Interest Rate Behavior and Lending in Microfinance

An Essay on Interest Rate Behavior and Lending in Microfinance Abstract: This essay analyzes factors which affect interest rate behavior and its subsequent impact on lending in microfinance. Here we have used regression model for our analysis. Furthermore comparison has been drawn among the different sources of loans outside Bangladesh. Here the experience of microfinance outside Bangladesh like India, South and South-East Asia, Latin America has been fully illustrated. This essay conducts analysis on the basis of the existing literatures on Microfinance.Interest Rate Behavior Determinants of interest rate of lending in Micro-finance: * to expand and improve business operation * recruiting personnel , * marketing the services , * improving financial information system, * constructing new offices * Default * Unwillingness to pay * Poor Management * Economic recession * Inability to pay * Staff identifying * Checking creditworthiness * processing loan applications, * disbursing loans, monitoring * collecting repayments, * costs of the space occupied, * communications, transport, * support staff, Grant * Equity * Foundation * Trust * Saving Account We can observe that in MFI lending there is higher interest rate than the commercial bank’s lending rate. The interest rate charged here is higher as cost of funding, processing, cost of risk of loan losses and profit are higher in this case. The graph below shows the different ingredients interest rate. As above-mentioned factors are very much crucial in this sector that is why require extra attention and thereby require the MFI to charge high interest rate. Rosemberg, R. , A. Gonzalez and S.Narain (2009) and Gonzalez (2010), suggest that though small loan provided by the MFI has low default rate but has higher administrative cost that most of the cases cannot be offset by economies of scale. These administrative costs are the single largest contributor to interest rates. Finally, they suggest that, a bigger loa n size may help them to reduce their lending interest rate. Further, they also emphasize if higher loans were received by more experienced borrowers then credit risk would decline and thereby interest rates. Lending in Micro-finance: Accordingly the loan transaction may be described in the following steps.First, the financial firm decides how much to charge and what the optimal loan size to offer must be in order to reach its profitability goal. Once known the value of the lending interest rate and the average loan size the financial institution offers, a potential customer decides whether s/he wants to request a loan. Taking into account the credit history of the potential borrower and its income-expenditure stream, the financial institution builds a risk profile of the individual. With this at hand, they decide where to lend or not. The loan transaction process is given below: P. otler of Groningen university with his vast research wanted to show that profitability will increase w hen lending interest rates and/or productivity and/or the loan size increase or when the funding cost declines . He also showed that The lending interest rate will be negatively correlated with the loan size. So if they wish to achieve a higher profitability it is likely that all else equal they will offer loans of higher size. When microfinance institutions start operations they usually offer loans of small amounts because they do not have much capital or experience and debtors tend to be people without credit history.We find that the lending interest rate is negatively correlated with the productivity of financial institutions and years of operation and positively correlated with the funding costs. What Can Reduce the Interest Rates in Microfinance? P. cotler also shows that probability that financing boosts growth is weakened if interest rates are extremely high. There are two policies to reduce interest rate : * One is to reducing funding cost and * Another is increasing product ivity. How could productivity be raised? Institutional factors such as technology use and management quality and commitment to efficiency should be variables to consider.Further, it should depend on with what capacity loan officers to reach their target clients. Such capacity not only depends on the quality of infrastructure but maybe more important on the geographic and demographic characteristics of the country in which microfinance institutions operate. 1 Effects of Competition over Lending Behavior in Microfinance Competition in a good influencing factor for the markets, consumer protections, efficiency of allocation and incentive for the development of new products. MFI’s enjoyed a monopolistic market in the early years of its inception.Monopolistic market power is associated with allocative inefficiency. Allocative inefficiency refers to the welfare losses as a consequence of high prices a monopolist charge. There is even further loss if the monopolist employs inefficie nt technology (productive inefficiency). Besides, there may not be demands to invest in efficient technology and introduce new products. Therefore, it would be realistic to assume competition can be beneficial in the context of microfinance market as it may result in improved and new financial product designs, better customer services, lower costs and lower interest rates.The other side of the argument is that microfinance market makes use of soft-information and depends on strong MFI-client relationship. MFIs provide financial services for the poor that are considered not creditworthy by the conventional banks. They are often praised for overcoming the problem of information asymmetry and providing loans without collateral requirements. They do so by establishing strong personal relationship with clients. Another tool is the usage of other forms of collateral such as group lending that generates social collateral.Competition and the effort to win clients and expand market share, th erefore, may lead to low screening and lending standards. There are some indications of lose MFI-clients relationship with intense competition. Increased competition is also associated with an increase in information asymmetry, which makes it difficult for MFIs to know about the general debt level of clients. This in turn may lead to manifold borrowing, serious debt burdens, low repayment rates and poor portfolio quality.The effect of competition could go both ways and deserves an empirical investigation. However, very few examine the effect of competition among MFIs and the literature on competition in microfinance is limited. Below is an overview of the few available related works. The focus on making MFIs profitable and financially-sustainable started in the 1980s and 1990s. The essential elements of this approach are competition, regulation and profitability. The essay explores the Latin American microfinance market where the commercial approach to microfinance proceeded rapidly .It describes the market as facing rising competition, which leads to market saturation in some countries. Olivares-Polanco (2005) examines some of the subjective and descriptive evidences. He investigates the effect of competition by mainly focusing on outreach (measured by loan size). His findings show that increased competition results in lower outreach. Navajaset al. (2003) studied competition in the Bolivian microfinance market by focusing on two major MFIs (Casa Los Andes and BancoSol), which collectively have around 40 percent market share.The results suggest that outcome of competition is ambiguous since competition leads to innovation thereby expanding outreach. However, it reduces the ability of lenders to cross-subsidize less profitable smaller loans. In a similar study, Vogelgesang (2003) examines how competition affects loan repayment performance for Caja Los Andes. The analysis indicates competition is related with multiple loan taking and higher levels of borrower ind ebtedness. The probability of default is also shown to be high with higher levels of indebtedness.On the other hand, he argues the probability of timely repayment is high in areas where there is high competition and high supply of microfinance services. Thus, the results seem inconclusive. A theoretical model developed by McIntosh and Wydick (2005) characterizes the effects of competition between MFIs where increased competition leads to increased information asymmetry. As a number of competing MFIs amplify in a market, which makes information sharing between them challenging, borrowers may engage in multiple borrowing which increases the debt level of clients and the probability of default.This in turn can make worse off borrowers with a single lender since this behavior will create an externality by inciting MFIs to respond to multiple borrowing by adjusting interest rates upward. In a Ugandan microfinance market, which McIntosh et al. , (2005) studied, there is a rise multiple bo rrowing and decline in repayment rate as competition intensifies. Other works that do not address the effect of competition among MFIs but present an argument about the possible effects of competition includes Hermes et al. (2009). Their work examines how overall level of financial development in a country affects the efficiency of MFIs.After presenting a balanced argument that the effect of financial development on efficiency could be both negative and positive, they empirically document a positive effect of financial development of efficiency of MFIs. They suggest competition, among other channels, through which financial development could affect efficiency. On a related work, Cull et al. (2009b) investigates how MFIs perform under the pressure of competition from formal banks. Their results show that in a country where there is larger formal bank presence, MFIs tend to deepen their outreach (i. . , extend their outreach to women and also lend in small amounts). However, the effec t on other performance indicators, such as profitability, appears weak. Findings Given significantly large numbers of people in developing countries are financially excluded and the relative success of MFIs in promoting access to finance for the poor, it is not surprising to see MFIs get the attention they are enjoying. With the growth of the microfinance sector and increasingly varied players comes intense competition, which the effects on MFIs outcomes are not clear.In this essay, we take the first approach in measuring competition in a standard way. Interestingly, the measure shows indeed competition is growing in the microfinance market. As a next step, a critical question is addressed, namely what is the effect of increased competition. We consider important dimensions of MFIs’ performance. These are outreach, loan repayment, efficiency and profitability. The results document strong negative effects of competition on performance of MFIs, after controlling for various mac roeconomic and MFI factors.We show competition is negatively related with outreach while it is associated with rising default rates. Furthermore, declining efficiency and deteriorating financial performance is shown to be associated with intense competition. The results might appear rather depressing for microfinance enthusiast, anyone for that matter, who would like to see the sector grow and bring all the positive benefits along. What could be done? These calls for measures that do not put a halt on the growth of the sector rather ensure the (negative) competitive effects are minimized.This may include designing ways that makes sure MFIs do not compromise lower lending standards for increased market share. At the same time, designing ways that promote information sharing between MFIs, so that a borrower that default on one MFI loan could not turn to another MFI in the neighborhood and granted a loan, can contribute to lower delinquency as well as better borrowers’ welfare. In addition, promoting financial literacy among clients may help them in their borrowing decisions, which in turn may limit multiple loan-taking. Finally, as we show in the results, increased competition is negatively associated with efficiency of MFIs.Innovative ways among MFIs that could enhance efficient service provision may also help in ensuring benefits from the growth in the microfinance market. Incentives and Disincentives that Affect Lending Behavior in Microfinance In late 1980s and early 1990s thousands of non-governmental organizations (NGOs) and specialized finance institutions around the world initiated micro enterprise finance programs. Most of these programs are financially supported by the international donor agencies or governments to improve the lives of the poor.Therefore, for NGOs micro enterprise finance appears to be socially motivated. Reasons Why Banks Make Micro and Small Enterprise Loans Frequency of Response* % of total a) Profitability of micro and small loans 72 49% b) Changing market conditions and increasing competition in lending to large/medium enterprises 64 44% c) Regulations imposed by the government 25 17% ————————————————- d) Poverty alleviation / social objectives 29 20%Disincentives for Making Micro and Small Enterprise Loans Frequency of Response % of total a) Higher administrative costs 29 40% b) Risky borrowers 12 17% c) Interest rate controls 21 29% d) Not interested in micro enterprises 5 7% e) Lack of network and personnel to serve this market 23 32% f) Other 18 5% Banks’ Lending Behavior and Loan CharacteristicsBanks Age and Their Portfolio Share in Micro/Small Business Loans Out of 148 banks, 119 banks answered to the question on loan portfolio analysis. When these banks are classified according to the number of years since they were established, it is found that the newly established banks, o n average, have a larger share of loan portfolio delegated to small and micro enterprise loans than the older banks. Loan Terms The findings of this research indicate that, the loan terms provided by these commercial banks for small and micro enterprises ranges between three months to six years.On average, the loan term for micro enterprise loans is 2. 4 years and for small businesses it is 2. 9 years. These loan terms are much longer than the loan terms provided by NGOs, which are generally between one to three months. Average Loan Terms for Micro and Small Enterprise Loans Sample Size Average (years) Median (years) Micro 57 2. 4 1. 75 Small 46 2. 9 3. 00 Loan term: In micro and small business finance, the loan term or the loan repayment schedule can affect the ability of the borrower to pay his/her loan back.The shorter loan terms or frequent payments of installments can make it easier for the borrower to pay his/her loan back, whereas the longer loan terms and infrequent payment s of loan installments can make it difficult for micro/small business owners to pay their loan on time. Therefore, the longer the loan term, or the less frequent are the loan installments it is more likely for banks to have higher arrears which indicates a positive relationship between the length of the loan term and the level of arrears for a bank.Average interest rate on micro/small loans: In the micro finance literature, it has been widely accepted that micro and small enterprises are capable of borrowing at commercial, or market interest rates. Furthermore, it is also argued that, if micro or small enterprise loans are subsidized by governments, loan default or corruption may be encouraged which may result in higher arrears in banks’ loan portfolios. These arguments suggest a negative relationship between loan rates and banks’ arrears.On the other hand, the higher nominal interest rate paid on a loan implies a greater cash flow burden on the enterprise hence increa sing the likelihood of arrears. Due to data limitations, other financial costs, such as fees and commissions associated with the loan could not be taken into account in this research. Findings: The higher the loan interest rate given everything else is held constant; the higher will be the rate of arrears.This finding contradicts with the common argument that the micro and small enterprises are capable of borrowing and paying their loan back with a high rate of interest. It is however important to note that micro and small enterprises may show different characteristics in loan repayment with respect to given interest rates. One of the most important findings of this study is that many banks are using inappropriate lending criteria when making loans and managing their portfolio of small business loans.In the case of small business loans the banks that require collateral have higher than average levels of loan arrears. Hence reliance on collateral tends to cause poor borrower evaluati on and inadequate follow up once the loan have been made. It is also found that the level of interest rate charged on the loans is not a factor affecting the rate of arrears for micro enterprise loans but it is a factor affecting the level of arrears for small business loans. Justification of high interest rate in Micro financeSmall businesses normally struggle to find out the sources of fund due to the small size of business where lenders face difficulties to cover up the loan money. From several evidences it is observed that small businesses are very efficient to utilize the funds and can rapidly realize profits though borrowing at very high interest rate. An author explained this through an example of a fruit seller who takes loan in the morning, buys fruit, sells it and pay lender outrageous rates to repay the money by the end of the day.So, It is very critical that though rates are high that MFIs have, small business can cover the spread. How can interest rate be reduced? Evide nces from Bolivia pursue us that interest rate in micro finance sector can be reduced by great regulation and create a competitive environment among the micro finance institutions. If situation looks like that MFIs are managing huge profits in that case government should take some initiatives that will discourage MFIs to make extra ordinary profit.Government can give licenses to new MFIs to create competition. But it should be remember that regulatory framework is a vital element. So, before giving licenses government should strengthen the monitoring function. Then we can expect thatat least some of that profitability will be passed back to the customer either through lower rates, reduced fees or another way. Should Subsidy Be Provided To Reduce Interest Rate? From the very beginning of the history of Micro finance we see that it has been growing at an exponential rate over the years.Many evidences about the recovery rates convince us that interest rate is almost justified so subsid y may create distortion in this sector. According to Mary Ellen Iskenderian, President and CEO of Women’s World Banking, â€Å"I don’t think a subsidy is the way to go about reducing rates because, in the end, the reason that microfinance has been so successful to-date is that it has always been about sustainability—sustainability of the institutions to recover their costs as well as sustainability of the borrower to make on-time payments. Responsiveness of lending amount to the changes in interest rate: Example from Bangladesh Bangladesh is a poverty-stricken country. It is a great pleasure for marginal people to get loans from MFIs because it is almost impossible for them to manage loan from conventional commercial banks. So, poor people are willing to pay even high interest rate to get loans. Now the question is that how are poor people responsive to increase in interest rate charged by MFIs? SafeSave, a credit cooperative in the slums of Dhaka,Bangladesh, o perate three branches across the city to provide credit.Administrative records kept by this MFI asserts that when interest rate increases suddenly, less wealthy borrowers reduce their demand for loan and they are relatively more sensitive than the wealthy borrowers. Another important thing is that the loan portfolio of this organization shifts from less wealthy borrowers from wealthy borrowers with the increase in interest rate. Influential advocates now argue that poorhouseholds are so insensitive to interest rates so interest rate in micro finance sector should be deregulated.If this is so, microfinance can readily expandto serve the hundreds of millions of currently excluded households, without sacrificingdepth of outreach. This claim is far from clear as a general proposition. First, diminishing marginal returns to capital disregards the possibility of unequal access to non-capital inputs like managerial skillsand human capital by poor borrowers. Moreover, raising interest rates can in principle exacerbate moralhazard and adverse selection, worsening loan repayment rates and screening out the most reliable borrowers.And, while microlenders may still find a pool of customers afterreal interest rates are raised, the customers may not be from the same pool that was reliable, willing and able to pay the lower rates. In addition, Moral perception to keep costs as low as possible for the poor, have compelled thelargermicrolenders in Bangladesh to keep real interest rates below 40 percent per year,even if it means turning to subsidized resources to cover costs (e. g. , Morduch, 1999). The average fees charged by two large lenders in Bangladesh arejust under 30 percent.The Grameen Bank (which is not one of the two) keeps theirinterest rates and fees close to 20 percent per year (nominal) on their main lending products—and they ignore suggestions to raise rates. Experience inside Bangladesh Credit delivery system by Grameen bank Grameen Bank Credit Delivery means taking credit to the very poor in their villages by means of the essential elements of the Grameen credit delivery system. The credit delivery system of this authentic micro-finance is very much well-functioning. The credit delivery is the most productive weapon of Grameen bank to reach the highest number of its beneficiaries.Grameen Bank credit delivery system has the following features: 1 There is an exclusive focus on the poorest of the poor. Exclusivity is ensured by: i) establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them ii) ii) in delivering credit, priority has been increasingly assigned to women iii) iii) the delivery system is geared to meet the diverse socio-economic development needs of the poor 2   Borrowers are organized into small homogeneous groups. Such characteristics facilitate group solidarity as well as participatory interaction.Organizing the primary gr oups of five members and federating them into centres has been the foundation of Grameen Bank's system. The emphasis from the very outset is to organisationally strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The Centres are functionally linked to the Grameen Bank, whose field workers have to attend Centre meetings every week. 3 Special loan conditionalities which are particularly suitable for the poor. These include: i) very small loans given without any collateral i) loans repayable in weekly instalments spread over a year    iii) Eligibility for a subsequent loan depends upon repayment of first loan iv)   Individual, self chosen, quick income generating activities which employ the skills that borrowers already posses    v) close supervision of credit by the group as well as the bank staff    vi) stress on credit discipline and collective borrower responsibility or peer pressure    v ii) Special safegaurds through compulsory and voluntary savings to minimise the risks that the poor confront    viii) Transparency in all bank transactions most of which take place at centre meetings Simultaneous undertaking of a social development agenda addressing basic needs of the clientele. This is reflected in the â€Å"sixteen decisions† adopted by Grameen borrowers. This helps to: i) Raise the social and political consciousness of the newly organized groups    ii) Focus increasingly on women from the poorest households, whose urge for survival has a far greater bearing on the development of the family      iii) Encourage their monitoring of social and physical infrastructure projects – housing, sanitation, drinking water, education, family planning, etc. Design and development of organization and management systems capable of delivering programme resources to targeted clientele. The system has evolved gradually through a structured learning process, tha t involves trials, errors and continuous adjustments. A major requirement to operationalize the system is the special training needed for development of a highly motivated staff, so that the decision making and operational authority is gradually decentralized and administrative functions are delegated at the zonal levels downwards. 6| Expansion of loan portfolio to meet diverse development needs of the poor.   |   As the general credit programme gathers momentum and the borrowers become familiar with credit discipline, other loan programmes are introduced to meet growing social and economic development needs of the clientele. Besides housing, such programmes include:|   | i)| Credit for building sanitary latrines| | ii)| Credit for installation of tube wells that supply drinking water and irrigation for kitchen gardens|   | iii)| Credit for seasonal cultivation to buy agricultural inputs|   | iv)| Loan for leasing equipment / machinery, ie. cell phones purchased by Grameen Bank members|   | v)| Finance projects undertaken by the entire family of a seasoned borrower. Three Cs in Credit delivery: Character: means how a person has handled past debt obligations: From credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined. Capacity: means how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could interfere in repayment.Capital: means current available assets of the borrower, such as real estate , savings or investment that could be used to repay debt if income should be unavailable. | | The loan disbursement has been robust year after year and profit has also been increasing year after year. The loan disbursement schedule and profit are summarized below: year| Loan disbursement (million Tk)| Profit/loss (million Tk)| 2001| 146538. 20| 58. 45| 2002| 162286. 24| 59. 67| 2003| 183575. 33| 357. 52| 2004| 209166. 76| 422. 13 | 2005| 3248163. 17| 1000. 44| 006| 306368. 63 | 1398. 15| 2007| 356798. 22| 106. 91| 2008| 418903. 07| 1305. 00| 2009| 498311. 47| 371. 57| 2010| 594460. 61| 757. 24| Interest rate charged on different loan on different duration are given below: Description of the loan| EAIR(Old Payment Method)| EAIR(New Payment Method)| 10-Year stable Level Loans @ Tk. 2,000| 350%| 556. 44%| 10-Year Increasing Loans| 18. 48%| 44. 13%| Actual 7-Year Center Loan History| 15. 39%| 35. 57%| The â€Å"Old† Payment System: Under the â€Å"old† system, Grameen borrowers made weekly payments for 50 weeks.Their principal balance was reduced by the full amount of the payment, and no interest payment is credited. The â€Å"New† Payment System: Under the â€Å"new† system, the entire structure of loan payments was altered. The loan payment period is now defined as 46 weeks in length, but factored into the system is the anticipation of 6 official â€Å"national holidays† when the we ek’s payment is suspended. ASA Microfinance in Bangladesh: ASA has been working relentlessly to reduce poverty since its inception in 1978.The formal banking sector in developing countries, like Bangladesh, does not typically provide financial services to the poor. This sector concentrates on large loans to the upper class, thereby completely excluding low income groups. The microfinance movement, however, has shown that there is a thriving market among the poor when financial products cater to their specific needs. The poor are a quite active group in any economy. ASA has shown that their needs can be met while at the same time making the providing institution profitable as well.Up to October 2011 ASA's cumulative Loan disbursement has been BDT 481,381 million (US$ 6,326 million) while loan outstanding (principal) is BDT 44,972 million (US$ 591 million) among 4. 43 million borrowers. At the end of June 2011 ASA's Operational Self Sufficiency(OSS) was 182. 48%, Financial Self -sufficiency (FSS) 118. 82% and rate of loan recovery 99. 83%. The loan disbursement over the years are given below: Year| Disbursement in million Tk. (during the year)| 2008| 61,108,00 | 2009| 61,495,00. | 2010| 68,486,00| 011| 44,835,00| The rate of interest charged by the ASA is given below: Category| Eligible Criteria| Initial Maximum Loan Size| Interest Rate| Loan term| Primary Loan| Economically active poor to undertake or strengthen income generating activities (IGAs). | BDT 8,000-20,000 to maximum BDT 50,000 at first loan cycle. | Maximum 27% declining| 4, 6 or 12 months based on nature of IGAs| Special Loan| Small/micro enterprises or entrepreneurs and traders to promote and scale up production, business activity and employment generation. BDT 51,000-500,000 | Maximum 27% declining| 12, 18, 24 or 30 months based on nature of enterprises| BRAC BRAC, a development organization, was formed in 1972 under the Societies Registration Act 1860. Although it was first set up to reset tle refugees in post-war Bangladesh, BRAC later redesigned its strategies in accordance with its philosophy of poverty alleviation and empowerment of the poor. At present, BRAC has a large number of development programs that cover the areas of health, education, credit, employment and training for the poor people of Bangladesh.BRAC carries out licensed banking activities through the BRAC Bank Ltd. and also earns from various income generating projects such as Aarong Rural Craft Centre, BRAC Printers and Printing Pack, BRAC Dairy and Food project, BRAC Tea Estates, andvarious programme support enterprises such as poultry farms, feedmills, seedmills and prawn hatcheries. Microloans: These loans, which range from USD 50 – 700, are given exclusively to individual women who are serviced in a group setting, namely the VO. The VO acts as an informal guarantor by creating peer pressure to ensure timely repayment.Borrowers repay through weekly or monthly installments and deposit savin gs during the regular VO meetings. These loans are generally used for small operations in poultry, livestock, fruit and vegetable cultivation, handicrafts or rural trade. Microenterprise loans (Progoti): These loans, which range from USD 700 to 10,000 are given to both male and female entrepreneurs to support and help expand existing small enterprises which are too small to qualify for credit from mainstream banks. Borrowers generally use these loans to finance shops and small-scale manufacturing activities.A ladder of opportunity :BRAC have developed a ‘ladder’ of financial services to target different poverty groups because we understand that the financial needs of the poor are diverse. The most vulnerable are the extreme poor who do not benefit from microfinance – for this group BRAC have developed a grant-based programme that incorporates asset transfers with non-financial support; BRAC’s Ultra Poor programme. Similarly, it has launched, with the help of the Government, a specific customised product for marginal farmers, which combines access to finance with technical support.Another specialised microloan scheme aims to financially empower adolescent girls, helping them continue their education, build savings and receive livelihood training to start smaller home-based enterprises. The rate of interest charged by the BRAC Bank SL no. | Types of loan| Annual interest Rate| 1| General micro credit (Rural and Urban)| 25%-33%| 2| Micro Enterprise loan| 26%-40%| 3| Ultra poor loan| 22%| 4| Agriculture loan| 22%-33%| 5| Seasonal loan| 26%-33%| 6| Disaster management loan| 2. 8%-21%| Loan Disbursement over the year is given below: Sl no. | year| Loan disbursement(TK)| | 2009| 75680756900| 2| 2010| 38749653600| 3| 2011| 39554248779| 4| 2012| 42235412000| Experience outside Bangladesh There is a vast array of experience outside Bangladesh as microfinance is now a globalphenomenon. The information below is simply intended to give a snapshot of the differentexperiences in a few countries, and to show how the complex issue of interest rates has beenaddressed, either by inaction or explicit action by governments. Figures on interest rates fromvarious countries in different parts of the world are given below, in particular those nearby inAsia.Countries are also mentioned where the government or parliament (not necessarily thesame) has sought to impose a ceiling on interest rates in the twin belief that poor peoplecannot afford to pay the high interest rates charged by MFIs and that it is indeed immoral thatthose who are poor should pay higher interest rates on loans than those paid by richerindividuals. South and South East Asia The table below (prepared for the Joint Donor Strategy initiative) gives a summary picture ofthe situation in selected countries in the S. nd SE Asia Region, showing data assembled byEDA Rural Systems, with the comparative rates in Bangladesh at the bottom of the table forcomparison: Three importa nt conclusions can be drawn from these figures. 1. First, that the interest rates charged by MFIs are invariably higher than the rates charged by commercial banks, on average approximately 100% higher. 2. Second, that in general the rates charged by informal moneylenders vary much more widely than either the rates charged by the banks or by MFIs, and almost always are substantially higher than the rates charged by the MFIs. . Third, the interest rate charged by almost all NGO-MFIs in Bangladesh, 30% effective annual rate, is by no means out of line with what is being charged elsewhere in South and South East Asia. If any person wants to borrow from traditional banking system he has to fill out application form. He has to go to the bank for many times for the sanctioning of loan that incurs substantial amount of transportation cost for him. In addition to high transportation cost, there are some processing cost and commissions charged by banks.Ultimately, Effective interest rate is q uite higher in case of borrowing from traditional banking system. On the other hand, traditional banks can’t cover up administrative cost by providing small loans. Comparison of Interest Rates of Various Sources of Loans in India Quoted Cost and Cost after Adjustment for Transaction Costs From the table we see that there is no transaction cost in case of borrowing from MFIs loan. From the evidence of India, we have found that MFIs are used to make election engineering.The main motive of MFIs is to provide credit to women and poor. But, politicians are trying to use it as a political tool. Government provides subsidy which are distributed through MFIs. Large number of impoverished people is a big vote bank for politicians. In this process government influences the decisions of the voters in time of election. In Tamil Nadu we see that government passed ordinance that MFIs could not charge more than 12% interest that may ultimately drive out huge number of lenders from the marke t.So, poor people have to rely on nonchalant public sector banks and according to Mahajan and Ramola they will not have no recourse except money lenders for borrowing. Interest rate, Lending ; Microfinance Less Dependence on Money lenders, Mahajon etc More economic activities because of easy funding reduce asymmetry of information, rural development possible. Downward competitive environment in informal market. Rise in income level, Purchasing power, Overall standard of living. Production, consumption level increases. ResultEliminate the practice of charging usury, greater financial leverage, only does it help to reduce poverty, it Scales down inequality as well. Fig: Effect of Interest rate, Lending ; Microfinance On the Perspective of Latin America In Latin America, the leading MFIs all operate under a formal legal framework, usually as specialized MFI banks, under the supervision of the central bank. Figures for five of the best known institutions are given below, all of which ha ve substantial numbers of clients (by the standards of the region) and are currently operating profitably.Probably the most interesting (for Bangladesh) is Comparators which has from its inception deliberately targeted poorer clients, as can be seen from the current average size of loans ($277). Leading Microfinance Institutions Primary Indicators (End Third Quarter 2003) The figures below for the same five MFIs show the average rates of interest which they are receiving on their various loan products. Descriptive Statistics | Mean| Std. Deviation| N| NO. CLIEN No of CLIENTS| 94000. 00| 65490. 457| 5| AVG. LOAN Average Loan| 1002. 0| 501. 657| 5| LOANST Total Loan| 78000000. 00| 42361539. 160| 5| Regression Variables Entered/Removed(b) Model| Variables Entered| Variables Removed| Method| 1| NO. CLIEN No of cLIENTS(a)| . | Enter| a All requested variables entered. b Dependent Variable: LOANST Total Loan Model Summary Model| R| R Square| Adjusted R Square| Std. Error of the Estimate| Change Statistics| | | | | | R Square Change| F Change| df1| df2| Sig. F Change| 1| . 169(a)| . 028| -. 295| 48213878. 375| . 028| . 088| 1| 3| . 786| Predictors: (Constant), NO. CLIEN No of cLIENTS The unstandardized parameters tell you the difference in Y per unit change in X whereas the standardized tells you the difference in Y in standard deviations per standard deviation difference in X. With the exception of BancoSol, these rates are all higher than those charged by the NGO-MFIs in Bangladesh (in the case of Compartamos substantially so), but their operating costs are also higher than the leading NGO-MFIs in Bangladesh due largely to the higher costs of staff.Nonetheless all five institutions are profitable and the high returns achieved by the three most profitable institutions have enabled them to achieve the most rapid rates of growth in client numbers in the 21 months covered by thee figures; almost triple by Banco Solidario; more than double by Compartamos; and over two t hirds by Mibanco. Leading Microfinance Institutions: Costs and Interest Rates (End Third Quarter 2003) As reported by Helms and Reille, when BancoSol in Bolivia began as a bank in 1985, it charged a combination of interest and fees equivalent to 65% effective annual interest rate. Today, BancoSol, operating in a highly ompetitive environment, has brought down its costs and charges interest rates on its products yielding the 24% shown in the table above. According to one of the managers at BancoSol, the banks growth from 4,500 to 55,000 clients in just ten years has been possible by its ability to charge sustainable rates of interest. Further, whilst its return on average assets is a modest 1. 6%, its current return on average equity is over 11% (because of the leverage it has been able to exercise on its equity). Conclusion Obtaining financial information from institutions involved in microfinance is no easy task.In most countries because there is no financial authority that collect s it and makes it available to the public. Furthermore, the absence of governmental or organized market supervision means that these entities can freely decide how to measure – if they want to do it– the variables describing their different sources of income and expenditure. Finally, even if there were an informal consensus on how to measure these variables, that would not necessarily ensure that the information is reliable since it is very likely that accounting deficiencies might exist. 1. David L. Wright, Dewan A. H.Alamgir, Microcredit Interest Rates in Bangladesh ‘Capping v Competition’, Donors’ Local Consultative Group on Finance, March 2004. 2. P. Cotler , What Drives Lending Interest Rates in the Microfinance Sector? , August 4th, 2010, Microfinance Workshop, Groningen University. 3. Esubalew Assefa, Niels Hermes and Aljar Meesters, Competition and Performance of Microfinance Institutions, August 2010. 4. Mahajan, Vijay and Ramola, Bharti Gu pta; (August 2003); ‘Microfinance in India – Banyan Tree or Bonsai’, a Review Paper for the World Bank 5. Donoghue, Kieran et al, (June 2002), unpublished manuscript for AusAID ‘ Interest Rates in Microfinance’ . Porteous, David, of Finmark Trust, South Africa (2003); unpublished paper ‘Is Cinderella Finally Coming to the Ball? † 7. Hatice Jenkins, Commercial Bank Behavior in Micro and Small Enterprise Finance, Development Discussion Paper No. 741, February 2000. 8. Microfinance Institutions Under Interest Rates Ceilings, Denis H. ACCLASSATO, Laboratoired’Economied’Orleans (LEO), Universited’Orleans, Preliminary Version, June 2006. 9. Sinha, Sanjay, (2003); ‘Experience in Selected Countries in South and South East Asia on Regulation and Supervision, and Comparative Interest Rates’

Elements of Romanticism in Wordsworth’s poem

The strong interest in nature, the humble life the preference for the country over city, and the focus on the first persons are all features of Romantic poetry found in this poem. â€Å"Expostulation and Reply† is written in the first person and in simple language. The poem seems conversational in style, making it more appealing to the reader. Even though the story is argumentative in wording, the tone is not angry or even serious. It is rather relaxed. This is probably due to the fact that we should approach it with an open mind and without bias. This poem incorporatesWordsmith's thought that nature was the ultimate teacher. As William was pondering on a stone, Matthew asked him, â€Å"Where are your books? That light bequeathed to beings else forlorn and blind. † Matthew was wanting to know why he was wasting time, when he could be studying books. Matthew stressed the point that books were left by our ancestors for our learning. Matthew goes on to say, † You loo k round on your mother earth, as if she for no purpose bore you;† Clearly, Matthew is misinterpreting the situation. William is looking at mother earth with a purpose to learn.He finds that you can learn better by observing nature than reading another's thoughts on the subject. William is not accepting somebody else's word of knowledge, but he's discovering his own knowledge. I think of William as a symbol of individual thinking (a pioneer), and Matthew as a symbol of society's restriction because he chooses to restrain his knowledge to words on paper. Next, William replies to Matthew. William makes the point that there are things we see that we should pay close attention to because there might be some spirit trying to communicate. In this case, nature is communicating.William says, â€Å"That nothing of itself will come, but we must still be seeking? † When nature is ready to teach us, then we better be listening already. Really I think that in the poem, there is a sen se that nature is constantly teaching. It's Just that we aren't hearing things. Actually, we are hearing things but choosing to ignore the words. After all, Nature did give us ears to listen with, but it is our choice not to listen. Maybe we all have choices, and it's by listening to the details that we make the right choice. I also want to mention Wordsmith's other poem, â€Å"The Tables Turned. Unlike this poem where one person says pick up a book to learn, the speaker says put down your book to learn. The poem says, â€Å"Let Nature be your teacher. † It later goes on to say, â€Å"—-We murder to dissect. † I think that meaner that when men get curious about something, we destroy its natural beauty Just to learn about it. â€Å"The Tables Turned† helped answer questions posed by â€Å"Expostulation and Reply† in Wordsmith's own thoughts and views. When you add the vivid language of â€Å"The Tables Turned,† it ally gives a more colorful, vivid sense of nature and what it has to offer.There's a lot of sensory perception described in the poem. The poem goes on to describe nature as something pure and innocent. I think that's why Matthew didn't understand Williams action; he wasn't in touch with the innocence of nature anymore. Modern society has taken over and left its mark on the culture. Maybe William knew that modern life would overrun nature, and he would learn all that he could before it was gone. After all, no good thing can last forever. These poems reveal a lot about humanity, even though the subject was nature.Human will can drive us to excel in certain aspects. When it comes to learning from the nature around us, we can see or hear something, but it is against our will to learn from it. We, as humans, are drawn to whatever distracts our attention. When it comes to a more passive distraction, we don't notice it. If we did, we'd be smarter because of it. This poem is definitely an example of Romanticism becau se of the humble, peaceful learning that is happening in the poem. It's very different room the way that learning is defined, even today.

The giver Essay Example | Topics and Well Written Essays - 750 words

The giver - Essay Example In this utopian society, everyone looks the same and this has eliminated any form of competition in the society. The society has also eliminated individual choices from the members of the society, and people are given jobs according to their ability. Spouses are also assigned to the members of the society, and two children are assigned to each family. Jonas, the main character in the story on reaching 12 years is selected to occupy the position of the ‘Receiver of Memory.’ This position entails holding all the memories of the time before the sameness was achieved. Jonas upon receiving the memories also receives the gift of knowledge. This causes him to realize the actual situation that the world he is in-he begins to realize that the situation is dystopian as opposed to utopian. He is faced with the option of either running away or staying in a society devoid of any emotions, choices, or knowledge. What initially seemed like a perfect society is revealed to be a restrict ive society in which freedom is taken away from the people. The conversations in the story revolve around the question of individual freedom, and the effect that the withdrawal of freedom has on the society. The text shows how the intent to construct a utopian society can lead to a dystopian one that does not withhold the principles of utopia. Individual freedom is taken away from when the child is born. ... But even those who came up with the idea of sameness knew that they would be forced to refer to the time before the conformity, and as a result, all the memories of life before sameness have been stored. While equality is one of the ideals that are pursued by a utopian society, Lowry’s work shows the effects of such a pursuit, and how that equality and sameness is achieved in the society. The world that has initially seemed inviting is then revealed for what it truly is. Any form of resistance to the system causes the individual to be eliminated (referred in the book as being released) from the society. The book seeks to warn of the concept of utopia through the way that the society treats the concepts of freedom and memory. The collective memories of the society have been suppressed to enable state control. The suppression of memory has been seen to be an effective tool for control. The regaining of the collective or even the individual memory leads to the potential for rebel lion. Without their memories and without access to the collective memories, the citizens in their sameness are convinced that the utopian society that has been created for them is the ideal society for them to exist in. A utopian society is a highly ordered society. There is no deviation from the routine that has been set for the people. In the book for example, there is a set time for the families to have breakfast and during the meal, there is a compulsory sharing of dreams and in the evening during supper, there is a compulsory expression of feelings that is supposedly for the purposes of avoiding the buildup of any form of emotion. The ideals of a utopian state are for every member of the

Monitoring Essay Example | Topics and Well Written Essays - 250 words

Monitoring - Essay Example It may be legal for an employee to make negative comments about their employer over the internet. However, the employer might decide to discipline the employee if they directly post the negative comments in reference to them. Such discipline could amount to the termination of employment and other opportunities in the working environment (Online Privacy: Using the Internet Safely). If the employee defies the ethical concern on confidentiality and discloses confidential information about the employer over the internet, then the employer has a right to terminate their employment. Employers ask for private information about the social web pages of their employees. This is an ethical concern that affects businesses because it amounts to the infringement of the employees’ privacy rights. Such practices might affect the society in a negative manner, as the employers would practice discriminatory recruitment practices. The development of peer-to-peer sharing of files has led to a concern in business ethics (Business & Entrepreneurship). It has led to the illegal transfer of copyrighted content, for instance, the free sharing of software among users. The owners of such software could sue the business as they have defied the terms and conditions stipulated in the usage agreement. "Can My Employer Discipline Me for My Comments Posted on Facebook, MySpace, or My Blog?" - LawInfo. Web. 3 Nov. 2014.

Writer's letter Essay Example | Topics and Well Written Essays - 500 words

Writer's letter - Essay Example Here are my other experiences and the things that I have learnt from writing (Goldberg 45). I would categorize myself as a fiction writer and I enjoy reading fiction. Danielle Steel and Robert Ludlum are my favorite authors and they inspire my writing. I like Danielle Steel’s inclination to writing about friends and family and these have become important influences for me. Robert Ludlum’s tendency towards detective fiction is what I particularly admire about his writing. Essay is the other form that I like especially because of its efficiency in communicating ideas and the freedom it allows a writer in regards to diction, syntax, and content (Goldberg 46). Coursework and assignments make me to write severally in a week, but for pleasure, I write once in two weeks. I have not written for student publication and jobs but I intend to try writing a column in any of the student publications. I feel I have not been writing as much as I would wish because I would want to write daily. I seek to achieve this with the writing log I have developed. The log will help me detect when I am doing too little and when I need to slow down and invite feedback on my writing progress. My friends and tutors are the people who provide feedback on my writing and this feedback has been helpful in improving some my areas of weaknesses (Goldberg 47). Listening to some music in the background while I write is one of the writing rituals that I have developed. Music helps me counter the fright that comes with seeing a blank page in front me waiting for me to start writing. The rhythm of music soothes my mind and stimulates my creativity making ideas to flow logically. Music also helps me counter my disinterest for revision and rewriting. However, even without music and regardless of how daunting revision is to me, I reckon that it is a crucial aspect of my writing and one that

Corporate Governance Lab Report Example | Topics and Well Written Essays - 3250 words

Corporate Governance - Lab Report Example Capital flow seems directed towards the companies, which practice fair and transparent ways of governing their organisations. With the changing global business scenario the need of understanding and effective practise of fair and technologically advance corporate governance has also increased. ICAEW (2002) has explained corporate governance in a very effective and comprehensive manner as " Corporate governance is commonly referred to as a system by which organisations are directed and controlled. It is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relationships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework." The discussion about corporate governance in Enron is based on the hypothesis that it was not the failure of governance mechanisms, which lead, to the collapse of Enron but the perversion of the governance model, which caused the disaster. Essentially, the basic issue was not fraud detection by the auditors but the alleged act of in concealment which done the damage. Nevertheless, there is still no conclusive empirical evidence in the literature about whether and how governance mechanisms influence the performance and the value of the firms; and, about how governance mechanisms interact (in a complementary or substitute way) (Bohern and Odegaard, 2003). Discussion: There has historically been a considerable difference between U.S. and U.K. owned corporations in their management and organisation. U.S. corporations have typically been more centralised, more professionally managed and [have had] more formalised bureaucracy. They have generally been seen as more aggressive and results-oriented. U.K. corporations placed more emphasis on relationships rather than formal controls, and appeared "amateurish" compared to their U.S. counterparts. Recent years have seen a considerable convergence of U.K. management styles with those of the U.S. Many of the largest British multinationals, such as GlaxoSmithKline and BP, have merged with or acquired large U.S. firms, and almost all leading U.K. companies derive substantial proportions of their revenues from the U.S. The differences in management style and culture have become far more nuance. Large British multinationals probably remain more international and cosmopolitan in their outlooks than their U.S. counterparts, slower to act and less inclined to adopt the latest management fads, and less ruthless in dealing with failure and under-performance. However, there is vast industry and firm differences. Both UK and US GAAP require purchase consideration relating to a business combination to be allocated to the net assets acquired at their fair value on the date of acquisition. Intangible assets: Under UK GAAP fair values are assigned to identifiable intangible assets only if the identifiable intangibles are capable of being disposed of or settled separately, without disposing of a business of the entity. Under US GAAP, identifiable assets

Looking Inside Young Minds Essay Example | Topics and Well Written Essays - 1000 words

Looking Inside Young Minds - Essay Example Like 3000 other callers this year, Thelma has contacted an organisation known as YoungMinds. YoungMinds, a national charity, is committed to improving the mental health of babies, children, and young people. Though the hotline is their most visible form of outreach, they function in numerous capacities to help children, parents, and professionals in their goal of helping children. They operate a parent's information hotline, publish numerous pamphlets and leaflets, conduct research, and consult with policy makers and practitioners in the field of child advocacy. YoungMinds, a multi-faceted organisation, offers immediate crisis help as well as research, training, and professional consultation. These extraordinary features make YoungMinds one of the most comprehensive advocates for children available to the general public. To understand the complexity of YoungMinds, it's helpful to follow a single case from the initial contact through to resolution. During Thelma's initial call, the operator gathered information about the child, the living situation, and the problems that confronted the family. After recommending further contact, it was arranged to have a professional call back at Thelma's convenience. ... In this case the professional was able to resolve the situation, but other scenarios may result in a client referral to another appropriate agency. In most cases, this highly effective approach will have given Thelma the tools she needs, as well as written material that will be of value to her Though Thelma's situation had to do with inappropriate violence, YoungMinds delves into numerous problems that children encounter. These issues include many diverse topics such as bullying, self-esteem, substance abuse, and behavioural issues. Issues as far reaching as gambling and eating disorders can be handled by the staff at YoungMinds. In addition, they expand their capabilities by offering training to other mental health professionals that deal with children's issues. Teachers, social workers, and foster caregivers can receive on-site training as well as written material that reflects the most up to date research and findings that affect children's mental health. The written material published by YoungMinds is aimed at children as well professionals and parents. Booklets written for children address issues such as depression, anger, sexual abuse, and coping with a dysfunctional family. They publish guides to advise parents that may be going through a divorce or experiencing other emotional problems. Their regular publication of YoungMinds Magazine covers news, analysis, activities of parliament, opinion, and upcoming events of interest. Many of these publications are available in electronic format at no charge, or may be ordered in print at a small fee. The nominal charge that YoungMinds receives for their printed material simply covers the cost of publication and reproducing. According to their 2005 annual report, eighty percent of their budget, which is less than

Chinese and American Zombies Essay Example | Topics and Well Written Essays - 1000 words

Chinese and American Zombies - Essay Example The way people turn into Chinese or American zombies has certain similarities and differences. When it comes to American zombies, they were created by Voodoo spells. Thus, voodoo priests (through spells) could make the person their slave. Importantly, the concept of slavery has been very strong for Americans and it is the core of the idea of zombies. Another way of turning into a zombie is to be bitten by one. As far as Chinese zombies are concerned, they are created when a person commits a suicide, they are victims of premature burial or they were killed and want to revenge. The major feature of the concept of the Chinese zombie is their desire to â€Å"absorb life essence†. The difference between the two types of monsters is that American zombies eat flesh whereas Chinese zombies absorb souls of people. Major features of zombies also differ in the two cultures. Thus, American zombies walk slowly, they are almost deprived of the ability to think and they only strive to satisf y their hunger for human flesh. Their bodies often deteriorate or even disintegrate. As for Chinese zombies, they can look at living people if they turned into zombies shortly after their death or they can look like horrific monsters if they were dead for a while before becoming undead. Besides, these creatures’ hair and nails keep growing and they hop with their mouths wide open always ready to grasp a person’ soul (Bai 109). Chinese zombies hop and as the name suggests (stiff bodies) they do not move their limbs.

Puplic Opinion and Political Communication - International Political Essay

Puplic Opinion and Political Communication - International Political Communication - Essay Example The September 11 attacks on the World Trade Center prove the universality of the statement that nothing in this world is fireproof. Nothing, and absolutely nothing – is completely free from unprecedented terror. Today, the United States will vouch for that, as Washington has taken all possible damage-control measures to ensure that its people breathe easy. However, unforgettable times can never be erased completely – they can just remain hidden. While the attack on the WTC on September 11 woke America from its complacency, what followed the attack is nothing short of incredulous. The attack affected not just Americans, but also those â€Å"millions of people† all around the world who had depended on America for a better life. Consequently, Washington had to answer its citizens – all of them. The visible damage control measures involved a steady deal of deliberation, a great deal of communication, and a massive amount of persuasion. America’s communication arsenal was put to the finest test – as the country had to answer to visibly all related parties – from citizens to trade partners. The damage was done – when two architectural marvels were torn down – but the damage control required America to sharpen its most potent weapon, and unarguably, the most required weapon – communication. Indeed, intelligent and thoughtful political communication techniques were the only tools that could bail America out of distress. If communication techniques were not up to the mark, America would have lost millions in terms of investment, damage to property, and loss of life. If today, America is again on its feet, it is all thanks to the marvelous communication techniques employed in those times of distress. So, in this research paper, we will attempt to look at the communication angle with respect to 9/11 attack closely. The impact of 9/11 was felt all around the world, and America has so far done a fine job in

Supply and Demand Essay Example for Free

Supply and Demand Essay Chapter 3—Supply and Demand Question 1. Draw a demand curve with an equilibrium price and quantity, show what happens on your diagram when each of the following events occurs. Explain whether each of the following events represents a (i) shift of the demand curve or (ii) a movement along the demand curve. (a) A store owner finds that customers are willing to pay more for umbrellas on rainy days (b) When XYZ Telecom, a long-distance telephone service provider, offered reduced prices for its services on weekends, the volume of weekend calling increased sharply. Question 2. The following table represents the demand and supply for orchids (a type of flower). Plot the curves on the diagram below a) Graph both the supply (S0) and the demand (D0) curves. What is the current equilibrium price and quantity? b) Something has happen to the supply of orchids and the new supply curve is given above. Graph the new supply curve. Is there a temporary shortage or surplus before the market adjusts? What is the new equilibrium price and quantity? c) Name all the factors that could shift the supply curve like it has? Question 3. In the following situation, draw the market for wheat After each event described below, what will happen to the equilibrium price and quantity as a result? Draw a diagram and be sure to label everything. (i) Due to good weather, 1997 was a very good year for Prairie wheat growers, who produced a bumper crop of wheat. At the same time, there is an announcement by the Canadian Health Organization saying that corn is bad for your heart.

The HR policies in multinational companies

The HR policies in multinational companies A critical issue faced by host-country nationals with respect to HR management is the degree to which Multinational Companies (MNCs) include parent HR policies as part of global HR policies (Lawler, 1999). This greatly depends on the company structure, market structure, and its global presence. However, HR policies are affected by various factors that these MNCs need to incorporate once they start operating in host countries. A major factor because of which MNCs incorporate these factors in their HR policies is due to culture; many of the HR policies of MNCs take into account the culture of the host country of which gender is an important factor (Lawler, 1999). If gender discrimination is not appreciated in the host country, companies will need to formulate HR policies accordingly, whereas in countries that discriminate on the basis of gender and is culturally and socially acceptable, then MNCs may or may not formulate policies based on it as then it would be the parent companies discretion as to how they would want to approach the matter keeping in mind the company values and objectives. One way to study the culture of countries and understand how important the issue of gender discrimination is is by examining factors using Hofstedes cultural dimensions. These dimensions are power distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance (Hofstede, 1991). To study the extent to which gender issues affect the HR policies of MNCs, it is more appropriate to look at individualism/collectivism rather than masculinity/femininity; gender issues in the context of HR is more about the degree to which women liberalisation is prevalent in the country rather than how masculine or feminine the culture of the country is. Individualistic cultures focus more on personal accomplishments hence those cultures are more likely to influence MNCs to formulate gender bias-free HR policies when operating in that particular country; the study reveals that in individualistic countries, HR policies of MNCs do not discriminate people on the basis of gender (Lawler, 1999). Globalization The world today has become highly dynamic and competitive; globalisation has become the catchphrase in the business world where policies and strategies are developed as per global competitiveness (Joynt and Morton, 2005). Due to this factor which affects revenue generation and profits of organisations greatly, multinationals try and formulate bias-free policies when it comes to gender. A research was conducted to compare the HR practices in insurance companies of Indian and multinational companies; results showed that Indian companies discriminated salaries and job positions on gender basis; however, in multinationals, this practice was not evident (Kundu and Malhan, 2009). Today, what companies are looking for is a competent skilled employee who is the right person for the job; jobs are not restricted to males or females, rather they are about the right person. Hence, it can be concluded that in multinational companies gender does not affect HR policies if organisations are revolvin g their strategies and corporate objectives around globalisation and are trying to gain corporate and competitive advantage on a global level. European Cases The European Foundation for the Improvement of Living and Working Conditions (2005) studied a number of European corporate cases that included the HR practices of companies operating in Europe. All these examples focus on how important gender has been in being a part of HR policies and finally in achieving corporate objectives. Grupo Texto Editores is a Portuguese company that realised the importance of gender equality and made it a part of its HR policies as the management felt that gender balance was extremely important in order to make the company competitive; this HR policy of the company has won it the Gender Equality and Quality Award by CITE in 2000 (European Foundation for the Improvement of Living and Working Conditions, 2005). According to Mr. Luis Pedro Nunes, Head of Global Human Resources Operations of the group, the companys success is largely due to the gender policy of the group; the HR policies have been built on the principle of hiring the right people and hence it automatically maintains a gender balance in the organisation. Another case that the European Foundation for the Improvement of Living and Working Conditions (2005) has studied with respect to gender and HR policies is that of Nestle. Nestle France has faced major challenges with respect to gender imbalances in the company which has affected its reputation globally. The multinationals HR policies in recruitment and other areas such as training are seen to be highly discriminatory by the union; women are not promoted to senior positions, they are not sent on training, and much of their demands are not addressed by the senior management. This resulted in unbalanced salary structures between men and women, limited training opportunities for women, and very few promotions for women to senior levels. French legislation has passed considerable bills that force firms not to discriminate on the basis of gender; companies with a workforce of over 200 are required to even have equality commissions. Nestle France however falls short in displaying gender quality and hence falls behind other global competitors such as Danone. The management did get concern about the discriminatory practices in the company and hence conducted a survey which showed drastic discrimination against women. Nestle France consequently made changes in its HR policies to tackle this problem and by 2003 the company had female managers in high positions and a female member on its board. Nestle has also put certain mechanisms to ensure gender equality as part of its global HR policy. Nestle France clearly illustrates an example whereby how gender-biased HR policies can affect the reputation of companies. If companies do not address these issues, they fail to gain competitive advantage over other firms, just like Nestle France has lost it to Danone. The Case of Norway Gender greatly affects the reputation of countries because of which they continue including it in HR policy formation. Norway has been given the status of forerunners regarding gender equality in Europe; it is also among the top countries that promote female participation in the workforce. However, the government of Norway, even after these statuses regarding gender equality, realised that the companies operating in Norway did not have much representation of women in leadership positions. To counter this issue, the government encouraged companies to formulate HR policies that give more opportunities to women and increase their role in leadership positions. Another reason they formulated such policies was because the country realised that they are wasting the 50% female population of the country and were not utilising these resources when females could contribute to the society in similar ways as men could. The Ministerial Intervention at the EU Informal Ministerial Meeting on Gender Equality (2008) discussed gender bias-free HR policies as a precondition for building competitive organisations in the global corporate world. The MNCs also saw women as the future and a sign of modernity for them which encouraged them to formulate gender-friendly HR policies. Due to these reasons, the gender balance requirement was set in Norway which was at 40% in all companies. This has proven successful across Norway; hence, it can be concluded that gender does affect HR policies in multinational companies and other companies, especially when countries, as a whole, realise the strategic importance of gender bias-free policies. Gender Pay Inequalities One of the major reasons for gender-based discrimination in MNCs is pay (Blau and Kahn, 2007). Many labor force statistics reveal the existence of gender pay gaps. In the USA, an average woman had to work until April 2008 at the present gap rate in order to earn what an average man earned towards the end of 2007 (The National Womens Law Center, 2008). Likewise, in the European Union, there are a number of MNCs being biased in their HR policies where the matter is related to pay structures. An average full time working woman in the UK would miss approximately  £369,000 in her working life (BBC News, 14.11.2008). At times, women do not even realise that they are being discriminated against on the basis of pay structures; in some cases, women may be aware of the discrimination as per company HR policies; however, they might not consider pay disparities as important when compared to other dimensions of work (Khoreva, 2009). The Global Gender Gap Index Gender, being a discriminatory factor in global HR policies, has become so important in todays globalised world that a need for a Global Gender Gap Index has arisen. Gender greatly affects the HR policies of MNCs, consequently creating gender gaps. The Global Gender Gap Index scrutinises the gap between women and men in four basic yet extremely important areas: economic participation and opportunity, educational attainment, political empowerment and health and survival (The Global Gender Gap, 2008). It can be concluded form the report that the gap has been widening globally as the number of countries with widening gaps in 2006-2007 was 24, where as in 2007-2008 the number was 41 (The Global Gender Gap, 2008). Although countries with narrowing gaps are more than countries with widening gaps, the percentage of improvement is decreasing over the years; from 91% in 2006-2007, the rate has gone down to 87% in 2007-2008 (The Global Gender Gap, 2008). Hence, it is evident that MNCs globally are not addressing gender discriminatory issues in their HR policies as the Global Gender Gap Index is continuously increasing. Conclusion The discussion throughout this paper focused on different factors and reasons that affect HR policy formation; policy formation is not only based on corporate philosophies that promote gender equality or favor women, however there are multiple ways by which gender affects HR policy formation in multinational companies. Gender equality greatly affects HR policies in multinational companies primarily because of the global village the world has shrunk into. The need of the hour is the integration of the entire world where gender plays an extremely important and crucial role. Gender equality has become a prerequisite in developing multinational companies into highly competitive organisations. The world has become so competitive that in order to survive, companies will not just have to include women in its workforce but also invest in their training and development in order to help them reach leadership positions in top management. If companies favour either of the two genders, they will never be able to achieve success levels that organisations having gender bias-free HR policies might have achieved or will achieve in the future. Incorporating gender as a major factor in formulating HR policies especially in multinational companies motivates the local population of the host country. It helps bring the youth of the country, both men and women, together in contributing to society and more by being part of these companies. Finally, equal opportunity policies should be formulated as HR policies of multinational companies so that these companies are able to develop trust between the people of host countries they are operating in and the MNCs as that will facilitate the entire process of global communication and make the world a better place to live and work in.

The Importance of Style :: Writing Writer Style Styles Essays

The Importance of Style If there’s one thing that this class has taught me, it’s that one of the single most important aspect to consider in writing, is that of the style. Style can be defined many ways, whether it be an analysis of oneÂ’s writing proficiency and technical accuracy, or the writerÂ’s voice, and how they bring across their message to the readers. Without style, all writing becomes at least one of two things: a boring, dragging piece whose clipped pace turns the reader totally off, or it becomes so poorly written that the question of the author’s intelligence comes into play while reading the piece. While I could easily say simply that style is the most important aspect of writing, that would be far too much of an oversimplification. There are many individual pieces that make style what it is. In fact, whole books have been written solely on that subject, such as "Style Toward Clarity and Grace" by Joseph M. Williams, or "The Elements of Style" by William Strunk, Jr. and E. B. White. These texts try to pin down exactly what are the key points that make a successful style, as opposed to one not as well crafted, just as the purpose of this essay is. The first thing I think of when I try to define good styles of writing is a knack for grammar and vocabulary. These are the most important aspects of writing when it comes to getting oneÂ’s message across. Without proper grammar, confusion and misinterpretation reign supreme. Strunk and White feature an entire chapter exclusively to the practice of using the correct grammar (Strunk and White chapter 4). Williams, meanwhile feels that the rules are not necessary to dwell on ever, and breaks rules down into three ways: rules that "No native speaker of English has to think about", rules that educated writers only think about "when they see or hear them violated" and finally, rules that are apparently there for grammarians to find faults in writing, and that educated writers generally accept that these rules can be ignored (Williams 176). If nothing else, this dichotomy in policies from several sources is totally indicative of the very nature of writing itself. Writing has existed for thousands of years, and it seems like at least once a generation, the general acceptance of rules, and even which rules are applicable change dramatically.

Macbeth Essay: The Witches Prophecy And WHat They COuld Mean

Macbeth Essay Macbeth is the story of a man who, finding himself faced with a moment of choice, lets the bad side of his nature dominate him. He considers his choices carefully, looks at the alternatives, and deliberately chooses the course he knows to be evil. From this time on he seems unable to turn back to the good side. In the beginning, he starts out at the height of his success and honor, but then follows a long dark path to despair. Macbeth did not make these choices on his own though, there were other supernatural forces swaying his decisions. These forces are three witches who make six prophecies†¦ There are two sets of prophecies, one with three predictions each. One set is in the beginning of the book, and the second set near the end. The first prediction of the first set is ...

My Philosophy of Education :: Educational Teaching Teachers Essays

My Philosophy of Education â€Å"In modern times there are opposing views about the practice of education. There is no general agreement about what the young should learn either in relation to virtue or in relation to the best life; nor is it clear whether their education ought to be directed more towards the intellect than towards the character of the soul†¦Ã¢â‚¬  Although Aristotle wrote that passage more than 2,300 years ago; this is still the argument today. Philosophers, teachers, and educators alike, can create as many methods of teaching as they want. It will always come down to the fact of, which is more important or appropriate and is there a better one. There is never going to be that one perfect method of teaching. This is because each student learns differently. The varieties of methods available are there to suit each individual child. There are those students who need more hands on attention, those who do better with independent study, and those who learn things so quickly and thoroughly they’ll only need to hear a theory once and remember it for the rest of their lives. With all of this in mind, I wish we could stop arguing about which is the best theory or method and utilize them all. I think we should focus on what the children need. We should accept and embrace every method available and use them to the fullest capacity. By exposing a child to several methods of teaching, you could discover which method works best for what children. By accomplishing that discovery, you would then know how to help that child get the most out of his or her education. I am a firm believer that as long as an educator believes that every child has the potential to learn and do something great with his or her life, it’s possible. The greater expectations a teacher has the higher achievement they’ll see. There will always be obstacles and problems preventing children from reaching their potential. It’s an educator’s job to learn how to rise above that and demand excellence. For as long as I can remember it has been a passion of mine to influence people in a good way. Causing someone to smile, if even for just a second, has the ability to make my day ten times better.

The Return: Midnight Chapter 37

Then Meredith saw something that was not smoke or fire. Just a glimpse of a door frame – and a tiny breath of cool air. With this hope to sustain her, she scuttled straight for the door to the backyard, dragging Isobel behind her. As she passed the threshold, she felt blessedly cold water somehow showering down onto her body. When she pul ed Isobel into the spray, the younger girl made the first voluntary sound she had during the entire journey: a wordless sob of thanks. Matt's hands were helping her along, were taking away the burden of Isobel. Meredith got up to her feet and staggered in a circle, then dropped to her knees. Her hair was on fire! She was just recal ing her childhood rehearsal of stop, drop, and rol , when she felt the cold water turned on it. The hose water went up and down her body and she turned around, basking in the feeling of coolness, until she heard Matt's voice say, â€Å"The flames are out. You're good now.† â€Å"Thank you, Matt. Thank you.†Her voice was hoarse. â€Å"Hey, you were the one who had to go al the way to the bedrooms and back. Getting Mrs. Saitou out was pretty easy – there was the kitchen sink ful of water, so as soon as I cut her free from the kitchen chair we just got al wet and dashed outside.† Meredith smiled and looked around quickly. Isobel had become her responsibility now. To her relief, she saw that the girl was being hugged by her mother. And al it had taken was the nonsense choice between a thing – however precious it was – and a life. Meredith gazed at the mother and daughter and was glad. She could have another stave made. But nothing could replace Isobel. â€Å"Isobel said to give this to you,†Matt was saying. Meredith turned toward him, the fiery light making the world crazy, and for one moment didn't believe her eyes. Matt was holding the fighting stave out to her. â€Å"She must have dragged it with her free hand – oh, Matt, and she was almost dead before we started†¦Ã¢â‚¬  Matt said, â€Å"She's stubborn. Like someone else I know.† Meredith wasn't quite sure what he meant by that, but she knew one thing. â€Å"We'd al better get to the front yard. I doubt the volunteer fire department is going to come. Besides – Theo – â€Å" â€Å"I'l get them moving. You scout the gate side,†Matt said. Meredith plunged into the backyard, which was hideously il uminated by the house, now ful y engulfed in flames. Fortunately, the side yard was not. Meredith flicked the gate open with the stave. Matt was right behind her, helping Mrs. Saitou and Isobel along. Meredith quickly ran by the flaming garage and then stopped. From behind her she heard a cry of horror. There was no time to try to soothe whoever had cried, no time to think. The two fighting women were too busy to notice her – and Theo was in need of help. Inari was truly like a fiery Medusa, with her hair writhing around her in flaming, smoking snakes. Only the crimson part burned, and it was that part that she was using like a whip, using one snake to wrest away the silver bul whip from Theo's hand, and then another to wrap around Theo's throat and choke her. Theo was desperately trying to pul the blazing noose from her neck. Inari was laughing. â€Å"Are you suffering, petty witch? It wil al be over in seconds – for you and for your entire little town! The Last Midnight has final y come!† Meredith glanced back at Matt – and that was al it took. He ran forward, passing her, al the way up to the space below the fighting women. Then he bent slightly, cupping his hands. And then Meredith sprinted, putting everything she had left into the short run, leaving her just enough energy to leap and place one foot into Matt's cupped hands, and then she felt herself soaring aloft, just within distance for the stave to slice cleanly through the snake of hair that was choking Theo. After that Meredith was in free fal , with Matt trying to catch her from below. She landed more or less on top of him and they both saw what happened next. Theo, who was bruised and bleeding, slapped out a part of her gown that was smoldering. She held out a hand for the silver bul whip and it flew to meet her outstretched fingers. But Inari wasn't attacking. She was waving her arms wildly, as if in terror, and then suddenly she shrieked: a sound so anguished that Meredith drew in her breath sharply. It was a death-scream. Before their eyes she was turning back into Obaasan, into the shrunken, helpless, dol -like woman Matt and Meredith knew. But by the time this shriveled body hit the ground it was already stiff and dead, her expression one of such unrepentant malice that it was frightening. It was Isobel and Mrs. Saitou then who came forward to stand over the body, sobbing with relief. Meredith looked at them and then up at Theo, who slowly floated to the ground. â€Å"Thank you,†Theo said with the faintest of smiles. â€Å"You have saved me – yet again.† â€Å"But what do you think happened to her?†Matt asked. â€Å"And why didn't Shinichi or Misao come to help her?† â€Å"I think they al must be dead, don't you?†Theo's voice was soft over the roar of the flames. â€Å"As for Inari – I think that perhaps someone destroyed her star bal . I'm afraid I was not strong enough to defeat her myself.† â€Å"What time is it?†Meredith abruptly cried, remembering. She ran to the old SUV, which was Stillrunning. Its clock showed 12:00 midnight exactly. â€Å"Did we save the people?†Matt asked desperately. Theo turned her face outward toward the center of the town. For nearly a minute she was Still, as if listening for something. At last, when Meredith felt that she might shatter from tension, she turned back and said quietly, â€Å"Dear Ma ma, Grand mama, and I are one, now. I sense children who are finding themselves holding knives – and some with guns. I sense them standing in their sleeping parents'rooms, unable to remember how they got there. And I sense parents, hiding in closets, a moment ago frightened for their very lives, who are seeing weapons dropped and children fal ing onto master bedroom floors, sobbing and bewildered.† â€Å"We did it, then. You did it. You held her off,†Matt panted. Stillgentle and sober, Theo said, â€Å"Someone else – far away – did much more. I know that the town needs healing. But Grand mama and Ma ma agree. Because of them, no child has kil ed a parent this night, and no parent has kil ed a child. The long nightmare of Inari and her Last Midnight is over.† Meredith, grimy and bedraggled as she was, felt something rise and swell inside her, bigger and bigger, until, for al her training, she couldn't contain herself any longer. It exploded out of her in a yel of exultation. She found that Matt was shouting too. He was as grubby and unkempt as she was, but he seized her by the hands and whirled her around in a barbarian victory dance. And it was fun, whirling around and yel ing like a kid. Maybe – maybe in trying to be calm, in always being the most grown-up, she had missed out on the essence of fun, which always felt as if it had some childlike quality to it. Matt had no trouble in expressing his feelings, whatever they were: childlike, mature, stubborn, happy. Meredith found herself admiring this, and also thinking that it had been a long time since she'd real y looked at Matt. But now she felt a sudden wave of feeling for him. And she could see that Matt felt the same way about her. As if he'd never real y looked at her properly before. This was the moment†¦when they were meant to kiss. Meredith had seen it so often in movies, and read about it in books, that it was almost a given. But this was life, it wasn't a story. And when the moment came, Meredith found herself holding Matt's shoulders while he held hers, and she could see that he was thinking exactly the same thing about the kiss. The moment stretched†¦ Then, with a grin, Matt's face showed that he knew what to do. Meredith did too. They both moved in, and hugged each other. When they drew back, they were both grinning. They knew who they were. They were very different, very close friends. Meredith hoped that they always would be. They both turned to look at Theo, and Meredith felt a pang in her heart, the first since she had heard they'd saved the town. Theo was changing. It was the look on her face as she watched them that gave Meredith the pang. After being young, and while watching youth at its peak, she was once again aging, wrinkling, her hair going white instead of moonlit silver. At last, she was an old woman wearing a raincoat covered with bits of paper. â€Å"Mrs. Flowers!† This person, it was perfectly safe and right to kiss. Meredith flung her arms about the frail old woman, lifting her off her feet in excitement. Matt joined them, and they boosted her above their heads. They carried her like this to the Saitous, mother and daughter, who were watching the fire. There, sobered, they put her down. â€Å"Isobel,†Meredith said. â€Å"God! I'm so sorry – your home†¦Ã¢â‚¬  â€Å"Thank you,†Isobel said in her soft, slurred voice. Then she turned away. Meredith felt chil ed. She was even beginning to regret the celebration, when Mrs. Saitou said, â€Å"Do you know, this is the greatest moment in the history of our family? For hundreds of years, that ancient kitsune – oh, yes, I've always known what she was – has been forcing herself upon innocent humans. And for the last three centuries it has been my family line of samurai mikos that she has terrorized. Now my husband can come home at last.† Meredith looked at her, startled. Mrs. Saitou nodded. â€Å"He tried to defy her and she banished him from the house. Ever since Isobel was born, I have feared for her. And now, please forgive her. She has trouble expressing what she feels.† â€Å"I know about that,†Meredith said quietly. â€Å"I'l go have a little talk with her, if it's All right.† If ever in her life she could explain to a fel ow traveler what fun having fun was, she thought, it was now.

Making a killing: Hong Kong photo exhibition Essay

Photographer David Chancellor offers a unique and often visceral insight into South Africa’s hunting safaris in his exhibition â€Å"The Game is Killing the Game†. Hosted by The Salt Yard, an arts space in Kwun Tong, the photo series calls for a reflection on hunting for sport when many species are in decline. Animal lovers will find some of the images in the exhibition distressing. In one shot the severed head of a lioness can be seen placed in a cardboard box, her jaws locked open with teeth bared, gaze transfixed. In another, a giraffe has fallen to the ground in a crumpled heap, after being shot by a hunter. Chancellor was born in London but lives and works in South Africa. The three times Nikon photographer of the year and World Press Photo award winner spent up to 10 days at a time embedded with hunters to capture the images. â€Å"It’s impossible to work clandestine,† he told the Los Angeles Times last year. â€Å"I realised very quickly that you n eed to embed with the hunting party – sleep, eat and breathe the hunt. All the portraits are taken immediately after the hunter has killed. It’s impossible to duplicate that emotion which is ultimately read subliminally by the viewer of the work.† The exhibition comes as African and US politicians meet this week in Washington, with wildlife conservation high on the agenda. US Interior Secretary Sally Jewell said about 20,000 elephants were slaughtered in Africa last year, while about three rhinos were killed every day in South Africa alone. â€Å"This hugely profitable illicit activity generates billions of dollars in revenue every year, fuelling growth in international criminal syndicates and reversing decades of hard-won conservation gains across the continent,† Jewell said. [The Sun News] WASHINGTON Jiangsu couple with a group tour with his son to visit Hong Kong, yesterday morning, Hung Hom, with tours to a jewelery store shopping, mainland women refused shopping period, and to guide the requirements to continue the trip, only consumption of at least two thousand people wanted her to make arrangements Yuanshi, when both theories, mainland women fear being attacked police said. Police officers arrived at the scene  after mediation, the two sides reach an agreement, a family of three â€Å"cut† from the group trip, the trio set out by the police rushed to MTR Hung Hom Station, self drive back to the mainland. Hung Hom Station police rushed back to the mainland The men allegedly forced shopping victim surnamed Su, peer wife surnamed Li (forty years old), son of about ten. Su said that a person participated in the mainland tour groups to Hong Kong to play four days, three days before the arrival yesterday to play for two days.Eleven o’clock yesterday morning, the tour by the surname Chen (39) male guided to a jewelry store shopping Lok Street, during Li Fu Chen made no intention to shopping and want to continue their journey to another place Chan visits, but rejected, and Lee was asked at least two thousand women in the shop Yuanshi consumer can make arrangements, Li wife and husband flatly refused and said I do not know when to participate in the trip must be shopping. But someone at the scene said the tour itself has indicated shopping trip, probably a misunderstanding of the Soviet Union took part in the tour, it caused a dispute. Catfight between the two parties, Li women cry more excited, and said fear of someone brute force, then call the police for help. Police officers arrived at the scene investigation, found no wounded, no other group members received complaints from police questioning and mediation to Chen and Su family of three, the immediate family of three from the group is willing to exit the remaining two days of the trip, the final event been resolved. Since the Soviet one is not familiar with Hong Kong traffic, do not know how to ride back to the mainland, and finally by the police sent them to MTR Hung Hom Station, take the MTR own return to the Mainland.

A Civilized Society

A Civilized Society What is the meaning of a society? A historian might say a society is a group of people living in an ordered community that has a hierarchy. An adult might say that a society is a community of people that have certain jobs and a community that has schools for their children to go to. A child might not even know what the meaning of society is. Their answers differ because there is not a book written in history that clearly defines what a society is. But when â€Å"society† is narrowed down into â€Å"civilized† society, it is here that agreements are distinguished.Most people agree that the time and place they live in at this present moment is civilized, even though spirits are still believed in. This also means that time periods that are not considered â€Å"civilized† in today’s terms, are considered civilized to the people living in that time period. In the book Beowulf, a book written in the seventh or eight century by an anonymous au thor, there are two societies, the Danes, who reside in Denmark, and the Geats, who reside in southern Sweden.This book is named after a person; not surprisingly, this person is named Beowulf, a Geat who later becomes the king of the Geats. The Anglo-Saxon society in the book Beowulf is civilized because they believe in monsters and their leaders and group members have clear expectations. One might be surprised that a civilized society believes in monsters, however, even societies today believe in monsters through television. Societies today create horror movies purely for entertainment; however, it is a known fact that the monsters in the horror movies are not real.On that note, the anonymous author of Beowulf may have written the book purely for the entertainment of his people, all the while knowing that monsters do not exist, after all, it is probably the closest thing his society has to watching a horror movie. Grendel, the first monster Beowulf fights, is â€Å"conceived by a pair of those monsters born of Cain (105-106). † This is physically impossible because Cain is a human and Grendel is an actual monster in the book.Another fact that Beowulf was written for entertainment purposes is the fact that the author uses suspension of disbelief, meaning that the readers believe things that are impossible in real for the sake of enjoying the book. For example, â€Å"[Beowulf] sank through the waves†¦(1495)† â€Å"for hours†¦(1495)† to fight Grendel’s mother, â€Å"the mighty water witch (1519). † This is an example of suspension of disbelief because it is physically impossible for a human to swim under water for hours without breathing.The Anglo-Saxon society is a civilized society because while today’s society creates horror movies for entertainment, the author creates the book, Beowulf, for the entertainment of his people. As stated above, a society is a community of people that have certain jobs they must perform. This definition of a society is a factor of what a civilized society is. In Anglo-Saxon culture, a leader and his comitatus have clear expectations. In today’s society, a leader leads the country and commands his people through the office of the prime minister.However, a leader in Anglo-Saxon culture does a little more than leading his country and commanding his people. In the book, Beowulf, there are two main leaders: Hrothgar (a Danish king) and Beowulf. These two leaders have the responsibility of bringing glory for their country. When Hrothgar took the throne after his father, he â€Å"led the Danes to such glory that comrades and kinsmen swore by his sword (65-66). † Beowulf brings glory to his country by killing Grendel, the beast that has been haunting Herot for a long time, and by killing Grendel’s mother, â€Å"the mighty water witch (1519). Then when Beowulf becomes the king of Geatland, he â€Å"†¦held it long and well (2208). †A s a leader has responsibilities, group members also have their responsibilities. In today’s society, they are responsible of helping each other, but sometimes they do not always carry out the task. However, a comitatus in Anglo-Saxon society have the responsibility of helping the leader when he needs help. There was only one comitatus in Beowulf and they are Beowulf’s men. Beowulf’s comitatus are by his side during his three battles. However, Beowulf’s comitatus was readily available to help him in one out of the three battles.During the battle with Grendel, â€Å"all of Beowulf’s/Band had jumped from their beds, ancestral/Swords raised and ready†¦(795-796). † This is only battle that Beowulf’s comitatus is readily available in to help. During Beowulf’s battle with Grendel’s mother, the Danes left the swamp thinking Beowulf had died, but â€Å"the Geats stayed, sat sadly, watching,/Imagining they saw their lord but not believing/ They would ever see him again(1602-1603). † It is here that we start to see that the role of the comitatus start to change because the comitatus are at shore while Beowulf was under water, so, if Beowulf eeded their help, they would not be able to help him. In Beowulf’s last battle, the battle against the dragon, â€Å"none of his comrades/ Came to him, helped him (2596-2597)† when Beowulf could not fight the dragon alone, they also ran away for their lives. At this point in the story, the role of a comitatus is no more. The Anglo-Saxon society is civilized only when the leaders and team members, the comitatus, carry out responsibilities. The Anglo-Saxon society is civilized because they believe in monsters through stories, and their leaders and comitatus have responsibilities, although sometimes the comitatus do not perform their responsibility.It is because they do not perform their duty in the battle with the dragon that the age of warriors end s. One can argue that the age of warriors is a civilized time period, however, when the comitatus ran away from the battle, it is there that signs of an uncivilized civilization is seen. Therefore, it can be said that â€Å"now the giving of swords, of golden/ Rings and rich estates, is over,/ Ended for you and everyone who shares/ Your blood: when the brave Geats hear/ How you bolted and ran none of your race/ Will have anything left but their lives(2884-2888). †