Sunday, December 29, 2019

Ending Marriages and the Effects Essay - 631 Words

Ending Marriages and the Effects â€Å"Till death do us part†? Marriages are known to be a lifetime commitment towards love caring among people. However most marriages these days seem to be failing due to the increasing number of problems with the modern world. When these marriages end, the effects can be devastating. Why do people get married? Well it is a known tradition in humanity that a woman and man will come together and live their lives as one. The most important element that seems to have disappeared is love. Not just any love, but true, deep feeling love. To keep a relationship clear, the love itself should be clear, not artificially placed. If there is no well defined understanding of love, then is should obviously not†¦show more content†¦A wife can equally commit this form of adultery. Adultery is one of the most popular reasons for most divorces to occur, and it usually has the worst outcome as well. These include physical and verbal fights, splitting of family including children, law suites, and much more. Financial problems can also end a good marriage. This cause leads to fights on spending too much money, making a bad investment, and purchasing useless things. Being stingy can also be another bad reason. No matter what the reason is, the causes of failing marriages divorces are practically endless, and so are the effects. It’s amazing on how little effort the effects need to destroy what is supposed to be â€Å"lifetime happiness†. There are several other reasons why marriages end; yet the most devastating are the unexpected problems such as health deterioration. Several families have a sick parent that could be dying. In this case the parent that is not ill should be courteous and take care of their partner in love, but modern days give women to be their own spirit that would rather get a new life than stay with a husband that will sooner or later die. People these days are very selfish and they would rather continue their life without depression. Health deterioration can occur at a young age, and that usually hurts more. Physical illness is pretty bad as well. If a man is impotent or a woman infertile, this means that cannot conceive aShow MoreRelatedPersuasive Essay About Overpopulation1455 Words   |  6 Pageshelp solve it The big question is whether humanity is getting too big and, in the process, endangering the wellbeing of people, and our planet. Overpopulation is a real thing it’s happening right now in some parts of the world. Delay marriage, ending child marriages, and women empowerment might not seem like a lot, but it actually is. All these things can help the overpopulation problem we are facing today in certain parts of the world and in the future. If we all contribute to this we could helpRead More Comparing Sexy versus A Temporary Matter in Interpreter of Maladies806 Words   |  4 PagesReaders are often baffled by the openness of some stories where the ending can go either way they are put into situation where they must imagine or assume how the story does end. Open-ended stories can be found in Jhumpa Lahiri’s Interpreter of Maladies, where few stories of open-endings have an immense impact on the reader by creating a hunger to know what happens next. There is always one very noticeable advantage open-ended stories have over close-ended stories, that is the impact on the readerRead MoreThe Problem Of Child Marriage Essay1628 Words   |  7 Pages and forced marriage is a worldwide, complex social problem that can lead to great disadvantages such as poverty, lack of education, inequality, disease and even death.† Workineh, Dejenu Kibretb, Degu (2015) defined child marriage as â€Å"any marriage carried out below the age of 18 years, before the girl is physically, physiologically, and psychologically ready to shoulder the responsibilities of marriage and childbearing† (p. 1). UNICEF defines child marriage as any formal marriage or informal unionRead MoreDivorce And Its Effect On Children902 Words   |  4 PagesIntroduction The concept of divorce is entrenched in the very idea of marriage. The possibility of marriages breaking down has increased considerably with some statistics placing the rate at 50% of all marriages. Divorce is a legal term that represents the separation of two people who had previously entered into a marriage agreement. While the prevalence of divorce is astonishing, the effect these instances have on families is critical. Many of the people who are divorced have children, whom theRead MorePride And Prejudice By Jane Austen1615 Words   |  7 Pages‘Pride and Prejudice’ and ‘Wuthering Heights’ both conform to an idealized happy ending within the category of love and marriages within them, as you most consider the meaning of ‘happy ending’ in both novels. In Jane Austen’s 1813 novel ‘Pride and Prejudice’, â€Å"a single man in possession of a good fortune must be in want of a good wife, addressing the fixation of marriage for social progressionin thenineteenth-Century English society. In contrast, it is revealed in the book that the oppositeisRead MoreDivorce is not an exception anymore. In fact, with the rate of marriage decreasing over the past1200 Words   |  5 PagesDivorce is not an exception anymore. In fact, with the rate of marriage decreasing over the past decade, and the divorce rate remaining steady, we are likely to know more people who are divorced than those who are legally bound. During this semester we read four novels. Divorce was a common theme in all of them. Only a few generations ago, American culture rejected divorce as scandalous. Today, law, behavior, and culture embrace and even celebrate it. It got me to wondering about the children ofRead MoreEffects Of Divorce On Children And The Parents929 Words   |  4 PagesMarriage is a vow taken by two people who have chosen to spend the rest of their lives together. The decision to divorce was created to be able to release on spouse out of the relationship when the other broke their vows at a high enough offense. After the laws of divorce became much easier, the rates of divorce became a lot higher as well. If the laws to divorce became more difficult, the levels of divorce wouldn t be as high and many would think a more before entering into marriage so quicklyRead MoreThe Divorce Of Parents Harm Their Children1185 Words   |  5 PagesDoes the divorce of parents harm their children? Sadly this is a subject that is studied more and more due to the fact that so many marriages today are till divorce do us part instead of till death do us part. To truly understand and determine the effect of divorce on children one must look at t he evidence of both sides and with an open mind. On one side we have Judith S. Wallerstein, Julia Lewis, and Sandra Blakeslee say â€Å"yes† to the stated question. On the other side we have E. Mavis HetheringtonRead MoreDivorce Is The Best Or Worst For Kids?1093 Words   |  5 PagesMarriage is the legally recognized union of two people in a personal relationship, usually a man and a woman. (Kunz, 2012) When we think of marriage, we usually think of a man and a woman with children living happily ever after. Sometimes this is not the case in some marriages around the world. Usually there are some struggle and difficulties in marriages that could end in divorce. Divorce is more of a normal thing, more than half of the marriages end up in divorce. (Weaver Schofield, 2014) ThisRead MoreThe Negative Effects of Cohabitation1126 Words   |  5 PagesRunning Head: THE NEGATIVE EFFECTS OF COHABITATION The Negative Effects of Cohabitation University of Phoenix The Negative Effects of Cohabitation In today modern society with such high rate of divorce, many people are turning to cohabitation. With the 2000 census reporting 5.5 million cohabiting couples , up 3.2 million from 1990 ( Simmons O’Connell, 2003), it is clear that cohabitation is a trend that needs to be further examined. Cohabitation is viewed as an attractive alternative or

Saturday, December 21, 2019

Speech Love Is Deaf - 848 Words

â€Å"Love is deaf . . . you can’t just tell someone you love them. You have to show it.† Someone who desires to remain anonymous wrote this quote that directly portrayed my experience. My parents had always told me that they loved me, but because I was young and foolish, I doubted them. When would they ever prove it? Well, my question was answered one day when I least expected it: at school. That day changed my way of thinking for the better. That day I was shown that my parents had always loved me and that they always would. It all started when we went outside for recess. My friend Christine and I were playing with a kickball by the swings. Being only five, we weren t that great at it, and Christine kicked it over by the swings. I was the†¦show more content†¦For some odd reason, I still remember the ball that I was holding as I was launched into the sand. It was light red with bumps all over it. Maybe it was because I was too scared about what had happened to think about it. I could have focused on something less important instead of concentrating on the important. Maybe it was because I was â€Å"angry† at it for causing me to get hit by the swing. I will never know. But what I do know is that I remember exactly how it felt and that every day I replay in my head what happened after that. I stood up and looked around. No one noticed me. No one saw me get hit, not even the boy who threw the swing. I started toward Christine, feeling groggier with each step. When she finally looked over my way, Christine looked at me like I had grown another head. â€Å"What?† I asked. I was becoming aware of a warm trickle of liquid slipping down my face when I finally understood. I brought my finger up to my eye and flinched as the pain struck me, the numbness finally wearing off. A teacher spotted me and ran over to me, asking what happened. I was swept off to the nurse’s office where I was laid down and taken care of. The nurse told me that I had a gash above my right eye. She stated that it wasn’t all that bad, but she wanted to call my parents just in case. I rested on the bed as the nurse talked to my parents. Does this happen a lot? Am I going to be okay? Will my parents be mad? These were the thoughts that were racing through my

Friday, December 13, 2019

American Well Case Writeup Free Essays

American Well, a pioneer in online healthcare is at the crucial stage where the business opportunities look propitious at the same time it could make the company lose its perspective. It has the first-mover advantage with strong core competency. But still, some of the questions concerning the future of the company do needs to be addressed. We will write a custom essay sample on American Well Case Writeup or any similar topic only for you Order Now Some of the main questions that American Well faces are 1. Introducing the product to new customer segments 2. Capturing the international market 3. Pushing the products beyond health care industry. American well is currently serving the connectivity between patients and physicians. The new product â€Å"Team Edition† will serve the connectivity between primary care physicians (PCPs) and the specialist. They are also considering the prospect of online health care to Hospitals, Retail clinics and Pharmacies. The adverse effect is it could be too soon for American Well to launch a new undertaking, given their core services has not yet been adopted widely. Furthermore, this requires new hiring and additional funding. Stepping back has its own drawback of failing to capture the opportunity when there was demand. Meeting real-time excess demand with real-time excess capacity is a whole new world to be explored not only in health care but in many other industries. Also, the need for online health care has a great demand oversees too and American Well can explore its business in these new countries and can become a world leader in delivering virtual healthcare services in a many-to-many platform. Even though it is true that American Well has all the ideas and advantages – the main disadvantage is the lack of infrastructure and the awareness of an internet-based health service. There is still a lot of opportunities and work needed to be done with its present venture and stepping big foot too soon cannot be as beneficial for the company as it sounds. The â€Å"Team Edition† is an innovative product and the American Well should concentrate on its existing customer base i. e. the payers. They should probably do extensive market research on all these new opportunities. A research team could be formed including members from American Well and personnel from top insurance companies to explore the scope of extending its services to hospitals and pharmacies. They should wait for the â€Å"spending freezes† to be over and need to analyze on how the new health reforms will affect the existing organization. Another conceivable strategy could be a hybrid of Direct-To-Customer model and Business-To-Business model. American Well can establish a DTC model where they would directly sign up patients and doctors to a nationwide system along with their existing B2B model. This will cover more customer base. The short term goal How to cite American Well Case Writeup, Papers

Thursday, December 5, 2019

The Willingness of Young People Pivotal Role

Question: Describe about The Willingness of Young People for Pivotal Role. Answer: Introduction According to Bloom et al. (2011), many countries currently faces the challenge of taking care of the increasing number of the older generation. University students have a pivotal role in providing care to older people and their willingness to work with them which is always affected by their attitudes. Arguably, improvement in healthcare programmes and medical advancements as well as improved living standards implies that most people are living longer than in the previous generations (Rechel et al., 2013). Similarly, the number of older people are expected to grow significantly in the developed nations and it is estimated that by the year 2047, the number of older people will outgrow that of young people worldwide for the first time (Bloom et al., 2011). Essentially, longer expectancies in life represents a positive income, although, older generation might face numerous challenges. For instance increased negative attitudes towards them. This is because huge percentage of the older people have admitted that they have been discriminated due to their age (Eymard et al., 2012). In addition, past research also found out that ageism is the most commonly type of discrimination experienced ahead of gender, disability, ethnicity or religion based discrimination (Rechel et al., 2013). These problems facing the ageing population will continue to manifest themselves in accordance to the way the elder people receive healthcare services, social security, job opportunities as well as financial support. Besides, although, there are large number of adults who live longer, they are subject to negative attitudes as well as stereotypes. Furthermore, according to Bloom et al (2011) when children get into contact with older people, they tend to generally express more positive attitude towards the older people. Similarly, young people who interact regularly with adults at places of work tend to express positive attitude towards older people in general (Koh, 2012). Moreover, younger people living with their older relatives tend to develop more positive and ageist attitudes. Specifically, this current research tends to investigate the willingness of young people to relate and work with the older people. Problem Statement The number of elderly individuals has been on the rise compared to other age groups (Bloom et al., 2011). However, older people continue to face negative perception from the younger generation. The way the elder people are perceived by younger people, significantly influence the way they will be treated. According to Eymard et al. (2012), as individuals grow older, they negatively faces age stereotypes since they are usually perceived as incompetent, unattractive and senile. This makes the elderly people to feel that they are socially devalued. Besides, these stereotyping and perceptions as well as negative attitudes about the aging are common around the whole world (Bloom et al., 2011). Each and every person is in a continuous growing process and young individuals tend to be frustrated by the late life period. Generally, younger generation evaluates ageing like something which is bad and should be avoided at all costs (Gonalves et al., 2011). Furthermore, there are certain beliefs a bout the aging population which rely on societal knowledge. For instance, a belief that the elderly should avoid engaging in strenuous activities and exercise because their bones will break. This is a myth because exercising is more beneficial to most elderly people as it relieves them of stress and makes them become more active. Research Objectives The aim of this research is to explore young peoples attitude towards ageism. In line with this aim, the research intends to achieve the following objectives To evaluate the significance of multi age perspective on the students attitude towards ageism To examine the impact of contact quality on the students attitude towards ageism To investigate the impact of ageing anxiety on the attitude of students towards ageism To assess the impact of unfavourable attitude on the students towards ageism To evaluate the impact of favourable attitude on students towards ageism To examine the significance of willingness to work with older workers on the students attitude towards ageism. Literature Review Ageism According to Fritzsche Marcus (2013), ageism represent a form of prejudice and discrimination experienced particularly by seniors. Similarly, North Fiske (2013) defines ageism as an act of discrimination which is directed towards the elderly and takes the form of sexual apartheid or racial discrimination. Most of the elder people are active both physically and mentally regardless of their age and are willing to contribute. However, society marginalise seniors, disrespect them as well as make them to feel unwelcome. For instance advertisements in commercials depicts older people as outdated and lacks current knowledge concerning new technologies and modern culture Fritzsche Marcus (2013). On the same note, Azulai (2014) points out that ageism involves psychological change process which occurs from birth to death of every human being. In addition, North Fiske (2013) posits that elders are individuals with a lot of respect in the society. However, the constant changing family struct ures as a result of the living conditions have led to loss of respect for older people. Significance of multi age perspective on the students attitude towards ageism The decline in retirement security and economic uncertainty have made older people to return or remain in the workforce (Bloom et al., 2011). Previous research found out that older adults who seek for jobs spend longer time to get the jobs as compared to their younger counterparts (Gonalves et al., 2011). Furthermore, evidence also exists that discrimination in employment based on age has been on the rise in recent years. Therefore, social workers are tasked with the responsibility of making sure that older people who ae low income earners are included in the workplace by forming strong coalitions and finding champions to move their issues to the forefront. This is supported by Koh (2012) who demonstrate that in order to create a positive work place, each and every employee must learn unique values of work of various generational groups. This is because learning the unique value of various generational groups leads to the creation of a more harmonious and cooperative workplace (Eymar d et al., 2012). Besides, in creating a harmonious workplace, every employee should recognise that each and every generation group possess the right to do things in their own unique ways. Additionally, students should also take into account older peoples communication styles, values and experiences when they interact with such people (Koh, 2012) Impact of contact quality on the students attitude towards ageism According to Iweins et al. (2013), the quality of contact is effective and plays a significant role towards reducing ageism. Allan et al. (2014) and Boswell (2012) found out that children who experiences daily contact with older people in school developed positive attitude generally towards older people as compared to those children who do not get such contacts. Similarly, Iweins et al. (2013) argues that employees who interact with older people at their places of work tend to have more positive attitude towards the older generation as a whole. Likewise, Christian et al. (2014) believes that people living with their older relatives tend to develop ageist attitudes towards older people. The differences in the contact quality plays a pivotal role because the contact experienced at the places of work is different from that experienced at home. The contact at work place is more likely to be with competent and professional older individuals while home contact is most likely to be with old er dependent adults (Allan et al., 2014). Impact of ageing anxiety on the attitude of students towards ageism Ageing anxiety represents both the physical and psychological effects of getting older (Koh, 2012). It represents the combined anticipation and concern of loses that surrounds the aging process. Allan et al. (2014) points out that ageing anxiety is different from other types of anxieties and it overlaps with psychological wellbeing concept as well as attitudes concerning aging. Additionally, Christian et al. (2014) discovered that an individuals knowledge concerning aging are directly associated with anxiety level about aging that they experience. Furthermore, Boswell (2012) argues that students who have a higher anxiety levels about aging not only held bad attitudes towards the older people but also rated themselves more negatively when they grow old. Nevertheless, previous findings also revealed that young adults have greater negative stereotypes and attitude about aging and are the biggest proponents concerning aging. Nonetheless, younger people fear getting old because to them, g rowing old means they are closer to dyeing. Furthermore, growing old means that they will suffer mental disabilities and lose their independence (Koh, 2012). Impact of unfavourable attitude on the students towards ageism Previous research have revealed that there is a widespread negative attitude that students hold concerning the elderly. In this regard, some students view elder people as boring, depressing, and unexciting, have less technical skills and are more strenuous to manage (Boswell, 2012). Similarly, stereotyping and negative attitudes have also been reported by students concerning the older people. Besides, students have an attitude that older people are hard to train, lacks creativity, are too cautious and are not ready to be trained. Additionally, older people are viewed as those who cannot embrace and adopt to new technologies. According to Christian et al. (2014), improving attitudes leads to improvement of treatment given to the elderly. This is because attitude influence the way information will be interpreted, how knowledge will be acquired and ultimately results in changes in practice and behaviour. Impact of favourable attitude on students towards ageism Favourable attitudes by students such as older workers embrace quality of work and are committed employees in the organisation leads to positive work relations and contributes to high performances in a firm (Leung et al., 2011). Besides, Koh (2012) found out that younger people with positive attitude towards older generation like a belief that older people are dependable on the job and are willing to cooperate with others, have registered better relations with older individuals. Furthermore, a belief that older people are self-motivated helps in cultivating a positive culture in an organisation and improves the relationship between young people and older people. Significance of willingness to work with older workers on the students attitude towards ageism The society is ageing rapidly which makes the employment circumstances of older employees to become an important social issue (Bloom et al., 2011). Continued employment is considered a very important tool in old age as far as social integration is concerned. Ideally, active and engaged lifestyle gives older people brain benefits. Therefore, with the growing numbers of older workers and customers in the current business world, people should be willing to work and cooperate with the elderly in their jobs (Leung et al., 2011). Besides, younger people at the workplace should also be willing to help older workers at their jobs to enhance unity and foster harmony. Research Design and Methods This research will not only primary but also secondary research as well. Secondary research will entail using data collected from various journals, books, websites, newspapers as well as articles which discusses the attitude of students towards ageism. The secondary sources of data will be retrieved from reliable resources that are up date. However, this research will follow a mixed method of both qualitative and quantitative research to collect primary data (Smith, 2015). Research Design The current research will take the form of cross sectional research design, although it is necessary to carry out a longitudinal research. This is as a result of the limited time and budget allocated. Therefore, positivism philosophy will be adopted since this research is objective based. Justification of the research design Deductive approach will also be adopted in this research since there are many theories that surrounds the concept of students attitudes towards ageism which can be tested through factual data. Deductive approach is concerned with testing whether the existing assumptions and theories are valid. It analyses information from general point of view to specific inferences. Besides, the current research will follow descriptive design (Bryman Bell, 2011). Research Methodology Mixed methodology will be adopted in the current research. Mixed methodology implies that the research will use both qualitative and quantitative methods of data collection. Quantitative methods will be more useful in getting the opinions and insights of larger demography (Smith, 2015). On the other hand, qualitative method will be useful in gaining understanding of the underlying reasons, opinions and motivations concerning this topic (Bryman Bell, 2011). Research instruments This research will use questionnaires as data collection tools. Questionnaires will be of great help since it will enable the researcher to have a standardised data. Besides, findings from questionnaire are considered more reliable. This is due to the fact that questionnaires reflect the reality of the investigated phenomenon (Smith, 2015). Moreover, using questionnaires allows the researcher to collect sufficient data and information in order to realise the research objectives. Sampling University students will be selected using convenience sampling to participate in the questionnaire survey. The technique of convenience sampling is beneficial to this research since it is fast, easy to use and readily available (Smith, 2015). Besides, convenience sampling is cost effective and therefore will save the researcher a substantial amount of money. Data Collection Methods The university students will presented with questionnaires which they are expected completed in order to establish their opinion concerning their attitudes towards ageism. Each student will be expected to administer the questionnaire and select one answer from a set of different questions. The questions will be mostly based on the attitudes of the students towards ageism. The students will be expected to respond to all the questions which are expected to last for between 5-10 minutes. The researcher will then collect all the questionnaires from the students for analysis purposes. Data Analysis Data from the questionnaire survey will be analysed using statistical method which entails descriptive statistical analysis, regression as well as correlation analysis (Bryman Bell, 2011). More specifically, SPSS software which involves generating statistical graphs, tables, charts, frequency analysis will be used (Smith, 2015). All the responses from questionnaire surveys will be keyed in the SPSS program where descriptive analysis will be conducted and the results displayed through charts, graphs and tables. Besides, qualitative data will be analysed in accordance to the data obtained from the literature review. Value of the Study This current research has a significant value and is important on various key issues. It is important for the society and various business entities to understand the importance of students attitudes towards ageism. This will help in fostering a harmonious working relationship between young people and adults. For instance an understanding of the quality of contact and aging anxiety helps organisation to create a cordial working relationships between young people and adults (Koh, 2012). Likewise, such conclusions will enable students and academicians to gain valuable knowledge concerning significance of attitude towards ageism. Most of the organisations still do not understand the relationship and attitude of young people towards the older generation more so at the work place (Bloom et al., 2011). Therefore, the outcome of this research will provide insights to management of organisations as well as employees to understand on how best to treat and understand older people in order to improve relationship and performance in an organisation. Conclusion and recommendations This research intends to show the causal relationship between multi age perspective, contact quality, ageing anxiety, unfavourable attitude, favourable attitude, willingness to work and students attitude towards ageism. This research anticipates that in creating a positive work place, employees must learn unique work values of various generational groups. Further, the research argues that students with higher anxiety level about ageing always have bad attitudes towards older people. Therefore, younger people are encouraged to develop a favourable attitude towards older people such as view older the elderly as more dependable at work place to foster harmonious working relationships. Reference list Allan, L. J., Johnson, J. A., Emerson, S. D. (2014). The role of individual difference variables in ageism,Personality and Individual Differences,59(2), pp. 32-37. Azulai, A. (2014). Ageism and future cohorts of elderly: Implications for social work,Journal of Social Work Values and Ethics,11(2), pp. 1-12. Bloom, D. E., Boersch-Supan, A., McGee, P., Seike, A. (2011). Population aging: facts, challenges, and responses,Benefits and Compensation International,41(1), pp. 22. Boswell, S. S. (2012). Predicting trainee ageism using knowledge, anxiety, compassion, and contact with older adults,Educational Gerontology,38(11), pp. 733-741. Bryman, A. Bell, E. (2011) Business Research Methods. 2nd Ed. New York: Oxford. Christian, J., Turner, R., Holt, N., Larkin, M., Cotler, J. H. (2014). Does intergenerational contact reduce Ageism: When and How Contact Interventions Actually Work,Journal of Arts and Humanities,3(1), pp. 1. Eymard, A. S., Douglas, D. H. (2012). Ageism among health care providers and interventions to improve their attitudes toward older adults: an integrative review,Journal of gerontological nursing,38(5), pp. 26-35. Fritzsche, B., Marcus, J. (2013). The senior discount: biases against older career changers,Journal of Applied Social Psychology,43(2), pp. 350-362. Gonalves, D. C., Guedes, J., Fonseca, A. M., Pinto, F. C., Martn, I., Byrne, G. J., Pachana, N. A. (2011). Attitudes, knowledge, and interest: preparing university students to work in an aging world,International Psychogeriatrics,23(02), pp. 315-321. Iweins, C., Desmette, D., Yzerbyt, V., Stinglhamber, F. (2013). Ageism at work: The impact of intergenerational contact and organizational multi-age perspective,European Journal of Work and Organizational Psychology, 22(3), pp. 331-346. Koh, L. C. (2012). Student attitudes and educational support in caring for older peoplea review of literature,Nurse Education in Practice,12(1), pp. 16-20. Leung, S., LoGiudice, D., Schwarz, J., Brand, C. (2011). Hospital doctors' attitudes towards older people,Internal medicine journal,41(4), pp. 308-314. North, M. S., Fiske, S. T. (2013). Subtyping ageism: Policy issues in succession and consumption,Social issues and policy review,7(1), pp. 36-57. Rechel, B., Grundy, E., Robine, J. M., Cylus, J., Mackenbach, J. P., Knai, C., McKee, M. (2013). Ageing in the European union,The Lancet, 381(9874), pp. 1312-1322. Smith, J. A. (Ed.). (2015).Qualitative psychology: A practical guide to research methods. Sage.

Thursday, November 28, 2019

Practice and Concept of Racial Profiling

We live in time when the beneficence of many socio-political and judicial policies, currently institutionalized in Western countries, is being increasingly doubted not only by ordinary citizens but by governmental top officials, as well.Advertising We will write a custom research paper sample on Practice and Concept of Racial Profiling specifically for you for only $16.05 $11/page Learn More For example, up until comparatively recent times, it used to be considered something utterly unlikely for the governmental official from a country that officially takes pride in being multicultural, to come up with public statements against ‘celebration of diversity’ policy. Nowadays, this is no longer the case – on October 17, 2010, German Chancellor Angela Merkel had officially declared that the policy of multiculturalism in Germany had failed miserably. In his article, Weaver (2010) quotes Merkel: â€Å"This [multicultural] approach has failed , utterly failed† (Guardian.co.uk). Therefore, it is only logical to expect that in very near future, the validity of many previously unquestionable multiculturalism-related and ideologically charged notions, such as the assumption that the practice of racial profiling by police is utterly inappropriate, would be revised. In our paper, we will aim at substantiating this thesis to a further extent. Even a brief glimpse on how the concept of racial profiling is being defined by social scientists and political activists that consider themselves particularly ‘progressive’ (read – affiliated with neo-Liberal agenda), reveals an undeniable fact that, while coming up with a definition, these people intentionally strive to emphasize concept’s moral unsuitability. For example, according to Banks (2001): â€Å"Racial profiling constitutes the intentional consideration of race in a manner that disparately impacts certain racial minority groups, contributing to the disproportionate investigation, detention, and mistreatment of innocent members of those groups† (p. 1077). The definition of racial profiling by Ramirez et al. (2000) appears being just as emotionally charged: â€Å"Any police-initiated action that relies on the race, ethnicity, or national origin, rather than the behavior of an individual or information that leads the police to a particular individual who has been identified as being, or having been, engaged in criminal activity† (p. 3).Advertising Looking for research paper on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More Both of these definitions, of course, were meant to expose the policy of racial profiling as being inheritably wicked and above all – scientifically unsubstantiated, as definitions’ very sounding implies that there is no link between the notion of race and the notion of crime. Nevertheless, as crime-related statistical data in dicates – the specifics of a particular individual’s biological constitution are indeed reflective of his or her tendency to indulge in anti-social behavior. According to statistical data, available on the web site of U.S. Bureau of Justice Statistics, in 2009, out of 125,910 incidents of rape/sexual assault, African-Americans perpetrated 110,100 – that is, despite the fact that as of 2009, African-Americans constituted only 13.5% of America’s total population. Therefore, the suggestions that crime has color are absolutely legitimate, at least from statistical point of view. This is why, even though the ideological censorship of political correctness has not yet ceased being an integral element of public discourse in the West, many intellectually honest political scientists find it impossible to refrain from mentioning certain things, of which ordinary citizens are being perfectly aware. Risse and Zeckhauser’s (2004) article substantiates the valid ity of an earlier statement, as it does promote the idea that, when being assessed from conceptual perspective, the policy of racial profiling appears scientifically credible: â€Å"There is a significant correlation between membership in certain racial groups and the tendency to commit certain crimes† (p. 132). In its turn, this explains why, as time goes by; the process of designing crime prevention policies in the U.S. and other Western countries continues to be increasingly affected by considerations of racial profiling, although in rather subtle manner. In their article, Hernandez-Murillo and Knowles (2004) state: â€Å"According to the U.S. Department of Justice (2001), 16 state police agencies required collection of race and ethnicity data for all traffic stops as of March 2001, compared to only seven states in 1999† (p. 959). Thus, as of today, we have a peculiar situation.Advertising We will write a custom research paper sample on Practice and Concept of Racial Profiling specifically for you for only $16.05 $11/page Learn More On one hand, the very idea of racial profiling continues to draw ever-increased amounts of public criticism, with the stories about racist-minded White police officers being discriminate against representatives of racial minorities appearing not only in tabloid press and T.V. but also in many academic journals, with the authors of anti-racial profiling articles and studies suggesting that statistical data indicate that, despite being forbidden to have their decisions affected by different forms of racial biases, officers continue to treat non-Whites in particularly harsh manner. In their study, Anwar and Fang (2006) state: â€Å"Data on trooper searches continue to show that higher proportion of troopers tend to search a minority motorists than white motorists† (p. 127). Some authors go even as far as implying the there is a certain conspirological aspect in how representatives of racial minorities are being subjected to racial profiling. According to Hurwitz and Peffley (2005): â€Å"Crimes with white victims generate significantly faster police response times, higher probabilities of arrest and prosecution, and more ‘vigilant’ investigative strategies. There is also a sub ­stantial bias due to the race of the suspect with officers more likely to use more force, arrest, and traffic profiling with black than white suspects† (p. 765). On the other hand; however, the validity of an idea that the extent of one’s criminal mindedness is being rather biologically then environmentally predetermined, appears to be favored by the growing number of biologists and practicing criminologists, which why the concept of so-called ‘managerial penology’ has now achieved a full academic legitimacy. According to proponents of ‘managerial penology’, it makes very little sense to believe that, after having ‘done timeà ¢â‚¬â„¢ in jail, criminals would be able to reconsider their anti-social behavior and to reintegrate into society, simply because it is not the poverty, lack of education, or the exposal to racism, that turns one into a criminal, but rather the particulars of his or her biological constitution. As Feeley and Simon (1992) had put it in their article: â€Å"The new penology is neither about punishing nor about rehabilitating individuals. It is about identifying and managing unruly groups. It is concerned with the rationality, not of individual behavior nor even of community organization, but of managerial processes. Its goal is not to eliminate crime but to make it tolerable through systemic coordination† (p. 452). Apparently, for individuals as Feeley and Simon, it is perfectly clear that the reason why representatives of racial minorities are more likely than Whites to be stopped and searched by cops, for seemingly nor reason, is that they are more predisposed towards committ ing crimes – plain and simple.Advertising Looking for research paper on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More In their book Heumann and Cassak (2003) had made a good point, while implying that one’s tendency to refer to racial profiling as morally despicable or as entirely legitimate and valid crime-combating practice, depends on a perspective from which one chooses to discuss the issue: â€Å"We learned that profiling was, and is, a laudable police practice, some ­thing quite different from the ‘profiling’ of popular dis ­course. A ‘profiler’ is, in fact, a skilled law enforcement offi ­cer trained in drawing inferences about wrongdoers in a patterned series of cases† (p. 5). The fact that different people seem to adopt often diametrically opposite views on racial profiling, suggests that the public outcry, directed against legitimization of this policy, is discourse-related. In other words, it is namely because, during the course of last twenty-thirty years, citizens in Western countries were made to believe in the beneficence of ‘multic ulturalism’ and ‘political correctness’, which explains why many of these citizens tend to think of racial profiling as something utterly horrible. Yet, such their attitude can the least referred to as rationally motivated – after having been instilled with the irrational belief in people’s equality, most citizens find it emotionally uncomfortable to reconsider many of their discourse-related opinions, based upon such a belief. This; however, does not mean that their negative opinions, in regards to the subject matter, cannot be challenged – just as it has always been the case, throughout the course of human history, while opposing science, the irrationally defined ‘morality’ simply does not stand a chance, whatsoever. And, it is namely the revolutionary breakthroughs in the fields of genetics, medicine and I.T. that had taken place during the course of last century (particularly during the course of last few decades), upon which the proponents of racial profiling base their arguments. In the next part of our paper, we will explore this idea at length. In 1895, the founder of Positivist Criminology Cesare Lombroso had published his famous book L’Homme Criminel (Criminal Man), in which he had proven beyond any reasonable doubt that individual’s likelihood to commit especially horrendous criminal acts is being reflected by the extent of such individual’s anthropological atavism. According to Lombroso, the more physical appearance of a particular individual is being affected by anthropological atavism, the more such an individual would be likely to act as a slave to its animalistic urges, extrapolated in his or her tendency to act as ‘natural born criminal’: â€Å"Atavism remains one of the most constant characteristics of the born criminal, in spite of, or rather together with pathology. Many of the characteristics of primitive man are also commonly found in the born crimin al, including low, sloping foreheads, overdeveloped sinuses, overdevelopment of jaws and cheekbones, prognathism, oblique and large eye sockets, dark skin† (2006, p. 222). The reason why bearers of atavistic traits appear being genetically predisposed towards committing crime is that their biological underdevelopment prevents them from being able to suppress their animalistic urges while living as the members of a society ruled by law. On evolutionary ladder, such individuals are being placed in the middle between the species of primates and the species of homo sapiens. It is perfectly understandable that, in society where the policy of multiculturalism enjoys an official status, and where politically active citizens are being often accused of uttering ‘hate speech’, while simply articulating their opinions publically, there are simply no objectively existing preconditions for law enforcement agencies to officially incorporate Lombroso’s theory as an integr al part of deployed investigative techniques. However, this does not make the methodology of Positivist Criminology less valid, especially in the light of recent genetics-related scientific discoveries. As it was pointed out by Williams (2007): â€Å"He (Lombroso) first hypothesized that the tendency to commit crime was mirrored in the physical characteristics, or physiognomy, of the criminal, including such factors as race and color†¦ As gene research advances, some behavioural traits that were designated as learned are being cast into doubt and reclassified as innate† (Humanities Social Sciences). This is exactly the reason why, despite the fact that the theory of Positivist Criminology is still being officially regarded as ‘non-scientific’, police officers do resort to its utilization, especially in times when society applies an additional pressure upon them to increase the effectiveness of their crime-combating strategies. For example, during the course of a few days, before the opening of Moscow Olympics in 1982, Moscow’s police had simply gathered up city’s residents with clearly defined atavistic traits about their appearance and had sent them outside of the city, for duration of Olympic Games. As a result, not a single incident of criminal activity has been reported in this city of eight millions, while the Games were on. Therefore, the practice of racial profiling should actually be referred to as the practice of ‘atavistic profiling’ – in the eyes of a police officer, it makes very little difference whether the potential suspect is Black or White, but only whether suspect’s physical appearance radiates viciousness. The fact that the representatives of racial minorities are more likely to complain about being ‘profiled’ than Whites, has nothing to do with police’s racialist maliciousness, but rather with ‘ethnically unique’ citizens’ lessened val ue as representatives of homo sapiens specie. Despite seeming inappropriateness of an earlier statement, its legitimacy can be proven with ease. For example, we are all aware of what happened to former Europe’s colonies in Africa, after these colonies had shaken off the ‘yoke of White oppression’ – within a matter of decade, after the ‘liberation’, African tribal societies have regressed back to the state of primeval savagery. As of today, essentially the whole continent of Africa (with probable exception of South Africa and Africa’s Islamic states) has been effectively reduced into the battleground for tribal war of ‘everybody against everybody’. And, it is namely the raging epidemic of gang-rape, which defines the criminological realities in today’s Africa. In her article, Moore (2005) states: â€Å"According to estimated figures, sixty children are raped every day in South Africa. Children under eighteen years of age represent an estimated 40% of South African rape victims†¦ It is a popular myth in AIDS-ravaged South Africa that having sex with a virgin cures the disease† (p. 1469). While being confronted with unsightly realities of post-colonial Africa, liberally minded Western social scientists continue to blame just about everything on the ‘legacy of colonial oppression’. For example, while trying to come up with explanation as to why in today’s South Africa, women are being recommended not to leave their house alone, in her article Moffett (2006) says: â€Å"I argue that contemporary sexual violence in South Africa is fuelled by justificatory narratives that are rooted in apartheid practices that legitimated violence by the dominant group against the disempowered† (p. 129). Nevertheless, despite her article’s superficial sophistication, author had failed at explaining why someone, presumably ‘underpowered’ and ‘hungryâ€⠄¢, would think of raping women as such that constitutes his life’s foremost priority? In order for us to address this question, we will need to make reference to one of the most recent scientific publications that effectively dispels the myth of people’s equality, upon which the critics of racial profiling base their arguments. In their book I.Q. and the wealth of nations, Lynn and Vanhanen (2002) were able to prove that, the actual reason why Africa’s natives continue to suffer from poverty, while never ceasing to explore their criminal-mindedness by gang-raping women and by indulging in tribal warfare, has nothing to do with the ‘legacy of apartheid’, but with the simple fact that, in terms of intellectual development, most Africa’s natives did not advance too far from their immediate biological predecessors: â€Å"I.Q.s appear to be determined by the racial and ethnic make-up of the populations†¦ The I.Q.s of 96 are typical of Euro peans. The countries with lower proportions of Europeans and higher proportions of Native Americans, Blacks, and Mestizos have lower I.Q.s† (p. 63). According to Lynn and Vanhanen, in such African countries as Equatorial Guinea and Central African Republic, the average rate of citizens’ Intellectual Quotidian (I.Q.) is being estimated as low as 50; whereas, Whites that score lower than 70, while I.Q. tested, are being declared mentally deficient. And, one’s inability to operate with abstract categories, reflected by his or her particularly low I.Q. score, is nothing but an indication of person’s existential atavism. Why is it that the perpetrators of particularly violent crimes often have a hard time realizing the sheer wickedness of their criminal behavior? This is because, due to their intellectual primitiveness, most of these criminals do not even understand what the concept of morality stands for, in the first place. The reason why Medias refer to part icularly gruesome crimes as ‘inhuman’, ‘bestial’ and ‘savage’, is that their perpetrators cannot be assumed fully human. The qualitative essence of their existential mode, reflected by the extent of their atavistic criminal-mindedness, is being predetermined by objectively existing biological laws, which apply to people as much as they apply to animals and plants. For example, dog breeders are well aware of the fact that particularly vicious dogs are always the ones that had been affected by crossbreeding the most. Pit-bulls, famed for their unprovoked attacks on even small children, have been artificially cross-breaded out of genetic pool, associated with thirty different dog pedigrees. Apparently, the same applies to people – the more they are being affected by racial mongrelization, the more they will be likely to derive pleasure out of indulging in criminally violent behavior. Out of 812 acts of homicide that had taken place in Puert o-Rico, during the course of 2009, only 25 were recognized as having been premeditated. This explains country police’s utter operational inefficiency in trying to prevent crime – unlike what it is the case among Whites, even a slightest domestic dispute among Puerto-Ricans can unpredictably escalate into a full-scale gunfight. There is also a sociological aspect to our line of argumentation – apart from the fact that in many instances, people who complain about being ‘racially profiled’ appear ‘natural born criminals’ from anthropological point of view, it is perfectly logical for police officers to treat them with suspicion, on the account of these people being endowed with collectivist mentality alone. In her article, Mkabela (2005) states: â€Å"Most African worldviews emphasize belongingness, connectedness, community participation and people centeredness† (p. 180). In all probability, it never occurred to the author that her characterization of African worldviews could also be used to define the subtleties of how people from Third World address life’s challenges, in general. Unlike what it is the case with urbanized Whites, known for their intellectual openness and their ability to adjust their behavior to the demands of impersonal law, representatives of racial minorities in Western countries consciously choose in favor of essentially tribal mode of existence, while never ceasing to manifest the strength of their primitive religiosity, whenever opportunity presents itself. Immediately, after having arrived to Western countries, instead of trying to integrate into the host society, ‘ethnically unique’ immigrants embark upon creation of their own societies within the society. In its turn, this explains why nowadays, every large Western city features its own ethnic ‘ghettos’, where residents feel comparatively safe while indulging in criminal behavior – after all, c ops try not to enter these ‘ghettos’, even while being called upon, in order not to provoke racial riots. It appears that many representatives of racial minorities simply do not realize a simple fact that that the strength of their tribal ‘belongingness’ and ‘connectedness’, is being counter-proportionate to their ability to function as productive members of post-industrial urban societies. In the eyes of tribally minded individual, the notions of Western civil and criminal laws have no significance, simply because such an individual lives by his own tribal laws, the most important of which are: make babies, invite more relatives to come to the country, and demand even more individual rights and privileges. And, people who prefer observing their own tribal/religious laws, as opposed to observing Western secular and impersonal laws, are best described as criminals-in-making, because they perceive the very concept of civil law as something utterl y alien to the workings of their mentality. This is why, upon being exposed to the sight of ‘ethnically unique’ person, with the towel wrapped around his head, police officers would be naturally inclined to ask such an individual for I.D., especially if encountering him at the airport or another public place. Therefore, under no circumstances should we refer to police officers’ tendency to utilize racial profiling as the indication of their professional unfitness – one the contrary, the more they appear being comfortable with the concept, the better would be their chances to attain professional excellence. Apparently, police officers’ tendency to treat representatives of racial minorities with suspicion is not an indication of their irrational biasness towards the people of color, but rather an indication of their psychological adequateness. After all, we do not accuse people who refuse to jump in the lake filled with hungry crocodiles of being â₠¬Ëœbiased’ against the reptiles. Similarly, we cannot be accusing cops for being extra vigilant, while dealing with people whose biological/mental constitution makes them predisposed towards committing crime, without giving any seconds thoughts, whatsoever. Thus, the fact that a variety of strongly negative connotations is being currently ascribed to the policy of racial profiling, should be discussed as yet another proof that the process of designing socio-political policies in America continues to be the least observant of the notion of sanity. For example, just as acquittal of O.J. Simpson in 1995 had shown, in today’s America it is quite possible for ‘ethnically unique’ perpetrator of a violent crime to walk out of the courtroom a free man, if his or her defenders prove that the element of racial profiling did play part in how investigators proceeded with executing their professional duties. During the course of L.A. racial riots in 1992, police office rs had been given an unofficial order not to get involved, even in time when Whites were dragged out of their cars and killed on the spot by the raging mobs of Blacks, in front of cops’ very eyes. In the aftermath of hurricane Katrina that had struck New Orleans in 2005, city’s White residents had suddenly realized that they could only rely upon themselves, when it came to defending their property from hordes of looting Blacks – cops simply would not get involved, while being terribly afraid of losing their jobs, on account of ‘racial profiling’ accusations. It appears that, just as it is being the case with racism/multiculturalism related discourse, racial-profiling related discourse is best discussed in terms of psychiatry. At first, ‘progressive’ policy-makers create preconditions for criminally minded people from Third World, affected by anthropological and intellectual atavism, to be able to immigrate to America. After that, the sa me policy-makers occupy themselves with trying to figure out how newly arrived immigrants’ inborn criminal mindedness can be addressed, without references being make to the specifics of these people’s racial affiliation. As a popular saying goes – when God decides to punish people, he deprives them of their ability to think logically. It is needless to mention, of course, that while trying to increase the levels of interracial tolerance in American society, the neo-Marxian proponents of a welfare state (which they envision as a multicultural utopia, where citizens’ celebrate diversity’ 24/7), never cease preferring to reside in White suburbia, on the account of suburbia’s schools being ‘better’ and streets being ‘safer’. Therefore, in order for these people to reconsider their views on racial profiling, they would have to be prompted to take a leisurely stroll along the street in just about any ethnic ‘ghettoà ¢â‚¬â„¢, after it gets dark. The earlier articulated arguments point to the fact that, within the contextual framework of discourse about racial profiling, there can be only two sides: the side of sanity and the side multiculturalism-related insanity. In its turn, this explains an utter methodological inconsistency in how law enforcement agencies go about ensuring citizens’ safety. On one hand, many spokespersons for these agencies never get tired defending the appropriateness of a practice of taking tubes with toothpaste away from the passengers, before they board planes, regardless of passengers’ ethnic affiliation. But on another hand, they simultaneously speak in favor of allowing specific categories of citizens to be exempted from the law, due to these citizens’ inability to even understand what the concept of secular and impersonal law is all about. For example, during the course of 2010 Winter Olympics in Vancouver, Sikh-Canadians were allowed to carry hu ge daggers in public, as these people’s lawyers had proven that forbidding Sikh-Canadians to carry illegal knives in public would constitute the violation of their civil rights. In his article, Kaur (2009) states: â€Å"Sikhs will be able to carry a kirpan (Sikh article of faith), to Olympic events if they adhere to a number of conditions, the Vancouver 2010 Integrated Security Unit has announced. ISU doesn’t expect the religious item will pose an additional risk at venues† (Global Sikh News). To paraphrase George Orwell – all people are equal, but some people are more equal than the others are. As we have illustrated in the earlier parts of this paper, the policy of racial profiling is scientifically legitimate, even though people who lack education would most definitely think otherwise. In a similar manner, during the course of 19th century, uneducated people thought of a practice of vaccination as ‘morally wicked’. Yet, the practical imple mentation of this policy in the realm of public health care had helped saving millions of lives. Given the fact that many historical parallels could be drawn between the policy of enforced vaccination and the policy of racial profiling (both policies continue to be actively resisted by self-proclaimed ‘experts on morality’), it would not be much of an exaggeration to suggest that the full implementation of policy of racial profiling in the realm of American jurisprudence, would result in drastic improvement of criminological situation in this country. There is only one barrier on the way of such implementation – the fact that many Americans continue to profess the values of multiculturalism as representing an undeniable truth-value. However, there are good reasons to believe that it is only the matter of time, before America would follow the footsteps of Switzerland and Germany, where policy-makers had proven themselves responsible enough to end the insanity of m ulticulturalism, at least in conceptual sense of this word. And, once the hawks of multiculturalism are being stripped of their governmental offices, there would be very little resistance on the way of racial profiling full legitimization. As it happened many times, throughout the course of history, once science triumphs over ‘morality’ and artificially induced ‘tolerance’, the society where it happened automatically becomes much more tolerant and moral. References Anwar, S. Fang, H. (2006). An alternative test of racial prejudice in motor vehicle searches: Theory and evidence. The American Economic Review  96(1), 127-151. Banks, R. (2001). Race-based suspect selection and colorblind equal protection doctrine and discourse. UCLA Law Review 48(2), 1075-124. Feeley, M. Simon, J. (1992). The new penology: Notes on the emerging strategy of corrections and its implications, Criminology 30(4), 449–474. Hernandez-Murillo, R. Knowles, J. (2004). Racial profiling or racist policing?  International Economic Review 45(3), 959-989. Heumann, M. Cassak, L. (2003). Good cop, bad cop: Racial profiling and  competing views of justice in America. Studies in crime and punishment. New York: Peter Lang. Hulme, D. (1990). The political Olympics: Moscow, Afghanistan, and the 1980  U.S. boycott. New York, Praeger. Hurwitz, J. Peffley, M. (2005). Explaining the great racial divide: Perceptions of fairness in the U.S. criminal justice system. The Journal of Politics 67(3), 762- 783. Kaur, A. (2009). Sikh can carry kirpans to Olympics events in Canada. Global  Sikh News. Web. Lombroso, C. (1911) 2006. Criminal man. Durham: Duke University Press. Lynn, R. Vanhanen, T. (2002). IQ and the wealth of nations. Westport, Conn: Greenwood Publishing Group. Mkabela, Q. (2005). Using Afrocentric method in researching indigenous African culture. Qualitative Report 10(1), 178-189. Moffett, H. (2006). ‘These women, they force us to rape them†™: Rape as narrative of social control in post-apartheid South Africa. Journal of Southern African  Studies 32(1), 129-144. Moore, A. (2005). Endangered species: Examining South Africa’s national rape crisis and its legislative attempt to protect its most vulnerable citizens.  Vanderbilt Journal of Transnational Law 38(5),1469-98. Morbidity and Mortality Weekly Report (2006). Homicides among children and  young adults – Puerto Rico, 1999 – 2003. Web. Ramirez, D. et al. (2000). A resource guide on racial profiling data col ­lection  systems: Promising practices and lessons learned. Boston: Northeast ­ern University Press. Risse, M. Zeckhauser, R. (2004). Racial profiling. Philosophy and Public Affairs  32(2), 131-170. U.S. Department of Justice. (2009). Criminal Victimization, 2009. Web. Weaver, M. (2010). Angela Merkel: German multiculturalism has ‘utterly failed’. Guardian.co.uk. Web. Williams, I. (2007). Criminal man rediscovered. Humanities Social Sciences  Online. Web. 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Sunday, November 24, 2019

Banking Scenario in Bangladesh Essay Example

Banking Scenario in Bangladesh Essay Example Banking Scenario in Bangladesh Essay Banking Scenario in Bangladesh Essay Rahmanir Rahim An Empirical Study of Performance of Islamic Banks in Bangladesh with special reference to Islami Bank Bangladesh Ltd By Shah Abdul Hannan, Former Secretary, Ministry of Finance, Government of Bangladesh and M. Fariduddin Ahmad Deputy Executive President Islami Bank Bangladesh Limited ________________________________________________ SECTION – I Banking Scenario in Bangladesh When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan, all the bigger local banks became inoperational.. Starting with such a humble   condition, the Banking Sector of Bangladesh has grown to a great extent. At present there are 49 Banks in Bangladesh. The structure of Banking in Bangladesh is as under: 1. Nationalized Commercial Banks 4 2. Specialized Banks 5 3. Private Sector Commercial Banks : a) Conventional Banks25 b) Islamic Banks 5 4. Foreign Commercial Banks a) Conventional Banks 9 b) Islamic Banks 1 Total49 - SECTION – II Genesis of Islamic Banking in Bangladesh In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to reorganize its economic and financial system as per Islamic Shariah. In January 1981, the then President of People’s Republic of Bangladesh while addressing the 3rd Islamic Summit Conference held at Makkah and Taif suggested, â€Å"The Islamic countries should develop a separate banki ng system of their own in order to facilitate their trade and commerce. This statement of the President indicated favourable attitude of the Government of the People’s Republic of Bangladesh towards establishing Islamic banks and financial institutions in the country. Earlier in November 1980, Bangladesh Bank, the country’s Central Bank, sent a representative to study the working of several Islamic banks abroad. In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to participate in establishing a joint venture Islamic Bank in the private sector. They found a lot of work had already been done and Islamic banking was in a ready form for immediate introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association (BIBA) made significant contributions towards introduction of Islamic banking in the country. They came forward to provide training on Islamic banking to top bankers and economists to fill-up the vacuum of leadership for the future Islamic banks n Bangladesh. They also held seminars, symposia and workshops on Islamic economics and banking throughout the country to mobilise public opinion in favour of Islamic banking. Their professional activities were reinforced by a number of Muslim entrepreneurs working under the aegis of then Muslim Businessmen Society (now reorganised as Industrialist Businessmen Association). The body concentrated mainly in mobilising equity capital for the emerging Islamic bank. At last, the long drawn struggle to establish an Islamic bank in Bangladesh became a reality and Islami Bank Bangladesh Limited was established on 30th March, 1983 in which 19 Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial institutions and government bodies of the Middle East and Europe including IDB and two eminent personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality. Later, other 5 Islamic Banks were established in the country. 7 conventional banks have so far established Islamic Banking branches in some major cities. SECTION – III Comparative Position of Islamic Banking and Conventional Banking in Bangladesh. Deposits: Total deposits of the Banking Sector of Bangladesh stood at Taka 1,415,877 million as on 30. 06. 2005 of which Islamic Bank mobilized deposit to the tune of Taka 3031897 million i. e. their share in total deposits of the Banking system is 11. 98%. A detail analysis of deposits of all Banks vis-a-vis deposits of Islamic Banks by Type of Accounts is given in the following Table: Table – I Deposits distributed by Types of Accounts Amount in Million Taka (US $ 1=Taka 67. 50) |Sl. No. |Types of Accounts |All Banks |Islamic Banks |Share of Islamic banks (%) | | | |Nos. of Accounts |Amount | | | |Nos. of Accounts |% of total | | | |Nos. f Accounts | | |a) Long Term |91,664 |1. 11 | | |Project Finance | | | | |Amount |% of total |Amount |% of total | | |Urban |999,742 |89. 8 |152,146 |97. 27 |15. 22 | |Rural |117,579 |10. 52 |4,264 |2. 73 |3. 63 | | Total |1,117,321 |100 |156,410 |100 | | [pic] [pic] Islamic Banks All Banks Advances classified by Geographical Areas The Islamic Banks In Bangladesh could not yet make much headway in providing finance to rural areas as their operations are still limited to urban areas. The Islami Bank Bangladesh Limited, the first established Islamic Bank in Bangladesh, has reached to 4560 villages (out of 68,000 villages) of the country through their 101 branches and have so far provided finance amounting to Taka 4362 million to 164,116 rural poors, the recovery rate of which is 99%. Section – IV Operations of Islamic Banking in Conventional Banks In Bangladesh 6 conventional Banks namely, Prime Bank Limited, Dhaka Bank Limited, City Bank Limited, Premier Bank Limited, South East Bank Limited, Jamuna Bank Limited have taken the initiative of providing Islamic banking facilities within their existing set-up. They have established full-fledged Islamic branches and mobilized substantial amount of deposit, making investment and providing all types of banking services under Islamic modes. A Bank namely ‘Exim Bank’ was incorporated in 2002 as a conventional Bank but subsequently converted to an Islamic Bank. More conventional Banks are contemplating to establish Islamic branches in the near future. The above Banks have formed Shariah Council to oversee the operations of their Islamic Branches and they are also member of the Central Shariah Board for Islamic Banks of Bangladesh. The growth trend of deposit and investment of Islamic branches of the above 6 conventional Banks is highly satisfactory. Section – V Evaluation of Performance of Islamic Banks: Tools Instruments employed. 1. 00Concept and definition of Islamic Banking: General Secretariat of the OIC defined Islamic Banking as An Islamic Bank is a financial institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt payment of interest on any of its operations. 6. 02Modes of Deposit: Deposits are accepted by the Islamic Banks under the following Modes: 6. 02. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Al-Wadeeah: The word Al-Wadeeah has been derived form the Arabic word Wadyun which means to keep/to deposit to give up, leave off etc. In Islamic Banking, the principle of Al-Wadeeah means, the Bank receives money from the clients for safe-custody with the condition to return the money on demand by the customer. Current Accounts are opened under this principle. Depositors authorise the Bank to use the money at Banks risk. The customer is not entitled to receive any benefit from the Bank. 6. 02. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Al-Mudarabah: The word Mudaraba has been derived from the Arabic word Darb/Darbun which means movement to earn rahmat (Munafa) of Allah. Mudaraba is a form of partnership where one of the contracting parties called the Shahib-al-Maal or the Rabb-ul-Maal (the financier) provides a specified amount of capital and acts like a sleeping or a dormant partner while the other party, called the Mudarib (entrepreneur), provides the entrepreneurship and management for currying on any venture, trade, industry or service with the objectives of earning profits. The Mudarib is in the nature of a trustee as well as an agent of the business. Profit is distributed as per preagreed ratio while the loss is entirely borne by the Shahib-al-Maal. . 02. 3Al Mudarabah deposit Products: There can be many types of Mudarabah deposit products. The following are the title of some of the Mudarabah Products so far introduced by the Islamic Banks in Bangladesh:  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Special Notice Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Savings Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Term Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Savings Bonds  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Special Savings (Pension)  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Monthly Profit Deposit Scheme  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Muhar Savings   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Cash Waqf Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Hajj Deposit. 6. 03Modes of Investment: Investment can be made by the Islamic Banks under the following Modes: However, the Islamic Banks in Bangladesh have so far introduced Bai-Murabaha, Bai-Muajjal, Bai-Salam Hire purchase under Shirkatul Meelk Modes. 6. 03. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Profit Loss Sharing Mode ?  Ã‚  Ã‚  Ã‚  Ã‚   Shirkat/Musharaka The term refers to a financing technique adopted by Islamic Banks. It is an agreement under which the Islamic bank provides funds which are mingled with the funds of the business enterprise and others. All providers of capital are entitled to participate in the management but not necessarily required to do so. The profit is distributed among the partners in pre-determined ratios, while the loss is borne by each partner in proportion to his contribution. 6. 03. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Profit sharing Loss bearing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Al-Mudarabah The word Mudaraba has been derived from the Arabic word Darb/Darbun which means movement to earn rahmat (Munafa) of Allah. Mudaraba is a form of partnership where one of the contracting points called the Shahib-al-Maal or the Rabb-ul-Maal (the financier) provides a specified amount of capital and acts like a sleeping a dormant partner while the other party, called the Mudarib (entrepreneur), provides the entrepreneurship and management for caring on any venture, trade, industry or service with the objectives of earning profits. The Mudarib is in the nature of a trustee as well as an agent of the business. Profit in distributed as per preagreed ratio while the loss is entirely borne by the Shahib-al-Maal. . 03. 3  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Mode (Buying Selling): ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Murabaha: Literally, sale on profit. Technically, a contract of sale in which the seller declares his cost and profit. This has been adopted as a mode of financing by a number of Islamic Banks. As a financing technique, it involves a request by the client to the bank to purchase a certain item for him. The bank does that for a definite profit over the cost which is settled in advance. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Muajjal: Literally, a credit sale. Technically, a financing technique adopted by Islamic Banks. It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in installments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Salam: This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be effected unless the goods are in existence at the time of the bargain. But this type of sale forms and exception, to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this type of sale are mainly tangible things but exclude gold or silver as these are regarded as monetary values. Barring these, bai-salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic Banks. It is usually pplied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Ishtisna: Istisnaa is a sale contract by which al-sani (the seller) on the basis of the order placed by al-mustasni (the buyer) after having manufactured or otherwise acquired al-masnoo (the goods) as per specification sells the same to al-mustasni for an agre ed upon price and method of settlement whether that be in advance, by instalments or deferred to a specific time. It is a condition of Istisnaa contract that al-sani should provide either the raw material or the labour.   Ã‚  Ã‚  Ã‚  Ã‚   Bai-Istijrar: Istijrar means purchasing goods from time to time in different quantities. In Islamic jurisprudence Istijrar is an agreement where a buyer purchases something from time to time; each time there is no offer or acceptance or bargain. There is one master agreement where all terms and conditions are finalized. There are two types of Istijrar:   Ã‚  Ã‚  Whereby the price is determined after all transactions of purchase are complete.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Whereby the price is determined in advances but the purchase is executed from time to time. The first kind is relevant with the Islamic mode of financing. This kind is permissible with certain conditions. a. In the case where the seller discloses the price of goods at the time of each transaction; the sale becomes valid only when the buyer possess the goods. The amount is paid after all transactions have been completed. b. If the seller does not disclose each and every time to the buyer the price of the subject matter, but the contractors know that it is being sold on market value and the market value is specified and determined in such a manner that it does not vary and it does not lead to differences of the contractors. . If at the time of possession, the price of subject matter was unknown or contractors agree that whatever the price shall be, the sale will be executed. However, if there is significant difference in the market price and the agreed price, it may cause conflict. In such a case, at the time of possession, the sale will not be valid. However, at the time of settlement of the payment, the sale will be valid. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Musawamah: It refers to normal sale in which cost price is not known. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Surf: It refers to the sale of gold, silver and currency.   Ã‚  Ã‚  Ã‚  Ã‚   Bai-Muqayada: It refers to barter sale excluding currency sale. 6. 03. 4Rent Sharing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Ijarah (Lease) The term Ijarah has been derived from the Arabic works ‘’ (Ajr) and ‘ ’ (Ujrat) which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of service of an asset. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. ?  Ã‚  Ã‚  Ã‚  Ã‚   Ijarah wa iqtina (Hire Purchase): This term refers to a mode of financing adopted by Islamic Banks. It is a contract under which the Islamic Bank finances equipment, building or other facility for the client against an agreed rental together with an undertaking from the client to purchase the equipment or the facility. The rental as well as the purchase price is fixed in such a manner that the bank ets back its principal sum along with some profit which is usually determined in advance. ?  Ã‚  Ã‚  Ã‚  Ã‚   Hire purchase under Shirkatul Melk (HPSM): Hire Purchase under Shirkatul Melk is a special type of contract which has been developed through practice. Actually, it is a combination of three contracts viz: Shirkat, Ijarah and Sale. Shirkat means partnership. Shirkatul Melk means share in ownership. When two or more pers ons supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul Melk contract. . 03. 5Production Sharing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Mozarah: It is a contract in which one person agrees to Till the land of the other person in return for a part of the produce of the land. ?  Ã‚  Ã‚  Ã‚  Ã‚   Musaqah: A contract in which the owner of the garden shares its produce with another person in return for his services in irrigating the garden. 6. 03. 6Quard-al-Hasana: A virtuous loan. A loan with the stipulation to return the principal sum in the futurewithout any increase. 7. 00Steps in the investment operations: ?  Ã‚  Ã‚  Ã‚  Ã‚   Induction of the client ?  Ã‚  Ã‚  Ã‚  Ã‚   Application ?  Ã‚  Ã‚  Ã‚  Ã‚   Processing Appraisal   Ã‚  Ã‚  Ã‚  Ã‚   Sanction ?  Ã‚  Ã‚  Ã‚  Ã‚   Documentation ?  Ã‚  Ã‚  Ã‚  Ã‚   Disbursement ?  Ã‚  Ã‚  Ã‚  Ã‚   Monitorin g, End-use, Supervision Recovery 8. 00Fixation of sale price of Bai-Murabaha goods: A. Purchase price of the Goods Plus (+) B. Other expenditure incurred by the Bank in connection with the purchase, transportation and storage before sale of the goods to the client viz: i)Conveyance ii)Commission, if any, paid to agent iii)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cost of remittance of Fund iv)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Transportation cost v)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Insurance vi)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Godown rent ii)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Other expenses if any. C. Total Cost Price (A+B) D. Profit Mark up E. Sale Price 8. 01Fixation of Rent under Rent Sharing Mode: 8. 01. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diminishing Balance Method: In this method the installments are not equal. Principal installment remains equal. Rent unequal i. e. calculated on t he outstanding principal. As at the initial stage principal outstanding remain higher so rent is higher which make the installment size larger. 8. 01. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Equal Installment Method (Annuity Method): In this method the installments are equal. Principal Rent are unequal. Rent is calculated on the outstanding principal and the rest amount of installment is adjusted against Principal. At the initial stage principal outstanding remain higher so rent is higher anddecreased gradually. At the initial stage principal adjustment is less and increases gradually. The main difference between the Diminishing Balance Method and Annuity Method is that the Principal adjustment is not equal. As at the initial stage Principal adjustment is less the total Rent in this method is more than the Diminishing Balance Method. 8. 01.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Equal Installment Method (Equal Rent Method): In this method the installments are equal. Principal Rent remain equal. Rent is calculated for the whole period of Investment considering diminishing balance of Principal equally distributed all over the repayment period. Though the total rent on the investment in this case is equal to that of Diminishi ng Balance Method but the effective R. R. is less due to opportunity loss on the calculated but not realized rent for the 1st half of the repayment period. 9. 00Nature of Shariah Lapses generally occur in Investment Operations: . 01  Ã‚   Cash facilities are allowed to the client instead of investment through buying and selling of goods. 9. 02  Ã‚   Fresh investments are allowed for adjustment of previous liability of the client without proper buying and selling of goods. 9. 03  Ã‚   Letter of authority is not obtained from the client in case of investment against Bai-Murabaha (Post Import) and Bai-Murabaha under dealership license in the name of Investment Clients. 9. 04  Ã‚   Rent/Profit is charged and recovered for the gestation period under Hire Purchase Sunder Shirkatul Melk investment. . 05  Ã‚   Pre-fixed profit is recovered in the Pre-shipment Musharaka Investment instead of actual profit. 9. 06  Ã‚   Cash Memo obtained in the name of Client instead of in the nam e of the Bank. 9. 07  Ã‚   Cash Memo is not at all obtained. 9. 08  Ã‚   Agreements are kept blank and undated. 9. 09  Ã‚   Back dated/Post Dated cash Memo is obtained. 9. 10  Ã‚   The application for Payment Order/Demand Draft/T. T. etc. is signed by the Client instead of signing the same by the Bank. 9. 11  Ã‚   The amount of disbursement does not agree with the amount of Cash Memo. 9. 2  Ã‚   Goods are received directly by the Client instead of receipt of goods first by the Bank and then by the Client. 9. 13  Ã‚   Documents of receiving goods by the Branch are not available in the Branch record: 9. 14  Ã‚   Bai-Muajjal investment is allowed in case of Stock-lot items. 10. 00 Distribution of Profit to Mudaraba Depositors: The principles of calculation and distribution of profit to Mudaraba Depositors generally followed by different Islami Banks are as under: 10. 01. Mudaraba Depositors share income derived from investment of their fund. 0. 02. Mudaraba Depositors d o not share any income derived from miscellaneous banking services where use of their fund is not involved, such as commission, exchange, service charges and other fees realised by the Bank. 10. 03. Mudaraba Deposits get priority in the matters of investment over Banks equity and other cost free funds. 10. 04. The gross income derived from investments during the accounting year is, at first, allocated to Mudaraba Deposits and Equity cost-free-funds according to their proportion in the total investment. 10. 05. The share of gross investment income of Mudaraba Deposits as worked out in terms of principle shown against serial No 10. 04 is distributed as under: a) Bank retains a preagreed portion (say 20%) as management fee for managing the investment. b) Bank retains another preagreed portion (say 15%) for off-setting investment loss or with a view to maintaining a general level of return on Mudaraba Deposits. c) The remaining portion (say 65%) is distributed to Mudaraba Depositors applying weightages. 10. 06. Let us suppose that an Islami Bank applies the following weightages to Mudaraba Deposits. ) Mudaraba Hajj Savings Deposit 110% b) Mudaraba Term Deposits36 Months100% 24 98% 12 96% 06 92% 03 88% c) Mudaraba Savings 75% d) Mudaraba Short Notice 55% 10. 07. On the basis of the above principles, let us work out the rates of profit using the information and figures given below: a) Total InvestmentTk. 1000 b) Total Investment IncomeTk. 150 c) Total fund employed i) Banks equity and Al-Wadeea h Deposits Tk. 200 ii) Mudaraba DepositsTk. 800 Tk. 1000 Therefore the share of investment income of Mudaraba Deposit will be (150 ( 1000 ( 800) Tk. 120. 00 Less: ) 20% Management Fee Tk. 24. 00 b) 15% Loss Off-setting Reserve Tk. 18. 00 Tk. 42. 00 Distributable Investment Income Tk. 78. 00 |Sl. No |Type of Mudaraba |Yearly Product |Weightage |Weighted Product |Share of | | |Deposit | | | |Distributable | | | | | | |Profit | 1. 00Foreign Trade Foreign Exchange business under Islamic Framework: Musharaka can be used for Import Financing as well. There are two types of bank charges on the letter of credit provided to the importer: 11. 01Import Financing a. Service charges for opening an LC b. Interest charged on LCs, which are not opened on full margin. Collecting service charges for this purpose is allowed, but as interest cannot be charged in any case, experts have proposed two methods for financing LCs: a. Based on Musharakah/Mudarabah. b. Based on Murabaha. 1. 01. 1Musharakah/Mud arabah: This is the best substitute for opening the LC. The Bank and the importer can make an agreement of Musharakah or Mudarabah modes before opening the LC. If the LC is being opened at zero margin then an agreement of Mudarabah can be made, in which the bank will become Rab-ul-Mall and the importer Mudarib. The bank will own the goods that are being imported and the profit will be distributed according to the agreement. If the LC is being opened with a margin then a Musharakah agreement can be made. The bank will pay the remaining amount and the goods that are being imported will be owned by both of them according to their share of investment. The bank and the importer, with their mutual consent can also include a condition in the agreement, whereby; Musharaka or Mudarabah will end after a certain time period even if the goods are not sold. In such a case, the importer will purchase the Banks share at the market price. 11. 01. 2Bai-Murabahah: At present Islamic banks are using Bai-Murabaha, to finance LC. These banks themselves import the required goods and then sell these goods to the importer on Bai-Murabahah agreement. Bai-Murabahah financing requires the bank and the importer to sign at least two agreements separately; one for the purchase of the goods, and the other for appointing the importer as the agent of the bank (agency agreement). Once these two agreements are signed, the importer can negotiate and finalize all terms and conditions with the exporter on behalf of the bank. 11. 02Export Financing: A bank plays two very important roles in Exports. It acts as a negotiating bank and charges a fee for this purpose, which is allowed in Shariah. Secondly, it provides export-financing facility to the exporters and charge interest on this service. These services are of two types: a. Pre shipment financing b. Post shipment financing As interest cannot be charged in any case, experts have proposed certain methods for financing exports. 11. 02. 1Pre Shipment Financing: Pre shipment financing needs can be fulfilled by two methods a. Musharaka/Mudarabah b. Bai-Salam The most appropriate method for financing exports is Musharakah or Mudarabah. Bank and exporter can make an agreement of Mudarabah provided that the exporter is not investing; other wise Musharakah agreement can be made. Agreement in such case will be easy, as cost and expected profit is known. The exporter will manufacture or purchase goods and the profit obtained by exporting it will be distributed between them according to the predefined ratio. A problem that can be encountered by the bank is that if the exporter is not able to deliver the goods according to the terms and conditions of the importer, then the importer can refuse to accept the goods, and in this case exporters bank will ultimately suffer. This problem can be solved by including a condition in Mudarabah or Musharakah agreement that, if exporter violates the terms and conditions of export agreement then the Bank will not be responsible for any loss which arises due to this negligence. This condition is allowed in Shariah as the Rabb-ul-mal is not responsible for any loss that arises due to the negligence of Mudarib. 11. 02. 2 Bai-Salam: Bai-Salam is being used in Islamic Banks for export financing. Banks purchases goods that are to be exported at price that is less than the price agreed between the exporter and the importer. It then exports goods at the original price and thus earns profit. Bai-Salam financing requires bank and exporter to sign at least two agreements separately, one for the purchase of goods and the other for appointing the exporter as the agent of the bank (that is agency agreement). Once these two agreement are signed, the exporter can negotiate and finanlize all the terms and conditions with the importer on behalf of the bank. Post Shipment Financing: Post shipment finance is similar to the discounting of the bill of exchange. Its alternate Shariah compliant procedure is discussed below: The exporter with the bill of exchange can appoint the bank as his agent to collect receivable on his behalf. The bank can charge a fee for this service and can provide Quard-al-Hasana to the exporter, which is equal to the amount of the bill, and the exporter will give his consent to the bank that it can keep the amount received from the bill as a payment of the loan. Here two processes are separated, and thus two agreements will be made. One will authorize the bank to collect the bill amount on his behalf as an agent, for which he will charge a particular fee. The second agreement will provide Quard-al-Hasana to the exporter, and authorize the bank for keeping the amount received through bill as a payment for Quard-al-Hasana. Section – VII National International ratings of the Pioneer Islamic Bank â€Å"Islami Bank Bangladesh Limited†. IBBLs past performances have been evaluated by Bangladesh Bank, several credit rating agencies home abroad and by the local press. International Press â€Å"In the midst of a difficult Banking system known to be plagued by high non-performing loans (NPLs), one could easily conclude that it would be difficult to find a bank that is different from norm. However, IBBL provides a refreshing change and is, thus, a pleasant surprise. Although it does not command the market share as the 4 public sector banks, IBBL, which claims to have little interference in lending from the government, has nonetheless, managed to find a niche market of its own-says the ‘BANK WATCH’ a New York based international Credit Rating Agency in its January 30, 1998 issue. â€Å"As a market leader offering banking services based on the Islamic rule of Shariah, IBBLs profitability trend has been quite impressive. The Banks ability to keep its return on asset (ROA) well above the industrys average, reflected its resilience to possible shocks in the banking system. Concerns over massive NPLs and under provisioning are common amongst local banks. But this seems well resolved in IBBL. IBBLs good performance and solid capital base have indeed provided refreshing change found within a banking system saddled and held back by huge NPLs† the above agency continued to comment in the same ssue. National Press â€Å"It is one of a few local banks according to CAMEL (Capital, Assets, Management, Earnings Liquidity) rating made by the Bangladesh Bank. It holds the highest amount of liquidity among all banks and its ability to keep return on assets at 1. 07 percent is well above the banking sectors average of 0. 33 percent†- The Financial Express, Dhaka commented in its issue of May 28,1998. The Holiday† in its 29th August, 1997 issue carried out a report under the heading â€Å"Setting a precedence of sound banking† and commented â€Å"While the countrys banking system is burdened with bad debt portfolios and also suffers from a liquidity shortage, the Islami Bank Bangladesh Ltd. (IBBL) has created a unique precedence by improving its reserve and deposit positions substantially, making handsome profits, and offering attractive dividends to its share holders and depositors. † IBBLs World rating As per Bankers Almanac (2006 edition) published by the Reed Business Information, Windsor Court, England, IBBLs world Rank is 1620 among 3000+ banks selected by them and country rank 5 among 49 Banks. CRISL, a Joint Venture credit rating Agency, operating in Bangladesh rated IBBL ‘ST-I’, highest grade which means highest certainty of timely payment. Short term liquidity including internal fund generation is very strong and access to alternative sources of funds is outstanding. Safety is almost like risk free government short term obligations. Success Stories of Islamic Bank Bangladesh Limited: The IBBL has many success stories of achievements. These are summarised below : One :IBBL is the pioneer institution for introduction of Islamic Banking in Bangladesh. Two :The success of IBBL has imbibed other sponsors at home and abroad to establish Islamic Banking in Bangladesh. Four national, one international Islamic banks have since been established in the country. 6 private sector traditional banks have also established several Islamic Banking branches. Several other existing traditional banks have also expressed their intention to introduce Islamic Banking. Three:IBBL has successfully mobilised deposits from a section of people who hither-to-before did not make any deposit with interest based banks. Four :The Islamic Banking products which are offered by IBBL through its 169 branches located at important centres all over the country and spontaneous acceptance of those products by the people proves the superiority of Islamic banking. Five :IBBLs market share of deposit investment and ancillary business is steadily increasing. Six :IBBL, though still a tiny bank, handles more than 10% of countrys export and import trade. Seven:Among the contemporary commercial Banks IBBLs position is first in respect of mobilisation of deposit, deployment of fund and earning profit. Eight:Investment in industrial sector occupies about 38% of IBBLs investment portfolio. This is a unique example of industrial finance by a commercial Bank. Nine:More than 2,00,000 workers are employed in the industrial projects financed by IBBL. IBBL has thus made significant contribution to solving unemployment problem of the country. Ten:Dhaka- the capital of Bangladesh being a Mega city- has acute transport problem. IBBL has joined hands with an enterprising group to introduce a fleet of Premium Bus service which has attracted the attention of all section of the people and mitigated transportation problem of the city to some extent. Eleven:IBBL has introduced several other welfare oriented investment schemes, such as Small Transport Investment Scheme, Small Business Investment Scheme, Agriculture Implements Investment Scheme, Poultry Investment Scheme, Household Durable Investment Scheme, Housing Investment Scheme etc. Twelve :IBBL launched a Rural Development Scheme for providing finance to drown trodden section of the populace an area where no other Commercial Bank has extended any finance. IBBLs mission is to reach to all 68,000 villages of the country as early as possible. Thirteen :IBBL has contributed 3000 million Taka as income tax to the Government Exchequer on its net profit over the last 22 years. Fourteen :At the initiative and drive of IBBL, several Universities in Bangladesh have introduced Courses on Islamic Banking and finance. Fifteen :IBBL has organised a good number of national and international Seminars on Islamic Banking and Economics. Importantly, IBBL sponsored a Seminar at Dhaka with a view to forming an Islamic Common Market. Sixteen :IBBL has earned reputation in the country as a corruption free Institution. Seventeen :IBBL is held in high esteem in the banking circle as a good managed bank. Eighteen :Under the leadership of IBBL, Bangladesh Association of Banks (BAB) has been formed. This is a platform to ventilate the stand-points on banking issues of the private sector banks. Nineteen :IBBL has established a foundation called ‘Islami Bank Foundation’ for carrying out social welfare activities. The foundation has taken up a number of schemes covering the whole of Bangladesh. A sum of Taka 1000 million has so far been spent in social welfare activities. Some important Schemes of the Foundation are Welfare Activities of Islami Bank Foudnation Income generating scheme The objective of this scheme is to encourage unemployed youths in nation building activities and to make them self reliant. This scheme has been taken up to train rural health workers and to fund poultry, pisci-culture, cottage industry, small trading, in addition to providing rickshaws, sewing machines etc. for income and employment generation. Educational Scheme Scholarship stipend are awarded to the poor and meritorious students under this scheme. Health Scheme This scheme has been taken up to establish child and maternity centres, charitable dispensaries, provide grants for medical treatment of the poor, install tube-wells for the supply of pure drinking water and build sanitary latrines in order to fulfill health needs of the rural people. Humanitarian Assistance Humanitarian assistance are provided to the poor, disabled persons, families affected by river erosion and for marriage of poor girls. Emergency Relief Operations Financial assistance to the people affected by natural calamities is provided under this scheme. Service Centre The Foundation has been establishing permanent service centres in coastal areas and off-shore islands to be used for the purpose of integrated social development as well as safe shelter during natural disaster. HRD Programme Under HRD programme, the foundation has established several Technical Training Centres for imparting vocational training and kindergarten Schools. Projects like mosque based income generating centres and prisoner rehabilitation projects are expected to be established in the near future. Assistance to Mosque Financial assistance for construction, extension and renovation of mosques are provided under this scheme. Sales Centre Foundation has established sales centres to encourage poor women folk for self employment and for marketing home made garments, handicrafts and other items produced by them. Islami Bank Hospital The Foundation has set up hospitals for providing modern medical treatment to all sections of the people at reasonable cost. By now, the Islami Bank Hospitals have earned good reputation in the society. Problems Specific to Islamic Banking in Bangladesh 1. Shortage of Supportive and Link Institutions Any system, however well integrated it may be, cannot thrive exclusively on its built-in elements. It has to depend on a number of link institutions and so is the case with Islamic banking. For identifying suitable projects, Islamic banking can profitably draw the services of economists, lawyers, insurance companies, management consultants, auditors and so on. They also need research and training forums in order to prompting entrepreneurship amongst their clients. Such support services properly oriented towards Islamic banking are yet to be developed in Bangladesh. 2. Lack of Organising Relationship with Foreign Banks Another important issue facing Islamic banks in Bangladesh is how to organise their relationships with foreign banks, and more generally, how to conduct international operations. This is, of course, an issue closely related to the creation of financial instruments, which would be simultaneously consistent with Islamic principles and acceptable to interest-based banks, including foreign banks. . Long-term Financing Islamic Banks stick very closely to the pricing policies of the government. They can not benefit from hidden costs and inputs, which elevate the level of prices by certain entrepreneurs without any justification. On the other hand, Islamic banks as financial institutions are even more directly affected by the failure of the projects they finance. This is because the built in security for getting back their funds, togeth er with their profits, is in the success of the project. Prospects of Islami Banking in Bangladesh Despite the above problems and shortcomings the Islamic Banks have the following further prospects to grow: a) Islamic bank investment portfolio can be diversified and extended for long term financing under Musharaka and Mudaraba. b) The clients of the Islamic Bank may be equipped with knowledge of Islamic banking through seminars and symposia. c) Islamic banks can develop unanimous Shariah Manual or guide lines for day to day consultation and clientele motivation. d) Islamic Banks can expand their network in the rural areas of Bangladesh. ) The research and development (R D) for Islamic Economics, Banking and Finance can be geared up. f) Co-operation among Islamic banks can be extended throughout the world. g) Muslim countries, who have established Islamic banks, if involve with international trade on Islamic principles, that would contribute to grow international transactions under interest-free system. This will further help developing an Islamic Common Market. h) The central ban ks of the Muslim Countries can help creation of environment for Islamic Banking with more responsibilities. ) Uniform accounting systems and standards already developed by the Accounting Auditing Organisation for Islamic Financial Institutions for providing consistency in accounting treatment of various operations and products of Islamic banks may be introduced by all concerned. j) New and ‘innovative’ products can be designed for financing on Profit and Loss sharing basis.