Analyse and present research information Essay

Executive summary In this case study â€Å"Kerr Deliveries† is a service oriented organization. They are doing courier service. The purpose of this case study is to solve the problem as an IT expert. Without information technology it is really difficult to develop the business. This modern era is about globalization. Company should adopt different system for their business to stay safe in the right track. Robert Kerr is a successful delivery company based on NSW since 1995. I am working as his assistant. In this report i will recommend which computer to buy for the company. After researching computer market i think company should buy Dell desktop, Toshiba laptop and Samsung PDA. In research report bellow I am going explain why company should buy those brand computers. In this case study â€Å"Kerr Deliveries† is a small company which is operate by Robert Kerr and his associates. They provide delivery services by bicycles, vans and cars for their clients across Sydney and regional NSW. Due to business expanding at rapid rate ,Robert going to begin operations in Canberra, Melbourne and Brisbane in couple of months time. User/system personnel interface in improving system flexibility: Information system has great impact in a every business organization. Information systems flexibility is becoming increasingly important, both research (for example information system, supply chain management, organizational flexibility, research domains) and industry. Rapidly change in the business every organization has given more significance on information systems. Although RTD did not implement information system flexibility and online presence in their business, to develop their business organization they should introduce their information system flexibility in their business. However, the main concept of flexibility in a management disciplines including organization strategy and structured, manufacturing and IT. Every business directly and indirectly depends on information system and companies give primary priority to the information systems. System flexibility develops business efficiency and customer satisfactions. (question1) A service oriented method for system of systems requirements analysis and architecture design: For rapid changes in business environment organization are facing various problems, they may also face the problem of alignment of  IT with business strategy. In our case study RTD faces lots of problems regarding business strategy. Though they are service oriented company with combination of courier, removals and cattle transportation in a certain locality. They have not got proper information systems also got poor transaction record system, job schedule, vehicles problem are the main business problems. In their business they also face few more problems like payroll problem, poor marketing strategy, invoicing problem, and cash and cheque oriented transactions. This article provides reusable and flexible solution for system requirement modelling and it enables the requirement description of system. It also demonstrates the applicability of the method for the service oriented company. (Question 2) Communication of the association for information system: Every organization should implement information system to operate their business activities. This article describes how a punctuated process model can analyse a specific information system development (ISD). They also focus on information system project which was implemented in a UK retail small medium sized enterprise (SME). A new technology was being applied instead of previous one. Basically information system method can give us a new realistic and valuable way to realize ISD as a social process. By using information system development, RTD can communicate through organizational work as well as information system building process within the organization. Eventually this change in existing organizational routines can play positive impact on RTD. (Question 3) Organizational information system competence in SME: Small medium sized enterprise can play vital role in the global economy. In every SME, they need information system to enhance their business activities. There are some associates with business advantages, Information system planning, acquiring IS knowledge and describing its requirements, software and hardware sourcing, develop the application and tools and finally maintain the relationship between IS and suppliers. There are various new frameworks which can help RTD to develop their operational activities. Macro-competence (business and strategic thinking) help them to get rid of their previous problem. This model can develop business  opportunities from current and emerging hardware and software applications. It can also help to established appropriate criteria for decision making on IS investment. It can integrated with IS plan with business strategy. (Question 8) Competitive advantages and strategic Information system: In the time of modern technology, business organization needed useful system for existing in global business. They should implement different types of information system for their business. In this article they provide us different information system which can really help to achieve competitive advantages. Those systems are as follows: Decision support systems (DSS): that helps to build strategic approach to manage Information system/ information technology with an organizational business planning. Primarily Enterprise Resource Planning (ERP): which can integrate between enterprise objectives and enterprise resources. Data base system: is â€Å"data mining† which can help to gather the information for marketing, production, promotion and the innovation for the business organization. Real time Information systems: that intended to maintain a rapid response and the quality indicators. (Question 5) Information System Strategy; Re conceptualization, Measurement and Implications: According to Davis (2000) the information systems of an organization consist of the information technology infrastructure, data, application systems, and personnel that employ IT to deliver information and communications services in an organization .Thus the Concept of IS combines both the technical components and Human activities within the organization as well as describes the process of managing the life cycle of organizational IS Practices (Avgerou and McGrath 2007). In this article they focused on new typology that operationallized is strategy in a way that can apply in a holistic sense to the organization. They also describe different definition of strategy in their extended strategic management literature and finalizing of information system strategy. RTD can use centric view of IS strategy may resolve these outlined issues. (Question 4) Conclusions: In conclusion RTD face various problems when they started their business.  There is no alternative without using information system in a business organization. Nowadays, the business environment change rapidly because of globalization. Every company should keep their information up to date for exist in this competitive market. Information system can do everything. By this system organization can collect data from out sourcing and they can store the data for long as well. They can also communicate properly within as well as outside the organization. They can use different software program for operating their business. They can improve their payroll system. However, they can collect data from internet about competitors. Eventually an organization like RTD can do the best in the market. Recommendations: There are some recommendations RTD can apply for their current situation, for example collaboration and communication, intranet and extranet, different marketing strategy. RTD has some problems to solve these they should first identify their business requirements with information system requirements. Models of Collaboration as the Foundation for Collaboration Technologies: Collaboration is very useful in every organization. According to this article â€Å"collaboration technologies would be more effective and more readily adopted and accepted if collaboration technology development were guided by models of collaboration. Model construction plays an important role in software development today; software developers construct, for example, data models and object models†. This method has no complexity. Most of the organization uses this model for their organization. The authors described four type of collaboration model. Those are as follows: 1) UML (universal modeling language), 2) work flow Modeling, 3) coordination theory model, 4) Goal, objectives, methods, and Selection (GOMS). Here, RTD can use the GOMS model, as they are doing repetitive job like transporting, and courier service for their local clients. Different human teams differed substantially in the ways they interacted and communicated. The GOMS model described how the tasks were intended to be done, but actual behavior deviated widely from this ostensive model. The Internet and DSS: massive, real-time data availability is changing the DSS landscape: The Internet can serve as a source of massive, micro-level data. In the article they discuss about the opportunity and challenges in capturing and utilizing real-time data off the Internet, intranets, or extranets. In the modern technology The Internet and company intranets and extranets increasingly provide the opportunity for a firm to obtain repeated observation of individual choices and actions. Firms now often have access to the information necessary to track the ‘‘progression to transaction’’. This abundance or rush of real time information poses significant opportunities and challenges for DSS development and implementation.RTD has to apply this technology for their business. According to Bapna et al. (2006) the role of Internet data in developing and testing new theories and patterns of individual behavior and market performance. They focused on how such abundance of real-time data offers new horizons for DSS development and continual recalibration. However, they also described the emergence of DSS internet’s data rich environments and B2B system with supply chain management. References: O’Brien, J & Marakas, G 2011, Management information systems, 10th edn, McGraw Hill, New York. Palanisamy, R, Boyle, T.A & Stuart, I 2009, ‘User/System Personnel Interface in Improving Information Systems Flexibility’, ANNAMALAI INTERNATIONAL JOURNAL OF BUSINESS STUDIES & RESEARCH, Vol. 1, pp.12-22(online EBSCOhost). Zhang, Y & Liu, X 2012, ‘A Service-Oriented Method for System-of- Systems Requirements Analysis and Architecture Design’, JOURNAL OF SOFTWARE, Vol. 7, pp. 358-366 (online EBSCOhost). Newman, M 2009, ‘Punctuated Process Modeling of Information Systems Development: An Illustration from a Mid-Sized Enterprise’, Communication of the association for information system, Vol.24, pp.673-700 (online EBSCOhost). Cragg, P, Caldeira, M & Ward,J 2011, ‘Organizational information systems competences in small and medium-sized Enterprises’, Information & Management, Vol.48, pp.353-363 (online EBSCOhost) Chen,D, Mocker, M, Preston, D.S, & Teubner, A 2010, ‘INFORMATION SYSTEMS STRATEGY: RECONCEPTUALIZATION, MEASUREMENT, AND IMPLICATIONS’, MIS Quarterly, vol.34, pp.233-259 (online EBSCOhost) Hemmatfar, M, Salehi,M & Bayat,M 2010, ‘Competitive Advantages and Strategic Information Systems’, International Journal of Business and Management, vol.5, pp.158-170 (online EBSCOhost) Poltrock,S & Handel,M 2010, ‘Models of Collaboration as the Foundation for Collaboration Technologies’, Journal of Management Information Systems, Vol.27, Pp.97-122 (online EBSCOhost) Marsden, J.R 2008, ‘The Internet and DSS: massive, real-time data availability is changing the DSS landscape’, Springer, Vol.6, pp.193-203 (online EBSCOhost)

Tale of Two Coaches

Running Head: Tale of Two Coaches and Leadership Tale of Two Coaches and Leadership Randal J. Reutzel Grand Canyon University: LDR – 600 October 27, 2011 Abstract Coaching and leadership seem to be synonymous with each other, in that if you’re a high caliber coach you must be a great leader, how else would you have achieved your success. While coaching in the NCAA division 1 basketball the goal is to win national championships, while also being a mentor to your students. Bobby Knight is a great basketball legend at Indiana, with a past of outrageous unacceptable behavior to the fans and to players, while also having one of the best collegiate records of all time. Coach Krzyzewski was also a great coach, was mentored by coach Knight and went on to be a legend at Duke. Coach K’s style of coaching was less dramatic and more heartfelt in his approach. Coach K’s was concerned for his player’s feelings and his style of motivating his players centered on less dramatizations on and off the court. Both Coaches were successful; one got into the heads of its players through coercive intimidation to be the best, the other through caring, talking and high levels of trust. Which coach is best depends on whom you ask and what perspective of coaching leadership style you prefer, or it could be a generational time difference or simply opposite styles that worked and produced results. Tale of Two Coaches and Leadership Leaders through time have on many occasions aligned their leadership styles to the great coaches either in the NFL or NBA. Does being a great coach and the techniques used by coaches translate into what leaders or managers should be leading employees by? Two great coaches with NCAA basketball championships, one mentored by the other, can have very different approaches and still get the results needed, winning seasons along with students who went on to great careers and have great respect for their mentors and coaches. Coach Bobby Knight led his teams through his relationship from a base of power. In the article from ESPN by Mike Puma, Knight was known for his tirades against players, referees and reporters as well as his brilliance to win games. Knight led his teams with complete control and nobody was second guessing his decisions, if they did it was with great conflict. He may have wanted to resolve the conflict but it was going to be on his terms. Knight led his teams with complete control from his position as the head of the team. He demanded certain expectations and rewarded this with play time or with sharp reprimands and punishment. His style was that of a managerial role, he demanded respect in that he held the position of power and he alone would be the master of activities and routines and this would influence players and the ultimate outcome. Northouse, 2010) Coach Knight led his teams with a history of demanding on others what he could not accomplish as a player. He developed a pattern of coercion that was demonstrated even off the court, by assaulting police during the Pan Am games or throwing chairs across courts. (Northouse, 2010) Coach Krzyzewski or â€Å"K† led his teams through his relations from a b ase of personal power, with no mistake he was the head coach. Coach K was mentored as a player and assistant coach for the military under Coach Bob Knight. Although Coach K went into the military, he was not of military mind, and this may have latter influenced his leadership traits. He dreamed of being a teacher not a military officer. (Bob Carter) What he learned from Knight was it took an unbelievable passion to be a leader, not Knights antics that put him into trouble more often than not. Coach K lead his teams and to championships through his role as a leader by inspiring and energizing the team, taking ownership in their actions. Grant Hill said coach K had a way of making people totally vested in the decision-making process, and that is what made him a great leader. Bob Carter) Traits of Coaching and Leadership Both coaches had specific traits that lead them to success, although one coach’s traits also lead to his demise while the other coach realized the passion needed and channeled his leadership spirit into more socially acceptable patterns. Coach Knight and Coach K were both intelligent and knew the intellectual struct ure of creating and leading great basketball teams. They demonstrated the ability to get talent and use that talent in different ways against different teams to win games and championships. Early in both coaches careers they knew what they wanted and what careers they wanted to pursue. To get to their end means of coaching they played the sport, learned from others and when through college level training. All of the training, and along the way making mistakes, they gained the confidence within themselves and gained self-esteem and self-assurance that they could make a difference. Coach Knight was given the opportunity through the army as a coach to demonstrate his style of leadership was the correct one. Coach K through the army was given the education, with his passion of basketball and mentoring from Coach Knight gained the self confidence to become what he wanted to be, a teacher and a coach. Determination for both coaches was that they wanted to be winners, leaders, and be a part of something great. Early in Coach Knight’s career even he stated that he only offered indentured servitude and unlimited practice. Early in Coach K’s career he was not an outstanding coach; others did believe in him and he gained self confidence with good players at Duke. Coach K again is quoted he learned from Knight the passion and amount of preparation it takes to be successful. (Bob Carter) Integrity is the ability of a leader to live and lead with some principles and take responsibility for their actions. The ability to possess integrity should build confidence in your team. Integrity is probably where the two coaches will separate their styles of leadership. Coach Knight through the years did several things to damage that integrity, through his actions in Panama or ways he degraded assistant coaches or lecturing teams with the use of props of soiled toilet paper. There were many times where his actions did not represent the role which he was given and he made little effort to change unless he was forced. Coach K built much of what he was on his integrity; he stuck up for his players many times. Once his team was graded by the student paper, it was the fact that the paper portrayed the players as instruments of entertainment and ego indulgence; this infuriated the coach, which he later apologized. What Coach K stood for was a caring, communication and trust within the team, and that was what he wanted for the whole student body, and why his fan base was so strong. The last important trait style of leadership is the ability for a leader to seek out good pleasant social relationships. The leader should be thought of as friendly, outgoing, courteous, tactful and diplomatic. Coach Knight, I believe, started out his career with these traits as he had to, through time, over confidence and ego caused him to lose most of these traits. People would say if you only know him like I do, but it was reported that he was known to be rude, defiant and hostile. (Bob Carter) Coach K on the other hand was exponentially known for his trait as having social leadership skills. He said you have to feel what your players feel in order to be a leader. A former player and now a coach Quin Snyder said that you give up ego to be a part of something special. (Bob Carter) Ego can and will get in the way of great social ability to lead a team and be a part of a team. Coach K has been and will be remember for his greatness, he possessed the most complete set of the 5 trait characteristics of a leader and it made him more accomplished and respected. Coach Knight lacked in the traits and his ego, temper, integrity came back to haunt him. He may be remembered more for his antics on and off the court than his record wins or development of players. The Three Skills of Coaching Success The three skills that are needed for success as a leader according to our reading from Robert Katz and Michael D. Mumford are Technical, Human and Conceptual. Through the levels of management different emphasis is required from each to be a great leader. In the situation of the coaches, they needed to possess top management skills where human and conceptual skills place more important than the technical aspects of the game of basketball. In the readings, both coaches knew the technical aspects of the game and surrounded themselves with knowledgeable assistances. Coach K’s emphasis was the human and conceptual aspects of his team and his responsibility to the school and its students. His kids needed to feel a part of something great and bigger than themselves and togetherness, this was demonstrated when coach K handed team phone numbers out and encouraged freshman to use them. (Mike Puma) Coach Knight demonstrated skills for the technical and conceptual skills; he had an ability to always figure out the best approach to win games against many different teams. Coach Knight is on record for being the youngest coach ever to win 600 games. He struggled with the ability to work with people that did not match his style or demands of doing exactly everything his way. He continually abused players and assistant coaches, while also getting in trouble in foreign countries. Leadership Grid Comparison The leadership grid from chapter 4, developed by Robert R. Blake and Jane S. Mouton, is basically a grid of different leadership styles with the two axis x – horizontal measure is based for results and y- vertical is based on concern for people. I believe from the reading that coach K and Knight developed strong leadership styles based on one premise for winning, or results. What they did was go about teaching and leading the teams differently to attain those results. Coach K moved his leadership style around as he needed to according to the needs of players or the team. Based on his style he concentrated his style in the middle of the road, trying to balance the need to get work done and the team needs, but he strongly styled his effort in the direction of team management by surrounding his team with committed members and built relationships of trust and respect. Coach Knight directed his leadership style more as an authority-compliance manager. He expected things to be done his way, and everyone around him to carter to his needs, whether that was good for personal development or not. The win, and only the win, was what needed to happen and he stepped and plowed through anyone and by any controversial tirade he had to get there. He even said in an interview that if you’re being raped to lay back and enjoy it. I believe this was his way of saying to the interviewer about his tantrums – which everyone just needed to put up with him. When he goes wild he wants to not be held responsible for his actions and for everyone to shut up. (Mike Puma) Contingency Model for Coaches The question presented: were both coaches matched to their situation based on the model developed by Fred Edward Fiedler described as the contingency mode? I think the answer is both yes and no. The styles of leadership in this model are described as being a task motivated or relationship motivated leadership. From the reading both coaches were winning coaches, they both used different approaches to get the results. In this model Coach K was high on leader-member, but with strong tasks, and did this without enforcing his positional power. Coach K did well with this leadership style at Duke University. Coach Knight was more task structured, the requirements were clear and spelled out and Knight controlled everything around him. When things got out of his control, people and team mates suffered and things did not go well for the coach. This goes against the model in some aspects in that if you’re out of control the task relationship should work out better for this type of leader, but there are flaws in the model. This works well for someone with specific tasks like fixing a part or cleaning a sink. In the situation of coach Knight it was more ambiguous in the tasks that needed to be accomplished. He could not deal with ambiguity and his temper showed as he took it out on other people and team members. (Northouse, 2010) Situational Leadership II The two coaches showed evidence from both readings that they practiced some level of situational leadership. Coach K demonstrated that he stood up for his players and they knew they could trust him. When he gave the ball to Laettner to stuff a basket in the final seconds to win a championship he knew he had the skills and would get the job done. He wanted to win for the team not for himself and even said once, did you see their faces and how happy they are. (Bob Carter) Coach K led his team by the skills that the team had; he did not change them, he developed them. Coach Knight, I believe, also led teams by development and using skills in the appropriate areas. He did it in a fashion of sheer work and drive to hone the skill in each person to exactly the perfection he wanted. When he did not get it or thought they were not giving enough, there were consequences for all around. Coach Knight was low on the supportive and directive behavior quadrant; I do not think he felt comfortable or confident to manage from that perspective. (Northouse, 2010) He excelled from the more comfortable leadership position S2 with only fringes of S1 or S3, unless they were extremely successful. Path-Goal Theory The path-goal theory of leadership is by understanding and leading people through enhancing performance and satisfaction and then focusing on what motivates them. For both coaches and for the entire player, the goal was to win games and that is what everyone wants. Both coaches had to go out and get potential players and those player and coaches began a dialogue on what both wanted and how they were going to achieve it. I believe that players that were coached by Knight knew his style and methods that he used to win games. Even today people say you don’t know him like we do, meaning his methods to them were acceptable. Likewise, Coach K went out to get players and they knew what he was like and his methods. The players chose to go with the perspective school and accepted them based on learned knowledge. Both coaches led their players in a fashion that was in an achievement-oriented style to reach their highest potential for the best outcome – winning games. The players with the desire of external locus of control probably liked Coach K style of leadership. The external locus of control the subordinate likes to feel more in control of their destiny and maybe take part in the decisions; this would be a part of something special with players and Coach K. Coach Knight was a dominate leader and coach, in control of everything – external locus of control players would believe more outside forces are in control. Directive leadership would be best for these types of players as they like the idea of someone taking control. Both teams coached by either Knight or Krzyzewski demonstrated the task characteristics as both coaches and players needed to be able to perform on the floor during a game with independence as things happen fast. Both coaches needed their teams to function on their own with a high degree of confidence. They would use the skills taught to them to win the game. References Northouse, P. (2010). Leadership: Theory and practice. Thousand Oaks, CA. Sage Publications Bob Carter, Krzyzewskiville, ESPN Classic. From: http://www. espn. go. com/classic/biography/s/Krzyzewski_Mike. html Mike Puma, Knight Known for titles, temper, ESPN Classic. From: http://espn. go. com/classic/biography/s/Knight_Bob. html

Imperialism and 1st World War Essay

The portrayal of the artists is indeed a true picture of the horrors of World War I which cannot be envisioned by just reading accounts of the war as given in different readings. The paintings reveal the disgusting events that will surely put the shivers into the generation of today in realizing the atrocities and soul stirring hardships that were experienced by all those who were part of the war. While the monarchy of the combating countries relaxed and simply gave orders it were the soldiers representing the states that bore the brunt of the chilling circumstances. Soldiers were silent observers in seeing their colleagues butchered in helplessness while they themselves were lucky to come back alive into their trenches unaware of what the next day had in store for them. The medical corps and nurses were always on the alert to receive the dead and grievously wounded soldiers while those who were captured had to submit to the inhuman tortures at the hands of their captors. Several soldiers were maimed in leading a life of revulsion, helpless in leading a life of misery. The onslaught of gas attacks made several soldiers to die in agony while many suffered psychologically in being unable to lead normal lives. The fear of gas attacks was so severe that soldiers had to always move with gas masks in specified territories. There was always a sinister plan underway and it became difficult for the combatants to judge about who friends are and whom to understand as enemies. There was always an ongoing process to build tunnels and infrastructure to face the challenges of enemy attacks in a war that never seemed to end. All who were physically fit could be expected to be called for war duties with little hope of returning alive. The war was extensively destructive as nothing was spared and all means were used to inflict the maximum damages irrespective of the intensity of suffering and loss to life. Human life appeared to have no value nor did the sufferings of the masses for the leaders who gave orders to fight with the sole objective of winning the war. The focus was on winning over the adversaries by whatever means that was possible in using weapons and other means that inflicted maximum loss and suffering. References Discussion, Imperialism and 1st World War, http://dl. bergen. edu/webct/entryPageIns. dowebct

Amnesty International Australia Essay Example | Topics and Well Written Essays - 1000 words

Amnesty International Australia - Essay Example Despite all efforts from the Dalai Lama, the Olympics 2008 in Being are the event that draws finally the attention to the problems of the occupation. The whole world is protesting right right now. And what Amnesty shows us explains why. Amnesty (2008): "According to information published by the Tibetan Center on Human Rights and Democracy, 15 Tibetan monks were detained on 10 March for staging a peaceful demonstration in Barkhor, Lhasa, the capital of Tibetan Autonomous Region in China. There is no information of their current whereabouts or of any charges brought against them. They are at high risk of torture and other ill- treatment." Besides this significant and important action there is also the important issue on the Human Rights situation in China. Amnesty (2008): " Expressing an opinion online in China can result in jail, torture and death. People are silenced and what happens in China is often clouded in secrecy. Sign up to take the pledge to stop the Chinese Government and l arge internet companies restricting freedom of expression on the Internet, and we'll keep you up-to-date with ways you can help create a more transparent society in China." You can directly participate in signing the form online.... and to express their peaceful beliefs online without fear or interference. I call on the Chinese Government and large internet companies to stop the unwarranted restriction of freedom of expression on the Internet." The pledge is typical, any person can participate in the actions of Amnesty. China is a powerful country in the World, the economic position has grown immense over the last years. Cheap labour, hardly any costs drives many companies to China to build factory's. China is important, it is number 4 of the list in fast growing Economics, important trading partner for many countries in the world including Australia. However in the part of human rights nothing changed at all. Till this very moment people still die or are prisonised. 10489 3 Shocking to read is this part Amnesty (2008) "By allowing Beijing to host the Games you will help in the development of human rights" Liu Jingmin, Vice- President of Beijing Olympic Bid Committee, April 2001 . What can be said after reading this Dit we miss something in the last couple of years or is China changing here and there Many questions we may ask ourselves. Amnesty remains however optimistic as we can read. Amnesty (2008) "The 2008 Beijing Olympics provides us with an unprecedented opportunity to help create a more transparent society in China. Freedom of expression is a universal human right, and Amnesty International believes the Games can be used as a positive step towards creating a society in China that upholds basic human rights. In Australia, our campaign will challenge the Chinese system of internet repression. We want to see freedom of expression in China. We would like citizens everywhere to have the same access to the

Boxing Term Paper Example | Topics and Well Written Essays - 1750 words

Boxing - Term Paper Example Consequently, the current research will elaborate the techniques and terms related to boxing by providing a detailed overview of the sport under-examination. Despite the very fact that playing of different sports and games has always been a popular social phenomenon since the known history of the world, boxing has particularly been being played for recreational purposes as well as for turning the bodies tougher and harder (Murray 2007, p. 4). Wigle has declared boxing to be the perfect tool for a young person to learn commitment, discipline, accountability; it also guides the adolescents and athletes the skill of playing as an individual as well as team member under the specific competitive environment (2011, p. 2). In addition, boxing also teaches the boxer regarding his relation with self, opponent, judges and environment (Wigle 2011, p. 2). In other terms, boxing helps the player how to interact with his social, physical and natural environment. Similarly, through boxing, one learns how to defend oneself from the attacks of the opponent on the one side, and how to obtain dominant position during the sport on the other (Edwards 2010, p p. 33-34). Haislet has defined the fundamental position of boxing, which is rightly viewed as the most favorable position that turns out to be supportive in respect of the mechanical execution of skills and techniques required in boxing (1968, p. 1). It is partly because of the fact that it provides the chances of quick reaction as well as complete relaxation to the muscles for the time being. In the same way, it also helps the boxer in developing hand-feet coordination during the play by keeping the body in balance (1968, p. 1). Since the primary aim of the boxing is hitting the opponent by maintaining one’s position and balance and escaping the hits of the opponent, fundamental position is highly admired in the boxing

Business Intelligence in the Company's Management Practices Essay - 1

Business Intelligence in the Company's Management Practices - Essay Example Whole Foods Market depends on organizational structure to ensure performance that would impact employees and customers.   Since January 2001 Whole Food Market has experienced an increase in sales, profits, and stock prices.   The success of the company has flourished from the hard work of team members and strong leadership throughout the company.  Ã‚  Whole Foods Market depends on organizational structure to ensure performance that would impact employees and customers.   Since January 2001 Whole Food Market has experienced an increase in sales, profits, and stock prices.   The success of the company has flourished from the hard work of team members and strong leadership throughout the company.  Ã‚   The Executive Team, also known as the E-Team, consists of the Ceo, Co-Ceo, Company President, Vice President of Growth and Development and the Financial Officer.   These five leaders work together to improve the company’s performance and production through decision ma king.   Unlike many companies, Whole Foods’ E-team discusses and debates their ideas until they all come together in agreement as a team.   In doing so, they are able to provide the company, customers and team members with the proper attention and performance needed. Co-CEO Walter Robb and Company President A.C. Gallo, are responsible for operating the company’s marketing process, purchasing products from suppliers and vendors, and distributing products to all twelve regions.     These twelve regions include the United Kingdom, Southern Pacific, Northern California, Pacific Northwest, Rocky Mountain, Southwest, Midwest, South, Florida Northeast, Mid Atlantic and North Atlantic.   Within these regions, there are over three hundred stores, five commissaries, nine distribution centers and over fifty-four thousand team members.     Robb and Gallo’s goal and commitment are to purchase and distribute from local vendor and suppliers quality products that will attract customers to shop at local Whole Foods stores.   When customers are satisfied with products this makes an impact on the company which in turn produces growth, productivity and prosperity. As the years continue to move forward, E-team will keep working together as a collaborative leadership team to influence and lead Whole Foods Market into remarkable growth and success.   Because of its well-developed structure, Whole Foods Market will continue to make a great impact on customers, employees and suppliers.

The power of non violence Essay Example | Topics and Well Written Essays - 750 words

The power of non violence - Essay Example Men are unique beings capable of moral reasoning. Due to this, people should strive to ensure that they use this capability to come up with solutions for problems which might arise. Violence is an extreme form of problem solving. Violence has led to destruction in the world with issues which could be solved in a respectable manner being solved by violent means. People should strive to ensure that violence is not used in any situation. Many people see violence as important in problem solving This is due to the notion that forcing people into compliance is the best and fastest method of getting someone to conform to a certain laws or regulations. Violence is also perceived to be the best way of fighting for a person’s rights. However, recent evidence has shown that non-aggression is the better way of fighting against oppression and for ones rights. These writings have changed my thinking in that it has led to me to believe that violence should not be the solution to solving any problems which may arise. Non-violence is a better means of solving problems that was overlooked by most people. Mahatma Gandhi was able to use nonviolence means to gain independence for the Indian people. Mahatma Gandhi popularised nonviolence as a way of solving problems. These writings show the importance of nonviolence as a way of coming up with solutions o common problems. Nonviolence is a way of fighting oppression which has been in for many years. A person who voluntarily agrees to suffer for a certain belief moves people around him. This leads to a change in heart where people begin to share the beliefs of the sufferer. People may even begin to feel attached to the sufferer Nonviolent means are steady and bound to attract more followers. This is similar to how the blood of the martyrs was the foundation of Christianity. (Richard Gregg, 1960, pg. 28) The writings mourn how people have become inconsiderate of each other. The writings show us that people are willing to live wit h the bad things in the society. This is as long as such negative effects do not touch on the lifestyle of the people. According to Emma Goldman, people are responsible for the problems they encounter. This is as most people are not ready to stand for what they believe is correct. Lack of ideals which guide a certain society leads to be prone to manipulation by external forces. The writers mourn the state with which people live and the neglect governments have on people. The writer shows this through several examples such as the one of the Italian weaver who killed the king. This story shows us of how an Italian weaver decided to go back home and kill the king as a result of the suffering he saw his people undergoing. (Goldman Emma 1917) The writings lament the fact that courts have been used as a tool for violence. When you look at the situation from the defendants view, you find the justice system to be violent. The legal system is designed to instil fear of consequences in the ge neral public. The writer mourns the legal system for being a tool for oppression of people in a given society. The legal system is used to intimidate people into following certain policies at the expense of other better policies. (Cover, 1986) The writers have used parables in their works. The use of parables is seen whereby the writers represent social evils with things which are easily accepted. In his second letter to his German friend, Albert Camus says that night is a time for meditation. By this the writer implies that solutions to problems come when the problem affects you the most. Parables are also used by the writers in showing how the people in the society have become effective in causing pain and suffering to one another. (Camus Albert 1943) These readings enable a person to think of the possibilities of making the world better for future generations that will live here. Fanon shows us that the fate of the world depends on all who live in it and not just leaders of diffe rent people in the soc

Charater in education Essay Example | Topics and Well Written Essays - 500 words

Charater in education - Essay Example Character education is mainly based on two premises. The first premise is that virtues are objectively the good human qualities and are good for humans whether they know them or not. Virtues have a claim on human’s personal as well as collective conscience. Basically, they are affirmed by religions and cultures around the world. In simpler terms, virtues express the common humanity of human beings. They transcend time and culture. Unselfishness, pursuit of truth, diligence, wisdom, perseverance and patience has always and will remain to be virtues, irrespective of the number of people practicing them (Lickona, 2004). Humans form beliefs that make it more likely for them to act virtuously in future. Beliefs are not only the mental states worth mentioning, but emotions and desires are also equally important for virtuous behavior. Just having a belief, for example to stop gossiping can leave somebody indifferent to actually behave in that way if he or she does not also care about these things. Therefore, for humans to become virtuous they have to form appropriate beliefs and cultivate the right emotions and desires. Right emotions and desires are the components that play a central role in having virtuous people (YouTube video, 2007). The very first set of beliefs basically has to do with the character of other people. However, people also beliefs about themselves such as believing that they are honest, they care about other people, and their spouses think that they care for other people or other people do not see them as lazy. The first two sets of beliefs are mainly about people’s own virtuous character. Labeling themselves in this way can have an effect on their virtuous behavior since they want to live up to how they believe in themselves to be moral people. On the other hand, the third and the fourth beliefs have to do with

Process Mapping Speech or Presentation Example | Topics and Well Written Essays - 1500 words

Process Mapping - Speech or Presentation Example The output to this process might be patient is referred to any specialist doctor or diagnosed or treated. The services or care for time, diagnosis, treatments have to be managed by the individual doctor (health care provider) for converting input into output. In the large care facility or hospital, the processes are quite different and integrated. The health care delivery process can be explicitly shown as model developed by Roth (1993) (fig1 Appendix). Process mapping developed by an engineer, Frank Gilbert in early 20th century has been frequently used in the field of engineering and other industries for the last five or six decades, it is only during the 1980s health care providers in the USA began to develop the process mapping/pathway tool in ‘Managed Care’. Scope and Objective of Process Mapping It is one of the most effective ways to understand the real issues from the patient’s perspective, and to recognize opportunities for improvement. Finally, the only person who experiences the whole journey is the patient. Process mapping helps perceive accurately in making decisions and understanding based on ground reality rather than the preconceived ideas of how the service works. The field of vision of the management in a medical condition or treatment is divided into a series of sequential events, for instance, activities, interventions, or personnel involvement. The series of these events between two stages (from admission to the critical care facility to release from the hospital room) can be viewed as a patient pathway or process of care. Changing and correcting measures of the process mapping/patient pathway involve immaculate coordinated application of multidisciplinary practices to boost medical efficacy and efficiency by excluding ineffective and unnecessary steps. The resulting data by process mapping can be used to redesign the patient pathway, improving the quality and efficiency of patient management. Reviewing the care process, patient pathway is highly recommended and beneficial that should include measures to improve patients’ satisfaction or quality or cost of a particular medical service. It is imperative to emphasize that process mapping is all about doing something better than previous attempts to really understand the patient’s experience at various steps of their journey, and there is no way to find fault with. Organizing a Process Mapping Activity A process mapping operation should be a gratifying and creative experience for involved personnel. It requires a planned and coordinated approach, as even the simple and straightforward patient journeys can be tortuous, with many entangled events. Elements in developing patient/process pathways can be depicted as follow: Choosing a clinical area to be considered for the exercise of care mapping: Selecting any important area of practice/activity should be the first stage to start with. Then every possible step should be structured by drafti ng the whole process pathway by having written record, drawing and diagram. Senior management and clinical staff must share and agree on the objective and scope. The strategic decision is imperative, which ensures that the whole team works towards a defined goal. To begin the process, it is desirable to have a team of four or five key persons, preferably, including someone with exposure or experience of lean thinking transformation with a plan for the project and its scope in place as envisaged in a flow diagram (fig2 Appendix). The required criteria in the selection of the personnel who would take part in the process mappin

Computer & application reseach paper Essay Example | Topics and Well Written Essays - 1000 words

Computer & application reseach paper - Essay Example These octopus cards can be recharged at a later stage in over the counter stores as well as through the facilitation of credit cards and not to forget the bank accounts as well. The historical significance of the octopus cards stems from the year 1979 when the MTR network put forward a system which brought different magnetic plastic cards into circulation. These cards were employed for single journey tickets and at times as stored value ones. The Kowloon Canton Railway Corporation made use of these magnetic cards in much the same way in the year 1984 and later on these were renamed as the Common Stored Value Tickets. The Octopus system was employed in the year 1997 after three trials had been done on it. Other transport services also made use of it in the coming times and in the year 2003; a major breakthrough was achieved when the Government of Hong Kong began using it. After this, there was the deployment of these octopus cards within the different faculties of the government which has remained like that to date. The usage of octopus cards is that they be purchased just about anywhere and for doing so, no identification process is deemed necessary. This suggests that the ease of usage is pretty much there so to speak. If the owner misplaces his/her octopus card then the stored value within the octopus card is lost and the anonymous basis of the octopus card makes it so much more easy to use as there is not a bit of personal information or bank account and similar details on the octopus card itself. The use of the octopus card has increased with the passage of time and nearly all forms of purchases with Hong Kong are taking place courtesy the octopus cards. The application of the octopus cards can be studied from the fact that they do not require any form of physical contact with the octopus card readers and can be easily read within a distance of a few centimeters. There are the

Describe the main theoretical models of child abuse Essay Example for Free

Describe the main theoretical models of child abuse Essay Medical model, sociological model, psychological model, feminist model and contextual model are all theories relating to abuse. Although there are many different types of child abuse and many different reasons why it may occur, most cases have been wilted down to fit into one of the five main theories named above.  Medical mode is when the reason for abused is classed as a disease or an illness. Kempe and Kempe were the inspiration for this theory when they described it as battered child syndrome which was linked to Bowlbys theory on attachment. Bowlby came to the conclusion that children who failed to form this bond with their mother in the first three years of the childs life would have problems in later life bonding with people and trusting people. He also described a child with a lack of bonding to be an affectionless psychopath, which he described to be someone who shows lack of guilt when done something wrong has difficulties showing emotion to things around them or someone with behaviour problems. Another affect of not having an attachment in this critical period as it was also known in Bowlbys eyes was development retardation which meant the child may grow up with learning difficulties or slower intellectual skills. So if the main caregiver failed to have a strong bond when they were young then they may find it difficult to form a bond with the child. It is a vicious cycle that goes round and round. This type of abuse is shown in the case study in some ways. This is because the mother of the children had failed to form a bond with her mother, and there for she is struggling to form a bond with her children. Will these children grow up failing to form a bond or a strong relationship with their children because of this? Bowlby would have described Kerry, the mother as an affectionless psychopath. Sociological model is all about the environment that the child is being brought up in and around. Areas of social deprivation are often linked with abuse which has been proven in some research that has been carried out. Children need to be safe and grow up in healthy environments for them to get a good start in life and grow up healthy. Some people react to how they were treated when they were growing up. In other words if a child is abused or neglected then there is a higher chance that when they grow up they will forward this behaviour on to the children in their care. This is because this is what they are used to and they may think that it is normal was to treat children if they have seen no different. Another reason may be they feel that they have to suffer through it all and so should their children. It is not always this case however, some abused children grown up with the determination to treat the children with the love and kindness that they never received themselves. The case study states that the children are living in a high rise block of flats with faulty wiring, damp, and a lack of hygiene. The children are constantly around alcohol, drugs and known criminals. This is definitely not an appropriate environment for the children to be around and this is why I feel it fits in to this area of abuse.  Psychological model is based around the family and its relationship status. It involves one particular member of the family being scapegoated by the rest of the family and getting the blame for all the problems that arise in the family. This type of abuse can be linked with the case study because the older child Katie gets blamed for a lot of the things that go wrong in the flat especially linked with her brother. Her brother is only a baby and if he cries then Katie gets in to trouble. She is given the responsibility to take care of the baby even though she is only 3 years old herself.  The theory described as the feminist model is about the different sexes and the power and force in which the male figure has. This theory links mainly with sexual abuse.

Women Entrepreneurship in India Essay Example for Free

Women Entrepreneurship in India Essay Women are generally perceived as home makers with little to do with economy or commerce. But this picture is changing. In Modern India, more and more women are taking up entrepreneurial activity especially in medium and small scale enterprises. Even as women are receiving education, they face the prospect of unemployment. In this background, self employment is regarded as a cure to generate income . The Planning commission as well as the Indian government recognizes the need for women to be part of the mainstream of economic development. Women entrepreneurship is seen as an effective strategy to solve the problems of rural and urban poverty. Traditionally, women in India have been generally found in low productive sectors such as agriculture and household activities. Human Development Report 2004 ranks India 103 in Gender related Development Index (GDI). As per 2001 census; women constitute nearly half of India’s population. Out of this total, 72% were engaged in agriculture, 21. 7% in other non agricultural pursuits with only 6. % in household industries. Women entrepreneurs in India are handicapped in the matter of organizing and running businesses on account of their generally low levels of skills and for want of support system. The transition from homemaker to sophisticated business woman is not that easy. But the trend is changing. Women across India are showing an interest to be economically independent. Women are coming forth to the business arena with ideas to start small and medium enterprises. They are willing to be inspired by role models- the experience of other women in the business arena. The role of women entrepreneurs is especially relevant in the situation of large scale unemployment that the country faces. The modern large scale industry cannot absorb much of labour as it is capital intensive. The small scale industry plays an important role absorbing around 80% of the employment. The myth that women cannot engage in productive employment needs to be dispelled. They can be encouraged to set up small and medium scale industries on their own initiative. Entrepreneurship development for women is an important factor in economic development of India. Rural women can be encouraged to start cottage industries. Rural based micro enterprises have been encouraged by the government by various schemes-such as Integrated Rural Development Program (IRDP), Training of Rural Youth for Self Employment (TRYSEM), and Development of Women and Children in Rural Areas (DWCRA). The aim is to remove poverty through entrepreneurial programs. An ILO report on women entrepreneurship identifies the following problems faced by women entrepreneurs. 1. Lack of family support- Sometimes the family may make the women feel guilty of neglecting household duties in her pursuit of business obligations. Cultural traditions may hold back a woman from venturing into her own business. 2. Lack of capital-traditional sources of finance like banks are reluctant to lend to women entrepreneurs especially if they do not have any male or family backing.  This is especially true of lower income females. Women do not have adequate finance or legal knowledge to start an enterprise. 3. Lack of confidence and faith-lack of role models undermines the self confidence of women entrepreneurs. The activity of selling is considered abhorrent to the female gender. 4. Lack of right public/ private institutions: Most public and private incentives are misused and do not reach the woman unless s he is backed by a man. Also many trade associations like ministries, chambers of commerce do not cater to women expecting women’s organizations to do the necessary thing. The government must evolve appropriate policies to help women entrepreneurs. Networking facilities must be provided as well as adequate entrepreneurship awareness training should be provided using the help of local NGOs. Credit facilities must be made available and marketing help must be provided. All these will help foster a culture of entrepreneurship among women in India.

Government Bond Market in Nigeria

Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an Government Bond Market in Nigeria Government Bond Market in Nigeria CHAPTER 1 Background Finance plays an increasingly important role in economic growth and development of nations around the world. These roles are in many different forms, they include but not limited to channelling savings towards investment. The level of sophistication of a financial system is important and to a large extent determines the overall level of overall growth and development of that economy. The financial system contributes to economic growth performance through several mechanisms and channels à ¢Ã¢â€š ¬Ã¢â‚¬Å" mobilising savings, allocating funds to their most productive uses, monitoring productive uses i.e. investments, transferring and sharing risk (see World Bank (2001)). In modern economies, disruptions in the flow of credit from the financial system to businesses within the economy are detrimental to economic growth and can lead to a general slowdown in the level economic activities. This in turn can lead to unemployment; drop in consumer spending, consumer and industrial economic con fidence levels and ultimately a general slowdown in the economy. Capital account liberalisation in many countries and increasing levels of regional integration and globalisation add an international dimension to the flow of investments and capital around the world. These have made the transfer of funds and investment easy and accessible from one country to another. Investments and capital can be transferred around the world with fewer restrictions as barriers are being removed due to increasing impact of globalization. Since the start of the global financial crisis in 2008, the focus has increasingly been on the roles of the banking sector and the capital market in most economies. The global financial crisis caused a massive flight to safety with investor divesting from currencies, equities markets and other risky assets to the sovereign bond markets which are perceived as safe haven. Investor in major economies divested from perceived risky assets to markets where their investments are relatively safe and guaranteed. This shows one of the significance of sovereign bond market as an investment option for investors in times of crisis and how it can help to minimize the occurrence of such crisis. According to Arteta (2005), there have been many banking crises over the years in many developing countries which were very costly due to the fact that they tend to obstruct the free operations of financial intermediaries, affecting industries and the real economy. Crises can block the normal flow of credit and loans from banks to firms. The dominance of bank intermediation and the general underdevelopment of capital markets (especially the bond markets) in many developing countries aggravate the susceptibility of the real economy to episodes of banking problems. It follows that having additional sources of domestic external finance would allow firms to better withstand episodes of financial distress. By allowing firms to raise funds issuing debt securities, the existence of deep and liquid domestic capital markets would complement the availability of bank finance. By patronising this capital market option, firms would also help to deepen and broaden the market. Well diversified financial systems would lead to more efficient allocation of resources especially capital, where firms can issue bonds in domestic markets. This would enable the firms to ease maturity mismatches in their balance sheets. Thus, bond markets would lessen the effect of waning bank credit flows on firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financing requests during periods of banking crises. Bond market has major importance in any economy but more so in emerging economy where savings and investment opportunities are inadequate. Financial sector development (more importantly for capital market) begins with the development of a sovereign bond market in many emerging economies. This is common, not only because governments are mostly the biggest domestic borrowers with the best credit ratings but also because of how their actions and inactions affect the overall level of economic development. There have been significant changes politically, economically and socially in many developing economies particularly in Africa. The financial crises of 1997-1998 (in Asia and Russia) have pointed out how vulnerable economies are when over dependent on foreign capital or banking system (Fabella and Madhur, 2003). In many emerging economies in Africa, recently there have been changes in organizational and regulatory framework of capital markets. These countries are re-strategizing in order to broaden their capital market and investors base as well as tap into the new sources of funding such as bond markets. (Brownridge, 1998). Currently, the domestic bond markets in most African economies where they exist are narrow and largely undeveloped compared to the banking system and the equity market. There are many rationales for developing a domestic bond market especially for emerging economies. First, developing a bond market will help the government to finance fiscal deficits which was done previously by forcing local banks to hold government paper, usually to meet demanding reserve and liquidity requirements. Secondly, according to Frankel (1993) in the absence of a bond market it would be difficult to sterilize large long-term capital inflows for infrastructural development. This was a difficult challenge for several central banks during the early 1990s when they had only short-term debt instruments. Sterilization that relies entirely on issuing short-term securities tends to drive up short-term interest rates while bond issuance help to minimise this risk. Thirdly, to generate a yield curve which could serve as a benchmark for investors and borrowers in the financial markets. This enables the market participants to derive the market interest rate that reflect the opportunity cost of fund at each maturity. Also, Sokoler (2002), bond market increases the competitiveness and efficiency of the financial system, which might have been dominated by few banks before the introduction of bond market. However, the effectiveness of the bond market as an alternative source of financing depends essentially on there not being a high co-movement between bank lending, bond and equity financing in a domestic setting, and the absence of contagion in the international capital markets more importantly for countries with open accounts. Bond market debt financing is necessary for developmental projects and infrastructures like electricity generation, transmission and distribution, the fuel energy sector, transportation, telecommunication, etc. 1.2 Purpose of the Study The goal is to provide a detailed review of the progress and prospects for the development of the government bond market in Nigeria with a view to identifying how the market can be broadened and deepened from both the demand and supply sides. The supply side includes the issuers of debt securities like federal government, sub-sovereigns and corporations. The demand side of the market is made up of institutional investors like banks, pension fund administrators, foreign investors, hedge funds and high net worth individuals as well as retail investors. The paper would also examine how the issuers on the supply side can take advantage of the relatively cheap sources of funding in the market against conventional funding methods as well as how the creation of alternative investment options would affect the demand side. Also, the roles and impacts of financial intermediators who facilitate the smooth operations of the market, and the perceived benefits for them (especially primary dealers) would be examined and finally the benefits for the Nigerian economy should the market be further deepened and broaden. Research Method In an attempt to provide an in-depth, objective and balanced perspective on the development of the Nigeria bond market, this project write-up draws conclusions from the various research papers and information supplied by other authors on the development on bond markets in other emerging market economies. The main factors behind the recent development of the Nigerian bond market would be explained in details by analysing information and statistics on the market. This involves the analysis of major macro-economic changes in Nigeria, pension reform, changes in debt management strategies, consolidation exercise in the banking industry etc. Statistical information provided in the dissertation have not been tested and are quoted verbatim. Outline of the Dissertation An outline of the remaining chapters is presented below: Chapter 2 reviews relevant literature on the development of bond markets especially the importance which establishes the foundation of the dissertation. The chapter also considers the main factors, trends and forces that have contributed to the development of bond market in other emerging market countries with an in-depth look at Asian and Russian markets. Chapter 3 takes a detailed look at the timeline of bond market development in Nigeria, structure, regulatory framework, regulators, the main drivers behind the growth of the market as well as the make-up of the demand and supply sides.. Chapter 4 seeks to identify and adapt the lesson in other parts of the world and concludes with the recommendations for broadening and further development of the Nigerian bond market. Chapter 5 will again highlights the importance of the study; it concludes with an overview of the recent developments in the Nigeria bond market and considers the new challenges that would emerge going forward. Chapter Two Literature Review on the development of the bond market. 2.1 Introduction This chapter reviews the literature on domestic bond market development in several emerging economies. From this review critical success factors that are prerequisite to the development of the domestic bond market will be determined. Information has been gathered by reviewing reports from government agencies, investment analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ reports, reports by the World Bank, the International Monetary Fund, African Development Bank, Asian Development Bank, Bank for International Settlement, the Emerging Markets Committee of the International Organization of Securities Commission and other bond market associations and debt management agencies. 2.2 The Development of bond markets in Emerging Markets This section examines the challenges and issues concerning domestic bond market development in many emerging markets as well as prerequisites for an efficient, broad and deep domestic bond market. There are several factors to consider. First, the financial crisis that happened between 1997-1998 reminded most policy makers around the world of the over-reliance of many emerging market economies on their respective domestic banking systems as a source of funding. Secondly, information on bond markets in emerging markets especially in sub-Saharan Africa is not readily available when compared to other developed markets or even other domestic market segments notably the equity market. 2.3 Rationale for developing a domestic bond market After the Asian and Russian financial crises of 1997-1998 many researchers have advocated for the development of domestic bond market as an alternative source of financing not only in the crisis-hit countries but for all emerging market economies where obvious shortcomings are prevalent. The following is a summary of the major arguments put forward: an alternative source of domestic debt finance fiscal deficit financing broadening and deepening of capital markets efficient risks pricing aids smooth operation of monetary policy etc. 2.3.1 An alternative source of domestic debt finance Witherell (2003) argued that bond markets reduce the over-dependence on bank credit for debt financing and that these markets also reduce the susceptibility of the economy to the risk of banking system failure. Banking crisis can have negative and adverse effects on the economy as a whole because firms and industries would find themselves credit constrained and be forced to jettison new investment spending, leading to a drop in aggregate demand through the multiplier effect. Harewood (2000) also opined that deep and efficient bond market enable firms to gain access to an alternative source of debt financing which could help banks in times of crisis to recapitalise through securitization by issuing bonds backed by non-performing loans. 2.3.2 Fiscal deficit financing Khalid (2007) argued that the benefits of developing domestic bond markets are both macroeconomic and microeconomic in nature. Within the macroeconomic perspective, the primary importance of the government bond market is to provide a channel for the financing of fiscal deficits. This is arguably the most important benefit for emerging market economies with historically large fiscal deficits and the failure of other possible sources of financing the fiscal deficits which are compelling governments to borrow from domestic markets. In addition, several countries both developed and developing have faced the need to finance very large extraordinary and unusual expenditure which are of long-term nature. The finance required for bank restructuring and long-term support for industries have been one recent example in many emerging markets. 2.3.3 Lower cost of borrowing IOSCO (2002) identified that governments and firms can enjoy lower cost of debt capital in the bank markets compared to high charges and rates offered on bank loans. This is achieved through the process of bank disintermediation which allows direct access to investors, thus removing the à ¢Ã¢â€š ¬Ã…“middlemanà ¢Ã¢â€š ¬? and related costs. Also, the issuer may tailor its asset and liability profile to minimise the risk of currency and maturity mismatch thus reducing the weighted cost of capital. 2.3.4 Broadening the capital market Debt market development helps to diversify the capital markets, reducing over-dependence on banks and susceptibility within the banking system which is positive for the entire economy at large. The bond market has provided avenues for financial engineering and innovations which have broaden the financial system in general (Akhtar 2007). A well-functioning bond market provides with investment options across a wider range of instruments including sovereign, sub-sovereign, corporate bonds and securitized obligations such as mortgage backed securities and collaterized debt obligations. The wide range of investment alternatives allows investors to make optimal asset allocation decisions. This is particularly important for investor like life insurance companies and pension fund administrators because the bond market facilitates better management of the maturity structure of their balance sheets. 2.3.5 Efficient pricing of credit risks Bond markets create cost-effective and competitive capital markets by generating market yield and interest rates that reflect the opportunity cost of capital at each tenor and maturity. This is necessary for efficient and financing decisions. Herring and Chatusripitak (2000) further stated that without a developed bond market, firms and investors would lack a clear measure of opportunity cost of funds. This may lead to mispricing of funds as was evident in late 1990s in many dynamic Asian economies suggesting that the internal discount rate may have often been too low because returns on investment fell sharply. IOSCO (2002) suggests banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ interest rates are not always competitively determined so may not always reflect the true opportunity cost of funds. This is because big banks could always agree to fix rates. 2.3.6 Aids smooth operation of monetary policy The debt market is increasingly more important for the operation of monetary policy. Monetary policy now relies not only on a well functioning money market but also increasingly on indirect instruments of control like the bond market. Moreover, yields in the long-term bond market show expectations of likely macroeconomic developments and about market reactions to monetary policy moves by market regulators. 2.3.7 Promotion of financial stability The bond market provides an alternative source of funding to equity and banking financing, this alternative source enhances the stability of the financial market as a whole and efficient allocation of credit. This was evident after the Asian financial crisis the weak banking sector provided an impetus to the development of bond markets in several emerging markets. By diversifying funding sources, firms can adjust their borrowing between the banks and the debt markets (Hameed, 2007). IOSCO (2002) added that where there is no corporate bond market, a significant ratio of debt funding for corporations would come from the banking sector. By doing this, banks would assume a considerable amount of risk mainly due to the maturity mismatch between liquid short-term liabilities (deposits) and relatively long-term assets (loans). Banks cannot transfer credit risk to depositors. Herring and Chatusripitak (2000) concluded that in emerging markets where few banks dominate and account for bulk of lending activity, there is a concentration of credit risk with the banking sector. This leads to an increasing level of systemic risk in an economy. In summary, the existence of a well-functioning bond market ensures that risks are efficiently diversified within the financial system. 2.3.8 Sterilization of large capital inflows Frankel (1993), for any economy to grow and develop there is a need to sterilise large capital inflows. This was a particularly difficult challenge and difficult for several central banks in emerging economies during the first half of the 1990s. In the absence of well developed bond markets, the central bank has only short-term debt instruments at its disposal in conducting open market operations and raise fund for governments to finance developmental projects. Sterilisation that relies exclusively on issuing paper tends to drive up short-term interest rate and crowding-out effect. This risks biasing the structure of inflows towards the short end. Sterilisation through the sale of bonds reduces such risk. 2.4 Basic prerequisites for successful development of government debt markets The development of bond markets must be seen as a continuous, progressive and dynamic process in which macroeconomic and political stability are necessary to building an efficient market. Also, the credibility of the government as an issuer of debt securities must be established. World Bank (2001) noted that à ¢Ã¢â€š ¬Ã…“the prerequisites for establishing an efficient and deep government domestic currency debt market include a credible and stable government, sound fiscal and monetary policies, effective legal, tax and regulatory infrastructure, smooth and secure settlement arrangements, and a liberalised financial system with competing intermediaries. Where these basics are lacking or very weak, priority should be given to adopting and implementing stable and credible macroeconomic policy framework, reforming and liberalising in different areasà ¢Ã¢â€š ¬?. All these factors point to the creation of an enabling environment. Domestic as well as foreign investors will be unwilling to purchase government securities, especially medium- and long-term instruments when there are expectations of high inflation, large devaluations, or high risks of default like Greece recently. It is important that governments work toward macroeconomic policy framework that promotes credible commitment to prudent and sustainable fiscal policies and stable monetary conditions. Such actions will cut government funding costs over the medium to long term, as the risk premium embedded in rates and yields on government securities drop. Inflationary expectations will have impact on longer-term nominal government securities yields and affect not only government borrowing costs, but also, in countries with unstable monetary and fiscal environment, the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to extend the yield curve beyond very short maturities. Thus a credible commitment from government to contain inflation is crucial for government securities market development. The ability to attract foreign investors to a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debt market is to a large extent determined by the exchange rate and capital account policies of the country. Foreign investors have a major role to play in the development of government debt markets and in hastening development of the necessary infrastructure by injecting new competition into otherwise dull markets. Foreign investors will compare the yield on domestic debt with those of international markets. They will consider the default risk and the risk of exchange rate volatility. Exchange rate, capital account policies when combined with monetary and fiscal policies can affect each of these risks, and inappropriate policies can result in increased interest rate and exchange rate volatility. Such volatility impedes development of government securities issues with long maturities and can harm secondary market liquidity when there are no derivatives or complementary markets that investors can use to hedge ag ainst the risk of price movements. The soundness of the banking system also has important implications for development of the government debt market. Investor concerns about the health and soundness of the banking system will negatively affect the ability of the government to roll over or issue new debt. Furthermore, lack of financially healthy intermediaries will cause secondary market illiquidity and inefficiency. A banking system in crisis will further impede development of a government debt market and cause significant liquidity shortages. This is because important associated markets such as those for interbank and repurchase agreement transactions are unlikely to function properly. Although the challenges involved in providing the necessary macroeconomic and financial framework are enormous, these should not deter authorities. This is because the potential benefits to the government and the economy are considerable. In its role as both regulator and primary issuer, the government is a central player in the debt market. The central bank, in implementing monetary policy, will also influence market structure and inevitably market development. Given the involvement of several government agencies and entities in the process of market development, they should interact with the private sector and other market participants as this may be a useful tool to spearhead market development efforts. Harwood (2000) adds that à ¢Ã¢â€š ¬Ã…“Market participants need to evaluate the critical success factors to determine which ones constrain their marketà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth and how to deal with them. Market development will be accelerated if regulators who are interested in market development work closely with market participants to identify problems and solutions with other regulators to persuade them to address problems and solutions and with other regulators to persuade them to address problems under their control.à ¢Ã¢â€š ¬? Although, there is no one size fits all framework to build a market, emerging markets should try to learn from one anotherà ¢Ã¢â€š ¬Ã¢â€ž ¢s experiences for guidance on how to develop from à ¢Ã¢â€š ¬Ã…“emergingà ¢Ã¢â€š ¬? to à ¢Ã¢â€š ¬Ã…“emergedà ¢Ã¢â€š ¬? and on what works best in what type of environment. Harwood (2000) concludes that participation in the market cannot be forced, but it can be encouraged by an enabling environment. It can also be discouraged by à ¢Ã¢â€š ¬Ã…“unablingà ¢Ã¢â€š ¬? environment. 2.5 Government securities issuance strategy and market access The process of debt issuance is an important factor in debt market development. For the market to develop, transparency and credibility of the process must be built although they take time. A market-oriented government funding strategy is an essential foundation for the growth and development of a debt market. The strategy involves the adherence to basic market principles of broad market access and transparency, a commitment to finance budget deficits through the market, and a proactive and continuous approach in developing the necessary regulatory framework to support market development. World Bank (2001,a), à ¢Ã¢â€š ¬Ã…“governments need to improve market access and transparency by providing high-quality information about debt structure, funding needs and debt management strategies to market participants and public at large. They must solicit investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ views on the current strategy and plans for change. In this way, the government will better understand the source of demand for its instruments and have the ability to act to remove barriers obstructing investment in them.à ¢Ã¢â€š ¬? World Bank (2001,b) further states that à ¢Ã¢â€š ¬Ã…“a sound and prudent debt management operation is also central to the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s credibility as an issuerà ¢Ã¢â€š ¬?. Having clear debt management objectives, proper coordination between debt management objectives, prudent risk management and effective institutional frameworks are essential components of sound debt management. As part of developing and maintaining a well-functioning government securities market, authorities will have to provide clear and timely information about the structure and nature of fiscal deficits and public debt as well as other Treasury operations. The information also include but not limited to amortization schedule, issuing calendar, description of outstanding securities, schedule for buybacks or re-openings where relevant, and Treasury cash balances. 2.6 Government securities instruments and yield curve One of the essential benefits of a well-functioning government securities market is to develop a set of benchmark securities. By concentrating new issues of government securities in a relatively limited number of popular, standard maturities, governments can reduce their issuing cost and boost liquidity in those maturities. Markets, in turn, can use those liquid issues as convenient benchmarks for the pricing of a range of other financial instruments. In addition, spreading the relatively few benchmark issues across a fairly wide range of maturities and tenors is generally regarded as building a à ¢Ã¢â€š ¬Ã…“benchmark yield curveà ¢Ã¢â€š ¬?. This can help to facilitate more accurate market pricing of financial instruments across a similar maturity spectrum. 2.7 Investor base for government securities Governments in many emerging market relied on captive sources of funding whereby financial institutions are required to purchase and hold government securities, often at below-market interest rates. However, this system of raising funds is fast diminishing in many of these countries. Instead, countries are developing a diversified investor base for their government securities. Investors in developed government debt market can range from small-scale retail investor to and foreign institutional investors. A diversified investor base for debt securities is necessary to high liquidity, stable demand and reasonable spread in the market. A heterogeneous investor base with different background, time horizons, expectations, risk preferences, and trading motives ensures active trading, creating high liquidity. 2.7.1 Commercial and Investment Banks Commercial and investment banks serve as both sales agentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ usually primary dealers and investors in government securities in many developing economies. Banks provide valuable source of demand and liquidity for government securities market by providing two-way quotes for other investors 2.7.2 Contractual savings sector This group consist of life insurance companies and pension fund administrators contractual. This sector is a major player in the fixed income securities markets, as it provides a stable source of long-term demand. This is because of the long-term nature of funds that the sector controls. The sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s demand for fixed-interest, low-credit-risk products also provides an important basis on which to develop standardized, securitized products such as mortgage bonds. Pension funds and life insurance companies are usually required to invest a large portion of their assets in so-called gilt-edged assets. This has helped to make this sector prominent in the government securities market. 2.7.3 Collective investment funds Collective investment funds, such as mutual and hedge funds, unit trust scheme etc can play an important role in the development of the government securities market, especially the shorter-term segments of the market because of the nature of funds that they manage. They offer retail and other investor alternative investment option other than investing in bank products. This helps to induce more competition in this part of the financial sector, and can be a cost-effective way for the government to reach retail investors. These collective investment funds that are established domestically or offshore help to deepen the securities market and should be allowed participate actively in the market.. 2.7.4 Retail investors Retail investors are a source of stable demand to the government securities market which could be crucial in times of high volatility. Demand from retail investors can help to cushion the impact of sales by institutional and foreign investors. In order to develop a diversified investor base for government securities the needs of retail investors should be incorporated into the overall strategy of market development. 2.7.5 Foreign investors Foreign investors are important source of demand and innovation to national capital markets, including government securities markets. They have received much attention in both mature markets and developing countries because of issues like regulation, capital flight, entry and exit barriers, etc. They have contributed positively to the development of government securities market in several countries through the positive pressure they place on the quality and services of intermediaries and their emphasis on sound, safe and robust market infrastructure. Foreign investors could be in many forms like emerging markets funds, such as some hedge funds and other specialized closed and open-end country or emerging-market funds. They also include crossover investors, such as pension funds and insurance companies not as dedicated to investing in a particular region or even country, and other more specialized investors like distressed asset funds, private capital fund etc. 2.8 Other bond markets 2.8.1 Introduction Various studies have been carried on bond market development in different parts of the world. For example Batten and Fetherston (2003) for Asian economies, Sylla (2001), World Bank and International Monetary Fund (2001), etc. BIS (2002) also reviews the experience of many emerging economies in the development of debt markets. The review shows to varying degrees the three main factors that delayed the development of bond market in most emerging economies namely: a bank-centered financial system, opaque corporate governance and borrowing in low interest rate currencies. This section will look at the experience of other bond markets both developed and developing; draw reasonable lessons on how emerging markets can deepen and broaden their domestic markets and increase efficiency. 2.8.2 Bond market development in Asia Murphy, Auster and Dean (2007) note that on July 2, 1997 the Thai baht devalued against the US dollar, the first in a series of collapses that have collectively become known as the Asian financial crisis. The crisis had many causes which highlighted the need to have effectively functioning domestic capital markets. The crisis showed the apparent risk of the absence of diversification with the over-dependence on short maturities, banks an