Impact on Environment by Mining Essay

Overview Rainforests are the biggest source of oxygen, wood and medicines on this earth. Amazon rainforest is known for alluvial gold deposits. Gold is found both in river channels and at the banks of the river after floods (floodplains). Hydraulic mining techniques are used for mining gold. The method involves blasting at the banks of the river. This has caused irreversible damage to trees, birds and animals. While separating the sediment and mercury from the gold-yielding gravel deposits, small-scale miners who are less equipped than industrial miners, may ignore release of some mercury into the river. This mercury enters the food chain through aquatic animals and their predators. Highly poisonous compound ‘cyanide’ is also used to separate gold from sediment and rock. In spite of all precautionary measures, it sometimes escapes into the surrounding environment. Those who eat fish are at greater risk of ingesting such toxins. Read more:  Bad Effects of Festivals on Environment Effect on Land Deforestation: Mining requires large areas of land to be cleared so that the earth could be dug into by the miners. For this reason, large-scale deforestation is required to be carried out in the areas where mining has to be done. Besides clearing the mining area, vegetation in the adjoining areas also needs to be cut in order to construct roads and residential facilities for the mine workers. The human population brings along with it other activities that harm the environment. For example, various activities at coal mines release dust and gas into the air. Thus, mining is one of the major causes of deforestation and pollution. Loss of Biodiversity: The forests that are cleared for mining purposes are home to a large number of organisms. Indiscriminate clearing of the forests leads to loss of habitat of a large number of animals. This puts the survival of a large number of animal species at stake. The cutting down of trees in itself is a big threat to a number of plants, trees, birds and animals growing in the forests. Pollution: Despite measures being taken to release the chemical waste into the nearby rivers through pipes, a large amount of chemicals still leak out onto the land. This changes the chemical composition of the land. Besides  this, since the chemicals are poisonous, they make the soil unsuitable for plants to grow. Also, the organisms that live in the soil find the polluted environment hostile for their survival. Effect on Water Pollution: Chemicals like mercury, cyanide, sulfuric acid, arsenic and methyl mercury are used in various stages of mining. Most of the chemicals are released into nearby water bodies, and are responsible for water pollution. In spite of tailings (pipes) being used to dispose these chemicals into the water bodies, possibilities of leakage are always there. When the leaked chemicals slowly percolate through the layers of the earth, they reach the groundwater and pollute it. Surface run-off of just soil and rock debris, although non-toxic, can be harmful for vegetation of the surrounding areas. Loss of Aquatic Life: Release of toxic chemicals into the water is obviously harmful for the flora and fauna of the water bodies. Besides the pollution, mining processes require water from nearby water sources. For example, water is used to wash impurities from the coal. The result is that the water content of the river or lake from which water is being used gets reduced. Organisms in these wate r bodies do not have enough water for their survival. River dredging is a method adopted in case of gold mining. In this method, gravel and mud is suctioned from a particular area of the river. After the gold fragments are filtered out, the remaining mud and gravel is released back into the river, although, at a location different from where they had been taken. This disrupts the natural flow of the river that may cause fish and other organisms to die. Previously buried metal sulfides are exposed during mining activities. When they come in contact with the atmospheric oxygen, they get converted into strong sulfuric acid and metal oxides. Such compounds get mixed up in the local waterways and contaminate local rivers with heavy metals. Spread of Diseases Sometimes the liquid waste that is generated after the metals or minerals have been extracted is disposed in a mining pit. As the pit gets filled up by the mine tailings, they become a stagnant pool of water. This becomes the  breeding ground for water-borne diseases causing insects and organisms like mosquitoes to flourish. Examples of the Environmental Impact of Mining 1. Environmental Impact of Mining In Guyana In 1995, in Guyana, more than four billion liters of waste water that contained cyanide, slipped into a tributary of the Essequibo; when the tailings dam, which was filled with cyanide waste, collapsed. All the fish in the river died, plant and animal life was completely destroyed, and floodplain soils were heavily poisoned, making the land useless for agriculture. The main source of drinking water for the local people was also polluted. This was a major set-back for the eco-tourism industry on the river. When trees are cut (forest clearing for the construction of roads and mines, wood for the immigrated people, workers, etc.) and water sources are contaminated, animal populations migrate or die. Moreover, hunters are hired to feed the people working at the mining sites. 2. Mining in Goa Illegal mining in Goa is being projected as a bigger scam than Bellary. While revenue losses from illegal mining has been estimated at about Rs 3,000 crore, the loss by way of damage to the environment and loss of livelihood has not been estimated. | | Take the instance of Caurem village in Quepem taluka in south Goa. It has 2,000 families whose farms have been destroyed by illegal mines operating in the area. The silt from mining has entered the fields which now resemble a large quagmire. Tukaram Velip, a resident says that the perennial stream that irrigated the village fields is polluted and agriculture has been completely destroyed. People are left with no means of earning their living, he says.Most of the mines in the state are concentrated in four talukas—Bicholim in north Goa, and Sattari, Sanguem and Quepem talukas in south Goa. Activists say that an estimated 100,000 people living in the villages in these four talukas are affected. Besides loss of livelihood, they are also suffering from the adverse effects of air noise and water  pollution. â€Å"Mining has caused irreversible damage to forests, agriculture, fisheries and water aquifers,† says Abhijit Prabhudesai, member of Goyencha Xetkarancho Ekvott (GXE), a non-profit in Margaon city. He says the government has allowed mining even in forest areas despite the presence of wildlife. The mining has also affected the Salaulim dam on the Salaulim river in Sangeum taluka, which supplies drinking water to half the state’s population, besides providing water for irrigation and to industries. Over 20 mines are operating in the vicinity of the dam. Heavy silt has settled in the dam reservoir because of mining. An official in the state water resources department admits that mining has damaged the state’s water resources and says the department is now reassessing the life span of the Salaulim dam. The dam was commissioned in the 1970s with an expected life span of 100 years. A study conducted by The Energy Resources Institute (TERI) in 1994 showed excess iron and manganese levels in the Salaulim reservoir water. â€Å"This was when mining was at a much lower scale as compared to present level of mining. We have repeatedly asked the government to conduct a study on water availability and quality, but nothing has been done till date,† says Prabhudesai. 3. Environmental Impacts Of Mining On Bundelkhand Region In the Bundelkhand region of Uttar Pradesh, mining has had a huge negative impact on the environment. A Study was done to quantitatively evaluate the extent of the impact and the results were disappointing. The desirable limit of Fe is 0.3 mg/l and maximum permissible limit is 1.0 mg/l as per Indian standards. If water content more than these limit gives brackish color and bitter or metallic taste, therefore may not be use for drinking purposes. Concentrations of Cu in GW and SW samples varies from 0.029 to 0.088 mg/l and 0.039 to 0.062 in all the three seasons indicates that samples have more than permissible limit of Cu (

Advantages and Disadvantages of Having a Mobile Phone

This is a quite hot topic,espeaially for students in campus! net has collected this sample coposition for you! 1. 2. 3. Nowadays,with the rapid development of IT and information industry, cell phones play a dominant role in towns people's life. But, like everything else, they have both favorable and mffavorahle aspects. First, it's useful. As a wireless mobile telephone, it's easy and handy to early to wherever one goes and call the callee however far away he is. Therefore, it greatly facilitates people's life. Second, it's convenient. Whenever one meets trouble or something urgent, one can nmke a call immediately. Most important of all, it's a very helpful companion. With a multirfunction cell phone in hand, one can easily get on the Net, browsing the useful information, conducting e-commerce and doing whatever one can do via Internet. However, just as everything has two sides, the cell phone also has many disadvantages. To begin with, it's expensive to buy and costly to pay the hills, esp. that of global service. To make matters worse, it's also easy to lose and costly to get it repaired. Worst of all,it's not as clear as a family telephone and sometimes the number dialed is often not available. Last but not least, it's alleged the microwaves in it might do harm to people's health. In my opinion,with its expenses greatly reduced after China's entry into the WTO, it will face an ever brighter future in its development. Someday most of them will be developed into new Intemet-enabled mobile phones, which will be as useful as pocket computers. And I believe its advantages will not only offset its disadvantages, but also far outweigh them.

Windshield Survey

According to Stanhope and Lancaster (2008) defines a community as: â€Å"A social group determined by geographic boundaries and/or common values and interests. Its members know and interact with one another. It functions within a particular social structure and exhibits and creates norms, values, and social institutions† (World Health Organization [WHO], 1974, pg. 7). Stanhope and Lancaster (2008) defines community health as having: â€Å"three common characteristics, or dimensions: status, structure, and process. Stanhope & Lancaster (2008) also go on to say: â€Å"Each dimension reflects a unique aspect of community health: (pg. 45). Community health in terms of status, or income, is the most well known and accepted approach; it involves biological, emotional, and social parts. The biological (or physical) part of community health is often measured by traditional morbidity and mortality rates, life expectancy indexes, and risk factors profile† (pg. 345). The communit y is the client if a nurse is helping individuals even one at a time in the community. Stanhope and Lancaster (2008) states: â€Å"The community is the client only when the nursing focus is on the collective or common good of the population instead of on individual health† (pg. 44) and â€Å"Although the nurse may work with individuals, families or other interacting groups, aggregates, or institutions, or within a population, the resulting changes are intended to affect the whole community† (Stanhope and Lancaster, 2008, pg. 344). One Healthy People 2020 health indicator that applies to this particular area, which is Oklahoma City, would be â€Å"Quality of life and well-being† (Healthy People 2020 at a glance. (2010). There is a large population of poverty level residents. Many people in the community of the south side Oklahoma City are living in homes that are not safe or are unclean. Additional aspects will be discussed in the Window Survey of south Oklahoma City. The boundary for the north part of Oklahoma City runs almost parallel to interstate I-44 from the east to the west. It is located in the central metro area of the state of Oklahoma, with boundaries east of the cities of Mustang and Yukon, and west of the cities of Spencer and Del City. The southern boundary of Oklahoma City overlaps interstate I-240 that runs from east to west and is north of the cities of Moore and Norman. The economic boundaries for the southern part of Oklahoma City can run the ambit from residents below poverty level to those that would be considered to be upper-class in their monetary value. There are neighborhoods that many would not feel comfortable after dark because there has been a rise in crime to those areas. The zoning of these homes are single story, quarter acre lots that are approximately one thousand to fifteen hundred square feet. These impoverished areas have small, o lder homes that are two to three bedroom homes that are unkempt and, at times, are cockroach infested. The houses are built closely side by side and do not have much open space throughout the neighborhood. Most of these homes show signs of decay related to the amount of repairs that need to be made to the home. Many of the residents are renting and cannot afford to make the necessary repairs or have landlords that are unwilling to comply with the safety of their occupants. The stores in the south part of Oklahoma City are ones that cater to a lower income, such as, Payday loans, Buy For Less, Ross, Payless shoes, Wal Mart, etc. Race representation in this area of south Oklahoma City is a majority of Hispanic, black, white, and Native American. When driving through this community, there are men and women who can be seen each day standing on the corners of busy streets holding various cardboard signs which ask for help and state they are out of work. The houses have children’s toys laying in the front yards and dogs can be seen in the backyards roaming or on chains. The transportation for many, are cars that range from 1980’s to the 2000’s. They appear to be in need of repair in many cases. Since many of the residents in this area have little money, there are service centers, such as Auto Zone, and Midas that aide in â€Å"do it yourself† repairs. However, there is a divide in the income level because within five to ten miles there are neighborhoods with homes that are valued from a quarter of a million to half a million dollars. These upper class neighborhoods are surrounded by brick walls with gates that require codes for entrance. One higher class neighborhood is called Rivendale. Surrounding these areas are higher end shopping centers, such as Chasity Square. This particular shopping center has stores called Mann’s Best Friend that provides all natural dog food and baked goods for pets. In both of the low income areas and higher income areas, there are many churches of various religions that are represented, including Catholic, Baptist, Non-denominational, Methodist, Lutheran, and Jehovah’s Witness. These are common meeting places for many in both communities. Aspects that would affect the health in this community, would be alcohol, tobacco, and drug abuse. For those in the low income areas, stress of everyday life in which they struggle would draw them to these vices, for those in the higher income areas, it would be the stress of working to maintain their lifestyle. Other health concerns would be obesity of those who cannot afford healthy eating habits, high blood pressure affects both low and high incomes for different reasons, diabetes, and for the low income, lack of preventative care. There is Planned Parenthood for well woman checks, organizations that provide blood pressure checks and diabetes screening, and the YMCA works on a sliding scale of income for membership to the gym to help prevent obesity. Media is covered by local news stations and the Daily Oklahoman. ? References Healthy People 2020 at a glance. (2010). PT in Motion, 2(6), 22-23. Retrieved From EBSCOhost. Stanhope, M. & Lancaster, J. (2008). Population-Centered Health Care In the Community. (7th ed. ). St. Louis, MO: Mosby Elsevier. World Health Organization: Community health nursing: report of a WHO expert committee, Geneva, 1374, World Health Organization. Windshield Survey A windshield survey is an assessment and evaluation of a community performed by traveling throughout the community in a car or public transportation to make observations about a community. The data gathered will help identify health care strengths and weaknesses in the specified community. A community is a social group established by geographic boundaries or common values and interests. Its members know and interact with one another and function in a particular social structure and exhibit and create norms, values and, social institutions (Stanhope, 2008). Community health has three mutual traits, or aspects: status, structure, and process. Community health in terms of status or outcome, is the most familiar and received approach; it involves biological, emotional, and social parts (Stanhope, 2008). The biological or living part of community health is often measured by established morbidity and mortality rates, life expectancy indexes, and risk factor profiles. The emotional part of health status can be measured by consumer satisfaction and mental health indexes. Crime rates and functional levels refl ect the social part of community health. Other status measures, such as worker absenteeism and infant mortality rates, reflect the effects of all three parts. Community health, when perceived as the structure of the community, is commonly explained in terms of services and resources. Measures of community structure incorporate demographics, such as socioeconomic and racial distributions, age, and educational level. (Stanhope & Lancaster, 2008) The community is the client only when the nursing emphasis is on the common good of the population instead of on an individual’s health. When focusing on the community as client, direct clinical care can be a part of population focused community health practice. This type of care decreases the risk of an epidemic in the community. The community client also highlights the complexity of the change process. Implementing changes which, will improve the community client often occur at a number of levels, extending from the individual to society (Stanhope, 2008). Healthy People 2020 maintains tradition with the launch on December 2, 2010 of it’s 10-year agenda for improving the Nation’s health. Healthy People 2020, 2011) A society in which all people live long, healthy lives is the mission statement of Healthy People 2020. (Healthy People 2020, 2011) A health indicator that applies to my specialty area is substance abuse. Substance abuse produces control on an individuals life and creates havoc among the families and communities. The effects of substance abuse are increasing, drastically contributing to costly social, physical, mental, and public health problems(Healthy People 2020, 2011). According to Healthy People 2020, (2011) some problems include:teenage pregnancy, Human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS), sexually transmitted diseases (STDs), domestic violence, child abuse, motor vehicle crashes, physical violence, crime, homicide, and suicide. A role nursing would perform in affecting this indicator would be education in the community. Adolescent abuse of prescription drugs, such as prescription pain relievers Vicodin and OxyContin, has remains on the rise and continues to devastate lives and families involved (NIDA InfoFacts: Understanding Drug Abuse and Addiction, 2011). The accessibility of prescription drugs is growing from several places, including the family medicine cabinet, the Internet, and doctors. Drug addiction is a needless disease. Results from NIDA-funded research have shown that prevention programs including families, schools, communities, and the media are successful in decreasing drug abuse. Although countless events and cultural influences affect drug abuse trends, when youths sense drug abuse as harmful, they reduce their drug taking. NIDA InfoFacts: Understanding Drug Abuse and Addiction, 2011) Education and outreach programs are essential in assisting communities to understand the risks of drug abuse. This is a Windshield Survey of Philadelphia, PA, 19154 completed on June 16, 2010. The information collected in this survey displayed basic ideas about this community and identified needs for a certain population in the community. Housing and zoning- The homes and buildings were builtafter 1950. The homes and buildings are constructe d from brick, vinyl siding and are a mix of row and single homes and the homes are in excellent condition. These homes vary in size and land. | Transportation- The most common means of transportation 19154. area include driving a car alone, carpooling and public transportation SEPTA(Southeastern Public Transportation Authority)During observations in the community, many bus stops werehad 6-8 people waiting. Somewere in their school uniforms, some work attire, and others were casually dressed. Theconditions of the roads need minor repairs most are newly paved. | Race and ethnicity- The chief ethnic group in the 19154 is a heavily populated, urban zip code in Philadelphia, Pennsylvania. The population is largely white, and mostly married couples. Total Population: 35,606 White Population: 31,896 Black Population: 1,678 Hispanic Population: 1,030 Asian Population: 812 Hawaiian Population: 13 Indian Population: 48 Male Population: 17,313 Female Population: 18,293 Median Age: 36. 2 Median Age of Males: 34. 9 Median Age of Females: 37. 6. (Neighiborhood Link National Network, 2011) . | Open space- There is not much open space, but the areas around the Dunksferry Rd and Academy and Knights roads are designated for the athletic teams and school sports. | Service centers-19154 has several service centers. On Southampton Rd there is the VA. Community Center, S. P. I. N. (Special People in the Northeast, mentally challenged individuals), W. I. C. offices and Social Security center. There are many schools, High school, grade school (public and Catholic) and headstart programs in our community. Also off Academy Rd. there is a health center and a dental facility. There are 3 major hospitals and several medical facilities in the community. | Religion and politics- In our community the primary religion is Catholic with a mix of protestant and Jewish. The primary party is republican. | Boundaries- The geographical boundaries for 19154 include Interstate I-95, Route 1 and the PA Turnpike. The income is middle class. The estimatedmedian income is $60,000 per year. Theneighborhoods are named and identified by street names. Some of theneighborhoods include Parkwood, Liberty Bell, Chalfont, Comly, Somerton, Morrell Park and Bustleton. | Stores and street people-Major stores in the community are Kohl’s, Target, and Wal-Mart, many grocery stores such as, Pathmark, Reddners and Acme Markets. There is not any type of street people as in homeless in the community. The community is primarily devised of law enforcement, fire fighters, teachers and healthcare providers. Health and morbidity-Substance abuse is increasing by our youth and adults in this community. There are no obvious drug dealings going on in the community but, there are dealers. Observations made were several people smoking on the bus stops, very young looking, and other smokers of appropriate age. There are several fast food restaurants in the area as well as finer restaurants, which may have resulted in the large number of people living in this area living with cardiac issues. Other observations made were the adolescents in the streets during school hours and some looking as if they were under the influence. Commons-In 19154 there are several churches, the park and recreational facilities restaurants and clubs. off Southampton Rdis the Community College of Philadelphia and off Street Rd there a several tech schoolsLocal eateries such as Chickie & Pete’s. Chili’s. Carraba’s, Outback Steakhouse, Texas Roadhouse, Friendly’s, Applebee’s, Nifty fifties and TGI Fridays. There are a number of fast food restaurants, such as McDonald’s, KFC, and Burger Kingwhere many people like to hang out. There is also a few -11, Wawa and playgrounds that teens usually hang out. These gathering areas are easily identified by signs. They are open to everyone and usually people with the same interests gather in these areas. | Signs of decay- There are no evident signs of decay, although at some playgrounds there were several graffiti tags on the buildings. | Media- The local newspaper is the Philadelphia Inquirer and the community newspaper is The Northeast Times. The TV news stations are ABC 6, Eyewitness News and NBC 10 news. The internet is a source of the major attributes of the media and the common providers are Verizon and Comcast and the cable providers are Comcast, Verizon Fios, The Dish and DIRECTV. References: (2011). Retrieved June 18, 2011, from Neighiborhood Link National Network: http://www. neighborhoodlink. com/zip/19154 Healthy People 2020. (2011, February 22). Retrieved June 18, 2011, from Healthy People: http://www. healthypeople. gov/2020/about/default. aspx NIDA InfoFacts: Understanding Drug Abuse and Addiction. (2011, March). Retrieved June 18, 2011, from National Institute of Drug Abuse: ht tp://www. drugabuse. gov/infofacts/understand. html Stanhope, M. L. (2008). Public Health Nursing. St. Louis: Mosby Elsevier. Windshield Survey Keyes, California is a census-designated town in Stanislaus County. Keyes is located off Highway 99 in the California Central Valley. This small town is unknown to many due to its 2. 8 mile radius (â€Å"City data†). Numerous health concerns plague this small town due to its size and population. A windshield survey and internet research provides information on the people, the land, and the health of those living in this small community. The People According to the 2010 census, Keyes has a population of 5,601 residents with a 50/50 male to female ratio (â€Å"City data†).The median age of these residents is 29. 5 years old. The majority of the Keyes population has a household annual income of $29,943 for a family of 4. Annual income is just above or right at the poverty line. In 2011 it was recorded that 32. 1% of the population was living in poverty. A staggering 12. 9% of Keyes residents are unemployed as of July 2013. About 18% of Keyes residents work in construction, agriculture, or retail. Keyes is a predominately Hispanic community accounting for 60. 9% of its residents.Whites average 34. 3% of the population followed by 2% Asian and 0.4% Black. The residents of Keyes are 54% Catholic in faith followed by 5% Baptist and 5% Mormon. Keyes lacks a municipal government but is a part of Stanislaus County (â€Å"City data†). The Land Keyes, California is located between Ceres and Turlock off Highway 99. The town’s appearance is unattractive at first look. No landscaping or sidewalks are provided in most of the community. The majority of homes are enclosed by a fence and most do not have a driveway. Although the homes are aged and tattered, many of them have nice yards with minimal refuse.Homes in this location were built in the 1980’s. The average price of a home located in Keyes, Ca is $89,952 (â€Å"Zillow†). Few people were out walking in the community. The residents of Keyes had a wide range of dogs in almost every y ard. A large park is located in the eastern part of the town. Hatch Park has a walking path and a playground for children. The park is relatively new, according to its residents. Safety does not appear to be an issue before dark. The park is open from sunrise to sunset, although, it is not patrolled by police.There is no police department located in Keyes. Stanislaus county sheriff responds to calls for this small town. The fire department is located in the southern end of the city. According to Paramedic Rhodes of the Keyes Fire Department, there are an average of 20 calls per week 85% being medical, 10% motor vehicle accidents, and 5% fire. Most medical transports are sent to Emanuel Medical Center in Turlock located 5 miles southeast of the town. There are no doctors offices or urgent care’s located within Keyes. There are no pharmacies or dentists located in the immediate area.Neighboring cities have these services within five to eight miles. Stanislaus Regional Transport (START) provides bus services to Keyes (â€Å"Stanislaus regional transport†). There are four bus stops in Keyes all located near the freeway and the schools. The buses stop about every two hours from 5 am to 9 pm (â€Å"Stanislaus regional transport†). The bus stops had several people waiting and appeared to be used in the community by various age groups. There is a local post office with P. O. Boxes. Keyes does not have a postman to deliver mail to individual homes (â€Å"USPS†).Stores located in this little community consist of two convince stores and one grocery store consisting of a limited supply of fresh fruits and vegetables. The nearest full service grocery store and pharmacy are located 3. 8 miles away in Turlock, California (â€Å"Google maps†). No chain fast food restaurants were note during the survey however there are several taco trucks located in the area. Minimal businesses are present. Local businesses consist of construction companies of various sorts. Schools are present in this community. The local Elementary school teach students years K-8.Keyes to Learning Charter School instructs students K-12. The Stanislaus County Library has a branch located in Keyes for students of all ages. The Health Overall health is a concern in this community. No access to medical, dental, or pharmacies directly affects these residents. Locals may have access to healthcare but they may not have access to transportation to and from doctors appointments in neighboring cities. Low socioeconomic status prevents many from seeking necessary treatment for medical conditions. The inability to pay for prescribed medication can lead to worsening health conditions.Limited access to a full service grocery store can limit the amount of fresh fruits and vegetables consumed by these residents. In Stanislaus County the rate of diabetes is 1. 6% greater than the California average and the rate of obesity is 6. 7% greater (â€Å"City data†). D iet and exercise plays a role in these statistics. Although there is a local park it is not widely used. A sedentary lifestyle is common in this community. It is concerning to have such high incidents of obesity and diabetes in a town where the average householder is younger than 30 years old.A large percentage of the community is considered vulnerable (â€Å"Cdc†). The community health status indicators displays that Stanislaus County has a large vulnerable population. A vulnerable population includes 39% of individuals without a high school diploma and a 12. 9% unemployment rate. The county has a total of 23,378 people diagnosed with major depression and 38,337 involved with drug use in the last month (â€Å"Cdc†). Many other factors are affecting this town’s health including; smoking associated heart disease, cancer and respiratory illnesses (â€Å"Cdc†).As a goal, Healthy people 2020 is seeking to improve maternal, infant, and child health. Education is a crucial aspect in improving health in all stages of life. Mothers who are educated about their health and the health of their families can in turn make choices that can positively affect their families future. Nurses in the community could arrange classes at the local schools after hours to provide education on diet, exercise, and disease prevention. These classes could be taught in English and Spanish to better meet the needs of the community.Keyes, California is a small community with no access to many basic needs. The health of the community is deteriorating due to the lack of proper nutrition and healthcare. This town is living at or below the poverty line. The needs of the community outweigh the resources made available by Stanislaus County. More research should be conducted within the central valley to determine the needs of this vulnerable population. Keyes can become a healthier place to live in the future with help from the surrounding cities, local governments, and he althcare providers.

Holocaust is fake david cole Essay Example | Topics and Well Written Essays - 250 words

Holocaust is fake david cole - Essay Example As if to point out that there was no way faith would work and no such power greater than that of Hitler may intervene to alter this course of history, each victim could be inclined to contemplate with scorn that the fateful event was indeed meant to take place. Back then, how could it be said or thought that Holocaust was not a journey to death and merely a path back to a seemingly neglected spirituality, at least for the Jews? Certainly, one would only afford a weakening capacity to figure tormenting memories and horrible imaginings of all occurrences marked by the reign of ruthless terror as they transpired. To have fallen into the hands of pure evil, clearly, nothing remained of dignity, well-being, and perhaps even the last strands of faith and hope to hold on to for a multitude deprived of every inalienable right, like the concept of choice never existed. Even those who were far from bearing witness to the Holocaust could well identify and concretize deep in their assuming minds the type of Hitler’s injustice which only the lowest form of animal may dare accept as fair to suffer with. Nevertheless, for those who find the potential of gaining a more unique insight, such terrifying portion of history can be perceived with sensible meaning at another paradigm but should certainly not be held in denial as in Cole’s revision attempt. Through a more profound meditation, one discovers the possibility of pondering a moment when humans weren’t dull in senses, rather alive with mixed reflexes despite the pain severities. It appears equivalent to arriving at a point when every second of time counts and love for life or the desire to live is vividly strong that any tendency toward feeling emptiness and meaninglessness is driven

Mental Illness and Suicide in Juvenile Detention Facilities Research Paper

Mental Illness and Suicide in Juvenile Detention Facilities - Research Paper Example Department of Justice, 2009). A study conducted in California revealed that close to 32 percent of detained male juveniles had post-traumatic stress disorder (Hayes, 2009). The study also found that these youths experienced high levels of distress, depression and anxiety while exhibiting lower degrees of impulse control, restraint, and suppression of aggression (Hayes, 2009). Another study conducted in Mississippi established that at least 66 percent of detained juveniles had mental disorders, with more than half suffering from multiple mental disorders such as substance abuse and conduct disorders (Hayes, 2009). Through the study, Hayes (2009) noticed that 60 percent of the youths detained in juvenile correction centers in Virginia had mental health treatment needs. This situation was similar in Georgia where it was reported that about 61 percent of the juveniles in correction centers had mental problems (Samaha, 2005). The following are the statistics related to the disorders that U.S. youths in juvenile detention facilities experience. Between 50% and 90 % experience conduct disorders, 46 % attention disorders, 6-41 % anxiety disorders, 25-50 % substance abuse, 32-78 % affective disorder, 1-6 % psychotic disorders, and 50 % co-occurring mental disorder and substance abuse disorders. These statistics show that the juveniles exhibit signs of conduct disorder. This disorder is characterized by aggressive physical conduct aimed at injuring others and non-aggressive conducts aimed at causing damage to properties, theft, violation of rules and deceit (Hayes, 2009). Hayes (2009) also notes that Juveniles in detention show high rates of physical, sexual and emotional abuse than their counterparts in the community. According to a past study, Juveniles in Maryland were associated with high rates of physical violence which stood at 35 percent, and sexual abuse at 18 percent (Hays, 2009). Hayes (2009) asserts that

LETTER OF APPEAL Essay Example | Topics and Well Written Essays - 1500 words

LETTER OF APPEAL - Essay Example Respect Sir, I basically belong to the part of the world that is often characterized by the conventional professions and money making sources. These primarily include professions like business studies, engineering, medicine and other commonly tested and practiced professions. In such environments there is little margin for experimenting or going for professions that are little tested and little known. Before I put my case, I hereby state that I am not writing to question the system of immigration in the incumbent country nor do I plan to challenge it through the claims that I may make. I am here only to seek your professionally motivating and sympathetic consideration into the personal reasons which forced me into skipping classes and breaching the original terms of visa where it was conditioned to attending the classes and completing my degree as per initial undertaking. I will also attribute the reason for the overall debacle to the immaturity and hastiness from my end, believing that the dropping out will make my parents realize instead of considering the repercussions and the possible consequences and I hold myself directly responsible for it and do not blame the law, the institution or any other individual affiliated in the entire conundrum that is at hand. To start with the particularity of my case I render an unconditional apology for having violated the original conditions and thereby request a revisiting into the case with possible grant of a fresh visa or nullifying of the decision reached as a result of the acts committed in the light of skipping classes originally. Giving a history of my family, my sister is enrolled in the field of medicine study and she is going well with her goals and there are no records of her dropping out or any other event therefore I can indirectly assure through her practices and her presence ,that if I am given a chance to follow my desired goals, it will allow me delivering the goods as per expectations and conditions

Project Management - Quality Planning Essay Example | Topics and Well Written Essays - 750 words

Project Management - Quality Planning - Essay Example The quality planning process defines the approach to be adopted toward the management of project quality during the course of the project. For example, the quality manual necessitates the use of concrete blocks for the partition walls whose strength is at least 1000 psi, the quality assurance is accordingly achieved only when the blocks of specified strength are being used, and their continual checking and testing remains the responsibility of the quality control (QC) department. The QC department is supposed to carry out the tests as frequently as stipulated in the documents prepared in the quality planning process. As evident from the name, the quality planning process is designed in the planning phase of a project. In fact, it is one of the very early considerations about a project since it affects and is affected by the total project budget. However, its implementation occurs throughout the execution phase till the project closeout after the defects liability period, when contractor might have to incur additional costs to satisfy the customer in that period. This tool focuses on the comparison of costs incurred due to investment in quality and the benefits achieved thus. One way the analysis can be made is as mentioned here. For example, reduced amount of rework enhances the profits significantly. The cost of quality is weighed against the profits in terms of customer’s and client’s satisfaction, increased efficiency and improved public relations by comparing the current situation with some old project of similar nature that incurred losses because of bad quality. Benchmarking is termed as the measurement of quality for improvement. Basically, the previous quality level is taken as a benchmark and results achieved by the measurements taken to improve quality are compared with the old benchmark to analyze the progress.

Strategic management Case Study Example | Topics and Well Written Essays - 3500 words

Strategic management - Case Study Example It was the time that it started evolving as the world's most profitable airline. Michael O'Leary 's key to success was to drastically cut costs down by taking extra-ordinary decisions. But it was not the only reason of his success. He was also very innovative and shrewd in his approach. His efforts were also supported by state policies of the European countries. The briefs of Financial & operational performance of the company from 1998 to 2002 retrieved from ATI database show a great change in the financial status of the company. The increase in Passengers Revenue was $259.68 millions from 1998 to 2002. Net margins increased from 19.63% to 24.09% during this period. Number of passengers increased by almost 300% during this period. These were not mean achievements in such a short period of time. But these statistics does not show that how daring was O'Leary in his decision making. He was never afraid of taking unpopular decision and he had complete trust in judgment. As it is famous saying that fortune favours the braves that was the case with him. Fortune also favoured him on many occasions. The difficulties came to his way never deterred him. He went on expansion spree. Ryanair was not only expanded in terms of routes and destinations but he also acquired new planes for his company. The data sheet is give herewith that shows his achievements. Numbers speak louder than words in this case. RyanAir was successful in controlling total ... Profit after also risen by 44%. Earnings per share also increased. (Financial performance table is attached as Appendix II retrieved from ATI Database) A tremendous increase in the profits of the company encourages O'Leary to go on and take more daring decision of acquisition of Buzz Air. It could prove a turning point towards best or worse. As O'Leary promises to make Buzz profitable within three months by "halving fares and doubling passengers". (Part I 475 words)Strategic Analysis of RyanAir at the end of 2002 Ryanair is considered one of Europe's debatable companies, it policies are appreciated and criticised simultaneously. Some analysts support its commitment to low fares, its revolutionary management. At the same time few analysts attack its labor policies and disapprove its advertising campaign. It would be quite interesting to use analysis models described by Richard Lynch analyse the Ryanair strategically at the end of year . These models can be applied for a thorough analysis of RyanAir. Model: Consideration of the nature of the environment (General considerations) The problems like market recession because of September 11 attacks required a thorough analysis. O'Leary did this very well in comparison to competitors and also with other industries. It helped in assessing the situation correctly into true perspective. His research and evaluation team gave him correct input. The market research was one of the tools used by O'Leary. A correct and true analysis was the key of success of O'Leary. He understood that although situation is quite turbulent but it can be brought under control. He was able to make correct decisions because of these comparative

Is Murdoch empire will collapse Article Example | Topics and Well Written Essays - 500 words

Is Murdoch empire will collapse - Article Example Although she was born in the year 1968, nevertheless, her association with the use of psychology for the purpose of governing the masses relates back to the nineteenth century. She got married to the great grandson of Sigmund Freud – a psychoanalyst who is well-known for his work on transference, unconscious mind and sexual drive. Her husband, Mathew Freud, is PR tycoon as well. This marriage related Elizabeth Murdoch to the Freud’s cousin, Edward Bernays who is known as the father of public relations and propaganda. The organizations of the Murdoch family are based upon that premise as their personal and professional agenda is one of manipulating minds through maintaining public relations and thereby, controlling the news. They transformed the information in to entertainment for the purpose of distracting the people for their own interest. The Rupert’s holdings have been tainted in three continents, so far. He had to be testified in front of the British Parliame nt. Some members of the inner circle of the New Corp have resigned or been arrested. Julia Gillard, the Prime Minister of Australia has declared that News Corp’s Holdings could possibly have to face an inquiry in her country.

Guns Germs and Steel Essay Example for Free

Guns Germs and Steel Essay Yali asked the question of â€Å"why is it that you white people developed so much cargo and brought it to New Guinea, but we black people had so little cargo of our own? † (Diamond 14) In other words, he is asking â€Å"what is the factor between our people and ours that causes human development to proceed at different rates? † (Diamond 16) What Yali is really asking though, is, what is this mysterious factor? According to Diamond, the basis for development is the environment around us including the resources and the native people of New Guinea don’t live in an area where a chance is provided for them to take advantage of. The natural resources are just enough for them to get by. This is why the people of New Guinea produce so little â€Å"cargo† of their own. Pizarro’s capture of Atahuallpa and destruction of the Incas made the Europeans realize what power they head, and what they could do to the rest of the world. They easily wiped out the Inca’s of 80,000 with 168 men. From the Battle of Cajamarca, Pizzaro came back to Charles I saying that Europe had the power to conquer the Americas. There were reasons Pizarro and the Europeans could conquer the Americas†¦ They had better warfare than the Incas. Pizarro’s men had armor rode horseback and used steel compared to their wooden weapons. Eurasia happened to have an abundance of edible material because of the right environment leading to the domestication of plants and animals led the people to settle down in one place instead of being nomads. When people started to settle down and bring the food to them, they started to have a surplus which led for the people to have extra jobs and it started to also support a higher population while allowing women to have more children contributing to job specialization. These specialists were not devoted to farmers or food producers but varied to priests, blacksmiths etc. Permanent agriculture societies were able to from with the food surpluses leading to empires. Some of the reason that people began to settle down and farm are because at the time many wild foods began to decrease due to hunters and gatherers killing off too many large animals leaving life unsustainable. More wild plants that could be domesticated became available at the time. Technological advances allowe3d people to harvest and store greater amounts of food that they cultivated. Human populations rose it’s not clear how much it caused food production and how much food production caused it but researchers believe there’s a connection. As populations rose, they needed to have better food supplies and started farming. The farm societies were able to drive out neighboring hunter-gatherers. A continent with long east-west axis like (Eurasia) has an advantage over continents with long north-south axes (like Africa and the Americas). The reasons it does have to do with crops and longitude. In general similar crops can grow at similar longitudes. In other words a cropped that developed in one place can be spread east to west (or west to east) but less likely to spread north and south. Epidemic diseases developed among the societies that had been farming the longest. These were Eurasian societies. Societies in the Americas, Australia, and other places had not been farming as long and lacked epidemic diseases. When Europeans came in contact with Native Americans, for example, European epidemic diseases killed huge percentages of the Native Americans. This helped the Europeans conquer and the conquest made them richer and more powerful. Therefore germs help to answer Yalis question. The societies that did independently invent writing were those with complex hierarchies and sophisticated systems of food production. Writing was needed for politics and was generally learned by bureaucrats who had the comfort of available time and energy. As food was available to them, they had no need to hunt and gather for themselves. Since their basic needs were being met, they could focus on a higher level of existence and communication. There are two conditions in which technology may develop. The first is â€Å"mother necessity ideology† which is when a society needs something to make things easier they invent it. Technology differed from place to place because there were more people to invent and better diffusion to spread the invention. The opposite happened in the Americas because there were less people and a slower diffusion rate. Also different cultures had different ideas for change. The only way that society can emerge is through food. Such developments include jobs, such as the chief and the beginnings of government. The institutions of society changed over time based on how organized they were. They evolved based around various factors like war and other societies. They are related by diffusion. Whenever a state is conquered by another state they enforce use of their technology or exploit it. States are going to develop weapons, troops, and religion in order to make the state survive. They develop in response to need of their population size. They use these agents of conquest to become larger and to conquer other societies; and for that they need guns, germs, and steel. What Diamond is saying is that he thinks that people really should not think that history is so much different from the sciences. He is saying that the study of history can be pretty scientific if it is done correctly (and that some sciences are not as precise as things like chemistry). Diamond is trying to argue that historians should use what he calls natural experiments. He thinks that there are many experiments where there are two or more places that are pretty similar in many ways but which then turned out differently (like his experiment in Chapter 2). He argues that historians can use these they can look at what was different and what was similar and how the differences led to the differences in the outcomes. Guns, Germs, and Steel Book Review I think Diamond’s central intent of writing the book is to explain how varying societies become dominate, and how certain others can become dominated. By looking at environmental conditions that caused the disparities that lead to certain societies developing guns, germs, and steel, including other technology, and forming a government necessary for conquest. He introduced the book with Yali’s question â€Å"Why is it that you white people developed so much cargo and brought it to New Guinea, but we black people has so little cargo of our own? † This question used a scientific/geographic background, and set his intent is to answer the question or inform how to answer the question. He also tries to analyze the causes of the expansion of civilizations’ in some parts of the world, since all people are physically the same what could cause some to be successful and others to die? He used archaeological and historical case studies and evidence from genetics and linguistics, he argued that technological and gaps in power are not caused by race or culture differences but by environmental differences, He used the idea of the axis as one saying that Eurasia had an east to west (or west to east) therefore having an advantage over Africa or the Americas for instance, because crops could grow at the same longitude but it was more difficult as they went north and south. Also when cultural or genetic differences have favored Eurasians like for example written language or resistance to epidemic diseases he says these advantages occurred because of the influence and geography on societies and cultures and were not inherited as genes from Eurasian ancestors. Diamonds book argues that the differences in progress for different societies around the world do not result from one group being smarter or more resourceful than another. Rather, he focuses on the impact of geography whether food and other key items were plentiful, whether and how disease spread, and how these developments led to different levels of industrialization, and wealth The book â€Å"Guns, Germs, and Steel† was very well written in the sense that Diamond had a question in which was the foundation of the book, he throughout the book acquired evidence and explanations and ideas of how to answer the question. The book had evidence to back it up by explaining how Eurasia had a better opportunity being west to east meaning they had better crop farming. Which led to a growing civilization and soon conquest. The book wasn’t exactly dull or boring but it wasn’t exciting or entertaining either. It was like any other history book it asked a question, then went on to the point. There was an explanation of the main topic which was Yali’s question and evidence that dealt with answering the question. From beginning to end, Diamond stresses that he realizes that efforts to compare societies have frequently been used by racists or nationalists to belittle groups or justify mistreatment of them. He argues that his analysis is in fact anti-racism at work because it shows that the white people who enjoy the comforts of modern life are ultimately luckier than, not more deserving than, people in impoverished nations.

Benefits Of TV For Children

Benefits Of TV For Children Television viewing is an unavoidable part of the current modern culture. Most people depend on their televisions for news, education, weather, culture and sports. Under parental supervision and limited viewing time, television can provide numerous benefits. If you want to discover the benefits of TV for children continue reading below. Develops analytical skills Through asking questions and determining what may happen in a certain program enables children to learn how to think, predict and solve problems. This also makes television viewing an active experience and enables them to develop analytical skills that will be of benefit for a long time to come. In addition, television time can be considered like a learningexperience where the children can discuss programs and compare shows or characters. Positive influence Kids are largely influenced by the people and things they watch on television, particularly other children. This can either have a positive or negative effect on them. Recently, childrens TV programs have started to promote some positive topics like environmental awareness and healthy living. As children see their beloved characters making good choices, they will also be influenced to perform similar actions. LONDON Television, when appropriately managed and supervised, can be a positive influence in a childs life, and its impact is likely to be improved through the use of a digital TV recorder, according to a report by top psychologist Dr Tanya Byron In the report, Children and Television today, commissioned by Freeview, the clinical psychologist applies the term Viewtrition to the support that should be available when it comes to managing kids TV experiences. Despite the negativity often associated with children watching TV, eight out of 10 parents questioned believed it has a positive effect on their childs development, including helping them to expand their imagination (63%) and broaden vocabulary (60%). The research also shows that 50% of parents said having a digital TV recorder has revolutionised their childs viewing in a positive way, and parents recognise that having one, makes it easier to control and plan what their child watches around busy family routines. Byron said: I, too, believe that television has a positive role to play in a childs development, but it does need to be monitored and managed responsibly. Each parent knows their child best and the Freeview Viewtrition Guide is about giving parents information and advice that they can then adapt and use to help provide their children a balanced TV diet. Other key findings include 66% of parents identifying the positive effect TV is having on their childs numeracy and musical skills. The research includes surveys with 1,880 parents of children aged between two and 11, courtesy of Mumsnet.com. Television does, in fact, have a positive influence on children, because it is quite educational. Theres no denying that television has a potentially damaging influence on children in teenage and college years, if it leads to sedentary lifestyles. But, in early years, it can really help. Educational programming, like Sesame Street and related shows, can help teach kids letters, numbers and important concepts that will help them thrive and take care of themselves later in life. Also, much of childrens programming can help stimulate and develop their imaginations, leading them to lives of creativity. I believe that television can have a positive influence on children, when the parents are involved. There are several educational programs on television today, including Sesame Street and Super Why, that do teach children numbers, letters and other subjects. When a parent is able to sit with a child and use these shows as a teaching tool, then children can benefit positively from the use of television. Positive Effects Of TV On Children Preschoolers can learn the alphabets, colors and numbers from television. Children can get information on wildlife and expand their knowledge with quiz contests and others games on TV. With television, children can keep a track of the latest happenings and the current events. Television comes across as an excellent form of entertainment for kids, in the form of cartoons and kids programs. Learningopportunities If there is a subject your kid enjoys, it is highly likely there is an entertaining and educating movie or TV show that explores that subject in depth. Actually, you may be amazed to find that most children love and watch educational TV programs aimed at grown-ups. For instance,nature and documentary shows are not only entertaining, but they are also very educational for children. Furthermore, through watching television shows, children can discover animals, things or places that they could not have seen otherwise.Nonetheless, children should not watch too much television, instead they should engage in active things such as sports and other hobbies. Excessive TV watching can cause weight problems like obesity and also affect the intellectual skills of children. Educational and Informative With cable channels such as Discover, National Geographic and the History Channels, watching TV can be as educational as going to school. Plus, how many times have you learned something while watching a regular TV series? If it werent for all the police and lawyer shows on TV, would anybody other than lawyers know what Miranda rights were? Where kids are concerned, TV and movies get a bad rap, but with healthy viewing habitsand parental supervision, limited screen time can be a positive experience for children. Here some ways children can benefit from watching TV and movies: TV can help kids learn about a variety of subjects. If theres a subject your child enjoys, more likely than not, there is a TV show, movie, or educational DVD that explores the subject in detail. You might be even be surprised to find out how many kids watch and love educational shows aimed at adults. Rachael Ray, for example has a huge following among kids and tweens, and herprimetime show often features kids in the kitchen. Childrens shows, whether they bill themselves as educational or not, may offer opportunities to spark learning. For instance, was your child wowed by the Red Eyed Tree Frog on Go, Diego, Go!? Go online to look at pictures and read about the frog. In this way, kids are able to see how fun learning can be and establish a habit of finding out more when things interest them. Documentary and nature shows are also entertaining and educational for kids. A great example: Meerkat Manor, on the Animal Planet, makes a soap opera out of meerkat life and has kids hooked on the drama. Through media, kids can explore places, animals, or things that they couldnt see otherwise. Most kids are not able to visit the rain forest or see a giraffe in the wild, but many have seen these things on TV. Thankfully, educationally minded producers have given us many shows and movies that allow viewers to see amazing footage ofnature, animals, society, and other peoples. Kids and adults alike can learn from this type of media and gain a greater appreciation for our world and the animals and other people who inhabit it. TV shows can inspire kids to try new activities and engage in unplugged learning. When kids see their favorite characters engaged in fun learning games, they want to play too. Kids also like learning activities more if they involve beloved characters. Preschoolers shows are especially effective for generating ideas for learning activities and using characters to motivate kids. If you have a child who loves Blues Clues, for example, you can create clues and a riddle for them to solve at home, or challenge your child to create the riddle and clues. Or, turn a regular activity into a challenge and encourage your child to solve it like the Super Sleuths do. TV and movies can motivate kids to read books. Of the new movies that are released each year, you can bet that several of them are based on books. Parents can challenge kids to read a book with the promise of going to the theater or renting the movie when they finish it. Or, kids may see a movie and like it so much that they decide to read the book. Discuss the differences between the book and the movie to help kids develop thinking skills. Kids can build analytical skills by discussing media. What do you think will happen next? Who did it? What will the result be? What could that character have done instead? Asking these types of questions as you co-viewwith your children will help them learn to think, problem solve, and predict, making TV viewing a more active experience. More important than just memorizing facts, developing thinking skills will benefit them for the rest of their lives. Also, remember those compare/contrast tests in school? You can help prepare kids for this type of literary thinking by discussing programs with them. Compare and contrast characters or shows. Who is the main character? Describe the plot. What was the setting and main idea? What was the conflict and how was it resolved? Use TV time to help kids practice for all those essay tests, and they might find that talking about this stuff can be interesting and fun! Parents can use TV to help kids learn the truth about advertising. Advertising may be annoying, but it does present yet another opportunity to develop kids thinking skills. According to the American Academy of Pediatrics, young children may not even know the difference between programs and commercials. They are just soaking it all in and applying it to their reality. As a parent, you can explain the purpose of advertising to your kids and alert them to any deceptive tactics. Allow them to analyze the methods used by advertisers to sell a product. Good role models and examples on TV can positively influence kids. Children are influenced by people they see on television, especially other kids. Obviously, this can have a negative result, but it can be positive too. Lately, kids TV shows have begun promoting some positive agendas such as healthy living andenvironmental awareness. As kids see their favorite characters making positive choices, they will be influenced in a good way. Parents can also point out positive traits that characters display and thereby spark valuable family discussions. Daniel Anderson, a prominent researcher on the subject, sums up the situation with children and media perfectly stating, I hope the broader impact of my research will increase awareness at many levels so that we can be cognizant of both the promise and the peril of what we are doing. Media truly can have a positive effect on children, but it is up to the parents, caregivers and educators in their lives to ensure that kids viewing experiences are enriching and not damaging. http://kidstvmovies.about.com/od/healthytvhabits/a/tvgoodforkids.htm

Pulse :: Movies Entertainment Media Essays

Pulse Pulse is superficially many movies. It is a 2001 vehicle for director Kiyoshi Kurosawa to gain international reputation. It is a teen horror movie. It is a ghost story. How one reads this movie determines, to a large extent, what one sees in it. And while this means we cannot hope to discover one already present Truth waiting for us in the ebbs and flows image and sound that comprise the film, we can still interpret film and give contesting interpretations over the facts and implications of every frame and every sweeping plot summary. To offer one such plot synopsis now, the movie is â€Å"basically† about two separate groups of young Japanese men and women coming into contact, through information technology and forbidden rooms, with ghosts whose mysterious effects remove the population of the planet and drive the only survivors the film shows onto a ship headed to Latin America. One group, of whom only one survives, works in a greenhouse and happens upon the ghosts thr ough a computer wizard friend, who immediately kills himself. The other pair are at the University and come upon ghosts both through computer-illiterate Kawashima and through a graduate student who makes a â€Å"miniature model of our world†. I will consider Noà «l Carroll’s cognitive psychological model of horror film, and then Steven Shaviro’s theory of The Cinematic Body, offering, between the two, a path of interpretation of the film in details and broader theme. First I will try to imagine Pulse within the model of cognitive psychology suggested by Noà «l Carroll. The movie, as horror film, is a narrative of curiosity. This can take place in a scientific model of observation, hypothesis formation, testing the hypothesis, and confrontation. However, it could potentially take place in any particular expression of curiosity (e.g. surrealist, playful, theological or paranoiac), in any (sub/counter)culture, indeed multiple curiosities should be possible all at once. This explains Pulse a bit like the graduate student: the (scary) problem is mysterious, so we (audience/some narrative force) can and will investigate in order to deal with â€Å"the problem†, and satisfy our desire to know. The theory addresses itself to watchers of horror films, but depends on the unfolding of a narrative of discovery. At other levels than the sweeping plot of the entire film, the theory offers more insights.

Role of Women in the Social Transformation of England Essay -- Europea

Role of Women in the Social Transformation of England The traditional idea of movement that changes the world is global movement: the explorers and adventurers that sailed around the world, the people who moved and colonized new lands. Michael Adas in Machines as the Measure of Men stated that the ideas that drove the European colonization were the "products of male ingenuity and male artifice" (14). Most of the exploration and first colonization was done by men. It would not have been socially correct for women. But women did have an integral role in other processes, mainly in the social transformation of countries. While men set up the first connections and created global trading, small changes were happening with in countries. Women helped in these, especially in England. The women alive during the European exploration were not very involved in physical traveling. They sat around, keeping houses together as husbands discovered new lands. But while they made none of the early contributions to traveling, they played an integral role in drawing cultures together, especially when England began to focus on a mercantile economy. Between the 16th and the 18th centuries, the world economy was beginning to grow, and England needed to make a place for itself in the world. To do this, it needed a product that it could use at home as well as export to other countries as material for trade. The English economy found this in its textile industry, although the industry had to be changed slightly. And so England began to establish itself as a textile provider. The process of making cloth requires many different steps. First a material needs to be grown and collected. England used three of these: cotton, wool, and flax. Cotton and ... ...that was considered proper work for women, they were immediately drawn into the system. This slight shift changed many things about English society. It provided a way in which women could move socially without repercussions, grow financially independent, and created a link through which ideas could flow. Much social and intellectual movement was done by women, even if it was under the guise of simply walking over to a neighbor's house to spin flax. Sources Cited: Adas, Michael, "Machines as the Meaure of Men: Science, Technology, and Ideologies of Western Dominance", Cornell Univ. Press 1989 Schneider, Jane. Rumpelstilskin's Bargain: Folklore and the Merchant Capitalist Intensification of Linen Manufacture in Early Modern Europe. In Cloth and Human Experience, edited by Annette B. Weiner and Jane Schneider. Washington: Smithsonian Institution Press 1993.

Attitudes Essay -- essays research papers

Attitudes What are attitudes? How are they formed, measured and changed? What degree of influence do they exert on behavior? What important effects does prejudice have on attitudes, and how is prejudice caused? These are all questions that are central to the study of social psychology and, by reviewing the findings of psychological research into these areas, this essay will attempt to provide a balanced explanation of the topic. The fundamental question of what attitudes are cannot be answered easily, as many psychologists offer differing definitions. These range from simply describing them as likes and dislikes, to the definition provided by Tiffin and McCormick, in Attitude and Motivation(1971), where they summarize attitudes as being, â€Å"a frame of reference that influences the individual’s views or opinions on various topics and situations, and influences their behavior.† It is widely accepted, however, that attitudes include both beliefs and values. Beliefs, although considered to be based on the knowledge gained about the world around us, can vary greatly in their importance and influence, and therefore ibn their resistence to change. For instance, an individual’s belief in God is highly influential, not only on its own but also in its effect on many other beliefs held by the individual, whereas a belief that eating late at night may cause indigestion is far less central and inf luential in its effect. Beliefs, both major and minor, form the cognitive component of attitu...

Models of Takaful in Bangladesh Perspective

Milliman Research Report Prepared by: Safder Jaffer Farzana Ismail Jabran Noor Lindsay Unwin Reviewed by: Debo Ajayi November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Milliman Research Report Contents EXECUTIVE SUMMARY 2 BACkgROUND AND MARkET OUTLOOk 3 PRINCIPLES AND PRACTICES UNDERLYINg TAkAFUL TAkAFUL OPERATINg MODELS 11 ISSUES AND ChALLENgES FACINg ThE TAkAFUL INDUSTRY 15 CONCLUSION 25 APPENDIX I: gLOSSARY 26 APPENDIX II: BIBLIOgRAPhIC REFERENCES 28 APPENDIX III: SELF REgULATINg BODIES & TAkAFUL gROUPS 29 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 1 Milliman Research Report exeCu tive summary Through desktop research, one can get a plethora of materials and papers on Takaful, but most tend to focus either on the fundamentals of Takaful or on Takaful models.In contrast, the objective of this report is to highlight the key issues and challenges facing the world of Takaful and suggested areas where work is required to find solutions. Therefore this report is intended to provide useful reference material for practioners by summarising the following key items: †¢ An overview of Takaful and the intricacies of the models †¢ Insights into the issues and challenges facing the Takaful industry †¢ Finding sustainable solutions to some of these challengesTakaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 2 Milliman Research Report BaCkground and market outlook Muslims account for around 25% of the world’s total population, but despite rapid growth in recent yea rs, insurance sales within the Muslim population remain a small fraction of the total insurance market. Historically, the incompatibility between conventional insurance and key tenets of the Islamic faith has acted as a significant barrier to sales.These differences have led to very low penetration rates and have left many Muslims with little external protection for their dependents or possessions. The development of Takaful, which originates from the Arabic verb ‘kafalah,’ which means ‘to help one another’ or ‘mutual guarantee,’ has been driven by a need to overcome these obstacles and create an insurance proposition that is fully compliant with Shariah (Islamic law). It offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and nonlife sectors that is acceptable to the Muslim faith.For non-Muslims, Takaful products potentially offer an alternative source of insurance protection —with different investment objectives, an approach to surplus distribution, and an oversight system with an ethical dimension. Hence in Malaysia, for example, non-Muslims account for more than 60% of the total Takaful premiums. Takaful offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and non-life sectors that is acceptable to the Muslim faith. Figure 1: geographiCal spread oF muslims as a % oF total population No data 0-5% 5-10% 10-50% 50-75% 75-100% Sources: U.S. State Department, CIA WORLD FACTBOOK, Swiss Re Economic Research & Consulting Market Size and Outlook Whilst Takaful started in 1979 in Sudan, it only gained momentum in early 2000 when the Malaysian government promoted it and significant growth was witnessed thereafter. The growth of Takaful has varied significantly from country to country and its success, or otherwise, has been largely dependent on the awareness and affluence of the local popu lation, as well as on the robustness of the local regulatory framework. Hence the highest growth has been observed in places such as Malaysia (with its considerable awareness ofTakaful and robust regulatory framework), whereas growth in the Middle East has only recently begun to take off. Depending on the definition of Takaful, the currently quoted volumes in terms of premiums range from USD$1 billion to USD$5. 6 billion. Although the exact size of the Takaful market has often been disputed, there is general acknowledgment of the rapid growth of the industry. In 2007, Takaful premiums in emerging markets grew by roughly 26% and accounted for 5% of insurance premiums Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 3Milliman Research Report written in Muslim countries. 1 According to Takaful Re, a Dubai-based Retakaful company, Takaful premiums crossed the USD$3 billion mark in 2007 as seen in the table in Figure 2. Figure 2: takaFul premiums (usd$ millions) gCC 2004 2005 2006 2007 770 SAUDI ARABIA 1,238 1,579 2,046 645 1,065 1,340 1,695 KUWAIT 54 83 90 124 UAE 31 42 65 109 QATAR 25 34 50 76 BAHRAIN 15 15 34 59 south east asia MALAySIA 474 544 692 951 343 412 534 797 INDONESIA 77 75 80 94 THAILAND 30 30 32 35 24 27 30 35 aFriCa BRUNEI 121 181 215 317 levant 14 17 21 32 5 8 11 18 1,384 1,988 2,518 3,364 indian suB-Continent total Source: Takaful ReThe projected Takaful written premium estimates have often been debated by practitioners because of the wide range of numbers published by various sources. There is difficulty in determining firm estimates of the total industry potential as there is a wide variety of Takaful definitions and categorisation, as well as a lack of consistent and credible data. Oliver Wyman suggested in a recent study that the Takaful premium potential is at least USD$20 billion whereas Swiss Re in its annual Sigma report sees a potential of USD$56 bi llion. Takaful premiums by 2015 are estimated to be in the range of USD$7 billion to USD$8 billion.Hence it is necessary to exercise caution when analysing projected figures. Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of gDP, and its growth in the global market is expected to continue in the long term. Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of GDP, and its growth in the global market is expected to continue in the long term. Global estimates for the growth of the worldwide Takaful industry come in at 20% per year, far outstripping the 2. % annual growth for conventional insurance premiums. 2 It is interesting to note that many Takaful providers have emerged largely unscathed from the financial crisis, as investments are commonly held in highly liquid assets, which is due to limited Shariah-compliant investments. Ins urers considering entry to the Takaful market are better off assessing the markets and opportunities sooner rather than later. Targeted marketing and consumer education are essential to develop market awareness and established insurers can leverage their existing marketing and distribution platforms.The lack of a clear market leader in Europe and the UK means that insurers can take advantage of the challenges and opportunities present in a developing global industry. 1 2 Swiss Re (2008). Insurance in the emerging markets. Sigma, Issue No. 5. PricewaterhouseCoopers (2008). Takaful : Growth opportunities in a dynamic market. Retrieved Nov. 3, 2010, from http://www. pwc. com/en_GX/gx/financial-services/pdf/pwc_takaful. pdf. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 4 Milliman Research Report rinCiples and praCtiCes underlying takaFul Principles Underlying the Takaful Industry The Islamic F inancial Services Board (IFSB), a self-regulated organisation in Islamic finances, produced a paper on governance (in December 2009) and defines Takaful as follows: Takaful is the Islamic counterpart of conventional insurance, and exists in both Family (or ‘Life’) and General forms. Takaful is derived from an Arabic word that means joint guarantee, whereby a group of participants agree among themselves to support one another jointly for the losses arising from specified risks.In a Takaful arrangement the participants contribute a sum of money as a Tabarru’ commitment into a common fund that will be used mutually to assist the members against a specified type of loss or damage. The underwriting in a Takaful is thus undertaken on a mutual basis, similar in some respects to conventional mutual insurance. A typical Takaful undertaking consists of a two-tier structure that is a hybrid of a mutual and a commercial form of company – which is the Takaful operator (TO) – although in principle it could be a pure mutual structure.Hence there is a recognition that whilst the current ‘Takaful’ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. This will be analysed later when discussing the opportunities and challenges of the Takaful industry. There is a common misunderstanding that insurance or risk mitigation is not allowed under Islam, as Muslims believe that only God knows one’s future and faith. The following conversation taken from the sayings of the Prophet Muhammad depicts an interesting message as to why Muslims should indeed reduce the risk of loss:Whilst the current ‘Takaful’ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. Prophet Muhammad asked a Bedouin who had left his camel untied, ‘Why do you not t ie your camel? ’ The Bedouin answered, ‘I put my trust in God. ’ The prophet then said, ‘Tie up your camel first and then put your trust in God. ’ Every society has risk management needs and, with the evolution of time, the methodologies also evolve.Almost 10 centuries before the advent of conventional insurance companies, the Muslim societies in Arabia adopted concepts of risk mitigation such as ‘hilf’ to assist victims of natural disasters or hazards of trade journey. Another common practice widely used in Islam was ‘al-aqilah. ’ Under the custom of ‘al-aqilah,’ it is mutually agreed that, if a person is killed unintentionally by another person, the paternal relatives will take the responsibility to make a mutual contribution for the purpose of paying the blood money to the victim’s relatives.This practice of having a fund that pools contributions from a group of people to assist others in need is akin to mutual insurance. It is important to point out that the mutual assistance was not originally a commercial transaction and did not contain any profit or gain at the expense of others. Rather it evolved as a useful social practice to mitigate the burden of an individual by dividing it among fellow members. There are certain key issues within conventional insurance that Islam does not permit: †¢ Riba, or usury: The first of these is the earning of interest, referred to in Islam as Riba.It is a concept expressly prohibited at several points in the Quran. Traditionally viewed from the perspective of a loan, Riba is considered unfair and inequitable to the borrowing party and therefore earning interest is forbidden under Shariah law and Muslims must avoid Riba in all of their financial transactions. †¢ gharar, or uncertainty: The second element is the presence of uncertainty embedded in the design of conventional insurance products. Uncertainty and the trading in risk are cla ssed as Gharar, a concept forbidden in Shariah law to protect participants from hazardous or unjust transactions.Conventional insurance is designed around the transfer of risk in return for a premium, and the timing, severity, and/or frequency of insured events are each subject to Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 5 Milliman Research Report varying degrees of uncertainty. The perception that insurance products commonly contain unclear contract terms furthers the view that a high level of uncertainty pervades all aspects of conventional insurance. Maisir, or gambling: Related to Gharar is the concept of Maisir, also prohibited under Islam, which captures those transactions with an underlying gambling or speculative nature. In the context of life insurance, many contract designs can be viewed as gambles which ultimately benefit one side of an insurance contract at the expense of t he other. For example, by taking out a term assurance contract, the risk is transferred to the insurer for a fixed premium and the payment of a small sum could potentially yield a disproportionately large payout, benefiting the policyholder at the expense of the insurer.Alternatively, the payment of a stream of premiums for many years could result in no return at all, which benefits the insurer. †¢ haram, or forbidden: Conventional insurance designs may have investments in a number of asset classes that partake in activities prohibited within the Muslim faith, such as investments in alcoholrelated companies, pornography, or gambling-related enterprises such as casinos. Such activities are considered Haram or forbidden in Islam, and consequently, the proceeds of the conventional insurance are also deemed to be unacceptable in the Muslim faith.There is a further focus in Takaful (and in Islam in general) around the importance of moral values and ethics as business is meant to be conducted openly in accordance with the utmost good faith, honesty, full disclosure, truthfulness, and fairness in all dealings. It is not within the scope of this report to look into the Shariah matters in depth as there is a diversity of opinion on the exact principles of Takaful. There are some schools of thought within Islam that allow conventional insurance so long as it does not involve Riba (or usury) whilst others have a range of tolerance with some of the key issues mentioned above.However, by and large, there is broad consensus on the solution to these issues. This emerged in the late 1970s in Sudan, but gained more prominence in the 1980s in Malaysia and the Persian Gulf countries in the form of Takaful. Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. Takaful can thus be seen as the Islamic counterpart of conventional mutual insu rance (i. e. , insurance that is compliant with the Shariah).Takaful is not a type of insurance but rather an alternative to insurance. It has to operate on cooperative principles and incorporate the concept of Tabarru’ (donation, gift). Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. It is a one-way transaction which does not expect a definite return on the donation, unlike the more traditional bilateral conventional insurance contract where a premium is paid in return for an insurance benefit.The pooling does eliminate Gharar, as the uncertainty about future claim events certainly still exists but now is acceptable as the donation (Tabarru’) is meant for mutual assistance and not for profittaking or gambling (contracts of charity are not affected by the prohibition of Gharar). However, unlike conventional insurance where the risk is transferred to the insurer, all participants mutually share the risk in Takaful, which is an important fundamental difference. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay UnwinNovember 2010 6 Milliman Research Report The chart in Figure 3 summarises the key differences between conventional insurance and Takaful. Figure 3: Comparison oF Conventional insuranCe and takaFul Conventional insuranCe takaFul A risk transfer mechanism whereby risk is transferred Based on mutuality; hence the risk is not transferred but from the policyholder (the insured) to the insurance shared by the participants, who form a common pool. The company (the insurer) in consideration of an ‘insurance company (takaful operator) acts only as the manager of premium’ paid by the insured. the pool.In effect, the policyholders are both the insurer and the insured. Contains the element of uncertainty, i. e. , gharar, whic h The element of uncertainty, i. e. , gharar, is brought down is forbidden in islam. The terms of the contract are to acceptable levels under shariah by characterising unclear as to certainty of when any loss would occur contributions as donations (Tabarru’), not obligations, and and how much compensation would be payable. for a good cause, i. e. , To mitigate the loss suffered by any one of the participants, as opposed to payments linked to definite expectation of insured benefits to be received.Contains an element of gambling, i. e. , Maisir, in that the The participant pays the contribution (Tabarru’) in the insured pays an amount (premium) in the expectation spirit of ne’ea (purity) and brotherhood to cover mutual of gain (compensation/payment against claim). If the losses of members of the pool. Losses and gains are anticipated loss (claim) does not occur, the insured loses mutually shared by the pool members who contribute the amount paid as premium. If th e loss does occur, to the pool. That is, third parties (insurers or reinsurers) the insurer loses a far larger amount than collected as re not affected by the outcome of risk events. premium and the insured gains by the same. Funds are mostly invested in fixed interest-bearing Funds are only invested in non-interest-bearing, i. e. , instruments such as bonds, fixed interest securities, etc. Riba-free, instruments. Note that regular income hence these contain the element of riba (usury), which is investments are still possible (such as under forbidden in islam. Sukuk, islamic bonds) as long as the income is not interest-based. Surplus or profit belongs to both the shareholders and Surplus belongs to the participants and is accordingly he with-profit policyholders. The insured is covered returned to them. during the policy period but is not entitled to any return at the end of such period. The concept of Shariah (Islamic law) compliance is an evolving one and is overseen by the Islami c scholars that sit on the Shariah Supervisory Board, which provides the final certification of compliance. The scholars base their views primarily on the principles of the Quran, supplemented by Sunnah (the teachings of the Prophet), Fatwas (judicial opinions of Shariah scholars), and Islamic jurisprudence on economic transactions.While the words of the Quran and Sunnah are sacrosanct, the independent reasoning of Shariah scholars can be revoked or adapted to suit changing circumstances, and new developments are dealt with by legal reasoning and judgment of Shariah scholars. This creates a moving goalpost, which is one of the challenges in the Takaful industry which will be discussed further in Section 4. Takaful provides Shariah-compliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee.The mutual guarantee offered by Takaful is centred on a transparent, ethical, and Shariah-compliant agreement between the i operator and participants. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful provides Shariahcompliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee. 7 Milliman Research Report Practices in the Takaful Industry This section provides an overview of the components and current practices in the Takaful industry, including: †¢ †¢ †¢ Practices within Family Takaful (Life) and General Takaful Shariah-compliant assets Retakaful Retro-Takaful Family Takaful (Life) and General Takaful As introduced above, conventional insurance as sold in Western markets is fundamentally irreconcilable with several tenets of the Islamic faith. In terms of life insurance, Shariah scholars view these contracts as a gamble on the insured’s life. There is uncertainty surrou nding when and if death will occur within the covered period, and in the event that no claim is made the policyholder is considered to have made a loss.For Muslims, this incompatibility rules out traditional life insurance as a means of obtaining protection for their dependents. Family Takaful offerings provide access to life coverage in a manner which does not conflict with their religious beliefs. Takaful is structured around the core principle of sharing and pooling mortality/ morbidity risk with fellow participants rather than transferring it to a profitoriented corporate entity. Takaful is structured around the core principle of sharing and pooling mortality/morbidity risk with fellow participants rather than transferring it to a profit-oriented corporate entity.The concept of mutual support allows many parallels to be drawn between Shariah-compliant Takaful operations and mutual insurers. However, unlike mutual insurers and friendly societies, current Takaful operations involv e shareholders who have a profit motive, who provide the capital and fund the administration of the risk pool, and who are separate from the participants. Hence, Takaful operations can be viewed as Shariah-compliant commercialised mutual insurance operations. This structure of necessity, which is due to the need for capital, creates another set of challenges to be discussed further inSection 4. Similar to the concept of with-profits products sold by mutual insurers, Family Takaful is designed to combine protection for the benefit of one’s dependents with a savings element and requires the distribution of surplus to participants. However, the requirement of transparent disclosure of charges makes Family Takaful contracts akin to the clear charging structure underlying a unit-linked insurance contract. Current practice is to develop Shariah-compliant variants of conventional insurance products.Family Takaful variants of most common life products, including level and decreasing term assurance, savings and retirement plans, and critical illness coverage, have been successfully launched in various markets. For example, a direct contribution style of savings scheme offering equity exposure could be developed by limiting investment to stock issued by companies that meet the non-Haram or Halal (lawful) requirements. Even product designs, such as annuities and whole life plans, whose inherent features include an uncertain duration, are currently being considered as Takaful offerings.A consequence of mutuality, voluntary contributions, and absence of third parties (such as the insurer in conventional insurance) to share in the risks is that Family Takaful contracts cannot (or do not) offer guarantees to the participants. Guarantees on investment returns, bonuses, risk charges, or premiums, etc. , are not offered under Takaful products. While Takaful practice allows the spread of risk through reinsurance from Retakaful companies, or conventional reinsurers on a ne cessity basis, this practice is not to allow guarantees as the reinsurance pool is seen as an extension of the primary risk pool.Accordingly, investment returns on contributed funds by the participants are based on actual investment experience. However, the Takaful operator is obligated to advance a loan (qard), on an interest-free basis, to support any shortfalls in the risk pool in meeting claims. This implicit guarantee of underwriting risk by shareholders of the Takaful operation creates some weakness in the current commercial model of a Takaful operation. Commonly, while there are no guarantees, there are expectations established at point of sale through product illustrations. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities SafderJaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 8 Milliman Research Report However, the concept of mutual assistance does not prohibit the use of underwriting and prospective pricing based on experience studies. As with conventional insurance, if the health of a potential participant would result in significant additional strain being placed on the underwriting fund then an extra contribution would be required. The prohibition of interest-bearing instruments does not impact on the use of interest functions in pricing or valuation of long-term liabilities in Takaful.The pricing interest assumption is based on expected returns from Shariah-compliant assets underlying the liabilities. In terms of surplus distribution, any distribution made to participants is based purely on actual surplus arising. As long as the underwriting fund is not in deficit, surplus arising from both investment and underwriting activities can be used to make a cash payment to participants and/or contribute to any claim fluctuation reserve. The latter is set up to cover short-term volatility in the size and incidence of payments out of the underwriting fund.As with regular bonus declarations on conventional with-profits con tracts in the UK, surplus distributions, if any, are most commonly made on an annual basis. Participants in a Takaful operation will need to be appropriately and comprehensively educated on this feature of the product design so that reasonable expectations are built up as to the level of distribution. Shariah-Compliant Assets The avoidance of Riba, Gharar, Haram, and Maisir in the design of Takaful products has a significant impact on the investment decisions of a Takaful operation.Contributions must be invested purely in Shariah-compliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Haram or forbidden investments in Islam include financial derivatives such as futures and options, interest-bearing bonds, and equity issued by companies partaking in non-Halal business activities as described earlier. The development of the Sukuk market and a robust Shariah-compliant stock selection process together offer T akaful providers an increasingly viable solution to this investment conundrum.Contributions must be invested purely in Shariahcompliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Shariah law forbids loan issues that are at a discount to their nominal value and, as already discussed, completely restricts the earning of interest (Riba). These two conditions effectively rule out conventional corporate or government bonds. The expanding Sukuk market offers access to an asset class which shares some properties with conventional bonds and others with equity stock, whilst remaining Shariah-compliant.Regular Income Assets: Sukuk are issued via the creation of a special purpose vehicle (SPV) by an issuing bank that has been approached by a company or government seeking funding for a particular project. Sukuk certificates are then issued in return for an investor’s funding contribution, and rank alongside the bank’s other senior, unsecured debt. Sukuk instruments are structured to provide a direct link to the assets that underlie the particular project and through this link confer shared ownership of these assets to the investor.Investors then receive a regular income based on a target rate of return. Neither this income nor the return of capital on maturity is guaranteed and both will typically vary in line with the revenue of the company (or equivalently the return on or value of the underlying assets). This potential variance is partially offset by the ability of the Sukuk manager to build up reserves when revenue exceeds the target rate, which can be subsequently used to make up shortfalls. Sukuk provides the Takaful market with a legitimate investment alternative to government and corporate bonds.Several issues surround these Sukuk, such as availability, control, and ownership. These issues impact their overall effectiveness in supporting long-term liabilities, especiall y income annuities. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 9 Milliman Research Report Equities: A Takaful operator does not need to seek an alternative investment in order to gain exposure to equity-type risk and return.Equity stock does not pay interest and offers direct participation in the profits of a listed business whether through dividends or growth in the price of the stock. However, restrictions do exist in relation to the type of company a Takaful operator may invest in to remain Shariah-compliant. To gain exposure to equity returns Takaful operators or their investment managers must apply a screening process to eliminate stocks of companies that are exposed to forbidden industries or breach certain financial conditions.The industries deemed to be non-Shariah-compliant include banking, insurance, gambling, and those linked to pork, alcohol, or tobacco. The financial screeni ng looks at key financial ratios of a particular company, such as conventional debt ratio and the sum of the interest and non-compliant income compared to total revenue. Where these ratios exceed limits laid down by a company’s Shariah Supervisory Board, the equity issued by the company in question is excluded from permissible investment.This screening is a continual process, as the evolving nature of a firm’s business practices and capital structure mean that its status as either compliant or noncompliant is not static. Real Estate and Mortgages: Although there are Shariah-compliant forms of investments in real estate and mortgages, these are currently under-utilised but have significant potentials. Retakaful By entering into a reinsurance contract, conventional insurance companies are able to share risk, gain capital support, or benefit from a broader base of experience in areas such as pricing, underwriting, and claim management.Historically, Takaful operators have sometimes also had to make use of conventional reinsurance owing to the lack of a Shariah-compliant alternative—this exception was based on the ‘dharura’ or necessity principle. The growth in the Retakaful market offers a solution to this problem. Retakaful provides these same facilities to Takaful operators but within a structure that remains Shariah-compliant and in a manner specifically tailored to the particulars of the Takaful market. In the same way as Takaful rovides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In the same way as Takaful provides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In this regard, the operation of a Retakaful fund is very similar to that of a direct Takaful fund.A Ret akaful fund must have a Shariah Supervisory Board and the criteria it must satisfy to be considered Shariah-compliant mirror those to which a Takaful fund must adhere. The Retakaful fund receives contributions from each participating Takaful fund and distributes back surplus arising from investment and underwriting activities using one of the models described later in this report. Further, if the Retakaful fund goes into deficit then the Retakaful operator is required to make an interest-free loan or Qard Hasan to the fund to eliminate this shortfall.Re-Takaful operators may not pay commission to a Takaful fund with which it is engaged. In recent years there has been a significant growth in global Retakaful capacity, owing to major reinsurance companies such as Swiss Re, Hannover Re, and Munich Re entering the market. Their entries will help facilitate further expansion of the Takaful market, and the capital support and depth of advice that these players can offer will be invaluable in setting up an operation, wherever the chosen market. Retro-TakafulSome Retakaful operators retrocede conventionally on the ‘basis of necessity’ because currently there is limited Retro-Takaful capacity available. There is talk of a Lloyd’s syndicate for Retakaful players that would imply retroceding each other’s business to reduce volatility and provide the spread of risk, but this has yet to materialise. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 10 Milliman Research Report takaFul operating modelsThe basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. Family Takaful, the Shariahcompliant equivalent of life insurance, is commonly structured so that a participant’s contributions are apportioned between two segregated funds: the investme nt fund and the underwriting fund. An individual (investment) account is maintained for each participant with the contributions made, net of any upfront fees. From this account, risk charges are deducted to be deposited into the pooled underwriting fund.Contributions paid into the underwriting fund are considered to be made on the Tabarru’ basis, to support all participants in their exposure to mortality/morbidity risk. Any covered claims suffered by the participants are paid from the underwriting fund to avoid the transferral of risk. The basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. The sharing of risk with fellow participants is in contrast to full or partial transfer of the risk to a proprietary company.This also means that if the underwriting fund is insufficient to pay claims then no recourse can be made to shareholder assets. However, in practical t erms, to prevent closure of the fund, the deficiency is covered by a temporary interest-free loan (Qard Hasan) provided by the Takaful operator. This would be repaid from future surpluses arising within the underwriting fund. Nevertheless, this arrangement acts as a strong incentive for operators to properly manage the fund, thereby limiting the possibility of making future loans.Takaful is most commonly structured using the following models: †¢ The Mudarabah model: This is a ‘Proprietary’ or ‘Partnership’ model that considers the Takaful operator as a business partner with the participants. It is structured on classic profit-sharing principles, i. e. , a partnership model where the participants provide the capital, while the Takaful operator provides expertise and management of the Takaful fund. A contract details how underwriting surplus and investment profits are shared between operator and participants, similar to conventional insurance (with-profi ts or articipating business). The Takaful operator shares in the investment and underwriting surpluses via a predetermined ratio mutually agreed with the policyholders at outset. Neither the operator nor the participant can unilaterally alter this agreed sharing ratio, which is usually explicitly set out in the contract at outset. From the perspective of the participants, they do not contribute directly to the operator’s costs and all contributions are effectively available to meet claims.Correspondingly, the operator can generally only expect to make a profit by ensuring that the expenses of managing the operation are less than the total share of investment profit and/or underwriting surplus it may receive. If the underwriting fund runs into deficit then the operator is obliged to provide an interest-free loan or Qard Hasan, to be repaid once the fund is in surplus. †¢ The Wakala model: This is an ‘Agency’ model that treats the Takaful operator as an agent of the participants tasked with the administration of the Takaful fund, for which it is compensated through a fixed fee.The operator does not share in the risk nor in the surplus generated from the two funds (investment and underwriting) but instead receives a fixed up-front fee (commonly a percentage of contributions paid) to cover management expenses, distribution costs—including intermediaries’ remuneration—cost of capital, and a margin for operational profit. This fee must be pre-agreed and is commonly expressly stated in the contract. This fee can vary by product and some contracts can change over time. Competitive consideration predominates in the setting of the level and structure of this fee.On the whole, the operator will be profitable if the fee it receives is greater than its incurred expenses. Theoretically, the Takaful operator bears no insurance risks itself. The risk-bearing is seen as a process of solidarity between participants and takes place s olely among the collective of insured persons (therefore the name ‘joint guarantee’). However, due to the obligation to make up for any deficits in the pooled underwriting fund, the insurer is indeed exposed to a non-negligible insurance risk: it might not be able to recuperate a Qard Hasan if insufficient surplus is generated Takaful (Islamic Insurance):Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 11 Milliman Research Report over time. Furthermore, no interest can be charged on the outstanding loan, but this is one of the very intrinsic principles of Islamic finance that has to be strictly followed. In reality, therefore, the Takaful operator under a Wakala model bears more risk than the designers of the model may have intended. In the extreme, the underwriting fund can be underfunded to create perpetual deficit in the fund thus making it the responsibility of the Takaful operator to be at risk perpetual ly.The diagram in Figure 4 compares a typical Family Takaful structure using the Mudarabah and Wakala models. Figure 4: Comparison oF mudaraBah and Wakala models Participants Participants Investment Fund ’d on at urp nt S me Ta b ar io n Underwriting Fund Surplus shared in predetermined ratio between participants and operator Operator est ru Inv urp nt S me est Inv ar Contribution Investment Fund ru ’d s& ent rplus ym Pa g Su im in Cla erwrit d Un Ta b s& ent rplus ym Pa g Su im in Cla erwrit d Un Contribution us Wakalah Model lus Mudarabah Model on at io n Underwriting Fund Wakalah Fee (% of Contribution) Operator In the 1980s, in a pioneering Takaful regulatory development in Malaysia, scholars initially accepted the more commercial Mudarabah model. However, recently there have been concerns raised by scholars that Mudarabah may not be appropriate because of the fact that Takaful is supposed to create a ‘surplus’ and not ‘profits,’ and under writing surplus is prohibited as this arises from insurance risk.Therefore the element of profit-sharing of underwriting surplus by the Takaful operator within the Mudarabah model is deemed to be not Shariah-compliant. The pure Mudarabah model seems more akin to a business venture rather than a mutually based contract based on solidarity of its participants, which would imply that the Tabarru’ is working capital and is arguably not in the spirit of a donation. Furthermore, the relationship between policyholders and operators lacks transparency. The development of Takaful n the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The development of Takaful in the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The Wakala (agency) framework emerged as the dominant model, and Malaysian scholars have moved in favour of this model too. However, in late 2004, some scholars—particularly t hose in Pakistan, Bangladesh, and South Africa—began to highlight deficiencies with the Wakala approach.As a result of the recent findings in the Takaful industry, there have been many variations of Mudarabah and Wakala developed by practitioners to address the limitations. The variant Takaful models considered in this section are: Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 12 Milliman Research Report †¢ Variant Mudarabah model: A variant of the pure Mudarabah model would be to limit the profitsharing element such that it is only applied to the investment portion, which would then be fully in line with Shariah.However, this model might not be commercially viable as it is likely that the income generated from the investment portion will be insufficient for the Takaful operator. Another variant of this model would be to charge the operating expenses directly from the Takaful fu nd instead of funding it from the shareholders’ fund (i. e. , the underwriting result is net of Tabarru’, claims, Retakaful, reserve adjustments, and operating expenses).The type and amount of expenses charged to the fund should be laid out to the participants in a transparent manner, although there are concerns about the type of expenses that can be charged to the fund. With the Mudarabah model, there is also the difficulty in managing fixed expenses alongside a variable and potentially volatile surplus, although this feature indirectly encourages the efficient management of the Takaful operation. However, given the many commercial challenges facing the pure and hybrid Mudarabah models, many Takaful operators have opted for the Wakala structure. Wakala with incentive fee model: Critics of the pure Wakala model cite the lack of incentives for the operator to manage the Takaful fund efficiently as the operator does not share in any profits. The operator’s income is a fee, which is based on turnover (i. e. , Takaful contributions). Therefore, the Takaful operator may be driven to write large amounts of new business without due regard to proper underwriting or claim management (although to some extent this action is deterred through the commitment of an interest-free loan or Qard).To encourage the operators to apply appropriate underwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation, where the Wakala fee is adjusted (upwards) in the instance of an underwriting and investment surplus. This performance-related fee would not be permitted under a pure Wakala model though the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI, the self-regulatory body) recognises that an incentive fee is permissible. To encourage the operators to apply appropriate nderwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation. †¢ Wakala Mudarabah model (hybrid): This is the most popular model today for Family Takaful operators, where a Wakala is applied on the underwriting fund and a Mudarabah on the investment profit. Specifically, the operator charges a Wakala fee from the Takaful contributions and all underwriting profits are distributed back to the participants. However, investment profit is shared between the participants and the operator based on a predefined ratio.There is an appeal within this model as investment profits are usually the major source of income for Takaful operators, whereas underwriting results can easily be managed using quota share Retakaful arrangements. †¢ Wakala with Waqf model: The main issue in the pure Wakala model is that the element of Gharar (uncertainty) is not fully eliminated because the contribution (treated as a ‘donation’) remains in the participant’s ownership and is effectively a ‘conditional’ donation. Hence the participant can expect to receive the surplus back, which therefore becomes a conditional gift.However, there is uncertainty about the level and timing of the surplus it will receive. Secondly, there is a relationship between the participant and operator and another amongst participants (exchange of gift for a gift). This creates doubts on the Wakala contract as a contract of compensation. The relationship of the Takaful operator with the participants is ambiguous because none of the participants are liable for the repayment of the outstanding loan. To overcome these concerns, Pakistani scholars developed the idea of a hybrid Wakala-Waqf model to remedy some of these inherent disadvantages.This model requires the setting up of a Waqf (endowment-trust or independent pool) that becomes the nucleus for the relationship between the participant (donor) and the operator (i. e. , both have obligations towards this trust). A Waqf is a well recognised Shariah entity which has the ability of accepting owner ship or appointing ownership of asset. The objective of the Waqf is to provide relief to participants against defined losses as per the rules of the Waqf fund. By setting up a Waqf, the following advantages are derived:Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 13 Milliman Research Report ? The relationship of participant and operator is with the Waqf fund (i. e. , ambiguity removed) ? Donation of participant to the Waqf is unconditional (Gharar removed) ? Operator can be a Mudharib (or manager) of the investments of Waqf and can share in the investment profits ? Contingency reserves within the fund may be set up ? Cross-subsidy of various generations of policyholders is permissible ?Surplus distribution can be predefined on a variety of criteria with the primary condition that the operator does not get any share as a Wakeel (or representative) to the Waqf fund Currently this model is wi dely used in Pakistan and South Africa, and has also been adopted by the Swiss Re Retakaful branch in Malaysia. Which Model to Choose An operator can choose any of the above-stated models but the choice depends on many factors, such as the target population, regional acceptance, Shariah board views, regulatory framework, product design, marketing, and pricing.As outlined above, the most common models are the Wakala and Mudarabah model or a hybrid of both: †¢ Mudarabah model is less acceptable globally but perhaps more attractive as profit is shared with the policyholders. However, there is a strong opinion of scholars from especially the Middle East that underwriting profit cannot be shared with the operator as it stems from donations. †¢ The Wakala model is by far the most recognised and has the positive effect of providing a fixed and steady income stream. However, in its purest form it has limited upside potential as the only source of income is the Wakala fee.This coul d harm competitiveness as a high up-front Wakala fee might look unattractive to participants and have adverse effects to new entrants because of the high initial costs. †¢ There has been an increasing trend towards the hybrid model which is based on the application of the Wakala model for the underwriting portion and the application of the Mudarabah model for the investment part. Considering that investment income usually makes up the bulk of the profits, this model is viewed by many Takaful operators to be commercially viable.This is widely practiced in the Middle East and Malaysia and accepted by virtually all scholars across the world. †¢ The AAOIFI has also endorsed hybrid versions of Wakala models. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide an interest-free loan in case of a deficit in the underwriting pool. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide a n interest-free loan in case of a deficit in the underwriting pool.This expectation requires careful risk management techniques as there is uncertainty in terms of the amount and timing of the loan to be repaid from future surplus arising. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 14 Milliman Research Report issues and Challenges FaCing the takaFul industry The issues and challenges facing the Takaful industry are considered separately under the following sections: †¢ I. Key Issues and Challenges †¢ II. Technical Issues and Challenges †¢ III.Other Issues and Challenges I. key Issues and Challenges Some of the key issues and challenges facing the Takaful industry are: a. b. c. d. e. f. g. h. Lack of consumer awareness Scarcity of human resources with both insurance and Shariah expertise The shortage of Shariah scholars with appropriate experience Lack of standardisation in the industry that is due to Shariah interpretations Diverging regulatory approaches and the lack of centralised regulations Solvency and capital requirements Corporate governance Shortage of suitable assets These are discussed in further detail below. . Lack of consumer awareness Despite the introduction of Takaful, the increase in the level of penetration anticipated has yet to be realised. Many consumers are still unaware of Takaful as an alternative, and some view Takaful as commercialisation of conventional insurance into the Islamic world and reject the notion that it is a Shariah-compliant instrument. In addition, many individuals tend to downplay the importance of security and retirement planning and many are also heavily dependent on the social security systems—this is particularly evident in the Middle East.Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). T here is a need to fundamentally address educational issues surrounding Takaful and individual risk management amongst the Muslim societies, to develop consumer awareness. Most of the current education on Takaful is among interested or related practitioners and investors, and very few awareness campaigns are aimed at or designed for the target population.Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). b. Scarcity of human resources with both insurance and Shariah expertise Future growth may also be hampered by the currently narrow pool of professionals with sufficient Takaful knowledge in areas such as law, sales, and actuarial services. Most operators would typically employ human resources, such as legal advisors and actuaries, with conventional insurance experience.These resources would typically tend to learn the Shariah aspects of Takaful and adapt their previous experi ence to incorporate Shariah compliance rules in their new role. Hence the mindset of most operators tends to be driven by conventional thoughts and solutions and, as a result, there has been limited original thinking in the industry. Recently, there have been various Takaful courses offered, including one offered by the Chartered Insurance Institute (CII), which will assist in the development and creation of human resources with both insurance and Shariah expertise. c.The shortage of Shariah scholars with appropriate experience Every Takaful operator requires a Shariah Supervisory Board, which is typically comprised of three or more Shariah scholars. For a Takaful operator with regional ambitions, the need to build credibility in the target market means there are preferences for the board members to originate from the target markets or at least have experience in the target market. Scholars would ideally have experience and knowledge not only in Islamic jurisdictions but also in Tak aful. This is essential as board members are responsible for certifying the Shariah compliancy of the business operations.However, the number of Shariah scholars with experience in both Islamic jurisdiction and insurance is limited; inevitably, these scholars are currently sitting on multiple boards, which may create conflicts of interest and Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 15 Milliman Research Report compromise the quality of advice. The shortage in scholars remains a short-term barrier on new entrants and drives up the cost of setting up a Shariah board. As the Takaful industry has only recently been stablished, there is a wide range of issues currently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant. d. Lack of standardisation in the industry that is d ue to Shariah interpretations As the Takaful industry has only recently been established, there is a wide range of issues currently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant.For example, the inconsistency of Shariah interpretations can be seen in the following issues: †¢ Issues that are due to regional differences: There are significant regional differences in consumer attitudes and the extent of tolerance and innovation in the Takaful industry. For example, Malaysia is perceived to be more liberal and willing to embrace modern conventional concepts within the Takaful framework. In contrast, the approach in the Middle East countries is more conservative, with less willingness to embrace modern conventions.This creates challenges in transferring solutions across regions. †¢ Issues in the choice of Takaful models: There is a variety of models that may be adopted by the Takaful operator in the industry, as discussed in Section 3. There is a wide variation in practices and model preferences in various countries, which is due to the varying interpretation by scholars. For example, in Saudi Arabia, the regulators—Saudi Arabian Monetary Agency (SAMA)—approve a cooperative model in which only 10% of the surplus is mandatory for distribution to policyholders.Some scholars would argue that this model does not meet the requirements of Shariah compliance. For instance, there are no specific Shariah compliance requirements for assets. yet Takaful operations are still possible, and some have been approved, within the broader cooperative model framework. Similarly in Iran (where the entire legal system is Islamic-based), Takaful remains an unknown concept as the Shia Islamic school of thought (as practiced in Iran) does not view conventional insurance to be non-Shariah-compliant.However, despite these regional variations, t here is a global trend elsewhere towards a Wakalabased model without any sharing of the underwriting profits. This approach has also been formally approved by the AAOIFI, which is a step towards standardisation. However, a global standard for Takaful models remains to be seen, which is due to the varying opinions and interpretations of Shariah scholars around the world. †¢ Issues about the source of capital: There is a wide variety of issues that are subject to Shariah interpretations.One of the debates amongst scholars is whether it is necessary for the original capital in a start-up Takaful provider to be Shariah-compliant. In practice some scholars typically do not question the initial source of capital as this would impede the operation of global players. Instead, the scholars would usually only insist on the usage of capital to be fully Shariah-compliant. †¢ Issues surrounding the type of risk deemed acceptable in Takaful: Another topic of debate amongst scholars s th e type of risks that are deemed to be acceptable within Takaful, and this issue mainly relates to General Takaful. As the concept of Takaful is to mutually guarantee all participants, there is an argument that for large risks where the number of participants is limited, those risks may not fall within the concept of Takaful. For example, Takaful coverage for government-owned projects where all the participants within the pool are government agencies may not essentially achieve the concept of mutual guarantee (as arguably there is only one participant in the pool, the government).There is a debate on whether there should be a distinction between Halal (lawful) and Haram (unlawful) risk, and if prior screening of risks is necessary for acceptance within the Takaful pool. Related to the lack of standardisation in types of acceptable risks is the lack of uniformity in the definitions of insured events and exclusions. For instance, in Family Takaful treatment of suicide, Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 6 Milliman Research Report AIDS, and contestability is non-uniform. This complicates the applicability of pricing assumptions based on experience statistics drawn from conventional business and complicates pooling of experience among Takaful operations with differing underwriting and contract definitions. †¢ Issues surrounding Wakala fees and the cost of capital: Another issue that is constantly debated is the extent of expenses that can be charged by the operator as Wakala fees and whether the cost of capital can be included.Some Shariah scholars have argued that the operator cannot charge participants for the cost of capital, which raises the question of the commercial viability of Takaful operators. Some Takaful operators would also choose to allow for a profit margin to be embedded within the Wakala fees, and there is further debate on the extent that this is tolerable within the bounds of Shariah. The opposing views of Shariah interpretation in different regions make Takaful standardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions.This lack of standardisation in Takaful may undermine the credibility of the industry, and may have a subsequent negative impact towards consumer protection, transparency, disclosure, and the overall ethics of insurance. e. Diverging regulatory approaches and the lack of centralised regulations In the absence of standardisation of a global Takaful regulatory regime, the industry is relying heavily on the opinion of the Shariah boards of the Takaful companies, subject to any local regulatory constraints. Local regulators have adopted a variety of approaches when it comes to dealing with Takaful.There are three key categories of regimes: The opposing views of Shariah interpretation in different regions make Takaful s tandardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions. 1. A level playing field approach, such as the Financial Services Association (FSA) in the UK. This is the most common approach by regulators in predominantly non-Muslim countries. The FSA has adopted a ‘no obstacles, but no special favours’ approach in handling Takaful business and will regulate Takaful operators within its current regulatory framework. . A pragmatic middle ground, such as the Bank Negara Malaysia (BNM), in Malaysia, where the regulators have adopted a comprehensive Islamic financial system running parallel with the conventional system, with an evolving attitude to regulations over time. 3. A more specific ‘tailor-made’ approach, such as the Central Bank of Bahrain (CBB). The CBB has taken the lead in considering the unique characteristics of Takaful companies and aligns the regulations of Islami c insurance as far as reasonably possible.It is useful to note that based on a ‘level playing field’ regulatory approach, the FSA has outlined in its November 2007 publication entitled ‘Islamic Finance in the UK : Regulation and Challenges,’ three potential challenges in regulating the Takaful industry: †¢ Whilst Takaful products may appear similar to conventional products, the structure of the Takaful offerings and operations are fundamentally different compared to conventional products †¢ The role and responsibility of the Shariah Supervisory Board should be purely advisory (i. e. , not executive roles) The marketing and promotion of Takaful products must be fair, transparent, and not misleading, in the spirit of the ‘treating customers fairly’ principle Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. There have been talks within the industry part icularly expressed by practitioners at various conferences and seminars for the need to standardise the Islamic finance industry, with aims to develop standards and guidelines for Islamic financial institutions and regulators.These are mainly driven by four organisations (details of each of the following are provided in Appendix III): Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. 17 Milliman Research Report †¢ Rulings of the Islamic Fiqh Academy of the Organisation of Islamic Conference (OIC) †¢ Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) †¢ Islamic Financial Service