The Global Financial Crisis On Gcc Countries Economics Essay

The Global Financial Crisis On Gcc Countries Economics Essay The global financial crises that erupted in 2008 affected all countries, rich and poor, to varying degrees, worldwide (Iqbal 2008). Financial markets around the world became more volatile and the economic slowdown created a ripple effect beginning with the United States and Europe into several more economically integrated countries (Nabibi 2009). In a short span of time, severe economic losses were reported by banks, real estate, and equity markets. Blackstone chief executive officer (CEO) Steve Schwarzman stated in the Davos World Economic Forum that the global economic meltdown destroyed 40 percent of the worlds wealth (Conway 2009). The crisis began in September 2007 and concentrated in US real estate termed as the subprime crisis and eventually developed into what economists called the credit crunch in 2008 (Nabibi 2009). As American and European banks incurred losses because of exposure to sub-prime assets, their capital was reduced and affected their capacity to lend. Moreover, corporate and household borrowers began to deleverage (Al Maraj 2008). As major financial institutions went bankrupt and household wealth eroded, investor and consumer confidence went down significantly (Woertz 2008). Quick policy responses from governments of the West was able to prevent their economies from plummeting into depression, but the U.S. experienced one of its worst recessions since the Second World War (United Nations 2009a). While economists have said that no country was spared as a result of the global financial crisis, the effects were disparate among different economies. For instance, the more severe losses were exper ienced by highly integrated economies and had minimal impact on Arab economies which are less integrated (Behrendt, Haq and Kamel 2009). However, the global economic slowdown also resulted to the decline in demand for oil, which claims a significant chunk in the exports of countries composing the Gulf Cooperation Council or GCC (Nabibi 2009). The initial impact of the crisis was the sudden plunge of oil prices, coupled with the depletion of half of local stock markets by half, and the loss of value of investments in the global market. The decrease in oil prices affected the oil-exporting GCC countries which are also the most globalized in the region (Fakir 2009). The domino effect came later unemployment, decline in remittances, reduced government income, reduced trade and investment and reduced social service allocations (United Nations Development Programme [UNDP] 2010). On the other hand, GCC decision makers and finance ministers have reiterated that strict monetary oversight ha s shielded their economies from the worst effects of the global crisis (Tzannatos 2009). The finance ministers stated that the abundant liquidity is enough to assuage investor concerns and highlight the stability of the monetary system of the GCC (Al Jazeera 2008).   Nevertheless, these effects cannot be generalized for all the GCC countries given their diversity (Nabibi 2009). Countries that are more exposed to global capital, investment and consumption demand face a greater risk of being affected by the crisis than others. For instance, Dubai in the UAE, which depend heavily on international capital, tourism and real estate, seems to be more adversely affected than other countries. On the other hand, Saudi Arabia, which has only 25 per cent foreign workers compared to much higher proportions in the other GCC economies might be much less affected than others (Rajan and Narayana 2009). The crisis seems to have visibly hit the GCC economies in the beginning of 2009. However, both the depth and intensity of crisis and the possibility of turnaround are not clear. This paper examines the impact of the global financial crisis on the six countries who are members of the Gulf Cooperation Council (GCC): Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). 2 Objectives This study seeks to: 1. Assess the impact of the recession on key industries in the GCC economies; 2. Assess the impact of the recession on employment and other social services; 3. Identify the measures undertaken by various stakeholders to mitigate the adverse effects. 3 Topic Area The central topic of this study is the 2008 global financial crisis, which is one of the most significant economic phenomena that caused turmoil in countries all over the world. To some economists, it demonstrated the volatility and instability of increasingly integrated economies under a globalized world. As many have observed, the countries which were greatest hit by the crisis were those which were highly globalized (Nabibi 2009).    The implications of the crisis for the GCC are significant. In the Arab region, GCC countries are the most globalized, so logically, the erosion of corporate wealth in the US and Europe would have an accompanying impact on the GCC economies. Indeed, as the World Bank (2009) and the International Labour Organization (ILO) studies have shown, stock markets in all of the GCC countries experienced a significant decline because of the withdrawal of investment from foreign financial institutions. Moreover, privately-funded and domestic projects have been cancelled or abandoned, resulting to a great number of people being laid off and without jobs (Tzannatos 2009; Rajan and Narayana 2009). Despite pronouncements from government decision makers, the effects of the downturn on GCC economies seemed evident (Woertz 2008). Many organizations such as the World Bank and the ILO conducted impact assessments to determine the effect of the financial crisis on trade and industry in the GCC (Iqbal 2008 ). Understanding how it impacts the GCC economies and determining the effectiveness of the policy responses by governments shed light on how best to strengthen economies to mitigate the effects of the global financial crisis. After all, it seems certain that the global financial crisis of 2008 was not the first to its kind and will not be the last. 4 Literature Review   Studies and statistics assessing the impact of the global financial crisis on Arab countries have mixed results. Some have stated that the impact, while present, has been minimal (Behrendt, Haq, and Kamel 2009; Khamis 2010) while others have hypothesized of a more lingering adverse impact for oil-exporting economies such as those in the GCC (Nabibi 2009; Bloomberg 2010). The initial pathway for the effects of the crisis to become transmitted into the GCC was its financial markets. It began with the regional stock markets characterized by high volatility. Financial institutions as well as real estate developers, which comprise among the largely publicly-listed corporations in the GCC were adversely affected, especially Dubai (Nabibi 2009). Moreover, due to real estate speculations effect of increasing defaults on mortgages, many commercial banks in the Middle East region were hurt. Despite having a limited exposure to the global financial markets, banks in GCC countries maintained large investments and loaned very large sums to private entities for the purpose of investment (Center for Strategic Research 2009). As stock prices plummeted, several banks experienced massive default loans and loss of asset values (Khamis 2010). Although the banking sector experienced shock waves, the Islamic banks on the other hand were insulated (Iqbal 2008). Because the y are protected from toxic financial assets and prohibit speculation, the first impact of the global financial crisis shielded them. In addition, sovereign wealth funds (SWFs) also suffered heavy losses as a result of the global financial crisis. The heavier losses were recorded by those which have significant investments in the US stock market, financial institutions, insurance companies, and banks. Estimates put losses at over 200b USD for the year 2008 alone (United Nations 2009b). Aside from the financial sector, the effects of the global financial crisis have also impacted the real economy (Woertz 2008). In real estate, projects which are ongoing or are in the planning stage are likely to be suspended because of financial squeeze. Financing for large construction projects will not be so feasible. This is why one of the largest-hit of the global financial crisis is Dubai where the real estate sector is heavily dependent on speculation and debt financing (Rajan and Narayana 2010). Revenue generation among countries has also generally decreased. Figures from the ILO in 2009 reveal that real GDP growth has shrunk from 6 percent in 2007 to 4 percent in 2009. There is great indication that the crisis will have a more sustainable effect on the region within the years to come. Moreover, due to high inflation, increasing national debt, and prolonged volatility of markets will render more GCC countries vulnerable to the economic slowdown (Center for Strategic Research 2009). Analysts have been keen to point out that the significant drop of oil prices and demand for oil will be the biggest obstacle for the GCC economies. From a barrel price of 140USD in July 2008, oil prices have dropped to merely 40USD per barrel in January 2009. This significant drop increases the threat of negative fiscal balances for Oman, Bahrain and Saudi Arabia due to losses in oil revenue. Hence, the projected growth among GCC countries may be set back a few years more because of downward trend of oil prices (Behrendt, Haq, and Kamel 2009). The slowdown of the European economy may also force GCC countries to reduce production, which will eventually lead to further decline of real GDP in oil-exporting countries (Bloomberg 2010). Saudi Arabia was also severely hit, with its GDP down from 4.2 percent in 2008 to 0.7 percent in 2009 (United Nations 2010a, p. 74).Moreover, without sound governance, the current practice of oil-exporting countries of maintaining high fiscal spending despi te declining oil revenues will further hamper growth (Nabibi 2009). Analysis and predictions over the impact of the global financial crisis on the GCC economies are mixed. While they unanimously state that the global crisis has had an adverse effect on GCC countries, some have stated that the impact is negligible (Khamis 2010) and is not adverse enough to threaten the stability of the region. Behrendt, Haq, and Kamel (2009) opined that the GCC economies are in a relatively well position and can ably cope with the challenges of the global economic turmoil because of many reasons. Firstly, the GCC region has abundant liquidity from incomes out of high commodity prices. Secondly, sound economic management has enabled GCC economies to weather the economic slowdown quite well. Thirdly, the economies of GCC countries are weakly integrated to the global economy as compared to other regions. Smith (2008) said that while there have been negative effects experienced by GCC economies, they are manageable compared to what has been suffered by other countries. The effects of the global financial crisis have also been diverse in degree. For instance, the Oxford Business Group (2009) opined that by and large, the banking sector in Saudi Arabia has demonstrated a high degree of resilience and was insulated from the problems which confronted commercial banks in other GCC countries. Moreover, the Saudi economy in general was found to better than other countries to avoid any negative impact (p. 61) on the following grounds. First, Saudis banks have focused on domestic demand, thereby keeping exposure to the US subprime assets at arms length. Second, Saudis mortgage industry is relatively underdeveloped, and therefore a minimal impact on its real estate sector was experienced in comparison to other GCC countries. Thirdly, the sector still maintains a large and underbanked deposit base to draw from (Oxford Business Group 2009). Among the GCC economies, the UAE has been the most affected by the crisis. Between 2008 and 2009, real GDP growth fell from 7.4 to 0.5 percent. This was due to a severe contraction in domestic demand, notably in Dubai. In the UAE, the real estate sector represents 16 percent of GDP, so the slowdown in this sector had a severe impact on growth. Around 80 percent of Dubais workforce is composed of expatriates, and due to the layoffs, consumption has been significantly reduced (United Nations 2010a, p. 73). GCC economies responded to the effects of the global crisis by adopting measures and policies to mitigate its adverse consequences. Most GCC countries reproduced the policy responses of Western governments such as fiscal stimulation and stricter financial guidelines and regulations. The responses varied relatively depending on the circumstances of their economy. As the first impact of the global crisis directly hit financial institutions and the stock markets, GCC countries first policy responses was directed at supporting the banking sector by providing liquidity and credit support. Oil exporters such as Saudi Arabia, Kuwait, and the UAE fortified their banking systems by providing deposit guarantees for commercial banks (Woertz 2008). The effects of the global financial crisis on the banking sector have been buffered by several policy measures undertaken by GCC governments and their central banks. Some of the key measures taken since early September 2008 are as follows: reducing the Repo rate four-fold from 5.5 to 2.5 percent, reducing capital reserve requirement for banks, and injecting 3bUSD to enhance liquidity (Saudi Arabia); reducing Repo benchmark to 1.5 percent, injecting 32b USD in the financial and banking sector to ensure liquidity (UAE); reducing discount rates by 50 percent and guaranteeing of deposits (Kuwait) (Iqbal 2008). 5 Research Questions   The central question which this study answers is: What is the impact of the global financial crisis on the GCC countries? The following sub-questions will also be addressed, to wit: 1. What effect did the global financial crisis have on the financial markets, export demand, and government revenue in GCC countries? 2. How did the global financial crisis affect social indicators such as poverty and unemployment in GCC Countries? 3. What policy responses were made by GCC countries to counter the effects of the financial crisis? Research Hypotheses 1. The global financial crisis had a negative impact on the financial markets, export demand, assets, tourism, and remittances in the GCC countries. The impact of the crisis however went at varying degrees across countries. 2. The crisis led to an increase in unemployment and to the decrease of budget allocation for social services. 6 Methodology Overview of approach   This study follows a mixed-methods approach combining qualitative and quantitative methods of data collection and data analysis in order to achieve its goals. Because this study wants to determine the impact of the global financial countries on the economies of the GCC countries, the use of statistics is indispensable. Hence, the use of statistical evidence and the analysis of statistical data will form the bulk of the quantitative aspect of this study. The use of quantitative methods will provide generalization and predictions which are important to this study. On the other hand, there is a need to give the study a more in-depth character in order to fully understand the impact of the global financial crisis in its own context (Strauss and Corbin 2003). It is assumed that statistical research may not be able to take into full account the effects of the financial crisis. In order to have the best of both paradigms, qualitative and quantitative approaches are combined in this research in order to provide insights that neither approaches alone can provide (Patton 2005). Data Collection   Qualitative and quantitative forms of data will be gathered for the purposes of this study. 1. Key informant interviews Key informant interviews are qualitative in-depth interviews with individuals who are knowledgeable about the topic of interest. The purpose of conducting key informant interviews is to gain access to information which people who have first-hand knowledge only possess. In the context of the research objectives already outlined, key informant interviews can provide information about how the global financial crisis has affected GCC countries from a limited number of economic analysis or experts who have been able to observe and track the consequences of the global financial crisis in their respective countries. In particular, five (5) key informant interviews will be conducted. Participants will be individuals who are highly qualified to provide information about the effects of the global economic crisis: professors, economic analysts, or business experts. Face-to-face interviews or Internet correspondence will be conducted. Interviews will be transcribed and interpreted accordingly. 2. Statistical reports and other documentary evidence As stated earlier, the use of statistical data is indispensable to this study. To track the effects of the global financial crisis on key areas of the six GCC economies, official reports and statistics from authoritative sources will be used such as the World Bank, International Labor Organization, the OECD, and International Monetary Fund. Moreover, secondary sources such as newspaper articles, in-house reports, and other pertinent documents will be used to verify or illuminate findings. Data Analysis   Data from the key informant interviews will be analyzed for recurring themes, patterns, and ideas. Statistical data from reports and documentary evidence will be analyzed using descriptive statistics. Interpretation   Because qualitative data tends to be subjective, findings from the key informant interviews will be cross-checked and verified with secondary sources. In order to reduce the probability of bias, results from the interviews will be substantiated with findings from statistical analysis performed on the reports and documentary evidence. 7 Expected Results   Out of the mixed-methods approach that this study will undertake in determining the impact of the global financial crisis, the following results are expected: 1. A detailed presentation of the key economic and social indicators in significant areas of six GCC countries highlighting improvement or decline; 2. An in-depth presentation of interview findings from well-known and expert informants that will substantiate or illuminate on the findings from statistical sources. 3. Key policy responses made by governments are identified and recommendations for improvement are also outlined.

Privatization In Russia Essay -- essays research papers

For some, the privatization of Russian industry has been one of the great success stories of Russia’s painful economic transition: quick, firm and radical action was taken to shift the great bulk of Russian industry out of state hands, thereby laying the basis for a radical restructuring of enterprises and improvements in their performance. Others see privatization as a best a failure, at worst a catastrophe. Not surprisingly those opposed to the market and economic reform as a whole share this view. But many commentators who see themselves as supporters of reform find plenty in Russian privatization to criticize: the process led to the transfer of ownership to inappropriate people and as a consequence no beneficial restructuring of enterprises or the economy can be expected. While this paper will attempt to cover the three key facets of privatization: that enterprises be transferred to private ownership; that the new owners be able de jure and de facto to exercise ownership rights; and, finally and ultimately most importantly, that the new owners exercise their ownership rights in such a way as to bring about improvements in enterprise performance. The key issues to be surveyed, therefore, are: who as a result of privatization obtained ownership of Russian industrial assets, and are they appropriate owners; can new owners, particularly if they are appropriate owners, exercise their ownership rights; and has privatization led to improvements in enterprise performance? The paper will deal with privatization only within the industrial sector; thereby ignoring the highly controversial privatization’s of the last twelve months or so in the energy and utility sectors. Who are the new owners? Global data showing about 70% of GNP being produced in the private sector reflects the high levels of privatization of industrial enterprises, with the great bulk of enterprises having been privatized by mid-1994. However privatization does not necessarily mean the complete removal of the state from an equity involvement in enterprises. State ownership. The state retains shareholdings in a significant number of privatized enterprises on the basis of government decrees declaring the ‘strategic significance for national security’ of the enterprise. Shareholdings range from 20 to 51 per cent or a Golden Share (a single share giving veto rights over certain strategic iss... ...nagers does not stand up. The indications are that they knew what they were doing and judged that outside owners would eventually assert themselves. Gradually they are doing so, and gradually they are improving their ability to exercise and enforce their ownership rights. Sometimes they are doing so in ways that are no less reprehensible than the methods of the manager-owners. There are also reasons to be concerned about the long-term consequences of the sort of bank-dominated and highly integrated ownership that many of the outsiders have brought. The best that can be said at this stage is that all modern economies have at their peak a corporate sector dominated by large integrated institutions. Clearly the private sector, and thereby privatization, has to bear some responsibility for an economy in which it has a 70% share but which is unable to provide in anything like adequate proportions growth or welfare. But in this there are other factors also at work. Indeed there are some small indications, at both macro- and micro-levels, of a positive correlation between private ownership and good performance. With time that correlation could well become stronger and more evident.

A critical study on the contributions of sir henry maine

Whereas Savings and his followers invoke history in the name of tradition, custom and nation against the belief n conscious and rational law making, the second movement, which one might call philosophical histories, develops a definite legal philosophy from the evolution of history. L The exponents of the historical school of Jurisprudence take social institution in their sequence with primacy to primitive legal institutions of society. Thus the school does not attach importance to relation of law to the state but gives primacy to the social institutions in which the law develops itself.While the analytical school pre-supposes the existence of a well developed legal system, the historical school concentrates on the evolution of law from the primitive legal institutions of the ancient communities. The task of Historical school is to deal with the general principles governing the origin and development of law and with the influences that affect the law. The 19th century analytical posi tivism pioneered by Austin, Hart and Keelson in England described law as a coercive command issued by the sovereign devoid of moral or cultural values.They regards law as a creation of arbitrary creation whose sanctions are not embedded in its historical past but emanate from the state authority. It treats law as a command of the state which the subjects are bound to obey, the disobedience of which would lead to penal consequences. The revolutionary ideas generated by positivistic legal thinking had a 1 Legal theory by W. Friedman, fifth edition, page no. 209, universal law publishing Co. Ltd. , New Delhi devastating effect as they failed to meet the needs of the people.Consequently, it led to the emergence of new approach to the study of Jurisprudence based on history and historic conception of law. Historical Jurists banished ethical considerations from resurgence and rejected all creative participation of Judge and Jurist or law-giver in the making of law. They propounded the vie w that all universal ideal principles of by historical study. Frederick Pollock, one of the ardent supporters of historical school firmly believed that morals, as such were out of the domain of Judge or Jurist. It is, however, a different matter that even customs immemorial should not be opposed to morality.Vic in ItalyÃ'› Nonentities in France, Burke in England and Hugo and Herder in Germany heralded a new era in the development of legal theory and viewed law as legacy of the past and product of customs, traditions and beliefs prevalent in different communities. The historical Jurists believe that law has biological growth and it has not evolved in an arbitrary and erratic manner. According to Sir Henry Maine, Nonentities (1689-1755) was the first Jurist who adopted historical method of pursuing the study of legal institutions and came to the conclusion that â€Å"laws are the creation of climate and local situations†.He did not probe further into the relationship between law and society but pointed out that law must keep pace with the changing needs of the society. Four Stages of Development of Law The supporters of historical school of Jurisprudence have traced the evolution and development of law through four major stages. They are as follows:l . Divine Law- In the beginning law originated from Themes, which meant the Goddess of Justice. It was generally believed that while pronouncing the Judgments the King was acting under the divine inspiration of goddess of Justice.Themes were the awards pronounced by the Goddess of Justice (Themes) to be executed by the King as a custodian of Justice under the divine inspiration. Thus the King was merely the executor of Judgment of God. The dooms of Anglo-Saxons pertain to this category of segments or commands. 2. Customary Law- Next, the recurring application of Judgments led to uniform, practice which crystallized into customary law to be followed in the primitive societies. The importance of customs as a s ource of law has been underlined by Sir Henry Maine when he observed that ‘custom is to society what law is to state'. . Priestly class as a sole representative of customary law In the next stage of development of law, the authority of the King to enforce and execute law was usurped by the priestly class who claimed themselves to be learned in law as well as religion. The priestly class memorized the rule of customary law cause the art of writing had not developed till then. They applied and enforced the customary law. 4. Codification – The era of codification marks the fourth and perhaps the last stage of development of law.With the discovery of the art of writing, a class of learned men and Jurists came forward to denounce the authority of priests as law- givers. They advocated codification of law to make it accessible and easily knowable. This broke the monopoly of priestly class in matters of administration of law. The ancient Hindu code of Mann, Hebrew Code, Solon' s Attic Code, Twelve Tables in Rome, the codes of Hamburg etc. Re some of the examples of such law codes. Anthropological investigations into the nature of primitive and undeveloped systems of law are of modern origin and might be regarded as a product of the Historical school.Pride of place will here be accorded to Sir Henry Maine (1822-1888), who was the first and still remains the greatest representative of the Historical movement in England. It is not easy to place Amine's contributions to the theory of law. He began his work with mass of material already published on the history and development of Roman law by the German historical school, and he was able to build upon that and also to bring to bear a more balanced view of history than is found in Savings. Maine however went further. He was learned in English, Roman, and Hindu laws and also had the knowledge of Celtic systems.In this respect he parts company with the German historians. Instead of stressing the uniqueness of nat ional institutions, he brought to bear a scientific urge to unify, classify and generalize the evolution of different legal orders. 2 Comparative method of study for the purpose of a project on law was found useful by the scholars of Historical school. The scope for comparative approach to study of law as immensely widened with the advances in legal literacy and exchange of legal knowledge between various countries.To quote an illustration, the 42nd report (1971) of the Law Commission of India on the reforms in the Indian Penal Code drew heavily on the comparative material from several continental countries such as US criminal law and other sources. The material available for comparative study of law may vary in form and include Code, law books, reports of law reform agencies and so son. The jurists made a comparative study of legal institutions of various communities to trace the evolution and development of law. They applied comparative method in the study of law with the object o f enabling the legal philosophers to construct 2 Jurisprudence by R.W. S. Aids, fourth edition, page no. 532,533;Buttonholer & Co. , publishers Ltd. 1976 abstract theories of law or to assist the historian in tracing the origins and developments of legal concepts and institutions. The distinguishing feature of this comparison was that it did not consist of mere description of differences which existed between the concepts, rules, or institutions of the law under examination, but also probed more deeply into the matter with a definite purpose in view. This helped considerably in unification of divergent laws.Thus the supporters of comparative method of law did not believe in mere compilation of information about concepts, rules, etc. But they also tried to analyses the variations in the existing laws within and outside the country in order to reform their legal system. Sir Henry Maine is considered to be the fore-runner of this approach of law. 3 It is Sir Henry Amine's work which st ands out as the most important and fruitful application of comparative legal research to a legal theory inspired by the principles of historical evolution. Approaches to the study of law, and history in particular, which was destined to bear abundant fruit in the years to come. 5 Studies on Jurisprudence and legal theory, by Dry. N. V. Appearance; page no. 39, fifth edition, central law agency publication Legal theory by W. Friedman, fifth edition, page no. 214, Universal law publishing Co. , Ltd. New Delhi 5 Jurisprudence by R. W. S. Aids, fourth edition, page no. 533 SIR HENRY MAINE (1822-1888) Sir Henry James Sumner Maine born on August 15, 1822 at Roxbury in Scotland, took his education in the University of Cambridge and Joined as professor of Civil Law in that University in 1847.While professor of law at the University of Cambridge (1847-1854), Maine also began lecturing on Roman law at the Inns of Court, London. These lectures became the basis of his â€Å"Ancient law: It's c onnection with the Early History of Society, and it's relation to Modern Ideas (1861)†, which influenced both political theory and Anthropology, the latter primarily because of Amine's controversial views on Primitive law. To trace and define his concepts, he drew on Roman law, Western and Eastern European legal systems, Indian law, and Primitive law.Although some of his statements were modified for invalidated later research- Ancient law is noted for its general lack of reference to authorities and its failure to cite supporting evidence for its conclusions- his study helped to place comparative jurisprudence on a sound historical footing. A member of the Council of the Governor General of India (1863-1869), as a successor of Lord Macaulay, Maine was largely responsible for the codification of Indian law. He studied ancient law of India and drew a comparison between the Indian law and the laws of western societies.In 1869 he became the first professor of Comparative Jurisprud ence in the University of Oxford and he occupied the chair till 1877. Thereafter, he held the distinguished post of the Master of Trinity Hall, Cambridge until shortly before his death in 1888. Among other works of Maine, his books entitled Village Communities', lectures on the ‘Early history of Institutions' (1875), a sequel to his ancient Law, ‘Dissertation on Early Law and Custom' deserve special mention. Maine was the recipient of remarkable number of honors, medals and distinction. His contributions to historical jurisprudence are so great that he is labeled as ‘Social Darwinist' for he envisaged a social order wherein the individual is finally liberated from the feudalistic primitive Onondaga. Amine's Views on Development of Law One peculiar feature of historical method in the context of study of law is that it is not confined to pure law. Even though the material directly under study may be legal, the factual material that comes to light may transcend the ex clusive legal field. It is so, because social and legal factors cannot always be reduced to water tight compartments.Any appraisal of the precise reason for a particular law necessitates special attention to the effect of relevant social, physical, demographic and ideological variables. This view finds supports in the writings of Sir Henry Maine who lived that historical research served as a useful tool to make the present more understandable. Sir Henry Maine, through his comparative researches came to a conclusion that the development of law and other social institutions has been more or less an identical pattern in almost all the ancient societies belonging to Hindu, Roman, Anglo-Saxon, Hebrew and Germanic communities.Most of these communities are founded on patriarchal pattern wherein the eldest male parent called Pater familial dominated the entire family including all its male and female members, children and slaves as also the property. The word of the Pater familial was law t o them, which they were supposed to follow. There were, however, some communities which followed matriarchal pattern in which the eldest female of the family was the central authority to manage all the affairs of the family.It is because of his kinship, namely bold relationship with the family that a person acquired status. Thus the law of person was to be determined on the basis of his status. In ancient societies, the slave, servant, ward, wife, citizen etc. All symbolized statuses which the law recognized in the interest of the community. According to Maine, Pater-familiar constituted the lowest unit of primitive communities. A few families taken together formed the Family-Group which consisted of union of families.An aggregation of families constituted Gene which in turn led to the formation of tribes. A collection of tribes formed the community which Maine termed as commonwealth. It was in this manner that the early primitive societies evolved, their relation being regulated by the law of status which was also called as law of persons. Obviously, the individual member of the family had no individual existence than his status as a son, wife, servant etc. s the case may be. Similarly, servants and slaves had no rights in the early law.LaWs Development through Legal Equity and According to Henry Maine, when a primitive law is embodied in a Code, there is an end o its spontaneous development and such communities are static societies. Therefore, if certain changes are desired in the law, they have to be effected deliberately with the conscious desire of development. The societies which continue development of law in this manner are called progressive societies by Maine. There are three methods by which the progressive societies develop their laws. They are (1) Legal Fictions, (2) equity, and (3) Legislation. 1 .Legal Fictions – Legal Fictions change the law according to the changing needs of the society without, however, making change in the letter of l aw, Maine defines ‘legal fiction' as â€Å"any assumption conceals or effects to conceal the fact that a rule of law has undergone alteration, its letter remaining unchanged, its operation being modified†. According to Sir Henry Maine, fiction is a device to extend new rules to old situations, to new circumstances with a minimum of intellectual effect. In his opinion, a legal fiction is a very useful agency of development of law to suit intricate and nutty situations.A legal fiction pre-supposes certain assumptions made on the basis of which the law assumes certain things to exist which do not exist in reality and thus adopts itself to new circumstances. 2. Equity – Equity consists of those principles which appeal to the conscience of human being. These principles were invoked to remove the defects existing in the common law in England. The rigidity of common laws Judges forced people to approach the King for Justice. The King entrusted the task of administration of Justice to the Chancellor who was also the head of the Exchequer.Though not learned in law, the Chancellor helped in the administration of civil Justice through principles of justice, equity and good conscience. In Rome, similar functions were performed by Praetor who tried to remedy the deficiencies in the existing civil law. Thus Henry Maine defines Equity as, â€Å"a body of rules existing side by side of the original common law, founded on distinct principles and claiming incidentally to supersede the common law by virtue of a superior sanctity inherent in those principles†.In course of time, equity became a system of law which reached maturity and impoliteness and finally the Judicature Act, 1873 amalgamated the common law courts and the chancery courts (I. E. Equity courts) in the High Court of Justice and it was provided that in case of conflict or variance between the law of equity and the common law, the rules of equity were to prevail. The property legislation o f 1925 in England cause Equity to go a second transformation as it brought about a complete fusion of the systems of common law and equity into one integrated system of law.The origin of Equity law can be traced back to the 13th century when traditional hat time suffered from three main defects, namely, (1) absence of remedy in certain cases; (2) inadequacy of remedy; and (3) excessive formalism. These defects were sought to be removed by three Jurisdiction by equity law namely, (1) Exclusive Jurisdiction, (2) Concurrent Jurisdiction, and (3) Auxiliary Jurisdiction of equity. The origin of the concept of trust, appointment of receiver to administer property of the deceased etc. Ell under exclusive Jurisdiction which provided relief to divorced women and protected the rights of inheritance of the children of the deceased person for which there was no remedy available under the common law. The remedies of the specific performance of contract, injunction etc. Came under the concurrent Jurisdiction of equity law which provided relief in matters where, a relief though available under common law, was inadequate. The examination of witnesses on commission set off (I. E. Settling different claims of same parties to litigation in a single suit) etc. Re some of the instances of auxiliary jurisdiction of equity which sought to mitigate the rigors and rigidity of common law due to complexity of procedure. Thus it is evidently clear that equity came to supplement the common law and not to supersede it. 3. Legislation – Legislation is the most effective method of law-making. It is considered to be the most systematic and direct method of introducing reforms through new laws. The power of the legislature to make laws has been widely accepted by the courts and the people all over the world.Legislation is the most powerful instrument of legal reform, and so great is its superiority over other methods of evolution of law that the tendency of 1 1 advancing civilization is to acknowledge its exclusive claim, and to discard the other sources as relics of infancy of law. 7 Movement of Progressive Societies from Status to Contract With the march of time the institution of Pater-families withered away and now rights and obligations were dependent on individual contracts and free negotiations between persons.This led to disintegration of the family system and emergence of contractual relation between individuals. In other words, now the individual could take final decisions himself without depending on the head man of the family. The Banishment doctrine of Individual freedom freed slaves from the bondage of their master and now they could have rights and obligations like any other person. Thus emerged a free society with freedom of individual in various spheres of life.The freedom of individual in economic field has been called as doctrine of laissez fairer which struck a blow to the notion of status as the basis of law. These changes in the pattern of so cieties led Sir Henry Maine to conclude that ‘movement of progressive societies has hitherto been from status to contract'. In India also emancipation of women from the domination f males, freedom available to individuals in social, economic, and political spheres of life, improvement on the condition of labor and workers etc. Evinces that there has been a shift of emphasis from status to contract in modern times.The transformation of English as well as Indian society from feudalistic pattern of individualistic set up, has brought in its wake a radical change in the status of servants, agricultural workers etc. The incapacitates of Hindus in codification of Hindu personal laws in 1955-56. 8 Reversal of Trend from contract to status It must, however, be stated that with the advance of time and due the impact of industrialization, arbitration and modernization, new problems of poverty, unemployment, hunger, ignorance, disease etc. , have cropped 7 Studies in Jurisprudence and le gal theory by Dry. N. V. Appearance, page no. 0 to 44, fifth edition, central law agency publication In modified Hindu law Kart of the family who was the eldest male member of the family, dominated his authority but the codification of Hindu law has done away with the discrimination, inequality and subjugation of women liberating them from the domination of men. The new concepts of liberty, equality, freedom and individualism symbolize movement of progressive Indian society from status to contact. Up giving rise to inequality between individuals and group within society. Consequently, there came a counter current of reversal from contract to status in the life time of Maine himself.It was realized that the idea of freedom of contract between powerful capitalist and starving labor class led to catastrophic consequences resulting in exploitation of workers. This led to the emergence of Trade Unionism. The workers now formed their associations and instead of individual freedom of barga ining their wages and facilities, their Trade Unions had the power of group bargaining. That apart, several labor welfare legislation such as the Minimum Wages Act, Factories Act, Trade Unions Act, Workmen's Compensation Act, Employees Liability Act, Industrial Disputes Act, Payment of Bonus Act, Bonded Labor (abolition)Act, Contract Labor (Regulation) Act, etc. Have been enacted to improve the service conditions and bargaining capacity of workers in order to free them from the unscrupulous industrialists and capitalists. With the increasing role of the state in a welfare state, it has assumed the functions of a regulator to secure a social order based on Justice, equality, liberty and fraternity. These progressive welfare measures have forced upon the individual worker a new kind of status where he does not bargain individually but does so collectively through associations or unions.Commenting on this reversal from interact to status, the Chief Justice of the Bombay High Court in P arka's cotton mill Ltd. V. State of Bombay, interracial remarked: â€Å"We must not forget that we are no longer living in the age of laissez fairer and the relation between employer and employees are no longer solely governed by the principles of contract. Contractual rights and liabilities are now subject to the principles of industrial law and also principles of social Justice. † With the changing role of the states, its functions have also radically changed. Now there is greater interference of the state in the individual's activities. Even the

Family Structure, Father Involvement - 936 Words

With so much emphasis on the mother being in charge of the house and the kids, you would think mother involvement is enough for a child’s healthy development and good adolescent Behavioral Outcomes (if all the rest goes well/ â€Å"normal†). In the following two articles we will see if father involvement has any outcomes: 1.†A father s love is one of the greatest influences on personality development†, which was published in Science Daily newspaper and 2. â€Å"Family Structure, Father Involvement† published in the Journal of Marriage and Family 68 According to recent studies, the love of a father contributes as much and sometimes even more to a child s development as does the love of a mother. One of many findings in a new large-scale analysis of research talks about the power of parental rejection and acceptance in shaping our personalities as children and into adulthood† (reference 1) â€Å"Growing evidence suggests that fathers’ high-quality Involvement is beneficial to children’s wellbeing and development, even when provided by a nonresident father (Amato Gilbreth, 1999), so the father-child relationship represents a promising—but unexplored—mechanism for understanding how differences in family structure may lead to differences in child outcomes.† (Carlson pg.137) Ronald Rohner from the University of Connecticut, co-author of the new study in Personality and Social Psychology Review says: â€Å"In half-century of international research, we ve not found any other class ofShow Mor eRelated Research on early fathers and mothers involvement and childs later educational outcomes831 Words   |  4 Pageslong-term contribution that early parent involvement had in a child’s success in school. Flouri and Buchanan had three particular goals in mind while completing this research: (1) To explore the role of early father involvement in childrens later educational attainment independently of the role of early mother involvement and other confounds, (2) to investigate whether gender and family structure moderate the relationship between fathers and mothers involvement and childs educational attainment, andRead MoreWhy Father Is Important?1587 Words   |  7 PagesWhy Father Are Important Did you grow up without your father? If not, what if you did? How did it make you feel? What was the importance of your father’s presence and involvement in your life? As these are questions I’ve examined to see if a father’s presence and involvement are important to development. The father role present-day is continually diminishing from the values that constitute a traditional family. Non- traditional and single parent family structures are a growing phenomenon. AccordingRead MoreFamily Structure Changes And Child Behavior Problems Essay1444 Words   |  6 Pagesmisconception is that children who grow up in low income families end up being more susceptible to experience behavioral problems as they get older, in contrast to that of high income families which generally speaking, people believe children are better off. The report Associations between Family Structure Change and Child Behavior Problems: The Moderating Effect of Family Income challenges the false i mpression associated with low income families. The analysis was conducted by three experts from GeorgetownRead MoreFather s Role As A Child s Development1478 Words   |  6 PagesThe literature review examines the father s role as being very important to a child s development and brings out positive benefits when they’re actively involved. A father who is involved ensures a sufficient amount of cognitive ability, supports the child s educational achievements and awareness of overall health and social behavior. Fathers are more than just the second adult in the home. When involved fathers, biological or not, they bring positive benefits to a child that no other person isRead MoreFamily Systems Therapy And Structural Family Therapy1457 Words   |  6 Pageswith the welfare of families and their functioning. When dysfunction is present, families often seek guidance through family therapy, which has become a strengths-based approach to intervention that emphasizes families†™ resiliency and capacity to solve their problems. Within family practice, practitioners implement diverse theoretical approaches and practice models, which function as a foundation for family assessment and intervention methods. This paper seeks to explicate two family intervention modelsRead MoreStructural Family Therapy : An Evidence Based Therapy1226 Words   |  5 PagesStructural family therapy is associated with the work of Salvador Minuchin and is an evidence based therapy influenced by brief strategic and eco-systemic structural family therapy (Gerhart, 2014). Structural family therapists are active in the counseling sessions and will want to have all of the members of the family participate in the counseling sessions. The therapist is then able to map family structures in order to resolve relation problems between family members. The therapist will then makeRead MoreThe Role Of Father Involvement For Children Development Essay1535 Words   |  7 Pagesin the father in volvement literature trough the researches. To know the father involvement for children development. Further we present what different other nation’s father role and what is going changed. This paper is based on The Effects of Father Involvement: An Updated Research Summary of the Evidence(FIRA, Sarah Allen, Kerry Daly, University of Guelph). It is not to compare with father and mother, Knowing the father’s importance. This paper is for Students and someone who be a father. Know howRead MoreThe Positive Health Impacted By Fathers Involvement1705 Words   |  7 PagesThe literature review conducted by Plantin, Olukoya, and Ny is about the positive health impacted by fathers’ involvement in regards to the mothers, children, and the fathers themselves when involved in the pregnancy and childbirth (2011). The literature reviewed is based on European men. Paternal involvement with pregnancy and delivery has positive outcomes, yet there is little help offered geared towards men in regards to parenting. This literature review expands on reasons and possible ways toRead MoreThe Role Of Parents Absent Homes Are More Frequently Perpetrators Of Crimes1382 Words   |  6 PagesIntroduction Over the past 50 years families have been affected by dramatic increases in the prevalence of nonmarital childbearing, divorce, and remarriage. In the United States nearly four in ten births are to unmarried women (Ventura 2009) and the number of children under the age of 18 living in mother only families has risen from 8% in 1960 to 23% in 2010 (U.S. Census Bureau 2010). Though the thought of how upsetting it is to grow up without a father may cross people’s mind, not many peopleRead MoreThe Social Structures Of Youth Involvement866 Words   |  4 Pages Through the analysis of the social structures of youth involvement in gang related activities there are many factors that need to be considered. This essay will critically look at the parental and environmental influences as well as the socio-economic statuses of youth who become enveloped in gang related pleasure. Firstly, the influence of the parents plays a crucial part in the development of a child’s mental growth and their behaviour. The way parents treat their children, act and behave around