Entering its 6th year, the IFN 2011 Issuers & Investors Asia Forum,(previously known as the Malaysian Islamic Finance Forum) has emerged as the industry’s leading and largest annual event.
Europe can learn and gain from Islamic finance, given that financial institutions under it, have remained stable against the backdrop of the eurozone debt crisis.
Luxembourg's Minister of Finance, Luc Frieden, in a keynote address at the IFN 2011 Issuers & Investors Asia Forum noted that despite the credit crunch that has impacted Europe's banks, Islamic financial institutions had weathered the global crisis and emerged to be the most well managed.
"Therefore, we can learn a lot from Islamic finance and from Asia, as we have much in common.
"The key elements in Islamic finance that we need in the world today, particularly in Europe, are stability, financial partnership, provision of excessive risk and speculation as well as ethical principles," he added.
He said in Islamic finance, the financial relationship between the lender and borrower, had assured the "partnership mentality", which was found to lead to certain stability.
Explaining the need to avoid excessive risk taking place, Frieden said this is among the key goals of Europe and is an important feature found in Islamic finance.
"The provision against speculation and gambling which is prohibited in Islamic finance, is what we can concentrate on," he added.
He also said the element of ethical principles should not be limited to the Islamic finance industry alone. Frieden gave an assurance that Europe would find a solution to the debt-crisis that had led to volatility in the global economy.
"There's no one easy solution and one meeting can't solve the crisis. We have embarked on a step-by-step process to solve the problems.
"We will find a solution to the Greek issue. The Euro will be a currency you can count on in the future and see growth," he said.
He said Asia and Europe must join forces for the development and prosperity of the global economy.
"Therefore, Asian investors should look at Europe for trade and investment purposes, going forward," he added. Link the star
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Thursday, October 20, 2011
Sunday, October 02, 2011
Another "Black Swan" Approaching
According to a forecast from the Economic Cycle Research Institute(ECRI) as reported on CNN Money the US economy is heading for another double dip recession. "It's either just begun, or it's right in front of us," said Lakshman Achuthan, the managing director of ECRI. "But at this point that's a detail. The critical news is there's no turning back. We are going to have a new recession."
This new crisis comes just three years after the global financial and economic crisis. As opposed to the 2008 crisis that started in the US with the collapse of Lehman Brothers, this time Europe is at the centre of the crisis- the Euro Zone in particular has rocked the financial markets because their sovereign debt crisis.
Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said he’s more concerned about prospects for the U.S. than Europe because the country lacks awareness of its fiscal woes.
“The difference between Europe and the U.S. is the consciousness of the problem,” Taleb, a New York University professor, said at a news conference in Tokyo organized by Bank of America Corp. “There’s no consciousness in the U.S.” about the fiscal deficit, he said.
Global financial-market turmoil intensified this quarter as Europe’s sovereign debt crisis deepened and the U.S. economy showed signs of slowing. Standard & Poor’s cut the U.S.’s credit rating for the first time in August, criticizing lawmakers for failing to cut spending or raise revenue enough to reduce record budget shortfalls.
Demonstrations have been taking place in Greece, Spain and Portugal against austerity measures and joblessness since early this year. Now the Wall Street of the US has also been hit by the waves of protest- the protesting issues include the 2008 bank bailouts, and high unemployment. Wall Street protesters carried posters which read “Protesters have rights defend 'Occupy Wall Street'” and chanted slogans including, "Stand up. Fight back," "We got sold out. Banks got bailed out" and "We are the 99 percent."
The term “Black Swan,” popularized by Mr. Taleb refers to a statement of impossibility, or to an event so unlikely that it defies comprehension.
In the past decade, there are quite a few examples of financial “Black Swan” events. Among them are the housing bubble and sub-prime mortgage crisis that derailed the banking system, the demise of Lehman Brothers in 2008, the BP oil spill and the Dow Jones flash crash, which had the Dow reeling with a 1000 point move on May 6, 2010.
Since events of these magnitudes are all previously unheard of in history, their repercussions ripple for years to come.
Now we need to heed to the warning that another Black Swan is unfolding.
As Nassim Nicholas Taleb,the author of The Black Swan wrote:
“We have never lived before under the threat of a global collapse. The financial ecology is swelling into gigantic, incestuous, bureaucratic banks — when one fails, they all fall. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur . . . I shiver at the thought.”
America's laissez-fare ideology of capitalism practised during the subprime crisis and the European state welfare model that has gone so wrong in Greece are under pressure to redefine and create a new social compact. Capitalism is the system that has created the extraordinary wealth and enabled the modern development of the western civilisation. But the free market has also created the biggest wealth gap between the rich and poor. If states have to intervene to bail out banks deemed too-big-to-fail and save countries from bankruptcy as in the case of Greece, then a new balance between the state and market is needed.
Q&A: Greek debt crisis. link
Late -2000s financial crisis. wikepedia
This new crisis comes just three years after the global financial and economic crisis. As opposed to the 2008 crisis that started in the US with the collapse of Lehman Brothers, this time Europe is at the centre of the crisis- the Euro Zone in particular has rocked the financial markets because their sovereign debt crisis.
Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said he’s more concerned about prospects for the U.S. than Europe because the country lacks awareness of its fiscal woes.
“The difference between Europe and the U.S. is the consciousness of the problem,” Taleb, a New York University professor, said at a news conference in Tokyo organized by Bank of America Corp. “There’s no consciousness in the U.S.” about the fiscal deficit, he said.
Global financial-market turmoil intensified this quarter as Europe’s sovereign debt crisis deepened and the U.S. economy showed signs of slowing. Standard & Poor’s cut the U.S.’s credit rating for the first time in August, criticizing lawmakers for failing to cut spending or raise revenue enough to reduce record budget shortfalls.
Demonstrations have been taking place in Greece, Spain and Portugal against austerity measures and joblessness since early this year. Now the Wall Street of the US has also been hit by the waves of protest- the protesting issues include the 2008 bank bailouts, and high unemployment. Wall Street protesters carried posters which read “Protesters have rights defend 'Occupy Wall Street'” and chanted slogans including, "Stand up. Fight back," "We got sold out. Banks got bailed out" and "We are the 99 percent."
The term “Black Swan,” popularized by Mr. Taleb refers to a statement of impossibility, or to an event so unlikely that it defies comprehension.
In the past decade, there are quite a few examples of financial “Black Swan” events. Among them are the housing bubble and sub-prime mortgage crisis that derailed the banking system, the demise of Lehman Brothers in 2008, the BP oil spill and the Dow Jones flash crash, which had the Dow reeling with a 1000 point move on May 6, 2010.
Since events of these magnitudes are all previously unheard of in history, their repercussions ripple for years to come.
Now we need to heed to the warning that another Black Swan is unfolding.
As Nassim Nicholas Taleb,the author of The Black Swan wrote:
“We have never lived before under the threat of a global collapse. The financial ecology is swelling into gigantic, incestuous, bureaucratic banks — when one fails, they all fall. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur . . . I shiver at the thought.”
America's laissez-fare ideology of capitalism practised during the subprime crisis and the European state welfare model that has gone so wrong in Greece are under pressure to redefine and create a new social compact. Capitalism is the system that has created the extraordinary wealth and enabled the modern development of the western civilisation. But the free market has also created the biggest wealth gap between the rich and poor. If states have to intervene to bail out banks deemed too-big-to-fail and save countries from bankruptcy as in the case of Greece, then a new balance between the state and market is needed.
Q&A: Greek debt crisis. link
Late -2000s financial crisis. wikepedia
Sunday, September 25, 2011
Cartoon Network aims to create growth in Arabic
In Oct 2010, the American children's channel Cartoon Network launched a Cartoon Network Arabic channel- a free-to-air children's channel hoping to reach 35 million homes in the Middle East and North Africa. The free alternative to the subscription based Cartoon-Network is operated by the Turner Broadcasting offices in Dubai.
The world's first Cartoon Network Academy(CNA) in Abu Dhabi has now rolled out its inaugral batch of 12 graduates. The Academy is central to the development of local talent needed for the animation industry. The animation and gaming industry still in its nascent stage is one of the fastest growing industry in the region.
Turner’s ambition to expand the network in the Middle East and invest in local talent is necessary in order to grow the business. The diversity of the spoken Arabic dilects across the region poses challenges and creates opportunities for the animation industry.
According to a statement from Turner, Cartoon Network is available in 22 languages, across 27 separate feeds, in 166 countries and in 248 million homes worldwide.
This is not the first time that an American children' s TV show has been traslated to Arabic. Thirty years ago a local version of Sesame Street was braodcasted.
The world's first Cartoon Network Academy(CNA) in Abu Dhabi has now rolled out its inaugral batch of 12 graduates. The Academy is central to the development of local talent needed for the animation industry. The animation and gaming industry still in its nascent stage is one of the fastest growing industry in the region.
Turner’s ambition to expand the network in the Middle East and invest in local talent is necessary in order to grow the business. The diversity of the spoken Arabic dilects across the region poses challenges and creates opportunities for the animation industry.
According to a statement from Turner, Cartoon Network is available in 22 languages, across 27 separate feeds, in 166 countries and in 248 million homes worldwide.
This is not the first time that an American children' s TV show has been traslated to Arabic. Thirty years ago a local version of Sesame Street was braodcasted.
Tuesday, September 13, 2011
CIMA's Islamic Finance Certificate
Bait al-Mashura, a specialised company in providing Islamic finance consultations, has been authorised by Chartered Institute of Management Accountants (CIMA) to hold exams and grant certificates in Islamic finance. Bait al-Mashura managing director and CEO Dr Osama Q al-Derae’i said certificates of CIMA are based on self-paced study and distance learning principle.
More of this article on Gulf Times.
The 'CIMA Certificate in Islamic Finance' was officially launched in December 2007 in the UK and Bahrain, followed by Malaysia and Singapore in 2008.
Islamic finance is a trillion dollar industry and has become part of the global financial system. Educating financial professionals on Islamic finance has become a business priority for many countries, given that the Islamic finance industry is growing at an estimated 15-20 per cent annually.
More of this article on Gulf Times.
The 'CIMA Certificate in Islamic Finance' was officially launched in December 2007 in the UK and Bahrain, followed by Malaysia and Singapore in 2008.
Islamic finance is a trillion dollar industry and has become part of the global financial system. Educating financial professionals on Islamic finance has become a business priority for many countries, given that the Islamic finance industry is growing at an estimated 15-20 per cent annually.
Thursday, September 08, 2011
Islamic Banking in Nigeria Fraught with Problems
Nigeria has become a battleground for Islamic finance, further dividing Africa's most populated country. Nigeria is one of the world's largest oil producers. The country has a history of bitter civil wars fought on ethnic and religious lines.
Nigeria, the seventh most populous country in the world has some 70 million Muslims. In order to capitalize on the growing popularity of one of the world's fastest-growing financial sectors, the Central Bank of Nigeria has introduced Islamic banking into the country.
CNN's Christian Purefoy discussed the sector's potential with Hajara Adeola, managing director of Lotus Capital, one of the groups helping to pave the way for Islamic finance in Nigeria.
Adeola says there is a growing appetite for this form of banking.
"It is working in Nigeria and there is a lot of interest in doing Islamic banking, in West Africa in particular," she says.
Spread across the Middle East and other parts of the world, a slew of Islamic financial institutions have been offering interest-free services that advocates say can provide a more sustainable alternative to conventional banking practices.
The industry, which exists in more than 50 countries, is estimated to be worth around $1 trillion and has the potential to eventually be worth $5 trillion, according to ratings agency Moody's. The full article.
Nigeria, the seventh most populous country in the world has some 70 million Muslims. In order to capitalize on the growing popularity of one of the world's fastest-growing financial sectors, the Central Bank of Nigeria has introduced Islamic banking into the country.
CNN's Christian Purefoy discussed the sector's potential with Hajara Adeola, managing director of Lotus Capital, one of the groups helping to pave the way for Islamic finance in Nigeria.
Adeola says there is a growing appetite for this form of banking.
"It is working in Nigeria and there is a lot of interest in doing Islamic banking, in West Africa in particular," she says.
Spread across the Middle East and other parts of the world, a slew of Islamic financial institutions have been offering interest-free services that advocates say can provide a more sustainable alternative to conventional banking practices.
The industry, which exists in more than 50 countries, is estimated to be worth around $1 trillion and has the potential to eventually be worth $5 trillion, according to ratings agency Moody's. The full article.
Monday, September 05, 2011
Amazon's Start Up Challenge goes Global
Amazon Web Services (AWS), an amazon.com company, is aiming to become a billion-dollar-a-year business. It is a startup revolution . As Amazon CTO Werner Vogels said, with AWS all you need is an idea, a credit card and a dream. Amazon holds an annual contest, the AWS Start-Up Challenge, to realise this philosophy.
The AWS Start-up Challenge launched in 2007 is back, sweeping across the planet. Fifteen regional prizes (five each from the Americas, Asia Pacific and Europe/Middle East/Africa) and one global grand prize to be awarded to start-ups with the most innovative businesses built in the AWS cloud. The global grand prize winner will be awarded with $50,000 in cash and $50,000 in AWS credits
Amazon is focused not just on the silicon valley but it wants to reach the global hotbeds to find 'the next big thing.'
The AWS Start-up Challenge launched in 2007 is back, sweeping across the planet. Fifteen regional prizes (five each from the Americas, Asia Pacific and Europe/Middle East/Africa) and one global grand prize to be awarded to start-ups with the most innovative businesses built in the AWS cloud. The global grand prize winner will be awarded with $50,000 in cash and $50,000 in AWS credits
Amazon is focused not just on the silicon valley but it wants to reach the global hotbeds to find 'the next big thing.'
Sunday, August 14, 2011
An Economic Storm Ahead
That's the warning given by World Bank chief Robert Zoellick about the global economy on Saturday in Australia.
Zoellick said the eurozone's sovereign debt issues were more troubling than the "medium and long-term" problems which saw the United States downgraded by Standard and Poor's last week, sending global markets into panic.
"We are in the early moments of a new and different storm, it's not the same as 2008," said Zoellick, referring to the global financial crisis.
More of this article here.
Zoellick said the eurozone's sovereign debt issues were more troubling than the "medium and long-term" problems which saw the United States downgraded by Standard and Poor's last week, sending global markets into panic.
"We are in the early moments of a new and different storm, it's not the same as 2008," said Zoellick, referring to the global financial crisis.
More of this article here.
Sunday, August 07, 2011
Sri Lanka's first Islamic bank: Amana Bank
Amãna Bank, Sri Lanka’s first licensed commercial bank to operate fully under the principles of Islamic banking, opened for business last week.
Amãna Bank will be offering a range of financial products and services including Current Accounts, Savings Accounts, Children’s Savings Account, Term Investment Accounts, Home Financing, SME Banking, Corporate Banking, Trade Services and Treasury Services.
Link: Sunday Times
Amãna Bank will be offering a range of financial products and services including Current Accounts, Savings Accounts, Children’s Savings Account, Term Investment Accounts, Home Financing, SME Banking, Corporate Banking, Trade Services and Treasury Services.
Link: Sunday Times
Sunday, January 30, 2011
Fixing the Greed of Capitalism
Unfettered greed arising out of the free market capitalistic system is at its worst as we have seen in recent times. Bernie Madoff, a former chairman of the US NASDAQ stock market operated the biggest PONZI scheme, the biggest investment scandal in history. He has swindled thousands of investors of US$ 65 billion. On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed under the US law.
The 2008 United States financial crisis led to global financial meltdown which evoked fears of another Great Depression like in the 1930s. In this most recent financial crisis that started in the the US, Investment banks and commercial banks lent trillions of dollars for housing purchases to borrowers ill-equipped to repay when the housing prices crashed. There was no 'invisible hand' espoused by Adam Smith to maintain a fair and just order in the market. The driving force of the present free market model - at least in the US is Milton Friedman's theory that business corporations are only to make profit and greed is part of the equation.
With the emerging economies of China, India and Brazil fast catching up with the developed world, there is growing pressure for a new economic world order. Can the Western liberal free market capitalism co-exist with the economic styles of the emerging economies?
Below is an interesting discussion in Davos 2011, on the future of the Business Enterprise. Now we are going back to the roots of business that Adam Smith would have envisaged. Once again business leaders have raised the issue- social responsibility of business corporations is critical to rein in the corporate greed. Business needs to create more than just one value-i.e.,profit for the shareholders.
The new mantra for developing countries that need the assistance of the world financial institutions like the IMF seems to be: public/private sector partnership.
The 2008 United States financial crisis led to global financial meltdown which evoked fears of another Great Depression like in the 1930s. In this most recent financial crisis that started in the the US, Investment banks and commercial banks lent trillions of dollars for housing purchases to borrowers ill-equipped to repay when the housing prices crashed. There was no 'invisible hand' espoused by Adam Smith to maintain a fair and just order in the market. The driving force of the present free market model - at least in the US is Milton Friedman's theory that business corporations are only to make profit and greed is part of the equation.
With the emerging economies of China, India and Brazil fast catching up with the developed world, there is growing pressure for a new economic world order. Can the Western liberal free market capitalism co-exist with the economic styles of the emerging economies?
Below is an interesting discussion in Davos 2011, on the future of the Business Enterprise. Now we are going back to the roots of business that Adam Smith would have envisaged. Once again business leaders have raised the issue- social responsibility of business corporations is critical to rein in the corporate greed. Business needs to create more than just one value-i.e.,profit for the shareholders.
The new mantra for developing countries that need the assistance of the world financial institutions like the IMF seems to be: public/private sector partnership.
Saturday, February 20, 2010
Tiger Woods Played By Different Rules
In the USA, the celebrity-obsessed culture is constantly fed by the mass news media which permeates to far reaching corners of the globe setting trends for the rest of the world to follow this repulsive obsession. The Tiger Woods apology posted on his website has proven yet again that the rich and powerful do have an advantage over the rest of the population- infidelity in relationships included among others.
"I knew my actions were wrong, but I convinced myself that normal rules didn't apply," Woods admitted talking about his numerous sexual indiscretions and reckless behaviour. “I thought I could get away with whatever I wanted to. I felt that I had worked hard my entire life and deserved to enjoy all the temptations around me. I felt I was entitled. Thanks to money and fame, I didn’t have to go far to find them. I was wrong. I was foolish. I don’t get to play by different rules.”
Tiger Woods has made history on and off the golf course since he joined the PGA Tour in 1996. First up was a record $40 million contract from Nike. The following year he won the Masters by a record 12 strokes, becoming the youngest winner ever and first black player to take the title. His career has been packed full of accomplishments, including major titles (14), annual money titles (9) and Player of the Year awards (9). Woods is also the first athlete to earn $1 billion.
Tiger Woods is now a billion dollar brand. In his carefully scripted self-loathing apology, it is not surprising that Woods also apologized to his business partners.
Behavior expert and physician Drew Pinsky who has co-authored the book "The Mirror Effect: How Celebrity Narcissism Is Seducing America" has given a very interesting take on the cultural influence of celebrity narcissism; a culture whose young emulate the behavior of celebrity models.
In answer to a question in an interview, "What do you mean by the "mirror effect," and why do you say it's a problem?"- Drew says:
"I've been working with celebrities many, many years. I've treated many for chemical dependency and the like. They have profound childhood trauma. It's not something to do with their job or the life they lead. They just happen to be people driven to seek celebrity as a way to make themselves feel better. Then the question becomes, why are we preoccupied with this population? This points toward the mirror. We, too, have been increasingly narcissistic. I speculate that that's what drives us toward this phenomenon of elevating people to almost god-like status. It's not so much that it's the glamour we like focusing on — rather it's the dysfunction. We're taking someone who needs to be a god and making them a god. Then we spend all our energy tearing them down."
Celebrity narcissism, the term narcissism meaning that a person is totally absorbed in self sets a bad example for kids who view these celebrities as role models.
Cricket Star Adam Gilchrist who was nominated as the Australian of the Year has hit out at the obsession with instant celebrities who are famous only for being on YouTube.
Gilchrist urged the nation to embrace role models of substance.
The chairman of the Australia Day Council said only people who showed sustained effort over many years to make Australia a better place should be put on a pedestal.
Gilchrist told a gala dinner at Parliament House, marking the 50th anniversary of the Australian of the Year award, that celebrity worship was a worry.
"As our obsession with celebrity continues to grow, renown seems to come these days, for some at least, on the back of a few minutes of outrageous behaviour or a funny clip on YouTube," he said.
In the very tightly controlled stage set where Tiger Woods addressed his scandal for the first time, he has also demonstrated how skilled he is at dodging and ducking personal questions. Even though he said that he does not get to play by different rules, by his refusal to take any questions from reporters he has contradicted himself and confirmed that indeed he plays by different rules.
"I knew my actions were wrong, but I convinced myself that normal rules didn't apply," Woods admitted talking about his numerous sexual indiscretions and reckless behaviour. “I thought I could get away with whatever I wanted to. I felt that I had worked hard my entire life and deserved to enjoy all the temptations around me. I felt I was entitled. Thanks to money and fame, I didn’t have to go far to find them. I was wrong. I was foolish. I don’t get to play by different rules.”
Tiger Woods has made history on and off the golf course since he joined the PGA Tour in 1996. First up was a record $40 million contract from Nike. The following year he won the Masters by a record 12 strokes, becoming the youngest winner ever and first black player to take the title. His career has been packed full of accomplishments, including major titles (14), annual money titles (9) and Player of the Year awards (9). Woods is also the first athlete to earn $1 billion.
Tiger Woods is now a billion dollar brand. In his carefully scripted self-loathing apology, it is not surprising that Woods also apologized to his business partners.
Behavior expert and physician Drew Pinsky who has co-authored the book "The Mirror Effect: How Celebrity Narcissism Is Seducing America" has given a very interesting take on the cultural influence of celebrity narcissism; a culture whose young emulate the behavior of celebrity models.
In answer to a question in an interview, "What do you mean by the "mirror effect," and why do you say it's a problem?"- Drew says:
"I've been working with celebrities many, many years. I've treated many for chemical dependency and the like. They have profound childhood trauma. It's not something to do with their job or the life they lead. They just happen to be people driven to seek celebrity as a way to make themselves feel better. Then the question becomes, why are we preoccupied with this population? This points toward the mirror. We, too, have been increasingly narcissistic. I speculate that that's what drives us toward this phenomenon of elevating people to almost god-like status. It's not so much that it's the glamour we like focusing on — rather it's the dysfunction. We're taking someone who needs to be a god and making them a god. Then we spend all our energy tearing them down."
Celebrity narcissism, the term narcissism meaning that a person is totally absorbed in self sets a bad example for kids who view these celebrities as role models.
Cricket Star Adam Gilchrist who was nominated as the Australian of the Year has hit out at the obsession with instant celebrities who are famous only for being on YouTube.
Gilchrist urged the nation to embrace role models of substance.
The chairman of the Australia Day Council said only people who showed sustained effort over many years to make Australia a better place should be put on a pedestal.
Gilchrist told a gala dinner at Parliament House, marking the 50th anniversary of the Australian of the Year award, that celebrity worship was a worry.
"As our obsession with celebrity continues to grow, renown seems to come these days, for some at least, on the back of a few minutes of outrageous behaviour or a funny clip on YouTube," he said.
In the very tightly controlled stage set where Tiger Woods addressed his scandal for the first time, he has also demonstrated how skilled he is at dodging and ducking personal questions. Even though he said that he does not get to play by different rules, by his refusal to take any questions from reporters he has contradicted himself and confirmed that indeed he plays by different rules.
Thursday, January 07, 2010
Takaful or Islamic Insurance pays off
As reported in Business Times Malaysia Wednesday, HSBC Amanah Takaful (Malaysia) Sdn Bhd, the Islamic insurance arm of HSBC Bank Malaysia Bhd, saw its regular premium collections double in the last six months, after shifting to traditional insurance products from single premium investment-linked plans. Chief executive officer Zainuddin Ishak said the move had allowed the takaful operator to collect RM30 million in regular premiums in a six-month period compared with RM15 million in the preceding six months.
This news comes on the heels of the recent announcement about the imminent relocation of Mukhtar Hussain, the global head of HSBC Amanah, the Islamic banking division of the HSBC Group, to Kuala Lumpur, the Malaysian capital, raising the question whether the Malaysian capital is set to become the headquarters for HSBC’s Islamic finance business? Hussain has hitherto been located in Dubai, the traditional global headquarters of HSBC Amanah.
Hussain will be the CEO of HSBC Malaysia Berhad in addition to being the global head of HSBC Amanah Bank and the chairman of HSBC Amanah Malaysia.
This is a recognition by the HSBC Group that the Malaysia International Islamic Financial Centre (MIFC) is one of the major hubs for Islamic finance and that Malaysia is an important promoter of islamic finance.
The principles of takaful, or Islamic insurance are:
1)Policyholders cooperate among themselves for their common good.
2)Every policyholder pays his subscription to help those that need assistance.
3)Losses are divided and liabilities spread according to the community pooling system.
4)Uncertainty is eliminated in respect of subscription and compensation.
5)It does not derive advantage at the cost of others.
Monday, December 14, 2009
Climate Talks stalled due to lack of Trust
China, India and other developing nations blocked U.N. climate talks on Monday, bringing negotiations to a halt with their demand that rich countries discuss much deeper cuts in their greenhouse gas emissions.
Representatives from developing countries — a bloc of 135 nations — said they refused to participate in any working groups at the 192-nation summit until the issue was resolved.
The move was a setback for the Copenhagen talks, which were already faltering over long-running disputes between rich and poor nations over emissions cuts and financing for developing countries to deal with climate change.
More on this article of AP.
A group of US Republican lawmakers have banded together and they are going to arrive Copenhagen to try to block President Barack Obama's efforts to push for mandatory reductions in greenhouse gases.
Representatives from developing countries — a bloc of 135 nations — said they refused to participate in any working groups at the 192-nation summit until the issue was resolved.
The move was a setback for the Copenhagen talks, which were already faltering over long-running disputes between rich and poor nations over emissions cuts and financing for developing countries to deal with climate change.
More on this article of AP.
A group of US Republican lawmakers have banded together and they are going to arrive Copenhagen to try to block President Barack Obama's efforts to push for mandatory reductions in greenhouse gases.
Saturday, December 05, 2009
Blatter's 'moral compensation' to the Irish
FIFA president Sepp Blatter said Thursday that he wants to offer a special award for Ireland- a 'moral compensation' after Ireland lost a World Cup spot to France when a handball from the French captain Thierry Henry led to a decisive goal.
On the day Blatter announced that World Cup teams will receive at least $9 million for taking part in the competition, he insisted that a monetary reward would not be appropriate to pay the Irish.
The Irish never asked for a financial compensation or even a moral compensation. They wanted a place in the world cup contest. To talk about a moral compensation in the world cup dominated by powerful forces of sponsorship and big money just like any other big business that is bereft of morality is really a farce.
Earlier in the week Blatter urged players and coaches to "observe fair play", calling on them to understand that doing the right thing on the pitch has "social and cultural value" and commanding them to "be an example to the rest of the world".
This call for honour came just days after he revealed that Thierry Henry wasn’t to blame for his cheating which cost Ireland a place at the World Cup finals.
Blatter also revealed that he telephoned the France captain to offer him support “because he tried to get in touch with me.”
Blatter added: "He was honest by admitting that he did use his hand, but it wasn't his responsibility to tell the referee. In the specific case of the Henry handball, the referee should have taken the time to reflect rather than immediately awarding the goal."
Thierry Henery admitted to the hand ball only after the match was over. If Thierry Henry was so honest, he should have told the referee who did not see the hand ball before the match was over. Then the goal would not have stood and Ireland had the chance to go to the world cup.
It is difficult to understand Blatter's intellectual reasoning. What kind of a message does this controversy send considering the fairplay and honesty that Blatter talked about?
On the day Blatter announced that World Cup teams will receive at least $9 million for taking part in the competition, he insisted that a monetary reward would not be appropriate to pay the Irish.
The Irish never asked for a financial compensation or even a moral compensation. They wanted a place in the world cup contest. To talk about a moral compensation in the world cup dominated by powerful forces of sponsorship and big money just like any other big business that is bereft of morality is really a farce.
Earlier in the week Blatter urged players and coaches to "observe fair play", calling on them to understand that doing the right thing on the pitch has "social and cultural value" and commanding them to "be an example to the rest of the world".
This call for honour came just days after he revealed that Thierry Henry wasn’t to blame for his cheating which cost Ireland a place at the World Cup finals.
Blatter also revealed that he telephoned the France captain to offer him support “because he tried to get in touch with me.”
Blatter added: "He was honest by admitting that he did use his hand, but it wasn't his responsibility to tell the referee. In the specific case of the Henry handball, the referee should have taken the time to reflect rather than immediately awarding the goal."
Thierry Henery admitted to the hand ball only after the match was over. If Thierry Henry was so honest, he should have told the referee who did not see the hand ball before the match was over. Then the goal would not have stood and Ireland had the chance to go to the world cup.
It is difficult to understand Blatter's intellectual reasoning. What kind of a message does this controversy send considering the fairplay and honesty that Blatter talked about?
Sunday, November 29, 2009
Dubai as finance hub faces first test
Dubai's ambitions to become an international financial centre are in doubt after the shock announcement that its main state-owned firm wants to suspend debt payments, analysts said on Sunday.
"What happens next and, more pertinently, how critical decisions are disclosed will cement its continuing credibility and its place as a financial centre," said Cubillas Ding, senior analyst at Celent research and consultancy group.
"Dubai's untested financial legal system is now facing its first real test in relation to how it deals with the international community. No one wants to play in a playground where the rules are unclear," he said.
Dubai International Financial Centre, a 110-acre (44.5 hectare) free trade zone which opened in 2004, prides itself on its website as "the world's fastest growing international financial centre."
More on this AFP article.
"What happens next and, more pertinently, how critical decisions are disclosed will cement its continuing credibility and its place as a financial centre," said Cubillas Ding, senior analyst at Celent research and consultancy group.
"Dubai's untested financial legal system is now facing its first real test in relation to how it deals with the international community. No one wants to play in a playground where the rules are unclear," he said.
Dubai International Financial Centre, a 110-acre (44.5 hectare) free trade zone which opened in 2004, prides itself on its website as "the world's fastest growing international financial centre."
More on this AFP article.
Thursday, November 26, 2009
Tuesday, November 24, 2009
Better citizens--not politicians--can solve our nation's problems. Thomas Friedman
Tom Friedman Explains Causes Of America's 'Sub-Optimal Solutions' (VIDEO) in The Huffington Post, it reads : New York Times columnist Thomas L. Friedman is worried that America is producing "sub-optimal solutions" to big problems like global warming, an education system in decline and a weak economy.
The author of Hot, Flat, and Crowded appeared on The Charlie Rose Show on Friday night to discuss President Obama's recent trip to Asia, and more specifically China. Friedman lamented the failure of US governance and the "forces of paralysis" that surround President Obama. He is worried that China's streamlined, one-party system will be in a better place to implement solutions to large global problems more quickly than the US.
Holding us back, Friedman argues, is a political system too closely connected with money and well-funded interests. Gerrymandering on the part of politicians makes it so that our leaders practically pick us, not the other way around. Friedman also thinks cable news television distorts the truth and that the internet (at its worst) can be a terrible thing for our nation's politics. He also says American businesses have gone AWOL, and hover over America, participating only when it suits their industry's needs.
Friedman says that better citizens--not politicians--can solve our nation's problems.
The author of Hot, Flat, and Crowded appeared on The Charlie Rose Show on Friday night to discuss President Obama's recent trip to Asia, and more specifically China. Friedman lamented the failure of US governance and the "forces of paralysis" that surround President Obama. He is worried that China's streamlined, one-party system will be in a better place to implement solutions to large global problems more quickly than the US.
Holding us back, Friedman argues, is a political system too closely connected with money and well-funded interests. Gerrymandering on the part of politicians makes it so that our leaders practically pick us, not the other way around. Friedman also thinks cable news television distorts the truth and that the internet (at its worst) can be a terrible thing for our nation's politics. He also says American businesses have gone AWOL, and hover over America, participating only when it suits their industry's needs.
Friedman says that better citizens--not politicians--can solve our nation's problems.
Friday, November 20, 2009
A Victory by Cheating in the Beautiful Game
One of Europe's leading football players, French superstar Thierry Henry who has a good reputation for fair play- up to the "Hand of God II" incident - has confessed he cheated to rob Irish of a World Cup place. The France striker used his hand twice to control the ball before crossing for William Gallas to head home in extra-time during their World Cup play-off on Thursday.
This incident is reminiscent of Diego Maradona's infamous Hand of God goal when Maradona scored the winning goal to defeat England in a 1986 World Cup quarterfinal match.
Thierry Henry has tarnished his reputation for good. Argentina's Diego Maradona an icon of football in the 70s and 80s, despite his talent is considered one of the sports most controversial figures for various reasons including his use of drugs. Thierry Henry is one of the finest strikers of today's game twice nominated for the FIFA World Player of the Year, was named the Profeesional Football Association Players' Player of the Year twice, and the Football Writers' Association Footballer of the Year three times.
Thierry Henry has missed an opportunity to set a higher standard by admitting to the referee that he had handled the ball. The goal would not have stood and he would have earned the admiration of the entire sporting world. But he didn’t do it. He knew that he had done wrong, but he put his team's interest ahead of doing what was right. Now he has shattered his squeaky-clean image as an ambassador for football.
From what we see on the football pitch- players diving for penalties, dangerous fouls to hand balls- and off the pitch from the violence that show the ugly side of the game, it is clear generally that the beautiful game no longer exists. World Cup Football has become the world's biggest sports spectacle driven by the money and power of big business, sponsorships and merchandising. The pressure to win at all costs has killed the beautiful game.
Even Brazil known to play the beautiful game have abandoned their open and flowing style of the game to adopt the more physical style of the game played in Europe.
Tele Santana, one of Brazil's greatest coaches who led Brazil at the 1982 and 1986 World Cups and guided Sao Paulo to two successive wins in the Libertadores Cup in the early 1990s is reported to have said: "I'd rather lose the game than tell my team to foul, kick the opponents or win with an illegitimate goal. "
Santana was widely respected for his sense of fair play and his refusal to use rough-arm tactics.
The qualities that the late Santana espoused seems to have been confined to history.
This incident is reminiscent of Diego Maradona's infamous Hand of God goal when Maradona scored the winning goal to defeat England in a 1986 World Cup quarterfinal match.
Thierry Henry has tarnished his reputation for good. Argentina's Diego Maradona an icon of football in the 70s and 80s, despite his talent is considered one of the sports most controversial figures for various reasons including his use of drugs. Thierry Henry is one of the finest strikers of today's game twice nominated for the FIFA World Player of the Year, was named the Profeesional Football Association Players' Player of the Year twice, and the Football Writers' Association Footballer of the Year three times.
Thierry Henry has missed an opportunity to set a higher standard by admitting to the referee that he had handled the ball. The goal would not have stood and he would have earned the admiration of the entire sporting world. But he didn’t do it. He knew that he had done wrong, but he put his team's interest ahead of doing what was right. Now he has shattered his squeaky-clean image as an ambassador for football.
From what we see on the football pitch- players diving for penalties, dangerous fouls to hand balls- and off the pitch from the violence that show the ugly side of the game, it is clear generally that the beautiful game no longer exists. World Cup Football has become the world's biggest sports spectacle driven by the money and power of big business, sponsorships and merchandising. The pressure to win at all costs has killed the beautiful game.
Even Brazil known to play the beautiful game have abandoned their open and flowing style of the game to adopt the more physical style of the game played in Europe.
Tele Santana, one of Brazil's greatest coaches who led Brazil at the 1982 and 1986 World Cups and guided Sao Paulo to two successive wins in the Libertadores Cup in the early 1990s is reported to have said: "I'd rather lose the game than tell my team to foul, kick the opponents or win with an illegitimate goal. "
Santana was widely respected for his sense of fair play and his refusal to use rough-arm tactics.
The qualities that the late Santana espoused seems to have been confined to history.
Friday, November 13, 2009
Nov 13 - World Kindness Day
According to the World Kindness Movement, "The purpose of World Kindness Day is to look beyond ourselves, beyond the boundaries of our country, beyond our culture, our race, our religion; and realise we are citizens of the world. As world citizens we have a commonality, and must realise that if progress is to be made in human relations and endeavours, if we are to achieve the goal of peaceful coexistence, we must focus on what we have in common. "
Countries that celebrate the World Kindness Day this year include Canada, Japan, Australia, India, Scotland, Nigeria ,United Arab Emirates and Singapore. The Singapore Kindness Movement celebrating the World Kindness Day for the first time is distributing 45,000 yellow daisies meant to motivate the public to show appreciation for acts of kindness.
People like to feel recognised and appreciated. Saying 'thank you' has become a competitive advantage in business these days in the fast-paced world we live in. Those who practise personal gratitude in life- to parents, friends and others will find it easier to do so in the business world- from the sales person to the executives who close deals worth millions of dollars.
A thank you note expressing gratitude creates a strong incentive for the recpient to stay connected.
It has also become good business for business owners and managers to thank their employees for a job well done.
Countries that celebrate the World Kindness Day this year include Canada, Japan, Australia, India, Scotland, Nigeria ,United Arab Emirates and Singapore. The Singapore Kindness Movement celebrating the World Kindness Day for the first time is distributing 45,000 yellow daisies meant to motivate the public to show appreciation for acts of kindness.
People like to feel recognised and appreciated. Saying 'thank you' has become a competitive advantage in business these days in the fast-paced world we live in. Those who practise personal gratitude in life- to parents, friends and others will find it easier to do so in the business world- from the sales person to the executives who close deals worth millions of dollars.
A thank you note expressing gratitude creates a strong incentive for the recpient to stay connected.
It has also become good business for business owners and managers to thank their employees for a job well done.
Saturday, October 31, 2009
The Perils of Climate and Capitalism
We have come a long way from the subsistence fishing of our forebears and many of the values and social norms that served us well have changed. We are facing different challenges now- environmental threats due to global warming and sea level rise, an illegal drug epidemic, appalling living conditions in the capital Male', a highly polarised political atmosphere, religious extremism and intolerance are some of the major problems.
Our forefathers should be lauded for the manner they endured the rigors of harvesting the sea to thrive on a livelihood dependent on fishing. Fishing was the principal industry which was the mainstay of our national economy until the development of the tourism industry which started in the early 1970s. Thrift was the way of life for our forefathers. For them, living by the values of thrift meant that they earned more than what they spent. Our society's needs at that time were the basic necessities relevant to living a simple life.
Just like other capitalistic countries of the world that embraced consumerism through the process of industrialisation, eventually Maldives made consumerism as an integral part of its economy. The Maldives economy depends heavily on foreign imports and the major portion of the country’s revenue is derived from: import duties, tourism tax, dividends from state-owned enterprises and land lease rent. All of these revenue sources are influenced the development of tourism. Tourism is the main driver of our economy today.
As is the case with other capitalist consumer based economies of the world, Maldives too has become a consumer obsessed society following an unsustainable economic model. The more our society consumes, the better for our economy. Globalization has also made it possible for goods and services previously out of reach in developing countries to be much more readily available. Items that at one point in time were considered luxuries—from cars, air conditioning, televisions to cell phones,—are now viewed by many people as necessities. Some of them have have become fashion accessories and status symbols. Scientists have now warned the global community that our environment faces catastrophic consequences due to our excessive consumption leading to global warming and sea level rise. Our planet is in peril and radical changes in our industrial development and in our social behaviour of consumption habits are necessary to create sustainable economic growth.
The Maldivian government has declared its intention to make the country carbon-neutral within a decade. British climate change experts Chris Goodall and Mark Lynas are working to develop a package of measures that aims to eliminate the use of fossil fuel in Maldives by 2020.
The plan includes a new renewable electricity generation and transmission infrastructure with 155 large wind turbines, half a square kilometre of rooftop solar panels, and a biomass plant burning coconut husks. Battery banks would provide back-up storage for when neither wind nor solar energy is available.
The cost for the package of low-carbon measures is estimated to be about $110m a year for 10 years. The scheme should pay for itself quite quickly, because the Maldives will no longer need to import oil products for electricity generation, transport and other functions. If the oil price were to rise to $100 per barrel, the payback period would be as short as 11 years. At current prices, it would take roughly twice as long to break even. (Link)
Carbon dioxide is the main greenhouse gas produced when fossil fuels (oil, gas and coal) are burnt. Presently almost all aspects of our lifestyles from transport, power generators to household appliances rely on oil and that creates the the greenhouse gases detrimental to our environment.
In the past people lived within their means, accumulating individual savings, planning for education and a better future. Now it has become a feature of the capitalist economies to make consumer credit available to to buy houses, to start small and medium businesses or to take student loans. Maldives is following this path of economic development. The ability to borrow money can help to improve the livelihood of people by providing them access to financial resources which they do not possess. But as economists like to point out that consumer credit is a double-edged blade: It can lead to greater opportunity and freedom, but, if promoted deceptively and used recklessly, it can lead to disaster, as has so painfully been revealed by the American subprime loan crisis. The unprecedented loan defaults of the subprime home mortgages, which caused the collapse of the US housing market at the epicentre of the recent financial crisis triggered the current global recession. Click here for a multimedia guide that illustrates cause, and implications of the current financial crisis.
While financial advisers in advanced economies still emphasize the timeless principles of thrift, planning, and living within one's means, they also say the use of productive credit, or credit used to enhance one's financial future, as wholly acceptable. In their view, productive credit included debt incurred in purchasing a home or even such goods as sewing machines, or furniture. In contrast, the use of consumptive credit, or credit which satisfied an immediate need or wish that had little to no future value, is unacceptable.
This is turning out to be only a feel-good theory. By the time American students leave college, many of them often come out with twenty or thirty thousand dollars in debt even before they start a career.
The capitalist world's consumer conformism mentality creates artificial needs promoted by a multi-million dollar advertising media who work for powerful corporations only interested in making more profits. Every individual is made to become a perpetual consumer who is hungry for more.
While the International Monetary Fund (IMF) often quotes the principle of privatising state owned companies as a standard prescription to developing countries who need their assistance, developed countries have now shown us that the state has to intervene to save the private companies, many of them too-big-to-fail. Recent financial crisis in US and Britain has revealed that a number of their top banks and corporations cannot stay afloat due to the shortage of 'liquid cash' and the only way to save these too big-to-fail corporations is to nationalise them. These corporations and banks demand that the state should bail them out. The state is being forced to bail these enterprises out on condition that they shall sell the bulk of their shares to the state. This means that these capitalist states are being forced to move in the direction of central planning and management of the economy of the socialist model.
This course of action is just the opposite of what the IMF prescribes to the developing countries.
Amartya Sen who has won the Nobel Prize for Economics has written some thoughts on the limitations of the market based capitalism in an essay in the New York Review of Books.
He wrote: "Historically, capitalism did not emerge until new systems of law and economic practice protected property rights and made an economy based on ownership workable. Commercial exchange could not effectively take place until business morality made contractual behavior sustainable and inexpensive—not requiring constant suing of defaulting contractors, for example. Investment in productive businesses could not flourish until the higher rewards from corruption had been moderated. Profit-oriented capitalism has always drawn on support from other institutional values.
The moral and legal obligations and responsibilities associated with transactions have in recent years become much harder to trace, thanks to the rapid development of secondary markets involving derivatives and other financial instruments. A subprime lender who misleads a borrower into taking unwise risks can now pass off the financial assets to third parties—who are remote from the original transaction. Accountability has been badly undermined, and the need for supervision and regulation has become much stronger.
And yet the supervisory role of government in the United States in particular has been, over the same period, sharply curtailed, fed by an increasing belief in the self-regulatory nature of the market economy. Precisely as the need for state surveillance grew, the needed supervision shrank. There was, as a result, a disaster waiting to happen, which did eventually happen last year, and this has certainly contributed a great deal to the financial crisis that is plaguing the world today. The insufficient regulation of financial activities has implications not only for illegitimate practices, but also for a tendency toward over speculation that, as Adam Smith argued, tends to grip many human beings in their breathless search for profits."
While capitalism has swept aside other economic systems like the feudalism, socialism and communism and has enormous potential for positive change, it has not solved problems of inequality and poverty. Infact, while capitalism continues to provide opportunities for creating more wealth, the gap between the rich and the poor is also widening.
Social entrepreneurship is an emerging business trend, where the creative vision of the entrepreneur is applied to today’s most serious problems: feeding the poor, housing the homeless, healing the sick, and protecting the planet. This is the world of social business.
Creating a World Without Poverty tells the stories of some of the earliest examples of social businesses, including Mohammad Yunus’s own Grameen Bank. It reveals the next phase in a hopeful economic and social revolution that is already under way—and is the worldwide effort to eliminate poverty by unleashing the productive energy of every human being.
Among the several challenges we face in Maldives; playing our part to avoid further destruction to the environment has now become the imminent priority on the world stage.
Our forefathers should be lauded for the manner they endured the rigors of harvesting the sea to thrive on a livelihood dependent on fishing. Fishing was the principal industry which was the mainstay of our national economy until the development of the tourism industry which started in the early 1970s. Thrift was the way of life for our forefathers. For them, living by the values of thrift meant that they earned more than what they spent. Our society's needs at that time were the basic necessities relevant to living a simple life.
Just like other capitalistic countries of the world that embraced consumerism through the process of industrialisation, eventually Maldives made consumerism as an integral part of its economy. The Maldives economy depends heavily on foreign imports and the major portion of the country’s revenue is derived from: import duties, tourism tax, dividends from state-owned enterprises and land lease rent. All of these revenue sources are influenced the development of tourism. Tourism is the main driver of our economy today.
As is the case with other capitalist consumer based economies of the world, Maldives too has become a consumer obsessed society following an unsustainable economic model. The more our society consumes, the better for our economy. Globalization has also made it possible for goods and services previously out of reach in developing countries to be much more readily available. Items that at one point in time were considered luxuries—from cars, air conditioning, televisions to cell phones,—are now viewed by many people as necessities. Some of them have have become fashion accessories and status symbols. Scientists have now warned the global community that our environment faces catastrophic consequences due to our excessive consumption leading to global warming and sea level rise. Our planet is in peril and radical changes in our industrial development and in our social behaviour of consumption habits are necessary to create sustainable economic growth.
The Maldivian government has declared its intention to make the country carbon-neutral within a decade. British climate change experts Chris Goodall and Mark Lynas are working to develop a package of measures that aims to eliminate the use of fossil fuel in Maldives by 2020.
The plan includes a new renewable electricity generation and transmission infrastructure with 155 large wind turbines, half a square kilometre of rooftop solar panels, and a biomass plant burning coconut husks. Battery banks would provide back-up storage for when neither wind nor solar energy is available.
The cost for the package of low-carbon measures is estimated to be about $110m a year for 10 years. The scheme should pay for itself quite quickly, because the Maldives will no longer need to import oil products for electricity generation, transport and other functions. If the oil price were to rise to $100 per barrel, the payback period would be as short as 11 years. At current prices, it would take roughly twice as long to break even. (Link)
Carbon dioxide is the main greenhouse gas produced when fossil fuels (oil, gas and coal) are burnt. Presently almost all aspects of our lifestyles from transport, power generators to household appliances rely on oil and that creates the the greenhouse gases detrimental to our environment.
In the past people lived within their means, accumulating individual savings, planning for education and a better future. Now it has become a feature of the capitalist economies to make consumer credit available to to buy houses, to start small and medium businesses or to take student loans. Maldives is following this path of economic development. The ability to borrow money can help to improve the livelihood of people by providing them access to financial resources which they do not possess. But as economists like to point out that consumer credit is a double-edged blade: It can lead to greater opportunity and freedom, but, if promoted deceptively and used recklessly, it can lead to disaster, as has so painfully been revealed by the American subprime loan crisis. The unprecedented loan defaults of the subprime home mortgages, which caused the collapse of the US housing market at the epicentre of the recent financial crisis triggered the current global recession. Click here for a multimedia guide that illustrates cause, and implications of the current financial crisis.
While financial advisers in advanced economies still emphasize the timeless principles of thrift, planning, and living within one's means, they also say the use of productive credit, or credit used to enhance one's financial future, as wholly acceptable. In their view, productive credit included debt incurred in purchasing a home or even such goods as sewing machines, or furniture. In contrast, the use of consumptive credit, or credit which satisfied an immediate need or wish that had little to no future value, is unacceptable.
This is turning out to be only a feel-good theory. By the time American students leave college, many of them often come out with twenty or thirty thousand dollars in debt even before they start a career.
The capitalist world's consumer conformism mentality creates artificial needs promoted by a multi-million dollar advertising media who work for powerful corporations only interested in making more profits. Every individual is made to become a perpetual consumer who is hungry for more.
While the International Monetary Fund (IMF) often quotes the principle of privatising state owned companies as a standard prescription to developing countries who need their assistance, developed countries have now shown us that the state has to intervene to save the private companies, many of them too-big-to-fail. Recent financial crisis in US and Britain has revealed that a number of their top banks and corporations cannot stay afloat due to the shortage of 'liquid cash' and the only way to save these too big-to-fail corporations is to nationalise them. These corporations and banks demand that the state should bail them out. The state is being forced to bail these enterprises out on condition that they shall sell the bulk of their shares to the state. This means that these capitalist states are being forced to move in the direction of central planning and management of the economy of the socialist model.
This course of action is just the opposite of what the IMF prescribes to the developing countries.
Amartya Sen who has won the Nobel Prize for Economics has written some thoughts on the limitations of the market based capitalism in an essay in the New York Review of Books.
He wrote: "Historically, capitalism did not emerge until new systems of law and economic practice protected property rights and made an economy based on ownership workable. Commercial exchange could not effectively take place until business morality made contractual behavior sustainable and inexpensive—not requiring constant suing of defaulting contractors, for example. Investment in productive businesses could not flourish until the higher rewards from corruption had been moderated. Profit-oriented capitalism has always drawn on support from other institutional values.
The moral and legal obligations and responsibilities associated with transactions have in recent years become much harder to trace, thanks to the rapid development of secondary markets involving derivatives and other financial instruments. A subprime lender who misleads a borrower into taking unwise risks can now pass off the financial assets to third parties—who are remote from the original transaction. Accountability has been badly undermined, and the need for supervision and regulation has become much stronger.
And yet the supervisory role of government in the United States in particular has been, over the same period, sharply curtailed, fed by an increasing belief in the self-regulatory nature of the market economy. Precisely as the need for state surveillance grew, the needed supervision shrank. There was, as a result, a disaster waiting to happen, which did eventually happen last year, and this has certainly contributed a great deal to the financial crisis that is plaguing the world today. The insufficient regulation of financial activities has implications not only for illegitimate practices, but also for a tendency toward over speculation that, as Adam Smith argued, tends to grip many human beings in their breathless search for profits."
While capitalism has swept aside other economic systems like the feudalism, socialism and communism and has enormous potential for positive change, it has not solved problems of inequality and poverty. Infact, while capitalism continues to provide opportunities for creating more wealth, the gap between the rich and the poor is also widening.
Social entrepreneurship is an emerging business trend, where the creative vision of the entrepreneur is applied to today’s most serious problems: feeding the poor, housing the homeless, healing the sick, and protecting the planet. This is the world of social business.
Creating a World Without Poverty tells the stories of some of the earliest examples of social businesses, including Mohammad Yunus’s own Grameen Bank. It reveals the next phase in a hopeful economic and social revolution that is already under way—and is the worldwide effort to eliminate poverty by unleashing the productive energy of every human being.
Among the several challenges we face in Maldives; playing our part to avoid further destruction to the environment has now become the imminent priority on the world stage.
Wednesday, October 07, 2009
Bloggers To Give Full Disclosure
As a marketing and business tool, blogging has finally come of age. Blogs have also matured as a communications tool within business companies, from C.E.O. on down.
On Monday, The Federal Trade Commission (FTC) which is the independent agency of the United States government that promotes "consumer protection" and prevents "anti-competitive" business practices, said it would revise rules about endorsements and testimonials in advertising. The new regulations are aimed at the rapidly shifting new-media world and how advertisers are using bloggers and social media sites like Facebook and Twitter to pitch their wares. The FTC said that beginning Dec. 1, bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid by advertisers, as occurs frequently. (Link)
For bloggers who review products, this means that the days of an unimpeded flow of giveaways may be over. More broadly, the move suggests that the US government is intent on bringing to bear on the Internet the same sorts of regulations that have governed other forms of media, like television or print.
Many of the new products and services are provided by the rapidly growing sector of the information technology and communications technology. Those who use the new electronics technologies especially computers and video technology have seen the most profound changes.
As blogs have gained in popularity, demand is also growing for employees who can write them or have the technical expertise to support them.
On Monday, The Federal Trade Commission (FTC) which is the independent agency of the United States government that promotes "consumer protection" and prevents "anti-competitive" business practices, said it would revise rules about endorsements and testimonials in advertising. The new regulations are aimed at the rapidly shifting new-media world and how advertisers are using bloggers and social media sites like Facebook and Twitter to pitch their wares. The FTC said that beginning Dec. 1, bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid by advertisers, as occurs frequently. (Link)
For bloggers who review products, this means that the days of an unimpeded flow of giveaways may be over. More broadly, the move suggests that the US government is intent on bringing to bear on the Internet the same sorts of regulations that have governed other forms of media, like television or print.
Many of the new products and services are provided by the rapidly growing sector of the information technology and communications technology. Those who use the new electronics technologies especially computers and video technology have seen the most profound changes.
As blogs have gained in popularity, demand is also growing for employees who can write them or have the technical expertise to support them.
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