Trust in the Press Essay Example for Free

Trust in the Press Essay Trust in the Press is essential in an ever changing society. Not only must the Press be trusted but it must be believed and must behave in an ethical manner. But what constitutes an ethical manner? Laws might be set to achieve certain outcomes and may not necessarily be ethical. What is legal and demanded by law may not be considered ethical from a journalistic point of view. With respect to your personal point of view of the above, discuss what you believe journalists have to do to maintain the trust and respect of the public. The historian Thomas Babington Macaulay introduced the notion of the media as the Fourth Estate; the role of a watchdog that checks on abuses of power by government and professionals.1 Lord Hutchinson, QC defence council for the ABC Case regarding the Official Secrets Act 1989, said it is the task of the press to examine, probe, question and find out if there are mistakes to embarrass the government.2 With such a role of responsibility, it is vital that the public trust what the press tell them. Codes and laws are in place to make sure journalists act as a collective conscience.3 In practice this is difficult as individual consciences come into play, along with the obstacles of time, money and competition that face journalists in their profession. One common rule among journalists is to never reveal your sources. If you do, your career will be tainted with mistrust. This journalistic ethical code secures a relationship with the public and provides protection. But there are laws that contravene this. Section 10 of the Contempt of Court Act 1981 says courts have the right to demand that journalists reveal their source if disclosure is necessary in the interests of justice or national security or for the prevention of disorder or crime. The Police and Criminal Evidence Act 1984 says police investigating a serious offence can obtain an order requiring the journalist to submit evidence considered useful to the court. It is difficult to defy the law, especially when the consequence could be imprisonment or a fine. However, I would still try to keep my sources confidential; otherwise they could face a fine or imprisonment. I would find that difficult to live with because I am just as responsible for protecting my sources and for imparting the information. In these circumstances I would argue for freedom of expression under the Human Rights Act 1998. Trainee journalist Bill Goodwin appealed successfully with this argument after he was fined for refusing to hand over documents concerning engineering company Terra Ltd. In another case the Guardian exposed their source Sarah Tisdall in 1984 under pressure from the courts. She leaked information about the delivery of cruise missiles to RAF Greenham Common and was jailed as a consequence.4 Where a source has taken the initiative and given a story to the press, especially in matters relating to national security, they must have recognised the risk and it is not unreasonable for them to take the consequences. There are legal reporting restrictions that a journalist can overturn. Section 39 and 49 of the Children and Young Persons Act 1933 can be lifted if a juvenile has committed a serious crime and naming them would act as a deterrent to others. Journalists often cite public interest in their reasons for disagreeing with the law and this is an ethical way to maintain the trust and respect of the public. Yet the problem lies in defining public interest. The Press Complaints Commission states that public interest includes: 1. Detecting or exposing crime or a serious misdemeanour 2. Protecting public health and safety 3. Preventing the public being misled by some statement or action of an individual or organisation5 Reporter Ryan Perry went undercover in 2003 as a footman at Buckingham Palace in order to observe their security methods. His report in the Daily Mirror highlighted the need for tightened security and this was achieved. His behaviour, although deceitful, was for the publics safety and I agree with German journalist Gà ¯Ã‚ ¿Ã‚ ½nter Wallraff who said, you have to disguise yourself in order to unmask your society.6 The BBC reiterates this in their guidelines for public interest: when dealing with serious illegal or anti-social behaviour it may occasionally be acceptable for us not to reveal the full purpose of the programme to a contributor.7 This is when the ethical behaviour of a journalist starts to depart from the ethical code of the public and indeed the law. I would find it difficult to lie in order to get a story but if it was for the publics benefit, I could do it. I do not think behaving this way, if it revealed vital information, could lose the respect or trust of the public. If the person I was exposing was a family member or boyfriend, I could not report on the story. I would not cover up their crime but similarly, I would not offer them up for public scrutiny. Ethical manner as a journalist is different to ethical manner as a daughter or girlfriend and in this case the personal is stronger than the professional. I do not think Perrys report on Buckingham Palace should have included photographs of private bedrooms and details on the storage of breakfast cereals. This does not come under the Press Complaints Commission code of public interest and I do not think it can be justified as ethical behaviour. Undercover work cannot be held up as ethical when the outcome is less important than the act and Perrys inclusion of these private details undermine the ethical reasons for reporting undercover. When it becomes a matter of what the public are interested in, rather than what they need to know, ethical manners begin to vary between journalists and other factors come into the equation. The media is to a certain extent controlled by the people who own the newspapers, radio stations and television companies. They pay the journalists salary and they ultimately make the decisions. A senior executive of News International said: If an editor went to Murdoch and said that he had carefully examined the PCC code of conduct on chequebook journalism and had come to the conclusion that to pay to get a story would be a breach of the code and, therefore, he hadnt done it, he would be fired.8 This shows that a journalists so-called ethical behaviour is not always their own. However the journalist can decide who they work for. If I was asked to pay for stories that revealed matters that I did not consider of public interest, then I would refuse and work for a different organisation. This is, of course easier said than done and when one organisation is willing to pay for a story, others follow suit to keep up with competition. The public are aware of this and join in the game. Neighbours of Shannon Matthews have begun to charge for their stories, and they know the media will pay. It is difficult not to succumb to this method of journalism when competition is so fierce but then motivation for talking to the press becomes about money rather than truth. The competition and pressure to get a good story causes some journalists to fabricate, especially in the television industry. Regulators Ofcom demonstrated the penalty of misleading the public when they fined ITV à ¯Ã‚ ¿Ã‚ ½5.675 million for phone vote scandals. Journalist Max Hastings said deceit is woven into the very nature of television. He described how some camera crews in war zones have encouraged soldiers to open fire so they can film dramatic footage that was missed when it actually happened.9 I understand the desire to produce a captivating documentary but asking soldiers to potentially put themselves and others in danger for dramatic effect, is not ethical behaviour. In television there is a fine line between deceiving the public and assuming they know about the editing tricks of the trade. Filming a sequence over a three-day period but presenting it as one day is not harmful deception but the reality of television production. The BBCs broadcast in 2007 of the Queen storming out of a portrait session was deceiving because editing gave a false representation of the actual events. Ofcom hold a similar view in regard to fairness. They say broadcasters should take reasonable care that material facts have not been presented, disregarded or omitted in a way that is unfair to an individual or organisation.10 When covering a story about parishioners protesting against their church being demolished, I was told by my editor to ask them to shout save our church for the camera. They did this and it brightened up the news package. It could be argued that this was unethical behaviour because it misled the public about the protest; as soon as I had gone, the shouting stopped. I did question my actions. However the desire to entertain the viewer, the opinion of my editor, the willingness of the protestors themselves and the low impact it would have on the public perception stopped me going against the decision. This is a minor case but it shows how potential deception in television is an ever-present reality. The need for impartiality is heavily stressed in journalism codes of conduct. Ofcom states that television and radio programmes must exclude all expressions of the views and opinions of the person providing the service on matters of political and industrial controversy and matters relating to current public policy (unless that person is speaking in a legislative forum or in a court of law).11 To be impartial as a journalist is not as simple as it seems; merely editing requires some personal judgement. As a reporter, it is not that easy to completely remove yourself from a story. Journalist Gill Swain said simply, dont get emotionally involved.12 Yet detach yourself too far and your reporting will get labelled as forensic.13 Sometimes the best journalism happens when you do engage emotionally and follow a story with passion. If Bob Woodward and Carl Bernstein had not done that, the revelation of Watergate and eventual resignation of US President Richard Nixon in 1974 would have never come about. Personal interest and involvement can be a helpful motive in investigative journalism. A few years ago I wrote about my college boat club in a university magazine. I was told various stories about club money that had gone missing. As a member of that boat club, I felt obliged to find out what had happened and inform university students. After publication the head of the boat club asked me to her office to explain myself. She was unable to deny any of the facts. If I had not had personal involvement in this story, the financial difficulties of the boat club would have not been revealed. Yet the actual writing of the story should be impartial and not convey the opinion of the journalist. The public should trust that you are giving them a fair and accurate report on a matter of importance to them. However, sometimes personal belief and gut instinct that go against codes and ethical manners can benefit the public. During the time Senator Joseph McCarthy made charges that the United States government had been infiltrated by Soviet spies, American journalists had to abide by the strict codes of reporting without analysis or comment. They knew McCarthys claims were false but the journalistic laws meant they were unable to investigate his statements and tell the public the truth. More recently, the Washington Post, New York Times and New Republic all apologised to their readers for not being sceptical when reporting White House claims that Iraq had weapons of mass destruction.14 Part of being a journalist is to face adversity and going against a law or code is sometimes the only way to tell the public the truth, but truth is what ultimately gains their trust and respect. Laws and codes are necessary to provide a benchmark for journalists to work from and maintain professionalism. Without them some journalists would lose sight of what fundamental principles they need to follow in order to behave responsibly. There are times when a journalists own instinct and ethical manner will maintain respect and trust of the public better than the codes. There are also instances when pressure, time and money prevent a journalist from maintaining those codes. Whatever the circumstances, the one rule that should be constant is that journalists are the eyes and ears of the public; their trust and respect should always take precedence. BIBLIOGRAPHY Frost, Chris. Media Ethics And Self-Regulation. Pearson Education Limited, 2000. Harcup, Tony. The Ethical Journalist. Sage Publications Ltd, 2007. Keeble, Richard. Ethics For Journalists. Routledge, 2001. Rosenstiel, Tom and Mitchell, Amy S., ed. Thinking Clearly: Cases in Journalistic Decision-Making. Columbia University Press, 2003. Welsh, Tom, Greenwood, Walter, Banks, David, eds. McNaes Essential Law For Journalists, 19th Edition. Oxford University Press, 2007. Wesbites: http://www.ofcom.org.uk 1 Richard Keeble, Ethics For Journalists (Routledge, 2001) 127. 2 Tom Welsh, Walter Greenwood, David Banks, eds. McNaes Essential Law For Journalists, 19th Edition (Oxford University Press, 2007) 415. 3 Keeble 131. 4 Keeble 29. 5 Tony Harcup, The Ethical Journalist (Sage Publications Ltd, 2007) 36. 6 Harcup 41. 7 Harcup 45. 8 Harcup 112. 9 Harcup 12 10 http://www.ofcom.org.uk/tv/ifi/codes/bcode/fairness/ 11 http://www.ofcom.org.uk/tv/ifi/codes/bcode/undue/ 12 Keeble 130. 13 Keeble 140. 14 Harcup 17.

Drug Use And Social Control Criminology Essay

Drug Use And Social Control Criminology Essay Drug use and addiction have been a long time burden for society. Over the years many programs have been developed to help curb illegal activity, however it still continues. While appropriate attempts to control drug abuse have surfaced, there have also been many that have proven counterproductive. There are a number of theories as to why these theories have developed, but one might speculate that it is because drug abuse has such a wide and varied effect on families, society as well as the criminal justice system. This creates many attempts at control and is possibly the biggest reason for the numerous factors that involve drug abuse and society. This paper will examine the reaction of society to drug abuse and the attempts that have been made to control such behavior. The Stigma Of Abuse There are many stigmas that surface in society, each ranging in severity and consequence. Society, as a whole is quick to judge others and make rash assumptions about the person, based on their actions or other limited information. Those that abuse illicit drugs are one of the most stigmatized groups in society today. There is a negative connotation at the mere speaking of drug abuse. Children are taught from an early age that drugs are bad and will lead them to a life full of crime and potentially even death. While these speculations are not inaccurate, it does send a message to youth that relays that people, who suffer from addiction, are bad and/or criminals (Ball, 2007). While these assumptions may be correct in some respects, it is inappropriate to generalize groups of people as a whole. There are a number of situations and circumstances that can cause addiction, not only poor personal choices. A stigma is defined as, an attribute that is deeply discrediting, occurs when an individual experiences social disqualification due to a specific attribute or flaw (Palamar, Kiang Halkitis, 2012). In lay terms, a stigma is a preconceived notion about an individual based on their actions or perceived actions. While most consider stigmas a negative concept, it appears to be engrained in human nature to engage in this type of behavior. According to Palamar, Kiang and Halkitis, stigmas are also based on the type of drug and method of use as well (2012 ). For example, some consider the harder drugs, such as heroin or amphetamines, to be the worst and those that use them as the worst addicts. The reason for the more negative assumptions may be based on the level of harm that the drug causes. Heroin and methamphetamine are known to cause severe health concerns and commonly lead to illegal behavior that has a negative effect on society. As harm comes to society, individuals quickly associat e the drug and caused actions, thereby creating animosity and fueling the stigma. In many cases, the stigma might be used as a form of punishment to the user that is hoped to curtail or prevent drug abuse. The theory being that if enough pressure is placed on the individual than they will stop using drugs however is rarely successful. Addiction is a disease and the mere words or negative attitudes of others are not sufficient in stopping the cycle of abuse (Tiger, 2011). Families, commonly put pressure on their loved ones, who are using drugs, possibly even not speaking to them, in hopes that they will wake up and cease their drug use. Even though stigmas are sometimes used to curb the problem, it oftentimes leads to additional problems. As these individuals attempt to mesh in society, by getting a job or attempting sobriety they are often frowned upon, which creates more distance. Many employers will not hire them, which facilitates unemployment, and continued drug abuse. Certainly, it is not the fault of the employer, but if the addict is not able to work and sustain a life by paycheck, they may return to stealing to support himself or family. The Criminal Justice System Legislation and laws are not new to the criminal justice system. There have been laws regarding illicit drug use for many years. What has changed in recent decades is the way that drug offenses are charged, handled and processed. There are approximately 2.3 billion offenders in jail or prison for drug offenses in the United States (Tiger, 2011). That is a significant increase over the past years and one might speculate that it is because of tougher laws, more enforcement and awareness about drug abuse than in past years. One of the most notable policy changes has come with the establishment of what is known as Drug Court. Originally introduced by the criminal court system, Drug Courts have been put in action to address drug offenses in a more efficient manner (Tiger, 2011). Before these specialty courts were established, an individual convicted of drug offenses, may be punished, fined or incarcerated and then returned to society. In addition to prison and jail overcrowding, society a lso noted that the system was not efficient and had poor results. Typically these individuals would be back in the court system very soon after their charge, for another drug offense. Not only does this place the individual at harm, it also creates a danger to society. An example of this harm is an individual convicted of driving while intoxicated and then has another accident that takes someones life. They were not helped by going to jail or having a court date, their alcoholism was never addressed, which meant that the legal system failed in many respects. In order to address these issues, the 1966 Narcotic Rehabilitation Act was established, which gave each state the right or ability to force an offender into treatment or rehabilitation (Tiger, 2011). This then gave way to court ordered treatment and thereby the drug court system. Drug court is meant to oversee the offender in many different aspects of their life. In addition to addressing their criminal behavior, they also oversee their addiction treatment while they are on probation per say. The individuals assigned to drug court are generally drug tested every month, required to pay a fine and also report for monthly appointments. By requiring drug treatment the individual is addressing their legal concerns, but also getting help for the root of the problem, which is addiction. Commonly, counseling and other therapeutic services are required of offenders to assist them in changing their life. Coerced Treatment As A Form Of Control Understandably, one of the first lines of defenses for families is coerced treatment. In most states there are laws and protections that allow a person, who is in danger of harm to be committed. In many cases, families are frustrated with their loved ones and fearful for their safety so they attempt to convince or force the person into treatment. Unfortunately, when an individual is an adult it is rather difficult to force them into treatment without legal action. This is generally only relevant to a person that is exhibiting suicidal or homicidal ideas and not a person using illicit drugs. Forcing treatment is mistakenly thought to be a line of defense, however rarely works because of the users rights and freedoms (Ball, 2007). While families or other loved ones cannot force their family member into treatment the court system does have the ability to require treatment. Most offenders take the offered help, however there are those that refuse treatment or counseling. Each individual is given the choice, granted it is either treatment or jail time, but they still have the choice. There are those that are in and out of the prison system, who never engage in treatment or accept help, thereby perpetuating the cycle of abuse. Prevention The War Against Drugs With the increase in the criminalization of drugs in the past 30 years there have also been numerous changes to prevention attempts (Ball, 2007). Almost every school and community proudly boosts the fact that they offer drug prevention and awareness education. There have been a number of programs that have been created based on educating the community about drugs, harms and fads that are present. The increased amount of drugs and detriment has caused an increase in media coverage and allowed people to become more aware of the prevalence of drug use. With that also came a demand for an increase in Federal funding for prevention measures, treatment and assistance for those of lower socio-economic status. One of the major themes of prevention is an attempt to learn more about the causes and risk factors of addiction. There has been a great deal of controversy over the years regarding the causes of addiction. The nature versus nurture argument suggests that individuals become who they are or engage in particular behavior based on either their genetics or influence of environment (Zimic Jukic, 2012). Some argue that individuals are born with the propensity to use drugs based on hereditary and genetic factors. This would mean that regardless of the type of parents or environment that a child grew up with that they would be genetically predisposed to use drugs. On the flip side of the argument, individuals are said to be shaped by their experiences throughout their lives. These experiences shape who they are and what types of behavior that they engage in. For example, a child that grows up in a home where drug abuse is prevalent would be more likely to follow in the same footsteps as their parents. Both theories make excellent points, and many choose to believe that individuals are influence by both genetics and their environment. Other factors that place individuals at a higher risk of drug abuse is lower socio-economic status, family problems, academic trouble, mental illness as well as a host of other factors (Zimic Jukic, 2012). In light of these factors being noted, programs have been established to combat the negative effects. Programs such as the girls and boys clubs and mentor groups are put into place to assist children that might be from broken homes, have poor parental support or be associating with the wrong crowd. These programs are aimed at prevention and cessation as a measure to reduce the amount of drug use as well as criminal behavior. These intervention programs are meant to assist parents in a better understanding of the needs of their children, the warning signs of drug abuse as well as the importance of the family role. For the child, the programs are meant for education, but also guidance and to learn improved coping skills or manners by which to deal with the stress or problems that ar e placing them at the greatest risk of abuse. Harm Reduction Theory The harm reduction theory is considered a method of control for both drug addicts and society in general. This thought process is based on the belief that certain types of treatment or prevention are less harmful than drug use or risky behavior (Ball, 2007). One of the best examples of this belief system is Methadone Maintenance Treatment. Methadone is a synthetic opiate that is used to keep heroin addicts from using illicit drugs (Zimic Jukic, 2012). Methadone blocks the opioid receptors in the brain, thereby preventing the addicts ability to get high from continued heroin abuse. Some suggest that the introduction of methadone is simply another drug, because it is addictive and the individual becomes physically dependent. Those that promote methadone treatment suggest that these individuals, even though they are addicted to methadone, can functionally normally within society. Rather than engaging in criminal activities for drug money, the individuals can work, engage in family activities and receive psychological counseling. Other forms of harm reduction programs and theories are centered on providing condoms or even clean needles for IV drug users. The theory behind this controversial practice is the hopes that there will be a decrease or reduction in the amount of communicable diseases such as HIV/AIDS, Hepatitis C and tuberculosis (Ball, 2007). Society and families have long stood against illegal drug use. There are a number of programs and prevention attempts that are currently used. While this assistance is used as a manner of control the negative stigma about drug users is still very prevalent in todays society. Drug users are frowned upon and typically have a difficult time in society because of their choices and actions. It is important that society continue educating about drugs, harms and how perceived attitudes can further the problems. Education and continued address are the best lines of defense for prevention. Additional research into addiction and better therapy or treatment could also assist society in gaining better control of the problems at hand.

IPO Pricing: Underwriter and Litigation Risk Impact

IPO Pricing: Underwriter and Litigation Risk Impact Going to public fund is one of the strategies to company to getting additional fund. Before that, company must publish their share to bursa Malaysia before invite the public to buying their share. But for unlisted company they cannot simply publish their share to public and they must be listed in bursa Malaysia first. With that they must publish their prospectus when the first time they want to issue share to public and this is we called Initial Public Offering (first time going to public). Background In Malaysia history of IPO are begin when Malaysia stock market was establish as the Malaysian stock exchange in 1960. 1n 1973 the Kuala Lumpur Stock Exchange Berhad (KLSEB) and Singapore Stock Exchange (SES) are begin to replace the Malaysia Stock Exchange. In that time number of company that issuing IPO is not more to 500 companies. From 1973 until 2007 the IPO trend is showing quickly publish. In 1973 the number of listed company only 262 and up until 2007, Malaysia stock market have 1028 company. This rapid increase in the number of new listings is attributed to a number of factors, mainly to raise financing for expansion, to reduce the cost of new funds and to reduce the level of leverage (Shamsher et al., 1994). In 1980, the market valuation in Bursa Malaysia is about RM43 billion and reach to a trillion ringgit in year 2007. It happen when many companies are started to going public fund. Apart from that in year 1991 to 2003 the individual retailers have constituted more than 85% of the market player in bursa Malaysia IPO. Compared to the individual retailers group, the institutional investors group is reporting a smaller average at 2.05%. The remaining 6.47% of the market participants is consisting of others. From the 1984 to the 1995 the newly issue of IPO on the main board on KLSE is 173 company. Similar like that, when certain company wants to issuing the IPO, they are requiring by law to allocate 30% for Bumiputra investor. The main objective is to ensure the Bumiputra has own shareholding at least 33% on the entire market share. The pricing of IPO in Malaysia are regulated by Security Commission (SC) and it only take place when ministry of Trade and Finance (MITI) and Foreign Investment Committee (FIC) have giving their consent to the listing. It means the SC has make valuation on company in term of company financial statement and performance to evaluate whether certain company is really valuable to publish on the bursa Malaysia. One of the differential and unique IPO in Malaysia is, major of shareholder and the promoting bank (underwriter) have the choice to provide the profit guarantee not less than 90% on forecast profit on prospectus. Another way, the prospectus of company must be publish in Bahasa or English language and it must submitted to MITI, FIC and SC and the first trading is about in 12 month. The company, is not to seek approval the right issue from the SC during the 12 month they are listing, because actually the time between companies submit prospectus date to the SC for approval right issue to start trading is about 6 month. Recent reforms in Government Linked Companies (GLCs) are expected to improve performance and encourage private investment. More than 40 GLCs are listed, comprising less than 10% of Malaysias GDP. Changes in management, adoption of performance based contracts for management and implementation of key performance indicators (KPIs) are some of the reform that has been underway since April-May 2004. Merger and Aquistion (MA) actively declined in volume terms, due to a lack of very large transaction. Nonetheless, the number of MA transactions has remained stable over the past two years. Singapores Temasek Holdings acquired large minatory positions in Malaysia banking and plantations companies. In the automotive industry, Chery Automotive, a Chinese assembler has announced plans to earmark Malaysia as their regional distribution hub, while Proton reached a deal to assemble Volkswagen Cars and distribute them in Southeast Asia. Proton, Sime Darby and Telecom Malaysia have all announced acquisitions of foreign companies too. 1.2 Problem Statement Initial public offering (IPO) one of the manners to company get additional fund thru equity funding, when certain company wants to increase their operation, but it not sufficient fund of borrowing they can officially going to public fund primary market (when first time company going to public). In other words, this IPO tend use by small growth firm to increase their capital and to issuing new capital. This company must be perfectly evaluating certain cost, i.e. cost of underwriting, attorney fee, cost of management time allocation to the lawsuit, reputation cost and so on. All of these cost potentially become liability for a small company in the first time they issue IPO. The first problems of the research are to identify about the underwriter effect on IPO. Apart from underwriter, second areas on this research will looks on information of the companies, information also can become higher cost for issuer, they will incur cost to encourage information generation prior to the IPO and after the IPO because issuer want giving good impression to customer about their company. But for customer, cost will be incurred when they want searching strong information about certain company profile. Basically, IPO will be determining by investment bank and IPO firm managements to setting up IPO price (offer price spread). This to make comparison, between company offer price (company determine IPO price) and what actual price should be offer by company. On top of that, potential litigation costs are quite significant for firms that have recently gone public. Attorney fees, the costs of management time allocated to the lawsuit, reputation costs, and settlement costs represent an enormous potential liability for a young firm. The last areas we will look on relation between risk and IPO in an aspect of the litigation-risk, where the firms with higher litigation risk will affect their IPO? 1.3 Approach of the Study In research we have two methods, firstly we have quantitative and second the qualitative (Gubra and Lincon, 1994). In our research the quantitative method will be chosen with the purpose of this study because it able to value observation, precise measurement, statistical analysis, data collection is fix/cannot manipulate, variable truth and the most important is the hallmark good quantitative research are reliability and validity of data collection. After data are already collected it will be need to be edited, then data have to be coded and lastly data have to be key in and software programmed used to analyze the data. After data has been analyzed, we can make interpretation to getting conclusion about our research and make recommendation or suggestion to make improvement to Malaysia IPO. The final result also can be use for investor to do decision making about the attraction investment for them. 1.4 Scope of Study The scope of our research is consisting all company listed during 2000 until 2008 in Bursa Malaysia, whereby compasses 8 years in areas of to identity whether the Underwriter, Litigation and Prospectus will influence company pricing of IPO. CHAPTER 2 LITERATURE REVIEW This chapter we examine those factors generally considered to impact IPO performance to assess the extent to offering price is likely to be set and in setting the offering price. It is organized into two sections. The first section presents the historical of IPO and second section given the capital structure, secondary market return, litigation and prospectus in effected the IPO pricing. 2.1 Initial Public Offering Malaysia law define sale of expand authorize share of a company as new issue and the offer of share from the existing shareholder to the public is define as sale of share. The new issue market therefore consists of new issue and the sale of share of private company and government linked company to the public. Regulator approves new issue with elaborate care to ensure public interest is safeguard and the approval process may take up to a year in a large placement. Offering new issue to outsider help to raise finance for expansion and to obtain less costly source of new fund. Some research has been done by Fama 1984, company that listed in the New York market raise capital at a lower cost, the having from which amount to three quarter of one percent compare to unlisted company. Apart from that the investor has purchase of share listed in the secondary market obtain nominal yield, with are lower on average than in the new issue market. This extra return in a new issue market is the insider value factor which make offer price lower thus giving a high return. The over subscription of new issue keep feeding the frenzy for new issue. One study has suggest that the over subscription rate in Malaysia average 46 time (Dawson 1987, Yong 1991). Similar like that the new issues are price by the market at a much higher level than would be the case if (a) the new issue was equally like to be issue in bull or bear market and (b) there is no frenzy in wanting to subscribe to new issue. Because of the frenzy in the new market issue, there is practice pressure during the initial few month, which keep the price artificially high during this early period after listing. At the same thing, one would expect the price in the new issue market to attain normal level after the initi al few month when normal price unfettered by price pressure begin to emerge. For another part the new issue are substantially underprice in the Australian, UK, USA and the developed market. It similar behavior found in Malaysia because the offer price appears to be a deep discount of the initial day for market price. But the extent of underpricing is smaller in the developed market than in the developing market. The research finding on the IPO in the some developed country such as Australia, UK, USA and developing market such as Korea, Malaysia Singapore and other suggest an apparent underpricing of new issue because offer price appear to be a large discount off the initial listing day market prices. Considered again the long run share market return report in all these country, and the reward rate of those allocation new issue are substantially higher than normal rate of return in the secondary market of these country. Therefore, new issue should provide higher reward, which is the source of underpricing. apart from that the investment bankers try to reduce the offer risk and cost of underwriting by underpricing the issue. The present evidence of underpricing may also be due to the uncertainty about the real value of share and the related need to offer compensation to the investor for assuming the risk of the uncertainty. But for recent research has been done (Arif, Prasad, Shamsher and Annu ar 1994) contradict this widely disseminated explanation. Share appears to be issue at their intrinsic value but then price are bid up by an optimistic investment market, which wrongly interpret demand pressure as understanding. While Ross (1984) explain the underpricing of IPO using the idea of information asymmetry between informed and unimformed investor. He suggest that the asymmetry of information between the issuer and their investment banker is less relevant for pricing. 2.2 IPO and Secondary Market Returns Bradley et al (2009) examined IPO secondary market returns on the first day of trading during 1993-2003, and findings important things. First, there are open to close return are much larger than previously documented and potentially exploitable. It was averaging over 2% during the sample period. Second, we found that the market does not reach an equilibrium price until approximately 2 h into trading. Although this average is driven upwards by IPOs during bubble period. Third is that effect is persistent over the entire sample period, considered where they consider several non-mutually exclusive explanations, such as: price support by the lead underwriter, laddering, retail sentiment, and information asymmetry. They also examined the impact of retail sentiment on secondary markets return and found there were a strong positive relationship between the proportion of small trades and open to close returns consistent with the view that retail demand and sentiment can push IPO prices higher. But this argument assumes that these overoptimistic retail investors would ultimately experience a reversal. They also argue that information asymmetry can be in the form of aggregate demand uncertainty, which is unlikely to be resolved until the IPO opens for secondary market trading. 2.3 Company Capital Structure Basically firm has two source of fund, firstly they can use from internal fund and second for external fund. For internal fund they can use additional retain earning and also additional equity of shareholder and for external fund it can be use loan from financial institution and primary debt issue in the debt market. The capital structure theory is inconclusive about which factor determine borrowing level, expect providing the general idea that a firm ability to identify positive net present value investment should determine capital need, and further that a firm capital structure quality also determine the tax shield value from debt. Modigliani and Miller (1958) argue that the capital is not influence by a firm financing mix under the assumption that the capital market is perfect and there is no corporate tax. Average cost of capital will be lowering when market is imperfection and it increase value of the firm subsequent to borrowing. But for (Robicheck and Myer 1966, Hamada 1972) the firm financial risk will be increase when company has make decision to continuously borrowing. For another part if company is have extra debt, the shareholder risk will be higher. It happens because if these companies are going to bankruptcy, the first company obligation action is paying all their debt first. For (Gupta 1982) before company achieves maximum debt, the maximum value of the firm will always be reach first. Company has made decision going to public because they want to increase fund to run the business in big scale. For (Gordon 1990) examined the relationship between a firm financing structure and the company technology. His result has supported the idea that firm with high capital to labor ratio acquire financing to run it business. 2.4 IPO and Litigation risk In our study on litigation, Skinner (1994) finds that the threat of litigation potentially alters firms disclosure behavior, and Krishnan and Krishnan (1997) and Shu (2000) find that this same threat causes auditors to stay away from risky clients. We extend this line of research by documenting another effect of litigation risk, it leads IPO firms to lower their offer price as one form of insurance against future litigation. Tinic (1988) tests the litigation-risk hypothesis by comparing the IPOs prior to and subsequent to the 1933 Securities Act, which substantially increased the legal exposure of IPO issues. Alexander (1991) examines 17 computer-related IPOs in 1983. She finds that securities lawsuits were more likely filed when the dollar amount of the ex post stock price decline was sufficient to support the fixed cost of bringing a case. She also finds little variation among the settlements as a fraction of shareholder losses. Further, consistent with the deterrence effect of IPO, there is evidence that firms that engage in more IPO significantly lower their litigation risks, especially for lawsuits occurring closer to the IPO dates. After controlling for the endogeneity of initial returns and lawsuit probability, both the insurance and deterrence aspects of the litigation-risk. The simultaneous-equation framework used in this study is potentially useful for other settings. 2.5 IPO and Prospectus Information The process of taking a firm public enables firms owners to realize both personal and professional goals. Taking the firm public, for example, enables entrepreneurs who have invested considerable time and resources in building the firm to sell a portion of the firm, thereby providing personal funds as a reward for their efforts and enabling them to diversify their wealth (Rock, 1986). Moreover, the IPO helps entrepreneurs secure funding that allows them to pursue growth opportunities for the firm. As the firm grows, entrepreneurs may find themselves unable to secure increasing capital requirements to fund firm growth. Also, entrepreneurs may seek to avoid covenant-filled commercial loans that hinder their ability to take the risks necessary to pursue firm growth opportunities (Rock, 1986). Investment bankers are responsible for coordinating the stock offering for the IPO firms managers (Benviste and Spindt, 1989). They provide an invaluable source of guidance for IPO firm entrepreneurs and managers, most of whom will have had no prior experience with the complex, often lengthy, process of taking the firm public. In addition to facilitating the IPO process by counseling firms entrepreneurs and managers, investment bankers assume primary responsibility for effectively marketing the firms securities to the investment community. The investment bankers determine the offer price spread, which must be disclosed either in the preliminary prospectus or shortly after filing the registration statement in an amended prospectus. The actual offer price is not determined until the day prior to the stocks offering. This spread and offer price are of central importance to the entrepreneurs taking the firm public, as they determine the amount of funds the IPO firms owners can expect to raise as a function of the stock offering. Given their centrality in the IPO process, it is important to understand those factors that may assist investment bankers in their initial determination of the spread within which they believe the final offer price will be set and, subsequently, the final offer price. The price spread may provide an indication of the level of uncertainty surrounding the IPO. Uncertainty in the IPO context derives largely from the fact that the firm, while it may have an extensive operating history, has not previously operated under public scrutiny. CHAPTER 3 METHODOLOGY This chapter are consist and will be discuss about the purpose of the study, population of study, data collection, independent variable, dependent variable, research modeling and the lastly the data analysis. 3.1 Population of Study The population of our research is consisting all company IPO from 2000 until 2008. We also want to identity whether the Underwriter, Litigation and Prospectus situation will influence the investor to make the investment and how they react to company announcement of IPO in the good economic situation. On top of that, we might look on about company performance before and after the 1997 Malaysia financial crisis on the areas of our study. 3.2 Data Collection To investigate the new IPO issue since 2000 until 2008, which had all the require information for analysis on our research. The public record in various issue of investor digest, daily diary and the company files from Securities Commission (SC) and Bursa Malaysia (BM) were accessed to obtain value for the variable. On top of that, requests for IPO prospectuses were sent to all firms undertaking IPOs in 2000 and 2008 as identified by the SC. 3.3 Independent Variables We rely on three independent variables for hypothesis testing, the first is the Prospectus Information. Founder CEO is a dichotomous variable with zero being a nonfounder CEO and one a founder CEO. CEO retained equity is calculated as the percentage of the IPO firms stock that the CEO will hold following the opening day of trading. These data are reported in the prospectus filing. Board composition is measured as the percentage of independent outside directors serving on the board. Board size is measured as the total number of directors serving on the IPO firms board. Second independent variable is Litigation Risk, as argued earlier, a firm about to make an IPO faces a trade-off in its pricing decisions. A higher offer price increases proceeds from the IPO, but it also raises the expected litigation costs. Two predictions emerge concerning the cross-sectional relations between IPO and inherent litigation risks. First, firms with higher litigation risk purchase more insurance, that is, they their shares by a greater amount (the insurance effect). Second, firms who choose higher levels of insurance incur lower expected litigation costs in the form of reduced probabilities of lawsuits. The third part is underwriting. The underwriter is playing to influence the public confidence about the company. If the company IPO is not over subscribe, the underwriter will be help that company to resell the IPO and maybe buying the IPO behalf of the company. When the company first time to setting the IPO price, it to hart to determine the suitable price because lack of expertise. The simple way to company is making negotiate with the underwriter. The issuer and underwriter is lock to the offer price regardless of the subscription of the market movement. Basically inside the underwriter agreement it conclude the underwritten fee, amount and whether the issue will indemnify the underwriter again all liability, cost and expence incur by the underwriter in relationship to the issue. 3.4 Dependent Variables This variable is computed as the difference between the high and low values in the range of offer prices established by the investment bankers. We calculate this measure as the (stock price at the time of IPO the firms book value)/stock price at the time of IPO. This price reflects the price at which the firms stock will be sold to initial investors on the opening day of trading. A firm litigation risk is also increasing in the volatility of the stock. One way to obtain the expected volatility is to use the standard deviation of prior stock returns. However, this is not feasible for IPO firms. Another alternative is to use the standard deviation of post-IPO returns. However, this is not observable prior to the IPO and may not be in the managers information set at the time of the offering. For (Smith, 1991 and Raghavat 1996) the company that issue the new security in public need the investment banking to become their underwriter in return for a commission comprise management fee, underwriting fee and the lastly the selling concession. The compny also must carefully choose their investment banker to become their underwriter, because the good of underwriter will be able this company increase their IPO price (negotiation and discussion between bank and company). One of the criteria is the underwriter must know the company industry, tern of propose offering, potential conflict of interest relating to the investment banker affiliation with the issuer competitor and the ability to the company provide research support after the offering price. 3.5 Research Modeling DEPENDENT VARIABLE INDEPENDENT VARIABLE Prospectus Information Initial Public Offering Litigation Risk Underwriter E(à ¯?†¢i) = ÃŽÂ ²1 + ÃŽÂ ²2X2 + ÃŽÂ ²3X3 + ÃŽÂ ²Ãƒ ¢Ã¢â‚¬Å¡Ã¢â‚¬Å¾Xà ¢Ã¢â‚¬Å¡Ã¢â‚¬Å¾ + à ¯? ­i. ÃŽÂ ²1 = Intercept, value of à ¯?†¢I when X2, X3, X4, equal to zero (0). ÃŽÂ ²2 = Changing in à ¯?†¢i when X2 change with assumption X3, X4, is constant. ÃŽÂ ²3 = Changing in à ¯?†¢i when X3 change with assumption X2, X4, is constant. ÃŽÂ ²4 = Changing in à ¯?†¢i when X4 change with assumption X2, X3, is constant. X2 = Prospectus information X3 = Underwriter X4 = Litigation risk à ¯? ­i = Yi error in population. The hypotheses are stated below: H0 = 0, mean has no significant relationship. H1 à ¢Ã¢â‚¬ °Ã‚   0, mean has significant relationship. Prospectus information H0 = Prospectus information does not significant relationship to IPO H1 = Prospectus information has significant relationship to IPO Underwriter H0 = Underwriter does not significant relationship to IPO H1 = Underwriter has significant relationship to IPO Litigation risk H0 = Litigation risk does not significant relationship to IPO H1 = Litigation risk has significant relationship to IPO 3.6. Data Analysis The final stage of our methodology is data analysis. When the data already run we will elaborate on the various statistical test and make interpretation of the result. To analysis our research we use SPSS for window software. The data was analyse to identify, examine, compare and interpreted theme and pattern. The analysis has been started after the collection of all the necessary data basically come from secondary data collection. Use of this SPSS software is illustrated which mainly because they are easily available in business settings. In data analyses, we have three objectives, firstly getting a feel for the data, second testing the goodness of the data and lastly testing the hypotheses developed for the research.

Pragmatism, Empiricism and David Hume :: essays research papers

Pragmatism, Empiricism and David Hume   Ã‚  Ã‚  Ã‚  Ã‚  Pragmatism is based on the philosophy that ideas must be tested and re-tested, that experiences dictate reality. Pragmatists also believe in no absolute truths or values existing. David Hume argues that, â€Å"no proof can be derived from any fact, of which we are so intimately conscious; nor is there anything of which we can be certain, if we doubt this† (Treatise 2645). Hume’s empiricist ideals were roots to early pragmatic thought, by way of the theory that, in our reality, nothing is certain and everything that can be sensed must be constantly qualified to find a place in reality.   Ã‚  Ã‚  Ã‚  Ã‚  Hume’s position on our experiences deciding our veracity follows the school of pragmatism by staying away from any conclusive ideals. Thus, his angle on empiricism melds with pragmatism on the level of determining one’s self’s existence. Similar to Descartes, he explains that even, and more often than not as per constant perception, metaphysical experience can mold one’s identity. â€Å"And were all my perceptions removed by death . . . I should be entirely annihilated, nor do I conceive what is farther requisite to make me a perfect nonentity† (2645). Based so heavily in perception, he further deduces that when â€Å"insensible during sleep† and all perception of environment lies dormant, existence may halt (2645).   Ã‚  Ã‚  Ã‚  Ã‚  Hume speculates most closely on miracles and opens his essay with the stance that, â€Å"A miracle is a violation of the laws of nature . . . the proof against a miracle, from the very nature of the fact, is as entire as any argument from experience can possibly be imagined† (Enquiry 2647). He continues throughout his essay, supporting his claim and also breaking down Christianity, highly-based in such phenomena, proving the impossibility of the existence of miracles. This trend is something a pragmatist would argue against, firmly believing in there being nothing absolute. Yet, despite his resistance he concludes, â€Å"whoever is moved by faith . . . is conscious of a continued miracle in his own person . . . and gives him a determination to believe what is most contrary to custom and experience† (2650). This statement, although a bit contradictory to his thesis, appeases to pragmatist thought, allowing for an explanation to those who are still det ermined to believe in miracles and the like and allows for them to own an identity under his definition.   Ã‚  Ã‚  Ã‚  Ã‚  It is at this end where his level of pragmatism veers from Charles Peirce to William James’ end of the spectrum.

College Should Not be a Playground :: College Admissions Essays

College Should Not be a Playground University students today have it pretty good. At decent-sized schools, students have access to any number of low-cost services that civilians would donate organs for. We get gyms and fitness centers for free or close to it. We have computer labs, lounges and more clubs and societies arriving every semester. With little or no fees, on-campus coffee bars and pick-up basketball games make traveling into the real world increasingly ludicrous. Sure, we pay more in tuition rates to help off set the cost, but college students these days shouldn't sweat the bill's bundled-in activity fees - it's simply worth it to fork over a little extra cash for the added convenience. Besides, with college rates continually on the rise, these resource charges amount to a drop in a very large bucket. On the other hand, shouldn't a University provide for its students without bleeding them dry? After all, without the learners, the educators and administrators would be jobless. So why should students pay for access to increasingly basic and common services? Students have come to expect these tasty perks, as if our Universities owe us for passing through their hallowed halls. But have we come to expect too much? Do we truly deserve extravagant bonuses? My own school has for years given students free, unlimited, high-speed access to the Internet. All rooms in all dorms have long had an Ethernet port, intended to help us with our studies. Any student can plug in, call up the library's extensive database subscriptions, and hunt for journals, articles and other information on a boundless range of topics. Of course, with such power comes responsibility, for students can also visit the seedier and less, shall we say, academic nooks of the World Wide Web. In light of this, UMD began cracking down on Internet access and Networking capabilities on campus last year. First, the students' file-sharing capabilities were restricted. Many students grumbled, but the administration remained firm. Most recently, filters blocked the transfer of certain controversial file types. Student outcry led to a scaled-back version of the sentinel software, but the students haven't finished crusading. The school, they say, has infringed on our rights by installing restrictive programs between the Internet and us. University literature promises "free, unlimited" Internet access, and

Feasibility of Nationalising the South African Mining Sector Essay

Introduction The mining industry forms the foundation of South Africa’s economy. Currently South Africa is the biggest producer of platinum in the world and one of the top producers of gold. Julius Malema, the leader of the African National Congress Youth League (ANCYL) was at the forefront of having a detailed perspective on the nationalisation of mines in South Africa at the beginning of 2010. Malema believes the nationalisation of mines will solve all economic disparities in South Africa. There are many South Africans who agree or disagree with this idea. The following discussion will provide answers to why it should be done and who benefits or why it should not be done and what the shortcomings are and the costs that the country will incur if it were to be done as well as examples of nationalisation in other countries (Roberts, 2011). Discussion Nationalisation is the operation of transferring ownership from the private sector to the public sector. According to the minister of finance, Mr Pravin Gordhan stated on the March 14, 2011 that nationalisation of South Africa’s mines and other economic assets are not government policy. â€Å"Nationalisation of mines means the democratic government’s ownership and control of Mining activities, including exploration, extraction, production, processing, trading and beneficiation of Mineral Resources in South Africa†(ANCYL, 2010). Therefore this would mean that no mines would be publicly owned but they would be owned by the state. It has been sixteen years since apartheid and the white minority of 10% of the population owns 80% of the country’s economic wealth. The Freedom Charter is a document that expresses the economic, social and political will of South Africans and according to the document, the mineral wealth of South Africa belongs to the people as a nation. â€Å"It is against this background upon which a concrete position on the nationalisation of Mines is formulated in order to guide the ANC in the transfer of mineral wealth beneath the soil to the ownership and benefit of the people as a whole† (ANCYL, 2010). If the state owns the mines it would allow them to manage the economy by controlling the important industries. They could also invest a larger amount of money and make their services more efficient. Nationalisation of the mines does not mean all sectors are in the hands of the country’s citizens and that they will benefit from all the sectors. It does not yet say anywhere what the ratio (between state owned and privately owned) of the division will be when nationalisations occurs, if it does. Therefore people shouldn’t think that the state will automatically have over half or a larger percentage. An important factor is whether nationalisation will be with or without compensation. It would almost be impossible to nationalise with compensation as the government currently doesn’t have the figure of about R 2-trillion which is how much it would cost to purchase the mines. But on the other hand, expropriation without compensation would cause a collapse of the Johannesburg Stock Exchange (JSE). This would bring down provident and pension funds at the same time. A large number of servants and citizens would be without their retirement investments as well (ANCYL, 20 10). Therefore this poses a big problem already. Some people might think why the mines should be nationalised. Below are three reasons. 1. â€Å"Nationalisation to increase the State’s fiscal capacity and better the working conditions† (ANCYL, 2010). It states that the money received from taxes is not enough to help each and every single South African citizen, which it is not. Education, healthcare, safety and security and housing will not be provided to the masses if the government is not in control of the important sectors. There have been other success stories, such as in Botswana where nationalising the mines provided mineworkers with a safer working environment and higher wages. 2. â€Å"Nationalise to Industrialise and Create more jobs† (ANCYL, 2010). More jobs will be created and industrial investors will be attracted to add to education, expertise and the economy. 3. â€Å"Nationalisation to transform South Africa’s unequal spatial development patterns† (ANCYL, 2010). This means the areas that will be focused on will be ones which will be sustainable in the future as well as effective. Smaller areas that have never been mined before could be targeted as it will provide more jobs in these areas which rarely see economic activity (ANCYL, 2010). Malema believes that everybody in South Africa has the right to the wealth that is produced and that the state should own the larger part of the mines. â€Å"South Africa is divided as we speak. We’ve got two economies in one country, two nations in one country, and it is nationalisation that will unite us† (Andrew, 2011). He also believes many jobs will be created once the mines are nationalised. Patrice Motsepe, a South African businessman, states that he would back Malema’s decision as long as it is in the best interests of South Africa. The ANCYL believes South Africa’s minerals, water, land and marine resources should be used to maximise growth of South Africa’s economy and not purely for profit (Shivambu, 2010). If the mines are nationalised, new economic centres will be developed, new industrial development zones will be established, jobs will be created as the mines owned and controlled by the state will increase local beneficiation and industrialisation of the available mineral resources, and local economies will be developed (Shivambu, 2010). General Secretary of Congress of South African Trade Union (COSATU), Zwelinzima Vavi says that â€Å"Nationalisation can bolster our economy and it will always ensure development† (Beukes, 2011). He said that the nationalisation of the mines will make available money to all the people of the country, not only those who are currently working in the private sector (current mine owners) (Beukes, 2011). One of the ANCYL’s argument is that nationalisation was a demand found in the Freedom Charter and that South African citizens should share the mineral wealth of the nation between each and every one (Achary, 2010). Thus there are valid reasons for the mines to be nationalised but the major concern is the cost that the country would incur to make nationalisation happen. â€Å"Nationalisation is an unaffordable, untimely and frankly unnecessary suggestion, which has already undermined market stability† (Time, 2009). It would cost South Africa R1.4 to R2 trillion to nationalise the mines which seems silly if you think South Africa has the fifth biggest mining industry in the world. This figure does not include extra running costs as well as the costs that go with running loss-running mines. This shows it is a big part of the economy and would be tough to be nationalised. This figure is the same as trebling South Africa’s national debt over a single night, which is unrealistic (Time, 2009). â€Å"The debate on the thorny issue heated up with business executives and analysts warning that nationalisation would damage the economy† (Isa, 2011). Many say it is a disaster and has been for every country who has tried to pull it off. Susan Shabangu said â€Å"consideration of the step was misguided, as the real issue was to address povert y, unemployment, and inequality† (Isa, 2011). This shows that the debates that are ongoing will deter foreign investments. The ANC do realise that it’s close to impossible to nationalise the mines and come off on the right foot but are currently looking at models of how it could be implemented effectively (Isa, 2011). The nationalisation of mines has also been seen as a ploy to try and save Black Economic Empowerment (which has been in place in South Africa for a while, but has not achieved what it hoped to) and not focusing on the amount of poor in the country as well as the amount of unemployed workers (Business Day, 2011). The market value of South African mines (listed) is almost 850 billion rand which is above a third of the country’s total Gross Domestic Product (GDP). Therefore the government should be more concerned over matters such as the education level and the health of the countries people. â€Å"Zambia nationalised the copper mines, which supplied 90% of its exports, in the early 1970s. It ended up hiring back the multinational copper companies to manage them† (News24, 2010). Zambia is the world’s 11th largest producer of copper. The mines were nationalised in 1969 and at this time were exporting about 700 000 tonnes of copper per annum. By the year 2000, exporting figures had constantly decreased to 225 000 tonnes. The result of the decline was partly because of a lack of investments as well as mismanagement of the mines. â€Å"Zambia has neither the capital nor the skills to run the mines by itself† (Time, 1969). Other factors were the drop in the price of copper, a lack of skills among the citizens in Zambia and they were unable to raise capital. They lacked a strong plan with which to back up their initial aim (Time, 1969). Restrictions were placed on exports and imports which resulted in exchange rates rising and therefore gains from exports reduced. Zambia also failed to save earnings when the copper price was high and thus when the price fell, they suffered immensely. Even though the situation is not exactly the same, it does show that to nationalise mines a lot of debate needs to occur as well as research and obviously the country needs the required funds to make sure it can be made possible. South Africa does not have these funds at the moment and thus would not be able to nationalise the mines unless they are willing to operate with huge debts which is unfeasible (Osei-Hwedie, 2003). Conclusion â€Å"Nationalisation is an unaffordable, untimely and frankly unnecessary suggestion, which has already undermined market stability† (George, 2009). This statement sums up the idea of nationalisation of mines in South Africa. It obviously has its advantages such as giving higher wages and creating more jobs but it is clearly evident that the positives are outweighed by the negatives. With so many jobs in South Africa’s mining sector at stake, it is irresponsible to talk about placing this key sector of the economy in the hands of government people. The country does not have nearly enough funds for this project to take place and thus in my view should not take place in even in the near future (Marais, 2010). Reference List ACHARY, N. (2010). Nationalising the Mining Sector in South Africa [Online]. Available: http://www.suite101.com/content/nationalising-the-mining-sector-in-south-africa-a281585 [Accessed 25 September 2011]. ANCYL (2010). Towards the Transfer of Mineral Wealth to the Ownership of the People as a Whole: A Perspective on Nationalisation of Mines. [Online]. Available: http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71654?oid=158357&sn=Detail [Accessed 22 September 2011]. ANDREW, M. (2011). Nationalisation will unite SA, says Malema [Online]. Available: http://mg.co.za/article/2011-08-05-nationalisation-will-unite-sa-says-malema [Accessed 21 September 2011]. 3 BEUKES, W. (2011). Vavi joins ANCYL in calls for nationalisation [Online]. Available: http://mg.co.za/article/2011-08-06-vavi-speaks-in-favour-of-nationalisation [Accessed 25 September 2011]. BUSINESS DAY (2010). Nationalisation won’t help poor – Nzimande [Online]. Available: http://www.businessday.co.za/articles/Content.aspx?id=147053 [Accessed 26 September 2011]. GEORGE, D. (2009). Nationalising South Africa’s mines would cost R1.4-trillion [Online]. Available: http://da.wwc.co.za/newsroom.htm?action=view-news-item&id=6967 [Accessed 25 September 2011]. ISA, M. (2011). Nationalisation talk ‘costing SA jobs’ . [Online]. Available: http://www.businessday.co.za/Articles/Content.aspx?id=150052 [Accessed 27 September 2011]. MARAIS, E. (2010). Budget Speech: Nationalisation of SA’s mines [Online]. Available: http://www.da.org.za/newsroom.htm?action=view-news-item&id=8231 [Accessed 23 September 2011]. NEWS24 (2010). Zambia’s nationalisation woes: ANC [Online]. Available: http://www.news24.com/SouthAfrica/Politics/Zambias-nationalisation-woes-ANC-20100730 [Accessed 20 September 2011]. OSEI-HWEDIE, B. (2003). Development Policy and Economic Change in Zambia [Online]. Available: http://www.dpmf.org/images/Zambia-devt-bertha.html [Accessed 24 September 2011]. ROBERTS, J. (2011) SA’s mining industry losing ground [Online]. Available: http://www.businesslive.co.za/southafrica/sa_markets/2011/08/04/sa-s-mining-industry-losing-ground [Accessed 25 September 2011]. SHIVAMBU, N. (2010). The case for the nationalisation of mineral resources [Online]. Available: http://mg.co.za/article/2010-09-21-the-case-for-nationalisation-of-mineral-resources [Accessed 23 September 2011]. TIME MAGAZINE (1969). Mining: Nationalization in Zambia. [Online]. Available: http://www.time.com/time/magazine/article/0,9171,898567,00.html#ixzz1YgJNdxqy [Accessed 22 September 2011].

Human fossil findings in Indonesia

Indonesia is an of import state to analyze about human beginnings and development, due to many sites within cardinal Java, such as Sangiran and Ngandong which account for 75 per centum of the world’s Homo erectus findings ( Frederick & A ; Worden, 2011 ) . Development of Homo sapiens in Indonesia has shown Indonesian archipelago was inhabited by Homo erectus, which were known as the â€Å"Java Man† , between 1.5 million old ages ago and resent as 35,000 old ages ago. About 800,000 old ages ago, some of the earliest hominids of the archipelago made tools, constructed boats, used fire, and had a linguistic communication ( Fredrick & A ; Worden, 2011 ) .Furthermore, about 600,000 old ages ago, these hominids have developed a more complex and civilised civilization which was scattering throughout Indonesia ( Fredrick & A ; Worden, 2011 ) . Patterns of development started to organize through hunting, fishing, and making communities which depended on tools made of stuffs such as shell, wood, bamboo, and rock ( Fredrick & A ; Worden, 2011 ) . The most recent finds in human dodos, were in 2004 on the island of Flores, Indonesia, which is located between Bali and Timor. Flores, Indonesia is one of many Wallacean islands, which lie E of Wallace ‘s Line and west of Lydekker ‘s Line.Teams of archaeologists found an wholly new type of hominid species at the Liang Bua digging site, which has since been named Homo floresiensis. This type of hominid has been considered a new hominid type that had locally evolved, was a well smaller hominid, and was assorted between Homo erectus and modern worlds ( Fredrick & A ; Worden, 2011 ) . Homo floresiensis was a dwarf homo, which lived at Liang Bua between at least 95,000 and 13,000 old ages ago. The species was believed to hold used rock tools, fire, and hunted little animate beings found on Flores ( Foley, 2005 ) . The freshly found remains had a skull that appeared to belong to a hominine species, perchance belonging to a kid sing its size, but one time the staying parts of its skull and dentitions were found and they concluded it did non belong to a kid, but an grownup. The remains of this hominines partial skeleton was found and, the likes of which had ne'er been discovered before.Today, this specimen is referred to as Liang Bua 1 ( Smithsonian Institution, 2014 ) . The earliest modern worlds coexisted with their hominid relations for 1000s of old ages, although there is no grounds of this at Liang Bua ( Fredrick & A ; Warden, 2011 ) . Although Indonesia is highly diverse ethnically, with more than 350 distinguishable cultural groups that are recognized, along with 13 linguistic communications spoken by 1 million talkers ( Fredrick & A ; Warden, 2011 ) . Human in-migration to the islands of Indonesia occurred as long ago as 3000BC, and was uninterrupted for about 3000 old ages. Peoples immigrated to Indonesia in little groups and established independent civilisations all around the seashore, on occasion coexisting with the hostile posterities of â€Å"Java Man† ( Frederick & A ; Worden, 2011 ) . In the following several millenary Indonesia developed cultural features that still exist today such as rice agribusiness, ceramic and metal engineering and the enlargement of long distance seal travel and trade. Earlier dwellers used horticultural economic system in which they grew cereals, created clayware and rock tools during the period 2500 to 500 B.C ( Glasscase, 2011 ) . During the period between 500 B.C. and A.D. 500, as the people of the archipelago progressively interacted with South and East Asia, metals and domesticated farm animate beings were introduced ( Glasscase, 2011 ) . The Dongson civilization, which originated in Vietnam and southern China around 1000 BC, spread to Indonesia, conveying irrigated rice turning techniques, husbandry accomplishments ; buffalo forfeit rites, bronze casting, the usage of raising megaliths, and ikat weaving methods. By 700 BC, Indonesia was dotted with lasting small towns where life was linked to rice production ( Alone Planet, 2014 ) . These early colonists were animists, believing all objects had a life force or psyche. The liquors of the dead had to be honored, as they could still assist the life and influence natural events, while evil liquors had to be warded off with offerings and ceremonials. As there was a belief in the hereafter, arms and utensils were left in grave for usage in the following universe. By the first century AD, little lands, were little more than aggregations of small towns with a leader, which evolved from Java ( Lonely Planet, 2014 ) . The island’s changeless hot temperature, abundant rainfall and volcanic dirt were ideal for wet field rice cultivation. The organisation this required may explicate why the Javanese developed a apparently more successful society than the other islands. It is non certain how Hinduism and Buddhism arrived in Indonesia. The oldest plants of Hindu art in Indonesia were found in Sulawesi and Sumatra in 3rdcentury AD ( Fredrick & A ; Worden, 1992 ) . One theory suggests that the development tribunals invited Brahman priests from India to watch over on religious and ritual forfeits, thereby supplying position to those in control ( Fredrick and Worden, 1992 ) . In earlier lands, the Hindu-Buddhist land of Sriwijaya rose in Sumatra ( an Indonesian island ) during the seventh century AD ( Lonely Planet, 2014 ) . It was the first major Indonesian sea power able to command the trade in Southeast Asia by being located on the Strait of Melaka. The Buddhist Sailendra dynasty and the Hindu Mataram dynasty flourished in Central Java ( the largest Indonesian island ) between the 8th and 10th centuries ( Alone Planet, 2014 ) . While Sriwijaya’s wealth came from trade, Javanese lands like Mataram had human labour at their disposal and developed as agricultural societies. At the terminal of the tenth century, the Mataram land declined. The Centre of power shifted from Central to East Java and it was a period when Hinduism and Buddhism were united and when Javanese civilization began to come into its ain ( Pearson Education, 2000-2014 ) . A series of lands held until the 1294 rise of the Majapahit land, which grew during the reign of Hayam Wuruk from 1350 to 1389 ( Pearson Education, 2000-2014 ) . Its territorial enlargement can be credited to military commanding officer Gajah Mada, who helped the land claim control over the archipelago, claiming power over smaller lands and obtaining trading rights from them. After Hayam Wuruk’s decease in 1389, the land began a steady diminution ( Pearson Education, 2000-2014 ) . The first Islamic letterings found in Indonesia day of the month from the eleventh century. Islam foremost took clasp in northern Sumatra, ( a western Indonesian island ) where Arab bargainers had settled by the thirteenth century. From the 15th and 16th centuries, Indonesian swayers made Islam the province faith. By the fifteenth century, the trading land of Melaka ( a little Malaysian province ) was making the tallness of its power and had embraced Islam ( Lonely Planet, 2014 ) . Its influence strengthened the spread of Islam through the archipelago. By the clip of the prostration of the Majapahit land ( based on the island of Java ) in the early 1500s, many of its orbiter lands had already declared themselves independent Islamic provinces ( Alone Planet, 2014 ) . Much of their wealth came from trading spices, and Islam followed the trade routes across the archipelago. By the terminal of the sixteenth century, a new sea power had emerged on Sulawesi, which had been settled by Malay bargainers and whose kingdoms spread far beyond the part ( Alone Planet, 2014 ) . Get downing in 1602, the Dutch easy established themselves as swayers of Indonesia and finally laid the foundation of the Indonesian province, by taking advantage of the failing of the little lands that had replaced that of Majapahit ( Pearson Education, 2000-2014 ) . During 300 old ages of regulation, the Dutch developed the Netherlands East Indies into one of the universe ‘s richest colonial ownerships, pull outing natural resources through local elites but making small to overhaul Indonesia. By the terminal of the Dutch regulation and after many wars and lives taken, the Indonesian people wanted to stand entirely and go united. The Indonesian people started to have a Dutch instruction for the kids of the Indonesian elite, and with that came Western political thoughts of freedom and democracy ( Alone Planet, 2014 ) . However, the first thoughts of Indonesian patriotism came from Islamic motions. Despite Dutch repression, the nationalist motion found a incorporate voice. In a historic proclamation in 1928, the All Indonesia Youth Congress proclaimed it’s Youth Pledge, following the impressions of one national individuality, one state and one linguistic communication ( Alone Planet, 2014 ) . The conflict for independency wavered between warfare and diplomatic negotiations. Under the Linggarjati Agreement of November 1946, the Dutch recognized the Republican authorities and both sides agreed to work towards an Indonesian federation under a Dutch commonwealth ( Pearson Education, 2000-2014 ) . The understanding was shortly swept aside as war escalated. The Dutch mounted a big offense in July 1947, doing t he United Nations to step in ( Pearson Education, 2000-2014 ) . In February 1948 the Dutch launched another onslaught on the Republicans, interrupting the United Nations understanding. Under force per unit area from the United States, which threatened to retreat its postwar assistance to the Netherlands, the Dutch negotiated for independency. On December 27, 1949 the Indonesian flag was raised at Jakarta’s Istana Merdeka, and power was officially handed over ( Pearson Education, 2000-2014 ) . . MentionsFoley, J. ( 2005, April 01 ) .Homo floresiensis: The hobbit. Retrieved from hypertext transfer protocol: //www.talkorigins.org/faqs/homs/flores.htmlFrederick, W. , & A ; Worden, R. ( 1992 ) .Early Dutch east indies. Retrieved from hypertext transfer protocol: //www.shsu.edu/~his_ncp/Indones.htmlFrederick, W. , & A ; Worden, R. ( 2011 ) .Indonesia a state survey. (6thed. ) . Washington, DC: Government Printing Office.Glasscase, F. ( 2011, June 01 ) .Dutch east indies uncovered: Prehistoric Indonesia. Retrieved from hypertext transfer protocol: //indonesiauncovered.blogspot.com/2011/06/prehistoric-indonesia.htmlLonely Planet. ( 2014 ) .History of Indonesia. Retrieved from hypertext transfer protocol: //www.lonelyplanet.com/indonesia/historyO'Neil, D. ( 1999 ) .Homo erectus. Retrieved from hypertext transfer protocol: //anthro.palomar.edu/homo/homo_2.htmPearson Education. ( 2000-2014 ) .Dutch east indies. Retrieved from hypertext transfer protocol: //www.factmonster.com/ipka/A01 07634.htmlProf. Palmer, Soc.3597.01, January 2014.Smithsonian Institution. ( 2014, January 27 ) .Hobbits on flores, Indonesia. Retrieved from hypertext transfer protocol: //humanorigins.si.edu/research/asian-research/hobbits