of an IMF agreement on an augmented Extended Fund Facility (EFF) arrangement 20 July 1998—IMF releases first $4. 8 billion tranche of $22. billion extra credit pledge, as policy package is approved by IMF Late July 1998—Initial effects of this package are positive, with equity prices rebounding 30 percent, treasury bill rates falling from 100 to 50 percent, and a low ering of the Central Bank refinancing rate from 80 to 60 percent Early August 1998—The Duma fails to approve new reform program; President forced to veto several Duma measures and introduce others by decree 13 August 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"B-â€Å"; outlook—negative; short-term—â€Å"C† 14 August 1998—Average treasury bill rates are about 300 percent, international reserves down to only $15 billion, and Russian banks are unable to meet payment obligations Russia on the verge of full-scale banking and currency crisis 15 August 1998—Boris Yeltsin announces that there will be no devaluation of the ruble 17 August 1998—Russian government defaults on GKO Treasury Bonds, imposes 90day moratorium on foreign debt payments, abandons ruble exchange rate corridor 17 August 1998—Standard and Poor’s Sovereign Ratings of Russian ruble downgraded: long-term—â€Å"CCC†; outlook—negative; short-term—â€Å"C† 21 August 1998—Russia’s international reserves fall to $13. 5 billion, after renewed heavy intervention in an effort to support the weakened ruble 26 August 1998—Following heavy intervention, the Russian Central Bank announces that it will stop selling U. S. ollars, and suspends trading of ruble on main exchanges Late August 1998—Kiriyenko government is dissolved, financial crisis intensifies 1 September 1998—Russia is the IMF’s largest borrowe r, with a combined total of credits at this date equal to nearly $18. 8 billion 2 September 1998—Russian Central Bank abandons exchange rate band, lets the ruble float 16 September 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"CCC-† [lowest possible S and P rating]; outlook—negative; short-term—â€Å"C† January 1999—Moody’s assesses financial strength (â€Å"E†) and credit ratings (â€Å"Ca†) of the Russian banks at the lowest possible levels; most banks are insolvent (or nearly so) 005 054 004 053 052 002 051 001 05 †¢ †¢ †¢ 15 January 1999—The Central Bank of Russia re-launches trading on the domestic debt market. The new securities are to be used in the restructuring of frozen GKO and other debt instruments 27 January 1999—Standard and Poor’s Sovereign Ratings of Russian ruble: Longterm—â€Å"Selective Default†; outlook—â€Å"Not Meaningful†; short-term—â€Å"Selective Default† 5 February 1999—The 1999 budget was passed by the Duma in its fourth and final reading. The budget estimates a 2. 5 percent budget deficit, and assumes that the government will receive $7 billion in external loans to help finance foreign debt service 17 BIBLIOGRAPHY European Bank for Reconstruction and Development (EBRD). March 1999. â€Å"Overview on Developments in the Operating Environment,† mimeo. European Commission (EC). 20 January 1998. â€Å"The Russian Crisis and Its Impact on the New Independent States and Mongolia. † Communication of the European Commission to the Council and the European Parliament. [http://europa. eu. int/comm/dg1 a/nis/russian_crisis_impact/1. htm] Frankel, Jeffrey A. 1999. Soros’ Split Personality: Scanty Proposals from the Financial Wizard. † Foreign Affairs 78 (2): 124-130. Gaddy, Clifford G. , and Barry W. Ickes. 1998. â€Å"Russia’s Virtual Economy. † Foreign Affairs 77 (5): 53-67. Gaidar, Yegor. February 1999. â€Å"Lessons of the Russian Crisis for Transition Economies. † Institute for Economies in Transition on-line publication. Illarionov, Andrei. 1998. â€Å"Russia and the IMF,† testimony prepared for hearing of the General Oversight and Investigations Subcommittee of the Banking and Financial Services Committee of the U. S. House of Representatives, 10 September. International Monetary Fund (IMF). 1999. IMF Survey. Volume 28, Number 4. International Monetary Fund. May 1998 and December 1998. World Economic Outlook. International Research and Exchange Board (IREX). 1998. â€Å"Russia’s Economic Crisis and Its Effect on the New Independent States,† a discussion report summarizing conclusions of an IREX policy forum held on 18 November. â€Å"Kommunisticheskie pravitel’stvo v postkommunisticheskoi Rossii: pervye itogi i vozmozhnye perspektivy [Communist Government in Post-Communist Russia: Initial Results and Possible Perspectives]. † 1999. Working Paper Series. Moscow: Institut ekonomiki perekhodnogo perioda [Institute for Economies in Transition]. Krugman, Paul. 1999. â€Å"The Return of Depression Economics. Foreign Affairs 78 (1): 5674. Lipton, David. 1998. â€Å"Treasury Undersecretary David Lipton Testimony Before the House Banking General Oversight and Investigations Subcommittee on Russia,† RR-2673, 10 September. Odling-Smee, John. 1998. â€Å"The IMF Responds on Russia: A Letter to the Editor,† 30 November. 18 O’Brien, Timothy. 1998. â€Å"George Soros Has Seen the Enemy. It Looks Like Him. † The New York Times, 6 December: . Phillips, Michael M. 1999. â€Å"Apocalypse? No. Round the Globe, Signs Point to Final Days of Financial Crisis. † The Wall Street Journal, 14 April: . Radelet, Steven, and Jeffrey Sachs. 1999. â€Å"What Have We Learned, So Far, From the Asian Financial Crisis? Paper sponsored by USAID/G/EGAD under Consulting Assistance on Economic Reform (CAER) II Project. Robinson, Anthony. 1999. â€Å"Russia: Coming in from the Cold. † The Banker 149 (877): 4849. Russian European Centre for Economic Policy (RECEP). 1999. â€Å"Russian Economic Trends. † Monthly Update, 10 February. Russian Market Research Company (RMRC). 1998. â€Å"Business Barometer Survey: Moscow, October 2-3, 1998,† published on the American Chamber of Commerce in Russia website. Rutland, Peter. 1999. â€Å"Moscow Casts a Long Shadow. † Transitions 6 (3): 27-31. Sexton, Robert. 1999. â€Å"Turning Russian Debt into Equity. † Euromoney no. 357: 75-76. Smirnov, Mikhail. 1998. Rubl’ kaput ili kak bank Rossii opustil rubl’ [The Ruble is Kaput, or, How the Bank of Russia Lost the Ruble],† National’naia sluzhba novostei [National News Service]. Soros, George. 1998a. Testimony to the Congressional Committee on Banking and Financial Services of the U. S. House of Representatives, 15 September. Soros, George. 1998b. â€Å"The Crisis of Global Capitalism: Open Society Endangered,† remarks before the Council on Foreign Relations, New York, 10 December. Summers, Lawrence H. 1999. â€Å"Russian and the United States: The Economic Agenda,† remarks by Deputy Treasury Secretary Lawrence H. Summers at the U. S. -Russian Investment Symposium in Cambridge, MA, 14 January. Uchitelle, Louis. 1999. â€Å"Crash Course: Just What’s Driving the Crisis in Emerging Markets? † The New York Times, 29 January: . 19

Consequences Of Global Overfishing Environmental Sciences Essay

Consequences Of Global Overfishing Environmental Sciences Essay This essay covers the world crisis of overfishing and its effects on the global economic and environment. Essay has found that fisheries are facing unusual crisis due to overfishing and overfishing is further threaten to the future sustainability of fisheries, the livelihoods of coastal fisheries and ecosystems. The reason of overfishing is associated with increasing population of the world which demonstrates increased food requirements for the population. In consequence, increased food requirement has led to overfishing. As a result of overfishing, marine species have declined in population and causing change to marine ecosystems (Peter, 1994). This essay is concerned about the issue of overfishing, reason of overfishing and after-effects of overfishing. Other main concern of the easy is the role of large countries and multinational corporations and in the same regard, economic and commercial issues will also cover to understand how trade factors like exceeding quotas and commercial fishermen are more likely to be responsible for overfishing. Fish is the basic source of protein for 950 million people around the world and it is included as basic diet of many people. Fisheries are also important source of employment and 200 million people around the globe are associated with fishing for their survival (Fontaubert Lutchman, 2003). In addition, according to Dommen and Deere (1991), 40% of the global fishery production enters into international trade market with half of fishery which exports from developing countries. According to report of Gareth Porter (2003), Fisheries Subsidies and Overfishing: Towards a Structured Discussion released under United Nations Environment Programme, with expanding fishing in recent years there has been a considerable reduction in fish stocks and this reduction is more preferably observed in species for human consumption such as cod, haddock and plaice. Since 1950, fisheries production has increased about 6 % which is now fallen to zero (Miller Spoolman ¸2008). There is evidence for economic and environment harm causing due to overfishing whereas reduction in fishes has declined 100,000 jobs in last few years. Moreover, owing to these implications the cost of fishes in local markets have unusually risen (Weber, 1994). Considering all these consequences, overfishing has become one of the most serious environment and economic issues around the world. With the passing time it has become the tragedy of commons and situation of lack of property rights provides an open opportunity for everyone to catch as much fishes as they want regardless of considering for future. Under condition of tough competition commercial fishermen endeavor to deplete the seas as any fish left behind can be caught by someone else. As a result, world is going through common tragedy to which they are failed to addressed properly (Alessi, 2004). Overfishing and its Implications By definition overfishing is catching of exceeding number of fishes in order to hold sustainable fishing system by doing overfishing. Commonly, overfishing takes place when stock of fishes lose their stock down to an acceptable level. As a result of overfishing, fishes lose their capacity to survive as they largely depend on sea creature and able to breed new generation. An example of adverse effects of overfishing is that overfishing of sharks has led to upset the marine ecosystems (Shark Declines Threaten Shellfish Stocks, Study Says, National Geographic News, 2007). The fisherys potential to recover from the overfishing relies on the suitability of ecosystem  condition. Unusual changes in the composition of species can also lead to shift in ecosystem where other equilibrium energy flows encompasses the species compositions. However, there are number of factors involved in the overfishing in the world, but many studies have revealed that with the increasing activities of human an d extended living style, oceans are ruined and losing their natural beauty. In addition, in 1997, 50% of worlds population was located in sea areas including big cities of the world. This percentage is expected to remarkably increase to 75% (Marine environment and sustainable development, 2002). There is immense importance of coastal areas as they provide many resources for sustainability in the worlds economy and also extraordinary influence on economic and social advantages. It is estimated that 90% of international trade depends on marine transportation. Moreover, coastal resources provide 25 to 30 per cent to the global energy supplies. Fisheries also create jobs and demonstrate rapidly growing industry which is estimated to give 30 per cent of the worlds fish consumption (Porter, 1998). Moreover, tourism is another fastest growing industry while only coastal tourism generates $3.5 trillion in revenues. Thus, all these economic activities and growth in population is placing great impact on the importance of marine areas. Causes of Overfishing Despite the fact that increasing population has required more food and more demand of food has led to overfishing, there are some other reasons that cause overfishing (Nordquist Moore, 2000). Many reports reveal that fishing is the only industry in the world without any restriction and such open access of fishing makes fisheries to do overfishing (Fontaubert Lutchman, 2003). The fishermen have increased double in 25 past years. In addition, the reason that fishing is free and open access to fishing persuades many people to do overfishing without taking care of maintaining the fish stock. Second are the government subsidies to overfishing. Study of World Bank has estimated that even though subsidies are declining yet it is worth $20 billion a year. Moreover, fisheries also provide jobs especially in poor countries which further help them to expand their industry. Subsidies also lead many companies to develop high-tech fishing which causes overfishing. Since fishing industry is taken into account as the best source of employment and export revenue, this is further leading to overfishing around the world. However, increase growth rate is questionable for the sustainability of the industry; therefore international environment communities are concerned about this issue. Another reason to which overfishing is associated is the increasing technological advancement. Invention of distant water fleets have brought about the fishing industry to developing countries which do not possess large fleets for fishing. Many marine creatures have constant threat from the invention of technological development. Moreover, excessive trawling and dredging with poisonous and explosive materials have negative ecological impact (Miller Spoolman ¸2008). Other than that, unwanted fishes cause depletion of fish stocks, on the other hand, fishermen with the imposition of quotas on the number of fishes discard low value fish and hold only high value fishes. Discarded fish amounts20 milli on tons and it accounts for one fourth of the annual marine catch. Effects and Consequences of Overfishing According to the Food and Agriculture Organization of the United Nation, there is 47% exploitation of world fish stocks and this leads to less expansion of marine creature in future. However, there are major changes in the composition of catching world marine species as they are caught when they are not grown or immature. With the decreasing harvesting, the fish prices are accelerating and making it less affordable fish. According to report, in 2002, 72% of the worlds marine fishes stock is harvested faster than their reproduction. Other than that, there are some negative effects on marine ecosystems. For this reason, there is greatest concern over the rapid depletion of fish population due to extensive commercial fishing. Moreover, world fish population has immensely dropped in the history while most of fish population has 90% declined. This increase number of decline in the population of fish has caused changes to marine ecosystems and also endangering the total productivity of sea creature. As a result of declining rate of production and its impact on marine ecosystems, people around the world are suffering. The consequences of overfishing can be classified into two major concerns including environment and economic consequences. As far as environment consequences of overfishing are concerned, overfishing may cause reduced harvest of targeted fish and excessive harvest of non-targeted, undersized and protected fished and at last ecosystem changes. In addition, consistent overfishing can possibly eliminate the largest fish population. Overfished population is characterized by the less productive fish which leads to decline in the fish stocks. Harvest of non-targeted marine species or bycatch is estima ted to form one quarter of world total fish catch. The bycatch method requires unwanted caught fishes to be discarded and at the time of discarding they are dead. The catching of unwanted fishes and marine species depend on the ways or fishing gears used to do fishing. Various types of fishing gears used are not capable of catching particular fish and usually trap unwanted catch. On the other hand, longlines can catch seabirds, turtles and other non-targeted fish along with the targeted catch. The use of gillnets catch seabirds, and other discarded fishes. Gillnets usually catch and kill marine species through ghost fishing. Trawls are specific to catch non-selective fishes and catch many different marine animals. Environmentally overfishing can have immense adverse effects on the ecosystem. In 1990, world total catch had reached a plateau. This plateau is maintained by changes in species composition (Porter, 2003). The most demanded fishes tend to be fished the most. Once one demanded species is depleted fishing moves down the food chain and decrease the marine ecosystem. Thus, considerable environmental changes can bring about negative effects on the fish production levels. Moreover, overfishing can also lead to changes in marine food web while leaving negative effects on the other marine species. Overfishing has indirect possible impact on the change of ecosystems such as coral reef ecosystems (Fontaubert Lutchman, 2003). This occurs due to removal of plant eating fishes with the reduction in plant grazing. Thus reduction in grazing allows the algae to coexist with corals to grow and possibly take over, particularly when there is high level of nitrogen in water. It occurs due to reduction in light that allow entering into water and then algae contribute to the loss of corals while relying on light. Besides environmental consequences caused by overfishing, there are economic consequences such as number of environmental costs, and mismanagement of fisheries can lead to loss of number of marine species as a result of rise in harvest. Fishery resources with best management can give total rise10 million metric tons in harvest which adds annually $16 billio n to worldwide gross revenues. Other consequences are accounted as reduction in numbers of fishes and size of fishes. There is remarkable decline in the stock of fishes and it is frequently leading to decreasing safe biological limits. Thus, undefined quantity of fish stocks has risen with the time. Moreover, reduction in size of fishes, which is not total amount of adult fishes but also average size of fish, has also decreased. As measured in 2008, the size of a cod is often considerably less than this at 33cm. reduction in the length of fishes has been measured for many marine species. Overfishing is more often caused by excessive bycatch which contributes to the fishing industry. Thus economy cost includes decreased food production in fisheries directed at the adult marine animal of young discarded in other fisheries and further decreases the employment in fisheries. Eventually overfishing causes significant effect on the economic and environment costs (Miller Spoolman ¸2008). The prevention of overfishing a nd allowing the stock to rebuild can considerably improve the stock productivity and maximize the revenue for industry. Therefore, there is need to adopt such measures that helps to stabilize both resources and industry (Somma, 2003). Subsidies Policy for Overfishing Many suggest that fishing crisis caused by overfishing can be controlled using subsides but at the same time subsidies is identified as root cause of the problem. By using effective funds, subsidies can be helpful to stimulate fishing practice which can overcome fishing crisis. In order to further protect the fishing, government authorities must consider over elimination of harmful government subsidies for this purpose funds need to be redirected towards causes like reduction in capacity, the creation of stock recovery, and stock assessments (Nordquist Moore, 2000). Moreover, the funding legislation structure can be used to influence to supporting sustainable fishing practices. However, subsidies can be good preventive measures but inappropriate subsidies of governments of the world are likely to earn more by increased subsidies although they can maintain the capacity of fishing fleets. In consequences, the creation of fishing controlling policies are promoting the overfishing rathe r than preventing the overfishing (Fontaubert Lutchman, 2003). The implementation of such policies which are intended to increase the overfishing must be eliminated or modified to be useful for saving the fish stocks. Despite the fact that governments can support the policy of anti overfishing but they are reluctant to remove such subsidies as they are more concerned about the fishing industry and other possible negative socio-economic implications for fishing communities. Many countries are increasing fleet modernization subsidies even though there is severe overfishing, other countries which reduced pressure from fishing has caused economic and social problems along the coast. Fishing Regulation and Impact on Overfishing There are prevailing fishing regulations such as quotas, property rights and protected or banned areas but they are not enforced (Porter, 1998). There is difficulty found in enforcing such regulations by government and it is more problematic in developing countries. As a result of inappropriate enforcement or negligence of government regarding protecting seas species it has been identified as cause of overexploitation. Inefficiency of government specifically in developing countries to enforce such regulations is considered as further incentive for a big scale industrial vessel. In addition, even though these regulations are implemented strictly, there is further possibility of illegal fishing which is very common in developing countries (Nordquist Moore, 2000). Role of Developed Countries in Overfishing The role of developed countries about overfishing is likely to more flourish the fishery industry in the world. Most of the EU countries including Britain, Spain, Denmark and France have encouraged the overfishing over the years and are aiding to fishery industry. A report has revealed that 29 percent of the EU has taken such measures that contribute to overfishing in the region. These contributions are justified with the modernization of fleet constructions. In addition, 17% is bestowed to take measures for healthy fisheries and fishing bans. Moreover, EU subsidies for fishing seemed to incapable in reducing the overcapacity of fleets which applies fishing pressure on the fishes stock. The important fish stock of EU has been engaged in overfishing which mainly includes sharks and prawns (Nordquist Moore, 2000). Ways to Combat Overfishing However, there are number of countries which recognized this issue as global problem and taking considerable measures for combating overfishing by imposing subsidies over fleet construction, the role of developed countries has been observed a little which indicates great hindrance for combating the overfishing. Many nations of the world have jointly agreed on the plan to overcome the severity of the problem through protecting the worlds major marine fishery resources, other destructive and wasteful fishing activity. For this reason an international plan of action for the management of fishing capacity has been designed to achieve the efficient and transparent fishing capacity management. Food and Agriculture Organization has estimated that in 1995 the world fishing fleet were about 3.8 million in numbers with 1.2 million vessels had storage space. Furthermore, in order to overcome the overfishing the first thing required is the reduction in the number of fishing fleets. Since reducti on in fishing capacity can be achieved by relocation of vessels in other countries fisheries, fisheries is usually a serious issue butt does not contribute to a global reduction of fishing capacity (Dommen et al, 1999). Even though there is great consideration over the matter of reducing the fishing capacity in highly populous country but mostly developed countries do not intend to reduce or change the fishing pattern on account of increasing social pressure. In this regard, the best way is to reduce bycatch could be effective for lowering the overfishing. For this purpose nations of the world have to take stronger enforcement and better regulation into consideration. Currently there are a few countries which have considered about imposing such ban or restriction on bottom trawling such as Scotland, Philippines, Greece, New Zealand and Kenya. Since there is record recovery measured in these courtiers after implementation of these principles, there is great concern of the developed c ountries which have not yet shown interest in implementing such regulations (Peter, 1994). Most recently, Economic and Trade Branch of the United Nations Environment Programmes has arranged workshop program on Fishery Subsidies and Sustainable Fisheries Management. The purpose of this workshop was to offer a platform for nations to share their opinions and effects of subsidies on the fisheries. Another example for combating overfishing can be drawn from the fishery policy of European Council of Fisheries Ministers that has taken long term recovery plan for fish stocks. The council plan proposal has resulted in some conflicts but after some social considerations such as allowing fishermen to fish at low level and not to stop them on the whole there is mutual consent over preventing overfishing. Besides, there is need to adopt some common strategies which provide commitment between upstream and downstream countries. Moreover, with mutual consent, nations can develop an international governance framework that allocates the water on equitable basis. Furthermore, since protection of ecosystems, which is in danger due to overfishing, must be considered by improving the policies for aquatic ecosystems protection and pricing products. Through improving the ecosystems protection and pricing products social and economical cost of the natural resources can be saved. In this respect, raising both public and political awareness is also significant which possesses concept of ecosystem-based management like integrated coastal zone. Natural resource management, which referred to the management of land, water and other natural resources, can be used as tool to promote the sustainable use of aquatic ecosystems. Conclusion With greater understanding about the importance of fishing in the economic and social effects, it is concluded that fishes are the most vital source of nourishment. Widespread overfishing has been causing the world to face numerous problems in regard to adverse environment effects and significant economic consequences. Since the poorest nations of the world are more likely to depend on the fishing for their survival, international organization must consider over such resolution which not only provides ultimate solution to environment problem but also decreases the possibility of deteriorating economic condition of the nations which is already in plague.