Related Literature free essay sample

In order to develop a thorough understanding and deeper insight into previous works and trends that is relevant to the subject, as well as to reach specific goals of the study, the researchers considered a number of references, both foreign and local. These references presented in this chapter were gathered through journals, magazines, books, and other reading materials.It is also includes related foreign and local literature and studies acquired through the internet, past thesis and case studies of the same field and discipline. This provides a background for the discussion to analyze the findings of the present investigations. Foreign Literature For the millions of poor in developing areas of the world, urban areas have always been a means for improving their quality of living and environment, besides getting better jobs and incomes.This, in contrast to deteriorating conditions in the rural areas has generated a considerable flow of migrants to cities. We will write a custom essay sample on Related Literature or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page One of the dilemmas that they face and which persists for a long period is the question of an adequate house. The definition of Mason,O. S. Fraser, C. , (1998) takes the environmental, socio economic and living conditions more into account. They describe informal settlements as: Dense settlements comprising communities housed inself-constructed shelters under conditions of informal or traditional land tenure.They are a common feature of developing countries and are typically the product of an urgent need for shelter by the urban poor. As such they are characterized by a dense proliferation of small, makeshift shelters built from diverse materials (such as plastic, tin sheeting and wooden planks), by degradation of the local ecosystem (for example, erosion and poor water quality and sanitation) and by severe social problems. United Nations Human Settlements Programme (2008) differentiate slum settlement to squatter settlement.The word slum traditionally describes a neighborhood of housing that was once in good condition but since deteriorated or been subdivided into a state of high crowding and rented out to low-income groups. A s quatter settlement, on the other hand, is an area of poor quality housing built on illegally occupied land. A third kind of settlement is an irregular subdivision, in which he legal owner subdivides the land into sub-standard plots and sells or rents them out without following all relevant building bylaws. Fernandes, E. 2011) on his report, Informal Settlements are caused by low income, unrealistic urban planning, lack of serviced land, lack of social housing, and a dysfunctional legal system. The settlements develop over time and some have existed for decades, often becoming part of the regular development of the city, and therefore gaining rights, although usually lacking formal titles. Whether they are established on public or private land, they develop irregularly and often do not have critical public services such as sanitation, resulting in health and environmental hazards.

Common German Folk Songs That Are Easy to Learn

Common German Folk Songs That Are Easy to Learn If you are a teacher, you know the educational value  that German folk songs offer its learners through their simpler vocabulary and vivid imagery. Further, they are more easily learned than poetry. However, if you are a German learner who has not been introduced to German folk songs, we invite you to take the opportunity to listen to them, learn them and yes even sing them - even if your attempt is only in the shower. Dont shy away from learning new vocabulary just because of the infantile connotation folk songs sometimes get. Youd be surprised at how rich the imagery can be in certain folk songs and the glimpse into German culture it offers. It has been proven countless of times that music can accelerate language learning, so why not take the plunge? Learning one folk song a week would add a breadth to your vocabulary  in no time. The following are some favorite German folk songs that are fairly easy to learn: This is a popular old German folk song that explains all the tasks that farmers need to do throughout the year starting with March. Lots of action verbs in this song that permit the learner to easily visualize and thereby learn quickly the meanings of these words.  Putting  pictures above the verbs would speed up the learning process of the song. Der Mond ist Aufgegangen This  German folksong  is very popular, sung by children, sung  at church, and heard  almost always when German folk songs are sung. It is a very versatile song for teaching German. The first verse is best suited for beginners, whereas the other verses lend themselves to intermediate students. It is also a great song for discussing symbolism and religion. This is a favorite folk song of teachers for introducing  bird names - fourteen in total! Also, wedding vocabulary is learned as the birds in the song celebrate a marriage. Die Gedanken sind frei The oft-repeated refrain Die Gedanken sind frei stays in your head. This a good song for discussion about freedom and human rights. Muss i denn This German song made popular internationally through Elvis is good practice for those German learners who want to learn  a little bit of southern German dialect. Dat du min Leevsten bà ¼st Now to practice some northern Plattdeutsch. This folk song is much harder to understand than Muss i denn, therefore it is more suitable for intermediate/advanced learners. Sah ein Knab ein RÃ" §slein stehn This folk song is a  good introduction to Goethe  for the advanced beginner. Written by Goethe in 1799, the poem Heiderà ¶slein (rose on the heath) was set to music by multiple composers. The version that is sung today was composed by Schubert. A lesson on rhyme and symbolism can be presented through this song. Kein schà ¶ner Land in dieser Zeit A very well-known folk song  in Germany,  sung often around  campfires as it is an evening song. Im Frà ¼htau zu Berge Many Germans would be surprised to know that this popular folk song  is  originally  from Sweden. It was translated in the early 20th century into German and was an instant favorite Wanderlied and has been so ever since. There have  even been parody spin-offs made from this song such  as  Ã‚  Beim Frà ¼hstà ¼ck am Morgen sie sehn and  Im Frà ¼hstau bei Herne wir blà ¼hen richtig auf. Grà ¼n, Grà ¼n, Grà ¼n   Today this  is regarded more of a childrens song sung in the primary grades. However, in the 19th century, it was known as a dancing folk song. This song  is perfect for  learning colors and job titles simultaneously. What I like most about this song is that you can insert your own color into the song and the accompanying job title associated with it.

Description of Telescopes essays

Description of Telescopes essays Telescopes are one of the main ways that astronomers explore the universe. They come in all shapes and sizes depending on their function. Generally, bigger telescopes are better if you want to see faint, far-away things, because they can gather more light and have better resolution. Resolution is the ability of a telescope to discern objects close together; for example, the ability to clearly separate two stars that are very close together or the ability to see smaller craters on the Moon. The gamma rays are the most powerful type of radiation, discovered at the beginning of the century as radioactive substance emissions. Like the light, the gamma rays are constituted by photons, particles of light, with the difference that a gamma photon has more than a million, even thousands of million of times more energy that a photon of visible light. By their high energy these photons penetrate lead plates, and to generate them in the Earth we required subatomic particle accelerators: once accelerated, these particles can produce gamma rays when hitting other particles that serve as target. In analogous form, the celestial gamma ray sources must accelerate subatomic particles and make them affect a target. An alternative is that the accelerated particles emit gamma rays in the presence of an electromagnetic field. In any case, the gamma radiation emission obeys to different processes that are require to emit visible light. Studies of astronomical objects in high energy X-rays and gamma rays began in the early 1960s. Although high altitude balloons and rockets can provide X-ray and gamma ray data, the best results come from satellites orbiting completely outside the Earths atmosphere. X-ray telescope mirrors are coated with gold or other metals. The mirrors have shallow angles of reflection because X-rays are so short they only reflect at angles almost parallel to the rays themselves. At steeper mirror angles the rays won&ap...

How To Quit A Job You Just Started

How To Quit A Job You Just Started You did everything right and landed the job. Trouble is, through no fault of your own, it’s just not what you expected it would be. You’re suddenly desperate not to work there anymore, but you’re worried that you’re stuck. You don’t want to anger your new colleagues or boss. You don’t want to risk being blacklisted from future positions at the company. You don’t want to bring your educational institution a bad name. And you definitely don’t want to be seen as a quitter. What if you get to your next job and feel the same way? You can’t just keep bailing after week one! These are all things to think through if you find yourself in an unhappy situation. But do bear in mind that there are other considerations. You won’t be as happy, fulfilled, challenged, or productive at an unfulfilling job. Getting out now, once you can see the unpleasant future spilling out before you, might just save both you and your boss a lot of trouble and mental waste.If you do decide to quit, be absolutely sure before you do. That’s the most important factor in deciding whether to breach decorum and cut your losses before you’ve even gotten situated in a new position. The second most important thing is to exit gracefully.Here’s how:Resign tactfully.Don’t burn any bridges. Do what you can to keep these contacts. And do it in person. This is not the time for letters or emails (though you should have a formal resignation letter ready to go after you meet to discuss with your boss). You owe it to your supervisor to explain why you are bailing- particularly after so much joint effort to get you on board.Be honest and apologetic.Don’t make weak  excuses that you think will make your boss feel empathy for you. Give the real reason, or the closest to it you can get, and still remain tactful. Be genuinely sorry for the inconvenience, and pivot to showing how this is best for the company and y our quitting is actually something of a selfless act. If you’re the wrong fit for this job, it’s your moral duty to speak up and say so before wasting time and resources.Give proper notice.You’ll want to do this with plenty of time for them to find someone else. You should even offer, if at all possible, to stay until they find and train your replacement. This could be great for you if you don’t have an alternative job lined up- use the time to find another one! Remember, you are inconveniencing them, and should behave accordingly.Consider that you might be asked to stay.In most cases, you’ll be given a bunch of reasons to stay. Ask yourself before you speak to your boss whether there are any conditions that, if changed, would make you actually want to stay. Have an answer prepared either way.Think harder next time.Don’t beat yourself up. But do let this be a lesson that you should really consider all angles of a new job before accepting it. Saving yourself the embarrassment and a whole lot of extra uncertainty and work.

Oil controling the world Essay Example | Topics and Well Written Essays - 1500 words

Oil controling the world - Essay Example Whether they can't, or they simply don't want to, remains a matter of speculation. (NICOLA, 2008) The battle for energy is shaping many conflicts of the present century, and those of future, but soaring oil prices not only have an impact on industrial production, but pose a greater threat to the end consumer and economy at large by have indirect effects on food prices, global industry, travel expenses, famine as more and more land is used to grow bio fuels and world food production is decreasing, the list can be endless. 'Unlike the previous oil shocks, which were more and less blamed on the imbalance between demand and supply, the current rise in oil prices is more complicated than just instability of demand and supply. So if one probes into the factors that have played a part in rising oil prices, one comes to a conclusion that there are a number of reasons ranging from a weak dollar to tensions between the U.S. and Iran. At the heart of the problem, though, is the fact that global demand is currently outstripping global supply. Countries such as China and India are thirsty for oil to fuel their economic growth, yet the world's oil-producing regions are producing less oil. In Nigeria, tensions in the Niger Delta region have curtailed production by nearly a million barrels a day. Fears of war between the U.S. and Iran, one of the world's biggest oil producers, have driven up prices further. And some of the world's major oil fields, the Cantarell Field in Mexico, for instance, are yielding disappoin ting amounts of crude oil this year, for geological, not geopolitical reasons.' (Weiner, 2007) HIGH OIL PRICES: THE WINNERS AND LOOSERS OF THE GAME In the political game revolving around the rise and fall of oil prices, there are some profit makers, while some are at the losing end. While it is obvious that the oil companies must be making huge profits, owing the fueling demand and high prices, it is the companies that specialize in withdrawing crude oil, who are the major profit holders. 'Exxon-Mobil, the world's largest publicly traded oil company, recently reported a profit of $9.4 billion. Impressive, more money than any publicly traded company has made in U.S. history.' (Weiner, 2007) 'The traditional big-oil producers, such as Saudi Arabia, Kuwait and other Persian Gulf nations, but also relative newcomers to the oil game, such as Kazakhstan and other nations that border the oil-rich Caspian Sea. Iran, Russia and Venezuela are also big winners. Higher oil prices might embolden leaders of those nations to play a more assertive role on the world stage and, in the case of Iran, deflect international pressure to dismantle its nuclear program.' (Weiner, 2007) 'At the losing end is any nation that is a net importer of oil, such as the U.S. and most European nations. The European pain, however, is blunted by the strong Euro and Europe's fuel-efficient transport systems. China is another loser. It's appetite for oil is seemingly insatiable, and it's already paying more for that addiction. India is potentially even more vulnerable: It uses less oil than China but imports 70 percent of it, compared with 50 percent for China.' (Weiner, 2007) ECONOMIC COSTS OF HIGH PRICES Recently, oil prices have leaped over $135 per barrel over night,

Self reflection Term Paper Example | Topics and Well Written Essays - 750 words

Self reflection - Term Paper Example In the course of the work of the group, there are things that went well and served as our strengths. There are also things that did not go so well and affected our decision-making pitfalls. The interactions with group members also brought about a lot of lessons that have been learned and skills that have been acquired. The reflection makes all these strengths, weaknesses, skills gained, and the approach for future practice known. A major strength of the group work was our approach to work. This is because as group we believed in the power of team spirit and so did everything in a consultative manner. As part of the consultative approach, everyone contributed with their ideas and these ideas were always brainstormed among the larger group to identify the most applicable and feasible ones for implementation. In effect, everything that came out as the final product was a representation of the group’s collective idea rather than the imposition of the views of a few people. This approach ensured that things went well and that things were very smooth and easy for us. Another thing was that there was equal division of the group’s work so that each person would become an active member of the group since passiveness limits the growth of teamwork (Freire 32). Even more, there was high level of efficiency as group members ensured that we avoided long meetings but rather use the little times we had product ively. As much as there were strengths, there were some weaknesses that the group faced. As indicated earlier, decision making was done at the group level through brainstorming activities, where everyone’s contributed counted. There were however some decision-making pitfalls and traps that we faced. For example the boldness to implement group decisions was always a challenge. As a result of this, it was common that we would out away our decision making to later dates in

Innovation Business Essay Example | Topics and Well Written Essays - 750 words

Innovation Business - Essay Example Energy: Global energy requirement is growing continuously notwithstanding the exhaustible nature of conventional sources like coal, oil and natural gas, or even in the face of growth of renewable sources like wind, solar, geothermal, tidal etc. This trend will get accentuated as mankind breaks the shackles of earthly existence, to routinely make interplanetary travel to colonize the outer space. In this scenario, conventional meaning of energy or its quantities will become obsolete. What could be the characteristics of such energy? The new form of energy may be something from within rather than without. For example, a person walks by the mere intention of walking, aided by muscular power. Can the intention or the mental power, which is limitless, be made more important than the limited muscular power? Mental power is inherent to living things and I forecast that we will discover something similar in non-living things as well, and follow it up by innovations to energize it in a limitl ess manner. Inner-city transport: Personal and public transport as we see today is unsustainable as a factor of growth. Millions of cars on the ever-expanding streets/highways, or rail-transport systems moving masses of humanity, cry for alternative solutions for people living in metropolitan cities like Los Angeles, New York, London, Tokyo and Shanghai. The expensive fuel that is being spent and the exhausting nature of travel just to get to somewhere is the rationale for innovative ideas for inner-city transport. I forecast that a system of point-to-point moving platforms will substantially reduce roads/vehicles in a way that will combine the convenience of private vehicles and sustainability of public transport. Water: Water in oceans and other saline waters make up for the bulk of global water constituting 97.5% while only 1% of all the water on earth is fit for use by humans, according to the US Geological Survey; of this 1%, groundwater is 99% balance being surface water in la kes and rivers (n.d. web, USGS). Thus potable water is one of the very scarce but vital resources of earth, seriously impacting millions of people. As pointed out by USGS, the earth is a practically closed system, neither losing nor gaining any matter including water (ibid.). This natural phenomenon makes me forecast innovative recycling of the entire quantity of water that we use, at individual household level rather than the present practice of wastewater treatment and discharge by municipalities. Q.2 Threat of substitution GE’s innovative diamonds from coal are substitutes for DeBeers natural diamonds who enjoyed virtual monopoly in diamond trade till now. This situation changes the industry competition to oligopoly. Pure oligopoly markets are characterized by a few players producing identical products while in differentiated oligopoly, product features, styling, service etc. differ. GE’s synthetic diamonds are more economical and as the CEO of DeBeers, I can only m eet this price challenge by significantly reducing/destroying the profitability of the industry. Further more, there is no guarantee that GE’s success is not repeated by another firm with equal technical and financial clout, although there are not likely to be too many competitors of GE’s stature. Hence, price is not the weapon of combat. In the normal course, a customer perceives value of his purchase in terms of

Effective Management of Training and Development in an Economic Essay

Effective Management of Training and Development in an Economic Downturn - Essay Example Layoffs are among the most common and popular measures that have been taken up by firms as a part of their cost cutting activities. Recessionary periods are also characterised by unavailability of credit to firms as governments are forced to reduce liquidity in the market owning to high levels of inflation. Banks are forced to cut down on their lending activities which lead to unavailability of credit. In such situations firms are forced to cut down on production which leads to job cuts. The preset financial crisis saw the downfall of many corporate giants like Lehman Brothers and Bear Sterns and also saw large scale job cuts which left numerous employees jobless. In this aspect it becomes important for firms and employees alike to analyse and formulate effective measures that seek to help employees prepare survival strategies during such crisis periods. It has also been observed that employees who perform below the benchmark standards are first ones to get the pink slips. Hence it b ecomes essential for employees to have greater efficiencies so as to ensure job security. This aspect assumes significance for organizations as well as human resources are the most important and valuable assets for any organization. Presence of a talented pool of employees is very essential for organizations because it determines the competitive advantage for the firms. Recessionary periods are characterised by large scale competition leading to price wars. In this context it becomes significant for organizations to have a talented pool of employees which would help in generating better product features and greater efficiency in the product and services of the firm which would help organizations to maintain their competitive edge in the tough market situation. Training and development therefore assumes a major importance for both employees and organizations. The present study focuses on the aspect of training and development in

Swallows and Amazons Essay Example | Topics and Well Written Essays - 1250 words

Swallows and Amazons - Essay Example Most of these works discuss the sensitive and controversial themes such as drugs, teenage pregnancy, political events and physical attack and abandoned children. â€Å"An inevitable consequence of the way that children’s literature came in to being was that a certain restraint has been imposed on children’s writers in the realist condition when it comes to topics such as terror, politics and sex† ( Hunt, 1990). Middle of the nineteenth century is often regarded the golden age of children’s literature in English. During this period most of the children’s literary works gave emphasis to children’s happiness and imagination. Child adventures and wanderings were an inevitable part of child life in most of the European countries during 18th and 19th centuries. In this paper the researcher makes a comparative study about the use of realism and fantastic in three novels. Swallows and Amazons is the first book in a series of children’s books written by Arthur Ransom. In his novel Arthur Ransom demonstrates the world of adventure by the Walker and Blacket children. Analyzing the novel Swallows and Amazons a reader can find that the author depicts the most realistic dishonesty of childhood and the conflict between youthful imagination and reality. Critics notice that a reader can see the extensive features of both the characters and the events can be traced back to the events in the author’s life. Most of the places mentioned in the novel are the places where Ransom spent his childhood. The novelist has succeeded in creating a sense of reality and authenticity in his work. Middle part of the novel novelist gives the image of an unknown island and also a series of adventures which symbolizes the geographical explorations which happened in 15th and 16th century. The children reach an unknown island and they call it Wild Cat Island. Events of sailing, camping, fishing,

Rate of reaction Essay Example for Free

Rate of reaction Essay Apart from these few improvements I think the equipment and the method I used was an appropriate way of investigating how concentration effects the rate of reaction on an enzyme. A variable that I could try for an extra experiment is temperature. I could try increasing the temperature of the catalase to see if increasing the temperature has the same effect on an enzyme as it does with concentration. This would help me to see which variable, temperature or concentration has a greater effect on the volume of oxygen produced from the reaction of an enzyme. I am going to work out the rate of reaction from the average value of each of the concentrations of hydrogen peroxide. I will work out the rate of reaction for every 10 second from the average values by using my graphs. Reaction Rate for the concentration of   Reaction Rate for the concentration of 6%  cm3/s From looking at these calculations I can say that for all the concentrations of hydrogen peroxide the reaction rate was fastest at the start of the reaction. During the reaction the rate decreased and eventually the reaction stopped. I can explain this by using the lock and key model. This occurs because the catalase is breaking the particles of the hydrogen peroxide to form into oxygen. This causes the hydrogen peroxide to get used up as the catalyst can alter the rate of reaction without getting used up. This then leaves the catalase to react with no substance. Data Logging Data logging is another experiment I did to extend my experiment. I looked at the enzyme activity experiment in a different way. This time I used the same quantity of catalase and hydrogen peroxide but instead of measuring the volume of oxygen produced, I found out the temperature increase for each of the different concentrations of hydrogen peroxide. Method 1. Collect all equipment and set the experiment up 2. Wear safety glasses as you are using chemicals 3. Pour 25cm3 of each concentration of hydrogen peroxide into a measuring cylinder 4. Pour each concentration of hydrogen peroxide into three different polystyrene cups 5. Measure 1mm of catalase into three different syringes 6. Make sure that the end of the probe is touching the bottom of the cup and that the hydrogen peroxide is completely covering it 7. Inject all three of the catalase at the same time into each polystyrene cup 8. At the same time start the computer as you inject the catalase, to start of the measurement of the temperature, of the hydrogen peroxide 9. Watch how the computer measures the temperature for 2minutes as it transfers all the information into a graph 10. Stop the graph at 2 minutes and print out the results Conclusion From my results I can see that the 6% concentration of hydrogen peroxide has given of the highest temperature. This is because the concentration of 6% has many particles of hydrogen peroxide which will have a greater chance of colliding with the catalase. The concentration of 1. 5% and 3% has given of less heat causing a lower temperature. This is because they have less particles of hydrogen peroxide to collide with the enzymes. This result can be explained by the kinetic and collision theory. The increase in heat gave an increase in the kinetic energy. This means that there would be more collision between the hydrogen peroxide particles and the catalase, which would lead to a better chance of collision being successful. This experiment is related to my first experiment as the increase in concentration gave off more oxygen which gave us an increase in temperature. I found out that the 6% concentration gave of the most oxygen which causes a rise in temperature and the 1. 5% gave of the least oxygen causing a lower temperature. The 6% also gave off the most oxygen in the shortest time whereas the 1. 5% concentration gave off the least oxygen in the longest time. From looking at my graph I can see that the 6% concentration had the steepest slope which if I relate back to my rates of reaction theory. I can say that the steeper the slope the faster the reaction. The 1. 5% concentration had the smallest gradient which means it had the slowest rate of reaction. Overall this proves my original prediction, that the 6% concentration of hydrogen peroxide has the fastest rate of reaction and the 1. 5% concentration has the slowest. Reaction Rates During a reaction, reactants are being used up and products are forming. The reaction rate tells us how fast the reaction is taking place. You can calculate the reaction rate by measuring how much reactant is used up or how much product forms in a given time. Reaction rate = change in amount of a substance time taken The reaction rate can also be calculated by using a graph. The slope of the graph tells us how quickly the reaction is happening. The steeper the slope, the faster the reaction Results from the Trial Experiment Time (s) Volume of O2 evolved (cm3) 1. 5% Volume of O2 evolved (cm3) 3% Volume of O2 evolved (cm3) 6% Average I did a trial experiment to help me understand the experiment. The trial experiment showed me how quickly each concentration of hydrogen peroxide produced the amount of oxygen gas in one minute. I also learnt that slow pressure is needed with the small gas syringe because too much pressure causes the catalase to spill out. Results from the concentration of 1. 5% Time(s) oxygen evolved (cm3)oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) average. I am going to use columns 5,6 and 7 for my average because these columns have the nearest results to each other and the range of results are realistic. Results from the concentration of 3% Time(s) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) average 1 I will be using columns 4,5 and 6 for my average because these columns have the nearest results to each other and the range of results are realistic. Results from the concentration of 6% Time(s) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) oxygen evolved (cm3) average. I will use column 2,3 and 4 for my average because these columns have the nearest results to each other and the range of results are realistic. Time (s) Temperature (oC) 1. 5% Temperature (oC) 3% Temperature Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Patterns of Behaviour section.

Counterculture Analysis: Triads

Counterculture Analysis: Triads Caprian Kan What are countercultures? Countercultures are groups that reject the major values, norms, and practices of the larger society and replaces them with a new set of cultural patterns (Thomas). A counterculture found primarily in china, but also globally are the Triads. Initially, the purpose of the triad group started off as a patriotic movement, but later turned into a counterculture. Somewhere along their fight for patriotism the lines of justice blurred and the Triad groups turned to crime (Blundy). Origins of the Triad societies date back to the 17th century. Martial artists (Hung Muns) desired to restore the Ming dynasty so, they sought their solution by attempting to overthrow the Qing dynasty (Blundy). However, their coup ended in vain. According to the Wing Chun Kung-Fu Association this movement started because the Mings political and economic power began to wane through continuous border warfare. The Qing, former allies of the Ming, had grown so much political power that they controlled most of the provincial territories held by the former Ming Emperor. Remaining survivors of the Ming dynasty either fled or relocated in different provinces, especially for 5 youths: 4 boys and 1 girl that would train at Fukien Si Lum Temple. The five youths would later be known as the Five Elders of Sil Lum. The Five Elders secretly trained loyalists in the art of Kung-Fu, leading to the onset of secret notorious societies, which we now know as the Triads. During this time the Qing had an i ncreasing awareness of partisan attacks; soon thereafter, in their impatience, the Qing armies burned and destroyed monasteries and temples including the Sil Lum Temple. The Five Elders traveled in disguise after the destruction of the Sil Lum Temple for a year and a half however, discord grew among the elders and they soon fought each other. As frustration grew Jee Shin challenged Bak Mei to a martial arts duel, but in the end Jee Shin died. Shock rippled amongst the other elders, in fury, Mew Hin also fought with Bak Mei, but met the same fate as Jee Shin. Fung Doe Duk was next to challenge Bak Mei. Despite being closely matched Doe Duk delivered a compound fracture to Bak Meis foot which would later kill him. After the fighting, Fung Doe Duk and Ng Mui, the last remaining elders, parted on different paths to teach their own forms of martial arts; Ng Mui who would teach the Dragon-Tiger system (Wing Chun Kung-Fu Association). Practice of the crouched Dragon-Tiger system also led t o representation of one of the Triad symbols: the red dragon. Ethnocentrism is characterized by the belief or attitude that ones own group is superior (Mish). Ethnocentricity applies to the Triads because society (the norm) sees this group as a counterculture due to the type of relationship between the members and the type of rituals, rules, etc to make and maintain that relationship between one another. According to Rachel Blundy in the Law and Crime section of the South China Morning Post as groups started to form, members were expected to view each other as blood brothers. Significance of calling each other blood brothers led to the thought process that the bond between strangers was just like that of family if not superior because loyalty was both being given and received. This was augmented by the structure of hierarchy in the Triads; which, also led to the enforcement of rules, expectations, and conducts for each member to follow (Blundy). In the Illuminating Lantern, Nepstad wrote thata famous rule for new members was an initiation oath known as 36 oaths. During initiation each member would recite the 36 oaths, pledging their respect and loyalty only to each other and the Triad group. If, in any way, any of the oaths are broken then that member shall face punishment by 5 thunderbolts or a myriad of swords (Nepstad). Sacrifices are also apart of initiation ceremonies, a chicken is typically slaughtered and its blood is drained into a cup for drinking (Nepstad). If other cultures or people were to look upon this ceremony they would be disgusted, but this is how the Triads display and elicit ethnocentrism; through the strict rules of conduct, which is specifically stated in the oaths and their overwhelming rituals. Although this is not of the norm in in the culture of the larger society it is a practice that helps define the Triads as a counterculture and augments this practice as something that is common only to their culture and behavior. Cultural relativism is the belief that a culture should be judged by their own standards and not by the standards of other cultures (Thomas). In this case, although the Triads are a subculture they are better known as a counterculture because they reject the practices of the larger society and replaces them with a new set of cultural patterns by participating in criminal behavior. Due to an increase of Triad members there has also been a rise in criminal activities; Hong Kong has dedicated a police division specifically for Triads known as the Organized Crime and Triad Bureau in order to take care of this problem (Blundy). Three main Triad groups that have the largest amount of followers or influence, especially in Hong Kong, are Sun Yee On, 14K, and Wo Shing Wo (Blundy). In an estimated membership of 20,000 Triad members about 2000 would actually be active in criminal behavior (Nepstad). According to Blundy from South China Morning Post such behavior includes drug trafficking, which is a major source of income for the groups. Most of the drug being trafficked are opium, heroin, and cocaine. Other criminal activities that the Triad groups engage in are fraud, extortion, gambling, money, laundering, and prostitution (Blundy). In recent years Triad members have turned to credit card fraud, minibus concessions, call-girl rings, and computer software and CD pirating (Hays). Personally, I do believe that the Triads are a counterculture because cultures in todays society, although they vary, do not participate, in any way, in criminalist behavior like the Triads do. A general or main goal for the culture of the larger society is to have a career job, which helps provides a steady income. However, in the view point of cultural relativism the Triads are a counterculture that displays ethnocentrism because they have no jobs and they spend their free time participating in criminal activities to gain dirty money based on chances and risks while risking their First Amendment rights and liberty. Also, the fact that Triads are willing to risk their rights shows ethnocentrism because they have the belief that they are above the law. Whereas, lawful citizens would not be able to perform such actions because they value their rights and freedom. The Triad groups have been a counterculture since the start of the Qing dynasty to our present date; their actions that def ines them as a counterculture do not seem to be getting better if not worse and will continue their reckless, criminal behavior. References Blundy, Rachel. A Brief History of Hong Kongs Triad Gangs. 4 February 2017. Website. 5 March 2017. Hays, Jeffrey. Facts and Details: Triads and Organized Crime in China. April 2012. Website. 9 March 2017. Mish, Frederick C. Merriam-Websters Collegiate Dictionary: Tenth Edition. Merriam-Webster, Incorporated, 2000. Book. Nepstad, Peter. Triads. 15 March 2015. Website. 5 March 2017. Thomas, W. LaVerne. Sociology: The Study of Human Relationships. Austin: Holt, Rinehart and Winston, 2003. Book. Wing Chun Kung-Fu Association. History and Lineage: The Five Elders. 2004. Website. 6 March 2017. GOOD SAMARITAN ACT: MUNTINLUPA GOOD SAMARITAN ACT: MUNTINLUPA Chapter 1 Introduction People have different perception when it comes to generosity, some are selfish some are not and others are hesitant. For us nurses, we are obliged to help people in terms of their medical needs but how are we going to do that when we are not in the actual scene? When it comes to an accident, life and death is just a string apart and every second is very crucial to the victim. Here in the Philippines, any person who is around the crime scene is not allowed to help or to touch the victim if he is not a trained medical professional. The by-standers can only activate the emergency system for help and wait for the authorities response that is why survival rate drops. In other country, they are able to help victims of an accident without being afraid to be sued for any unintentional injury or wrongful actions that they commit in helping a victim. This is because they are protected by the Good Samaritan Law, it is a law that prevents a rescuer who has voluntarily helped a victim in distress from being successfully sued for wrongdoing. Its purpose is to keep people from being reluctant to help a stranger in need for fear of legal repercussions if they were to make some mistake in treatment (Devereaux, 2007). Statement of the problem The researchers will study the a number of medical professionals or those who have completed Red Cross training whom Good Samaritan Law may only apply. Specially, it seek to answer to the following questions: What is the profile of the health care professional in terms of: 1.1 Age 1.2 Sex 1.3Length of service 1.4 Civil status 1.5 Religion 1.6 Area of affiliation How do health care professionals perceived? 2.1 Perceived Severity 2.2 Perceived Barrier 2.3 Perceived Benefits 2.4 Cues to Action 2.5 Other Variables 2.6 Self Efficacy Does the profile of the respondents related to the perception of the good Samaritan Act? Hypotheses The researchers formulated the following hypotheses: H1: There significant relationship between perception and application of Good Samaritan Act. H2: The profile of the respondents differ from the application of Good Samaritan Act Significance of the Study The purpose of this study is to determine the significant relationship about the perception and the application of Good Samaritan Act of the Healthcare professionals practicing in the Philippines. This study may provide ideas and could view Healthcare professional belief about Good Samaritan Act whether this could provide improvement in medical and emergency cases. In Nursing Practice this may provide as help to develop their nursing skills and knowledge in providing first aids and basic life support. This study could benefit clients by giving information and knowledge which can be obtained through out the research process and by the end of the research. The clients could acquire knowledge and awareness about the Good Samaritan Act, their rights and the dos and donts of the Healthcare professionals. In Nursing Education this may impart knowledge to the people in nursing field about their duties and obligation in providing care to an emergency situation. This study could benefit students in giving information and knowledge about the Healthcare professionals belief on Good Samaritan Act and as well as the Act itself. It is also beneficial for students to give importance to any person that they will render help to know there is obligation that to be careful. The students could also have a chance to relate this research to their education. This study could benefit the Nursing practice through proper acknowledgment how to respond in emergency cases and its implication. Future Nursing Researchers may also be benefited by this study as it may be a reference material for further studies. Scope, Limitations, and Delimitations This study was intended to discuss Good Samaritan Act in medical fields. The researchers will focus their investigation on the survey of the health care professionals belief and application with regards to Good Samaritan Act in Muntinlupa City. This study was confined to Healthcare Professionals particularly Registered Nurses, Physicians, Midwives and Red Cross Volunteers regardless of age, sex and race. The researchers focused on the applications and beliefs of the healthcare professionals in practicing Good Samaritan Act with regards to their exposures to different hospitals and community particularly in Muntinlupa City. Individuals may feel the need to present themselves in a more socially acceptable light, and may report to be more informed than they really are. Thus, the findings of this study rely solely on the respondents responses. This study is not applicable to those who are Undergraduate, Medical Technologists, Pharmacists, Dentists, Psychologists and other non healthcare professionals. Conceptual Framework Figure 1. The Paradigm shows the flow of the Profile of Health Care Professional and the Perception of Good Samaritan Act. This relationship is enclosed with a square figures. The relationship is viewed as continuous. Continuous block process was used to show a progression or sequential step in a task, process or a workflow. The first box is about the profile of healthcare professional, the middle box is the process of input and output , and the last box is about the perception of it. Each box can influence and be influenced by other box of the diagram. The continuous process of the box, is the beginning of the analysis of the perception of the Health Care Professional and Good Samaritan Act. Definition of Terms The following terms were define conceptually and operationally in relate to the study. Affiliation- A person, organization, or establishment associated with another as a subordinate, subsidiary, or member. 1 Age- The length of time that one has existed or simply the duration of life. 2 Application of Good Samaritan Act- The act of directing or referring something to a good Samaritan act to discover or illustrate agreement or disagreement, fitness, or correspondence. 3 Consent- To consent means to give approval and to agree by free will. Both parties must be fully conscious and have clearly communicated their consent and in the end signed a legal document. 4 Emergency medical services These are services dedicated to providing out-of-hospital acute medical care and/or transport to definitive care, to patients with illnesses and injuries which the patient, or the medical practitioner, believes constitutes a medical emergency. 5 First Aider- First aiders are the one who gives initial care to an illness or injured person. It generally consists of a series of simple and in some cases, potentially life-saving techniques that an individual can be trained to perform with minimal equipment. 6 Good Samaritan Act- laws or acts protecting those who choose to serve and tend to others who are injured or ill. They are intended to reduce bystanders hesitation to assist, for fear of being sued or prosecuted for unintentional injury or wrongful death. 7 Health Care Professionals- Health care professional means a person who is legally competent to diagnose and/or treat the particular medical condition or conditions which are the basis of the accommodation request. 8 Liability- Means something that is a hindrance or puts an individual or groups at a disadvantage or something that someone is responsible for. 12 Midwives- A person, usually a woman, who is trained to assist women in childbirth. 9 Negligence- It is the quality of being negligent or a failure to act. It means that someone was careless and as a result of that someone was injured. 10 Obligation- The state, fact, or feeling of being indebted to another for a special service or favor received. A social, legal, or moral requirement, such as a duty, contract, or promise that compels one to follow or avoid a particular course of action. 11 Perceived Benefits- Something that promotes or enhances well- being; an advantage that an individual may received. 16 Perceived Barriers- Anything that prevents or obstruct passage, access, or progress. 172 Perceived Severity- The act or an instance of severe behavior, especially punishment. 13 Physicians- A physician is a person who has studied in the medical field. They are educated and taught to take care of patients in a certain field or specialty. A person licensed to practice medicine. 14 Registered Nurses- A registered nurse is a licensed nurse who works in hospitals and doctors offices assisting patients. 15 Self Efficacy- Variety of ways; as the belief that one is capable of performing in a certain manner to attain certain goals. 16 Volunteers- It is an individual willing to sacrifice his/her time under international humanitarian organization which aim is to protect the human life and health without any discrimination based on sex, nationality or race. 17 Notes 1. Gulam H, Devereaux J (2007). A brief primer on Good Samaritan Law for health care professionals 2.http://chcr.umich.edu/how_we_do_it/health_theories/healththeories2/chcr_document_view Chapter II CHAPTER 2 Review of Related Literature and Studies This chapter presents a review of related literature and studies which helped the researchers pursue the study. Foreign Literature: The Good Samaritan law is not found on the statute books, but has been a concept that courts have applied as public policy. However, this has recently changed in all the states and territories in Australia with the codification of Good Samaritan law. This paper is a timely reminder for health practitioners of the doctrine of the Good Samaritan, as well as the relative legal uncertainty of rescue at common law. The doctrine of Good Samaritan is a principle that works to prevent a rescuer who has voluntarily assisted a person in distress from being successfully sued for a wrongdoing. Despite no case law directly addressing the liability of a health care professional for failing to render assistance in a Good Samaritan situation, there are medical practitioners being found liable for damages and/or guilty of professional misconduct for failing to respond to requests for assistance. There has been no known case where a Medical practitioner (or health care professional) has been held liab le for providing emergency care in good faith to a stranger. The codification of the doctrine of Good Samaritan law in the various jurisdictions in Australia goes some way towards providing protection from legal action for those persons (including health care professionals) who act in good faith to assist those in danger. There is no doubt that this legislative codification is a social good we must be willing to help others who are injured or in distress, without risk to ourselves, including from a legal perspective. 1 Most Good Samaritan statutes rely on the concepts of ordinary negligence and gross negligence. Ordinary negligence means that the individual providing aid did not act as a reasonable health care provider would under similar circumstances. Contrast that with gross negligence, which generally means not only that the individual did not conform to the accepted standard of care, but also that his or her actions rose to the level of being willful, wanton or even malicious. Although there has never been a successful case against a physician who claimed Good Samaritan protection after providing emergency care outside a hospital, many physicians feel concerned about the legal consequences that might befall them in these situations. The fact is that all 50 US states have some type of law that seeks to encourage medical professionals to act as Good Samaritans by offering certain protections. 2 What can be said about what nurses ought to do in terms of truth telling and caring? The essence of caring, at least in this article, is found in the story of the Good Samaritan. Nurses care when they are present with another with a closeness that evokes compassion. Hence, the caring nurse is focused on the other so that the others welfare is paramount. This other regardingness to which the caring nurse gives precedence means becoming emotionally involved to an extent that the nurse strives to be like the Samaritan. Nurses ought to respond in a caring way that is reasonable rather than exact. Strict adherence to a principle or rule of obligation may mean acting in a way that is indicative of the holy men, as described in the parable of the Good Samaritan. A caring nurse responding virtuously acts by being compassionate, which may mean for a time accepting the prima facie nature of the rules or principles of truth telling. 3 Although there has never been a successful case against a physician who claimed Good Samaritan protection after providing emergency care outside a hospital, many physicians feel concerned about the legal consequences that might befall them in these situations. The fact is that all 50 US states have some type of law that seeks to encourage medical professionals to act as Good Samaritans by offering certain protections. The purpose of this article is to explain the basics of these laws, as well as physicians ethical duties, so that when they encounter opportunities to act as a Good Samaritan, they will have a better understanding of what theyre getting into. The odds of being successfully sued for malpractice as a result of providing Good Samaritan care are stacked well in their favor, so much so that the fear of litigation should not be a factor in their decision about whether to help when the situation presents itself. 4 Random acts of kindness are always impressive. They let people know that there are good people in the world who care about others. Good deeds also give a sense of security; they tell that everyone lives in a world where at least people look out for others. People helping other people is what any civilized society is all about. If you do your share selflessly, the world would be a better place. Helping others is a sign of strength and decency and it is what makes one a better person. 5 Foreign Studies: Global Good Samaritans looks at the reasons why and how some states promote human rights internationally, arguing that humanitarian internationalism is more than episodic altruism-it is a pattern of persistent principled politics. Human rights as a principled foreign policy defies the realist prediction of untrammeled pursuit of national interest, and suggests the utility of constructivist approaches that investigate the role of ideas, identities, and influences on state action. Brysk shows how a diverse set of democratic middle powers, inspired by visionary leaders and strong civil societies, came to see the linkage between their long-term interest and the common good. She concludes that state promotion of global human rights may be an option for many more members of the international community and that the international human rights regime can be strengthened at the interstate level, alongside social movement campaigns and the struggle for the democratization of global governance. 6 The Good Samaritan and the registered nurse both respond in a manner that is fitting. This caring response, as an ethic of the fitting, acknowledges that rules alone do not guarantee the most ethically justifiable outcomes. Rather, within this ethic of the fitting, at times the nurse ought to respond with a sense of compassion that befits the moment rather than adhere to a rule at all costs. The holy men in the parable of the Good Samaritan concern themselves with the external goods of policy and status. In subordinating themselves to the external goods, they care less. However, the Samaritan recognizes what is due to a fellow human being and takes action to alleviate anothers suffering. It is clear that the caring depicted here is founded on the virtue of compassion. Hence, the caring nurse is focused on the other so that the others welfare is paramount. This other regardingness to which the caring nurse gives precedence means becoming emotionally involved to an extent that the nurs e strives to be like the Samaritan. Nurses ought to respond in a caring way that is reasonable rather than exact. Strict adherence to a principle or rule of obligation may mean acting in a way that is indicative of the holy men, as described in the parable of the Good Samaritan. A caring nurse responding virtuously acts by being compassionate, this may mean for a time accepting the prima facie nature of the rules or principles of truth telling. 7 Benjamin S. Abella, MD, MPhil, Clinical Research Director of Penns Center for Resuscitation Science and Assistant Professor of Emergency Medicine, says bystanders can play a critical role in saving lives by performing cardiopulmonary resuscitation during the 150,000 cardiac arrests that occur each year outside of hospitals in the United States. Studies show that only 15 to 30 percent of sudden cardiac arrest victims receive bystander CPR before emergency personnel arrive, Abella says. But chances for survival plummet as minutes tick by without any blood circulating through the body. Early bystander CPR, however, doubles to triples survival rates. 8 Notes Hyder Gulam, John Devereux. Australian Health Review. Sydney: Aug 2007. Vol. 31, Iss. 3; pg. 478, 5 pgs Robert J Dachs, Jay M Elias. Family Practice Management. Leawood: Apr 2008. Vol. 15, Iss. 4; pg. 37, 4 pgs Anthony Tuckett, NURSING PRACTICE: COMPASSIONATE DECEPTION AND THE GOOD SAMARITAN Robert J Dachs, Jay M Elias. Family Practice Management. Leawood: Apr 2008. Vol. 15, Iss. 4; pg. 37, 4 pgs Charles S Lauer. Modern Healthcare. Chicago: Sep 13, 2004. Vol. 34, Iss. 37; pg. 30, 1 pgs .Alison Brysk, Global Good Samaritans:Human Rights as Foreign Policy 7.http://proquest.umi.com/pqdweb?index=9did=800156321SrchMode=1sid=11Fmt=6VInst=PRODVType=PQDRQT=309VName=PQDTS=1278353293clientId=72710 8.http://www.news-medical.net/news/2008/01/15/34307.aspx Chapter III Survey Questionnaire for Health Care Professionals with Completed Red Cross Training The researchers are conducting a study on Health care Professionals with completed Red Cross Training in Muntinlupa City about their perception on Good Samaritan Act. It will measure the respondents perception about Good Samaritan Act and the extent of their knowledge about this and their application. To enable the researcher to make the necessary conclusions and recommendations for this study, it would be very much appreciated if you answer all the items in this questionnaire. Information given will be treated in strictest confidence. Thank you, Part I: Name :____________________________( optional) Age: [ ] 20-25 [ ] 36-40 [ ] 51-55 [ ] 26-30 [ ] 41-45 [ ] 56-60 [ ] 31-35 [ ] 46-50 [ ] 61 and above Gender: [ ] Female Civil Status: [ ] single [ ] Male [ ] married [ ] widowed Religion: [ ] Roman Catholic [ ] Baptist [ ] Christian [ ] Protestant [ ] Muslim [ ] others: __________ Location of Affiliation: [ ] public [ ] private [ ] hospital [ ] clinic [ ] health center [ ] self employed Part II: ALWAYS SOMETIMES OFTEN TIMES SELDOM NEVER If you see a patient in critical condition, are you willing to help? Do you prefer in helping a victim with a higher survival rate than those who is more critical? Do you expect anything in return for your help? Do you believe that Good Samaritan act will improve persons survival in emergency case? Do bystander is a hindrance in helping in an emergency situation? Do you feel nervous when there is an emergency situation? Is the gender of the victim contributes to be a rescuer when there is an emergency situation? Are you willing to help whenever there is an emergency situation? In rendering care, do you prioritize your safety before doing such actions? Does your mood affect your ability in rendering care to a victim? Does the place of the emergency affect you in rendering help? Are you prepared in an emergency situation? Do you believe that you are well equipped? PART III ALWAYS SOMETIMES OFTEN TIMES SELDOM NEVER Do you prefer to help a family member or friend when there is an emergency situation? Is there a difference in level of care in rendering a help to a relative and to a mere stranger? Do you secure consent before rendering care? Does a consent form will excuse you for being liable to your actions? In case of an emergency, are you willing to help those in need? Are you willing to help a victim without expecting anything in return? Does the place of the emergency affect you in rendering care? Do you secure your safety when rendering help? Do you familiarize yourself in the laws applied in the area of emergency case? Do you apply your actions in rendering help from the statue of constitution? PART IV: ALWAYS SOMETIMES OFTEN TIMES SELDOM NEVER Do you apply your health beliefs in giving care? Does your belief affect your application of rendering care? PART V: ALWAYS SOMETIMES OFTEN TIMES SELDOM NEVER Does the competency of a health care provider deteriorate as aged? After a long period of rest in practising, does the competency of a health care provider deteriorates?

Daddy Yankee :: essays research papers

Daddy Yankee With over 15 years of upward growth in the entertainment industry and the Latin music scene, Daddy Yankee has developed to be one of the most respected and influential reggaeton artists. Yankee’s carefully crafted lyrics and his free-style abilities have allowed him to share his views and reach the masses, regardless of his intentions. From love to socially-saturated comments on the everyday Puerto Rican culture, many of his songs have remained solid in the club scene and are considered reggaeton classics. Daddy Yankee’s constant focus and rapid development have allowed him to collaborate with artists such as NAS (they recorded â€Å"The Profecy† together) and a track with mix tape legend and acclaimed Dj Tony Touch for his â€Å"The Peace Maker† album. Daddy was also invited for a cameo appearance in Terror Squad’s video â€Å"100% Percent† while his â€Å"Posicion† track was also included in â€Å"One Tough Cop† soundtrack. Without a doubt, Daddy Yankee's record sales confirm his success and popularity within Latin Music. All of his albums, "El Cartel de Yankee"; "El Cartel de Yankee II"; "El Cangri.com" and "Los Homerunes", have all received platinum status. In 2002, â€Å"El Cangri.com† was the biggest selling album in Puerto Rico, his hometown and one of the most prestigious markets within Latin Music. 2003 was one of the most important years in Daddy Yankee’s career. Shortly after â€Å"Los Homerun-es† album achieved record-breaking sales, one his life-long dreams came true†¦ a full house (12,000+) danced along with him in Puerto Rico’s historic Roberto Clemente Coliseum. The fans went wild as the press acclaimed his ability to bring the house down with his outstanding ability to free-style and his energetic stage performance. The show titled â€Å"Ahora Le Toca Al Cangri† quickly turned into Yankee’s most important and a historic moment in reggaeton music. Without a doubt, his fan’s support along with his personal desire to share his vision with upcoming artists have been key in his development as â€Å"El Cangri’s Inc.† and â€Å"El Cartel Records† founder and lead producer. Currently, Daddy Yankee has been touring Latin America and The United States gathering thousands of fans in each region. Just recently in Colombia, Yankee performed in front of over 60,000 screaming fans. Also, his energy and dedication to his career have allowed him to record over 130 tracks in as many as 70 feature reggaeton albums. Finally, in July of 2004, arrives Barrio Fino, the most anticipated album launch in Reggaeton music. Daddy Yankee :: essays research papers Daddy Yankee With over 15 years of upward growth in the entertainment industry and the Latin music scene, Daddy Yankee has developed to be one of the most respected and influential reggaeton artists. Yankee’s carefully crafted lyrics and his free-style abilities have allowed him to share his views and reach the masses, regardless of his intentions. From love to socially-saturated comments on the everyday Puerto Rican culture, many of his songs have remained solid in the club scene and are considered reggaeton classics. Daddy Yankee’s constant focus and rapid development have allowed him to collaborate with artists such as NAS (they recorded â€Å"The Profecy† together) and a track with mix tape legend and acclaimed Dj Tony Touch for his â€Å"The Peace Maker† album. Daddy was also invited for a cameo appearance in Terror Squad’s video â€Å"100% Percent† while his â€Å"Posicion† track was also included in â€Å"One Tough Cop† soundtrack. Without a doubt, Daddy Yankee's record sales confirm his success and popularity within Latin Music. All of his albums, "El Cartel de Yankee"; "El Cartel de Yankee II"; "El Cangri.com" and "Los Homerunes", have all received platinum status. In 2002, â€Å"El Cangri.com† was the biggest selling album in Puerto Rico, his hometown and one of the most prestigious markets within Latin Music. 2003 was one of the most important years in Daddy Yankee’s career. Shortly after â€Å"Los Homerun-es† album achieved record-breaking sales, one his life-long dreams came true†¦ a full house (12,000+) danced along with him in Puerto Rico’s historic Roberto Clemente Coliseum. The fans went wild as the press acclaimed his ability to bring the house down with his outstanding ability to free-style and his energetic stage performance. The show titled â€Å"Ahora Le Toca Al Cangri† quickly turned into Yankee’s most important and a historic moment in reggaeton music. Without a doubt, his fan’s support along with his personal desire to share his vision with upcoming artists have been key in his development as â€Å"El Cangri’s Inc.† and â€Å"El Cartel Records† founder and lead producer. Currently, Daddy Yankee has been touring Latin America and The United States gathering thousands of fans in each region. Just recently in Colombia, Yankee performed in front of over 60,000 screaming fans. Also, his energy and dedication to his career have allowed him to record over 130 tracks in as many as 70 feature reggaeton albums. Finally, in July of 2004, arrives Barrio Fino, the most anticipated album launch in Reggaeton music.

Physics of Incandescent Light bulbs :: physics light bulb

The incandescent light bulb, since its fairly recent invention, has quickly become a basic essential of modern technological life as we know it. It took many years to create an practical bulb despite the simplicity of its structure. I believe a majority of us take them completely for granted as a normal part of life. Early man knew the sun as his lightsource and when the sun set, he knew the moon and the stars. As his intelligence increased and he learned about the world in which he lived he became associated with fire. Fire could be used for warmth, cooking, protection, and light. Man lived with this for years, elaborating and improving the way the fire was created and burned for light, until the year of 1809 when one man, an English chemist by the name of Humphrey Davy began the search for a usable incandescent light source using electricity. Using a high powered battery to induce a current between two high powered strips he produced an intense incandescent light, which became known as the first arc lamp. Although it was a first step it was not yet a practical light source. The first known attempt to make a actual bulb didn't come until 1920 when Warren De la Rue enclosed a coil of platinum wire in an evacuated tube and passed an electrical current through it. Although a platinum light bulb was not practical the idea behind his design was. A metal with a high melting point to achieve high temperature and thus bright light, as well as an evacuated tube that contained less particles to react with the metal and thus an elongated bulb life. Throughout the next few decades scientists labored to create their "efficient" light bulb. Their main hurdle was finding a low cost, long lived, high temperature filament material that would glow with high intensity. In 1879 two scientist, Joseph Wilson Swan and Thomas A Edison, had independent breakthroughs for a longer lasting incandecent bulb with their use of a carbon fiber filament derived from cotton. It lasted a maximum of 13.5 hours. In 1880 Edison also developed a filament derived from bamboo which lasted up to 1200 hours. This was good, but to create a truly efficient bulb something different was need to creae a filament with very high temperatures but without degeneration and loss of heat. Many elements were experimented with, a few of the most popular which were carbon, osmium, and tantalum.

Innovations in water conservation and treatment Essay

Water recycling and treatment is very essential today since fresh water scarcity can be felt in many parts of the globe; conservation of water is really needed. What is â€Å"grey water† and how could it be useful to us? Include comments about â€Å"purple pipes† in this discussion. Grey water is wash water or any water used at home such as from dish, shower, sink, and laundry. Grey water does not include water that comes from toilets wastes and garbage grinders which is called black water. Not any of the sources of grey water contains disease organisms found in waste water. Grey water has fifty to eighty percent of inhabited waste water, can be reused for other purposes, especially in land irrigation. (Ludwig 2007) First, we should know the distinctions between grey water and black water in order for us to understand fully how to manage them and why they should not be mixed together, for environmental security as well. In combined waste water, toilet wastes have ninety percent of Nitrogen, which is the most alarming and not-easily-removed pollutants affecting the prospective drinking water supply, while grey water holds about ten percent only, which is mostly organic so animals can still use it when filtered. Human pathogens can be found significantly in feces according to health professionals. Since black water has more pathogens contained, toilet wastes should be kept out of waste water stream to radically reduce the risk of spreading such organisms through water. Lastly, grey water pollutants decompose quicker than that of the black water which implies a more rapid stabilization and prevention of water pollution. (Lindstrom 2000) Plants doesn’t necessarily need to thrive on pure drinking water, it would be a waste to do so since they can actually be flourished with used water with small bits of compost. Grey water reuse is one of the essential solutions to many environmental threats and will basically remain in the up coming generation. How can grey water be useful to us? What are its benefits? First, fresh water can be conserved because grey water can replace it in many purposes, increasing effective water supply in irrigation sites and at the same time money is also saved. Secondly, reuse of grey water causes less strain on septic tank or treatment plant, extending its capacity and existence. For the local government, if wastewater flow decreases the effectiveness of the treatment becomes higher, while lowering its costs. Also, grey water protects the quality of natural surface and ground waters, given that it is purified to an enormously high level in the upper, most organically active region of the soil. Moreover, energy and chemical use will lessen because instead of undergoing a treatment and pumping, wastewaters are being used for some other purposes. The use of grey water for plants revives groundwater. Besides it also facilitates a landscape to boom even if there is no enough water to support a large amount of plant growth. Erosion can take place when there is loss of nutrients through wastewater disposal in bodies of water, however the cultivated nutrients in grey water helps maintain the fertility of the land. Lastly, it takes account in yielding the awareness of the sensible husbandry of a significant resource. (Ludwig 2007) Purple pipes in the ground are used for irrigating plants and many other purposes but not for drinking. Indirect recycling of wastewater is better than using alternative water supplies such as purple pipes because it requires less effort to install, maintain and employ. It is also less costly. Indirect water recycling would benefit everyone, not just those areas serviced by purple pipes. (Queensland Government 2006) What is â€Å"desalinisation†? In your answer, include discussions of â€Å"reverse osmosis† and one other method of desalinization. Be sure to include the pros and cons of the methods discussed. Today, approximately only one percent of the Earth’s water is fresh; the oceans are being utilized to supplement the supply of fresh water. Desalination (also called desalinization) is the process of purifying seawater or brackish water, removing dissolved solids from water, to obtain a safe and clean drinking water. Method of desalination fall under two major categories: the thermal (evaporative) methods and the membrane based methods. (Gold Coast 2004) The membrane methods involve the use of force against salts or water through a synthetic membrane. Some examples of processes include electrodialysis, reverse osmosis, and nano-filtration. Reverse osmosis (RO) forces water through a membrane under external pressure to reverse natural osmotic flow. Water flows from a more intense saline solution as pressure is applied through the semi-permeable membrane. The remaining feed water that hasn’t passed the membrane yet will increase its salt concentration. The pressure at the surface of the membrane is increased to eliminate some feed water to prevent precipitation of supersaturated salts. Pretreatment, includes fine filtration and accumulation of acid or other chemical substances to restrain precipitation, is vital to prevent precipitation of salt and formation of microorganisms on the membranes. RO is considered as the most proper and suitable technology for desalination of seawater for drinking because it can remove chloride salts, pathogens and other contaminants. (Advameg Inc) One advantage of using membrane method is that it requires less energy than using thermal method, which consumes a large amount of heat energy to be able to perform evaporation. Moreover it has a lower visual impact. Nevertheless, some disadvantages include membranes are sensitive to feed water which may cause scaling and fouling. These methods also require a high level of pre-treatment. The efficiency and costs of the procedure is reliant on the salinity of feed water. (Gold Coast 2004) In thermal methods, the water will be subjected to evaporation leaving salt behind in concentrated brine. Then, it will be condensed in order to provide roughly pure water. Common processes include heat distillation, multi-stage flash, multi-effect distillation, mechanical vapor compression, and thermo-compression distillation. For example, in heat distillation, large amount of heat is being used to refine fresh water from sea water. Derived from the natural hydrologic cycle, whereas seawater is heated, water vapors are produced, and then condensed to form fresh water. In desalination plants, seawater is being subjected to large amount of heat to meet its boiling point to tolerate maximum vaporization. To make this process possible, the atmospheric pressure is being decreased to lower the boiling point of the seawater. With a lower boiling point, multiple boiling can be done using lower energy requirement and the rate of carbonate and sulfate scale productions on the equipment is being controlled. (Advameg Inc) The advantages of using thermal methods are the following; the systems are tough and insensitive to feed water quality variations, the energy efficiency is not affected by salinity levels, and lastly it produces a high quality of water. Some disadvantages include intensive energy required and high visual impact. (Gold Coast 2004) There are still many other methods that are being developed by the different sectors, whether private or governmental, in order to conserve fresh water and recycle the wastewater to make every drop useful and productive. These innovations would play a very important part in the long run; it can solve the problems regarding water shortage and scarcity all over the world. Everyone will benefit. References: About, Inc 2007, What is Reverse Osmosis? Available from: [19 September 2007]. Advameg Inc 2007, Desalinization. Available from: < http://www. waterencyclopedia. com/Da-En/Desalinization. html> [19 September 2007]. Alaska Department of Environmental Conservation June 1993. , FactSheet: Wastewater Recycling Systems. Available from: [19 September 2007]. Bynum, J April 9, 2007, Purple Pipes: The New Government Bio-Terrorism Threat. Available from: [19 September 2007]. City of Roseville 2007, Recycled Water. Available from: [19 September 2007]. Ecological Internet 2007, World Running Out of Water. Available from: [19 September 2007]. EcoWorld Inc 2007, The Global Environmental Community. Available from: [19 September 2007]. General Electric Company 2007, Desalination. Available from: [19 September 2007]. Gold Coast November 2004, Desalination. Available from: [19 September 2007]. HighBeamâ„ ¢ Research, Inc. 2007, New Desalinization Processes Could Solve World’s Water Shortages. Available from: < http://www. highbeam. com/doc/1G1-56846829. html> [19 September 2007]. Ludwig, A 2007, Grey Water Central. Available from: [19 September 2007]. Lindstrom, C 2000, Grey Water. Available from: < http://www. greywater. com/> [19 September 2007]. Movable Type Enterprise n. d. , Insane in the Membrane. Available from: < http://blogs. princeton.edu/chm333/f2006/water/02_desalination/01_reverse_osmosis/> [19 September 2007]. Movable Type Enterprise n. d. , Global Clean Water Crisis. Available from: [19 September 2007]. Movable Type Enterprise n. d. , Making Every Sip Count. Available from: [19 September 2007]. Movable Type Enterprise n. d. , Sewage and Such. Available from: [19 September 2007]. Movable Type Enterprise n. d., The Global Water Crisis: Our Inevitable Fate? Available from: < http://blogs. princeton. edu/chm333/f2006/water/02_desalination/> [19 September 2007]. Movable Type Enterprise n. d. , Water Quality. Available from: [19 September 2007]. Movable Type Enterprise n. d. , Water Crisis in Developing Countries. Available from: < http://blogs. princeton. edu/chm333/f2006/water/05_international_issues/ >[19 September 2007]. Queensland Government May 2006, South East Queensland Regional Water Supply Strategy. Available from: [19 September 2007]. State of Victoria November 6 2006, Grey water – recycling water at home. Available from: [19 September 2007]. Water Innovations Inc. 2007, Water Innovations. Available from: [19 September 2007]. National Research Council, Review of the Desalination and Water Purification Roadmap.. Washington, D. C. : Nat’l Academies Press, 2004.

Prospects of Islamic Banking

Texts Articles Cases Internet References 3 Acknowledgment I would like to forward my utmost gratitude to a number of people, for their generous co-operation and assistance, in the course of preparing this monograph. Mr Howard Johnson for reviewing my thesis plan, Professor Bob Lee for his invaluable insight on Chapters 1-5 and finally Dr PaulBridges and Dr Simon Norton for their enlightening views on several issues. I dedicate my efforts to ‘Bhaijan’, who has always been the inspiration and my guide throughout my life. 4 Preface At present times, it would not be inappropriate to state that Muslims the world over face the dilemma that their religion, Islam, prohibits interest in stringent terms and aims at establishing an economy that is not only free from all forms and kinds of interest, but also from anything that bears any resemblance to it.The modern economy is heavily based and reliant on interest and it is hard to envisage any set of economic relations where interes t does not play a part, whether directly or indirectly. Resolving the above-mentioned contradiction seems to be a challenge that Muslim intellectuals, bankers, industrialists, businessmen, policy-makers and ordinary consumers face. In a nutshell, this monograph seeks to provide an analysis of the workings and practices of Islamic banking industry and the products it offers; covering legal, political, social and economic issues as they relate to it.Chapter 1 commences by providing a rationale to the Islamic banking and outlining its historical journey, and ends with a discussion on the riba and its prohibition in Islam. Chapter 2 deals with the modes of Islamic finance, which certainly requires a detailed study, as it is these products that form the cornerstone of the entire Islamic banking industry. Shariah precepts are also introduced at this stage (and are discussed throughout this monograph), as they aid the process of comprehension. This chapter would also serve to introduce a d iscussion on Islamic Project Finance, dealt within the following chapter.Chapter 3 deals with Islamic Project Finance in practice, focussing on the legal and other economic issues as they relate to Shariah-Related Documentation, Construction and Lease Financing and Islamic Bonds. Chapter 4 consists of two case-studies, highlighting the Common law developments in Shariah law, as it relates to the Islamic banking industry. Two recent judgments (one from UK and another from Pakistan) are specifically perused, reflecting the stance that the judiciary in the two countries have adopted towards Islamic precepts, its interpretation and application.Chapter 5 raises issues relating to structuring and offering of Shariah-Compliant investment products. In particular, focussing on the role of financial institutions, fund promoters and Shariah advisors. The chapter concludes by providing a comparative analysis on the legal issues linked to the marketing of Islamic investment products in different jurisdictions. Chapter 6 provides an insight to the regulatory and supervisory practices of Islamic banking in various countries.Obstacles faced by the Islamic banking industry in their progress as regards their set up in interest-based banking jurisdictions is further addressed, which is supplemented by a case study on the regulatory issues of Islamic banks in India. 5 Chapter 7 is meant to be general, and briefly discusses the lessons that Conventional and Islamic banks can learn from each other, addressing issues such as the effect of technology transfer and the Bank-Client relationship, which would ultimately lead to the progress of one another. Chapter 8 concludes this monograph. It ascertains the merits of introducing Islamic banking globally.Reforms and suggestions for the Islamic banks are also appended to this chapter, together with a few conclusive remarks on the subject. It is aspired that this work will be a positive contribution on the subject of Islamic banking and it s practices. Suggestions and criticisms are solely intended to enhance the progress of this relatively nascent banking industry, which has undoubtedly shown major signs of progress. 6 Glossary of Arabic Terms This section explains some of the Arabic words and terms, most of them appearing in this study, whereas others might relate to them and would thus be of interest to the reader.Allah is Arabic for God. Fatawa (singular. Fatwa) are legal decisions or opinions rendered by a qualified religious leader (mufti). Fiqh is Islamic Jurisprudence, the science of religious law, which is the interpretation of the sacred Law, Shariah. Gharar is uncertainty, speculation. Hadith (plural. ahadith) is the technical term for the source related to the Sunna; the sayings- and doings- of the Prophet Mohammed (pbuh), his traditions. Halal means permitted according to the Shariah. Haram means forbidden according to the Shariah. Jualah is the stipulated price (commission) for performing any service.May sir mean gambling, from a pre-Islamic game of hazard. Muslim is on who professes the faith of Islam or is born to a Muslim family. Qard Hasan is a benevolent loan (interest-free). Qiyas means analogical deduction. Quran is the Holy book, the revealed word of God, followed by all Muslims. Riba is literally excess or increase, and covers both interest and usury. Shariah is Islamic religious law derived from the Holy Quran and the Sunna Shirka (or Sharika) is a society or partnership. Surah is a chapter of the Holy Quran. Takaful refers to mutual support, which is the basis of the concept of insurance or solidarity among Muslims.Umma means the community; the body of Muslims. Waqf is a trust or pious foundation. Zakat is a religious levy or almsgiving as required in the Holy Quran and is one of the Islam’s five pillars. (Courtesy: Lewis & Algaoud, Islamic Banking, Edward Elgar, 2001, Glossary, x, xi. ) 7 Chapter 1 Introduction and the Basis of Islamic Banking A. Rationale from an Islamic perspective It is argued by proponents of the Islamic banking that in today’s world, the economic system that is based on interest has resulted in concentrating the wealth in the hands of selected few, creating monopolies and further widening the gap between the affluent and the poor.Islamic finance operates in compliance with the Shariah law. Islam is not anti-commerce (the Prophet Mohammad was himself a merchant). In contrast to the modern Western principles and philosophy, Islam encourages circulation of wealth and considers its role as vital to an economy. As Dr Usmani notes in his book, â€Å"just as clotting of blood paralyzes human body, concentration of wealth paralyzes economy. The fact that, today ten richest men in the world have more wealth than forty-eight poorest countries of the world is relied by the supporters of the Islamic banking as a testament to the fact that the current economical set up is unjust and has failed to distribute the wealth propor tionately, thus leading to the downfall of humanity. 1 On considering the injunctions of the Holy Quran, it is apparent that the system of distribution of wealth laid down by Islam envisages three objects, namely: (a) The establishment of a practicable system of economy. (b) Enabling every one to obtain, what is rightfully due to them. c) Eradicating the concentration of wealth. The traditional concept of Muslims that Islam is a unique way of life distinct from all other isms and ideologies extends to the economic life of the Muslims (Umma). In the process of reshaping the economy, the areas of money, banking and investment are regarded as extremely vital to the process of Islamisation of the economy. The Islamic emphasis on co-operation as the key concept in economic life has led to reliance on profit-sharing and participation as the alternative bases for banking and investments in the Islamic framework. The concept of Islamic banking is regarded as one of the few original and crea tive Islamic ideas that have been successfully tried in recent times. In the not too distant past, the entire banking system in all Muslim countries was designed on the Western banking model; the latter being inconsistent with Islamic law primarily due to the disapproval of Riba (i. e. interest) in Islam. In other words, the elimination of Riba 1 Meezan Bank’s Guide to Islamic Banking by Dr Muhammad Imran Ashraf Usmani, Preface, page 7, Darul-Ishaat, 2002. 2Issues in Islamic Banking, Selected Papers by M. N. Siddiqi, page 9, Preface, 1983. 8 from financial transactions is the raison d’etre of Islamic Banking3. Attempts to avoid dealing in interest led to the introduction of a non-interest based banking system, commonly termed as â€Å"Islamic banking†. McDowall notes that Islamic banking not only provides services that are compliant in terms of the Muslim faith, but through the fundamental concept of profit and loss sharing with their customers, deliver a highly ethical proposition to Conventional banking. As Islamic banking offers services to its customers free from interest, any dealing or transaction that involves interest is seen as erroneous and thus forbidden. Technically, riba refers to the addition in the principal amount of a loan, which the lender receives from the borrower. This deliberately simplified picture of the true complex state of affairs is something I shall return to in the following chapter in detail. B. History The Islamic financial system has a centuries-old history, as noted by Chapra and Khan (2000): From the very early stage in Islamic history, Muslims were able to establish a financial system without interest for mobilising resources to finance productive activities and consumer needs. The system worked quite effectively during the heyday of Islamic civilisation and for centuries thereafter. † However, over the centuries, the centre of economic gravity inclined towards the Western world, and the Western fi nancial institutions (including banks) became dominant and the Islamic tradition remained dormant. 5 The Muslim society never approbated interest; throughout the thirteen enturies of its history prior to domination by imperialist powers, it managed its economy and carried on domestic and international trade without any involvement of interest. Profit – sharing and different kinds of participation arrangements served as adequate basis for savings and investment and considerable capital was mobilised for mining, shipbuilding, marine trade, textiles and other industries. 6 The issue of interest free banking regained the attention of Muslim intellectuals in the 1940’s and 1950’s. By this time, numerous local and national banks were established along the lines of interest-based foreign banks.By this time, the government of Muslim countries, in particular, those who gained political independence, found themselves compelled to engage in international financial transact ions using banking systems. The necessity for commercial banking was realised. The challenge was to 3 Profit and Loss Sharing, An Islamic Experiment In Finance and Banking by Shahrukh Rafi Khan, Introduction and Overview, page 1, OUP, 1987. 4 Islamic Banking: A Brief Historical Perspective by Bob McDowall, Business and Finance, 27th May 2004. 5 Islamic Banking and Finance by Munawar Iqbal and David T.Llewellyn, Introduction, page 1, para 1, 2002. 6 Ibid at 1, page 9, para 2. 9 avoid the concept of interest within commercial banking. The path to this was the development of the concept of profit and loss sharing (Mudarabah), the key concept from which the structure of most Islamic banking products and services are derived. 7 C. Current Status All over the world, Muslim bankers and economists are faced with the question as to how they should eliminate interest and evolve new institutions and practices, which would enable economic activities to flourish without resorting to Riba in any form? In recent years, there has been a revival of interest in formulating a modern version of the historic Islamic financial system, as many Muslims’ are endeavouring to avoid interest-based practices and transactions. Islamic banking was virtually an unknown concept thirty odd years ago. Now, fifty-five developing and emerging market countries have some nexus with Islamic banking and finance and â€Å"Riba free† has become the buzzword for financial institutions that wish to attract the large and attractive customer base in the form of Muslims all over the world who are looking for Shariah-Compliant modes of investments and financings.In addition, there are Islamic financial institutions operating in 13 other locations. 9 In Pakistan, Iran and Sudan, all banks must operate under Islamic financing principles. As noted by Justice Mufti Usmani, there were 200 Islamic banks and financial institutions in forty-three countries of the world, controlling a financial pool of US$ 100 billion,10 increasing at an annual rate of 10-15 percent. The Islamic financial industry is already one of the fastest growing industries and has tremendous potential as observed by academics in general.The unorthodoxy of Islamic banking model is apparent from the fact that those who argue in favour of Islamic banking are often regarded as ‘utopians’ and ‘romanticists’, but they claim that the best form of realism could be achieved by challenging all those systems that are based on the exploitation of man in one form or the other and in seeking to set up a just socio-economic order. Dr Siddiqi argues that an Islamic economy is capable of freeing modern man from the debt-ridden economy in which he survives, and of guiding him towards a society based on justice and equity, and ultimately leading to the path of growth and stability. 1 D. Riba and its Prohibition in Islam As observed by Lewis, in order to conform to Islamic norms, five religious feature s are well established in the literature, and must be adhered to in investment behaviour. They are as follows: 7 Islamic Banking by Mervin K. Lewis & Latifa M. Algaoud, Chapter 2, Islamic Law, pages 4 & 5, Brief History, 2001. 8 Banking Without Interest by Muhammad Nejatullah Siddiqi, Foreword, para 1 &2, 1983. 9 Australia, Bahamas, Canada, Cayman Islands, Denmark, Guernsey, Jersey, Ireland, Luxembourg, Switzerland, United Kingdom, United States and the Virgin Islands. 0 New Horizon, No. 82, December 1998, p. 17. He is the Chairman of Centre for Islamic Economics, Pakistan, and a judge of the Islamic Shariah Court. 11 Ibid at 1, page 7 & 8. 10 (a) the absence of interest-based (riba) financial transactions; (b) the introduction of a religious levy or almsgiving, (zakat); (c) the prohibition of the production of goods and services that contradict the value pattern of Islam (haram); (d) the avoidance of economic activities involving gambling (maysir) and uncertainty (gharar); (e) the provision of Islamic Insurance (Takaful).These five elements give Islamic banking and finance its distinctive religious identity. 12 For the purposes of our present chapter, we need to focus briefly on element (a), i. e. absence of interest-based transactions, which is indeed the central element among the latter. Islamic finance, like Islamic commercial law in general, is dominated by the doctrine of riba, and it is imperative that we discuss this in some detail, as to its nature and prohibition. The literal meaning of the Arabic word riba is ‘increase’, ‘excess’, ‘growth’ or ‘additional’.According to Sahacht (1964), riba is simply a special case of unjustified enrichment or, in the terms of the Holy Quran, consuming (i. e. appropriating for one’s own use) the property of other for no good reason, which is prohibited. Prohibition of interest is ordained in Islam in all its forms. The latter prohibition is strict, absolute an d certain. The whole concept of interest is fundamentally repugnant to the spirit of Islam, as could be observed from the following verses of the Holy Quran: â€Å"O, believers, fear Allah, and give up what is still due to you from the interest (usury), if you are true believers. (Surah 2: Aayat 278) And: â€Å"If you do not do so, then take notice of war from Allah and His Messenger. But, if you repent, you can have your principal. Neither should you commit injustice nor should you be subjected to it. † (Surah 2 : Aayat 279) 12 Ibid at 7, page 28, para 2, 2001. 11 Chapter 2 Islamic Modes of Financing Introduction One can vividly perceive the transition in the global banking sector, from core/retail banking, to the complex and detailed role of financing, which clearly depicts sophistication and organisation of international banking community.With the passage of time, the banks have undoubtedly become multifunctional bodies, performing various roles and providing their client s with numerous desired products. Speaking of the international banking community, Islamic banking is undoubtedly a part of it. To keep up with this modernised community and to compete with their fellow-competitors, Islamic banking has introduced and refined some alternative Islamic financing products, to the ones available in the Conventional markets, in order to cater for the Muslim community around the globe.Having said that, it is open to anyone, whether a Muslim or a non-Muslim, to take advantage of these products, as long as they comply with the requirements and precepts of Islamic Shariah. At this instance, it helps to add that the prohibition of interest in Islam does not imply that the capital is not to be rewarded, nor that risk is not be priced. The Islamic system has both fixed and variable return modes to price the capital and add ‘risk premia’ in relation to the degree of risk involved.Islamic banks provide financing using two methods. The first is based o n profit-sharing and the second one deals with modes, which rely on fixed return (mark up) and often conclude in creating indebtedness of the party seeking finance. The Islamic modes of finance are unique as the debt related with financing using mark-up modes results from real commodity sale/purchase operations, rather than the exchange of money for interest-bearing debt. Furthermore, unlike the Conventional debt, such debt is not marketable except at its normal value. 3 The whole idea behind the Profit and Loss Sharing (PLS) is seen as an innovation, a modern trend if you like, and it is aspired that it will bring several merits to the industry of investment and finance, thus benefiting the community at large. It must be borne in mind that the Islamic Shariah does not prohibit Islamic banks from issuing guarantees. However, the question of the legality of the commissions and charges received by banks in issuing the guarantees has been a subject of much debate and discourse.Several banks in the Middle East have sought to tackle the latter issue by agreeing to issue guarantees at no charge, while simultaneously asking for cash collateral of a specific percentage (30 %) of the guaranteed amount, which is then invested by the bank for its own account and benefit for the duration of the guarantee. 14 13 Progress and Challenges of Islamic Banking by Abbas Mirakhor, Review of Islamic Economics 4 (2) 1997. 14 Demand Guarantee in the Arab Middle East, J. I. B. L, 7, page 271, 1997. 12In order to circumvent the ambiguities raised, a group of Muslim scholars gave their opinion on the legality of Islamic banking practices as regards guarantees. Their opinion is summarised in two segments and is as follows. 1. The legality of the issuance of a bank guarantee relies on the legality of Shariah principles of the contract in question, in respect of which the guarantee was issued. It is evident that no Islamic bank should issue guarantees in relation to items that are prohibit ed under the Shariah, including guarantees for the payment of usurious interest, the sale of alcohol, drugs, the construction of gaming places, etc.The latter may seem to be an obstacle towards an entirely independent guarantee, but its scope should not be overstated. As long as the contract in question is considered lawful by the standards of Shariah precepts, a guarantee stipulated to be unconditional and payable on first demand would be deemed valid and in force under Shariah, notwithstanding the performance or termination of the underlying contract. . Banks are entitled to receive remuneration for the issue of a guarantee. Having said that, the amount of remuneration, to be in accordance with the Islamic Shariah, ought not be fixed in accordance with the amount of the issued guarantee, but should instead be calculated to provide a reasonable compensation to the issuing bank for the time and effort that the latter spent to issue and manage the guarantee. 5 This chapter will focus on the Islamic modes of finance, other than guarantees, namely Musharakah, Mudarabah, Murabaha, Bai’ Muajjal, Ijaraha, Ijaraha Wa Iqtina, Salam, Istisna’ and Istijrar, which are available in the global financial market today, whilst providing a comparison with the Conventional finance products, wherever possible. A(i). Musharakah The literal meaning of the Arabic word Musharakah is sharing, or Shirkah, which means being a partner.There are several kinds of partnership, and they all come under the heading of Shirkah. Musharakah is perceived as an ideal alternative for the interest based financing with far reaching effects on both production and distribution. 16 The term Musharakah as used in the modern terminology, has been recently introduced by Islamic Scholars writing on the subject and is normally restricted to a particular type of Shirkah, which is Shirkat-ul-Amwal, where two or more persons invest some of their capital in a joint commercial venture.However, at ti mes it could also include Shirkat-al-Aamal, where partnership takes place in the business of services, whereby all the partners jointly undertake to render some services for their customers, and a fee is charged from the latter and is distributed among the partners as per an agreed ratio. 17 15 Shariah Related Documentary Issues in Islamic Project Finance Transactions, J. I. B. L. R 2003, page 272, para(s) 2, 3 & 4. 16 Meezan Bank’s Guide to Islamic Banking by Dr Muhammad Imran Ashraf Usmani, 2002, page 87, Chapter 13 (Definition and Classification of Musharakah). 7 Ibid at 11, page 90. 13 Musharakah is a mutual contract between the parties, and thus all the mandatory ingredients of a valid contract must be present. Furthermore, the capital in Musharakah agreement should be quantified, specified, but not necessarily merged or in liquid form. If all the partners agree to work for the joint venture, each one of them shall be treated as the agent of the other, in all matters con cerning the business. Any act carried out by a single partner, in the normal course of business, shall be deemed as authorised by all other partners. 18All scholars are unanimous on the principle of loss sharing in Shariah, which is based on the saying of Syedna Ali ibn Talib, which is as follows: â€Å"Loss is distributed exactly according to the ratio of investment and the profit is divided according to the agreement of the partners. †19 Termination of the Musharakah agreement: Musharakah agreement will be terminated in the following circumstances. 1. If the purpose of forming the ‘Shirkah’ has been achieved. 2. Every partner can exercise his/her right to terminate Musharkah at any time after giving his partner a reasonable notice. . In the case of a demise of any one of the partners or any partner becoming insane or incapable of effecting the commercial transaction. 4. In the case of damage to the share capital of one partner before mixing the same in the tota l investment and before affecting the purchase, the partner will stand terminated and the loss will be borne by that particular partner. However, if the share capital of all the partners has been mixed and could not be identified singly, then the loss will be shared by all and the partnership will not be terminated. 0 Termination of Musharakah without the closure of the business: If one of the partners intends to terminate the Musharakah, in disagreement with the other partners, the latter issue could be resolved by mutual consent. The partners intending to run the business may purchase the share of the partner who wants to terminate his partnership, as the termination of Musharkah with one partner does not affect the Musharkah between the other partners.The latter seems to be a just and a viable approach, especially in the modern situations, where the success of a particular business is conditional upon its continuity, and the liquidation or separation at the instance of a single p artner may only cause irreparable damage to the other partners. 21 18 Ibid at 11, page 91 & 92. Ibid at 11, page 94 (Rules of Distribution). 20 Ibid at 11, page 95 (Termination of Musharakah). 21 Ibid at 11, page 96. 19 14 Security in Musharakah:As regards a Musharakah agreement between the bank and the client, the bank should in its own right and discretion, obtain adequate security to ensure that the capital invested/financed and the profit that may be earned are safe. As part of the usual practice, the securities obtained by the bank, are kept comprehensively insured at the party’s cost and expenses, till the Islamic mode of insurance (Takaful) becomes operational. It is understood that the purpose of the latter security is a precautionary measure to cover for damage(s) or loss of the principal amount due to the client’s negligence. 2 Differences between interest-based financing and Musharakah: 1. As regards interest-based financing, a fixed rate of return on a loan , advanced by the financier is predetermined, irrespective of the profit earned or loss suffered by the debtor. Mushrakah agreement does not envisage a fixed rate of return, it is in fact based on the actual profit earned by the ‘joint venture’. 2. The financier cannot suffer loss in an interest-based financing. The financier under a Musharakah agreement can, possibly suffer a loss, if the joint venture fails. 3.It is argued by Islamic scholars and other academics that the interest-based financing results in injustice, either to the creditor or the debtor. If the debtor suffers a loss, it is unjust on the creditor’s part, to claim a fixed rate of profit. And, if the debtor earns a high rate of profit, it is injustice to the creditor to provide him with only a small proportion of the profit, while the debtor taking the chunk of it. As regards a Musharkah agreement, the returns of the creditor are tied up with the actual profits earned through the enterprise, which he/she financed.The greater the profits of the enterprise, the higher the rate of return to the creditor. If the enterprise earns ‘substantial’ profits, the creditor cannot acquire all of it, but has to share it with the common people, e. g. depositors in the bank. 23 Tenure of Musharakah: As regards the determination of the period of the Musharakah agreement, the following conditions operate. (a) The partnership is fixed for such a duration that at the end of the tenure, no other business can be conducted. 2 23 Ibid at 11, page 97 (Security in Musharakah). Ibid at 11, page 98. 15 (b) The partnership can be for a very short term, during which neither partner can dissolve the partnership. 24 A(ii). Diminishing Musharakah Another form of Musharakah, which has developed in the recent years, is known as Diminishing Musharakah. It involves the participation of a financier and his client, either in the joint ownership of a property/equipment, or in a joint commercial enterpr ise.The financier’s share is further divided into several units, and it is intended that the client will purchase the financier’s units of the share, one at a time, periodically, increasing his own share, until all the units of the financier are purchased by him, so as to make him the sole owner of the property or the commercial enterprise, whichever be the case. 25 B. Mudarabah This is also a kind of partnership, whereby one partner provides finance to the other for investing in a commercial enterprise.The investment is provided by the first partner called the ‘Rab-ul-Maal’, while the entire responsibility for the management and work falls upon the other partner, who is called the ‘Mudarib’. The profits generated, are shared in a predetermined ratio. There are two kinds of Mudarabah – restricted and unrestricted. Rab-ul-Maal may specify a particular business for the Mudarib, in which case he shall invest the money in that specified bus iness only. This is known as ‘Al-Mudarabah-alMuqayyadah’ (restricted Mudarabah).But if he leaves it open for the Mudarib to undertake whatever business he wishes, the Mudarib shall be authorised to invest the money in any business he wishes. This type of Mudarabah is called ‘Al-Mudarabah-al-Mutlaqh’ (unrestricted Mudarabah). A Mudarib cannot forward the money lent to him, or carry out any activity that is beyond the course of his business, without the Rab-ul-Maal’s express permission or consent. Rab-ul-Maal is entitled to oversee the activities carried out by the Mudarib. The former can also work with the Mudarib, provided the latter gives his consent.A Rab-ul-Maal can contract Mudarabah with more than one person through a single transaction, for instance, he can offer financial assistance to X and Y both so that each of them becomes a Mudarib, and the capital of the Mudarabah transaction shall be utilized by both of them, jointly. 26 It is imperativ e that both the parties should decide in advance, on the proportion of profit that each one of them should receive. However, the parties cannot suggest a lump sum amount of profit, nor can they determine the share of any party ‘at a 24 Ibid at 11, page 102 (Tenure of Musharakah).An Introduction to Islamic Finance by Muhammad Taqi Usmani, Chapter 2, page 82, para 1 (Diminishing Musharakah). 26 Ibid at 11, pages 105-108. 25 16 specific rate tied up with the capital’. If the business has suffered loss in a few transactions and made profit in some others, then the profit should be used to offset the loss/losses incurred, and whatever remains, shall be a distributed between the parties according to the agreed ratio. 27 Roles of Mudarib: He is an Ameen (trustee), who is responsible to look after the investment, with an exception of natural calamities.He is a Wakeel (agent), as he makes the purchases from the funds provided. He is also a Shareek (partner), thus sharing the pro fits with Rab-ul-Maal. He can also possibly be a Zamin (liable), and thus will have to compensate for any loss suffered during the course of Mudarabah, due to any erroneous act on his part. 28 Termination of Mudarabah: The Mudarabah will come to an end when the specified period in the contract expires. It can also be terminated by either of the two parties, at any time, by giving notice.Furthermore, in case Rab-ul-Maal has terminated the services of Mudarib, the latter will continue to perform his acts under the contract, until he is informed about the termination. 29 C. Murabaha In this particular kind of sale, the seller clearly mentions the cost of the sold commodity, and then sells it to the buyer by keeping a profit margin. Thus, Murabaha should not be seen as a loan given on interest, it is rather a sale of a commodity for cash/deferred price. As regards Bai Murabaha, the bank purchases a commodity, on a client’s behalf, and then resells it to the latter, on the basis o f plus-profit.Under this kind of agreement, the bank discloses its cost and profit margins to the client. Thus, unlike Conventional banks (which advance money to a borrower), the bank will buy the goods from a third party and sell it onwards to a customer for a pre-agreed price, thus abstaining from interest. The growing use and vitality of Murabaha agreement is proven by the fact that in Islamic banks world over, 66% of all investment transactions are through Murabaha. 30 It is argued by critics of Islamic banking that Murabaha agreements are in reality interest-based contracts, under the garb of a notional sale and buy ack transaction, profit being synonymous to interest in this case. Islamic scholars have reverted to this argument by stressing that a ‘true’ Murabaha financing structure is quite different 27 Ibid at 11, 109-111. Ibid at 11, page 111, para 5. 29 Ibid at 11, page 112, para 2 (Termination of Mudarabah). 30 Ibid at 11, page 125, Chapter 16 (Murabaha). 28 17 from an overdraft provided by Conventional banks and the former offers various benefits to the bank and its customers, namely that depositors have a share in the bank’s profits.Furthermore, the basic difference is the Aqd (contract), which specifies the Islamic conditions, as against the interest element in Conventional banking transactions. 31 Basic Rules for a Murabaha transaction: 1. The subject of sale must be in existence at the time of the sale. 2. The seller must have the ownership of the commodity in question. 3. The subject of sale must be in physical or ‘constructive possession’32 of the seller while he is selling it. 4. The sale must be instant and absolute; no provisions for contingencies should be made part of the contract. . The goods/commodity to be sold, must reflect a value and must be specified to the buyer, leaving no room for ambiguities or confusion as between the parties. 6. The sale must be unconditional and the price of the commodity sh ould be certain. 33 If a client defaults on any payment(s) by the due date, the price cannot be changed nor can the penalty fees be charged, as against him. Nevertheless, as regards dishonest clients, who knowingly and deliberately default, they should be made liable to compensate the bank, subject to the following two conditions. a) The defaulter must be given a grace period of at least a month. (b) It must be proved beyond reasonable doubt that the client is a defaulter, and he has no justifications for his latter behaviour. 34 Murabaha can only be used when a commodity is to be purchased by a customer/client. It is highly pertinent to peruse the subject matter of the Murabaha, as the documents must be signed for obtaining funds for a specified purpose only. It needs to be stressed that the Murabaha consists of several different contracts and they all play their part one after another, in respective stages. 5 31 Ibid at 11, page 126, para 2 (Arguments against Murabaha). It refers to a situation where the possessor has not yet taken the physical delivery of the commodity, yet all rights and liabilities of the commodity are passed on to him including the risk of its destruction. 33 Ibid at 11, page 126-127 (Murabaha Rules). 34 Ibid at 11, page 129, para 1 (Penalty for Default). 35 Ibid at 11, page 130-131 (Basic Mistakes in Murabaha Financing). 32 18 D. Bai’ Muajjal This is basically a sale on deferred payment.The deferred payment becomes a loan, which the buyer pays in a lump sum or instalment (as agreed between the parties). In Bai’ Muajjal all those items/commodities can be sold on a deferred payment, which come under the heading of capital, where quality does not make a difference but the natural or intrinsic value does. The price to be paid must be agreed and fixed at the time of sale. The buyer must be given complete possession of the commodity in question, whilst the seller is free to ask the buyer to provide him with guarantee in the form of a mortgage or any other item. 6 E. Ijaraha In an Islamic leasing (Ijaraha), the owner of the asset, while retaining the corpus of the asset, transfers its usufruct to another person for an agreed period, at an agreed consideration. All the liabilities arising from the ownership must be endured by the lessor. The period of lease must be determined in clear terms and the asset must be clearly identified as between the parties. 37 The lessee is liable to compensate the lessor for all the damage(s) caused to the leased asset by any misuse or negligence on his part.The rental should be determined at the time of the contract for the whole duration of the lease. The lessor cannot increase the rental unilaterally, and must consult the lessee in that regard. 38 Lease was not originally a mode of financing, however, certain financial institutions have adopted leasing as a mode of finance instead of a long term lending arrangement, which is based on interest. The transaction of ‘fina ncial lease’ may be used for Islamic financing, subject to certain conditions. It does not suffice for the latter purpose to interchange the term ‘interest’ by ‘rent’ and ‘mortgage’ by ‘leased asset’.It must be emphasised that there is a difference between leasing and an interest-bearing loan, as regards Islamic Shariah. 39 Unlike the contract of sale, an Ijaraha agreement can be based on a future date, thus it is different from a Murabaha agreement in that respect. In majority of the cases concerning ‘financial lease’, the lessor (financial institution) will purchase the asset through the lessee himself. The lessee makes the purchase on behalf of the lessor who then pays the price to the supplier, either directly or through the lessee. 0 The lessor, being the owner of the asset, and having purchased it through his agent (lessee), is liable to bear all the expenses incurred in the process of its purchase and its import to the country of the lessor (if that is the circumstance), e. g. expenses of freight and customs duty etc. 41 36 Ibid at 21, pages 102-103 (Bai’ Muajjal). Ibid at 21, pages 158-160. 38 Ibid at 11, pages 148-149. 39 Ibid at 11, page 149 (Lease as a Mode of Finance). 40 Ibid at 11, page 150 (The Commencement of Lease). 41 Ibid at 11, page 152, para 3 (Expenses Consequent to Ownership). 37 19 Variable Rentals in Long Term Leases:Several Islamic banks use the rate of interest as a benchmark to calculate the rental amounts, e. g. London Interbank Offered Rates (LIBOR), which is the rate of interest at which Conventional banks borrow funds from other banks, in marketable size, in the London interbank market. The idea is to earn the same amount of profit through the mode of leasing, as earned by the Conventional banks by advancing loans on interest. Instead of fixing a definite amount of rental, the Islamic banks calculate the cost of purchasing the asset that is to be leas ed and intend to earn an amount equal to the rate of interest.Thus, the agreement between the parties provides that the rental will be equal to the rate of interest or to the rate of interest in addition to something. Since the rate of interest is variable, it cannot be set for the whole duration of the lease. The latter arrangement has been objected to on the following two grounds:42 (a) By subjecting the rental payments to the rate of interest , the transaction is made to resemble an interest-based financing. The modern Islamic scholars have denied that argument and have stressed that the rate of interest is only used as a benchmark.As far as the requirements of Shariah are concerned, they must be fulfilled for a valid lease to be executed, and it is the latter that counts, as regards the legality of the Islamic financial lease. The vital difference between an interest-based financing and a valid Islamic lease does not lie in the amount that has to be paid to the financier or the lessor. However, it is recommended that the use of rate of interest as a benchmark must be avoided at times, where possible, so as to distinguish it with the non-Islamic transaction. 3 (b) The second criticism relates to the situation that the variations of the rate of interest are not determined and the tying up of rental with that rate of interest implies Jahalah and Gharar (uncertainty, especially in a contract that may lead to disputes later on), which are not permissible by Shariah precepts. It is one of the basic tenets of Islamic Shariah that the parties must be well aware of the consideration in every transaction they enter into.This objection has been responded by looking at the reasons of prohibition for Jahalah, namely that Jahalah may lead to disputes between the parties and it might render the parties susceptible to an unforeseen loss. As regards the first objection, both parties make their decisions with mutual consent upon a welldefined benchmark serving as a criterio n for determining rent, thus no question of dispute arises. Relating to the second objection, several contemporary scholars suggest that the relation between rent and the rate of interest is subjected to a limit.E. g. the base contract may provide that the rental amount given after a specified period will be altered according to the change in the rate of interest, but in no instance, it will be higher than 15% or lower than 5 % of the previous monthly rent. The latter implies that if the increase in the rate of interest is more than 15%, the rent will be increased only up to 15%, and if it decreases by more than 5%, the rent shall not be decreased to more than 5%. 44 42 Ibid at 11, page 154 para 1. Ibid at 11, page 155. 44 Ibid at 11, pages 155 & 156. 43 20 F.Ijaraha Wa Iqtina It is permissible in Islamic Shariah that instead of there being a sale, that the lessor signs a separate agreement, making a promise to gift the leased asset to the lessee at the end of the lease period, on c ondition that the lessee makes all the payments due for his/her rent. The latter arrangement is known as Ijaraha Wa Iqtina. It has been affirmed by a large number of contemporary Islamic scholars and is widely practised by the Islamic banks and financial institutions. Although, the validity of this arrangement is subject to two conditions.They are: (a) The agreement of Ijaraha itself should not be subjected to signing of sale or gift. The promise should be made in a separate document. (b) The promise must be unilateral and binding on the promisor only. If the leased asset is used by numerous users, the lessee cannot sub-let the asset, except with the express permission of the lessor. The lessor can sell the leased property to a third party, whereby the lessor is replaced by the new owner, and the lease agreement would then be between the new owner and the lessee. 5 This form of financial leasing has been subjected to criticism as it is not compatible with the modern financing agreem ents, as a non-binding promise cannot be enforced before courts and is thus not a legally satisfactory solution. In an attempt to reconcile Ijaraha Wa Iqtina with the modern financial structure, it is suggested that the lessor’s failure to honour his non-binding promise should be subjected to a pre-contractual liability, or culpa in contrahendo.In civil law jurisdictions, this concept of pre-contractual liability contemplates that the contracting parties will conduct their pre-contractual dealings in good faith and also points to any relevant facts, which are within the commercially usual limits, to the other party. If a party is unsuccessful in carrying out its duties, and thus in breach of contract, then it will have to pay the damages to the other party for not fulfilling the agreement. By adopting this suggestion, the promisor in breach, is made liable for the promisee’s costs, in finding another similar object to purchase. 6 G. Salam This mode of financing can be used by modern banks and financial institutions, especially in order to finance the agricultural sector. In Salam, the seller undertakes to supply specific goods to the buyer at a future date, in exchange of an advanced price fully paid at the spot. The payment is made in cash, and the supply of purchased goods is deferred. 45 Ibid at 11, pages 161-162 (Ijaraha Wa Iqtina). Construction and Lease Financing in Islamic Project Finance by Klarmann, J. I. B. L. R, page 65 (Lease Financing: Ijaraha Wa Iqtina). 6 21 Purpose of Salam Contracts: The purpose is to meet the need of farmers, who operate on a small scale, and thus need the finance for farming purposes, so that they can carry out their day-to-day activities. Moreover, it is designed to assist the traders, in their export/import transactions. Salam proves beneficial to the seller, as he receives the price in advance, and at the same time, advantageous to the buyer, as the price under the Salam arrangement is normally lower than th e price in spot sales. 7 The permissibility of Salam is seen as an exception to the general rule that prohibits forward sale and thus it is subject to certain stringent conditions, which are as follows: Conditions of Salam: 1. The buyer must pay the full price to the seller at the time of effecting the sale. The basic idea behind the Salam agreement, is to satisfy the ‘instant need’ of the seller. If it is not paid in full, the latter purpose is not achieved. 2. The quantity and the quality of the goods must be specified. 3. Salam cannot be effected on a particular commodity or on a roduct of a particular field or farm. 4. The contract must expressly state the quality of goods, thus leaving no room for ambiguities, which might lead to disputes later on. Same is the case as regards the quantity; it must be agreed upon in absolute terms. 5. The exact date and place of the delivery must be specified. 6. Salam cannot be effected in respect of things, which require them to b e delivered at the spot. 7. Since the price in Salam agreements is generally lower than the price in spot sales, the difference between the two prices may be a valid profit for the bank. . A security in the form of a guarantee, mortgage or hypothecation may be required in order to ensure the delivery from the seller. 9. The seller must deliver to the buyer, the commodity, and not the money at the time of the delivery. 48 H. Istisna’ Istisna’ is a sale transaction whereby a commodity is transacted before it comes into existence. It is an order for a manufacturer to manufacture a certain kind of commodity, to be used by the purchaser. The manufacturer uses his own material to 47 48 Ibid at 11, page 133 (Purpose of Use).Ibid at 11, pages 134-135 (Conditions of Salam). 22 manufacture the required goods. The price must be fixed with consent of all the parties involved. All other vital specifications of the commodity must also be fully settled. Subject to the acknowledgment or receipt of prior notice, either party can cancel the contract before the manufacturing party has begun the work. The time of delivery need not be fixed, however a time limit may be imposed as between the parties. 49 I. Istijrar Istijrar means purchasing the goods from time to time, in different quantities.It is an agreement, whereby the purchaser buys something at regular intervals, without any formal offer or acceptance mode or bargaining. There exists one master agreement, which contains all the terms and conditions of the purchases in a finalised form. There are two kinds of Istijrar: (a) where the price is determined after all the transactions/purchases are completed; (b) where the price is determined in advance, but the purchase payment is made from time to time. As regards the Islamic mode of financing, only (a) is relevant. Istijrar can be adopted as a viable mechanism, in the case of suppliers of the borrower.In the latter case, the bank enters into a Murabaha agreement ( Agreement to Purchase) with the suppliers (mainly trading companies), that it will purchase the assets from them at a market price or at a pre-determined discount from the market price. Whenever the customers demand, the bank can purchase that particular asset from the suppliers on the basis of Istijrar, and sell it onwards to the customer, on the basis of Murabaha. 50 49 50 Ibid at 11, pages 139-142. Ibid at 11, page 143-145 (Istijrar). 23 Chapter 3 Application of the Islamic Modes of Finance: A Research on Islamic Project Finance A. Shariah-Related Documentary and Other IssuesIn recent years, Islamic financial institutions have actively started to structure and participate in transactions, which are associated with long-term trade, as opposed to the short term trade related transactions (e. g. Murabaha). This transition has given rise to a number of important Shariah and documentary issues. The prevalent backdrop is that the Islamic bankers and their advisers now face even more st ringency, regarding the setting up of Shariah-compliant structures that are accepted commercially and are also in conformity with the existing governing law of that particular jurisdiction where they operate. 1 As noted earlier, one of the basic principles of Islamic finance is that at a particular stage in the transaction, the financial institution will be the owner of all or part of the asset that is being financed, and under Shariah precepts, several forms of risk related with being an owner cannot possibly be passed on to the customer or a third party. The latter is the most defining difference between an Islamic financial system and a Conventional one. These additional ownership risks become more serious when the transaction involves complex capital assets, e. . a power plant or an aircraft, as the potential exposure faced by the Islamic financier as an owner can be very critical and significant. It is expected that since the Islamic financial institutions are willing to take g reater risks as compared to their Conventional counterparts, this should result in greater rewards for the former. It is submitted by the academics that this is not necessarily the case. 52 In several countries, e. g. the idea of interest is sanctioned by an Act of Parliament, and the latter being affirmed by the courts.Having said that, it is imperative to notice that laws of several states are embedded in Shariah law and concepts, if not in whole then in part. It is observed that a proposed Islamic structure that has the approval of a Shariah board must be examined against the local statutes of that particular state to check whether the structure raises any adverse issues under those laws, and if so, then the proposed structure will surely need amendment and another approval from the Shariah Board.For example, under the Shariah precepts, a transfer of an interest in real estate is effective upon an agreement, signed between the buyer and seller. However, such an agreement may not be recognised by the local laws (at least as regards the bona fide third parties) until and unless the transfer is recorded in the concerned land registry. Sometimes, the problem might be such that a person to whom a real estate interest has been validly transferred under Shariah principles, would not necessarily be recognised as the legal owner under the local municipal 51 2 Ibid at 14, page 317. Ibid at 39, page 317 (Risk Reward Issues). 24 laws. In such situations, the legal and financial consultants, giving their expert advice on such structures, are required to strike a balance, so that the Shariah conditions and requirements are satisfied and are also accepted and applicable under the governing law. 53 There are certain issues relating to the nature of Islamic financing that come up too often and thus need to be discussed. Some of these are discussed below but the list is not intended to be exhaustive. Indemnities:The Shariah principle governing the operation and conditions of Islamic financing expressly prohibits indemnity for a loss or damage that is not caused by the customer’s default. Shariah sees the whole idea of seeking indemnity from the customer as unfair, notwithstanding the fact that the particular asset may have been chosen by the customer. Matters relating to the title to the asset, its fitness for its intended purpose and taxes that are imposed on ownership raise some serious and significant credit issues when one is dealing with a major capital asset, e. . aircraft or a vessel. Having said that, there must be some alternate basis for an Islamic financier to claim indemnity. Suggestions have been forthcoming in the form of seeking indemnities based on the concept of public need or necessity or by other methods, to cover the risks. E. g. such methods could include obtaining the benefit of warranties from the supplier or the manufacturer of the asset and assurances that the asset(s) are in perfect condition and have been validly perfe cted for the intended use.The financial position of the assignor (and any available insurance protection relating to the assignor) would also have to be assessed. 54 In contrast, in the case of Conventional financing, the customer often provides wideranging indemnities in order to protect the bank from any risks related with the ownership or use of the asset. The banks are not concerned with the issue of fault and are more keen to ensure that they are insulated from credit risks, arising from the ownership, use or operation of the asset. 55Warranties: As the owner of the asset, the Islamic financier may not be able to exclude the benefit of some warranties to its customer under the Shariah principles. In few instances, the Islamic financier has the benefit of the warranty from a third party that can be assigned to the customer (i. e. from a manufacturer). It has been permitted that the Islamic financier could expressly exclude any warranty from the Islamic financial institution in t he customer’s favour to the extent that it is covered by the assigned warranty.This does not seem to be an adequate solution in that it is often impossible to describe with accuracy the extent of the warranty being assigned. Inevitably, some of the warranties may not be covered by a third party assignment and thus the Islamic financier will still be providing the benefit of some warranties to the customer. In a Ijaraha (leasing) transaction the balance of such warranties, which cannot be excluded under Islamic principles may possibly be covered by insurance. 3 Ibid at 39, page 318, para 2 & 3. Ibid at 39, page 319 (Indemnities). 55 Ibid at 39, page 319. 54 25 Thus, if warranties will raise Shariah related issues, the Islamic financier must immediately try to identify those residuary warranties that cannot be covered to decide whether or not this renders the transaction commercially unacceptable, particularly, if its financial return will not reflect these additional risks. 56 Compensation and Liquidated damages:In Conventional financing, if the borrower defaults on any payment due on him, default interest is charged as against him, thus compensating the banks. This approach is unacceptable as regards Islamic financing, due to the obvious reason of any such compensation/liquidated damages tantamount to charging interest. Unfortunately, the experience of Islamic financiers in trusting their customers, that they would pay on time, has not really been successful, and there is a general agreement that there must be some form of penalty if a customer does not pay on time.The Islamic financier can only claim compensation if it suffers loss or damage due to the true fault of the customer. The compensation must reflect the actual loss of the financier. Most Islamic financings have a compensation provision dealing with failure to pay on a due date and which uses a benchmark linked to LIBOR, as discussed above. The entire purpose of such provisions is not to compe nsate the financier, but to treat it as an incentive to the customer to make payments by the due date. 57 Events of default:In a Conventional financing, there will be a progression of events of default, which will give rise to rights in the favour of the banks, and in particular, the right to demand the repayment of outstanding debts. As a general principle, the latter view is accepted by the Shariah law, as long as the customer is at fault. In a Conventional financing, there will be events of default that are not within the customer’s control. It is considered as unviable to include such events of default in an Islamic financing, and each event must be diligently drafted to take account of the latter. 8 This, however, raises credit risks, which if not compensated for by the customer in the form of an increased return to the Islamic financier, may force the latter to take on extra risk, which will be without any reward. This issue becomes even more vital in the case of a co-f inancing that involves both Islamic and Conventional financing. The Conventional banks will surely not like the idea of Islamic facility not going into default at the same time as them, and this could possibly have adverse effects on the security sharing under inter-creditor arrangements.It has been argued that in these circumstances the Conventional banks should accept the position of Islamic financiers, however, the prevailing position is that the Conventional financing is the controlling financial force in the world and thus it is often arduous for Islamic financial institutions to have their views stand in a co-financing. Examples of events of default that can potentially cause dispute between Conventional and Islamic financiers would be nationalisation, requisition, loss of air traffic rights and force majeure. If there is disagreement as regards any of the above mentioned events of 56Ibid at 39, page 320, para(s) 2 & 3. Ibid at 39, page 321, para 1. 58 Ibid at 39, page 321, (E vents of Default) para 1. 57 26 default, then it is advised that they must be put into a separate category of events called by some other name, such as events of ‘mandatory prepayment’. 59 If there is an event of default the customer may be obliged to purchase the asset, at a predetermined price. That obligation must not be listed in the same document (i. e. the lease) to avoid concerns regarding conditionality but should be contained in a separate document, e. g. an option or a deed of covenant.If the event of mandatory prepayment arises, the customer will not be in default but the happening of such an event will enable the financier to exercise a right or option granted to it by the customer in a separate document requiring the customer to purchase the asset. The conclusion to this whole procedure being that, on the face of the document, the events of default will be Shariah-compliant and for events of mandatory prepayment, there will be a Shariah-compliant system tha t results in the asset being purchased, thus clearing the amount that the customer owed the Islamic financier. 0 Set-off: It has often been disputed that the grant of set-off rights that are solely in favour of the Islamic financier, is against the Shariah precepts, which require an Islamic finance transaction to be fair and reasonable when taken in the context of the customer. The aforementioned issue has been resolved in various transactions by providing that there are statutory set-off rights that cannot be waived and which keep an acceptable balance as regards favouring the financier and the customer. 61 B. Construction and Lease FinancingSpecific Issues in Relation to Ijaraha (Leasing) Transactions Insurance and Maintenance Obligations: As per the Shariah principles, the lessor must remain liable for several insurance and major maintenance obligations. Obligation and the financial consequences cannot be transferred on to the lessee, pursuant to the terms of the lease. The insur ance obligations relate to the structural or property insurance. However, the lessee can be held responsible and liable for the cost of operational insurance, such as the business interruption insurance and third party insurance (to the extent that it relates to operational risks).The latter mentioned principles can possibly have serious implications for an Islamic financier. The direct costs involved in, e. g. maintaining an aircraft and the indirect costs and liability resulting from the failure to perform such maintenance can prove to be very significant. 62 There must be some mechanism to transfer some risk on to the lessee, or sharing of risk if you like, which, on the face of the document is Shariah-compliant. 59 Ibid at 39, page 321, para 3. Ibid at 39, page 321, para(s) 4 & 5. 61 Ibid at 39, page 321, (Set-off), para 1. 62Ibid at 39, page 322, (Insurance and Maintenance Obligations). 60 27 The most obvious approach is to appoint the lessee as the ‘service agent’ of the lessor (Islamic financier) in order to perform these activities, which would include paying the insurance premiums and the maintenance costs. The service agency agreement must specify that the service agent will indemnify the lessor for any default on his part, in the performance of these obligations. However, on the basis of general precepts, an agent must be compensated for any costs properly incurred on behalf of its principal.Usually, a nominal fee is paid to the se