Catcher in the Rye Essay on Holden’s Inconsistencies Essay

‘It is his inconsistencies that make Holden compelling as a character. ’ I completely agree with this statement, as Holden’s significant inconsistencies are what make him an insightful, genuine and compelling character. A world without inconsistencies would be very boring. As humans we are all drawn to the odd/ interesting things in life to some extent. This is why Holden is so compelling as a character; it is because he is different from the conformists of the world he lives in. As we can see in chapter 2 when Mr. Spencer says ‘life is a game boy. Life is a game that one plays according to the rules. We may think at first Holden thinks life is a game, however he believes the opposite, he is deathly serious about life, but he doesn’t accept the rules set before him by ‘phony’ adults. Another way that Holden is inconsistent with the world around him that makes him a compelling character is that he demands authenticity. For example in Ernie’s piano bar he believes Ernie is a ‘phony as he makes his music fake with trills and fancy technical display to impress the crowed (‘terrific snob’) As Holden demands authenticity he also doesn’t want art to be an occasion for egotistic exhibition. He thinks to himself, ‘I was surrounded by jerks. ’ Another inconsistency that makes him a compelling character is his hypercritical tendency to lie, however be always true to the reader: ‘im always sayin glad to’ve met you to some one I’m not at all glad to meet, if you want to stay alive you have to say that stuff though. ’ This quote also underscores his entire philosophy of life. He attempts not to keep himself alive but, but to keep the innocence of those around him. He also wants them to think he is really glad to meet them in order to preserve their innocence. Another example of many, is in the train talking to Morrows mother, he tells us, ‘her some was doughtless the biggest basted that ever went to Pency, in the whole crumby history of the school. ’ He tells her, ‘he adapts himself very well to things,’ and ‘he’s a very sensitive boy. ’ He concludes I’m the most terrific liar. ’ This quote sums up his hypercritical nature as he thinks liars are phonies. I feel that the inconsistency that makes him most compelling and empathisable is his attachment to Allie. The main cause of Holden’s depression and inconsistencies was Allie’s death. Through out the novel he talks about Allie very admiringly: ‘my brother Allie, the one that died was a wizard. ’ And,’ 50 times more intelligent,’ and,’ people with red hair are supposed to get mad very easily, but Allie never did. ’ Due to all this upraised talk about Allie in the past, it forces us to sympathize with him, which forges a relationship between Holden and the reader thus making him more compelling. Also, Holden’s subconscious battle between innocence and adulthood make him very interesting to the reader. Holden believes himself to be the protector of innocence. ‘ The catcher in the rye. ’ Which incorrectly derives its meaning from Robert burns’ song ‘comin thro the rye. ’ Which correctly interpreted is song about adultery and sex. Holden misinterprets the song as catching kid innocently running through a rye field about to fall off a cliff into adulthood. Holden is on the edge of this cliff, drawn to the adult world by sex but pulled back by Allie, as Holden connects him with innocence, and to lose his innocence would mean to forget Allie. We can see in chapter 13, this battle between adulthood and innocence that make him such an interesting character. In this chapter Holden is very keen to meet the prostitute: ‘put some water on my hair,’ he’ ‘tested to see if [his] breath stank. ’ He also, ‘brushed [his] teeth†¦ then [he] put on another clean shirt. ’ He said, ‘ I was started to feel pretty sex and all. It is obvious here that Holden is ready to lose his virginity and plunge into adulthood with no second thoughts. However his mind set changes when he realizes she is ‘young as hell. ’ His persona of the protector of innocence kicks in, ‘sexy was the last think I was feeling, I felt much more depressed than sexy. ’ Here his innocence overcomes adulthood and pulls him away from the cliff. Therefore it is Holden’s inconsistencies that make him such an interesting and compelling character to the reader.

Does Person-Centred Therapy Differ from Other Helping Relationships?

â€Å"How do person-centred counsellors use the therapeutic relationship to facilitate change- and in what way (s) does person-centred therapy differ from other helping relationships? † word count: 2,495 Person centred counselling originated and was evolved on the ideas of American psychologist Carl Rogers. The influences on Carl Rogers and he’s conceptualisation of Person centred counselling are numerous, from his early family life living on a farm, his interest and involvement in theology and his formative professional career. One incident which appears to have had a particular impact on Carl Rogers was when working in his first job as a psychologist, at Rochester New York, for an organisation for the prevention of cruelty to children, whilst working with a parent (Kirshenbaum H, et al. 1989). At this stage in his career Carl Rogers, being trained in or influenced by the tradition of psychoanalysis, was essentially working in a diagnostic and interpretative way, helping a child or parent gain insight or an intellectual understanding of their own behaviour and what was unconsciously driving or motivating it (Thorne B 2002) . He formalised that the problem with the child stemmed from the Mother’s rejection of the child in his early years. But despite a number of sessions was unable to help the Mother gain this insight. He concluded that it wasn’t working and finally gave up. The Mother was leaving when she asked Carl Rogers if he takes adults for counselling. He began working with the mother, where she subsequently expressed her despair of unhappiness and feelings of failure, which was more emotive and authentic in expression, than the previously intellectual and matter of fact account given previously of her history and current life. Carl Rogers said that ‘real therapy’ began at this moment and concluded in a successful outcome (Kirshenbaum H, et al. 1990). This is Carl Roger’s view and what he learned from this experience: â€Å"This incident was one of a number which helped me to experience the fact- only fully realized later- that is the client who knows what hurts, what directions to go, what problems are crucial, what experiences have been deeply buried. It began to occur to me that unless I had a need to demonstrate my own cleverness and learning, I would do better to rely upon the client for the direction of movement in the process†. Kirshenbaum H, et al. 1990 p13). This statement is arguably the beginnings of what, in many ways would later define and becomes a way of working within person centred therapy – that is a therapy that allows the client to be whom the client is, without any active direction from the therapist. Carl Rogers through clinical experience, research an d development later defined his model of therapy. He based it upon the principles of a person as having at it’s a core an instinctive tendency towards growth, to fulfilling their potential as a person in what he termed ‘self actualisation’ (Mearns D, et al. 988). Carl Rogers believed that every living organism has a desire to increase, widen and broaden. Essentially, a fundamental urge to improve upon itself and that although, in the case of human beings, this urge may be buried or hidden by multiple psychological structures and conflicts, he strongly believed in the existence of this actualisation tendency in all of us and that given the correct conditions, it could be freed and realised in all of us (Rogers C 1961- becoming a person). Personally, I have recognised a need to develop and grow within myself for sometime and this has again been highlighted to me during this term. The more I become aware of my insecurities and pre judgements, the greater the desire to become bigger than them only becomes more apparent to me. Through my clinical experience working with adults with mental health problems, I have certainly recognised a desire in many, to become bigger or more than their issues, although, I am not certain if that was a desire to escape from their often intolerable suffering, or a fundamental need to self actualise†¦ at the very least, I would suggest self actualisation is an entirely relative supposition and will differ from person to person, dependent upon their own experiences, circumstances and perhaps even expectations. These correct conditions which are required within person centred therapy in order that the client can achieve self actualisation and personality change were outlined by Carl Rogers and he believed that if this 6 conditions were met, it would facilitate change within the client: Two persons are in psychological contact- both client and counsellor are present physically and psychologically. The client is in a state of incongruence, (which will be discussed in more detail) the communication of the counsellor’s empathetic understanding and unconditional positive regard is met at a minimal level. The last condition mentioned involves 3 other conditions, which are essential attitudes and qualities necessary for the counsellor to posses for successful therapy; empathic understanding, unconditional positive regard and congruence. (Rogers C, 1957). Before looking at the latter 3 in more detail, it is important to understand Carl Rogers’s view of the person and perhaps what is ultimately bringing the client to therapy. Carl Rogers believed that there is incongruence between the self that is the actualisation part, that has a desire to grow, is open to experiencing in the moment and ultimately psychological well being and the actual experience of the self. He believed this effect was caused by ‘conditions of worth’, by external expectations, such as by parents and teachers, i. e. f you behave in a certain way that pleases me, that perhaps doesn’t evoke anxieties in me, you are a good boy- there are certain ‘conditions’ attached to being in this relationship- the child tries to internalise these conditions in order to maintain the relationship (Mearns D 1994- developing PC). Consequently, people deny or distort the experiences to their selves, which differ to how we are supposed or are condi tioned to be. Therefore, Carl Rogers believed that we begin to believe in what we are not and refute who we really are (Mearns D 1994). The person has a fixed and inflexible view, or self concept (Rogers C 1980). It’s almost as if the person is driven in implementing or adopting certain behaviours in order to be accepted or loved and denying, or at the cost of their true self and feelings. This is the state of incongruence Rogers was referring as apart of the necessary conditions. Carl Rogers recognised, through his development of this approach, that distinctive and essential qualities are necessary within the therapist, for successful therapy and to facilitate character change. The emphasis being on the therapist’s attitude towards the client, as opposed to any technical skills or interventions, in comparison to many other modalities. As already mentioned, the key attitudes or qualities being empathy, congruence and unconditional positive regard (Rogers C 1980). Empathy can be considered as having an ability to perceive and understand in the other person their feelings, experiences and their meaning to that person. To understand the internal world of that person, to be fully aware of the feelings they are experiencing, their anger or sadness for example, as if they are your own, but being aware that they are the clients, in order that your own feelings do not become the focus or blur the clients own experiencing (Rogers C, 1957). To absolutely see from the clients view, the feelings they may have from their position or personal experiencing, but recognising them as separate from your own. I recall a moment during this term, when in skills practise, being in the ‘client role’, when I received empathy. I was speaking about a personal situation, which I was aware on some level had meaning to me, but wasn’t fully aware of, or experiencing the feelings relating to this meaning. My perception later was that the person listened so intently, was so with me in trying to make sense of my situation, that they really did know and fully understand how it must feel for me. It was almost if I had no choice in allowing my feelings to be present, to come to my awareness and I was left with a sense of loss, feelings of loss, that I wasn’t aware of and made tremendous sense to my circumstances and why I had some anxiety and confusion in relation to this particular issue. This highlights for me how powerful empathy can be, as well as actively listening to and showing an interest sufficient in trying to understand the client, but also how it has the potential to provoke in the client in becoming aware of hidden feelings or realisations. Unconditional positive regard (UPR) is another important aspect and described as having total acceptance of the client, without conditions, whoever and whatever the client is, or how they may behave. An acceptance of not what they may or could be, but as they are now, regardless of what desired qualities the counsellor may wish for. It means total respect and valuing the person, without judgement. It also involves a sense of genuine care and wanting the best for them, including warmth for the person (Rogers C 1961). David Mearns talks about the often confusion in trainees, when understanding UPR, with a statement such as, ‘how is it possible to like all my clients’? He makes a distinction that liking is generally selective, as we perceive a similarity in values and complementary needs and UPR and liking are two very different concepts (Mearns D 1994). Unconditional positive regard is completely about valuing the person, without conditions, with all the facets of the person, their struggles, protective layers, confusion and perhaps inconsistencies. This unconditional stance is a contradiction to the conditions of worth spoken of earlier and is a vital component of person centred counselling (Kulewicz S, 1989). If a client is holding a believe that they will only be accepted, depending on the condition of others, essentially they do not see themselves as being wholly acceptable. The stance and communication of UPR can break this believe and the client is able to be in a relationship, with the counsellor accepting them without conditions (Rogers C 1961). If the counsellor is consistently valuing the client, the client perhaps has no reason for the protective layers and can be more open to their own inner experiences. Also, I wonder if the counsellor is almost giving permission and communicating a message to the client that it is ok to accept who they truly are. Another essential attitude for the counsellor, recognised by Rogers is congruence. This is the counsellor being who they are, no facade or ‘professional’ barrier. The counsellor is open and genuine in the relationship, allowing all feelings and thoughts to be in his awareness and available to him (Rogers C 1961). It’s being present with yourself and owning your feelings, not necessarily expressing what you are experiencing at the time to the client, but also not denying it. How congruence is conveyed is ultimately depended upon the counsellor themselves and when appropriate. It is about allowing a trust to be formed with the client, without pretences, where the counsellor is being human and willing to be seen (Thorne B 2002). If the counsellor is willing to acknowledge his feelings, strengths, perhaps their mistakes or weakness, it can not only allow for a more open and flowing relationship, but again I see this as perhaps giving permission to the client to embrace themselves, their strengths and weaknesses. How this differs from a helping relationship, are mainly the quality of contact and the nature of the differences in relationship. What if our client seeks help from a non person centred counsellor, perhaps a professionally respected person, a Doctor, teacher, perhaps even a work place manager, or colleague. They will listen, perhaps are sympathetic, are likely to offer advice and some direction the person may take in order to resolve their problem. But there is no ongoing process, no consistency of a relationship, with all the qualities discussed, empathy, UPR and congruence. The person centred therapist offers a safe and non judgemental relationship, with the client being valued for who they are, where they can grow in understanding of themselves, gain insight and become psychological stronger and independent. A helping relationship, although perhaps useful and supportive, will not facilitate change and allow a person to grow. In conclusion, person centred therapy is about an effective relationship, or aspires to be one, in which a person through experiencing a positive connection with another person, namely the therapist, receives deep empathy, understanding and genuine care. This enables a person to question or challenge their self concepts, to begin to experience buried or hidden feelings and gain a deeper understanding of themselves, with more acceptances and the autonomy to live without fear of their own feelings and perhaps their truer selves. It is without any difficulty from me to admire the sheer humanity of what Carl Rogers achieved with person centred therapy, the whole ethos of accepting and allowing the person to grow through such a positive and caring relationship. It appears to me that this is an incredibly challenging model of therapy, for both client and therapist. For the client the person centred therapist may appear safe and accepting, even inoffensive or unchallenging to his protective mechanisms or fixed self concepts, but that is perhaps the greatest challenge to the client, who may want answers or ways of dealing with their issues, perhaps unbearable anxiety and will perhaps look to the therapist for solutions and will find the person centred therapist completely and deeply sharing their distress, but essentially leaving it with client to be able to tolerate and accept for themselves, with of course as discussed, with the intention for the client to grow, understand the meaning behind their distress and ultimately in becoming psychologically independent. I would imagine, at least initially or in the short term, it must be difficult for the client, who is still searching and looking outside of himself, for the apparent safety and false ‘conditions’ that will make it all well again. For the therapist, the challenge is potentially numerous, but what I recognise is the trust he must have in the process of person centred therapy, in maintaining all the attitudes as discussed and consistently so. I can see that taking great strength and discipline, when he could perhaps temptingly turn to direction and advice giving. I am also left wondering if the strengths within PC therapy are also its weaknesses. The quality of therapy can only be as effective as the quality of therapist, or the limitations of the therapist. This could be said of other therapies, but for example, the CBT therapist has a direction and structure to fall back on. The challenge to the PC therapist is to be constantly growing and developing, as there is such a dependence upon who they are in the relationship. References: Kirshenbaum, H. and Henderson, V. L. (1989) The Carl Rogers reader Bury St. Edmunds: St Edmundsbury Press Limited. Kulewicz, S. F. (1989) The twelve core functions of a Counselor (5th Edn). Marlborough, CT: Counselor Publications. Mearns, D. and Thorne, B. (1988) Person-centred counselling in Action (3rd Edn). London: Sage Publications Ltd. Mearns, D. 1994) Developing Person Centred counselling (2nd Edn). London: Sage Publications Ltd. Rogers, C. R. (1957) The Necessary and Sufficient Conditions of Therapeutic Personality Change Journal of Consulting and Clinical Psychology Vol. 60, No. 6, 827-832 . Rogers, C. R. (1961) On Becoming a Person London: Constable & Robinson Ltd. Rogers, C. R. (1980) A way of Being Boston: Houghton and Mifflin Company. Rogers, C. R. (1980) Client Centred psychotherapy In: Kaplan, H. I. et al, ceds, Comprehensive text book of Psychiatry (3rd Edn). Baltimore: Williams & Wilkins Co. Thorne, B. Dryden, W. (2002) Person Centred Counselling in W. Dryden Handbook of Individual Therapy (4th Edn). London: Sage. pp. 131-157.

Antibiotics resistant superbugs Research Paper Example | Topics and Well Written Essays - 1000 words

Antibiotics resistant superbugs - Research Paper Example For example, there are approximately 2 million cases of antibiotic resistant infections and about 23, 000 deaths in the United Sates every year (Trossman, 2014, p.1). This implies that antibiotic resistance is an imminent problem that requires to be addressed. However, not all superbugs have ties to hospital medication and some actually have ties and are spread in the community. Nevertheless, the most common superbugs are related to hospital medications hence necessitating the need for further research in relation to medication related superbugs. Once bacteria develop resistance to antibiotics, there is imminent need to develop better antibiotics that are seemingly stronger in order to get rid of these bacteria. Antibiotics in use for the first time are referred to as first-line antibiotics while the newly developed antibiotics are second-line agents and depending on the severity of the bacteria, the agents can be developed further even to third-line and fourth-line antibiotics. For example, MRSA has proven resistant to a number of antibiotics thereby necessitating the need to develop antibiotics further third-line and in some environments fourth-line antibiotics. For example, studies by National Nosocomial Infections Surveillance in 2003 showed that 60% of Staphylococcus aureus related infections were resistant to methicillin (Capriotti, 2007, p.1). However, all antibiotics developed after the first line antibiotics are not keen to such factors as safety, availability and cost as compared to the first line antibiotics. This implies that predecessors of first-line antibiotics may not be readily available in all areas thereby further increasing the problem of superbugs. Superbugs are mainly formed through genetic mutations or procurement of new genes from the continued interactions between bacteria. Gene transfer between bacteria is facilitated by the fact that they mostly

Corporations and aspects of Labour Law Coursework

Corporations and aspects of Labour Law - Coursework Example The principles of fairness, transparency and accountability need to be incorporated in corporate governance for a sustainable development. The role of the government in providing the framework helps in establishing the benchmark or threshold for the companies to follow the best practices is very important because, it influences policy making in the corporate world and instill competition among the companies in the positive direction by reorienting their strategies to become good corporate citizens for a sustainable development in the long run. The paper seeks to study and analyse the impact of compliance with labour laws by the companies on corporate governance and corporate social responsibility (CSR), and the need for active regulatory intervention in tune with the environmental changes for economic development. Introduction Industrial peace in one of the important criteria for the development of the economy in a country, and the government through its policies provide the framewor k and regulate the industrial relations within the country. It is a prerequisite for the success of a business undertaking (or a not-for-profit organization or government department), because, the employees are the important stakeholders in an organization and their active cooperation is essential for the overall success of the CSR policies of the company and profitability. ‘Reflexive critique’ is one of the six key principles in action research: â€Å"An account of the situation through documentation such as notes, transcripts or official documents, in order to make implicit claims to be authoritative, i.e., it implies that it is factual and true.  However, it must be noted that truth in a social setting, however, is relative to the teller.  Ã‚  The principle of reflective critique ensures people reflect on issues and processes and make explicit the interpretations, biases, assumptions and concerns upon which judgments are made.  Ã‚  In this way, practical accou nts can give rise to theoretical considerations†. (O’Brien, 1998) In this paper, corporate governance and the corporate social responsibilities shouldered by the companies such as economic, legal, ethical and discretionary, in respect of labour relations and compliance with the labour laws have been analysed from this perspective. Liberalization and globalization of the economies and the consequent developments such as Business Process Outsourcing (BPO) in a large scale to the developing countries, the question of proper treatment of the employees with respect and dignity in these countries has also emerged in the backdrop of discrimination, child labour, poor wages and working conditions, in the recent years. Good corporate citizen (2007) states â€Å"Corporate citizenship recognizes that businesses have a responsibility to respect the individuals, the community and the environment in a way that when devising or implementing any rightful business strategy they will ab ide by laws and regulations, and adhere to high ethical standards†, and the role of employees is very important in this regard. This paper focuses mainly on employees as stakeholders, and seeks to answer the question ‘Does compliance with labour laws improve Corporate Governance and CSR?’ thereby improving the labour relations. It is also important to note that success

Toxoplasmosis Term Paper Example | Topics and Well Written Essays - 1250 words

Toxoplasmosis - Term Paper Example It was found in a survey that approximately 1% of household cats had the organism present (Robbins et al 2005 & Levinson 2008). The infection spreads by means of intake of the cysts of the organism by human beings either through intake of meat that has not been cooked properly or via any other eatables that have been infected. Contact with the fecal matter of the cats which also contain the infected cysts can also result in infection. The other mode of transmission is via the placenta to the fetus during pregnancy or during invasive procedures which include transplantation of organs or during blood transfusions (Rao 2004, Brooks et al 2004 & Levinson 2008). In the human beings the infected cysts reach the small bowel and split over there. This leads to liberation of products which enter the gut wall where the macrophages become activated and engulf these foreign bodies. They multiply within the cells and form trophozoites which destroy the cells within which they are engulfed and then move towards acting on other cells. If the immune system is intact the cell mediated immunity restricts the trophozoites and the proztozoa then gains entry in the cells of the brain, muscle and other tissues and forming cysts which do not multiply at a very fast rate. This form of cysts within which the protozoa is replicating at a very slow pace is referred to as bradyzoite. There is danger of these cysts getting ruptured in people whose immunity is not intact and is compromised. These cysts also serve as diagnostic tools for concluding the presence of the organism in the body (Levinson 2008 & Brooks et al 2004). Toxoplasmosis does not present any severe manifestations or symptoms in people who have an intact immune system. It does not also spread from one person to another apart from the transmission via the placenta. The dissemination of the protozoa from the small bowel can be to other organs

Nursing Management Leadership in Health Care Institutions Research Paper

Nursing Management Leadership in Health Care Institutions - Research Paper Example It is all about striving to balance between doing the right thing at the expected time in the correct manner and doing such things right. The rapid and dramatic transformations in healthcare systems make these skills even more vital than ever. Both managers and leaders should envision the future to provide a leading role towards an efficient and productive unit with satisfying personnel. As leaders, it is never possible to stop seeking professional growth and opportunities that can help guarantee a difference in our own profession. Certainly, there exist many ways that can help in accomplishing this, including reading professional journals, being politically active and aware, as well as attending continuing education relevant to the nursing practice (Sehested, 2002). As good leaders, nurses are expected to take advantage of such opportunities for their advantage (Sehested, 2002). As a means of seeking professional growth, an article that entails balancing leadership roles and practis ing nursing roles has been chosen to guide the process. This paper, therefore, intends to critically evaluate a research article titled, ‘leading nurses in dire straits: head nurses' navigation between nursing and leadership roles.’ by Sorensen e., Delmar c. & Pedersen b.d. (2011). This article was published in the Nursing Management Journal. This paper intends to critique a study reports and the findings from a study focusing on the nursing and leadership roles of head nurses’ in the hospitals. The reason as to why this article is chosen is because of the conflict head nurses face as they perform their nursing and leadership roles in the healthcare settings. The debate is centred on how management reforms challenge professional leadership roles in public organizations (Sehested, 2002). This study is vital in the sense that it helps in improving nursing practices to patient care and exploring how successful nursing leaders tend to navigate between the two roles. In this case, the two roles are; nursing and leadership roles. The findings of the study are properly done to comprehensively validate the nursing practice. Therefore, there is a need to critically put forth the worth of this study and the evidence in it, thus appraising the study. The title of study define clearly what the study is all about, that is, to investigate the negotiation between nursing and their leadership roles in hospital practice. The study population, a brief description of the methodology and the key outcomes being investigated are all included in the title of the study. The study populations in the study are the nurses in leadership positions working at a first line level and at a departmental level whose age range is 39-57 years with an experience of 3-4 years in either of the leadership roles.?The key outcome of the study was Closeness distance and the recognition game. The methodology applied in this study was participant observation and ethnographic interviewi ng techniques where nurses in leadership positions acted as informants. They were selected in a stratified fashion to ensure diverse, rich and nuanced data the informants were gathered. Here, the inclusion-exclusion criteria were not satisfactory, for instance, the leadership experience number of years was limited to a maximum of only 4 years. This should have been extended to about 8 years to get the views of the most experienced nurses in leadership roles hence a more valid, representative and reliable study results.

Learning organisation Essay Example | Topics and Well Written Essays - 1000 words

Learning organisation - Essay Example Learning organization can be defined as, â€Å"A Learning Company is an organization that facilitates the learning of all its members and continuously transforms itself†Development of an organization into a learning organization is not an organic process Instead, such a development is facilitated by certain factors. With the growth of organization and structuring of the company, individuals tend to assume more strength and power and their rigidity subdues the organization’s capacity to learn as it grows. In such circumstances, solutions applied to counter problems are often ineffective. Organizations tend to downsize in an attempt to enlarge profits and remain competitive. With fewer staff members, load on individuals grows manifolds. In order to gain competitive advantage and to promote a culture that is customer responsive, it is imperative that companies learn faster than their parallels in the market. This requires maintenance of knowledge regarding new processes an d products and an understanding of the outside environment. That is why learning organization has been defined as, â€Å"a company that can respond to new information by altering the very â€Å"programming† by which information is processed and evaluated† (Malhotra, 1996). In order to accomplish this, employees assume a greater responsibility of both managing their own works and cooperating with one another to play part in the organization’s strategic processes meant for competitive advantage. This paper aims at discussing some of the key features of a learning organization.... According to the systems thinking, in order for an organization to gain the qualities a learning organization, all traits should be simultaneously apparent in it. In case an organization lacks any of the five characteristics, it will not be able to achieve its goal. However, some people are of the view that these traits can be acquired or developed one by one with time. For example, O’ Keeffe (2002) is of the view that these features can not all be acquired at once, and are instead, developed gradually to convert an organization into a learning organization. Shared vision: One of the key factors that provide an organization with an opportunity to gain competitive advantage is shared vision. Shared vision among the organizational personnel builds their common identity. This in turn, provides the workers with tremendous energy and inculcates motivation in them to gain learning. In this way, shared vision plays a cardinal role in promoting learning among the members of the staff. Individuals’ vision plays a big role in the development and promotion of shared vision. Thus, if the vision in a company is enforced by particular people who assume greater power over others, this may hinder the development of a shared organizational vision. This is the fundamental reason why most of the learning organizations prefer to adopt decentralized and flat organization structures. Personal mastery: Personal mastery is the name of an individual’s commitment to the organizational learning process (Senge, 1990). An organization whose personnel are quick learners acquires an edge over the competitors whose employees are not. There are various organization specific events and happenings that

Economic Recession of United Kingdom Essay Example | Topics and Well Written Essays - 1000 words

Economic Recession of United Kingdom - Essay Example An annual decline in terms of quarterly gross domestic product (GDP) in real terms for a minimum of two consecutive quarters is known as technical recession. Nevertheless, proponents argue that this classification ignores the variables of unemployment and consumer loyalty. A broader definition tends to suggest a recession as period of falling economic output and employment. In addition, another definition also exists based on the diagrammatic model of life stages of an economy. It illustrates that recession begins when economic activity is at apex and starts decelerating and ends when economic activity hits bottom and then starts accelerating. Recession and Depression are often confused together. The prime distinguishing factor relates to quantities, Recession beyond a particular rate is termed as depression. A primary illustration was The Great Depression in America during 1929-1933 when the gross domestic product crashed down by nearly 33 percent. Recession The early 1980s witnessed the challenging economic worldwide recession, which influenced majority of the developed nations during the period of 1970s and 1980s. The repercussions of recession were evident in America and Japan quite early; nonetheless, high unemployment adversely influenced other Organisation for Economic Co-Operation and Development (OECD) countries almost until 1985 (Moy). The long-term consequences resulted in the debt crisis across America and Latin, the savings and loans catastrophe that hit America; therefore, more neoliberal economic approach was adopted during the 1980s and 1990s.

Faisal - finance Essay Example | Topics and Well Written Essays - 3250 words

Faisal - finance - Essay Example Therefore, the most appropriate financial theory that is applicable to the company is the trade-off theory. The company is trying to balance cost and benefits associated with both equity and debt. Source of capital in the company is equity, bonds, bank loans and finance leases among other financial liabilities. Each of the above sources of capital has both advantages and disadvantages. It is possible to compute value of the company by calculating weighted average cost of capital (WACC) and shareholder value. WACC refers to an average rate of interest at which a company is expected to pay all its providers of capital. The seven drivers of shareholder value are growth in sales, operating profit margins, tax rate, working capital growth, fixed capital growth, cost of capital and the period of competitive advantage. The total value as estimated by the shareholder value drivers of the company was â‚ ¬16603.7 million in 2019. When the shareholders drivers are increased by 5 percent the company value of the company will increase to â‚ ¬21,443.61 million. The disadvantages of shareholder value analysis include difficulty in computations, difficulty in implementation, failure to include social needs and possibility of making errors in calculation of shareholder value analysis. ... Capital structure According to Taylor and Sansone (2007), capital structure is determined by the composition of target collateral pool, investment flexibility, condition existing in the market for the collateral, weighted average cost debt capital and the desired ratings of the bonds in the capital structure. Capital structure can be analysed by comparing company’s debts and equity used to purchase company’s assets. The capital structure of TUI AG is defined by shareholders funds, various categories of corporate bonds, finance lease as well as bank loans. To understand the theory behind the capital structure, it is important to explain the various sources of finance and the impact on the company. Leverage ratio of TUI AG is 62 percent (figure 3: in the appendixes). This indicates that 62 percent of the total assets were funded through debt. Table 3- Sources and Amount of capital of TUI AG for 2010 Source of capital Amount in million â‚ ¬ Equity 2434.2 Bonds 3038.3 Ba nk loans 1001.5 Finance leases and other financial liabilities 472.1 Source: TUI AG 20104; CIA 2011; TUI AG (20106) Finance theory There are a number of theories that have been used to discuss capital structure in companies. There are Modigliani-Miller theorem of capital structure (capital structure irrelevance), the pecking Order Theory and Trade-off theory of Capital Structure. Modigliani-Miller theorem of capital structure states that in absence of bankruptcy, transaction costs and taxes in an efficient market and asymmetric information, the value of the company is not affected by how it is financed. This theory is not applicable at this time because there are taxes. There are tax benefits because the value of the firm is decided after tax has been deducted. Table 1;

ICT Assignment Example | Topics and Well Written Essays - 2500 words

ICT - Assignment Example The cases related to sell of software is controlled by the Copyright, Designs and Patents Act 1988. Furthermore, law of digital contracts is evolving worldwide at a significant pace. It can be stated that contract law or law in general is not static. Instead, laws are often quite dynamic that involve in responding to new occurrence and innovation (Schwanzer, 2007). Based on the above mentioned statement, this report intends to discuss whether software is to be classified as goods or services by taking into concern the notion of contract law along with its various implications. Discussion Specially mentioning, consumers engaged in buying software are not generally entitled to enjoy the same rights as in the case of purchasing tangible products. In this regard, it can be stated that software is a term, which is often used to describe the collection of instruction and data that facilitate computers to function in an effective manner. Evidently, computers are redundant without proper app lication of software. This implies that computers are unable to perform tasks in an effective manner without the installation of software. From the legal perspective, software is notable for two major reasons. The first major reason can be related with its unique characteristics, revealing that software is not similar to any conventional law. The second major reason can be noted as that despite the widespread use of software in the modern commercial arena, it does not have any distinct legal entity. Correspondingly, there is no specific manner through which legal treatment should be implemented to resolve software related disputes. Thus, this uncertainty largely raises a question, whether software should be considered or to be classified as goods or services (Green & Saidov, 2007). The lack of precision, surrounding the legal principle of software can be regarded as both commercially inconvenient and conceptually arbitrary. The buyers of software often possess the similar expectatio n of rights, while purchasing other items that are recognized under the law. However, in the recent time, the refusal to consider software as goods or services can be identified as the failure of law to protect the expectation and the interest of the buyers of software. Correspondingly, the two product related aspects i.e. â€Å"tangibility† and â€Å"movability’ determine the characteristics of software (Green & Saidov, 2007). In this similar context, â€Å"tangibility† is commonly defined as possessing a physical form or being able to be perceived by senses. It can be argued that this notion acted as the stumbling block towards considering software as goods. The relevancy of â€Å"tangibility† for adjudging software as a good can be ascertained owing to the reason that most of the legal system defines the sales of contract as a sort of agreement, which is associated with the transfer of property in goods in exchange of money, denoted as price. Conseque ntly, such transfer generally requires transfer of possession (Green & Saidov, 2007). However, in the case of possession of intangible service, both civil and common law signifies that possession of intangible is not possible and also cannot be owned. However, software can be acquired and possessed, making it tangible. Similarly, the aspect of â€Å"

Ethical Public Speaking Paper Essay Example for Free

Ethical Public Speaking Paper Essay The Speaker was Emma Watson introducing the campaign called He for She. The campaign is about political, economic, and social gender equality and not just for females, but for males as well. To often the word femanism has an underlying meaning to people as â€Å"man hating†. Emma Watson came to speak about just that and other issues that often go by unseen. The issues of the glass ceiling, equal wages for same work between genders, women involvement in poilicies and laws that will effect all womens lives, and socially having equal respect. There is no country in our world that have completely achieved gender equality that should be viewed as human rights. There has been significant improvement in many countries but many women today still do not have the opportunity to have secondary schooling. Men should be just as much involved in gender equality because there are also issues that they have to deal with. The role as a father is being valued less and less in society, and young men do not ask for help for fear they will be less of a man. Men and women should feel free to be sentative and strong. As Emma Watson said, â€Å"Gender should be on one spectrum and not two sets of opposing ideals†. Ms. Watson upheld most of the responsibilities for ethical public speaking. The topic of gender equality promotes positive values and she did not shy away or back down from what hse believed in. Multiple times in the speech she talked about in her research she has found many startling facts and presented them well. When her language was not inclusive, it was to show the conflict and differences between genders. The time in total for the speech was about 13 minutes long and was respectful to her listeners. Some things that were not fufilled was sometimes with the statistics she used whole numbers instead of percentages and did not credit her sources for any of her information. Some of the responsibilities that a listener would have to this speech would be clappinging at certain points. When the listeners clapped it communicated their agreement to Emma Watson, and she in turn, paused and waited for them to finish. While Ms. Watson was speaking, she invited all people to join her in the movement He for She and as a listener, we can choose to either join her movement or not. Emma Watson’s speech was an excellent example of an ethical speech discussing a controversial topic.

Economic Governance for Crisis Prevention

Economic Governance for Crisis Prevention 1.0 INTRODUCTION The proposed research attempts to identify the critical components of economic governance in four Asian countries namely Malaysia, South Korea, Thailand and Indonesia. The study by employing in-depth case study analysis seeks to analyze the economic governance practices in these countries and its relationship to their economic growths. The study then attempts to investigate the links between economic governance and the Asian financial crisis in 1997, and the roles the economic governance could have played in the recovery process since the above countries had somehow recovered at somewhat different speed. Based on the identified components of economic governance considered imperative for sustainable and resilient economy, the study will develop an index namely Economic Governance Quality Index capturing the score of governance parameters by the countries during the booms and slumps of their economies throughout the period under study. Finally, the components of economic governance wil l be employed in panel data analysis to empirically determine their significance towards economic growth. Its findings then will be of significance in crisis prediction and prevention methods in which the identified key governance parameters are the core ingredients. 2.0 BACKGROUND Good governance is perhaps the single most important factor in eradicating poverty and promoting development. Kofi Annan, former Secretary General of the United Nations. The concept of governance has assumed a more central focus and been given key attention not only by the officials from the United Nations Development Program, the World Bank and the International Monetary Funds, but also from the policymakers in especially developing countries, aids donors, and regional organizations of economic cooperation as well as academics fraternity. Since the beginning of 1990s, there is a strong indication of growing emphasis that good governance, together with democracy and protection of basic human rights, is indispensable for sustainable economic growth. Economic development cannot be achieved without the development of good governance, which is composed of competence and honesty, public accountability, and broader participation in discussion and decision making on central issues. In addition to traditional view of governance which is on the public governance, there is also a notable increase in the endeavors to grasp the concept of governance in a multi-d imensional perspective which includes economic governance. The relationship between governance and development is thus studied from diverse angles, especially in the vein of economic transformation, macroeconomic management and prevention of crisis as well as structural reforms. The Asian financial crisis in 1997 had somehow exposed the vulnerability of the once high-performing countries in the region, whose lack of governance practices was said as the main cause of the severe affects. 3.0 STATEMENT OF THE PROBLEM The Asian economies success was once dubbed the Asian Miracle, and a model to be emulated by other developing countries seeking higher growth. The success had introduced a growth model with emphasis on policies of setting the prices right, liberalizing the economy and the private sector as the engine of growth. When financial crisis struck the Asian countries in 1997, and looking at the devastating effects the countries in the region had experienced following the malaise, many however started to raise questions whether the quality of governance practices in these countries had somehow contributed to the crisis. Furthermore, the fact that South Korea and Malaysia had somehow recovered rapidly from the crisis compared to Indonesia and Thailand has sparked off interests on what roles good governance could have played in the recovery process. Hence, good governance has become a topic widely studied in the aftermath of the crisis. The discussions center on two main perspectives; firstly, the absence of good governance has been perceived as a MAJOR CAUSE of the crisis, and secondly, an inference is made that good governance is IMPERATIVE for durable and resilient economy. This study hence sets out to empirically identify and ascertain the governance parameters and their significance towards crisis prevention. Since the study focuses on economic governance, and to avoid constant repetition, the word governance used in this proposal should be taken in the context of economic point of view, unless explicit reference to other perspective of governance is relevant. 4.0 RESEARCH QUESTIONS This study will attempt to answer the following questions: What are the economic governance parameters presumed as crucially importance for sustainable and resilient economy? How to capture the score of economic governance practices in the East Asian countries during the period under study? How would the significance of governance parameters be empirically ascertained for the purpose of crisis prediction and prevention? 5.0 RESEARCH OBJECTIVES The study hypothesized that good governance is imperative for sustainable and resilient economy, and the absence of such would result in increased vulnerability of the economy towards declining into crisis. Therefore, the objectives of the study are: To identify the parameters of economic governance crucial for resilient and sustainable economy. To develop an index of Economic Governance Quality capturing the score of economic governance practices by the East Asian countries during the period under study. To empirically ascertain the significance of economic governance parameters towards growth via a dynamic estimation model whose findings then would be of importance for crisis prediction and prevention. 6.0 SIGNIFICANCE OF THE STUDY It would be interesting to investigate what makes good governance and how do they link to economic growth in the four selected Asian countries. Furthermore, it would be crucially important to examine, from the governance perspective, how could the countries once considered by many as the fastest growing economies in the region were severely affected by the Asian crisis in 1997. Notwithstanding that, the fact that South Korea and Malaysia had made a more swift recovery than the other affected countries, it would therefore be interesting to analyze how the governance practices in the different countries facilitated the recovery process. The findings from this study are expected to provide a significant contribution to the existing governance literatures especially from the economic perspective since it attempts to discover the critical components of economic governance that are imperative for sustainable and resilient economy. Policy makers not only from the countries under study but also from other developing countries may utilize the findings of the study to evaluate their economic governance practices and be able therefore to make necessary adjustments and required changes with the objectives of registering better growth and strengthening the economy against any possibility of future crisis. The researchers from world organizations and academic community may also be interested with the findings since the study attempts to develop a new feasible dynamic estimation model to analyze the relationship between the components of economic governance and growth, of which they could use as a basis for their future research undertaking in the similar field. In addition, the findings could also stimulate and facilitate them to search for additional approaches to counter or justify the results of this study. 7.0 LITERATURE REVIEW Good governance has become a topic widely debated by academicians and economic communities especially in the aftermath of the Asian financial crisis in 1997. The discussions in this context center on two main perspectives; first, the absence of good governance has been perceived as a major cause of the crisis, and the second prognosis is drawn by inference, namely, that good governance is imperative for durable development (Lam, 2003). Therefore, to have a better understanding of the governance, this section discusses definitions and indicators of the governance, its relationship with the economic growth, how it links to the crisis and its roles in the recovery process, and finally how could these governance factors be used for crisis prevention. 7.1 Definitions and indicators of governance Definitions and indicators of governance can be found in numerous literatures. A top-down approach is best used to understand the concept of governance, where a general or broad definition of governance will be firstly explored before moving on to a more specific definition. The World Bank continuously updates key governance indicators in its regular publication of Governance Matters, a governance study encompassing many aspects like political, social, economic, legal and moral. Meanwhile, the International Monetary Funds (IMF) has been doing a great deal of works in an effort to promote governance in the financial sector management through Financial Sector Assessment Programs (FSAPs) which include regulatory, risk management and aid management. 7.1.1 Broad definition of governance From the viewpoint of United Nations Development Program (1997), the definition of governance is the exercise of economic, political administrative authority to manage a countrys affairs at all levels. It comprises mechanisms, processes and institutions, through which citizens and groups articulate their interests, exercise their legal rights, meet their obligation and mediate their differences. Good governance is, among other things, participatory, transparent and accountable, effective and equitable, and it promotes the rule of law. It ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources (Abdellatif, 2003). In its report, Governance and Sustainable Human Development in 1997, the UNDP acknowledges the following as core characteristics of good governance, i.e. participation, rule of law, transparency, responsiveness, consensus orientation, equity, effectiveness and efficiency, accountability, and strategic vision. A report by the World Bank (2006) entitled Governance Matters V covering 213 countries and territories since 1996 until 2005, presented the latest version of the worldwide governance indicators, namely voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. Meanwhile, Inada (2003) discussed the governance in Indonesia where the word governance is translated as Tata Pemerintahan. It however has different meanings covering different agendas from political systems to corporate governance. They includes political democratization, reorganization of police and the military, curing the problems of corruption, collusion, and nepotism (KKN), justice reform system, decentralization, financial management, corporate governance, and state-owned enterprise reforms. Shimomura (2003) in his case study of governance in Thailand adopted pluralist democracy, accountability, transparency, predictability, and openness in the manner of exercising power, rule of law, effective and efficient public sector management, prevention of corruption, and prevention of excessive military expenditures as the standard definition of good governance. 7.1.2 Governance from economic perspective According to Dixit (2006), economic governance consists of the processes that support economic activities and economic transactions by protecting property rights, enforcing contracts, and taking collective actions to provide appropriate physical and organizational infrastructure. These processes are carried out within institutions, formal and informal. He described that the field of economic governance studies and compares the performance of different institutions under different conditions, the evolution of these institutions, and the transitions from one set of institution to another. Meanwhile, Huther Shah (1998), Gonzalez Mendoza (2001) and Mahani (2003) defined governance as a multi-faceted concept, encompassing all aspects of the exercise of authority through both formal and informal institutions in the management of resources. In other words, governance is: An exercise of economic power in the management of resource endowment of a country done through mechanisms, processes, and institutions through which citizens and groups can articulate their interest, exercise legal rights, meet their obligations and mediate their differences. According to Mahani (2003), indicators of economic governance are: Macroeconomic management à ¢Ã¢â€š ¬Ã¢â‚¬Å" fiscal management, level of government debt, unemployment and inflation. Investment à ¢Ã¢â€š ¬Ã¢â‚¬Å" size and trend of foreign and domestic investments, capital flows and allocation of resources. Trade regime à ¢Ã¢â€š ¬Ã¢â‚¬Å" trade orientation, export and import performance and balance of payment position. Financial sector management à ¢Ã¢â€š ¬Ã¢â‚¬Å" the banking sector and capital market. Exchange rate regime. Private sector participation à ¢Ã¢â€š ¬Ã¢â‚¬Å" privatization and corporate governance. Social development à ¢Ã¢â€š ¬Ã¢â‚¬Å" income distribution and level of poverty. Lanyi Lee (1999) studied on various aspects of economic governance, that is, the way in which economic life is governed and regulated à ¢Ã¢â€š ¬Ã¢â‚¬Å" which does not mean solely governance by the government. They first discussed the political basis of economic governance which is in their view crucial for the way in which different aspects of economic governance operate. The other aspects include the governance of macroeconomic policy making, and the interrelated issues of financial and corporate governance. From political perspective, they argued that economic governance in a market economy consists partly of direct control or indirect influence exerted by the government and of governance exercised within markets themselves on the other part; but even self-governance by markets operates within the legal, judicial and regulatory framework that has been erected and is supported by the government. The optimum role of government in this context is market-augmenting government. Furthermore, they defined macroeconomic governance as the political and administrative processes by which macroeconomic policies are formulated, implemented, and evaluated. They argued that technically the same policies can be carried out with equal effectiveness by either an autocratic or a democratic government. An autocratic government, if supported by well-trained technocrats, is likely to come up with first-class macroeconomic governance. Nevertheless, there may be factors that over time lead to deterioration in the quality of these policies in an autocratic government, as well as problems in the ability of such governments to adjust policies in response to changes in economic circumstances. The working definition of governance used for financial and corporate governance depends on the key distinction between principals and agents. In this context, they defined governance as the legal and institutional arrangements governing the behavior of an economic entity, by which owners, creditors, markets and the government compel or induce agents to behave according to the interests of the principals, or those of the broader society. In this regard, two key elements of governance are discussed. First, there is the structure of incentives and rules facing agents with regard to such matters as granting and terminating lending, bankruptcy, the rights of boards of directors, compensation structure, and the termination of employment. Second, there is the structure of the information flow from agents to principals, that is, the rules and incentives affecting accountability, transparency and disclosure of information. In both cases, the government plays a key role in setting the rules by which private actors operate. Meanwhile, Das Quintyn (2002) in their study on the role of regulatory governance in crisis prevention and crisis management have identified four main components of the regulatory governance practices, namely independence, accountability, transparency and integrity. The study explored the quality of regulatory governance based on the financial system evaluations under the Financial Sector Assessment Programs (FSAPs). Introduced in May 1999, FSAPs is a joint effort by the IMF and World Bank aims to increase the effectiveness of efforts to promote the soundness of financial systems in member countries. Supported by experts from a range of national agencies and standard-setting bodies, works under the program seek to identify the strengths and vulnerabilities of a countrys financial system; to determine how key sources of risk are being managed; to ascertain the sectors developmental and technical assistance needs; and to help prioritize policy responses (IMF the World Bank, 2005). Regulatory governance applies to those institutions that possess legal powers to regulate, supervise and/or intervene in the financial sector, which include agencies like central bank, sectoral regulators and supervisors, deposit insurance agencies, and in systemic crisis situations, restructuring agencies and asset management companies. Regulatory agencies need a fair degree of independence from the political sphere and from the supervised entities to achieve good regulatory governance. Agency independence increases the possibility of making credible policy commitments and improves transparency and stability of the output. Independence goes hand in hand with accountability. Accountability is essential for the agency to justify its action against the background of the mandate given to it. Independent agents should be accountable not only to those who delegated the responsibility à ¢Ã¢â€š ¬Ã¢â‚¬Å" the government or legislature à ¢Ã¢â€š ¬Ã¢â‚¬Å" but also to the public who fall under their functional realm. Transparency in monetary and financial policies refers to an environment in which objectives, frameworks, decisions, and their rationale, data and other information, as well as terms of accountability, are provided to the public in a comprehensive, accessible, and timely manner. Global integration of financial markets and products require greater degree of transparency in monetary and financial policies, and in regulatory regimes and processes, as a means of containing market uncertainty. Increased transparency supports accountability, protect the independence and eventually increase commitment to prudent behavior and risk control in the financial business. The final component of regulatory governance is integrity which reflects the mechanisms that ensure that staff of the agencies can pursue institutional goals of good regulatory governance without compromising them due to their own behavior, or self-interest. Independence, accountability, transparency and integrity interact and reinforce each other. Independence and accountability represent two sides of the same coin, while transparency is a vehicle for safeguarding independence and key instrument to make accountability work. Transparency also helps to establish and safeguard integrity. 7.2 Governance relationship with development and growth Economic governance is often studied through its role in the promotion of growth. This is done by setting policies, incentives and institutions that create an environment conducive to sustained stable growth through efficient management of a countrys resources. It means managing a countrys resources in a way that is accountable to, and representative of, the community; transparent, that is, open and predictable; and efficient and equitable in terms of the use, and distribution of, resources. Hence, good and effective governance requires government policies that encourage and efficiently manage investment and economic growth, support a fair and efficient public sector, strengthen the rule of law, protect human rights, and foster public participation and representation in decision making. Among the many studies that have examined the economic governance and growth nexus is such as that of Barro (1997). He studied the concept of growth based on the conditional convergence hypothesis which centers on the speed of economic growth in a country towards its steady-state level. He had empirically identified that more schooling, better health, lower fertility rate, less government consumption relative to GDP, greater adherence to uncorrupted rule of law, improvements in terms of trade changes, and lower inflation all go hand-in-hand with faster economic growth. Furthermore, he also explored on the interplay between economic and political development, and found that there is nonlinear relationship between democracy and growth. According to his findings, in countries with low levels of political freedom, a marginal increase in political freedom is associated with an acceleration in growth. However, at high levels of political freedom, a marginal increase in political freedom is associated with a slowing in growth. Huther Shah (1998) also studied the relationship between governance and growth and found that countries that practiced good governance have also enjoyed high growth. They developed a governance index featuring four sub-indices, i.e. citizen participation index (CP), government orientation index (GO), social development index (SD) and economic management index (EM) and each of the sub-indices has several components. For the Economic Management index, its components are outward orientation, central bank interdependence, and debt-to-GDP ratio which were used to assess trade policy, monetary policy and fiscal policy respectively. Gonzalez Mendoza (2001) argued that Southeast Asia provides ample evidence that there is a remarkable connection between administrative guidance and economic upturn. They compared the average growth rate of national output during the last decade against the quality of country governance and found that the high-performing economies à ¢Ã¢â€š ¬Ã¢â‚¬Å" Singapore and Malaysia à ¢Ã¢â€š ¬Ã¢â‚¬Å" have the edge in public management. Those left behind, such as the Philippines and Indonesia, have poor management structures. A study by Inada (2003) on Indonesia governance showed the importance of political stability and effective economic management as key elements for sustainable economic development among many governance factors. Bordo (2007) provides a good qualitative analysis on the possible determinant of emerging market crises from the perspective of balance sheet approach, which then put at center stage the importance of financial development. Though he never mention the word governance itself, he outlines the deep institutional determinants of financial development à ¢Ã¢â€š ¬Ã¢â‚¬Å" including the governance parameters such as the rule of law, protection of property rights, political stability, and representative democracy à ¢Ã¢â€š ¬Ã¢â‚¬Å" towards achieving financial stability. He further conjectures about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability. 7.3 Governance link to crisis and roles in recovery process Lanyi Lee (1999) presented a strong case that governance issues were important in the East Asian crisis. They hypothesized that transparency and accountability in macroeconomic policymaking, in the operation of the financial system, and in corporate governance do serve to lessen a countrys vulnerability to financial crises and to strengthen the ability to deal with crises when they occur. They also hypothesized that a democratic political system, in which leaders are held accountable to their electorate by both direct election of the executive and an elected legislature à ¢Ã¢â€š ¬Ã¢â‚¬Å" as well as by an independent judiciary and a free press and civil society à ¢Ã¢â€š ¬Ã¢â‚¬Å" is less likely to collapse in the face of economic and financial difficulties than is a country run by an autocratic government, which imposes severe restraints on the public expression of opinion and dissemination of information. On the political basis of economic governance, they have suggested a hypothesis regarding the kind of political regimes likely to produce an effective, growth-enhancing, market-augmenting government. It is the type of political regime that is especially effective in the early stages of economic development may be less suited to fostering the creation of a full-fledged, sophisticated market economy at a later stage. They argued that there certainly seems to be some indications of this in the Asian experience, where authoritarian regimes fostered rapid growth when these economies were at relatively low income levels, but seems to be evolving toward more democratic models to deal with demands for greater market autonomy. They however suggested that even if a case can be made for the desirability of democratization as a market economy becomes more sophisticated, the varied historical examples warrant the need to find out more about the conditions under which either an autocratic or a democratic government can be market-augmenting, or not. They further highlighted that it would be useful to find historical examples of, and develop plausible scenarios for, the transition from discretionary (an autocratic government) to arms-length (a democratic government) approaches to state economic governance, and to define the most effective ways in which the international community might assist with this transition. Furthermore, they believed that empirical work on macroeconomic governance would need to tap into the huge literature on macroeconomic policies and their effect, and link existing work with variables that reveal the quality of governance. Unfortunately, such variables are hard to quantify; but perhaps a classification of regimes together with a classification of the way macroeconomic policy is organized, could yield ways of exploring the relationships between the political and administrative variables, on the one hand, and the more familiar economic variables on the other. In other words, it would be interesting to look how the macroeconomic policies are formulated, implemented and evaluated through the governance perspective, to understand whether adherence to, or lack of, the governance practices could influence the outcome of the macroeconomic policies, as well as to determine conditions that would lead to good quality policies which would eventually identify the appropriate type of market-augmenting government as the market economy progresses. Besides, they also made preliminary attempts to trace the relationship between empirical indicators of financial and corporate governance with some governance variables that have been developed by others. They however suggested that one needs to look more carefully, perhaps through case studies, at the realities of financial and corporate governance in particular cases and the linkage between indicators of these types of financial and corporate governance with the more carefully articulated classification of political regimes. Specifically with regard to the adjustment of most severely affected countries to the Asian crisis, they suggested that it would be interesting to examine the reasons why recovery in Korea has been more rapid than in the Indonesia and Thailand. Similarly, it would also be interesting to investigate Malaysias speedy recovery from the crisis even though the country did not subscribe to the IMF recovery prescriptions. Mahani (2003) highlighted that after the rapid recovery of the Asian economies in 1999, discussion of the causes of the crisis has been centered on the quality of economic governance in these economies. The East Asian economies success was at one time a model to be emulated by other developing countries, but after the 1997 financial turbulence, doubts were raised about the quality of economic governance in these Asian countries. Questions were raised whether the governance in these economies contributed to the crisis when countries like Indonesia, Malaysia, Thailand and South Korea experienced sharp economic contraction during the crisis. She further highlighted that questions on the quality of governance centered on the issue whether or not the same economic governance that produced high growth also weakens the economies and makes them vulnerable to external shocks, whether the economic governance fails to avoid market failures in pursuing its high growth strategy, whether the conditions for good governance always the same irrespective of the stage of economic development, and whether the crony capitalism a result of the governance failure since it was among the widely acknowledged factors contributing to the crisis. To know whether economic governance had made the economy vulnerable to a crisis, it is crucially important to examine the causes of the crisis and to link them with the economic weak points. Was the crisis due to the imprudent economic management or due to external factors? Although external factors have been recognized as the key cause for the crisis, domestic shortcomings were also responsible for deepening or aggravating the impact of the crisis. Furthermore, Malaysias own crisis remedies and the rejection of the IMFs standard crisis solutions open the debate on what is good economic governance. She argued that the 1997 Asian experience showed the economic governance framework by the IMF and the World Bank has some weaknesses, namely unfettered short term capital flows, lack of long-term and broader macroeconomic objectives when growth is driven by the private sector, and minimal attention given to socioeconomic issues such as income distribution. The rapid recovery by Malaysia and Korea, which adopted different strategies shows that there are alternative ways to respond to a crisis, implying that there is also no single definition of economic governance. Policy flexibility arising from good economic governance before the crisis made it possible to Malaysia to take response measures specially tailored to its need and situation, and rejecting one-size-fits-all prescriptions by the IMF. 7.4 Governance roles in crisis prevention The rapid pace and spread of globalization pose stiff challenges to economic governance as new criteria and developments may impose a heavier governance burden on the government and economy. One of the biggest challenges is the increasingly volatile international flow of capital that makes economic governance much more difficult as economic fundamentals are not the only factors that determine performance. Global integration also limits the choice of measures that are available to a country in making its response. Yet good governance is essential for sustained economic growth. The challenge is to determine what good governance consists of under these changing conditions. Ever better economic management is called for, to preserve economic resilience and prevent external shocks from turning into crises. Thus, a close and critical evaluation of the new economic governance parameters and institutions is essential. 8.0 OVERVIEW ON THE STUDY OF GOVERNANCE 8.1 Development of the study of governance Inada (2003) outlined the development in the study of governance over the last 10 years which can be categorized into several types: Identifying factors of governance: what factors are the governance factors that affect the performance of the economies of developing countries? Example à ¢Ã¢â€š ¬Ã¢â‚¬Å" World Bank (1992) documented such factors as accountability, transparency, predictable legal framework, efficiency of the public sector, etc. Categori Economic Governance for Crisis Prevention Economic Governance for Crisis Prevention 1.0 INTRODUCTION The proposed research attempts to identify the critical components of economic governance in four Asian countries namely Malaysia, South Korea, Thailand and Indonesia. The study by employing in-depth case study analysis seeks to analyze the economic governance practices in these countries and its relationship to their economic growths. The study then attempts to investigate the links between economic governance and the Asian financial crisis in 1997, and the roles the economic governance could have played in the recovery process since the above countries had somehow recovered at somewhat different speed. Based on the identified components of economic governance considered imperative for sustainable and resilient economy, the study will develop an index namely Economic Governance Quality Index capturing the score of governance parameters by the countries during the booms and slumps of their economies throughout the period under study. Finally, the components of economic governance wil l be employed in panel data analysis to empirically determine their significance towards economic growth. Its findings then will be of significance in crisis prediction and prevention methods in which the identified key governance parameters are the core ingredients. 2.0 BACKGROUND Good governance is perhaps the single most important factor in eradicating poverty and promoting development. Kofi Annan, former Secretary General of the United Nations. The concept of governance has assumed a more central focus and been given key attention not only by the officials from the United Nations Development Program, the World Bank and the International Monetary Funds, but also from the policymakers in especially developing countries, aids donors, and regional organizations of economic cooperation as well as academics fraternity. Since the beginning of 1990s, there is a strong indication of growing emphasis that good governance, together with democracy and protection of basic human rights, is indispensable for sustainable economic growth. Economic development cannot be achieved without the development of good governance, which is composed of competence and honesty, public accountability, and broader participation in discussion and decision making on central issues. In addition to traditional view of governance which is on the public governance, there is also a notable increase in the endeavors to grasp the concept of governance in a multi-d imensional perspective which includes economic governance. The relationship between governance and development is thus studied from diverse angles, especially in the vein of economic transformation, macroeconomic management and prevention of crisis as well as structural reforms. The Asian financial crisis in 1997 had somehow exposed the vulnerability of the once high-performing countries in the region, whose lack of governance practices was said as the main cause of the severe affects. 3.0 STATEMENT OF THE PROBLEM The Asian economies success was once dubbed the Asian Miracle, and a model to be emulated by other developing countries seeking higher growth. The success had introduced a growth model with emphasis on policies of setting the prices right, liberalizing the economy and the private sector as the engine of growth. When financial crisis struck the Asian countries in 1997, and looking at the devastating effects the countries in the region had experienced following the malaise, many however started to raise questions whether the quality of governance practices in these countries had somehow contributed to the crisis. Furthermore, the fact that South Korea and Malaysia had somehow recovered rapidly from the crisis compared to Indonesia and Thailand has sparked off interests on what roles good governance could have played in the recovery process. Hence, good governance has become a topic widely studied in the aftermath of the crisis. The discussions center on two main perspectives; firstly, the absence of good governance has been perceived as a MAJOR CAUSE of the crisis, and secondly, an inference is made that good governance is IMPERATIVE for durable and resilient economy. This study hence sets out to empirically identify and ascertain the governance parameters and their significance towards crisis prevention. Since the study focuses on economic governance, and to avoid constant repetition, the word governance used in this proposal should be taken in the context of economic point of view, unless explicit reference to other perspective of governance is relevant. 4.0 RESEARCH QUESTIONS This study will attempt to answer the following questions: What are the economic governance parameters presumed as crucially importance for sustainable and resilient economy? How to capture the score of economic governance practices in the East Asian countries during the period under study? How would the significance of governance parameters be empirically ascertained for the purpose of crisis prediction and prevention? 5.0 RESEARCH OBJECTIVES The study hypothesized that good governance is imperative for sustainable and resilient economy, and the absence of such would result in increased vulnerability of the economy towards declining into crisis. Therefore, the objectives of the study are: To identify the parameters of economic governance crucial for resilient and sustainable economy. To develop an index of Economic Governance Quality capturing the score of economic governance practices by the East Asian countries during the period under study. To empirically ascertain the significance of economic governance parameters towards growth via a dynamic estimation model whose findings then would be of importance for crisis prediction and prevention. 6.0 SIGNIFICANCE OF THE STUDY It would be interesting to investigate what makes good governance and how do they link to economic growth in the four selected Asian countries. Furthermore, it would be crucially important to examine, from the governance perspective, how could the countries once considered by many as the fastest growing economies in the region were severely affected by the Asian crisis in 1997. Notwithstanding that, the fact that South Korea and Malaysia had made a more swift recovery than the other affected countries, it would therefore be interesting to analyze how the governance practices in the different countries facilitated the recovery process. The findings from this study are expected to provide a significant contribution to the existing governance literatures especially from the economic perspective since it attempts to discover the critical components of economic governance that are imperative for sustainable and resilient economy. Policy makers not only from the countries under study but also from other developing countries may utilize the findings of the study to evaluate their economic governance practices and be able therefore to make necessary adjustments and required changes with the objectives of registering better growth and strengthening the economy against any possibility of future crisis. The researchers from world organizations and academic community may also be interested with the findings since the study attempts to develop a new feasible dynamic estimation model to analyze the relationship between the components of economic governance and growth, of which they could use as a basis for their future research undertaking in the similar field. In addition, the findings could also stimulate and facilitate them to search for additional approaches to counter or justify the results of this study. 7.0 LITERATURE REVIEW Good governance has become a topic widely debated by academicians and economic communities especially in the aftermath of the Asian financial crisis in 1997. The discussions in this context center on two main perspectives; first, the absence of good governance has been perceived as a major cause of the crisis, and the second prognosis is drawn by inference, namely, that good governance is imperative for durable development (Lam, 2003). Therefore, to have a better understanding of the governance, this section discusses definitions and indicators of the governance, its relationship with the economic growth, how it links to the crisis and its roles in the recovery process, and finally how could these governance factors be used for crisis prevention. 7.1 Definitions and indicators of governance Definitions and indicators of governance can be found in numerous literatures. A top-down approach is best used to understand the concept of governance, where a general or broad definition of governance will be firstly explored before moving on to a more specific definition. The World Bank continuously updates key governance indicators in its regular publication of Governance Matters, a governance study encompassing many aspects like political, social, economic, legal and moral. Meanwhile, the International Monetary Funds (IMF) has been doing a great deal of works in an effort to promote governance in the financial sector management through Financial Sector Assessment Programs (FSAPs) which include regulatory, risk management and aid management. 7.1.1 Broad definition of governance From the viewpoint of United Nations Development Program (1997), the definition of governance is the exercise of economic, political administrative authority to manage a countrys affairs at all levels. It comprises mechanisms, processes and institutions, through which citizens and groups articulate their interests, exercise their legal rights, meet their obligation and mediate their differences. Good governance is, among other things, participatory, transparent and accountable, effective and equitable, and it promotes the rule of law. It ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources (Abdellatif, 2003). In its report, Governance and Sustainable Human Development in 1997, the UNDP acknowledges the following as core characteristics of good governance, i.e. participation, rule of law, transparency, responsiveness, consensus orientation, equity, effectiveness and efficiency, accountability, and strategic vision. A report by the World Bank (2006) entitled Governance Matters V covering 213 countries and territories since 1996 until 2005, presented the latest version of the worldwide governance indicators, namely voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. Meanwhile, Inada (2003) discussed the governance in Indonesia where the word governance is translated as Tata Pemerintahan. It however has different meanings covering different agendas from political systems to corporate governance. They includes political democratization, reorganization of police and the military, curing the problems of corruption, collusion, and nepotism (KKN), justice reform system, decentralization, financial management, corporate governance, and state-owned enterprise reforms. Shimomura (2003) in his case study of governance in Thailand adopted pluralist democracy, accountability, transparency, predictability, and openness in the manner of exercising power, rule of law, effective and efficient public sector management, prevention of corruption, and prevention of excessive military expenditures as the standard definition of good governance. 7.1.2 Governance from economic perspective According to Dixit (2006), economic governance consists of the processes that support economic activities and economic transactions by protecting property rights, enforcing contracts, and taking collective actions to provide appropriate physical and organizational infrastructure. These processes are carried out within institutions, formal and informal. He described that the field of economic governance studies and compares the performance of different institutions under different conditions, the evolution of these institutions, and the transitions from one set of institution to another. Meanwhile, Huther Shah (1998), Gonzalez Mendoza (2001) and Mahani (2003) defined governance as a multi-faceted concept, encompassing all aspects of the exercise of authority through both formal and informal institutions in the management of resources. In other words, governance is: An exercise of economic power in the management of resource endowment of a country done through mechanisms, processes, and institutions through which citizens and groups can articulate their interest, exercise legal rights, meet their obligations and mediate their differences. According to Mahani (2003), indicators of economic governance are: Macroeconomic management à ¢Ã¢â€š ¬Ã¢â‚¬Å" fiscal management, level of government debt, unemployment and inflation. Investment à ¢Ã¢â€š ¬Ã¢â‚¬Å" size and trend of foreign and domestic investments, capital flows and allocation of resources. Trade regime à ¢Ã¢â€š ¬Ã¢â‚¬Å" trade orientation, export and import performance and balance of payment position. Financial sector management à ¢Ã¢â€š ¬Ã¢â‚¬Å" the banking sector and capital market. Exchange rate regime. Private sector participation à ¢Ã¢â€š ¬Ã¢â‚¬Å" privatization and corporate governance. Social development à ¢Ã¢â€š ¬Ã¢â‚¬Å" income distribution and level of poverty. Lanyi Lee (1999) studied on various aspects of economic governance, that is, the way in which economic life is governed and regulated à ¢Ã¢â€š ¬Ã¢â‚¬Å" which does not mean solely governance by the government. They first discussed the political basis of economic governance which is in their view crucial for the way in which different aspects of economic governance operate. The other aspects include the governance of macroeconomic policy making, and the interrelated issues of financial and corporate governance. From political perspective, they argued that economic governance in a market economy consists partly of direct control or indirect influence exerted by the government and of governance exercised within markets themselves on the other part; but even self-governance by markets operates within the legal, judicial and regulatory framework that has been erected and is supported by the government. The optimum role of government in this context is market-augmenting government. Furthermore, they defined macroeconomic governance as the political and administrative processes by which macroeconomic policies are formulated, implemented, and evaluated. They argued that technically the same policies can be carried out with equal effectiveness by either an autocratic or a democratic government. An autocratic government, if supported by well-trained technocrats, is likely to come up with first-class macroeconomic governance. Nevertheless, there may be factors that over time lead to deterioration in the quality of these policies in an autocratic government, as well as problems in the ability of such governments to adjust policies in response to changes in economic circumstances. The working definition of governance used for financial and corporate governance depends on the key distinction between principals and agents. In this context, they defined governance as the legal and institutional arrangements governing the behavior of an economic entity, by which owners, creditors, markets and the government compel or induce agents to behave according to the interests of the principals, or those of the broader society. In this regard, two key elements of governance are discussed. First, there is the structure of incentives and rules facing agents with regard to such matters as granting and terminating lending, bankruptcy, the rights of boards of directors, compensation structure, and the termination of employment. Second, there is the structure of the information flow from agents to principals, that is, the rules and incentives affecting accountability, transparency and disclosure of information. In both cases, the government plays a key role in setting the rules by which private actors operate. Meanwhile, Das Quintyn (2002) in their study on the role of regulatory governance in crisis prevention and crisis management have identified four main components of the regulatory governance practices, namely independence, accountability, transparency and integrity. The study explored the quality of regulatory governance based on the financial system evaluations under the Financial Sector Assessment Programs (FSAPs). Introduced in May 1999, FSAPs is a joint effort by the IMF and World Bank aims to increase the effectiveness of efforts to promote the soundness of financial systems in member countries. Supported by experts from a range of national agencies and standard-setting bodies, works under the program seek to identify the strengths and vulnerabilities of a countrys financial system; to determine how key sources of risk are being managed; to ascertain the sectors developmental and technical assistance needs; and to help prioritize policy responses (IMF the World Bank, 2005). Regulatory governance applies to those institutions that possess legal powers to regulate, supervise and/or intervene in the financial sector, which include agencies like central bank, sectoral regulators and supervisors, deposit insurance agencies, and in systemic crisis situations, restructuring agencies and asset management companies. Regulatory agencies need a fair degree of independence from the political sphere and from the supervised entities to achieve good regulatory governance. Agency independence increases the possibility of making credible policy commitments and improves transparency and stability of the output. Independence goes hand in hand with accountability. Accountability is essential for the agency to justify its action against the background of the mandate given to it. Independent agents should be accountable not only to those who delegated the responsibility à ¢Ã¢â€š ¬Ã¢â‚¬Å" the government or legislature à ¢Ã¢â€š ¬Ã¢â‚¬Å" but also to the public who fall under their functional realm. Transparency in monetary and financial policies refers to an environment in which objectives, frameworks, decisions, and their rationale, data and other information, as well as terms of accountability, are provided to the public in a comprehensive, accessible, and timely manner. Global integration of financial markets and products require greater degree of transparency in monetary and financial policies, and in regulatory regimes and processes, as a means of containing market uncertainty. Increased transparency supports accountability, protect the independence and eventually increase commitment to prudent behavior and risk control in the financial business. The final component of regulatory governance is integrity which reflects the mechanisms that ensure that staff of the agencies can pursue institutional goals of good regulatory governance without compromising them due to their own behavior, or self-interest. Independence, accountability, transparency and integrity interact and reinforce each other. Independence and accountability represent two sides of the same coin, while transparency is a vehicle for safeguarding independence and key instrument to make accountability work. Transparency also helps to establish and safeguard integrity. 7.2 Governance relationship with development and growth Economic governance is often studied through its role in the promotion of growth. This is done by setting policies, incentives and institutions that create an environment conducive to sustained stable growth through efficient management of a countrys resources. It means managing a countrys resources in a way that is accountable to, and representative of, the community; transparent, that is, open and predictable; and efficient and equitable in terms of the use, and distribution of, resources. Hence, good and effective governance requires government policies that encourage and efficiently manage investment and economic growth, support a fair and efficient public sector, strengthen the rule of law, protect human rights, and foster public participation and representation in decision making. Among the many studies that have examined the economic governance and growth nexus is such as that of Barro (1997). He studied the concept of growth based on the conditional convergence hypothesis which centers on the speed of economic growth in a country towards its steady-state level. He had empirically identified that more schooling, better health, lower fertility rate, less government consumption relative to GDP, greater adherence to uncorrupted rule of law, improvements in terms of trade changes, and lower inflation all go hand-in-hand with faster economic growth. Furthermore, he also explored on the interplay between economic and political development, and found that there is nonlinear relationship between democracy and growth. According to his findings, in countries with low levels of political freedom, a marginal increase in political freedom is associated with an acceleration in growth. However, at high levels of political freedom, a marginal increase in political freedom is associated with a slowing in growth. Huther Shah (1998) also studied the relationship between governance and growth and found that countries that practiced good governance have also enjoyed high growth. They developed a governance index featuring four sub-indices, i.e. citizen participation index (CP), government orientation index (GO), social development index (SD) and economic management index (EM) and each of the sub-indices has several components. For the Economic Management index, its components are outward orientation, central bank interdependence, and debt-to-GDP ratio which were used to assess trade policy, monetary policy and fiscal policy respectively. Gonzalez Mendoza (2001) argued that Southeast Asia provides ample evidence that there is a remarkable connection between administrative guidance and economic upturn. They compared the average growth rate of national output during the last decade against the quality of country governance and found that the high-performing economies à ¢Ã¢â€š ¬Ã¢â‚¬Å" Singapore and Malaysia à ¢Ã¢â€š ¬Ã¢â‚¬Å" have the edge in public management. Those left behind, such as the Philippines and Indonesia, have poor management structures. A study by Inada (2003) on Indonesia governance showed the importance of political stability and effective economic management as key elements for sustainable economic development among many governance factors. Bordo (2007) provides a good qualitative analysis on the possible determinant of emerging market crises from the perspective of balance sheet approach, which then put at center stage the importance of financial development. Though he never mention the word governance itself, he outlines the deep institutional determinants of financial development à ¢Ã¢â€š ¬Ã¢â‚¬Å" including the governance parameters such as the rule of law, protection of property rights, political stability, and representative democracy à ¢Ã¢â€š ¬Ã¢â‚¬Å" towards achieving financial stability. He further conjectures about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability. 7.3 Governance link to crisis and roles in recovery process Lanyi Lee (1999) presented a strong case that governance issues were important in the East Asian crisis. They hypothesized that transparency and accountability in macroeconomic policymaking, in the operation of the financial system, and in corporate governance do serve to lessen a countrys vulnerability to financial crises and to strengthen the ability to deal with crises when they occur. They also hypothesized that a democratic political system, in which leaders are held accountable to their electorate by both direct election of the executive and an elected legislature à ¢Ã¢â€š ¬Ã¢â‚¬Å" as well as by an independent judiciary and a free press and civil society à ¢Ã¢â€š ¬Ã¢â‚¬Å" is less likely to collapse in the face of economic and financial difficulties than is a country run by an autocratic government, which imposes severe restraints on the public expression of opinion and dissemination of information. On the political basis of economic governance, they have suggested a hypothesis regarding the kind of political regimes likely to produce an effective, growth-enhancing, market-augmenting government. It is the type of political regime that is especially effective in the early stages of economic development may be less suited to fostering the creation of a full-fledged, sophisticated market economy at a later stage. They argued that there certainly seems to be some indications of this in the Asian experience, where authoritarian regimes fostered rapid growth when these economies were at relatively low income levels, but seems to be evolving toward more democratic models to deal with demands for greater market autonomy. They however suggested that even if a case can be made for the desirability of democratization as a market economy becomes more sophisticated, the varied historical examples warrant the need to find out more about the conditions under which either an autocratic or a democratic government can be market-augmenting, or not. They further highlighted that it would be useful to find historical examples of, and develop plausible scenarios for, the transition from discretionary (an autocratic government) to arms-length (a democratic government) approaches to state economic governance, and to define the most effective ways in which the international community might assist with this transition. Furthermore, they believed that empirical work on macroeconomic governance would need to tap into the huge literature on macroeconomic policies and their effect, and link existing work with variables that reveal the quality of governance. Unfortunately, such variables are hard to quantify; but perhaps a classification of regimes together with a classification of the way macroeconomic policy is organized, could yield ways of exploring the relationships between the political and administrative variables, on the one hand, and the more familiar economic variables on the other. In other words, it would be interesting to look how the macroeconomic policies are formulated, implemented and evaluated through the governance perspective, to understand whether adherence to, or lack of, the governance practices could influence the outcome of the macroeconomic policies, as well as to determine conditions that would lead to good quality policies which would eventually identify the appropriate type of market-augmenting government as the market economy progresses. Besides, they also made preliminary attempts to trace the relationship between empirical indicators of financial and corporate governance with some governance variables that have been developed by others. They however suggested that one needs to look more carefully, perhaps through case studies, at the realities of financial and corporate governance in particular cases and the linkage between indicators of these types of financial and corporate governance with the more carefully articulated classification of political regimes. Specifically with regard to the adjustment of most severely affected countries to the Asian crisis, they suggested that it would be interesting to examine the reasons why recovery in Korea has been more rapid than in the Indonesia and Thailand. Similarly, it would also be interesting to investigate Malaysias speedy recovery from the crisis even though the country did not subscribe to the IMF recovery prescriptions. Mahani (2003) highlighted that after the rapid recovery of the Asian economies in 1999, discussion of the causes of the crisis has been centered on the quality of economic governance in these economies. The East Asian economies success was at one time a model to be emulated by other developing countries, but after the 1997 financial turbulence, doubts were raised about the quality of economic governance in these Asian countries. Questions were raised whether the governance in these economies contributed to the crisis when countries like Indonesia, Malaysia, Thailand and South Korea experienced sharp economic contraction during the crisis. She further highlighted that questions on the quality of governance centered on the issue whether or not the same economic governance that produced high growth also weakens the economies and makes them vulnerable to external shocks, whether the economic governance fails to avoid market failures in pursuing its high growth strategy, whether the conditions for good governance always the same irrespective of the stage of economic development, and whether the crony capitalism a result of the governance failure since it was among the widely acknowledged factors contributing to the crisis. To know whether economic governance had made the economy vulnerable to a crisis, it is crucially important to examine the causes of the crisis and to link them with the economic weak points. Was the crisis due to the imprudent economic management or due to external factors? Although external factors have been recognized as the key cause for the crisis, domestic shortcomings were also responsible for deepening or aggravating the impact of the crisis. Furthermore, Malaysias own crisis remedies and the rejection of the IMFs standard crisis solutions open the debate on what is good economic governance. She argued that the 1997 Asian experience showed the economic governance framework by the IMF and the World Bank has some weaknesses, namely unfettered short term capital flows, lack of long-term and broader macroeconomic objectives when growth is driven by the private sector, and minimal attention given to socioeconomic issues such as income distribution. The rapid recovery by Malaysia and Korea, which adopted different strategies shows that there are alternative ways to respond to a crisis, implying that there is also no single definition of economic governance. Policy flexibility arising from good economic governance before the crisis made it possible to Malaysia to take response measures specially tailored to its need and situation, and rejecting one-size-fits-all prescriptions by the IMF. 7.4 Governance roles in crisis prevention The rapid pace and spread of globalization pose stiff challenges to economic governance as new criteria and developments may impose a heavier governance burden on the government and economy. One of the biggest challenges is the increasingly volatile international flow of capital that makes economic governance much more difficult as economic fundamentals are not the only factors that determine performance. Global integration also limits the choice of measures that are available to a country in making its response. Yet good governance is essential for sustained economic growth. The challenge is to determine what good governance consists of under these changing conditions. Ever better economic management is called for, to preserve economic resilience and prevent external shocks from turning into crises. Thus, a close and critical evaluation of the new economic governance parameters and institutions is essential. 8.0 OVERVIEW ON THE STUDY OF GOVERNANCE 8.1 Development of the study of governance Inada (2003) outlined the development in the study of governance over the last 10 years which can be categorized into several types: Identifying factors of governance: what factors are the governance factors that affect the performance of the economies of developing countries? Example à ¢Ã¢â€š ¬Ã¢â‚¬Å" World Bank (1992) documented such factors as accountability, transparency, predictable legal framework, efficiency of the public sector, etc. Categori