Coco Chanel Essay

Coco Chanel Coco Chanel was one of the most prominent fashion designers of the 20th century. Her contribution in the development of fashion can hardly be underestimated. In fact, she revolutionized fashion in a way, since she was one of the first fashion designers who made women think of themselves first rather than think how they look for their men, which was a traditional view on female fashion at the epoch. In actuality, the significance and her great contribution in the development of fashion as well as 20th century culture at large was marked by her contemporaries as well as modern specialists. For instance, she was the only person in the field of fashion design to be named on TME Magazine’s 100 Most Influential People of the 20th Century (Charles-Roux, 145). In such a way, she gained a public approval and popularity which made her name one of the most recognizable in the fashion world. At the same time, her life was quite difficult, especially during her early years and war time periods. In fact, she witnessed two world wars but she kept working regardless of all the problems and challenges she faced in her life. In fact, her work was her true passion she remained devoted to from her early life until the end. Gabrielle Bonheur â€Å"Coco† Chanel was born on August 19, 1883. She was a second daughter of travelling salesman Albert Chanel and Jeanne Devolle in a small city of Saumur, France (Orecklin, 49). In fact, her family was poor and she was raised in poverty stricken neighborhood along with her five siblings. Remarkably, when she got her birth certificate her name misspelled â€Å"Chasnel† because nobody knew how to spell Chanel correctly. As a result, the mayor of the city had to improvise and added the letter â€Å"S† in her name, which later became a serious problem for her biographers, who could not trace her origin and define genealogical tree because of such an error in her name (Orecklin, 51). However, the misspelling of her name was definitely not the biggest misfortune that happened to her in her early life. She lived in poverty and was practically of an opportunity to get a good education. Moreover, when she was twelve, her mother died of tuberculosis that provoked a serious psychological trauma for the child. At the same time, her father could not stay with the children all the time. He had to work to earn for living and to maintain the family, in which he was the only breadwinner. This is why Coco Chanel was sent to the orphanage of the Catholic monastery of Aubazine, where she spent seven years and where she received her basic education. In fact, it is in the monastery she learned the trade of seamstress. However, she did not spend all the time in the monastery. During the vacations she went to her relatives in a provincial city, where her female relatives taught her to sew with more flourish than the nuns in the monastery were able to demonstrate. In such a way, her interest, her passion to design had started to develop since her childhood as she learned to sew and gradually she became very skilful in this field. At this point, it should be said that she was apparently a gifted person since she managed to develop her skills and abilities to the extent that she became able not only to create traditional wear, but she proved to be able to experiment and find new, original solutions, which were unusual for her time (Dwight, 119). However, at the early started to demonstrate her talent, which though was immature at the epoch. Nevertheless, her professional knowledge, to a significant extent, defined her further life, as her first job was the work at a local tailor, where she was employed at the age of eighteen as she left the orphanage. In fact, it was her first step in her professional career insignificant it seems to be, but still it was very important in regard to her future professional career since she could have hardly find a different work. Moreover, it was the only work where she could realize her full potential and implement her creative ideas while developing new wear. At the same time, it should be said that she could not afford working at a tailor for a long time because she needed to realize her ideas and she wanted to create clothes of her own. However, she could hardly start her own business, if she had failed to meet Etienne Balsan at the tailor’s shop where Coco Chanel worked. In fact, it was an occasional encounter which though outgrew into a love affair which opened Chanel the way to a new, different and better life. Etienne Balsan was rich and quite influential. It is during her life with Balsan, Coco Chanel started to design hats. At first, it was just a hobby which gradually transformed into a true passion for designing new clothe items, especially hats, where she grew more and more skillful. Her early works were characterized by high originality since they were quite different from traditional hats. At the same time, the high quality of her products attracted a lot of customers, while her acquaintance with Balsan allowed her to engage customers representing the upper-class of the French society (Charles-Roux, 210). Nevertheless, her love affair with Balsan failed to evolve into a true love. At any rate, their relationships did not last for a long period of time and Coco Chanel left Balsan, moved to Paris and took over his apartment in the French capital. In 1913, she opened her first shop, where she sold fashionable raincoats and jackets. Remarkably, the originality and quality of her wear contributed to the huge success of her shop which allowed her to maintain relatively high standards of life and she became very popular in Paris, which, at the epoch, was one of the world’s centers of the fashion industry. However, the development of her business in Paris was overshadowed by the outbreak of World War I, which started in 1914 and affected the life of the entire country dramatically (Charles-Roux, 219). Nevertheless, Coco Chanel had never stopped working and continued designing new products which still remained popular and the demand for her wear was traditionally high. But she had to stop her business in Paris because she was deprived of all her properties. Nevertheless, Coco Chanel was not discouraged and carried on her professional work and designing became an essential part of her life. On the other hand, she could live with her ideas only. She needed money to earn to maintain living. In this regard, the assistance of Balsan’s friend, Arthur â€Å"Boy† Capel proved to be very helpful for Coco Chanel. Their friendship evolved into a love affair which made them very close and Capel helped Coco Chanel to open a new shop in Brittany, France, which, similarly to the shop in Paris, became very popular among local customers (Weber, 35). It is worth mentioning the fact that celebrated French actresses buy wear in Chanels’ shop which was very important for the promotional campaign of her shop. In fact, the interest of celebrities to her shop contributed to the growing popularity of her products and her design in France that contributed to her professional recognition, while the popularity allowed her to expand her business steadily. Due to her popularity, she managed to introduce new women’s sportswear at her new boutique in Deauville. In such a way, she could expand her business, but, what was even more important, Coco Chanel changed the philosophy of women’s wear. To put it more precisely, her new design and new wear made women confident of the fact that they were supposed to dress for themselves but not for their men. In fact, it was a revolutionary philosophy for France as well as the entire world at the epoch of World War I, when the ominance of men was unchallengeable, while the development of feminism was still insignificant (Charles-Roux, 248). Nevertheless, the design and new philosophy of Chanel produced a significant impact on the development of fashion and the 20th century culture at large. Remarkably, as Coco Chanel grew more and more popular she attempted to change some facts from her past. For instance, she pretended to be born in 1893, instead of 1883, while she insisted that she lo st her mother at the age of six, instead of twelve. In such a way, she created a kind of tragic image of an orphan girl, who managed to achieve a tremendous success due her talent and hard work. At the same time, such manipulations with her past evoked numerous controversies which were insurmountable for her biographers. This is why some details of her biography are still quite controversial and unclear. The 1920s were the epoch of the fast progress of Coco Chanel as a designer and her business developed successfully. Her design was really unique and her wear was very popular in France as well as in other countries. In this respect, it is worth mentioning the fact that her acquaintance with Vera Bate Lombardi, a daughter of Adolphus Cambridge, 1st Marquess of Cambridge and Duke of Teck, became of a paramount importance for Chanel’s empire. In fact, Vera Lombardi became Chanel’s muse and public relations liaison to a number of European royal families, including the British royal family. Her acquaintance with representatives of royal families and upper-classes contributed to her empire growth in power. As a result, before World War II, Chanel’s was one of the most influential designers in Europe as well as the world, because Europe, especially Paris, where Coco Chanel resided in the Hotel Ritz Paris, was the heart of the world’s fashion design (Barringer, 28). However, World War II forced Coco Chanel to stop her work and business. Nevertheless, she remained in Paris even during the German occupation. This period in her life was probably the most controversial because, after the war, she was repeatedly accused of collaborationism. For instance, she was suspected of having a love affair with a German officer and Nazi soy Hans Gunther von Dinklage. Moreover, she was even arrested after the war but she escaped the t rial after the interference of the British royal family, but she was forced to move to Switzerland where she lived until 1954. In 1954, she returned to Paris where she renewed her work and her business, but her new collection did not have much success with the Parisians and French because they believe Chanel to be a collaborationist, which produced a negative impact on her public image. Nevertheless, in spite of the failure in France, Chanel had open a new market, the USA, where her wear became extremely popular and the USA became her main market in the post-World War II period. On the other hand, even though the USA was the main market for Chanel’s Empire, Coco Chanel, herself, had never left Paris and stayed in this city until her death on 10 January 1971. She died at the age of 88 in her private suit in the Ritz Hotel Paris and she was buried in Lausanne, Switzerland (Charles-Roux, 341). Thus, taking into account all above mentioned, it is possible to conclude that Coco Chanel was a very influential fashion designer. She had changed the traditional view on women’s wear and she had changed the women’s philosophy in regard to the wear. She was one of the first designers who made women think of themselves above all, instead of thinking of their men when they choose the clothes. At the same time, her personality is still quite controversial because, in spite of a huge popularity before World War II, she failed to regain the popularity in France after the war.

College INC Essay

This film focuses on the ethics of for profit educational institutions. With most of the coverage revolving around what critics characterize as the unethical and disloyal failure to inform students of the huge debt burden they will incur. Also the low graduation and retention rates to which they may fall victim, and the struggle they will likely face to obtain employment after graduation. The Huffington Post reported, that students from for-profit schools are more likely to borrow and drop out than at nonprofit schools. The report also finds that the majority of enrolled students  leave without a degree, half of them within four months. Most of the schools’ money was spent on recruiting, marketing, profiting, and CEO salaries whereas less than 18 percent was spent on instruction. The schools’ chief executive officers made an average of $7. 3 million. Nonprofits, state governments, and the federal government have made various attempts to regulate these institutions more carefully. The Obama administration and the U. S. Department of Education are involved in an ongoing legal battle fighting to force more disclosure by for-profit colleges. Many state legislatures have proposed and passed  laws tightening the governments grip on these institutions. 1 Jordan Schulte 1btaining a higher education does not mean merely that one will be equipped with the skills necessary to compete in the global marketplace. Instead a student should also have the opportunity to learn for learning’s sake. College is a time when students have an opportunity to engross themselves in great texts, immerse themselves in topics that they may never encounter again in their professions, and to think critically about the world’s problems and what it means to be a good, ethical citizen in today’s global society. In fact, since the beginning of higher education in the United States, dating back to Harvard College in 1636, one of the stated purposes has been to prepare citizens for active involvement in community life. Benjamin Franklin and Thomas Jefferson both pointed out the importance of creating informed and responsible citizens. In the early part of the twentieth century, John Dewey revolutionized the way we think about teaching and learning, arguing that educating is not just about filling receptors with tons of information. Rather, education is a combination of learning information and melding it with life experience. In my view, for-profit institutions are designed to ensure that the objectives of Franklin, Jefferson, and Dewey are not attained; and sometimes actively reversed. In for-profit colleges are taught and trained to follow strict rules, ingest textbooks tailor-made for the specific for-profit institution, complete uniform quizzes and essay 2 Jordan Schulte 2assignments, and remain quiet about the course material and presentation. What is the effect of this approach on the students? For the majority of students, there is tacit consent that they endure the regime simply to reach the end point: receiving a diploma. Some  demonstrate tacit consent by briefly showing up for class, perhaps for five minutes if the instructor is lucky, to ensure being marked present, and then dashing for the door. The strong complete the assignments with minimal effort to receive a grade and pass, whereas others may just give up at when faced with the challenge. THESE FOR-PROFIT COLLEGES MISLEAD THE GULLIBLE, WHO OFTEN CANNOT GET IN TO MORE ESTABLISHED SCHOOLS, INTO THINKING THAT A GLAMOROUS CAREER IN FASHION DESIGN, CULINARY ARTS OR RECORDING ENGINEERING IS JUST A FEW CLASSES AWAY. THERE IS NO COST TO THE STUDENT, AS HE BORROWS FROM THE GOVERNMENT. AND, BEFORE HE EVER GETS THE FIRST STATEMENT ON HIS LOAN, HE WILL RECEIVE A SUBSTANTIAL (SEVERAL THOUSAND DOLLAR) REFUNDABLE TAX CREDIT FOR HIS â€Å"EXPENDITURES† ON HIGHER EDUCATION. EVERYONE DOES NOT NEED TO GO TO COLLEGE. PERHAPS THE EXISTENCE OF THESE SCHOOLS IS A REFLECTION OF THE LACK OF PUBLICLY FUNDED VOCATIONAL SCHOOLS OR THE CONSTANT MEDIA MANTRA THAT ONLY THOSE WITH COLLEGE DEGREES CAN ACHIEVE THE AMERICAN DREAM. I WOULD PROPOSE THAT THESE SCHOOLS SHOULD EITHER BE CUT 3 Jordan Schulte 3OFF FROM FEDERAL LOAN FUNDING, OR, BETTER YET, BE PUT OUT OF BUSINESS. 4 Jordan Schulte 4.

Reconstrution and Race Relations Essay Example | Topics and Well Written Essays - 1000 words

Reconstrution and Race Relations - Essay Example The exercise of freedom for the freed slaves was quite a challenging prospect especially in the southern states as the white southerners set up road blocks to any achievement of freedom for the former slaves. The southern states’ economies were in shambles at the time and many of its young men were dead or maimed after the war. They, however, formerly owned fewer slaves yet ironically, they vehemently opposed the freedom of the slaves. The Radical Republicans (as they called themselves) used their white majority during voting exercises to pass legislations and restrictions against the black minority, their legislators and voters. In Georgia poll tax of 1877, white southern legislatures passed laws that created more barriers to voting by blacks and poor whites, working to suppress the black vote and reduce it through changes in voter registration, election procedures, poll taxes, residency requirements, rule variations, literacy and understanding tests which were particularly h ard for the poor and especially blacks to fulfill while, for instance, exempting other white voters from literacy test using the grandfather clause. In addition, cases such as the Williams v. Mississippi (1898) and Giles v. Harris (1903) including white primaries created situations that prevented most blacks from voting in southern states. The white southerners also used force to prevent the exercise of any freedom by the former slaves. The enactment of the Jim Crow laws and the subsequent use of force and terror to enforce them aided them greatly in their aims. They waged terror through members of a secret vigilante organization called the Ku Klux Klan (KKK). The clan waged war even against whites they considered traitors to the race and the region as they sought so desperately to turn back the hands of time to before when African Americans gained the right to vote. Apart from the Ku Klux Klan, other such groups included the White League and the Red Shirts. The southern whites also used racial segregation in many forms as a tool to meet their aims. Blacks and whites rode in different parts of the bus, supported different baseball teams, enjoyed separate public parks and watched movies in separate theatres. Public schools were established separately for whites and blacks (1867) (Hofstadter (1982) where the white dominated municipal governments withheld funds from black schools. White residents also refused to sell or lease land for colored school construction. Due to the segregation, enrolment in black schools greatly exceeded the standard capacity as there were fewer black schools for the growing black community leading to low education standards. The blacks in turn challenged these efforts by the white southerners through law suits amongst other means and according to Foner (1988), the Freedman’s Bureau threatened lawsuits over unfair division of school funds eventually getting some money turned over to a panel of colored trustees for administration o f colored schools. Other such successful lawsuits included Guinn v. United States (1915), Lane v. Wilson (1939) and Smith v. Allwright (1944). The freed people also sought to enhance educational advances, one of the reasons they had been deemed inferior. They begun to buy and lease land for school construction and housing, for example, from the Barry family north of the insane asylum of Anacostia. Most of this they

Nutrition Statistics Project Example | Topics and Well Written Essays - 2500 words

Nutrition - Statistics Project Example Cycle 1 students indicated fruit juice as their favorite drink as compared to Cycle 2 students who indicated Fizzy drinks/Carbonated drinks with high sugar content as their favorite drink. More Cycle 1 students buy snacks/drinks from the cafeteria everyday as compared to Cycle 2 students. Over the last 30 years, the UAE has experienced rapid socio-cultural changes that have been brought about by the growing economy of the Arabian Gulf Region due to the discovery of oil (Bin Zaal, Musaiger and D’Souza 2009). UAE citizens have undergone significant lifestyle changes including a massive transition from deficiency diseases and under nutrition towards degenerative diseases that are associated with over-nutrition. There have been significant changes in food choices leading to a â€Å"nutritional transition† (Al-Haddad, Al-Nuaimi, Little and Thabit, 2000). According to the World Health Organization (2000), nutrition plays a crucial role in affecting the weight of a populace because the changes in economic and social environments have highly significant influences on calorific intake. Physical activity and recreational patterns of people in a given place also play a part in the influences that emanate from effects of nutritional intake. Improper nutrition often leads to a variety of health conditions such as obesity, nutrition deficiency diseases such as goiter, kwashiorkor among others. In the context of the UAE, nutritional challenges have heralded obesity which has resulted into several health concerns. Obesity is described as a medical condition in which body fat accumulates to the extent of causing risks to the health of the victim. It is measured as the Body Mass Index (BMI)- calculated by dividing the weight (Kg) of a person to the person’s square of height (M) (Seidell and Flegal, 1997). One is considered overweight when the BMI is between 25 and obese when the BMI is higher than 30 (Seidell and Flegal, 1997). Students in

Lipstick Traces and Kalle Lasn's Contemporary Fluxus Text Essay

Lipstick Traces and Kalle Lasn's Contemporary Fluxus Text - Essay Example Culture jamming seeks to raise the power relationship in the object, situation, or discourse to the clarity of immediate criticism, Lasn's conception is highly flexible, which consists of nearly any project or performance that welds art, protest, and humor. It includes a wide array of activities, from counter-surveillance to illegal computer hacking to ad busting. The term â€Å"culture jamming was coined by Kalle Lasn in the book Culture Jam. Lassn , the founder of the anti-consumerist magazine Adbusters, is on a mission to intervene in the media spectacle and work against our habits of blind consumerism. Dyke Action and the Guerrilla Girls are actually more militant than traditional culture jammers. Dyke Action, along with groups such as Gran Fury, Fierce Pussy, Lesbian Avengers, and ACT UP confront serious lesbian and gay issues. The Guerrilla Girls have become renown not only for posters and slogans, but for lectures, public appearances, and books protesting women’s repre sentation as both artists and as subjects. Their work touches on global issues and is concerned with the oppression of women worldwide. What is the spectacle? It's everything - humor, advertising, television, and so forth - comprising today's "spectacular level of commodity consumption and hype," as Kalle Lasn wrote in Culture Jam. And to show how deep the spectacle's recuperation has penetrated social life, successors of situationist theory have been absorbed into the spectacle they fought against. Having become marketing experts, advertising consultants, and advanced campaign managers, many of the culture jammers are now the prizes and trophies of capitalist domination. Not just an accessory source for marketing gurus, radicalism and rebellion are the dialectical anti-thesis of capitalism and thus the perfect synthesis for "post-ideological", late capitalist domination. This Jack in the Box advertisement that I photographed is a perfect example. Culture jamming gets our initial at tention mostly because of the innovative way in which they use imagery, striving to shock and provoke. In this way they are actually enlarging the amount of expressions that are deemed acceptable by the public. What was once provoking, like billboards of Marlboro Country superimposed on images of urban decay, now forms the common element in Diesel's Brand 0 campaign. The use of the original technique by culture jammers consecrated it as cool, and Diesel can now use this to their own benefit. Seen from this angle, culture jamming is working against itself. According to du Gay, meaning is created in dislocation. Dislocation is inevitable, and occurs in our case when a projected brand identity is unable to represent itself entirely objective. In order to be constituted as such, the brand depends on a constitutive outside, the consumers. Put simply, a brand identity must be accepted as such by consumers for it to be perceived as real. Du Gay calls uses the notion of vectors pulling in d ifferent directions. This creates a dynamic process, where meaning and perceived reality is the outcome. I have argued that the massive presence of promotional messages can be seen as part of our perceived realities. Thus, producers and consumers of brands

Hyperglycemia vs. Hypoglycemia Essay Example | Topics and Well Written Essays - 1500 words

Hyperglycemia vs. Hypoglycemia - Essay Example Homeostasis is the survival and preservation of a reasonably stable internal setting, such as body temperature. It is the tendency of an organism to establish stability within its internal environment or fluid matrix; and it is through metabolism that an organism maintains homeostasis (Smith p.792). Metabolism is made up of several processes that maintain the structure and molecular composition of a living organism in quasi-stable state, consisting of two interdependent phases – catabolism and anabolism (Nahle, no page number). Anabolism is the term used to describe the total number of chemical reactions involved in a synthesis; while catabolism happens when cells are also constantly involved in the breakdown of larger molecules. Catabolism has two purposes: 1. It releases the energy for anabolism and other work of the cell, and 2. It serves as a source of raw materials for anabolic processes (Curtis p.166). When there is an absolute or relative deficiency of the action of insulin, a simple protein composed of two peptide chains joined by disulfide bridges, at the surface of or within certain body cells, the metabolic disorder known as diabetes mellitus results, which is an inherited disease. In the absence of insulin, glucose is not changed to glycogen and stored within the liver but accumulates in the blood, simply known as hyperglycemia; and when this accumulated blood escapes into the urine, it is called glycosuria (Smith p.733). Insulin also affects the metabolism of fats and proteins. As the disease progresses, the derangements related to these two foodstuffs becomes clear. The biochemical derangements occasioned by the lack of insulin in a diabetic patient are dramatic ones. There are severe fluid and electrolytic disturbances, acidosis develops and death may occur in diabetic coma. Infection is a hazard for the

Joseph Mengele Essay Example | Topics and Well Written Essays - 1750 words

Joseph Mengele - Essay Example As a teenager, Mengele proved to be a very brilliant person, and was often praised by his instructors for his great control and self-discipline. He was very delightful, assertive, and good looking. Mengele’s favorite subjects at school included zoology, physics, and biology, but his most favorite subject was anthropology, which is the study of humans. After graduating in 1930 and wanting to make a name for himself, Mengele left the family business and ventured into medicine. This was the beginning of his infamous career. Mengele soon joined the Nazis and immediately applied for the highest position in society, the SS. The SS was an elite squad that controlled Germany’s racial cleanliness and strictly adhered to the Nazi beliefs. In the period building up to WWII and during the war, Mengele was drafted and served as a soldier. In addition to fighting on the battlefield, he was able to practice his medical skills and given power to make choices. Mengele was awarded many m edals during his service, including the First Class, Second Class, and two Iron Crosses, for bravery and courage. Later, after becoming wounded on the battlefield, Mengele was sent back to Berlin to conduct his medical experiments, through which he earned the name â€Å"Angel of Death.† Mengele was recognized as the angel of death, inflicting harm and spreading hate to all, including many innocent Jews who were unlucky to encounter him. â€Å"Usually 70 to 90 percent of all new arrivals had been condemned to die without even a passing glance from their judge and jury at Auschwitz. The handsome officer who held omnipotent sway over the fate of all the camp's prisoners was Dr. Josef Mengele, the Angel of Death† (trutv). Josef was called the Angel of Death for many reasons. One of them was that he would kill large crowds of people without hesitation. Once there was an infestation of lice in the women’s section of Auschwitz camp, and Josef came up with an idea to fi x the problem. He gassed all 750 of the women, killing them in order to solve the lice pandemic without hesitation. He was never reluctant to kill and did not think twice about the human cost of his experiments. He specifically conducted experiments on twins, the procedures of which were gruesome and torturous. These experiments included gutting and removing the reproductive organs of his patients (Auschwitz), and injecting chloroform into the hearts of a set of twins at the same time in order to instantly paralyze and then kill them. His nickname, â€Å"Angel of Death,† suited him very well. He lived up to his title through conducting numerous inhumane experiments. Josef Mengele fled from Auschwitz on January 17, 1945 (Mengele) as the Soviet army advanced toward Berlin. During the first few years of the post-war era, Mengele remained in hiding on a farm near his native Gunzburg. He took on a fake identity and began working as a farm hand. Mengele was kept informed of recent political events through his secret contacts with old friends in Gunzburg. Although he still hoped to conduct his research and experiments, it became increasingly apparent that the Allies would not let such a notorious villain escape. Eventually, he died while on the run in a drowning accident in Brazil, after which the body was checked to

Marketing plan report for Masafi company Essay Example | Topics and Well Written Essays - 2750 words

Marketing plan report for Masafi company - Essay Example It would examine the trends and choices for marketing and running the business. The report goes on to examine some important trends in the markets and deduce the competitor positions. It would identify the marketing potential and from there, the paper would formulate and recommend a marketing plan after identifying the marketing gaps that exist in Masafi. Background Analysis Masafi is focuses on mineral water and other food products that they produce in their factory and sell to customers in the Middle East, Persian Gulf and different parts of the world. Their products are unique and are tapped from the rich oases and mountains of Masafi, a region in the north-east of the United Arab Emirates. Masafi's competitive strength is in the fact that it produces world class water and consumer goods with a high degree of natural freshness and health potentials. Masafi is also reputed for being environmental-friendly in its approach of doing things. Past History The Masafi mountains and region is a vegetated mountainous region in the United Arab Emirates. The region contrasts the area in the vast west of the region which is mainly a sandy desert area. Masafi has a reputation of being an area with numerous springs and oases which were documented in Roman times. The locals of Masafi have always made use of the water and natural resources and sent them to different parts of the country for generations. However, in 1976, Masafi was officially incorporated with the view of commercializing the sale of water from the springs of the Masafi geographic area (Masafi Corporate, 2013). Masafi started with a small portfolio of just producing bottled water to consumers around the local area. It used traditional systems and methods of collecting water and sending it out to nearby communities. In 1990, Masafi expanded to different parts of the UAE. They sold their mineral water to large cities of the United Arab Emirates. In 1995, Masafi expanded to different portfolios. They produced ju ices from natural fruits, flavoured water, potato chips, and Basmati rice. The biggest product, the 4G (Four Gallon) water was added in 2000. In 2008, Masfai gained a reputation as a natural, organic and health product when they entered the beverage market. This quest was to make the company a fast-moving consumer goods company (FMCG) by 2011. They continued to produce 100% pure and natural products for consumers in different parts of the Persian Gulf Region. Export increased with the growth of the Emirati economy. This led to the sale of Masafi products to Africa, the Middle East and different zones around the region. Organizational Setup Masafi has a capital base of $5.5 million . This capital enables it to continue to produce and fund its operations and expansion drives. The company is involved in different projects in different parts of the country. Masafi has over 1,000 employees. The primary plants are located in the Masafi regions. However, the company has different warehousi ng networks around the country which enables it to distribute the products to the various cities and the ports of UAE. Masafi maintains a major recycling system on its site which allows it to recycle the plastics and other containers that are used to carry out the activities of the company. Masafi is one of the most profitable entities in the industry. In 2008, they increased their profits by 36% from 2007 records (Zawya, 2009). This represents a revenue of $26

Medical Devices Decontamination Essay Example | Topics and Well Written Essays - 1500 words

Medical Devices Decontamination - Essay Example s a very familiar threat of getting exposed to a number of unrevealed microorganisms that reprocessing staffs’ bear in the process of cleansing, reprocessing, and sterilization of medical instruments. Washer Disinfectors are designed to reduce the quantity and extent of reprocessing staffs exposure to this danger and make reprocessed medical devices available that are hygienic: harmless for handling, secure for patient care, and become safe at the cheapest cost. (Reichert, 2008, 34) The most favorable cleansing cleaning-reprocessing of medical devices will provide all the requirements needed to disinfect medical devices and sterilize surgical instruments and make surgical instruments harmless to handle, and diminish costs of reprocessing. The "most appropriate series of medical devices Washers Treatments" includes a sequence of mechanical and chemical conducts. (Marimargaret, 2008, 32) Mechanical conducts take account of: chilled water pre-wash using a solution of ultrasonic cleaner, detergent rinse, distilled water washes, and warm air aeration. (Jette and Lambert, 2006, 15) The chemical management involves mixture of enzymatic cleaners, lubricants and surface conditioners. Medical devices automated Washer Disinfectors, executes a pre-wash, ultrasonic (not obligatory), detergent cleaning, high temperature water rinsing, lubrication and at last drying at high temperatures in order to make medical devices methodically clean, free from any dirt or stains and sufficiently lubricate them. It is not possible to make Medical devices sterilized until and unless each and every surface is thoroughly cleaned, before sterilization process, in order to make them free from soil or debris rinse them thoroughly in order to prevent staining. The most appropriate series of treatment at the right time, correct temperature is essential to make medical devices significantly clean and safe for handling. An automated Washer Disinfectors eliminates unwanted debris with the help of

The Desert Rat-Kangaroo Essay Example | Topics and Well Written Essays - 1000 words - 179

The Desert Rat-Kangaroo - Essay Example Although the desert environment is harsh, the desert rat kangaroo had adapted to the conditions and survived in the ecosystem until interference in its natural habitat contributed majorly to its extinction. Humans were both directly and indirectly involved in the alteration of the mammal’s natural habitat by introducing herbivores such as rabbits and cattle, setting off an imbalance in the ecosystem. Fire regimes also played a key role in the destruction of the habitat (Fisher & Blomberg, 2010). Although the rat kangaroo was largely independent of water, there was increased competition for green plant with beetles. Other factors for its extinction include predation by foxes and cats. Since they were relatively small and hence vulnerable to predators, much of their self defense was in the ability to make high and quick leaps. The extinction of the desert rat kangaroo did not impact on the desert food chain significantly mainly because it was a replaceable species. More importan tly, they were not direct competitors of surface water with any other species because all their water requirements were met by the water contained in the green plants in their diet. Being herbivorous animals, their role in the ecosystem was gradually assumed by cattle as the rat kangaroo’s population diminished. However, the population of beetles, weevils and other small insects of which the rat kangaroo was a key consumer increased. The most notable difference was a decline in the number of desert fox (Fisher & Blomberg, 2010). The orangutan is a primate that depends entirely on forests for survival. Unfortunately, high illegal and legal logging and deforestation rates are contributing to its increasingly endangered status.

Problems of Teen Pregnancy Essay Example for Free

Problems of Teen Pregnancy Essay Teenage pregnancy is simply defined teenage girl who became pregnant at an early age. The term connotes that the girl has not reach the legal adulthood before conceiving. Like United States, our country, Philippines also facing this kind of problem. Our government discusses how to prevent and low down the rate of pregnancy especially in the teenagers. Most cases of teenage pregnancies are observed in the lower economic strata of society where there is a lack of knowledge, awareness and facility to address the problem of unintended pregnancy. Teenage pregnancy is often associated with an increase rate of delinquent behaviors including alcohol and substance abuse. An absentee parent can create insecurities in children, and depending on the parent’s role in the child’s life, can make some children more prone to crime and other emotional issues. Causes of teen pregnancy and tips to surpass it Family problem affects the thinking ability of a teenager. It makes them to create decisions that they think it’s good for them, they ask advices to their friends than their families. This is also the time that teens are starting to learn to drink alcohol and use prohibited drugs to satisfy their selves and to forget the problems between his/her family. One thing that the teens think can help them to get away from their family is to get pregnant. They act so reckless yet after getting pregnant they’ll come to their parents for the financial support for the baby. If the family problem doesn’t stop that early this will be the reason for the adolescent to pursue their plan in getting pregnant. Their mind is really sober and can’t think well, one of the family members should talk to their family member that is involved on the specific circumstances. Parents have the most important role in the life of a teenager. They are the ones that adolescents look up too whenever they have problems. They must be responsible for the safety and wellbeing of their children. Try to be more supportive than to criticize them. Try to discuss with them some certain issues to reach an outcome that you and your teenager can both accept. Make conversation with them over breakfast and dinner, having heart to heart talk with will help to enlighten their minds and they can think clearly. One factor that leads teen girls to become pregnant is peer pressure. Many teens sexualize themselves or engage in behavior for which they are not yet ready because they want to fit in or be popular. Peer pressure to engage in sexual activity is so common, a variety of terms refer to the behavior, such as hooking up, booty calls or referring to someone as a friend with benefits. If you’re a parent, consider the impact that peer pressure could have on her decisions, and the potential ramifications of this impact. Any teen succumb to pressure to have sex. All teens have sexual urges especially boys, they engage in sex before they are ready. Popular teens are also vulnerable. Some of the typical peer pressures that teenagers face are drugs, smoking, alcohol, sex and dangerous driving. If their friends value having sex, then they are likely to have sex, too. Many times these teens let their friends influence their decision to have sex even when they do not fully understand the consequences associated with the act. Still others find it easier to give in and have sex than to try to explain why not. Some teenagers get caught up in the romantic feelings and believe having sex is the best way they can prove their love. Most teenagers experience sudden and hitherto unknown emotions and feelings during their early puberty. They feel a natural sense of rebelling against the set norms as well. All this, coupled with a sudden sense of new-found freedom and sexuality, results in many of them giving vent to their feelings through sexual expressions and experiences. The only way they could probably achieve that would be by having a boyfriend or girlfriend or at least by dating and indulging in sexual acts often. This kind of rash behavior could lead to unintended pregnancies. When you feel threaten and pressure, you must stop and ignore them. These people will bring the worst out of you. Find a substitute and affirming friend, it’s good to have friends who can affirm you. Develop a sense of humor; crack a joke and everyone’s going to admire you. Be prepared, make a plan and be prepared for the times you’ll face peer pressure. Most teens do not want to become pregnant; they are still becoming so as a result of sexual activity. While actual force to have sex is rare, many teenage girls (especially those under the age of 15) feel pressured to have sex. Rape does happen and is one of the reasons that teen pregnancies occur. Rape by boyfriends, family members and even strangers can result in teen pregnancy. 50 60% of teens were molested prior to their first pregnancy, 50% of perpetrators were family members. To avoid rape, avoid walking alone as much as possible. Be mentally prepared. Always carry pepper spray and learn self defense. Ways of Preventing Teen Parenthood Teenage pregnancy is a rather frightening reality that can change your life in an instant. The good news is that teenage pregnancy is avoidable: By not having sex, you never risk getting pregnant. If you do decide to have sex, its best to stay informed about what you can do to avoid unwanted pregnancy. Abstinence is the only form of birth control that is 100% effective in preventing pregnancy. Abstinence also protects people form STDs. This way helps teenagers to refrain from getting pregnant. Also prevents pregnancy by keeping the sperm out of the vagina. For us, abstinence is the safest way of preventing pregnancy. It has many benefits, it has no medical and hormonal side effects and it is free. Teenagers can used this method to focus on school, career and family. Any woman or man can abstain from sex play. Many do so at various times in their lives. Teen girls are more likely to get pregnant if they have limited or no guidance from their parents. Many parents have busy lives that prevent them from providing the guidance and support that their young teenagers need to make good decisions on issues such as sex. If you’re a parent, talking to your children will have a big effect on them especially when you’re talking about intercourse. Communicating with your children about sex, love, and relationships is often more successful when you are clear in your own mind about these issues. Start the conversation, and make sure that it is honest, open, and respectful. Many inexpensive books and videos are available to help with any detailed information you might need, but don’t let your lack of technical information make you shy. If you’re a teenager, ask advices to the people you trust. Let them clarify issues about pregnancy and sex. Don’t be shy asking your parents about it. Being open to them will keep you away from the risk of getting pregnant. The effectiveness of birth control methods is critically important for reducing the risk of unintended pregnancy. Effectiveness can be measured during â€Å"perfect use,† when the method is used correctly and consistently as directed, or during â€Å"typical use,† which is how effective the method is during actual use (including inconsistent and incorrect use). Using contraceptives helps those to refrain to avoid pregnancy also some contraceptives are good for health. You can use injectable progestin; this method is extremely effective since all thats required of a woman is to return to her health care provider for a shot every three months. Males can use male condoms; these are thin tube made of latex. This is the best contraception to avoid having STDs. Psychological Effect of Teen Pregnancy Its common for pregnant teens to feel a range of emotions, such as fear, anger, guilt, confusion, and sadness. It may take a while to adjust to the fact that youre going to have a baby. Its a huge change, and its natural for pregnant teens to wonder whether theyre ready to handle the responsibilities that come with being a parent. A. Emotional Effect 1. Initial Excitement Some teenagers are excited to bear a child, especially when it is their first pregnancy. They are excited to see their baby. Others are excited to buy clothes and other things for the baby. They think of names for the baby. 2. Confuse Some are confused and at a loss on what to do. They are too young and many have no idea about bearing a child. 3. Afraid Some are scared. They think of questions like, â€Å"How should I tell my parents? † â€Å"How will I face my classmates? † or â€Å"What is the best thing to do to solve this problem? † They are afraid to answer these questions. They feel scared on what will be the reactions of their parents. 4. Frustrated Pregnant teenagers will realize that they are not yet ready to bear a child when it’s already late. 5. Hopelessness Low self-esteem increases vulnerability and decreases her ability to refuse to go along with risky sexual behaviors. 6. Denial – Some teenagers just neglect and abandoning her/his baby. 7. Worries about the future – Several uncertainties may arise. She may start worrying how would she dealing with the baby herself. 8. Mood Swings Its very common to have mood swings during pregnancy. Some girls may also experience depression during pregnancy or after delivery. B. Mental Effect of Early Pregnancy 1. Depression It is common among pregnant teenager who is desperate to solve their problems. Some teenagers try to solve their problem by abortion and suicide. Abortion, it is the removal of a fetus from the mother’s womb. Abortion is illegal. About 300,000 to 500,000 women undergo abortion every year. Article 256, 258 and 259 in the Revised Penal Code of the Philippine penalize women who undergo abortion and others who help her with imprisonment. Some teenager, however, think that abortion is a way to solve their problem. Medical Risk A woman of any age is pregnant and unaware of it is likely not to get the nutrition she needs to sustain both herself and her unborn child. Part of what boosts the rate of mortalities in teen births is that, worldwide, teens have a higher rate of premature birth and low birth-weight babies. Many researchers believe that this is due to a lack of adequate prenatal care, either because teen mothers are too scared or lack the financial resources to seek out medical help. Many wait until the third trimester to see a doctor, which raises levels of anemia and nutritional deficiencies in young mothers. Because of this lack of early care, children of teen mothers are more likely to suffer from health issues and to be hospitalized within their first year of life. Prematurity plays the greatest role in low birth weight, but intrauterine growth retardation (inadequate growth of the fetus during pregnancy) is also a factors. The younger a mother is below age 20, the greater the risk of her infant dying during the first year of life. It is very important for pregnant teens to have early and adequate prenatal care. Factors can be divided into maternal and fetal. Maternal factors include age (younger than age 15, older than age 35); weight (pre-pregnancy weight under 100 lb or obesity); height (under five feet); history of complications during previous pregnancies (including stillbirth, fetal loss, preterm labor and/or delivery, small-for-gestational age baby, large baby, pre-eclampsia or eclampsia); more than five previous pregnancies; bleeding during the third trimester; abnormalities of the reproductive tract; uterine fibroids; hypertension. Premature may have problems with his or her vision, digestion, and respiratory. Children born to teenage mothers are less likely to receive proper nutrition, health care, and cognitive and social stimulation. As a result, they are at risk for lower academic achievement. Teens are more at risk for certain problems during pregnancy, such as anemia, high blood pressure, and giving birth earlier than usual (called premature delivery). Clinic-focused programs provide easier access to information, counseling by health care providers, and contraceptive services. Many of these programs are offered through school-based clinics. See a doctor as soon as possible after you’ve found out that you are pregnant to begin prenatal care. Take vitamin supplements that are recommended by your doctor to support you and your baby’s health. Avoid the intakes of drugs and alcohol during pregnancy. Using illegal drugs such as cocaine or marijuana during pregnancy can cause miscarriage, prematurity, and other medical problems. Babies can also be born addicted to certain drugs. Socioeconomic Problems Throughout the developed world, teenage pregnancy is more common among young people who have been disadvantaged in childhood and have low expectations of education or the job market. Socio-economic circumstances seem to play a major role in rates of teen pregnancy. There may be a growing â€Å"lost generation† of young people who see no reason not to get pregnant. Teens coming from poor economic status and single parents are more likely to participate in risky sexual behaviors. For some disadvantaged youth, particularly for girls whose self esteem tends to drop as they mature, sexuality may be all they have to value. Children of teenage parents are more likely to have problems and to eventually become teenage parents themselves, thus perpetuating the cycle of poverty begun by a teenage birth. It is widely acknowledged that health and social status are intimately related such that individuals in higher social classes are healthier and live longer than those in lower classes. This is true regardless of whether income, education or another socioeconomic indicator is used and regardless of the health outcome used. Teen mothers are less likely to complete the education necessary to qualify for a well-paying job —only 38 percent of mothers who have children before age 18 obtain a high school diploma. This disparity in education, not surprisingly, tends to affect income level. Teenage mothers and fathers tend to have less education and are more likely to live in poverty than their peers who are not teen parents. Babies born to teen mothers are more likely to have health problems at birth, do poorly in school, do time in jail and also become teen parents. Teen pregnancy is the leading cause of females dropping out of high school. Furthermore, less than 2 percent of teen mothers attain a college degree by age 30. Because of their lower education status, teen mothers on average earn lower incomes than their peers, and are thus more likely to be in poverty. Unmarried mothers of all ages reported most dissatisfaction with educational achievement. With the little income of both parents, it’s very difficult to provide with the required nutrition and care. It’s very difficult for teenage mother and father to support themselves and their baby. As their education is cut short, it’s very difficult for teenage parents to find decent job. Some parents just abandoned their child to escape the poverty. Teen Fathers The adolescent father faces immediate developmental crises, which include completing the developmental task of adolescence making a transition to parenthood, and sometimes adopting to marriage. These transitions can be stressful. The decision to include the young father in all aspects of the care is based on assessment in the following four areas: (1) the couple’s relationship; (2) levels of stress, concern, and coping; (3) educational and vocational goals; and (4) the level of health education knowledge. Adolescent fathers need support to discuss their emotional responses to the pregnancy. The father’s feelings of guilt, powerlessness, or bravado should be recognize because of their negative consequences for the parents and the child. Counseling the adolescent fathers needs to be reality oriented. Topics such as finances, child care, parenting skills, and the father’s role in the birth experience must be discussed. Teenage fathers also need to know about reproductive physiology and birth control options as well as safer sex practices. The adolescent father may continue to be involved in an ongoing relationship with the young mother and his baby. In many instances, he also plays an important role in the decisions about child care and raising the child. He is encouraged to use coping mechanisms that are not detrimental to his own, his parent’s, or his child’s well-being. Fathers can experience postpartum depression. There is a lot of advice out there for girls who find them facing an unwanted or unexpected pregnancy but there is very little information out there for guys. It takes two to make a baby but all too often when the pregnancy is announced the guy gets lost in the confusion. But teen fatherhood is not something to be taken lightly and along with responsibilities to the mother and the child you have rights that you need to know about. Teen fathers are more likely to get involved with criminal behavior, including alcohol and drug abuse, and drug dealing. Depending on their age, teen fathers can also face charges of statutory rape. Teen fathers earn less over time than men who have children at an older age. Over time, teen fathers earn 10 to 15 percent less annually than male teens that wait to have children. A young fathers financial insecurity or confusion about child care was most likely to lead to a stated disinterest, and that disinterest predicted uninvolvement. .To be a good teen father you can do the following: Choosing to stand by your baby is a big deal and shows that you definitely have the potential for the job. If you are still in a relationship with the mother of the child then that’s great, you can work together to be good parents and raise a happy child. Be sure to support the mother through the pregnancy, it is a very difficult time for her and her body is changing in a big way. Try and have some sort of balance, if you are working constantly you will never get to see your child. Teenage fathers should be a role model to their baby. They are the one shaping the characteristic of their children. Teen Mothers The very young adolescent mother is inexperienced and unprepared to recognize the early sign of illness, potential danger, or household hazards. She may inadvertently neglect her child. The higher mortality rates among the infants of adolescent mother are attributed to the inexperience, lack of knowledge, and immaturity of the mothers, causing them to unable to recognize a problem and obtain the necessary resources to rectify the situation. Nevertheless, in most instances, with adequate and developmentally appropriate teaching, Adolescents can learn effective parenting skills. The transition to parenthood may be difficult to adolescent parents. Coping with the developmental task of parenthood is often complicated by the unmet developmental needs and tasks of adolescents. Some young parents may experience difficulty accepting a changing self image and adjusting to new roles related to the responsibilities of infant care. Other adolescent parents, however, may have higher self concepts than their non-parenting peers. As adolescent parents move through the transition to parenthood, they may feel different from their peers, excluded from fun activities, and prematurely forced to enter an adult social role. The conflict between their own desires and the infant’s demands, in addition to the low tolerance for frustration that is typical of adolescents, further contribute to the normal psychosocial stress of child birth. Maintaining a relationship with the baby’s father is beneficial for the teen mother and her infant the involvement of the baby’s father is related to appropriate maternal behaviors and positive mother-infant relationship. Adolescent mothers provide warm and attentive physical care; however, they use less verbal interaction than do older parents, and adolescents tend to be less responsive to interact less positively with their infants than do older mothers. In comparison with adult mothers, teenage mothers have a limited knowledge of child development. They tend to expect too much of their children too soon and often characterize their infants as being fussy. This limited knowledge may cause teenagers to respond to their infants inappropriately. Sex Education Comprehensive sex education can for the most part be considered to people as having no effect on teens to avoid sex, but others can see it has a way to decrease teen pregnancies in America. According to Advocates for Youth (2009), comprehensive sex education programs helped youth â€Å"delay onset of sexual activity, reduce the frequency of sexual activity, reduce number of sexual partners, and increase condom and contraceptive use. † An important component of an ongoing sex is effective communication with parents. When peers are the primary source of sexual information, it is transmitted and exchanged in secret conversation and contains a large amount of misinformation. Adolescent need precise and concrete information that we allow then to answer questions such as â€Å"What if I start my period in the middle of class? † or â€Å"How can I keep people from telling I have an erection? † it is important to tell them what they want to know and what they can expect to happen as they became mature sexually.

Organisation of the Retail Sector

Organisation of the Retail Sector For the purpose of this assignment, I shall start off the assignment by defining the term retailing. I shall then describe how the retail industry is organised include many ways and places in which retail is conducted and finally I shall describe the changes that are taking place in the industry structure. Retailing is to provide services and products and at a profit. Retailing consists of the sale of goods for personal or household consumption operating from an appropriate location offering wide range of access to its target audience. For example, Retail Park in (Lakeside) ensuring adequate stock is available to meet customer demand as well as offering attractive and distinctive products. Ways and places in which retail is conducted There are immense ways and places in which retail may be conducting in current environment, however the aim of all types of retails is to engage with customer effectively and achieve the organisation aims and objectives through the various strategies that may suit them. Some of the ways and places are mentioned in detail as following. Classification of types of store There are several classifications of types of retail store as shown in the table below. Type of retailer Example Independent Corner shop such as Multiple chains Pharmacy, Department stores John Lewis, Selfridge, Tesco Metro Supermarkets Iceland, Morrison, Mark Spencer, Tesco Catalogue stores Argos, Empire direct, kays Discount stores Pc World, Maplin, Currys, Comet, Superdrug Emerging store types There are number of new store formats have appeared recently as mentioned below Shopping village Outlet Stores, Factory Shops, Factory Outlets, there are many names but only one concept, and that is to bring you designer products at discount prices. For example, shopping village in Oxford provides designer cloths at discount prices through website. Factory shops The factory shop is attached to a factory. A factory shop normally sell imperfect produced in the adjacent factory. In other words goods that may not be satisfactory produced in nearby factory. For example, The original factory shop offering a wide range of merchandise Ladieswear, Menswear, Kidswear, Sportswear, Football, Electricals, Housewares, Toys and Gifts, Beauty and Fragrance all discounted. Much of what they sell is either branded or is originally made for other high street stores and supermarkets. Television sales channels In recent years cable or satellite channels companies have dedicated shopping channels such as QVC and Express Shop to allow the consumer to order online instantly through remote control. E -Retailing The internet has tremendous change on the shopping habit of consumers and selling and buying products over the internet continues to gain popularity. This is because the internet has tree main advantages such as Convince shopping over internet allows consumer to shop online without having to leave their house Choices this is seen as the biggest advantages as the internet allows access to wide range of products from across the world for example EBay, this gives advantage to internet over shopping centre. Cost in general, goods sold online are much cheaper than those sold in shops and the expenses to run the website is relatively less than running physical shops. Online and physical stores The combination of technology and physical appearance of store is combined together, for example an electric store Pc World attempts to combine both an online web store and a physical store as it allows customer to surfer to order online and pick up from the store as well as delivering at their doorsteps. Service versus product retailing Organisation providing high proportion of services emphasis on providing effective marketing mix, such organisation includes banks, estate agents, cafes e.t.c. however product retailer emphasis not as much as service providing organisation. It is because service can exists within customer and organisation for long time such as Tenants and agents and therefore the agents has to provide effective service to convey customer and not loss it, on the other hand retailer selling cable electrical products, if once sold to customer then it will be used as long as the fault becomes. Therefore the service can exist for a long time where as providing products can be flexible and quick. Classification of retailers Retailers can be classified from variety of viewpoints, for example higher number of employees and sales turnover is indication of a tall structured organisation. There are other factors as well such as the size and product strategy, for example very large stores such as ASDA and Morisons selling a full range of food and non food products. In the UK 11% of all enterprises are retailers operating from around 280,000 retail outlets. Location The places of shopping have become more diverse, todays there are local, city centre and out of town retail parks, plus regional shopping developments. Local Local shops are located and serve suburban areas or smaller towns. They generally consisted of significant number of stores. The aim of such stores is to provide flexible shopping for consumers in a given locality enabling them to shop close by where they live rather than having to travel far away. In town stores and shopping centres It is commonly known as typical high street which is consisted of Department stores (such as Mark Spencer) Multiples (such as new Look) Service retailer (such as building societies and banks) The aim of such town stores and shipping centres is to provide large coverage and access to all possible products and services that is commonly used by consumers such as cloths, food and non food products, banking e.t.c. it is to maximising the efficiency of providing everything at located places. Out of town retail parks and regional centres There are huge regional shopping complexes located in several out of town sites in the UK. They have more attraction than shopping mall on large scale, these provides wide range of facilities such as restaurants, cinema, cash points as well as train stations and motorway access. Other out of town includes stores such as Comet, Dixons, Pc World, MF and BQ. The reason for such stores is that it is easy to park, prices are competitive and the size of these stores is huge means a great variety of goods is on sale. Ownership The ownership of retail stores reflects the diverse nature of the industry. Independent retailers are organisation with fewer then ten branches. Independent retailers tend to offer specialist range of products for example medicines, they also sell a range of products including groceries household goods, wine and spirits. Multiple retailers are organisation with more than ten branches. Some multiples are classified as specialist such as Burtons for clothing. Multiple variety stores like Boot s and Mark Spencer offer wide range of food. These stores tend to be in busy shopping areas and the prices tend to be relatively low. Voluntary chain retailers choose to buy most of the stock from the certain wholesalers whose price tends to be relatively low due to their buying power such as SPAR. Franchised retailers are granted the rights in a geographical area. In simple words, it is legal right given to a person who wishes to run the branch of established business or organisation an example would be Mc Donald or KFC. The franchisee pays a fee based sales or even agrees to buy supplies from the franchisor. Structured of the retail industry The structured of the retail industry has become more diverse due to expansions of brands in different type of location. The structure of retail can be noticed from number of perspectives such as the size and profitability, Trends in sale and other aspects. Size The size of UK retail industry continues to grow but not as rapid as it was from year 2000 to 2007. This is due to competitive market and economic turmoil in the current environment which is forcing industry size to be limited or even reduce it as the sales begin to slump. Trends in sales Form the past two year the retail sales have fallen dramatically due to the affect of recession on their sales, some retailers have reported of 10% sales being fallen. This has reduced the growth rates of the UK retailers. UK retail sales values fell 0.1% on a like-for-like basis from August 2008, however Retail sales in central London in November were 13.3% higher on a like-for-like basis than a year ago, when sales had fallen 0.4%, as financial turmoil hit consumer confidence especially in the City. This shows the glowing picture of sales. Profitability The formula for better profit is high sales and similarly low sale contributes to low profit. The retailers from across the country have reported improved sales from the last three years this means presumably healthy profit. however it cant be neglected that the uncertainty still remain in the British economy. But for the mean time the retailer are enjoying the volume of profit. Store size and location Some of the retailers such as Tesco have expanded in terms of the size and location. The management have made changes into physical structure enlarging it even further in some of the stores. Tesco have also begun to deploy stores in community such as Tesco Express in local community where the local shops are also operating. In general, it is noticed that retailer are committed expand the physical size as well as location such as retail park to provide maximum access to consumers. Not-for-profit and public place retailers There has been a growth in not for profit retailers such as Oxfam, Cancer research. They sell goods brought in by donors and use voluntary staff. The growth can be as people are becoming aware of their aims and objectives and thus feel compassionate towards their cause. Public retailers also have common variety of diverse venues, for example there has been noticeable rise in the products available from vending machines as it provide more services such as hot drinks. Similarly, there has been increased in retailers in main rail station for example, WHSmith is a common sight at many UK rail stations. Employment characteristic The retail industry employee approximately 3 million people, over the last five years employment in retailing has grown by 141,000. However, from the last year there has been decline in retail employment due to economic turmoil and the demand of employment has reduced significantly. Conclusion In this assignment, I have defined the term retailing described how the retail industry is organised through many ways and places in which retail is conducted and I have described the changes that are taking place in the industry structure

Islamic Banking Resistance to Securization

Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s Islamic Banking Resistance to Securization Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s