Models of Takaful in Bangladesh Perspective Free Essays

string(118) " hovers somewhere well below 2% of gDP, and its growth in the global market is expected to continue in the long term\." Milliman Research Report Prepared by: Safder Jaffer Farzana Ismail Jabran Noor Lindsay Unwin Reviewed by: Debo Ajayi November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Milliman Research Report Contents EXECUTIVE SUMMARY 2 BACkgROUND AND MARkET OUTLOOk 3 PRINCIPLES AND PRACTICES UNDERLYINg TAkAFUL TAkAFUL OPERATINg MODELS 11 ISSUES AND ChALLENgES FACINg ThE TAkAFUL INDUSTRY 15 CONCLUSION 25 APPENDIX I: gLOSSARY 26 APPENDIX II: BIBLIOgRAPhIC REFERENCES 28 APPENDIX III: SELF REgULATINg BODIES TAkAFUL gROUPS 29 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 1 Milliman Research Report exeCut ive summary Through desktop research, one can get a plethora of materials and papers on Takaful, but most tend to focus either on the fundamentals of Takaful or on Takaful models. In contrast, the objective of this report is to highlight the key issues and challenges facing the world of Takaful and suggested areas where work is required to find solutions. Therefore this report is intended to provide useful reference material for practioners by summarising the following key items: †¢ An overview of Takaful and the intricacies of the models †¢ Insights into the issues and challenges facing the Takaful industry †¢ Finding sustainable solutions to some of these challenges Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 2 Milliman Research Report BaCkground and market outlook Muslims account for around 25% of the world’s total population, but despite rapid growth in recent years, insurance sales within the Muslim population remain a small fraction of the total insurance market. We will write a custom essay sample on Models of Takaful in Bangladesh Perspective or any similar topic only for you Order Now Historically, the incompatibility between conventional insurance and key tenets of the Islamic faith has acted as a significant barrier to sales. These differences have led to very low penetration rates and have left many Muslims with little external protection for their dependents or possessions. The development of Takaful, which originates from the Arabic verb ‘kafalah,’ which means ‘to help one another’ or ‘mutual guarantee,’ has been driven by a need to overcome these obstacles and create an insurance proposition that is fully compliant with Shariah (Islamic law). It offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and nonlife sectors that is acceptable to the Muslim faith. For non-Muslims, Takaful products potentially offer an alternative source of insurance protection—with different investment objectives, an approach to surplus distribution, and an oversight system with an ethical dimension. Hence in Malaysia, for example, non-Muslims account for more than 60% of the total Takaful premiums. Takaful offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and non-life sectors that is acceptable to the Muslim faith. Figure 1: geographiCal spread oF muslims as a % oF total population No data 0-5% 5-10% 10-50% 50-75% 75-100% Sources: U. S. State Department, CIA WORLD FACTBOOK, Swiss Re Economic Research Consulting Market Size and Outlook Whilst Takaful started in 1979 in Sudan, it only gained momentum in early 2000 when the Malaysian government promoted it and significant growth was witnessed thereafter. The growth of Takaful has varied significantly from country to country and its success, or otherwise, has been largely dependent on the awareness and affluence of the local population, as well as on the robustness of the local regulatory framework. Hence the highest growth has been observed in places such as Malaysia (with its considerable awareness of Takaful and robust regulatory framework), whereas growth in the Middle East has only recently begun to take off. Depending on the definition of Takaful, the currently quoted volumes in terms of premiums range from USD$1 billion to USD$5. 6 billion. Although the exact size of the Takaful market has often been disputed, there is general acknowledgment of the rapid growth of the industry. In 2007, Takaful premiums in emerging markets grew by roughly 26% and accounted for 5% of insurance premiums Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 3 Milliman Research Report written in Muslim countries. 1 According to Takaful Re, a Dubai-based Retakaful company, Takaful premiums crossed the USD$3 billion mark in 2007 as seen in the table in Figure 2. Figure 2: takaFul premiums (usd$ millions) gCC 2004 2005 2006 2007 770 SAUDI ARABIA 1,238 1,579 2,046 645 1,065 1,340 1,695 KUWAIT 54 83 90 124 UAE 31 42 65 109 QATAR 25 34 50 76 BAHRAIN 15 15 34 59 south east asia MALAySIA 474 544 692 951 343 412 534 797 INDONESIA 77 75 80 94 THAILAND 30 30 32 35 24 27 30 35 aFriCa BRUNEI 121 181 215 317 levant 14 17 21 32 5 8 11 18 1,384 1,988 2,518 3,364 indian suB-Continent total Source: Takaful Re The projected Takaful written premium estimates have often been debated by practitioners because of the wide range of numbers published by various sources. There is difficulty in determining firm estimates of the total industry potential as there is a wide variety of Takaful definitions and categorisation, as well as a lack of consistent and credible data. Oliver Wyman suggested in a recent study that the Takaful premium potential is at least USD$20 billion whereas Swiss Re in its annual Sigma report sees a potential of USD$56 billion. Takaful premiums by 2015 are estimated to be in the range of USD$7 billion to USD$8 billion. Hence it is necessary to exercise caution when analysing projected figures. Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of gDP, and its growth in the global market is expected to continue in the long term. You read "Models of Takaful in Bangladesh Perspective" in category "Essay examples" Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of GDP, and its growth in the global market is expected to continue in the long term. Global estimates for the growth of the worldwide Takaful industry come in at 20% per year, far outstripping the 2. % annual growth for conventional insurance premiums. 2 It is interesting to note that many Takaful providers have emerged largely unscathed from the financial crisis, as investments are commonly held in highly liquid assets, which is due to limited Shariah-compliant investments. Insurers considerin g entry to the Takaful market are better off assessing the markets and opportunities sooner rather than later. Targeted marketing and consumer education are essential to develop market awareness and established insurers can leverage their existing marketing and distribution platforms. The lack of a clear market leader in Europe and the UK means that insurers can take advantage of the challenges and opportunities present in a developing global industry. 1 2 Swiss Re (2008). Insurance in the emerging markets. Sigma, Issue No. 5. PricewaterhouseCoopers (2008). Takaful : Growth opportunities in a dynamic market. Retrieved Nov. 3, 2010, from http://www. pwc. com/en_GX/gx/financial-services/pdf/pwc_takaful. pdf. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 4 Milliman Research Report rinCiples and praCtiCes underlying takaFul Principles Underlying the Takaful Industry The Islamic Financial Services Board (IFSB), a self-regulated organisation in Islamic finances, produced a paper on governance (in December 2009) and defines Takaful as follows: Takaful is the Islamic counterpart of conventional insurance, and exists in both Family (or ‘Life’) and General forms. Takaf ul is derived from an Arabic word that means joint guarantee, whereby a group of participants agree among themselves to support one another jointly for the losses arising from specified risks. In a Takaful arrangement the participants contribute a sum of money as a Tabarru’ commitment into a common fund that will be used mutually to assist the members against a specified type of loss or damage. The underwriting in a Takaful is thus undertaken on a mutual basis, similar in some respects to conventional mutual insurance. A typical Takaful undertaking consists of a two-tier structure that is a hybrid of a mutual and a commercial form of company – which is the Takaful operator (TO) – although in principle it could be a pure mutual structure. Hence there is a recognition that whilst the current ‘Takaful’ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. This will be analysed later when discussing the opportunities and challenges of the Takaful industry. There is a common misunderstanding that insurance or risk mitigation is not allowed under Islam, as Muslims believe that only God knows one’s future and faith. The following conversation taken from the sayings of the Prophet Muhammad depicts an interesting message as to why Muslims should indeed reduce the risk of loss: Whilst the current ‘Takaful’ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. Prophet Muhammad asked a Bedouin who had left his camel untied, ‘Why do you not tie your camel? ’ The Bedouin answered, ‘I put my trust in God. ’ The prophet then said, ‘Tie up your camel first and then put your trust in God. ’ Every society has risk management needs and, with the evolution of time, the methodologies also evolve. Almost 10 centuries before the advent of conventional insurance companies, the Muslim societies in Arabia adopted concepts of risk mitigation such as ‘hilf’ to assist victims of natural disasters or hazards of trade journey. Another common practice widely used in Islam was ‘al-aqilah. ’ Under the custom of ‘al-aqilah,’ it is mutually agreed that, if a person is killed unintentionally by another person, the paternal relatives will take the responsibility to make a mutual contribution for the purpose of paying the blood money to the victim’s relatives. This practice of having a fund that pools contributions from a group of people to assist others in need is akin to mutual insurance. It is important to point out that the mutual assistance was not originally a commercial transaction and did not contain any profit or gain at the expense of others. Rather it evolved as a useful social practice to mitigate the burden of an individual by dividing it among fellow members. There are certain key issues within conventional insurance that Islam does not permit: †¢ Riba, or usury: The first of these is the earning of interest, referred to in Islam as Riba. It is a concept expressly prohibited at several points in the Quran. Traditionally viewed from the perspective of a loan, Riba is considered unfair and inequitable to the borrowing party and therefore earning interest is forbidden under Shariah law and Muslims must avoid Riba in all of their financial transactions. †¢ gharar, or uncertainty: The second element is the presence of uncertainty embedded in the design of conventional insurance products. Uncertainty and the trading in risk are classed as Gharar, a concept forbidden in Shariah law to protect participants from hazardous or unjust transactions. Conventional insurance is designed around the transfer of risk in return for a premium, and the timing, severity, and/or frequency of insured events are each subject to Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 5 Milliman Research Report varying degrees of uncertainty. The perception that insurance products commonly contain unclear contract terms furthers the view that a high level of uncertainty pervades all aspects of conventional insurance. Maisir, or gambling: Related to Gharar is the concept of Maisir, also prohibited under Islam, which captures those transactions with an underlying gambling or speculative nature. In the context of life insurance, many contract designs can be viewed as gambles which ultimately benefit one side of an insurance contract at the expense of the other. For example, by taking out a term assurance contract, the risk is transferred to the insurer for a fixed premium and the payment of a small sum could potentially yield a disproportionately large payout, benefiting the policyholder at the expense of the insurer. Alternatively, the payment of a stream of premiums for many years could result in no return at all, which benefits the insurer. †¢ haram, or forbidden: Conventional insurance designs may have investments in a number of asset classes that partake in activities prohibited within the Muslim faith, such as investments in alcoholrelated companies, pornography, or gambling-related enterprises such as casinos. Such activities are considered Haram or forbidden in Islam, and consequently, the proceeds of the conventional insurance are also deemed to be unacceptable in the Muslim faith. There is a further focus in Takaful (and in Islam in general) around the importance of moral values and ethics as business is meant to be conducted openly in accordance with the utmost good faith, honesty, full disclosure, truthfulness, and fairness in all dealings. It is not within the scope of this report to look into the Shariah matters in depth as there is a diversity of opinion on the exact principles of Takaful. There are some schools of thought within Islam that allow conventional insurance so long as it does not involve Riba (or usury) whilst others have a range of tolerance with some of the key issues mentioned above. However, by and large, there is broad consensus on the solution to these issues. This emerged in the late 1970s in Sudan, but gained more prominence in the 1980s in Malaysia and the Persian Gulf countries in the form of Takaful. Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. Takaful can thus be seen as the Islamic counterpart of conventional mutual insurance (i. e. , insurance that is compliant with the Shariah). Takaful is not a type of insurance but rather an alternative to insurance. It has to operate on cooperative principles and incorporate the concept of Tabarru’ (donation, gift). Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. It is a one-way transaction which does not expect a definite return on the donation, unlike the more traditional bilateral conventional insurance contract where a premium is paid in return for an insurance benefit. The pooling does eliminate Gharar, as the uncertainty about future claim events certainly still exists but now is acceptable as the donation (Tabarru’) is meant for mutual assistance and not for profittaking or gambling (contracts of charity are not affected by the prohibition of Gharar). However, unlike conventional insurance where the risk is transferred to the insurer, all participants mutually share the risk in Takaful, which is an important fundamental difference. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 6 Milliman Research Report The chart in Figure 3 summarises the key differences between conventional insurance and Takaful. Figure 3: Comparison oF Conventional insuranCe and takaFul Conventional insuranCe takaFul A risk transfer mechanism whereby risk is transferred Based on mutuality; hence the risk is not transferred but from the policyholder (the insured) to the insurance shared by the participants, who form a common pool. The company (the insurer) in consideration of an ‘insurance company (takaful operator) acts only as the manager of premium’ paid by the insured. the pool. In effect, the policyholders are both the insurer and the insured. Contains the element of uncertainty, i. e. , gharar, which The element of uncertainty, i. e. , gharar, is brought down is forbidden in islam. The terms of the contract are to acceptable levels under shariah by characterising unclear as to certainty of when any loss would occur contributions as donations (Tabarru’), not obligations, and and how much compensation would be payable. for a good cause, i. e. , To mitigate the loss suffered by any one of the participants, as opposed to payments linked to definite expectation of insured benefits to be received. Contains an element of gambling, i. e. , Maisir, in that the The participant pays the contribution (Tabarru’) in the insured pays an amount (premium) in the expectation spirit of ne’ea (purity) and brotherhood to cover mutual of gain (compensation/payment against claim). If the losses of members of the pool. Losses and gains are anticipated loss (claim) does not occur, the insured loses mutually shared by the pool members who contribute the amount paid as premium. If the loss does occur, to the pool. That is, third parties (insurers or reinsurers) the insurer loses a far larger amount than collected as re not affected by the outcome of risk events. premium and the insured gains by the same. Funds are mostly invested in fixed interest-bearing Funds are only invested in non-interest-bearing, i. e. , instruments such as bonds, fixed interest securities, etc. Riba-free, instruments. Note that regular income hence these contain the element of riba (usury), which is investmen ts are still possible (such as under forbidden in islam. Sukuk, islamic bonds) as long as the income is not interest-based. Surplus or profit belongs to both the shareholders and Surplus belongs to the participants and is accordingly he with-profit policyholders. The insured is covered returned to them. during the policy period but is not entitled to any return at the end of such period. The concept of Shariah (Islamic law) compliance is an evolving one and is overseen by the Islamic scholars that sit on the Shariah Supervisory Board, which provides the final certification of compliance. The scholars base their views primarily on the principles of the Quran, supplemented by Sunnah (the teachings of the Prophet), Fatwas (judicial opinions of Shariah scholars), and Islamic jurisprudence on economic transactions. While the words of the Quran and Sunnah are sacrosanct, the independent reasoning of Shariah scholars can be revoked or adapted to suit changing circumstances, and new developments are dealt with by legal reasoning and judgment of Shariah scholars. This creates a moving goalpost, which is one of the challenges in the Takaful industry which will be discussed further in Section 4. Takaful provides Shariah-compliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee. The mutual guarantee offered by Takaful is centred on a transparent, ethical, and Shariah-compliant agreement between the i operator and participants. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful provides Shariahcompliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee. 7 Milliman Research Report Practices in the Takaful Industry This section provides an overview of the components and current practices in the Takaful industry, including: †¢ †¢ †¢ Practices within Family Takaful (Life) and General Takaful Shariah-compliant assets Retakaful Retro-Takaful Family Takaful (Life) and General Takaful As introduced above, conventional insurance as sold in Western markets is fundamentally irreconcilable with several tenets of the Islamic faith. In terms of life insurance, Shariah scholars view these contracts as a gamble on the insured’s life. There is uncertainty surrounding when and if death will occur within the covered period, and in the event that no claim is made the policyholder is considered to have made a loss. For Muslims, this incompatibility rules out traditional life insurance as a means of obtaining protection for their dependents. Family Takaful offerings provide access to life coverage in a manner which does not conflict with their religious beliefs. Takaful is structured around the core principle of sharing and pooling mortality/ morbidity risk with fellow participants rather than transferring it to a profitoriented corporate entity. Takaful is structured around the core principle of sharing and pooling mortality/morbidity risk with fellow participants rather than transferring it to a profit-oriented corporate entity. The concept of mutual support allows many parallels to be drawn between Shariah-compliant Takaful operations and mutual insurers. However, unlike mutual insurers and friendly societies, current Takaful operations involve shareholders who have a profit motive, who provide the capital and fund the administration of the risk pool, and who are separate from the participants. Hence, Takaful operations can be viewed as Shariah-compliant commercialised mutual insurance operations. This structure of necessity, which is due to the need for capital, creates another set of challenges to be discussed further in Section 4. Similar to the concept of with-profits products sold by mutual insurers, Family Takaful is designed to combine protection for the benefit of one’s dependents with a savings element and requires the distribution of surplus to participants. However, the requirement of transparent disclosure of charges makes Family Takaful contracts akin to the clear charging structure underlying a unit-linked insurance contract. Current practice is to develop Shariah-compliant variants of conventional insurance products. Family Takaful variants of most common life products, including level and decreasing term assurance, savings and retirement plans, and critical illness coverage, have been successfully launched in various markets. For example, a direct contribution style of savings scheme offering equity exposure could be developed by limiting investment to stock issued by companies that meet the non-Haram or Halal (lawful) requirements. Even product designs, such as annuities and whole life plans, whose inherent features include an uncertain duration, are currently being considered as Takaful offerings. A consequence of mutuality, voluntary contributions, and absence of third parties (such as the insurer in conventional insurance) to share in the risks is that Family Takaful contracts cannot (or do not) offer guarantees to the participants. Guarantees on investment returns, bonuses, risk charges, or premiums, etc. , are not offered under Takaful products. While Takaful practice allows the spread of risk through reinsurance from Retakaful companies, or conventional reinsurers on a necessity basis, this practice is not to allow guarantees as the reinsurance pool is seen as an extension of the primary risk pool. Accordingly, investment returns on contributed funds by the participants are based on actual investment experience. However, the Takaful operator is obligated to advance a loan (qard), on an interest-free basis, to support any shortfalls in the risk pool in meeting claims. This implicit guarantee of underwriting risk by shareholders of the Takaful operation creates some weakness in the current commercial model of a Takaful operation. Commonly, while there are no guarantees, there are expectations established at point of sale through product illustrations. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 8 Milliman Research Report However, the concept of mutual assistance does not prohibit the use of underwriting and prospective pricing based on experience studies. As with conventional insurance, if the health of a potential participant would result in significant additional strain being placed on the underwriting fund then an extra contribution would be required. The prohibition of interest-bearing instruments does not impact on the use of interest functions in pricing or valuation of long-term liabilities in Takaful. The pricing interest assumption is based on expected returns from Shariah-compliant assets underlying the liabilities. In terms of surplus distribution, any distribution made to participants is based purely on actual surplus arising. As long as the underwriting fund is not in deficit, surplus arising from both investment and underwriting activities can be used to make a cash payment to participants and/or contribute to any claim fluctuation reserve. The latter is set up to cover short-term volatility in the size and incidence of payments out of the underwriting fund. As with regular bonus declarations on conventional with-profits contracts in the UK, surplus distributions, if any, are most commonly made on an annual basis. Participants in a Takaful operation will need to be appropriately and comprehensively educated on this feature of the product design so that reasonable expectations are built up as to the level of distribution. Shariah-Compliant Assets The avoidance of Riba, Gharar, Haram, and Maisir in the design of Takaful products has a significant impact on the investment decisions of a Takaful operation. Contributions must be invested purely in Shariah-compliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Haram or forbidden investments in Islam include financial derivatives such as futures and options, interest-bearing bonds, and equity issued by companies partaking in non-Halal business activities as described earlier. The development of the Sukuk market and a robust Shariah-compliant stock selection process together offer Takaful providers an increasingly viable solution to this investment conundrum. Contributions must be invested purely in Shariahcompliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Shariah law forbids loan issues that are at a discount to their nominal value and, as already discussed, completely restricts the earning of interest (Riba). These two conditions effectively rule out conventional corporate or government bonds. The expanding Sukuk market offers access to an asset class which shares some properties with conventional bonds and others with equity stock, whilst remaining Shariah-compliant. Regular Income Assets: Sukuk are issued via the creation of a special purpose vehicle (SPV) by an issuing bank that has been approached by a company or government seeking funding for a particular project. Sukuk certificates are then issued in return for an investor’s funding contribution, and rank alongside the bank’s other senior, unsecured debt. Sukuk instruments are structured to provide a direct link to the assets that underlie the particular project and through this link confer shared ownership of these assets to the investor. Investors then receive a regular income based on a target rate of return. Neither this income nor the return of capital on maturity is guaranteed and both will typically vary in line with the revenue of the company (or equivalently the return on or value of the underlying assets). This potential variance is partially offset by the ability of the Sukuk manager to build up reserves when revenue exceeds the target rate, which can be subsequently used to make up shortfalls. Sukuk provides the Takaful market with a legitimate investment alternative to government and corporate bonds. Several issues surround these Sukuk, such as availability, control, and ownership. These issues impact their overall effectiveness in supporting long-term liabilities, especially income annuities. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 9 Milliman Research Report Equities: A Takaful operator does not need to seek an alternative investment in order to gain exposure to equity-type risk and return. Equity stock does not pay interest and offers direct participation in the profits of a listed business whether through dividends or growth in the price of the stock. However, restrictions do exist in relation to the type of company a Takaful operator may invest in to remain Shariah-compliant. To gain exposure to equity returns Takaful operators or their investment managers must apply a screening process to eliminate stocks of companies that are exposed to forbidden industries or breach certain financial conditions. The industries deemed to be non-Shariah-compliant include banking, insurance, gambling, and those linked to pork, alcohol, or tobacco. The financial screening looks at key financial ratios of a particular company, such as conventional debt ratio and the sum of the interest and non-compliant income compared to total revenue. Where these ratios exceed limits laid down by a company’s Shariah Supervisory Board, the equity issued by the company in question is excluded from permissible investment. This screening is a continual process, as the evolving nature of a firm’s business practices and capital structure mean that its status as either compliant or noncompliant is not static. Real Estate and Mortgages: Although there are Shariah-compliant forms of investments in real estate and mortgages, these are currently under-utilised but have significant potentials. Retakaful By entering into a reinsurance contract, conventional insurance companies are able to share risk, gain capital support, or benefit from a broader base of experience in areas such as pricing, underwriting, and claim management. Historically, Takaful operators have sometimes also had to make use of conventional reinsurance owing to the lack of a Shariah-compliant alternative—this exception was based on the ‘dharura’ or necessity principle. The growth in the Retakaful market offers a solution to this problem. Retakaful provides these same facilities to Takaful operators but within a structure that remains Shariah-compliant and in a manner specifically tailored to the particulars of the Takaful market. In the same way as Takaful rovides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In the same way as Takaful provides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In this regard, the operation of a Retakaful fund is very similar to that of a direct Takaful fund. A Retakaful fund must have a Shariah Supervisory Board and the criteria it must satisfy to be considered Shariah-compliant mirror those to which a Takaful fund must adhere. The Retakaful fund receives contributions from each participating Takaful fund and distributes back surplus arising from investment and underwriting activities using one of the models described later in this report. Further, if the Retakaful fund goes into deficit then the Retakaful operator is required to make an interest-free loan or Qard Hasan to the fund to eliminate this shortfall. Re-Takaful operators may not pay commission to a Takaful fund with which it is engaged. In recent years there has been a significant growth in global Retakaful capacity, owing to major reinsurance companies such as Swiss Re, Hannover Re, and Munich Re entering the market. Their entries will help facilitate further expansion of the Takaful market, and the capital support and depth of advice that these players can offer will be invaluable in setting up an operation, wherever the chosen market. Retro-Takaful Some Retakaful operators retrocede conventionally on the ‘basis of necessity’ because currently there is limited Retro-Takaful capacity available. There is talk of a Lloyd’s syndicate for Retakaful players that would imply retroceding each other’s business to reduce volatility and provide the spread of risk, but this has yet to materialise. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 10 Milliman Research Report takaFul operating models The basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. Family Takaful, the Shariahcompliant equivalent of life insurance, is commonly structured so that a participant’s contributions are apportioned between two segregated funds: the investment fund and the underwriting fund. An individual (investment) account is maintained for each participant with the contributions made, net of any upfront fees. From this account, risk charges are deducted to be deposited into the pooled underwriting fund. Contributions paid into the underwriting fund are considered to be made on the Tabarru’ basis, to support all participants in their exposure to mortality/morbidity risk. Any covered claims suffered by the participants are paid from the underwriting fund to avoid the transferral of risk. The basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. The sharing of risk with fellow participants is in contrast to full or partial transfer of the risk to a proprietary company. This also means that if the underwriting fund is insufficient to pay claims then no recourse can be made to shareholder assets. However, in practical terms, to prevent closure of the fund, the deficiency is covered by a temporary interest-free loan (Qard Hasan) provided by the Takaful operator. This would be repaid from future surpluses arising within the underwriting fund. Nevertheless, this arrangement acts as a strong incentive for operators to properly manage the fund, thereby limiting the possibility of making future loans. Takaful is most commonly structured using the following models: †¢ The Mudarabah model: This is a ‘Proprietary’ or ‘Partnership’ model that considers the Takaful operator as a business partner with the participants. It is structured on classic profit-sharing principles, i. e. , a partnership model where the participants provide the capital, while the Takaful operator provides expertise and management of the Takaful fund. A contract details how underwriting surplus and investment profits are shared between operator and participants, similar to conventional insurance (with-profits or articipating business). The Takaful operator shares in the investment and underwriting surpluses via a predetermined ratio mutually agreed with the policyholders at outset. Neither the operator nor the participant can unilaterally alter this agreed sharing ratio, which is usually explicitly set out in the contract at outset. From the perspective of the participants, they do n ot contribute directly to the operator’s costs and all contributions are effectively available to meet claims. Correspondingly, the operator can generally only expect to make a profit by ensuring that the expenses of managing the operation are less than the total share of investment profit and/or underwriting surplus it may receive. If the underwriting fund runs into deficit then the operator is obliged to provide an interest-free loan or Qard Hasan, to be repaid once the fund is in surplus. †¢ The Wakala model: This is an ‘Agency’ model that treats the Takaful operator as an agent of the participants tasked with the administration of the Takaful fund, for which it is compensated through a fixed fee. The operator does not share in the risk nor in the surplus generated from the two funds (investment and underwriting) but instead receives a fixed up-front fee (commonly a percentage of contributions paid) to cover management expenses, distribution costs—including intermediaries’ remuneration—cost of capital, and a margin for operational profit. This fee must be pre-agreed and is commonly expressly stated in the contract. This fee can vary by product and some contracts can change over time. Competitive consideration predominates in the setting of the level and structure of this fee. On the whole, the operator will be profitable if the fee it receives is greater than its incurred expenses. Theoretically, the Takaful operator bears no insurance risks itself. The risk-bearing is seen as a process of solidarity between participants and takes place solely among the collective of insured persons (therefore the name ‘joint guarantee’). However, due to the obligation to make up for any deficits in the pooled underwriting fund, the insurer is indeed exposed to a non-negligible insurance risk: it might not be able to recuperate a Qard Hasan if insufficient surplus is generated Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 11 Milliman Research Report over time. Furthermore, no interest can be charged on the outstanding loan, but this is one of the very intrinsic principles of Islamic finance that has to be strictly followed. In reality, therefore, the Takaful operator under a Wakala model bears more risk than the designers of the model may have intended. In the extreme, the underwriting fund can be underfunded to create perpetual deficit in the fund thus making it the responsibility of the Takaful operator to be at risk perpetually. The diagram in Figure 4 compares a typical Family Takaful structure using the Mudarabah and Wakala models. Figure 4: Comparison oF mudaraBah and Wakala models Participants Participants Investment Fund ’d on at urp nt S me Ta b ar io n Underwriting Fund Surplus shared in predetermined ratio between participants and operator Operator est ru Inv urp nt S me est Inv ar Contribution Investment Fund ru ’d s ent rplus ym Pa g Su im in Cla erwrit d Un Ta b s ent rplus ym Pa g Su im in Cla erwrit d Un Contribution us Wakalah Model lus Mudarabah Model on at io n Underwriting Fund Wakalah Fee (% of Contribution) Operator In the 1980s, in a pioneering Takaful regulatory development in Malaysia, scholars initially accepted the more commercial Mudarabah model. However, recently there have been concerns raised by scholars that Mudarabah may not be appropriate because of the fact that Takaful is supposed to create a ‘surplus’ and not ‘profits,’ and underwritin g surplus is prohibited as this arises from insurance risk. Therefore the element of profit-sharing of underwriting surplus by the Takaful operator within the Mudarabah model is deemed to be not Shariah-compliant. The pure Mudarabah model seems more akin to a business venture rather than a mutually based contract based on solidarity of its participants, which would imply that the Tabarru’ is working capital and is arguably not in the spirit of a donation. Furthermore, the relationship between policyholders and operators lacks transparency. The development of Takaful n the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The development of Takaful in the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The Wakala (agency) framework emerged as the dominant model, and Malaysian scholars have moved in favour of this model too. However, in late 2004, some scholars—particularly those in Pakistan, Bangladesh, and South Africa—began to hig hlight deficiencies with the Wakala approach. As a result of the recent findings in the Takaful industry, there have been many variations of Mudarabah and Wakala developed by practitioners to address the limitations. The variant Takaful models considered in this section are: Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 12 Milliman Research Report †¢ Variant Mudarabah model: A variant of the pure Mudarabah model would be to limit the profitsharing element such that it is only applied to the investment portion, which would then be fully in line with Shariah. However, this model might not be commercially viable as it is likely that the income generated from the investment portion will be insufficient for the Takaful operator. Another variant of this model would be to charge the operating expenses directly from the Takaful fund instead of funding it from the shareholders’ fund (i. e. , the underwriting result is net of Tabarru’, claims, Retakaful, reserve adjustments, and operating expenses). The type and amount of expenses charged to the fund should be laid out to the participants in a transparent manner, although there are concerns about the type of expenses that can be charged to the fund. With the Mudarabah model, there is also the difficulty in managing fixed expenses alongside a variable and potentially volatile surplus, although this feature indirectly encourages the efficient management of the Takaful operation. However, given the many commercial challenges facing the pure and hybrid Mudarabah models, many Takaful operators have opted for the Wakala structure. Wakala with incentive fee model: Critics of the pure Wakala model cite the lack of incentives for the operator to manage the Takaful fund efficiently as the operator does not share in any profits. The operator’s income is a fee, which is based on turnover (i. e. , Takaful contributions). Therefore, the Takaful operator may be driven to write large amounts of new business without due regard to proper u nderwriting or claim management (although to some extent this action is deterred through the commitment of an interest-free loan or Qard). To encourage the operators to apply appropriate underwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation, where the Wakala fee is adjusted (upwards) in the instance of an underwriting and investment surplus. This performance-related fee would not be permitted under a pure Wakala model though the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI, the self-regulatory body) recognises that an incentive fee is permissible. To encourage the operators to apply appropriate nderwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation. †¢ Wakala Mudarabah model (hybrid): This is the most popular model today for Family Takaful operators, where a Wakala is applied on the underwriting fund and a Mudarabah on the investment profit. Specifically, the operator charges a Wakala fee from the Takaful contributions and all underwriting profits are distributed back to the participants. However, investment profit is shared between the participants and the operator based on a predefined ratio. There is an appeal within this model as investment profits are usually the major source of income for Takaful operators, whereas underwriting results can easily be managed using quota share Retakaful arrangements. †¢ Wakala with Waqf model: The main issue in the pure Wakala model is that the element of Gharar (uncertainty) is not fully eliminated because the contribution (treated as a ‘donation’) remains in the participant’s ownership and is effectively a ‘conditional’ donation. Hence the participant can expect to receive the surplus back, which therefore becomes a conditional gift. However, there is uncertainty about the level and timing of the surplus it will receive. Secondly, there is a relationship between the participant and operator and another amongst participants (exchange of gift for a gift). This creates doubts on the Wakala contract as a contract of compensation. The relationship of the Takaful operator with the participants is ambiguous because none of the participants are liable for the repayment of the outstanding loan. To overcome these concerns, Pakistani scholars developed the idea of a hybrid Wakala-Waqf model to remedy some of these inherent disadvantages. This model requires the setting up of a Waqf (endowment-trust or independent pool) that becomes the nucleus for the relationship between the participant (donor) and the operator (i. e. , both have obligations towards this trust). A Waqf is a well recognised Shariah entity which has the ability of accepting ownership or appointing ownership of asset. The objective of the Waqf is to provide relief to participants against defined losses as per the rules of the Waqf fund. By setting up a Waqf, the following advantages are derived: Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 13 Milliman Research Report ? The relationship of participant and operator is with the Waqf fund (i. e. , ambiguity removed) ? Donation of participant to the Waqf is unconditional (Gharar removed) ? Operator can be a Mudharib (or manager) of the investments of Waqf and can share in the investment profits ? Contingency reserves within the fund may be set up ? Cross-subsidy of various generations of policyholders is permissible ? Surplus distribution can be predefined on a variety of criteria with the primary condition that the operator does not get any share as a Wakeel (or representative) to the Waqf fund Currently this model is widely used in Pakistan and South Africa, and has also been adopted by the Swiss Re Retakaful branch in Malaysia. Which Model to Choose An operator can choose any of the above-stated models but the choice depends on many factors, such as the target population, regional acceptance, Shariah board views, regulatory framework, product design, marketing, and pricing. As outlined above, the most common models are the Wakala and Mudarabah model or a hybrid of both: †¢ Mudarabah model is less acceptable globally but perhaps more attractive as profit is shared with the policyholders. However, there is a strong opinion of scholars from especially the Middle East that underwriting profit cannot be shared with the operator as it stems from donations. †¢ The Wakala model is by far the most recognised and has the positive effect of providing a fixed and steady income stream. However, in its purest form it has limited upside potential as the only source of income is the Wakala fee. This could harm competitiveness as a high up-front Wakala fee might look unattractive to participants and have adverse effects to new entrants because of the high initial costs. †¢ There has been an increasing trend towards the hybrid model which is based on the application of the Wakala model for the underwriting portion and the application of the Mudarabah model for the investment part. Considering that investment income usually makes up the bulk of the profits, this model is viewed by many Takaful operators to be commercially viable. This is widely practiced in the Middle East and Malaysia and accepted by virtually all scholars across the world. †¢ The AAOIFI has also endorsed hybrid versions of Wakala models. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide an interest-free loan in case of a deficit in the underwriting pool. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide an interest-free loan in case of a deficit in the underwriting pool. This expectation requires careful risk management techniques as there is uncertainty in terms of the amount and timing of the loan to be repaid from future surplus arising. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 14 Milliman Research Report issues and Challenges FaCing the takaFul industry The issues and challenges facing the Takaful industry are considered separately under the following sections: †¢ I. Key Issues and Challenges †¢ II. Technical Issues and Challenges †¢ III. Other Issues and Challenges I. key Issues and Challenges Some of the key issues and challenges facing the Takaful industry are: a. b. c. d. e. f. g. h. Lack of consumer awareness Scarcity of human resources with both insurance and Shariah expertise The shortage of Shariah scholars with appropriate experience Lack of standardisation in the industry that is due to Shariah interpretations Diverging regulatory approaches and the lack of centralised regulations Solvency and capital requirements Corporate governance Shortage of suitable assets These are discussed in further detail below. . Lack of consumer awareness Despite the introduction of Takaful, the increase in the level of penetration anticipated has yet to be realised. Many consumers are still unaware of Takaful as an alternative, and some view Takaful as commercialisation of conventional insurance into the Islamic world and reject the notion that it is a Shariah-compliant instrument. In addition, many individuals tend to downplay the importance of security and retirement planning and many are also heavily dependent on the social security systems—this is particularly evident in the Middle East. Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). There is a need to fundamentally address educational issues surrounding Takaful and individual risk management amongst the Muslim societies, to develop consumer awareness. Most of the current education on Takaful is among interested or related practitioners and investors, and very few awareness campaigns are aimed at or designed for the target population. Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). b. Scarcity of human resources with both insurance and Shariah expertise Future growth may also be hampered by the currently narrow pool of professionals with sufficient Takaful knowledge in areas such as law, sales, and actuarial services. Most operators would typically employ human resources, such as legal advisors and actuaries, with conventional insurance experience. These resources would typically tend to learn the Shariah aspects of Takaful and adapt their previous experience to incorporate Shariah compliance rules in their new role. Hence the mindset of most operators tends to be driven by conventional thoughts and solutions and, as a result, there has been limited original thinking in the industry. Recently, there have been various Takaful courses offered, including one offered by the Chartered Insurance Institute (CII), which will assist in the development and creation of human resources with both insurance and Shariah expertise. c. The shortage of Shariah scholars with appropriate experience Every Takaful operator requires a Shariah Supervisory Board, which is typically comprised of three or more Shariah scholars. For a Takaful operator with regional ambitions, the need to build credibility in the target market means there are preferences for the board members to originate from the target markets or at least have experience in the target market. Scholars would ideally have experience and knowledge not only in Islamic jurisdictions but also in Takaful. This is essential as board members are responsible for certifying the Shariah compliancy of the business operations. However, the number of Shariah scholars with experience in both Islamic jurisdiction and insurance is limited; inevitably, these scholars are currently sitting on multiple boards, which may create conflicts of interest and Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 15 Milliman Research Report compromise the quality of advice. The shortage in scholars remains a short-term barrier on new entrants and drives up the cost of setting up a Shariah board. As the Takaful industry has only recently been stablished, there is a wide range of issues currently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant. d. Lack of standardisation in the industry that is due to Shariah interpretations As the Takaful industry has only recently been established, there is a wide range of issues c urrently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant. For example, the inconsistency of Shariah interpretations can be seen in the following issues: †¢ Issues that are due to regional differences: There are significant regional differences in consumer attitudes and the extent of tolerance and innovation in the Takaful industry. For example, Malaysia is perceived to be more liberal and willing to embrace modern conventional concepts within the Takaful framework. In contrast, the approach in the Middle East countries is more conservative, with less willingness to embrace modern conventions. This creates challenges in transferring solutions across regions. †¢ Issues in the choice of Takaful models: There is a variety of models that may be adopted by the Takaful operator in the industry, as discussed in Section 3. There is a wide variation in practices and model preferences in various countries, which is due to the varying interpretation by scholars. For example, in Saudi Arabia, the regulators—Saudi Arabian Monetary Agency (SAMA)—approve a cooperative model in which only 10% of the surplus is mandatory for distribution to policyholders. Some scholars would argue that this model does not meet the requirements of Shariah compliance. For instance, there are no specific Shariah compliance requirements for assets. yet Takaful operations are still possible, and some have been approved, within the broader cooperative model framework. Similarly in Iran (where the entire legal system is Islamic-based), Takaful remains an unknown concept as the Shia Islamic school of thought (as practiced in Iran) does not view conventional insurance to be non-Shariah-compliant. However, despite these regional variations, there is a global trend elsewhere towards a Wakalabased model without any sharing of the underwriting profits. This approach has also been formally approved by the AAOIFI, which is a step towards standardisation. However, a global standard for Takaful models remains to be seen, which is due to the varying opinions and interpretations of Shariah scholars around the world. †¢ Issues about the source of capital: There is a wide variety of issues that are subject to Shariah interpretations. One of the debates amongst scholars is whether it is necessary for the original capital in a start-up Takaful provider to be Shariah-compliant. In practice some scholars typically do not question the initial source of capital as this would impede the operation of global players. Instead, the scholars would usually only insist on the usage of capital to be fully Shariah-compliant. †¢ Issues surrounding the type of risk deemed acceptable in Takaful: Another topic of debate amongst scholars s the type of risks that are deemed to be acceptable within Takaful, and this issue mainly relates to General Takaful. As the concept of Takaful is to mutually guarantee all participants, there is an argument that for large risks where the number of participants is limited, those risks may not fall within the concept of Takaful. For example, Takaful coverage for government-owned projects where all the participants within the pool are government agencies may not essentially achieve the concept of mutual guarantee (as arguably there is only one participant in the pool, the government). There is a debate on whether there should be a distinction between Halal (lawful) and Haram (unlawful) risk, and if prior screening of risks is necessary for acceptance within the Takaful pool. Related to the lack of standardisation in types of acceptable risks is the lack of uniformity in the definitions of insured events and exclusions. For instance, in Family Takaful treatment of suicide, Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 6 Milliman Research Report AIDS, and contestability is non-uniform. This complicates the applicability of pricing assumptions based on experience statistics drawn from conventional business and complicates pooling of experience among Takaful operations with differing underwriting and contract definitions. †¢ Issues surrounding Wakala fees and the cost of capital: Another issue that is constantly debated is the extent of expenses that can be charged by th e operator as Wakala fees and whether the cost of capital can be included. Some Shariah scholars have argued that the operator cannot charge participants for the cost of capital, which raises the question of the commercial viability of Takaful operators. Some Takaful operators would also choose to allow for a profit margin to be embedded within the Wakala fees, and there is further debate on the extent that this is tolerable within the bounds of Shariah. The opposing views of Shariah interpretation in different regions make Takaful standardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions. This lack of standardisation in Takaful may undermine the credibility of the industry, and may have a subsequent negative impact towards consumer protection, transparency, disclosure, and the overall ethics of insurance. e. Diverging regulatory approaches and the lack of centralised regulations In the absence of standardisation of a global Takaful regulatory regime, the industry is relying heavily on the opinion of the Shariah boards of the Takaful companies, subject to any local regulatory constraints. Local regulators have adopted a variety of approaches when it comes to dealing with Takaful. There are three key categories of regimes: The opposing views of Shariah interpretation in different regions make Takaful standardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions. 1. A level playing field approach, such as the Financial Services Association (FSA) in the UK. This is the most common approach by regulators in predominantly non-Muslim countries. The FSA has adopted a ‘no obstacles, but no special favours’ approach in handling Takaful business and will regulate Takaful operators within its current regulatory framework. . A pragmatic middle ground, such as the Bank Negara Malaysia (BNM), in Malaysia, where the regulators have adopted a comprehensive Islamic financial system running parallel with the conventional system, with an evolving attitude to regulations over time. 3. A more specific ‘tailor-made’ approach, such as the Central Bank of Bahrain (CBB). The CBB has taken the lead in considering the unique characteristics of Takaful companies and aligns the regulations of Islamic insurance as far as reasonably possible. It is useful to note that based on a ‘level playing field’ regulatory approach, the FSA has outlined in its November 2007 publication entitled ‘Islamic Finance in the UK : Regulation and Challenges,’ three potential challenges in regulating the Takaful industry: †¢ Whilst Takaful products may appear similar to conventional products, the structure of the Takaful offerings and operations are fundamentally different compared to conventional products †¢ The role and responsibility of the Shariah Supervisory Board should be purely advisory (i. e. , not executive roles) The marketing and promotion of Takaful products must be fair, transparent, and not misleading, in the spirit of the ‘treating customers fairly’ principle Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. There have been talks within the industry particularly expressed by practitioners at vari ous conferences and seminars for the need to standardise the Islamic finance industry, with aims to develop standards and guidelines for Islamic financial institutions and regulators. These are mainly driven by four organisations (details of each of the following are provided in Appendix III): Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. 17 Milliman Research Report †¢ Rulings of the Islamic Fiqh Academy of the Organisation of Islamic Conference (OIC) †¢ Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) †¢ Islamic Financial Service How to cite Models of Takaful in Bangladesh Perspective, Essay examples

Effect of watching cartoon to the children free essay sample

â€Å"A childs life is like a piece of paper on which every person leaves a mark† Chinese Proverb. Children are fun on watching cartoons so as a result they get addicted that give different health problems. This has become a problem because too many children are watching too much television that tend to be violent and addictive. There are a lot of time spending in watching television that set for long hours which outdoor activities are forgotten and mostly without the supervision of elders who are completely unaware that this might have certain effects on their psychological development later on displayed in their behavior patterns. Children are more likely to have mental and emotional problems, along with brain and eye injuries and unexpectedly risk of a physical problem increases. It can even affect the social interaction of the child. Watching cartoons is now a hobby of children rather than other activities such as reading books and playing outdoor activities. Young children are may not be able to read lengthy stories or books. But they will be happy to watch the TV, especially cartoon movies. Children are enjoying watching cartoons because of the funny and weird figures of animals and humans that can be seen. Not only bright and varied colors but also the cartoon characters played an important role in getting the attention of the children. There should be a limitation on everything especially the hours spending in watching cartoons that should be properly regulated by parents. Children like to watch cartoon movies on the TV even before they start to speak. Do you know why? I think it is because of the funny and weird figures of animals and humans that appear in cartoons. Not only that, but the bright and varied colors the cartoon characters are painted with also play an important role in attracting children. But is it good for children to watch cartoons on the TV? But what are the effects of watching cartoons to the children. Statement of the problems The study intends to investigate the negative effects of watching cartoons to the children. Specifically, 1 How does cartoon affect the social interaction of a child? 1. ) What are the psychological effects of watching cartoons to the children? Significance of the study The main purpose of this research, in the light of these thoughts, is to demonstrate how children are influenced by violence-oriented cartoons on TV and through what kind of behaviors these influences appear. The purpose is also to compare them to see how they changed. This study will promote information about the negative effects of watching cartoons to the children. This study will also be beneficial to the parents to know how to monitor their children when watching cartoons in the television. By understanding the needs of the children and effects of watching cartoons, these parents and children will be informed about safety precautions. Scope and limitation of the study This study was conducted to determine the psychological effects of watching television to the children . The study will include 5 male and 5 female children ages 6 to 7 years old on Peace Village, Phase III Brgy. San Luis, Antipolo City. The researcher would like to look into the psychological and social effects of watching cartoons. The study does not cover the negative effects of watching cartoons to the physical well-being of the children. The researcher also does not include the benefits of watching cartoons to the children. Operational Terms Television – According to the study of Trinidad A. Cayading, It became a substitute to babysitters. Numbs – It is the effect of watching Television to the mind of the children that prevents your child from exercising initiative, being intellectually challenged, thinking analytically, and using his imagination, by Trinidad A. Cayading. Clay- According to Trinidad A. Cayading, The mind of a child is like a clay. It forms early impressions on what it sees, and these early impressions determine how he sees the world and affect his grown-up behavior Media violence- According to the research of Trinidad A. Cayadin, children who are more exposed to media violence behave more aggressively as kids and when they are older. Interactive media- According to the experimental study of Daluz, Christine Joyce, It refers to products and services on digital computer-based systems which respond to the user’s actions by presenting content such as text, graphics, animation, video, audio, games, etc. Aggressive cognitions (or aggressive thoughts) include a wide range of phenomena, such as cognitive accessibility of simple aggressive, by Mapoy, Mark Joel D. Aggressive behaviors – According to Mapoy, Mark Joel D. are actions with which one intends and expects to harm another individual. Violence – According to Stevie Hossler, is when a child’s act become aggressive or use harmful actions towards others. Brains’ development According to Stevie Hossler study, Our Brain’s Development is a dynamic mix of nature and nurture. Attention deficit disorder – According to Robert Leu study, it is the effect to the children who watched three to four hours of television daily. Impressionable mindsets – Ben Wilcox research state that, It is the act of children who view shows in which violence is very realistic, frequently repeated or unpunished, are more likely to imitate what they see. CHAPTER II: Review of Related Literature Local studies Prevent Kids from being Smart. SOMETIMES, watching TV in the house is very hard to avoid because almost everyone, siblings, as well as parents, are usually tuned in to the TV. In some homes, the television is perpetually on even without anyone watching. Nowadays, it is very common for parents and caregivers to use TV as substitute babysitters. Also, many parents buy DVDs, CDS or whatever they think can make their kids smart. But how does watching TV really affect children? This article wants to share with you some bad news which majority of the experts thinks that a TV/video-driven culture has bad effects on kids and may prevent kids from being smart. They cite the following: TV viewing takes away the time your child needs to develop important skills like language, creativity, motor, and social skills. These skills are developed in the kids first two years (a critical time for brain development) through play, exploration, and conversation. Your kids language skills, for example, do not improve by passively listening to the TV. It is developed by interacting with people, when talking and listening is used in the context of real life. TV viewing numbs your kids mind as it prevents your child from exercising initiative, being intellectually challenged, thinking analytically, and using his imagination. TV viewing takes away time from reading and improving reading skills through practice (Comstock, 1991). Kids watching cartoons and entertainment television during pre-school years have poorer pre-reading skills at age 5 (Macbeth, 1996). Also, kids who watch entertainment TV are also less likely to read books and other print media (Wright Huston, 1995). According to Speech and language expert Dr. Sally Ward, 20 years of research show that kids who are bombarded by background TV noise in their homes have trouble paying attention to voices when there is also background noise. Kids who watch a lot of TV have trouble paying attention to teachers because they are accustomed to the fast-paced visual stimulation on TV. Kids who watch TV more than they talk to their family have a difficult time adjusting from being visual learners to aural learners (learning by listening). They also have shorter attention spans. School kids who watch too much TV also tend to work less on their homework. When doing homework with TV on the background, kids tend to retain less skill and information. When they lose sleep because of TV, they become less alert during the day, and these results in poor school performance. TV exposes your kid to negative influences, and promotes negative behavior. TV shows and commercials usually show violence, alcohol, drug use and sex in a positive light. The mind of your kid is like clay. It forms early impressions on what it sees, and these early impressions determine how he sees the world and affect his grown-up behavior. For instance, twenty years of research has shown that children who are more exposed to media violence behave more aggressively as kids and when they are older. By: Trinidad A. Cayading Risk on Childrens Memory. An experimental study examined the influence of interactive media on primary graders memory. Interactive media normally refers to products and services on digital computer-based systems which respond to the user’s actions by presenting content such as text, graphics, animation, video, audio, games, etc. So we sample 40 first graders from an Elementary School in the Philippines were randomly assigned to experience a computer-based story in 1 of 4 presentation modes (audio narration of the story, similar to radio; audiovisual presentation, similar to television; interactive viewing, and interactive observation). They were asked to listen, watch, interactively participate or observe during a storytelling activity and were asked later to answer a (a) narration-based questions; (b) visually-dependent questions; and (c) inference questions. The results showed that among students who had the storytelling activity, the ones under the condition of audio only remembered the story poorly, including the story facts and ability to make inferences. However, the effect of interactive media for this present study was identified to be non-contributing factor of facilitation of memory retrieval. Participants in the Audio-visual condition performed better than those in the Audio condition. Likewise, participants in the Audio-visual condition performed better than those in the interactive. Lastly, Audio-visual participants performed better than those on the interactive observer. By: Daluz, Christine Joyce Media Violence Harmful effects on Childrens behavioral Aggression Many summaries of the effects of viewing media violence have been compiled by independent governmental and nongovernmental health organizations. All have found significant harmful effects on children and youth (e. g. , the 1954 Kefauver hearings; the 1969 National Commission on the Causes and Prevention of Violence; the 1972 Surgeon General’s report Television and GrowingUp [U. S. Surgeon General’s Scientific Advisory Committee, 1972]; the 1982 National Institute of Mental Health [NIMH] report Television and Behavior; Eron, Gentry, Schlegel’s 1994 report for the American Psychological Association; the 1994 Policy Statement by the Australian College of Paediatrics, the 2000 Joint Statement on the Impact of Entertainment Violence on Children by six health associations; the 2004 Ontario Office for Victims of Crime report Action Agenda: A Strategic Blueprint for Reducing Exposure to Media Violence in Canada; and the 2005 American Psychological Association Resolution on Violence in Video Games and Interactive Media [Carll et al. , 2005]). Depending upon how specific or broad one categorizes media violence effects, one can identify 14 (or more) scientifically documented effects of exposure to media violence, found in at least five conceptually distinct domains: physiological, emotional, cognitive, attitudinal, and behavioral. These can be further brok en down into short-term and long-term effects (for a detailed discussion, see Potter, 1999; 2003). Other summaries focus on four main types of effects: increases in aggressive thoughts, aggressive behavior, aggressive feelings, and physiological arousal. In addition, media violence exposure has been linked to decreases in helpful and pro-social behaviors. Furthermore, violent media exposure has been shown to cause an increase in aggression-supporting beliefs and a reduction of normal negative emotional responses to violence (Anderson et al. , 2003; Carnagey, Anderson, Bushman, 2007), as well as increases in fear (Cantor,2003). Some media violence effects can be seen in immediate settings, whereas others accumulate over time. The multiplicity of media violence effects requires multiple research methods in a wide variety of settings. How is the research actually conducted? Most media violence studies focus on the impact of exposure to media violence on aggressive affect, aggressive cognitions, and/or aggressive behaviors. Aggressive affect comprises emotional reactions, such as anger, which are relatedto aggressive behavior. Aggressive cognitions (or aggressive thoughts) include a wide range of phenomena, such as cognitive accessibility of simple aggressive 24 Gentile, Saleem, and Anderson concepts in memory; beliefs and attitudes that promote aggression; and plans and expectations (e. g. , scripts) concerning conflict situations. As noted earlier, aggressive behaviors are actions with which one intends and expects to harm another individual. Because of space limitations, we focus on aggressive behavior (i. e. ,aggression). By: Mapoy, Mark Joel D. Foreign Studies Obstruction to the Development of a child’s Brain Social Systems. From the time children start school to the time that they graduate they are averaged to spend around 13,000 hours in school. This may seem like an awful lot of hours to attend school unless it is compared to the hours a child watches television, which is nearly 18,000 hours (from the time school is started to the time of graduation). This comparison is an outrage because of the amount of television that is watched by a child will have an effect on their brain, emotions and their sense to feel pain. In a 2000 report on adolescent violence, the U. S. Surgeon General David Satcher stated that more aggressive behavior in a young child’s life is caused by frequently watched entertainment that incorporates violence in it. This has become a public health issue and because of the research findings; the American Psychological Association passed a resolution in February of 1985,informing broadcasters and the public about the dangers violence on the television has on children. Three major effects have been proven by psychological research caused by children seeing violence on television are that the child may become less sensitive to the pain and suffering of others; children who watch violence do not fear violence nor are they bothered by violence in general and the children are more likely to become aggressive or use harmful actions towards others. When we are born we have the capacity for motivation, experience, and training, and because of this our minds are very impressionable. Therefore, our brains’ development is a dynamic mix of nature and nurture, so it is important to choose a healthy environment for all children. This means cartoons with violence will be unhealthy for a child because in general, being interactive with any environment enhances the development of a successful brain. As a result, a tremendous amount of childhood involvement with electronic media can limit social interaction and may obstruct the development of a brain’s social systems. By: Stevie Hossler Unhealthy Effect on the Brain and Eyes In December 1997, an episode of the Japanese cartoon â€Å"Pocket Monster† (later renamed â€Å"Pokemon† for international distribution) drew worldwide attention after multiple cases of children suffering seizures after watching the episode were reported (Warner, 2004). Parents began to wonder how the cartoons their children watched affected their mental development. While no former study specifically relating to cartoons has taken place, multiple studies over the years have charted the impact of television on the minds and eyes of developing children. Most eye specialists agree that watching television is not a danger to the eyes, as long as children watch in the right conditions. The room should not be pitch black, and children should not sit closer than five feet away from the screen. Sitting in a dark room or closer than five feet will not damage the eyes, but will result in eye fatigue. (Adams, 1992). As for the brain, there is scientific evidence that too much television can be detrimental to children. The April 2004 issue of the medical journal Pediatrics published a study done by Children’s Hospital and Regional Medical Center of Seattle, Washington. The study revealed that children who watched three to four hours of television daily had a 30 to 40 percent greater risk of developing attention deficit disorder than children who did not watch television. While no specific program is directly responsible, Dr. Dimitri Christakis, leader of the study, speculates that the speed of the images displayed could affect children’s brains (Today’s Chiropractic, 2004). But does watching television give young children seizures? Yes, and no. A study released by The New England Journal of Medicine in July 2004 found that most children who suffered seizures from that December 1997 episode of â€Å"Pocket Monsters† had epilepsy, or some other underlying condition that would have caused development of seizures, regardless of whether or not they saw that program (Warner, 2004). By: Robert Leu Bad influence on Children’s Behavior Television has long been criticized for influencing our children. People complain that certain TV shows are having negative effects on their children. The American Academy of Pediatrics (AAP) and the American Academy of Child and Adolescent Psychiatry (AACAP) both feel that TV does influence the behavior of children as young as one year old. From their studies, the AACAP states, â€Å"Children who view shows in which violence is very realistic, frequently repeated or unpunished, are more likely to imitate what they see. † This speaks to the impressionable mindsets of young children, who are still learning control of their minds and bodies, and are likely to mimic what they see, as it seems quite normal to them. The AACAP also stresses the need for parents to keep a close eye on what their children watch. They must be there, the AACAP says, to explain that the cartoon character or actor that was shot has not been harmed, but would actually be seriously injured, or die in real life. They should also work to tell their children that violent behavior is not the best course of action to resolve a conflict. The AAP states â€Å"Neuroscientists have shown that environmental experiences significantly shape the developing brain. † This again adds to the idea that young children are very impressionable. They paid more attention to the effect of TV on children in their daily lives. â€Å"Higher levels† the AAP states, â€Å"of television viewing correlate with lowered academic performance, especially reading scores. This may be because television substitutes for reading practice, partially because the compellingly visual nature of the stimulus blocks development of left-hemisphere language circuitry. A young brain manipulated by jazzy visual effects cannot divide attention to listen carefully to language. † TV is a very quick medium. Messages are shot at the viewer as if by an automatic rifle. Their minds must be equally as quick to interpret the messages, and with such a â€Å"two-minute mind†, many messages are misinterpreted, or confused. When the child becomes used to receiving information at so fast a rate, they lose interest in information that is more detailed and methodical, such as the information received in day-to-day schooling. Television certainly does affect our children, who find themselves mesmerized by the bright flashing objects, and rapid assault of messages. It is good to know that the leaders of our medical professions feel that parents and supervisors of children are able to help slow the information down, and explain what the messages really mean, so as to have a more positive effect on our children. By: Ben Wilcox Conceptual Framework CHAPTER III: Methodology Sample Questions: 1. Do you enjoy watching cartoons? 2. Are you a fan of cartoon characters? 3. Do you learn something when you watch cartoons? 4. Does your parents know what you watch? 5Do you understand what you’re watching? 6. Do you prefer watching cartoons rather than going outside? Interview: 1. How long do you spend time in watching cartoons than in school works? 2. Do you portray the cartoon character you love the most? 3. What activity or games you usually play outside with your friends? Research Design This study entitled The Effects of Watching Cartoons to the Children is a qualitative and quantitative research that attempts to accumulate information and data in Peace Village, Phase III Brgy. San Luis, Antipolo City. This study wishes to depict the current state of discipline of 5 male and 5 female children ages 6 to 7after watching Cartoons. The researcher decided to use the qualitative and quantitative approach in order to verify his observations. Quantitative Analysis We conduct a research interview regarding in our topic. This is the frequency of the children who answers â€Å"yes and no† in the given questions. â€Å"Do you enjoy watching cartoons? † (10 out of 10 answers Yes to that question). â€Å"Are you a fan of cartoon characters? †(8 out of 10 answers Yes to that question). â€Å"Do you learn something when you watch cartoons? † (4 out 10 answers Yes to that question). â€Å"Do your parents know what you watch? † (4 out of 10 answers Yes to this question). â€Å"Do you understand what you’re watching? † (5 out 10 answers Yes to this question). â€Å"Do you prefer watching cartoons rather than going outside? † (7 out of 10 answers Yes to this question) Qualitative Analysis According to their answers, we can conclude that they only watch cartoon because of its humorous contents, colors, graphics and animation. In their age, they are still in the process of understanding things that they see. But even though they don’t quite understand what they are watching, they still prefer watching Cartoons rather than going outside. So as a result, it causes negative effects to their health. Procedures The day we interview the children in Peace Village,Phase III Brgy. San Luis, Antipolo City, we asked the children one by one to know their reactions. They are asked some several questions regarding on their feedback in watching cartoons. Ten children participated, 5 boys and 5 girls was asked and interviewed. Childrens ages ranged from 6 to 7 years old. We show them a small portion of the show called â€Å"Tom and Jerry†. After that we asked them some questions answerable by YES or NO. We also interview them. We asked how long they spend time in watching cartoons than their in school works, if they portray their cartoon character love most, and what activity they play usually outside with their friends. As a result of our questions and interviews, we can conclude that children enjoy watching cartoons even they don’t understand what they watch. Statistical treatment powerpoint: title. Statement of the problems Signifance Scope and limitation Operational terms – 4. coming from literature. Foreign / local Summarizing atleast 4 ( 2 – 3 sentence. ) conceptual framework = arrow relationships. Chapter 3 = methodology. Research design = descriptive method I search meaning. ( analyzing or interpreting) = procedure. survey/ questions interview Question question will to research question.

How the past influences the present in the novel The Reader and the play A Streetcar Named Desire Essay Example

How the past influences the present in the novel The Reader and the play A Streetcar Named Desire? Essay The two works of literature discussed in this essay have several similarities in their underlying themes and narratives. The Street Car Named Desire, written by Tennessee Williams in 1947, was not only well received by critics, but also adapted into several stage productions. The post Second World War period in which the play is set was a period of rapid social transformation. The United States had emerged as one of two superpowers and there is unprecedented growth in the manufacturing industry. This alters the conventional equations of power between men and women, cities and country sides, northern states and southern states, etc. It is in this shifting and evolving milieu that the lives of Stanley Kowalski and Blanche DuBois cross paths, which ultimately leads to much interpersonal turmoil. Similarly, the novel ‘The Reader’ written by Bernhard Schlink is a work of high literary standard. The movie version too got several nominations in the Academy Awards. The R eader too is set in period of the Second World War, although its narrative finally takes us to the end of the century. While the particular contextual settings in which lead protagonists Hanna and Michael Berg develop their relationship is different from that of Stanley and Blanche, one could see strong parallels between the two stories. This essay will foray further into such relationships and ascertain how the present lives of both Blanche and Michael have been influenced by past due to them mainly keeping and finding out secrets. In The Streetcar Named Desire, the lead character of Blanche DuBois’s interactions with Stanley, Stella and Mitch are all defined and shaped by her troublesome past. Early in her youth, she falls in love with and marries a gentleman in Laurel, Mississippi. But the romance and happiness was short-lived as she soon discovers that her husband is homosexual, who subsequently kills himself. This tragic end to a whirlwind marriage had left a deep scar in Blanche’s psyche, making her prone to flights of fantasy and illusions of grandeur. Throughout the play, Blanche is show as being obsessively concerned about her looks, clothes and jewellery. This behaviour is partly due to feelings of insecurity as a result of aging. But more importantly the luxurious lifestyle with which she was accustomed to in Laurel, as well as the fairytale marriage to Allan, ended in disaster. While the reason for Allan’s suicide is revealed to Mitch, the details pertaining to the loss of their ancestral mansion is told to Stanley, when the latter coerces her to divulge the same. In many ways, the behaviour of Blanche since her arrival at Stella’s home is an attempt to recompense for these losses. This manifests itself as a form of neurosis as she becomes obsessed about her looks and appeals to the opposite sex. Beneath the veneer of refinement and culture, she desperately craves for intimacy from every possible source. Even a young salesman who comes to the door is taken advantage of by Blanche. Hence, Blanche’s abnormal behaviour is very much rooted in her past. We will write a custom essay sample on How the past influences the present in the novel The Reader and the play A Streetcar Named Desire? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on How the past influences the present in the novel The Reader and the play A Streetcar Named Desire? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on How the past influences the present in the novel The Reader and the play A Streetcar Named Desire? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In the case of The Reader too, the later narrative of Michael is full of remorse and guilt for his ignorance in the past. When evaluating the novel, one has to study it in the context of the burgeoning body of holocaust literature that has been published in the last sixty years. Rather than dealing in dichotomies of good and evil in the characters of Hanna and Michael, Bernhard Schlink does present a nuanced view of the questions confronting an entire generation of Germans post holocaust. Michael’s individual turmoil is only representative of this greater malaise. While the novel provides an entry point for further exploration of the moral aspects of the holocaust, it is simultaneously a statement on the limitations of the written word to convey and elicit comprehensive responses. To the extent that this is an accepted fact, not just applicable to the lead characters of The Reader, but for the Novel in general, the author does a satisfactory job of perceiving and probing answers to these tough questions. For example, the novelist does a satisfactory job in spelling out the internal monologues of Michael, as the latter comes to terms with his past. For instance, in one of the passages of the book, Michael’s conscious thoughts were given expression by Schlink through the following words: â€Å"She was too far away for me to read her expression. I didn’t jump to my feet and run to her. Questions raced through my head: why was she at the pool, did she want to be seen with me, did I want to be seen with her, why had we never met each other by accident, what should I do? (The Reader, p. 79) Such internal monologues do indeed show us the mechanisms with which Michael confronts his past and gives it perspective. In this way, in both The Reader and The Streetcar Named Desire, we see how the events and facts of the past play a crucial role in shaping the narratives of the present. Coming back to The Streetcar Named Desire, Blanche DuBois was so entrenched in the nostalgia and romance of her past that she refuses to recognize realities anymore. Her ideal notions of men, women and culture are markedly divorced from the rapid changes that have taken place in the country after the war. Seen from this viewpoint, Stanley comes across as a brutish and uncivilized bully who constantly harasses and exploits his wife Stella. This impels Blanche to advice Stella to leave Stanley and seek a new life for herself. She reminds Stella of finer enjoyments of life such as art, music and poetry and implores her to find a civilized man who would care about these things. But in reality though, it is Blanche who is holding on to a vision of the past that no longer exists. Her idealized view of romance, marriage and culture is so divergent from the new industrial realities of post war America, which is typified by the rugged masculinity displayed by Stanley. While Stanley mig ht lack social grace and politeness, he is honest to himself and others around him. But Blanche’s criticism of Stanley is a subconscious defence mechanism against her own illusions. By way of being critical of him she is retracting to an idyllic notion of the past. Strong parallels of this can also be found in the later realizations of Michael Berg. At the time of his adolescent affair with Hanna, he was unaware of her involvement in a concentration camp. Michael was also unaware that Hanna is illiterate, which is why she likes other people to read her stories. During the law trials that followed the holocaust, it was revealed that Hanna made her prisoners read to her, which is when Michael finally understands the truth. It could be argued that since Michael was young and vulnerable when he first met Hanna, he cannot be held responsible for the crimes she abetted. Moreover, he was not aware of all the facts at the time. But to understand Michael’s enduring fascination and attachment to Hanna, one has to look at the initial circumstances in which they met. In the impressionable psyche of young Michael, the beauty and allure of Hanna would have made a lasting impression. To take the above mentioned assessment a little deeper, let u s take a specific example. Early in the narrative of the novel we come across this memorable piece of writing (the narrator is the young Michael Berg): â€Å"As she was reaching for the other stocking, she paused, turning towards the door, and looked straight at me. I can’t describe what kind of look it was–surprised, sceptical, knowing or reproachful. I turned red. For a fraction of a second I stood there, my face burning. Then I couldn’t take it any more† (The Reader, p. 12). It is moments such as these that reveal in depth the characters of Hanna and Michael. It also explains why Hanna continued to hold a power over Michael right up till her last days. But for some untold reason, Michael carries a burden of guilt about his relationship with Hanna. He could not shrug himself of this guilt even after the passage of many years. It is this strange and unarticulated attachment toward Hanna that prompts him to keep in touch with her during her time in prison. He sends her several books to read (albeit anonymously), knowing that she would get some solace from it. Later, toward the last days of her life, she hands over to Michael what little money she’d saved up along with another cherished possession. There is, of course, one crucial difference between the development of Blanche and Michael. In the case of Blanche, with every passing day her insecurities seem to grow and her illusions of grandeur seem more absurd. In other words, her mental poise and sanity steadily withers away as she eventually becomes totally deluded and acts insane. Blanche resorts to greater amounts of liqueur and fantasy to console her of numerous fears. But in the case of Michael, as the narrative progresses, he seems to grow wiser with it. As the novel concludes with the death of Hanna and as Michael hands down her savings to an education fund, he seemed to have attained a closure on Hanna. Although the author does not explicitly state it, this final act from Michael gives him a sense of relief and peace. The very opposite is the case with Blanche, who becomes totally insane toward the end of the play, and is handed over to medical attention. Hence, the impact of the past on the present plays out i n distinctly different ways in the cases of Michael and Blanche. While Michael seems to benefit from the unravelling of past secrets, Blanche gets overwhelmed by them and ultimately succumbs to them. Works Cited: Bernhard Schlink, The Reader, translated by Carol Brown Janeway (London: Phoenix, paperback edition, 1998). Williams, Tennessee, A Streetcar Named Desire (play), first published in 1947.

Proctor Gamble Project Essays

Proctor Gamble Project Essays Proctor Gamble Project Essay Proctor Gamble Project Essay The par or stated value of PG’s preferred stock is $1 B. )     The par or stated value of PG’s common stock is $1 C. )     . 975 D. )   In June of 2007 and 2006, 3,131,946 and 3,178,841 of common stock remain outstanding respectively. (p. 52) E. )  Ã‚   â€Å"Our first discretionary use of cash is dividend payments. Dividends per common share increased 11% to $1. 28 per share in 2007. This increase represents the 51st consecutive fiscal year the Company has increased its common share dividend. Total dividend payments to both common and preferred shareholders were $4. 2 billion, $3. 7 billion and $2. 7 billion in 2007, 2006 and 2005, respectively. † (p. 48) F. )  Ã‚   The rate of return on common stock equity in 2007, equals net income ($10.. 3 billion (converted to 103,000 for the sake of input in a calculator) less preferred dividends (41,797) divided by average common stockholders equity ((66,760 + 62,908)/2) which is 94%. The rate of return on common stock equity in 2006, (8,700,000-161,000/62,908) 135% G. )   The payout ratio for 2007 and 2006 was (Cash dividend divided by net income-preferred dividends (2007: 420,000/$103,000-41,797) is 6. 86. The payout ratio for 2006 (270,000/8,700,000-161,000) is 3. 16 H. )   The market price range of PG’s common stock during the quarter ended June 30, 2007 was $60. 76 to $64. 75 (p. 73)

Use risk perception and risk communication perspective to evaluate the Essay

Use risk perception and risk communication perspective to evaluate the disaster management policy-making process - Essay Example Use risk perception and risk communication perspective to evaluate the disaster management policy-making process The earth has been found to be the only life-supporting planet for now. At least even if humans can live on other planets, it is the earth we all live on now.So if we are talking about keeping the earth intact and productive, then we should be thinking of ways of reducing; if not stopping disasters from occurring. The Assam Government Disaster Management Policy (2010) explains that â€Å"disaster is a sudden, calamitous event bringing great damage, loss, and destruction and devastation to life and property.† Sadly, the source continues to note that â€Å"the damage caused by disasters is immeasurable and varies with the geographical location, climate and the type of the earth surface/degree of vulnerability.† This explanation alone reechoes a very scaring situation whereby the fight against disaster must be embraced with all seriousness and urgency. Speaking of the need to fight disasters, the International Federation of Red Cross and Red Crescent Societies Disaster Man agement is quoted in World Confederation of Physical Therapy (2011) as pointing to disaster management as the most effective way of fighting disaster; explaining that â€Å"disaster management is the organization and management of resources and responsibilities for dealing with all humanitarian aspects of emergencies, in particular preparedness, response and recovery in order to lessen the impact of disasters.† ... At the evaluation stage of policy making, policy makers are offered the opportunity to critically scrutinize the feasibility, achievability, effectiveness and usefulness of any given policy. Having noted this, it is important to appreciate the fact that for disaster management evaluation to go on successfully without any setbacks, there are a number of factors that need to be put in place and a number of mechanisms that need to be used by facilitators. Two of these factors and mechanisms are risk perception and risk communication perspective. These two elements come in best when utilized will ensure that the eventual implementation of disaster management policies achieve their needed results. To this end, this essay seeks to explore the use of risk perception and risk communication perspective to evaluate a given disaster management policy-making process. Literature Review Overview of disaster management policy making process and its importance Policy making process takes place day i n and out in different quarters of organizational set ups. Even at the national level, there are several policy making processes that take place day in and out. Policy making processes are necessitated when the need to have policies in place arise. Sycamnias (2008) states that â€Å"according to a dictionary definition, policy is "any course of action followed primarily because it is expedient or advantages in a material sense."† Without any question, disaster management is such an important phenomenon that it needs a whole policy formulation to get it underway. As part of the importance of taking disaster management through the policy making process, taking disaster

Comparison of Chinese and Japanese TV Essay Example | Topics and Well Written Essays - 1500 words

Comparison of Chinese and Japanese TV - Essay Example Programming content in Japan covers a variety of areas, with satellite channels also available. New programs are primarily broadcast during the mornings, while the evening hours are generally given over to romantic or other dramas and comedies, which are a staple of Japanese television, additionally, science fiction programs are also offered and anime or Japanese animation programs are very popular television programs, not only among the Japanese but also in other countries of the world. Variety shows are also offered such as skits, quiz contests musical performances and stunt shows. Television programming in China is controlled by the State which greatly limits the scope and extent of programming in China. For instance, state controlled television channels have been continually showing programs that remind the Chinese of the horrors that the Japanese inflicted upon them during the Second World War. (Vance, 2008). During this time, many thousands of Chinese people were killed by Japa nese raids in Nanjing and other cities in China, with individuals in China being tortured and executed. The continual flashing of these horrific images on Chinese television has kept the memories of these Japanese atrocities alive in Chinese minds and has   produced the rhetoric of hate in China. Chinese television shows programs and movies that so some degree or the other, relive the Japanese invasion into China and some of them are so powerful and graphic in their realistic images of brutality.

The Construction as a Revolutionised Industry Research Paper

The Construction as a Revolutionised Industry - Research Paper Example It is important to note that nations depend on their construction industry for their infrastructural developments making them quite important in facilitating national development. In this regard organisations offering construction work tend to be well regarded while certification requirements and procedures prove to be rigorous. In many countries like the US and UK among others, there are definite rules and oversight bodies set to regulate the actions of construction firms. This paper aims to consider the construction industry and its various facets in developing the premise that there is no single ideal organisation. PESTEL analysis of the construction industry Political/legal factors Government involvement entails the various interventions in regards to set laws and standards in the construction industry. As mentioned earlier governments have established regulations and standards for construction organisations to follow. Most of them are in regards to the safety and health of worke rs since construction entails risks that result in many accidents and fatalities in some cases (BIS 2011). In case of failure to adhere to them stiff remedial actions like fines are imposed after inspections or when an accident occurs. Taxation is another aspect where governments exert pressure in the construction industry. This is an industry whose taxation is high mostly due to their heavy-duty kind of work (Liebing 2001). The contracts also attract hefty sums of money which the governments are quite willing to tax. Regional Norms In regards to the European organisations the EU laws also affect how these construction firms operate. Regional trading blocks have become quite influential with time as the world becomes a global market place. EU, for example, aims at establishing common standards not only for the construction industry but to all (Dalby 1998). In this line, firms are being forced to follow alien laws that are not necessarily desirable for business.