Assess the success and failures of Thatcherism Essays

Assess the success and failures of Thatcherism Essays Assess the success and failures of Thatcherism Essay Assess the success and failures of Thatcherism Essay Margaret Thatcher and her time in British politics have had a profound impact upon not just Britain but on world politics too. Thatcher’s high profile of governance began from May 1979 and she continued to be the Prime Minister of Britain for eleven and half years. During her time in office, Thatcher had been the talk of Britain and the world. The reason being her strong public personality moreover she was judged in terms of her political, social and economic ambitions. Thatcher’s governance led to the political phenomena of Thatcherism. The term Thatcherism obviously derives from Margaret Thatcher but can be defined generally as the system of powerful political beliefs which were based on ‘monetarism and a belief in reducing the power and actions of the state in economy and society’, but also the promotion of the private sector. Thatcherism wasn’t only based around Thatcher’s policies but equally as important on her leadership style, for example the reference made by the Russians to the ‘Iron Lady’. However the concept of Thatcherism was deeply rejected and regarded as a failure by socialists and social groups. This essay intends to assess the two sides of Thatcherism, the success as well the failures. It will also examine Thatcher’s personality and politics, i. e. policies, which contributed to the formation of Thatcherism. The legacy of post-war Conservatism and Thatcher began when the Labour party’s time in office ended inevitably. This was highlighted under James Callaghan’s government. The Labour government faced immense difficulties such as inflation rise, British power cuts and especially in 1979, where the ‘Winter of Discontent’ was a key event. The Winter of Discontent subsequently led to a rash of strikes in crucial public services which deemed that the country was ungovernable. This led to the destruction of Labour’s party image and subsequently forced Callaghan to call an early general election, which paved way to Thatcher’s victory. Labour’s defeat also meant that it would allow Thatcher to ‘reverse the relative decline from which Britain was acknowledged to be suffering’. Furthermore to break from the ‘Post-war consensus’, which characterized Britain’s governing tradition since 1945. The first Thatcher government was probably the most pragmatic; she was elected with a working majority of 43. The early years of Thatcher’s governance, particular attention was paid to the economy. And the intentions of the Conservative government were transparent before they came into power but were particularly successful and appealing amongst the affluent worker social group in 1979, which was used as evidence for the ‘electoral preference for lower taxation rather than higher public spending’. The Conservative party manifesto also highlighted Thatcher’s pledges other than lower taxation which were to restore the health of Britain’s economy by ‘controlling inflation’, to encourage private enterprise and promote individualism. Therefore the period from 1979 was clearly an important one for economy policy as the government were faced with an exceptionally high annual inflation rate of 20 per cent. Furthermore, the economic forecasts of November 1979 highlighted that ‘output in the economy was expected to fall by 3 percent in 1980; unemployment to rise to 2 million by 1981†. This was the aftermath of Callaghan’s struggling Labour government, therefore there needed to be a serious restructuring of the economy. The Conservative’s economic aims were set by Geoffrey Howe, the first Chancellor of the Exchequer under Thatcher, whom introduced the tax-cutting budget of 1979. This programme was underpinned by the doctrine of ‘monetarism’, which is a school of thought based upon the control of the supply of money circulating in the economy and that aims of ‘monetary policy are best met by targeting the growth rate of the money supply’. As a result, her monetarist economic policies started by increasing interest rates to slow the growth of money and increases in various taxes to quell inflation. The battle against inflation was succeeded at reducing inflation from ‘20% to between 4 and 5% percent in the period 1983 to 1987†. It could be said that these monetarist policies and budgets distinguished her from previous governments. The reduction of inflation meant a success for the Conservative party but also a turning point for Thatcherism. Although Thatcher was successful at reducing inflation at the lowest level in 13 years; this was largely achieved by the mass closure of factories and recession. The world recession of 1979 – 81 was felt particularly badly so the rate of unemployment had risen 3 million in 1983. This highlights the impact of Thatcher’s governance had reached to epic proportions already in her first term and also a great failure. It could be argued that the issue of the Falklands war in 1982 led to a recovery in Thatcher’s popularity but more importantly she faced the most challenging crisis of her career. The war which lasted for 74 days for the control over the Falkland Islands was a result from the long running dispute between Argentina and Britain. This was over the sovereignty of the Falkland Islands. The invasion demonstrated Thatcher’s sheer toughness and strength. It could also be said that the liberation the Falklands was reckoned as a ‘personal triumph’ and was proved to be the ‘defining moment of her premiership’. The Falklands war and a distrusted divided opposition helped Thatcher win the 1983 general election. And one of Thatcherism’s innovations during her second term was the attitude towards the trade unions. Thatcher was determined to weaken the stranglehold labour unions held over the industries and government in Britain which resulted in enacting the trade union reforms. The main aims of Conservatives were to reduce the ability of the trade unions to challenge the government and stand in the way of economic change and reforms, which broke the traditional relationship with them. This could be highlighted by the uprising of the militant miners in 1984. The miners union and strike was led by Arthur Scargill for a year, with the stated aim of ‘roll back the years of Thatcherism’, as he needed a show of force with large numbers of pickets to stop coal being transported. And also Scargill needed to ensure that the strike held by ensuring that miners did not return to work. On the other hand Thatcher’s attitude throughout the strike was to hold firm and regarded it as ‘more a political insurrection than an industrial dispute; picket violence met police force’. This meant that Scargill’s flying pickets and his resolution to roll back the years of Thatcherism had ended in bitter defeat. The strike was a clear demonstration of the politics of Thatcherism, which were radical, uncompromising but very divisive. Two of the lasting legacies of Thatcherism were arguably the privatisation programmes and the government’s right to buy scheme. The Tories as a party have long upheld the policy of self-reliance from state and Thatcher believed strongly in the freedom of the individual. Therefore the government promoted the privatisation of public owned public services, with it being called â€Å"a crucial ingredient of Thatcherism†. The process of de-nationalisation of state owned industries meant the privatisation of gas, water, electricity and steel, which are a few to name. The privatisations helped to reinforce enterprise, small state, gave individuals the chance to buy shares and increase their wealth. As stated by Holmes, one junior minister thought that ‘the political advent of privatisation was a clear way of influencing the electorate – it was a sensible and popular policy’. Privatisation of council housing was another success of Thatcherism. The ‘right to buy’, as it was commonly called, the policy could be argued that it targeted particularly at non traditional Conservatives. The Thatcher government had foreseen the electoral prospects by the support of those who had bought their homes under the right to buy scheme and who would lose their home under compulsory purchase orders with the return of a Labour government. Inevitably the growth of party de-alignment and class de-alignment grew in the 1980’s as working class voters helped to return a Conservative government. This highlights the changing nature of British voting ethos which was influence by Thatcherism. Apart from the fact that inflation returned again in 1990 to destroy the economy, Thatcher’s implementation of the poll-tax was proving controversial and unpopular. The poll-tax was another classic piece of Thatcherism and it was aimed at exposing high spending Labour councils. It worked not by taxing properties but by levying a tax on the individual people within those households. Therefore, those at the top of the income scale paid little more than middle class and working class voters. These very voters that had voted the Conservatives soon opened revolt with the series of mass disturbances known as the ‘Poll Tax Riots’ in 1990. Thatcher defended the poll tax, which an opinion poll had found 12% favoured it. This highlights as perhaps one of the greatest failures of Thatcherism, which subsequently contributed to Thatcher’s downfall. Another reason to contribute towards Thatcher’s downfall and resignation was the discontentment within the party and also due to her unpopularity. It could be argued that during her years in office, Thatcher had the second-lowest approval rating, at just 40 percent and was consistently deemed as less popular than her party by polls. To support that statement, opinion polls in September 1990 reported that ‘Labour had established a 14 percent lead over the Conservatives’. However the resignation of Geoffrey Howe was fatal to Thatcher’s premiership later, with Michael Heseltine’s challenge for the leadership of the Conservative party had completely destroyed Thatcher’s ability to stay at 10 Downing Street. It could be said that the Thatcherism still had a profound influence on British politics after Thatcher left office, as John Major sought to build upon her legacy by attempting to secure her legacy whilst smoothing over the rough edges. And more notably, Tony Blair’s New Labour was built upon Thatcher’s reforms such as the privatisation programme was left intact as Labour itself carried out mini privatisations such as air traffic control. Furthermore business and enterprise had been courted by New Labour, corporation tax cut and employee rights were strengthened rather than the ties with the Trade Unions. As this essay has provided arguments for the successes and the failures of Thatcherism and the Thatcher government, it without a doubt, highlights the unique political style and political substance that was present for over eleven years. It could be said that Thatcherism radically departed from the norms and traditions of British politics, especially after the post-war consensus. The policy in regards to the economy from the period of 1979 demonstrated a significant shift from accepting previous government’s Keynesianism orthodoxy to Thatcher’s belief in monetarism. The contrast between previous Labour governments and Thatcherism could not be sharper. The Labour party’s incentive was to nationalize more whereas it was the Conservatives that privatized industries with the individualistic approach enacted effectively under Thatcher. However the arrival of Thatcherism marked something which could be claimed as revolutionary, as Blair strategy was based upon third way politics. It could be said that Thatcherism was a success as the school of thought is still applied to today’s politics however times are once again changing in British politics, so the success of Thatcherism in the future is yet to be decided.

Special Individuals Research Paper Example | Topics and Well Written Essays - 2500 words

Special Individuals - Research Paper Example Discuss thoroughly. Manifestation determination is the act of â€Å"determining whether the behavior that results in a suspension or change of placement is a manifestation of a child’s disability† (Giordano, 2008). It often takes place when a school is implementing a change of placement or suspension due to violations of school rules; when a student has been removed from the school system for more than 10 days within a school term; or when a student is being punished for activities or behavior which indicates a pattern (Giordano, 2008). In instances when the behavior is indicates a student’s disability, a Functional behavior assessment must be carried out and a plan of behavior conceptualized. Students with exceptional needs – those with disabilities (with Individualized Education Programs or IEPs) – can be suspended up to ten days during a school year or even expelled for their behavior which is not caused by their disability. There is a need to ca rry out additional procedural safeguards in instances when suspension exceeds ten days (FSUSD, n.d). 3. List and describe three strategies or interventions to use when teaching and working with students with emotional or behavioral disorders. Why do these particular strategies work well with these students? a. Use taped word read-alongs (Trim, 2009). Studies have provided strong support for this strategy with students under this intervention improving their reading rate at a faster pace. b. Test retakes (Trim, 2009). Studies also point out that students who could do retakes of tests, scored higher than those who could not (Trim, 2009). c. Responses, praise, and academic talk (Trim, 2009). Students given more praise performed better than those who were not praised as much. d. Cover, copy, and compare (Trim, 2009). This is a process of considering instructions, extracting it, and interacting with a greater amount of accuracy (Trim, 2009). If the student is wrong, then he keeps trying until he would get it right. Part 2 Introduction The history of violence in schools has been a subject of discussion in government agencies and interest groups. These incidents have graduated from minor skirmishes to major gun shooting incidents. Some of these incidents have proved fatal to students and to teachers alike and they seem to find its roots in behavior disorders from troubled teens and youths. This discussion shall consider the Worthing High School shooting incident. Discussion This shooting incident involved atleast two gunmen which killed one man and hurt five other people. About sixty individuals from Worthing, Madison, Yates, and Jones high schools were attending an all-girl football game when a Ford Taurus drove into the field. The game was apparently not a sanctioned event. Attendees were residents of surrounding neighborhoods and were not HISD students (Glenn and O’Hare, 2011). A fist fight first broke out between two individuals and this escalated to a fig ht between two groups of men. A gun was soon drawn and was fired by some of the men. The incident was considered to be gang-related. The life of a former Worthing High School student was claimed in the shooting. Participants in the fight, including those who were injured were interviewed after the shooting (Glenn and O’Hare, 2011). Officials with the Houston Independent School District were prompted to reinforce their security as a

Ethics Research Paper Example | Topics and Well Written Essays - 2000 words

Ethics - Research Paper Example Ethics assumes that people are rationale beings, and they are free. These assumptions are critical since they affect the level of people’s moral responsibility. Ethics involves two objects, which are physical or nonphysical. In the physical object involves the doer of an action while nonphysical object consists of the act being performed by the doer. Moral acts of human are viewed as being official ethical objects, because they comprise moral values. Therefore, in each decision that man makes, either in business or government, we are always subjected to approach such issues, if they are moral judgments, or whether they are objective. Ethics entails individuals to express insights in aspects of reality, instead of sheer feelings, requirements, decisions, or conventions among others. The aspect of ethics is based on theorizing it as an issue of free and intelligent decision that seeks the intelligent fit for what is right and acceptable in society. Ethics is founded on a set of ethical and moral principles. These principles are binding to all businesses and governments and must be seriously observed. The ethical values override all human rationalism, weakness, ego and personal errors. The government and business employers are integral in ensuring that the ethical aspects of society are upheld. There are numerous values that have spurred successful corporations to the peak of the business world, as they have managed to withstand the time test, and enhanced the development of such organizations. Ethics entails that businesses should be honest in their operations, toward their customers and surrounding community. Honest businesses are always observant of set legal laws and accountable to their mission. However, dishonest businesses are locked in continuous scandals that have not only split their reputation but as well led to critics questioning their ethical relevance. By partaking in highest ethical standards businesses is entailed to embrace integrity and w hich enables them to connote their strength and stability. Businesses that exhibit integrity indicate completeness as well as soundness in a person’s temperament and that of their organization. Similarly, companies that exhibit responsibility are considered to be ethical. Those that take accountability and responsibility for their actions, helped to maximize, on respect and cohesion, in society. Responsible businesses do not blame others, claim victimhood or pass the buck and refuse to take responsibility of what they have caused. Actions indicate the ability for one to be responsible both in little and massive things; thus ensuring that ethical values are maintained (Menzel, p.21). Ethics also entails businesses to provide quality products to their customers. Quality entails more than producing the best product but should comprise every aspect of the organization’s activities. Businesses that offer quality have a profound sense of self-respect, pride in achievement, a nd thoughtfulness that influences all things. Ethic is exhibited when businesses communicate professionalism and quality. Furthermore, ethics requires businesses to be trustworthy and respectful in their operations. Trust helps companies, to attain customer confidence, in their product and business, and it becomes exceedingly hard for a business to get it back, once it is lost. Conversely, respect is considered to

Morning Java Descriptive Essay Essay Example for Free

Morning Java Descriptive Essay Essay Java Startled by my alarm, I stretch my arm out from under the covers and search frantically in the dark to put an end to the obnoxious sound. I feel around for my lamp and switch it on, keeping my position until my eyes adjust to the light. Before I ever get out of bed, I’m already overwhelmed thinking of my many tasks for the day. When motivation is scarce, there is only one thought that brings me out of my cozy, warm bed and to my feet. Waiting to be made is a fresh, boosting cup of morning coffee. Confronting the seemingly arctic air, I slide my feet into fuzzy, pink slippers and head for the kitchen. I make a quick stop at the thermostat, crank up the heat, then b-line it to the stainless steel coffee pot that used to belong to my Grandmother. Sitting next to the pot is a bright red Folgers can. Holding it up close to my face, I crack open the lid and am instantly delighted with the robust scent of ground coffee beans. Possibly being the only â€Å"me time† of the entire day, the quietness of the early morning combined with the delicious aroma of coffee brewing is greatly treasured. Reaching into the cabinet containing the coffee mugs, I instinctively push through them until my favorite one is spotted. Dulled out yellow with a small chip on the handle, it displays markings from years of the dishwasher’s wear and tear. I pour the steamy drink into the old cup and sip cautiously. No sugar or cream diluting the flavor, I savor the dark coffee and smile with approval. Trusty mug in hand, I sit down to catch a quick glimpse of the morning news. Its warmth cushions the chill I get from the blizzard forecast flashing across the screen. Cold, weary, and fatigued, I sip as fast as I can, urging the rich, caffeinated liquid to hit me as soon as possible. I hear my two year old, sick with the flu, stirring around in his crib. I know it won’t be long from now until he is protesting and ultimately waking my other children. With medicine to be given, breakfast to be made, and children to be dressed, it’s a mystery how I will make it out of the house with my shoes on. But I continue sipping my powerful beverage and before I know it my tiredness fades. Buzzing around the house, I take on the morning tasks with a renewed sense of warmth and liveliness. Knowing without a doubt, this java comes from my ritualistic morning coffee session.

Essay --

Chantin Bullock Historical Methodologies The warmth of all suns Precis December 11th, 2013 The Warmth of all suns is a collection of three people’s experiences in the Jim Crow south and how they was able to leave the South and heading to the north which was part of The Great Migration. The Great Migration was one of the most unsought after events in American History. From 1910 to 1960 over 6 million African Americans moved from the rural areas of the south to the urban Northeast, Midwest, and west. African Americans had become an urbanized population because over eighty percent of African Americans lived in cities. Since 1970 African Americans began returning to the south which is also called the reverse migration or New Great Migration. The main theme of this book is to not only provide information of the great migration, but for the reader to see the obsticles the three individuals had to encounter in order to develop the courage to finally leave a place where they weren’t treated as human beings. They decided to leave to pursuit a better life, some left to save their own lives. ... Essay -- Chantin Bullock Historical Methodologies The warmth of all suns Precis December 11th, 2013 The Warmth of all suns is a collection of three people’s experiences in the Jim Crow south and how they was able to leave the South and heading to the north which was part of The Great Migration. The Great Migration was one of the most unsought after events in American History. From 1910 to 1960 over 6 million African Americans moved from the rural areas of the south to the urban Northeast, Midwest, and west. African Americans had become an urbanized population because over eighty percent of African Americans lived in cities. Since 1970 African Americans began returning to the south which is also called the reverse migration or New Great Migration. The main theme of this book is to not only provide information of the great migration, but for the reader to see the obsticles the three individuals had to encounter in order to develop the courage to finally leave a place where they weren’t treated as human beings. They decided to leave to pursuit a better life, some left to save their own lives. ...

Role of Money Market in Economic Development of Nigeria

Discount Houses Operations, the Money Market and the Nigerian Economy: A Preliminary Investigation C. B. Ezirim and F. E. Enefaa Abstract This paper investigates the relationships subsisting between the operations of discount houses and the performance indices of the money market and the general economy. The method used involved the estimation of regression models and subsequent analysis of results using conventional statistics. The findings indicate that positive and significant relationships existed between the indicators of discount houses and those of the money market and the macro economy.Thus, the operations of these houses reserve the potentials to boost the performances of the money market and the economy considerably. This calls for policy options that would favor the encouragement of existing houses and licensing of new ones to adequately carter for the needs of the overall economy. Introduction It has been underscored that discount houses play very important roles in stimu lating investments in the economy and in boosting the general operations of the money market.Not only do they serve as catalyst in the market, they are, on their own, large-scale investors in the money market as well. Their role in facilitating profitable open market operations is worth stressing (CBN, 2004; Ezirim, 2005). Notwithstanding these and other roles performed by discount houses in a typical economy, the Nigerian money market operations are said to be sub-optimal in terms of engineering desired growth in the economy. The observed sub-optimality of the Nigerian money market is blamed, in part, on the poor performance of discount houses and other money market institutions.Discount houses, from the onset of their operations in the country, were expected to cause the Nigerian money market to operate optimally. Since the money market is yet to achieve this objective, can we then say that the discount houses have failed in their expected duties? It is the burden of this study to ravel the true position by x-raying the relationships between relevant variables representing the operations of the money market and those of the discount houses.Furthermore, the entire activity of the discount houses is expected to directly or indirectly boost aggregate domestic investment, output, and income. The levels of these macro magnitudes, even with the advent of discount houses, have left much to be desired. Does this suggest that these institutions, alongside others, have failed in their critical duty to the economy? The need to investigate the relationship between the 94 operations of these financial institutions and relevant macro indicators is only rife.It is, therefore, main purpose of this study to analyze the operational performance of discount houses in a bid to see how they relate with the general performance of the money market and the macro economy. Theoretical Framework and Review Concept and Roles of Discount Houses Discount houses are recent but novel develo pments that are meant to further the catalytic processes in the economic advancement of the less developed countries (LDCs) like Nigeria, especially in the money market sub-sector.By definition, discount houses are financial institutions devoted to trading in money market securities in the secondary market. As in Ezirim (2005), discount houses (DHs) were established to serve as financial intermediaries between the Central Bank of Nigeria (CBN), licensed banks, and other financial institutions. DHs mobilize funds for investments in securities by providing discounting/rediscounting facilities in government short-term securities.According to Central Bank of Nigeria (2004: 1) Revised Guidelines for discount houses in Nigeria, â€Å"a discount house means any person in Nigeria who transacts a discount house business which in the main consists of trading in and holding of treasury bills, commercial bills and other securities and whose operations are in the opinion of the CBN those of a d iscount house†. Local Banks and other financial institutions including insurance companies, with or without the participation of international finance institutions acceptable to the CBN, can subscribe to the shares of a iscount house business. However the maximum permissible equity holding for any single investor in a discount house is 40%. Kakawa Discount House Ltd. (2005) provided a distinct approach to understanding the discount house phenomenon. To them, a discount house is a specialist financial institution, which intermediates in the money market by accepting short-term monies for onward investment in short-term financial securities from commercial, universal, investment and development banks, building societies, other financial institutions and high net worth individuals.They are credited with playing a vital role in the Nigerian Monetary System by sitting at the centre of the money market, and offering the safest avenues available for investment in Nigeria today. They invest mainly in government treasury bills and to a lesser extent in commercial bills issued by blue chip companies, and accepted by creditworthy bank. Their principal specialization is in providing primary liquidity in the Nigerian financial sector through the buying and selling of security in huge volumes for very short period of time.A discount house in Nigeria is a specialist financial institution that acts as an agent for facilitating the Open Market Operation (OMO) allocations; and as a market marker in Nigeria money market. Ajie and Ezi (2001) maintained that the establishment of discount house in Nigeria has been an important development that led to an increased level of activity, fund flows and growth of the money market. 95 Establishment and Raison d’etre of Discount Houses in Nigeria Discount Houses were set up by the provisions of Section 28, of the Central Bank of Nigeria (CBN) Decree No. 4 of 1991 and sections 61 of Banks and Other Financial Institutions (BOFID) Decree No. 25 of 1991 as amended. Three discount houses commenced operations in 1993 while two others joined between 1995 and 1996. Discount Houses were primarily created in Nigeria to carry out the following functions: (a)Promotion of rapid growth and efficiency in the money market; (b) Acting as an intermediary between the CBN and licensed banks in Open Market Operations (OMO) transactions and other eligible transactions; (c ) Facilitating the issuance and sale of short termGovernment securities, (d) Providing discount/re-discount facilities for Treasury Bills, Government Securities and other eligible financial instruments; (e) Accepting short-term investments on an intermediary basis from banks and wholesale investors; and (f) Providing short term financial accommodation to banks. The CBN injects or withdraws funds from the money market through the Discount Houses, whose operations will enable them serve as a mirror with which the CBN gauges the liquidity position in the market. Discount Houses help banks to adjust their books on a daily basis, resulting in the stimulation of the money market and paving the way for healthy growth, efficiency and professionalism. Following the recent CBN 2004 Guidelines, the functions of a Discount House were expanded to include: (a) Providing portfolio and funds management services, (b) Providing financial and business solutions, and (c ) Other functions that may be prescribed by the CBN from time to time (CBN, 2004).Regulation and Control of Discount Houses in Nigeria The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) regulate and control the activities of the Discount Houses. In a bid to keep Discount Houses secure, the CBN strictly regulates them through daily, weekly, monthly, semi-annual and annual reporting of their statement of affairs while relevant quarterly reports are sent to SEC. This keeps the regulatory agencies continuously informed of the situation prevailing in the Discount H ouses on a daily basis ( Kakawa, 2005).In terms of prudential requirements, the CBN (2004) required that every discount house shall: (a) transfer to the statutory reserve a minimum of 15 percent of profit after tax if the reserve fund is less than the paid-up capital and a minimum of 10% if the reserve fund is equal to or more than the paid-up capital; (b) maintain capital funds to risk assets ratio of 1:13 and cash asset ratio (CAR) of 10% or as may be prescribed by the CBN from time to time; (c ) not exceed a maximum ratio of 50:1 between its total borrowing and capital plus reserves without the prior approval of the CBN; (d) not grant to any bank, facility of more than 75% of its shareholders’ funds unimpaired by losses without the prior approval of the CBN; (e) (i)at all times maintain not less than 60% of total borrowing in government securities; (ii) Any discount house which fails to maintain the 60% of borrowings in government securities is guilty of offence and liable to fine as stipulated in Section 15(4)(b) of BOFIA as amended. (f) shall classify and make provision for its risk assets in line with prudential guidelines for banks; (g) maintain proper books of accounts; (h) every discount house shall display its daily rates or interest in a conspicuous position in all its offices; (i) 96 hanges in the discount house’s top management and Board of Directors shall be subject to the prior approval of CBN; (j) every discount house shall appoint an auditor approved by the CBN whose duties shall be to make to the shareholders a report of their annual balance sheet and profit and loss account. The qualifications, duties, powers and responsibilities of the approved auditors shall conform to the provisions of Section 29 of BOFIA 1991, as amended; and (k) all repurchase transactions (Repos) by discount houses shall be reported on the balance sheet if the securities used are owned by the discount houses with the affected assets remaining in the books of the sellers (discounting houses), while the cash received by them shall be recognized as a liability (CBN, 2004). Services and Financing of Discount Houses Discount Houses offer a wide range of financial products to Banks, Non-Bank Financial Institutions and the general public.The main services include: (a) Securities trading which includes buying and selling of: Treasury Bills, Treasury Bonds, Government Bonds, and Commercial Bills; (b) Accepting short-term investments from banks and providing short-term accommodation to banks; (c) Short-term financial intermediation through the acceptance of funds and simultaneous investment of the funds in: Commercial Papers, Bankers Acceptances, Government Securities; (d) Providing personalized wealth management to high net-worth individuals through a network of investment managers, financial consultants and other specialists; (e) Effective portfolio management on both discretionary and non-discretionary basis through the provision of medium to long term investment management services to: Pension funds, Private clients, Employee Schemes, Trustees of family settlements and charities; and (f) Providing Business Solutions in: Financial Arrangement and Management, Mergers and Acquisitions, Privatization, Business Assessment, Business Structuring, and Data Resource and Management (kakawa Discount House Ltd. , 2005) The Sources of funds for discount houses in Nigeria included: (a) Equity – Paid- up Capital and Reserves. (b) Call money and short-term borrowings of not more than three years maturity. (C) Call money placed by banks with discount houses shall form part of the specified liquid assets of the respective banks for the purpose of the liquidity ratio requirement. d) A discount house that is short of funds may: (i) obtain from the CBN an overnight advance against acceptable collateral. However such an advance shall not exceed 20 percent of the total assets of the discount house and shall not in any event be gran ted if the discount house has exceeded the borrowing limit as prescribed by CBN; (ii) sell short-term bills and/or other securities to the CBN. The CBN shall provide rediscounting facilities for treasury and other eligible securities; and (iii) enter into Repurchase transactions with the CBN using eligible securities. The short-term nature of the liabilities of a discount house requires that its assets be substantially liquid.The assets of a discount house shall consist of the following: a) Treasury Bills; b) Treasury Certificates; c) Negotiable Certificates of Deposit (NCDs); d) Bankers’ Acceptances; e) Commercial Papers (eligible); f) Asset-Backed Securities (of not more than three years to maturity); g) Federal Government Development 97 Stocks (development stocks not exceeding five years); h) Eligible State Bonds (bonds with not more than five years to maturity); i) Promissory Notes issued by State Governments; and j) Any other securities that may from time to time be appr oved by the CBN. Discount Houses, Open Market Operations, and the Money Market Open Market Operations (OMO) is an indirect monetary policy technique that is used to control the level of money supply.It involves the sale/purchases of money market instruments in the open market. In Nigeria, the money market instrument used for OMO auctions is the Treasury Bills. Discount houses are the exclusive agents, in the conduct of OMO in Nigeria. OMO auction are held on a weekly basis. Presently, the notice is put out on Wednesday. Banks and other participants forward their bids to the discount houses on Thursday whilst the results are released the following day, Friday. The Discount House submits bids from authorized dealers, including its needs for OMO instruments, to the Central bank and facilitates the payments and settlement of the transactions.The money market is a wholesale market for low risk, highly liquid, short-term debt instruments. Shortterm refers to a tenor of less than one year. In Nigeria, the instruments traded in the main are Treasury Bills, Bankers Acceptances and Commercial Paper. The heart of activity in the money market occurs in the dealing rooms of discount houses and banks. Each day, billion of Naira is traded between operators in the money markets (CBN, 2004; Kakawa, 2005). Performance of Discount Houses in Nigeria Since inception, the discount houses have especially increased the level of activity in the secondary market for government securities. This is apparent from the volume of treasury bills currently held by banks. This increased from N5,181. million in 1992 to N38,286. 8 million in 1994. This is very remarkable when we consider that the treasury bills issued by the CBN had shown a downward slide from N81152. 1 million in 1992 to N30633. 2 million in 1994 and N20247. 7 million in 1996. As at 2002, there were 5 discount houses operating in Nigeria. Relative to their performance in 2001, they recorded significant growth in 2002. The total assets of the 5 operating Houses amounted to N57. 3 billion at December 2002 and N67. 3B as at the end of 2004 ( See Table 1 below). Total funds available amounted to N28. 7 billion compared with N9. 7 billion in 2001. The funds were sourced mainly from money-at-call (N13. billion), other amounts owed to bank and non-bank customers (N11. 7 billion), accretion to capital and reserves (N1. 6 billion), and reduction in cash and balances with banks (N1. 5 billion). 98 Table 1: Selected Indicators of Discount Houses, Money Market and Nigerian Economy Discount Houses Shareholders’ Funds (DHSF) NM 1993 436. 0 1994 565. 7 1995 865. 6 1996 1251. 7 1997 1430. 5 1998 1710. 3 1999 2136. 5 2000 3730. 7 2001 4948. 6 2002 6511. 0 2003 7679. 0 2004 9924. 5 Source: CBN Annual Reports, various years. Year Discount Houses Assets (DHASS) NM 4,461. 8 9,583. 2 3,431. 9 1,178. 4 6,996. 1 7,842. 6 15,049. 6 30,260. 8 32,353. 7 57,282. 52,731. 2 67,346. 2 The funds were largely utilized for investmen ts in government securities (N19. 7 billion), settlement of claims to banks (N2. 4 billion), and acquisition of other assets (N2. 4 billion) among other uses (CBN, 2002: 42, 43). The Central Bank (2004a) reported that the level of activities of discount houses recorded relatively improved performance in 2004 relative to compared with what obtained in 2003. The total assets/liabilities rose from N52. 7 billion in 2003 to N67. 3 billion in 2004, representing an increase of N14. 6 billion or 27. 7 per cent, while the total funds sourced amounted to N22. 6 million, compared with N15. billion in the preceding year See Table 1). The funds were sourced mainly from non-bank customers (N8. 1 billion), reduction on claims by banks (N5. 7 billion), and an increase in reserves (N2. 2 billion). The funds were utilized mainly in the purchase of Federal Government securities of less than 91-days maturity (N16. 2 billion). Discount houses’ investment in Federal Government securities of less than 91 days maturity amounted to N38. 1 billion at end-December 2004, representing 80. 1 percent of their total deposits liabilities. This was 20. 1 percentage points higher than the prescribed minimum of 60. 0 per cent for fiscal 2004 (CBN, 2004a).These show how important the impact of the discount houses has largely been felt in the level of activity and nature of holding of government debts instruments. Research Methodology Design of the study and Data: The study investigates the effect of the operational Performance of the discount houses on the Nigerian economy. The method employed included the estimation and analysis of regression models. For the purpose of this study, the research design used was the investigative research method which is mainly biased to inferential statistical analysis (Baridam, 2005). This study was intended to cover the entire discount houses operating in Nigeria.Accordingly, time series annual data 99 covering the period of 1993 through 2004 were obtain ed and analyzed. The Annual Report and Statement of Account of the CBN for various years constituted the sources of the time series data for the estimations. Operational Measure of the Variables: The dependent variables in this study are the operational performance indices of the money market and the entire economy, namely the total value of operations of the money market and the real GDP respectively. The independent variables are the operational performance indices of the discount houses, namely the discount houses shareholders’ fund (DHSF) and discount houses assets (DHAS).Data Analysis Techniques: Besides the desk research method which informs an extensive review of the theoretical underpinnings related to this topic, the study involved the estimation of conventional regression models as earlier mentioned which assisted in analyzing the data. The ordinary least square (OLS) technique was also adopted using the SPSS software for the estimation of the variables. The tand F- tests were used to test for significance of the results obtained. Hypotheses, Estimation Results, and Analysis Two hypotheses were formulated to the intent of finding the nature and magnitude of relationship existing between discount houses operations, on one part, and the money market operations and the general economic activity of the country, on the other. The resultant linear regression models were estimated and analyzed below. Relation between Discount Houses’ and Money Market Operations The first ypothesis states that: there is no significant relationship between the country’s money market operational performance and the operations of discount houses in the country. As expected the regression statistics were calculated using the SPSS computer software programme. The indicator of the money market, namely money operations from 1993 through 2004 were regressed against the indicator of discount houses, namely, the total capital injections (shareholders fund – DHSF) of discount houses on one part, and total assets of discount houses (DHAS) on the other. This procedure yields two subhypotheses: one relating money market operations (MMOP) with discount houses shareholders’ fund (DHSF) and the other linking MMOP with discount houses assets (DHAS).The results of the computations are summarized on Table 2 which depicts the regression results of relations between the above variables. In each case, the MMOP remained the dependent or explained variable, while the DHSF and DHAS were the independent variables. As shown by the Table, for the MMOP-DHSF relation, the observed coefficient of regression was 0. 995, while the same statistic was observed as 0. 978 for the MMOP-DHAS relation. 100 This suggested that the degree of association between the money market performance and the discount houses’ operations was very high, being at least 97%. The observed high degree of relationship was confirmed by each of the coefficient of determinat ion (r2) of 0. 91 and 0. 957 respectively. The results of the r2 showed that at least 95. 7% of the variations in money market operations can be attributed to the effects of discount houses’ operation, when the explanatory variable was DHAS. Table 2: Regression Results Showing Relationship between Discount Houses and Money Market Operations Independent Variables Statistics DHSF DHAS Coefficient of Regression (R) . 995 . 978 Coefficient of Determination (r2) . 991 . 957 Adjusted R Square . 990 . 952 F-Ratio 1050. 12 220. 522 Significance Level of F . 000 . 000 Regression Coefficient (beta) . 995 . 978 t-Statistics 32. 406 14. 85 Significance level of t . 000 . 00 * Dependent variable is MMOP. Source: Computer Printout (SPSS) The level of explained variation when the explanatory variable was DHSF was 99. 1%. The range of the degree of explained variation attributable to the models, thus, was between 95% and 99%. After adjusting for the effects of small sample size (number of ob servations) and number of independent variable (which remained constant however in each case implying that only sample size was adjusted), the adjusted coefficient of determination, r2, were 0. 99 for DHSF and 0. 952 for DHAS. By implications after the necessary adjustments, the proportion of explained variation remained at between 95% and 99%.The F-ratios of 1050. 12 for DHSF variable and 220. 522 for DHAS variable are all significant at 1% level or less (P = . 000 in each case). This implies that the relationships between MMOP and DHSF and DHMS are statistically significant at the conventional levels. The relative effects of each independent variable as denoted by the t-statistics are equally computed to be statistically significant as expected (t = 32. 406 for DHSF and t=14. 85 for DHAS; P= . 000 in each case) at 1% level of significance. Given these, we cannot accept a null hypothesis of no significant relationship between operations of the money market and those of the discount houses.Thus, there is a statistically significant relationship between discount houses operations and money market performance in Nigeria. Discount houses operating in Nigeria affect the Nigerian money market both positively and significantly. Relationship between Aggregate Economic Performance and Discount Houses Operations The second hypothesis attempts to know whether or not the general economy has been significantly impacted by the discount houses’ operations in the country. This hypothesis stated in the null is as 101 follows: There is no significant relationship between the aggregate economic performance represented by the GDP and the operations of discount houses in Nigeria.Table 3: Regression Results Showing Relationship between Discount Houses’ Operations and Real DGP Independent Variables Statistics Coefficient of Regression (R) Coefficient of Determination (r2) Adjusted R Square F-Ratio Significance Level of F Regression Coefficient (beta) t-Statistics Sign ificance level of t DHSF . 971 . 943 . 937 163. 97 . 000 . 971 12. 805 . 000 DHAS . 947 . 898 . 887 87. 705 . 000 . 947 9. 365 . 000 * Dependent variable is real GDP. Source: Computer Printout (SPSS) The regression statistics were calculated using the SPSS computer software program. The indicator of the economy namely Real GDP from 1993 through 2004 were regressed against the indicators of iscount houses, namely, the total capital injections (shareholders fund – DHSF) of discount houses on one part, and total assets of discount houses (DHAS) on the other. This procedure yielded two subhypotheses: one relating Real GDP (RGDP) with discount houses shareholders funds (DHSF) and the other linking RGDP with discount houses assets (DHAS). The results of the computations are summarized on Table 3 which depicts the regression results of relations between the above variables. In each case, the RGDP was treated as the dependent or explained variable, while the DHSF and DHAS were the in dependent variables. As shown by the Table, for the RGDP-DHSF relation, the observed coefficient of regression was 0. 971, while the same statistic was observed as 0. 947 for the RGDP-DHAS relation.This suggested that the degree of association between the aggregate economic performance and the discount houses’ operations was very relatively high, being at least 94%. The observed high degree of relationship was confirmed by each of the coefficient of determination (r2) of 0. 943 and 0. 898 respectively. The results of the r2 showed that at least 89% of the variations in aggregate economic activities can be attributed to the effects of discount houses’ operations, when the explanatory variable was DHAS. The level of explained variation when the explanatory variable was DHSF was 93. 7%. The range of the degree of explained variation attributable by the models thus was between 89% and 94%. 102After adjusting for the effects of small sample size (number of observations) and number of independent variable (which remained constant however in each case implying that only sample size was adjusted), the adjusted coefficient of determination, r2, were . 937 for DHSF and . 887 for DHAS. By implications after the necessary adjustments, the proportion of explained variation remained at between 88% and 93%. The F-ratios of 163. 97 for DHSF variable and 87. 7 for DHAS variable are all significant at 1% level or less (P = . 000 in each case). This implies that the relationships between RGDP and DHSF and DHAS are statistically significant at the conventional levels. The relative effects of each independent variable as denoted by the t-statistics are equally computed to be statistically significant as expected (t = 12. 8 for DHSF and t = 9. 4 for DHAS; P= . 00 in each case) at 1% level of significance. Given these, we cannot accept a null hypothesis of no significant relationship between aggregate economic activities of Nigeria and operations of the discount houses . Thus, there is a statistically significant relationship between discount houses operations and economic performance of Nigeria. Discount houses operating in Nigeria affect the Nigerian economy both positively and significantly. Concluding Remarks It was thus the main purpose of this study to analyze the operational performance of discount houses in a bid to see how they relate with the general performances of the money market and with the macro economy.Put simply, the study investigated the effects of the operational Performance of the discount houses on the Nigerian money market and the economy. The method employed included the estimation and analysis of regression models. The results indicated that: there is a statistically significant relationship between discount houses operations and money market performance in Nigeria. Discount houses operating in Nigeria affect the Nigerian money market both positively and significantly. Furthermore, there is a statistically significant rel ationship between discount houses operations and economic performance of Nigeria. Discount houses operating in Nigeria affect the Nigerian economy both positively and significantly.The results suggest that the establishment of discount houses has been shown to be one of the potent measures that have tremendous potentials to strengthen and cause real growth to the money market and the economy. In keeping with the above, the Government and the Central Bank should endeavor to license more discount houses since their operations are beneficial to the country. The five discount houses currently operating are too few to satisfy the requirements of a vast country like Nigeria. The opearational Houses and the authorities should also endeavor to awake the consciousness of the investing and the business public to proper usage of the facilities and services provided by discount houses.Candid awareness should be provided and information made available to the investor public to know which discoun t house is performing better and good for patronage. The management of the operating discount house should endeavor to improve in their service offerings to their customers especially in the area of making their discount charges to be reasonably competitive. This could also improve the clientele level of the 103 operating discount houses in the economy. It is important that discount houses’ management, investors and government critically analyze and understand the effect of under-utilization of services or facilities provided by discount houses.It is the humbly suggestion of the authors that further empirical works be carried out on the identified relationships using more powerful and sophisticated tools and larger number of observations such as in the cases of monthly and quarterly data. Comparisons between the Nigerian experiment and the experiences of other developing countries should also be made. These would assist the general understanding of the unique roles of discoun t houses in the less developed countries. 104 References: Ajie, H. A. and Ezi, C. T. (2001) Financial Institutions and Markets, Paragraphics Publishers, Enugu. Baridam, D. M. (2005) Research Methods in Administrative Sciences. NTA Road, Port Harcourt. Sherbrooke Associates. Central Bank of Nigeria (2002) Annual Report and Statement of Accounts. Abuja: CBN Press. Central Bank of Nigeria (2004) Revised Guidelines for Discount Houses. CBN Press.Central Bank of Nigeria (2004a) Annual Report and Statement of Accounts. Abuja: CBN Press. Ekezie, E. S. (1990) Elements of Banking. Ibadan: University of Ibadan Press. Ezirim (2005) Finance Dynamics: Principles, Techniques, and Applications. Port Harcourt: Markowitz. Federal Government of Nigeria (1991) Banks and Other Financial Institutions (BOFID) Decree No. 25 of 1991. Lagos: Government Press. Federal Government of Nigeria (1991) Central Bank of Nigeria (CBN) Decree No. 24 of 1991. Lagos: Government Press. Kakawa Discount House Limited (2005 ) Discount Houses in Nigeria. www. Google. com, Accessed October 2005. Layi Afolabi (1992) Law and Practice of Banking. Lagos: Lagos University Press. 105

Is Natural Selection Random

Natural selection, the process by which species adapts to their environment through changes in genetics, is not random. Through years of evolution, natural selection boosts the biological traits that help animals and plants survive in their particular environment, and weeds out the traits that make survival more difficult. However, the genetic changes (or mutations) that are filtered by natural selection do come about randomly. In this sense, natural selection contains both random and non-random components. Key Takeaways Introduced by Charles Darwin, natural selection is the idea that a species adapts to its environment through changes in its genetics.Natural selection is not random, though the genetic changes (or mutations) that are filtered by natural selection do come about randomly.Some case studies–for example, peppered moths–have directly shown the impacts or processes of natural selection. How Natural Selection Works Natural selection is the mechanism by which species evolve. In natural selection, a species acquires genetic adaptations that will help them survive in their environment, and pass those favorable adaptations to their offspring. Eventually, only individuals with those favorable adaptations will survive. One notable, recent example of natural selection is elephants in areas where the animals are being poached for ivory. These animals are giving birth to fewer children with tusks, which may give them a better chance of survival. Charles Darwin, the father of evolution, figured out natural selection by witnessing several key observations: There are many traits–which are qualities or properties that characterize an organism. These traits, furthermore, can vary in the same species. For example, in one area you may find some butterflies that are yellow and others that are red.Many of these traits are heritable and can be passed from parents to offspring.Not all organisms survive since an environment has limited resources. For example, the red butterflies from above tend to be eaten by birds, causing there to be more yellow butterflies. These yellow butterflies reproduce more and they become more common in the next generations.Over time, the population has adapted to its environment–later on, the yellow butterflies will be the only type around. A Caveat of Natural Selection Natural selection is not perfect. The process does not necessarily select for the absolute best adaptation there could be for a given environment, but does yield traits that work for a given environment. For example, birds have more effective lungs than humans, which allow birds to take in more fresh air and are overall more efficient in terms of air flow. Furthermore, a genetic trait that was once considered more favorable may be lost if it is no longer useful. For example, many primates cannot produce vitamin C because the gene corresponding to that trait was inactivated through mutation. In this case, the primates typically live in environments where vitamin C is easily accessible. Genetic Mutations are Random Mutations–which are defined as changes in a genetic sequence–occur randomly. They can help out, harm, or not affect an organism at all, and will occur no matter how detrimental or beneficial it may be for a certain organism. The rate of mutations can change depending on the environment. For example, exposure to a harmful chemical may increase an animal’s rate of mutation. Natural Selection in Action Though natural selection is responsible for many of the traits we see and encounter, some case studies have directly shown the impacts or processes of natural selection. Galapagos Finches During Darwin’s travels in the Galapagos Islands, he saw several variations of a type of bird called a finch. Though he saw that the finches were very similar to one another (and to another type of finch he had seen in South America), Darwin noted that the finches’ beaks helped the birds eat specific types of food. For instance, finches that ate insects had sharper beaks to help catch bugs, while finches that ate seeds had stronger and thicker beaks. Peppered Moths An example can be found with the peppered moth, which can only be either white or black, and whose survival depends on their ability to blend in with their surroundings. During the Industrial Revolution–when factories were contaminating the air with soot and other forms of pollution–people noted that white moths dwindled in number whereas black moths became much more common. A British scientist then performed a series of experiments showing that black moths were growing in number because their color allowed them to blend in better with the soot-covered areas, protecting them from being eaten by birds. To support this explanation, another (initially doubtful) scientist then showed that white moths were eaten less in an unpolluted area, while black moths were eaten more. Sources Ainsworth, Claire, and Michael Le Page. â€Å"Evolution’s Greatest Mistakes.† New Scientist, New, 8 Aug. 2007, www.newscientist.com/article/mg19526161-800-evolutions-greatest-mistakes/.Feeney, William. â€Å"Natural Selection in Black and White: How Industrial Pollution Changed Moths.† The Conversation, The Conversation US, 15 July 2015, theconversation.com/natural-selection-in-black-and-white-how-industrial-pollution-changed-moths-43061.Le Page, Michael. â€Å"Evolution Myths: Evolution Produces Perfectly Adapted Creatures.† New Scientist, New Scientist Ltd., 10 Apr. 2008, www.newscientist.com/article/dn13640-evolution-myths-evolution-produces-perfectly-adapted-creatures/.Le Page, Michael. â€Å"Evolution Myths: Evolution Is Random.† New Scientist, New Scientist Ltd., 16 Apr. 2008, www.newscientist.com/article/dn13698-evolution-myths-evolution-is-random/.Maron, Dina Fine. â€Å"Under Poaching Pressure, Elephants Are Evolving to Lose Their Tusks.â €  Nationalgeographic.com, National Geographic, 9 Nov. 2018, www.nationalgeographic.com/animals/2018/11/wildlife-watch-news-tuskless-elephants-behavior-change/.