Biography of Carl Sagan, Astronomer of the People

Account of Carl Sagan, Astronomer of the People Cosmologist and creator Carl Sagan (November 9, 1934 - December 20, 1996) burst into open awareness as the star and maker of the TV arrangement Cosmos. He was a productive specialist in astronomyâ as well as a science popularizer who tried to teach general society about the universe and the estimation of the logical method.â Early Years Conceived in Brooklyn, New York, Sagan grew up with a solid enthusiasm for the planets, stars, and sci-fi. His dad, Samuel Sagan, moved based on what is presently Ukraine and filled in as a piece of clothing specialist. His mom, Rachel Molly Gruber, supported his incredible enthusiasm for science. Sagan regularly refered to his folks impact on his profession, saying that his dad affected his creative mind and his mom encouraged him to go to the library to discover books about stars. Proficient Life Subsequent to moving on from secondary school in 1951, the youthful Sagan headed the University of Chicago for a degree in material science. At the University of Chicago, he partook in science research about the structure squares of life. He proceeded to procure a Ph.D. in space science and astronomy in 1960. Sagan left Illinois and started working at University of California - Berkeley, where he worked with a group toâ build an instrument for a NASA strategic Mars called Mariner 2. During the 1960s, Sagan moved to Harvard University, where he worked at the Smithsonian Astrophysical Observatory. There, he concentrated his examination all the more intently on planetary science, with a specific enthusiasm for Venus and Jupiter. Sagan later moved again to Cornell University, where he filled in as executive of the Laboratory for Planetary Studies. Sagans work with NASA proceeded. He was a main guide for the Viking missions and took a shot at the arrival site choice. He likewise was instrumental in an undertaking to put messages from mankind on board the Pioneer and Voyager tests to the external nearby planetary group. In 1976, he becameâ the David Duncan Professor of Astronomy and Space Sciences, a seat he held until his demise. Examination Interests and Activism All through his profession, Carl Sagan remained profoundly inspired by the chance of life on other worlds.â Throughout his work with NASA and the U.S. space program, he enthusiastically advanced the thoughts behind the quest for extraterrestrial knowledge, conversationally known as SETI. Sagan worked onâ several community oriented examinations, which at last exhibited that, when presented to bright light, blends of amino acids and nucleic acids could be delivered inâ conditions much like those of early Earth. Carl Sagan led early examination on environmental change. One of his examinations indicated that the high temperatures on the outside of Venus could be ascribed to a runaway nursery impact. All through his vocation, Sagan proceeded with his logical examination, at last distributing in excess of 600 papers. All through his work, he upheld for logical doubt and sound thinking, advancing wariness as an option in contrast to conviction frameworks of legislative issues and religion. Sagan was alsoâ an hostile to war lobbyist. Heâ studied the likely effect of atomic war and upheld for atomic demilitarization. Science as a Way of Thinking As an enthusiastic cynic and skeptic, Sagan advanced the logical strategy as an apparatus for better understanding the world. In his book Demon-Haunted World, he spread out methodologies for basic reasoning, deconstructing contentions, and testing claims. Sagan distributed various other science books focused on a lay crowd, including The Dragons of Eden: Speculations on the Evolution of Human Intelligence, and Brocas Brain: Reflections on the Romance of Science.â â â In 1980, Carl Sagans: Cosmos: A Personal Voyage debuted on television. The debut transformed Sagan into a notable science popularizer. The show was focused on a general crowd, with eachâ episodeâ focusing on an alternate part of logical revelation or exploration. Cosmos received two Emmy Awards.â Later Years and Legacy During the 1990s, Carl Sagan was determined to have a blood condition called myelodysplasia. He got three bone marrow transplants and progressing treatment, proceeding to chip away at his exploration and composing even as the condition declined. At age 62, Sagan kicked the bucket of pneumonia related with his condition. Sagan left a dependable heritage in the fields of cosmology and science instruction. A few honors for science correspondence are named after Carl Sagan, included two given by the Planetary Society. The Mars Pathfinder area on Mars is named the Carl Sagan Memorial Station.â Carl Sagan Fast Facts Complete Name: Carl Edward SaganKnown For: Astronomer, writer, and science popularizer Born: November 9, 1934 in Brooklyn, New York, USADied: December 20, 1996 in Seattle, Washington, USAEducation: University of Chicago (B.A., B.S., M.S., Ph.D.)Selected Works: Cosmos: A Personal Journey, Demon-Haunted World, The Dragons of Eden, Brocas BrainKey Accomplishments: NASA Medal of Honor (1977), Emmy Award for Outstanding Personal Achievement (1981), created 600 logical papers and many mainstream science articles and books.Spouse Name: Lynn Margulis (1957-1965), Linda Salzman (1968-1981), Ann Druyan (1981-1996)Childrens Names: Jeremy, Dorion, Nick, Alexandra, Samuel Famous Quote: Extraordinary cases require uncommon proof. Sources and Further Reading Kragh, Helge. â€Å"Carl Sagan.† Encyclopã ¦dia Britannica, Encyclopã ¦dia Britannica, Inc., 27 Oct. 2017, www.britannica.com/life story/Carl-Sagan. Head, Tom. Discussions with Carl Sagan (Literary Conversations), University Press of MIssissippi, 2006. Terzian, Yervant, and Elizabeth Bilson. Carl Sagans Universe. Cambridge University Press, 2009.

Family firm going public Essay Example | Topics and Well Written Essays - 2250 words

Family firm opening up to the world - Essay Example The privately-owned company is prospering in many created and creating nations all through the world. It is a specific variety of business that can be all the more plainly comprehended by remembering the possibility of two interconnecting yet separate frameworks. The family and the business are two frameworks in that the objectives, needs and undertakings of each are not indistinguishable. In light of the questionable idea of the interconnection, issues can and do emerge. Techniques for sifting through the jobs and rules for the two frameworks should be deliberately evolved and comprehended (Bogod and Leach, 1999). The benefits of maintaining a privately-owned company merit emphasizing. They bear shut likenesses to those voiced by business people by and large †a sentiment of opportunity, an arrangement of salary and capital, a feeling of inventiveness. Privately-run companies can be a fantastic method to give a living and to relatives to feel all things considered compensated fo r their own penances. Under the best of conditions, the family firm can give a premise to significant and suffering family associations. Despite the fact that there are numerous focal points, the idea of privately-run company isn't liberated from drawbacks. One such hindrance emerges when the acquirement of capital comes into picture. Few, family firms arrive at this stage, which comes about when the business needs extra cash-flow to proceed with its tasks (Sitorus, 2001). Capital is secured by opening up to the world, generally simultaneous with the presentation of expert management.... alluded to as the essential market and the resulting exchanging as the optional showcase (Monteith, 1995). It is critical to an economy that the two markets work proficiently. Thus, a fluid a straightforward optional market will energize financial specialists to take an interest in the securities exchange and ought to again build the accessibility of value capital and lower financial specialists' necessary returns. (Sitorus, 2001) Up to this point restricted obligation was just accessible to constrained organizations, which precluded sole merchants in light of the fact that the organization needed to have at least two investors (Kline, 1994). Numerous brokers go gather this by setting together private restricted organizations, with another individual from the family holding ostensible records of offers to fit the bill for organization status. They stayed, as a general rule, one individual business. There is currently the chance of constrained obligation for investors organizations. There is no maximum cutoff to the quantity of investors. Some family organizations are sorted out as constrained organizations however others incline toward the casualness of staying unregistered (Marchisio, 2003). Numerous privately-owned companies have been begun this premise and some have developed to impressive size inside this configuration. The principle impediment is that offers can't be made accessible to people in general, which confines the organization's capacity to raise extra capital through new offers (Bogod, 1999).By welcoming individuals from general society to buy in to the business, it appreciates a lot more extensive chances to raise reserves. Opening up to the world likewise gives existing investors more noteworthy liquidity as they would now be able to understand the estimation of their shares by selling them on the open market (Newman, 1985). Since the investors in a family

Interview MAKE IT SCREAM, MAKE IT BURN Author Leslie Jamison

Interview MAKE IT SCREAM, MAKE IT BURN Author Leslie Jamison When I first read Leslie Jamison’s essay collection The Empathy Exams  back in 2014, I devoured every essay. I then read her novel The Gin Closet, and have read everything she’s put out since. Her writing is sharp and observant, and her ability to move from fiction to personal essay to narrative nonfiction and memoir is admirable. I caught up with her via email to talk about her essay collection Make It Scream, Make It Burn, coming out September 24. Jaime Herndon: You cover a variety of topics in this new book; how did you decide what to include? Leslie Jamison: These essays are just a portion of the writing I’ve done over the past seven years, and ultimately it felt important to me to put together a collection that felt purposeful rather than simply aggregated. As I started looking at the writing I was drawn to, I started to see these themes running underneath pieces that seemed quite disparate in their surface subjects: obsession, longing, hauntingâ€"all of these being ways of describing the ways we feel shaped by what we can’t possess. JH: You state on your website that Make It Scream, Make It Burn is a mirror image to The Empathy Exams. Was this a conscious choice, or did it happen organically?   LJ:  Make It Scream, Make It Burn is divided into three sectionsâ€"Longing, Looking, and Dwellingâ€"and across the course of these essays, it moves from an outward reportorial gaze to a more autobiographical vein of inquiry, closing with deeply personal essays about romance, family, and motherhood. In this arc, it functions as a kind of mirror to my first collection, The Empathy Exams, which began in a deeply personal place and then pointed this confessional gaze outward. Was this mirroring a conscious choice? Not from the outset. From the outset, with both books, I wasn’t writing with an aerial map in mind. I was simply following what fascinated me, what I felt a certain kind of urgency about writing. BUT, once I started to have a strong sense of which essays I wanted to include in this collection, I did become fascinated by the idea of sequencing them in a way that would invert the inward-to-outward logic of The Empathy Examsâ€"that would effectively peel away layers from the jou rnalistic voice to reveal what had been driving her fascinations. JH: I know you’re the Chair of Columbia’s CNF program and a professor, and you also have a family. As a working mother myself, I’m always intrigued to hear how other parents (of any gender, but usually mothers, since many times it falls upon us to do a lot of the work) carve out a writing routine or space for themselves. Can you speak to what your routine looks like? LJ:  Some writers moan about getting too many questions about “process,” and I cannot relate to that lament in any way at all. I’m always hungry to hear other writers talk about how they workâ€"and how they make space for their workâ€"and am always glad to be part of that conversation, as well. I think it’s so important to demystify the writing process, to make it something daily and granular, to push back against the idea that logistics and inspiration are competing gods that live in different worlds. They both live in this one. One of my best friends and I like to talk about the work involved in fighting our way back to the “sacred clearing”â€"that space where the writing can actually happen, amidst all the childcare and the teaching and the grocery shopping. It’s simply a relief to acknowledge and articulate and hear others articulate that there is so much work involved in coming back to this clearing; and that sometimes you get there, and nothing much happens, and y ou have to believe in that part of the work too: showing up for the writing, even when it’s not going as well as you’d hoped. To speak practically: paid childcare is a huge part of what makes it possible for me to write. I also do a lot of work during my toddler daughter’s naps, and after she goes to sleep at night. I’ve gotten very good at sorting work into different categories: “nap work” or “post-bedtime” often involves discrete tasks (like emails or workshop letters), while I preserve those precious stretches of longer hours for the creative work, when I can really dive in without being impossibly tired or uncertain when I’ll be called back. JH: What are you working on now? LJ:  I am working on an essay about Garry Winograndâ€"there’s an exhibit of his color photography at the Brooklyn Museum that feels to me like a secular cathedral of humanity, in all its bewilderment and gloryâ€"and also feeling my way into another novel, for the first time in almost a decade! Sign up for True Story to receive nonfiction news, new releases, and must-read forthcoming titles. Thank you for signing up! Keep an eye on your inbox.

The Devil And Miss Prym - 1713 Words

Our daily life is full of decisions. Decisions of right or wrong, good or evil, discovering who we want to be down at our core protagonist or antagonist. In Coelho’s novel The Devil and Miss Prym, Chantal must make these decisions. When a stranger strolls into her small village of Viscos, Chantal’s inner Devil is prompted. The stranger is testing human nature and uses Chantal as his main pawn. He shows her a bar of gold buried in the woods that she could steal at any time during his week stay, and he shows her another ten bars of gold that the village could have if they chose to commit a murder. Chantal was an adult having to choose how to address the stranger’s proposition, but Bruno in The Boy in the Striped Pajamas (a motion picture) also has to battle his inner devil. In the movie Bruno is an eight year old boy living in Germany during World War II. Bruno does not understand the war, or the promotion his father has been given by Hitler. His inner good verse e vil is trying to dissect all that he is learning from his new home next to the ‘farm’ where the workers wear striped pajamas all day. Both stories deal with their inner good and evil, but both stories also have the same conflict, the same development of personality, and both relate to Plato’s allegory of the Cave. Webster defines conflict as a struggle for power. In both The Devil and Miss Prym and The Boy in the Striped Pajamas the two main types of conflict used are Person Vs Person and Person Vs Self. Chantal,Show MoreRelatedAnalysis Of The Devil And Miss Prym 1104 Words   |  5 Pagesseveral ages. Some refer the two extremes as, right or wrong and others may reference it using â€Å"angel or devil†. If one were to view the two sides on a spectrum scale, many would envision themselves somewhere in the middle, or leaning heavily towards one side. Representations on how humans battle the two extremes can be closely observed in the film, Sophie’s Choice and the book, The Devil and Miss Prym; the two sides are explored through heart questioning decisions and journeys of self-discovery. TogetherRead MoreDevil And Miss Prym Character Analysis832 Words   |  4 PagesComparison of the Devil and Miss Prym and District 9 The Devil and Miss Prym, by Paulo Coelho, and the science-fiction film District 9, produced by Sony Picture Entertainment, both show many similarities when being compared to one another. In each of these, there are multiple similarities with the characters, as well as contrasts, including the society and philosophies. Person versus fate and person versus society are just a couple of examples of conflict that happened in The Devil and Miss Prym and DistrictRead MoreThe Devil And Miss Prym By Paulo Coelho1826 Words   |  8 PagesThe Devil and Miss Prym Comparison The Devil and Miss Prym, by Paulo Coelho, is a novel about the decisions one is to make between good and evil, depicting the blurry line that is sometimes separating the two. The Giver, by Lois Lowry, portrays a similar conflict when a community is subject to the decision made by the generation before them, implementing sameness. This was meant to shelter them from any feelings, decisions, and even color. The choice made by the towns newest Receiver is a difficultRead MoreComparing The Devil And Miss Prym And The Hobbit Essay1183 Words   |  5 PagesA Comparison of Two Novels Within The Devil and Miss Prym and The Hobbit, there are two stories that tell of a battle between the forces of good and the forces of evil. In The Devil and Miss Prym, the conflict lies within the main character, Chantal, as she battles with temptation and her own evil desires. The Hobbit tells of a tale about a hobbit from the Shire who sets out on a journey with a group of dwarves to help them recover their stolen treasure from a dragon by the name of Smaug. EachRead MoreThe Devil And Miss Prym By Paulo Coelho1408 Words   |  6 Pagesover us. In all of these origins rises the concept of why good and evil exists. In the book The Devil and Miss Prym, Paulo Coelho uses a mysterious character, referenced as â€Å"the stranger†, who enters the town of Viscos to desperately answer if humans are initially good or evil. So the stranger sets up an experiment where he would bury 11 pieces of gold. The stranger then runs into a woman, Chantal Prym, on his way back from the woods. He offers her a deal, She can either take the once piece of goldRead MoreThe Devil And Miss Prym And The Movie Seven Pounds1259 Words   |  6 PagesThe idea of creation is perfection, it is good; simultaneously, manifestation of creation in the physical realm is flawed, it is evil. The novel The Devil and Miss Prym and the movie Seven Pounds share a common tale of tragedy, human suffering, and a quest to discover the true nature of humankind. Both ultimately decide upon whether their subjects are deemed â€Å"worthy† of a life-changing gift and ideally demonstrate the reality of human nature. A side of humanity which is rotten, despicable, and suppressedRead MoreAnalysis OfThe Devil And Miss Prym And The Lottery1027 Words   |  5 Pages The question of whether humans are naturally good or evil has been asked since the existence of humans. The Devil and Miss Prym by Paulo Coelho and â€Å"The Lottery† by Shirley Jackson are stories that talk about the sacrifice of one person in a village and how other villagers play a part in it. In The Devil and Miss Prym, barmaid Chantal Prym meets â€Å"stranger† Carlos when he visits the village looking for answers. In â€Å"The Lottery†, the villagers have an annual drawing to get rid of one of their ownRead MoreThe Devil And Miss Prym And The Movie Seven Pounds828 Words   |  4 PagesThe idea of creation is perfection, it is good. The manifestation of creation in the physical realm is flawed, it is evil. The novel The Devil and Miss Prym and the movie Seven Pounds share a common tale of tragedy, human suffering, and a quest to discover the true nature of humankind. Both ultimately decide upon whether their subjects are deemed â€Å"worthy† of a life-changing gift. These two tales ideally demonstrate the reality of human nature. A side of humanity which is rotten, despicable, and suppressedRead MoreSummary Of The Devil And Miss Prym And Shirley Jacksons The Lottery1182 Words    |  5 Pageswriter of The Devil and Miss Prym and Shirley Jackson, writer of â€Å"The Lottery†, both reiterate the idea that a democratic government can be very dangerous if wrong propositions are voted upon by a public. Likewise in both stories, wrong decisions are made by society, and bring conflict and chaos to a village. People are put in a life or death scenario, and little or nothing could be done because society chose to believe that doing wrong was justified morally. In The Devil and Miss Prym, a youngRead MoreThe Devil And Miss Prym By Paulo Coehlo And The Short Story The Lottery1426 Words   |  6 Pagesthe practice of binary labeling becomes a habit. In the novel The Devil and Miss Prym by Paulo Coehlo and the short story The Lottery by Shirley Jackson, the villagers must choose between what they perceive as good and what is not. The issue presented in both pieces of literature is whether the good of the many is worth the sacrifice of one individual, bringing to light the question of what really is â€Å"good†. The Devil and Miss Prym is a novel that takes place in the small, remote village of Viscos

The Process Of Banks And Financial Insistutions Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2989 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Introduction The financial system of Bangladesh consists of Bangladesh Bank (the central Bank of country), Schedule banks, financial institutions (Non-banking), various co-operative societies, insurance companies, microfinance institutions (MFIs) and non-government organizations (NGO). Direct regulation and supervisory responsibility over the system rests with Bangladesh Bank. Among the 48 schedule banks, there are 4 state owned commercial banks, 5 state owned specialized banks, 30 domestic private commercial banks, 9 foreign commercial banks and 29 non-bank financial institutions. Don’t waste time! Our writers will create an original "The Process Of Banks And Financial Insistutions Finance Essay" essay for you Create order Financial institutions represent one of the most important segments of the financial system and play a very important role in mobilizing and channeling resources in Bangladesh. Financial system of the country is either bank or market based. Since bank based systems are good at mobilizing savings and providing payment services and liquidity, they are constrained in providing store of value services. By adding liquidity, divisibility, informational, efficiencies and risk pooling services, non-bank financial institutions play a major role in the development of financial sector by broadening the spectrum of risks available to investors. Objective of the project: To discuss process of Banks and FIs or NBFI To show what are the sources of their funds To show the difference in their lending segment on the prospect of SME To watch carefully the degree of difference and similarities between the real life and theory. Scope: This study revolves basically around Banks and Financial Institution in Bangladesh. This study includes an analysis of their lending pattern on the prospect of SME. And what possible steps should be taken to improve facilities. Methodology: For preparing this report we will gather information from the following sources: Secondary data: This report will base on only secondary data like-Official website of the company, journal, newspaper etc. Limitation: In preparing this report certain limitations were faced: This report may suffer from statistical error due to the fact that all data used were Secondary. Lack of sufficient alternative sources prevented verification of information. The analysis presented here may vary with opinions of experts in this field. Overview: Structure and component of the financial sector in Bangladesh: The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-bank financial institutions. Moreover, MRA has given license to 298 Micro-credit Organizations. The financial system also embraces insurance companies, stock exchanges and co-operative banks. NBFI: Non-Bank Financial Institutions are an important part of financial system in Bangladesh. NBFIs operations are regulated under the Financial Institutions Act, 1993. The NBFIs consist of investment, finance, leasing companies etc. There were 29 financial institutions operating in Bangladesh as of 31 December 2006. Of these one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. Banks: In the banking subsector, there are 4 SCBs, 5 governments owned specialized banks dedicated to agricultural and industrial lending, 30 domestic PCBs, and 9 foreign commercial banks. The specialized banks are often called development finance institutions (DFIs). Out of the five specialized banks (enjoying 10% of the total industrys assets), the Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank were created to meet the credit needs of the agriculture sector, while the Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha were set up to extend term loans to industry. Defining SME: Small and medium enterprises (SMEs) are clearly defined by the Ministry of Industry of Bangladesh. Small businesses in the manufacturing industry are defined as those having fixed assets valued at less than BDT 15 million ($220,000), 50 excluding the value of land. Nonmanufacturing businesses with fewer than 25 workers are also considered small businesses. Current Situation of SME in Bangladesh: Small and medium enterprises (SMEs, industry and service) sector has been treated as a thrust sector and expected to play an important role in healthy performance of industry and service sectors in FY10. At the end of September 2009, banks and NBFIs distributed Tk.248.8 billion to the SME sector which is about 21.9 percent of their total disbursed loan. For promoting small enterprises, BB has directed the banks and NBFIs that at least 40 percent of their total targeted loan for the SME sector should be earmarked for financing small entrepreneurs but at the end of Q1FY10 only 29.2 percent of their SME loan went to small enterprises. Recently Bangladesh Bank (BB) has opened SME and Special Programs Department to help the sector and its clients. As the state owned banks have wide banking network with their large number of branches throughout the country, BB particularly urged the state owned banks together with other banks, to develop area-based lending network where a bank can help e ntrepreneurs directly and timely. Given the prospect of growing domestic demand, regained momentum in export demand, rising trend in capital machinery import and industrial loan disbursement and positive prospect in construction and SME sector activities, the overall growth outlook for industry sector output for FY10 seem reasonably encouraging. According to data of 2008, the total market size for loans to SMEs is estimated to be nearly BDT 400 billion ($5.7 billion). The total amount of SME loans increased by BDT 100.2 billion ($1.4 billion), or 40 percent, to BDT 350.4 billion ($5 billion) at the end of June 2008, in comparison to BDT 250.2 billion ($3.6 billion) at the end of June 2007. In terms of institutional categories, loans extended to SMEs increased from June 2007 to June 2008 among private banks (53.5 percent), nonbank financial institutions (43.4 percent), state-owned banks (32 percent) and specialized banks (15.1 percent). But, SME loans extended by foreign banks are decreased by 20.5 percent. Microenterprise loans range from BDT 20,000 to BDT 500,000 ($287-$7,170), but most such loans range from BDT 20,000 to BDT 50,000 ($287-$717). Very few microenterprises receive loans greater than BDT 50,000. Maturities range from six months to two years. The average SME loan sizes by type of lender are as follows (figures are provided from the period 2003-2006): ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Average bank loan: 408,081 BDT ($5,851) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Average MFI loan: 38,250 BDT ($548) Banks are the largest source of funding for SMEs. As of March 2008, private banks accounted for 54 percent of SME financing and state-owned banks, 30 percent, followed by specialized banks (10 percent), other financial institutions (4 percent) and foreign banks (2 percent). BRAC Bank and the state-owned BASIC Bank are the key players in SME finance in the country. The South Asia Enterprise Development Facility, SEDF, has also facilitated the a ccess of SMEs to formal financial services. The total SME loan portfolio reached BDT 350.4 billion ($5 billion) in June 2008 (provisional), representing growth of about 15 percent over the six-month period, January through June of that year Table 1:SME loan portfolio 2007-2008 June 2008 (provisional) December 2007 SME Loan (BDT Billions) SME Loan (% of Total Loan Portfolio) SME Loan (BDT) SME Loan (% of Total Loan Portfolio) Private Banks 198.90 19.7% 16248.61 18.2% State Owned Banks 99.19 33.3% 9577.60 22.7% Specialized Bank 32.50 22.9% 3050.38 23.3% Foreign Banks 6.12 6.5% 427.00 5.1% Nonbank Financial Institution 13.68 19.7% 1279.37 18.7% Source: Bangladesh Bank SME Finance As noted above, little data exists on the retail market for SME finance; even less data is available for the refinancing market, making the refinancing gap impossible to quantify. Table 2 presents the most recent available information from Bangladesh Bank on its SME refinancing facility, which is supported by the World Bank and the Asian Development Bank. Three banks-BRAC, Eastern, and Dhaka-accounted for more than 50 percent of the facility. Beginning in July 2008, the facility (called the SME Foundation) planned to disburse an additional BDT 2 billion in refinancing for SME lending, 80 percent of which was targeted at small businesses. Despite these funds, Bangladesh Bank has issued a clear call for additional support, noting that its current resources are not sufficient to close the gap in SME financing. Table 2: Bangladesh SME Refinancing Facility Name of banks or Fis Amount refinanced (BDT millions) No. of beneficiaries Average amount refinanced per enterprise (BDT millions) Working capital Medium term Long Term Total Banks NCC/Bank Ltd. 21.6 155.00 14.8 191.4 796 0.2 Jamuna Bank Ltd. 164.8 29.3 15.4 209.5 152 1.4 National Bank Ltd. 15.1 0.0 0.0 15.0 4 3.8 ONE Bank Ltd. 197.1 141.8 14.8 353.7 445 0.8 Premier Bank Ltd. 239.0 24.5 9.3 272.8 227 1.2 BRAC Bank Ltd. 48.6 637.8 0.0 686.4 1736 0.4 Southeast Bank Ltd. 81.2 3.2 3.5 87.9 86 1.0 Dutch Bangla Bank Ltd. 100.8 1.3 0.0 102.1 56 1.8 Mercantile Bank Ltd. 0.8 34.2 0.0 35.0 344 0.1 Eastern Bank Ltd. 113.8 262.1 243.0 616.2 581 1.1 Dhaka Bank Ltd. 326.5 149.8 0.0 476.3 553 0.9 Trust Bank Ltd. 17.6 0.4 0.6 18.6 15 1.2 Prime Bank Ltd. 198.1 10.7 6.9 215.7 234 0.9 Bank Asia Ltd. 0.3 10 0.0 10.3 21 0.5 Bank subtotal 1,525.2 1,460.1 305.6 3,290.9 5,250 0.6 Financial institutions Uttara Finance Investment Ltd. 8.7 123.1 360.5 492.3 279 1.8 Prime Finance Investment Ltd. 22.5 19.0 14.3 55.8 31 1.8 MIDAS Financing Ltd. 0.7 325.7 168.0 494.4 776 0.6 IDLC of Bangladesh 7.7 317.9 82.9 408.5 348 1.2 Phoenix Leasing Co. Ltd. 11.6 54.1 71.7 137.4 129 1.1 United Leasing Co. Ltd. 60.1 124.9 140.4 325.4 209 1.6 Vanik Bangladesh Ltd. 0.3 0.5 0.0 0.8 2 0.4 Bay Leasing 2.5 5.1 4.7 12.3 8 1.5 Fidelity Assets Securities Co. Ltd. 0.0 9.0 243.5 243.5 143 1.7 Islamic Finance and Investment Ltd. 6.1 120.7 23.2 150.0 125 1.2 Peoples Leasing and Financial Services Ltd. 4 28.9 196.1 229.0 123 1.9 Bangladesh Finance and Investment Ltd. 0.0 12.6 59.3 71.9 25 2.9 IIDFC 17.0 29.3 58.9 105.2 67 1.6 GSP Financing 5.0 0.0 20.8 25.8 6.0 4.3 National Housing Ltd. 4.0 7.6 9.1 20.7 12 1.7 Oman Bangladesh 0.0 1.2 4.0 5.2 21 0.2 International Leasing 4.6 31.8 24.3 60.7 26 2.3 Union Capital 5.0 3.5 9.5 18.0 7 2.6 Fareast Finance and Investment Ltd. 0.0 1.3 0.0 1.3 2.0 0.7 Premier Leasing 0.0 11.4 6.7 18.1 9 2.0 FI subtotal 159.8 1227.6 1488.9 2876.3 2348 1.2 Grand total 1685.0 2687.7 1794.5 6167.2 7598 0.8 During Q4 FY09, the disbursement of term lending by banks and NBFIs increased by 21.85 percent and stood at Tk. 67.96 billion which was Tk.55.78 billion in Q4 FY08. Between Q4 FY08 and Q4 FY09, term lending by PCBs increased from Tk.38.63 billion to Tk.48.12 billion due to their higher activities to increased industry share in lending, SCBs term lending increased also from Tk. 2.10 billion to Tk. 3.17 billion, while term lending by FCBs increased moderately from Tk. 7.51 billion to Tk. 8.12 billion. Term lending by NBFIs also increased moderately from Tk.6.72 billion to Tk. 7.12 billion Unfolding the Findings: SME financing is a new product in the range of services provided by banks. SME loan is different from other loans, not only because this is small in size, but also because its modalities are different. Nevertheless, to foster the growth of SME sector, various financial institutions now offer a wide range of products and services to SMEs in many countries. Unfortunately Bangladesh still has a scarcity of SME financing institutions or SME financing products and services. For example, two banks namely BASIC Bank (SME financing covers almost 100% of the loan portfolio) and BRAC Bank Limited (extends over 50% of the loan portfolio) are specifically devoted to SME financing. Other commercial banks are also open for SME finance, though their coverage is low. However, commercial banks should not be the only source of SME financing. There are other financial institutions, which finance SMEs worldwide, such as the SME Department of International Finance Corporation (IFC), World Bank Group. To enquire about the availability of SME financing products and services, we have surfed a number of commercial banks Website as well as the websites of other financial institutions, such as IDLC of Bangladesh and IPDC of Bangladesh. We have found that some of them do provide some innovative Products or services solely targeting SMEs, while others have repackaged some of their existing products as SME products. Banks SME Products/Services Standard Chartered Orjon Business Installment Loan Trade Finance Auto Loans Working Capital Foreign exchange BRAC Bank Anonno The City Bank Ltd Cash Credit (Hypothecation), Cash Credit (Pledge), Secured Overdraft, SOD Against Work Orders Dutch Bangla Bank Ltd Small Shop Financing Scheme Overdraft, Cash Credit (Hypothecation) Prime Bank Ltd Small Medium Enterprise (SME) Cell Pubali Bank Ltd Term Loan Social Investment Bank Ltd Special Credit Line for Small and Medium shop owners South East Bank Ltd Term Loan Among the non-bank financial institutions (NBFIs), IDLC of Bangladesh mainly focus on SME financing by providing business solutions through financial products like business loan, machinery loan, double loan and lease finance. They have introduced .factoring. first in the country. Among other sophisticated SME financing instruments, Industrial Promotion and Development Company (IPDC) of Bangladesh has introduced the first asset securitization in Bangladesh in 2004, followed by IDLC of Bangladesh with Asset Backed Securitized Zero Coupon Bonds of BDT 190 million in 2005 Non Banking Financial Institution SME Products/Services IDLC Factoring Asset Backed Securitized Zero Coupon Bonds IPDC First asset securitization in Bangladesh in 2004 IFC Leasing, SME Risk Capital, Equity Funds and services like Credit lines, Credit bureaus DBH Home Loan There are many constraints in developing the SME sector in Bangladesh. Several studies have identified different constraints, ranging from access to credit to marketing their products and services. However, access to credit is considered as the main constraint. Commercial banks are found reluctant to extend credit to the SME sector. The main reasons are high risk and monitoring cost. To meet the challenge and reduce the perceived risk in lending to SME sector, the Bangladesh Bank has embarked on a program to expand and redesign the existing refinance window of Bangladesh Bank into Small Enterprise Fund (SEF). However, it was thought that the introduction of .Credit Guarantee/Insurance Scheme or adequate refinancing facilities. By the Bangladesh Bank may be of substantial help in increasing the participation of the commercial banks in SME financing. Private Banks cannot be expected to undertake this type of financing as additional costs and high risk involved. On the ot her hand, NCBs that cater to a variety of sectors, from large industries to SMEs will not also be expected to give special attention that SME financing calls for. Problems That FIs are facing: Unlike banks, FIs have limited scope of mobilizing both public and private deposits due to some restricted policies of the government. In absence of mobilizing funds at comparatively moderate cost, FIs have to procure funds from commercial bank at higher rate of interest to run their investment portfolio. Delay in legal procedures in recovering the non- performing leased assets. corporate tax rate for FIs since they have to pay tax at the rate of 45% p.a. same rate as banks and other financial organization have to pay though the earning spread of FIs is in the range of 2-3% and that of banks 7-8%. Allowing financial institutions to claim depreciation on leased assets as an allowable expense for tax purpose which the government has withdrawn. Banks by offering leasing services are distorting the market on account of their lower cost of funds. Absence of established secondary market to dispose of the repossessed lease assets in case of default cases. Cash credit (CC) and Hypo loans are very secured products of banks that are not allowed for NBFIs. Despite all these constrains FIs should take immediate measures to correct them in their favor and look for diversifying their product ranges along with efficient management practices that can play a greater role in the countrys financial sector and meet the long term investment demand of the country. Major constraints of SME financing: The major constraints of SME financing by banks and FIs can be summarized as: Inadequate knowledge and ability to formulate proper project proposals for seeking institutional finance; Collateral based lending procedures of banks and FIs that are not suitable for SMEs; Complex bureaucratic procedures and corruption; Limited availability of information on technical and marketing aspects of SMEs; Inadequate and ineffective coordination among concerned government agencies; Lack of a functional definition of SMEs that can characterize their unique positions; Absence of proper criteria for selecting potential SME entrepreneurs by the promotional institutions. Initiative Taken by Bangladesh Bank: To address this problem Bangladesh Bank took some initiative; relevant aspects of banking and NBFI regulation are summarized below: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Refinancing from offshore investors Banks and NBFIs may borrow in foreign currency, providing the effective interest rate does not exceed LIBOR plus 4 percent and the maturity of the facility does not exceed 7 years. NBFIs face additional restrictions. Specifically, the repayment of interest in foreign currency is prohibited for NBFIs (the repayment of the loan principal in foreign currency is allowed). These restrictions may impede banks and NBFIs from accessing important potential sources of international financing-and thus from expanding their SME loan portfolios, given the reported dearth of SME refinancing facilities reported by Bangladesh Bank. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Transformation Transformation of a bank into an NBFI requires a capital increase from BDT 100 million ($1.4 million) to BDT 2 billion ($28.7 million), and eventually to BDT 4 billion ($57.4 million), beginning in June 2009. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Foreign direct investment There are no significant hurdles to foreign direct investment in existing banks and NBFIs in Bangladesh. Regarding greenfield operations, foreign investments may be made independently or through joint ventures, although a license must be received for any greenfield operation. Bangladesh Banks reform agenda in the banking sector and NBFI subsector is focused on strengthening competitiveness, specifically, resolving the sectors maturity mismatch and nonperforming loan problems. Items on the reform agenda include restructuring the specialized banks to improve their operational efficiency and alleviate their portfolio quality problems; improving the functioning of the secondary market for bonds and securities; and generally strengthening regulation and supervision. The central bank recently provided updated guidelines to banks to promote SME lending. These guidelines include requiring banks to inform the central bank of the target SME loan portfolio each year; dedicating a minimu m of 40 percent of the targeted amount to small businesses; establishing a dedicated SME function; and reporting on the SME portfolio on a quarterly basis. Conclusion Emergence of NBFIs has created a new avenue in our bank dominance traditional financial system. Traditionally banks are doing such businesses that they are not supposed to do. Long term lending of banks is mostly unfamiliar product for them, and has created a serious distortion in the financial market. Rather than gaining any benefit from such types of activities, the society is now carrying the load of overwhelming default loans. As leasing is considered as an alternative of long term financing many NBFIs have strong performance in leasing business. We found that financing the small scale industries in Bangladesh is the much-talked about, but less implemented issue. Government of Bangladesh has already taken some important steps to patronize the sector including allowance and pension and insurance fund to invest in the capital market, reduction of stamp duties and taxes of issuing cost of bonds and imposition of 10% tax on interest income arising from national savings certificate. Government has already initiated to build a secondary bond market with IMF assistance. It will be better for NBFI sector if the secondary bond market could be established on an urgent basis. In Bangladesh, the limited access to finance is one of the major areas of concern for SME development. Institutions to serve this sector need to have the financial capacity to accept the lending risks along with access to appropriate funding which matches the clients requirements. The financing approach of the commercial and development banks in the country is largely traditional that does not suit the special characteristics of SMEs. They mostly subscribe to the view that collateral and third party guarantee minimize risks for the lenders.

The Effectiveness of Dodd-Frank Act Free Essays

The Dodd-Frank represents the most comprehensive financial regulatory reform measures taken since the Great Depression; in simplest arms the Dodd-Frank Act is a law that places major regulations on the financial industry. Dodd-Frank grew out of the Great Recession with the intention of preventing another collapse of major financial institutions in the U. S. We will write a custom essay sample on The Effectiveness of Dodd-Frank Act or any similar topic only for you Order Now The Dodd- Frank also enforces the consumer protect act which is put in place to protect borrowers from abusive barrowing and puts regulations on banks that practice these bad habits. Why did the Dodd-Frank Act come about? In 2008 the economy suffered a great recession and Dodd-Frank was suppose to be the answer, the tool to fix the financial problems in the U. S. If you will. Dodd-Frank put financial regulations that were said would turn the recession around and help prevent a recurrence on financial institutions. There are said to be many reasons why the economy started to plummet some say the housing market was the reason for the downward spiral of the economy and others say the banking system had a huge hand in the recession as well along with credit reporting agencies that falsely reported scores. There are many contributing factors that could have been the reason for the financial downturn of the U. S. And the Dodd-Frank Act is supposed to be the answer for regulating banks ND implementing consumer protection. In 2010 President Barack Obama signed the Dodd-Frank Act in to Law to help secure the future economy of the U. S. I am personally all for the Dodd-Frank law, I feel that it will benefit the U. S. Economy to have stricter laws preventing it from completely failing again. Some research shows that there has been as many as 47 recessions in the U. S. O something was not right and we needed a change. In my opinion there is no way that we should have experienced recession in 2009, we are supposed to be a advance country, now I understand that things happen and that’s exactly why I’m all for resolutions and changes and that’s why I feel it is important that the Dodd-Frank and embraced and hopefully used properly. We as the United States need to tighten our laws and restrictions and work more at being proactive rather then reactive when things go wrong and now our entire economy is at risk because of one large financial institution. As you read further in the paper you will see some of the provisions like many that stuck out to me and being some of the most important while also explaining why I am in favor of the Dodd-Frank law. One of the Dodd-Frank Act’s main goals is to regulate banks, which means that banks will be subjected to a series of regulations and if any of the banks are determined to be too big to fail then there is a possibility that the bank can be broken up. In order to be able to focus so much on banks and making sure the banks are complaint with the regulations the bill created the Financial Stability Oversight Council. The Treasury Secretary chairs the Council and has nine members including the Federal Reserve, the Securities and Exchange Commission and the new Consumer Financial Protection Bureau or CAP. It also oversees non-bank financial firms like hedge funds. The Financial Stability Oversight Council (OFFS) will monitor the markets for asset price bubbles and the build up of systemic risks. In addition, it would designate which financial firms are the systemically important. These firms would be subject to additional regulations by the Federal Reserve, which would include higher capital standards and stricter liquidity requirements, as well as requirements that they draw up a â€Å"living will†, that is a plan for the orderly liquidation if the firm gets into financial difficulties. Manikins,Snakeskin 2012 peg. 449) Some like that under Dodd-Frank banks are also required to have plans for a quick and orderly shutdown in the event that the bank becomes insolvent. In accordance with the OFFS there were other regulations that the banks would have to comply with eventually. This regulation is called the Blocker Rule, this prohibits banks from investing in or owning hedge funds at all. The Blocker Rule stopped private equity funds and proprietress trading for the banks own profit and the banks would only be allowed to own a small percentage of the hedge and private equity funds. The Blocker rule came about because Paul Blocker was against banks using the funds the bank received from benefits deposits insurance for risky trading. The Blocker Rule does allow some trading when it’s necessary for the bank to run its business. , so if the bank needs to trade currency to offset their own holdings in a foreign currency they would be allowed to do so. The Blocker Rule was not in effect when The Dodd-Frank was sign and began implementation, it was a future regulation that later was added and implemented. Derivatives are a huge part of the Dodd-Frank; derivatives played a part in the nonfatal of GIG. Alga had to be bailed out after extensive use of derivatives, and the Dodd-Frank has placed regulations to prevent this in the future. Derivatives are financial instruments whose payoffs are linked to previously issued securities, such as credit default. In order to try and get a handle on this issue Dodd-Frank requires that the risky derivatives are regulated by the SEC or the commodity futures trading commission while the more transparent derivatives are put in a clearinghouse. The clearinghouse is going to act similar to the stock exchange; this is a way to trade the reparative biblically. Not all derivatives will be subject to the law, The Securities and Exchange Commission and the Commodity Futures Trading Commission approved a rule that would exempt some energy companies, hedge funds and banks from derivative oversight. (CNN, 2013) Insurance companies and credit rating agencies are some of the other financial institutions that Dodd-Franks effect. The Federal Insurance office was created which operates under the Treasury Department to help identify insurance companies that could pose a risk to the entire system. Dodd-Frank created this regulation because of the damage that GIG caused, so this regulation will be more proactive in avoiding the same problem again. Also in the interest of the consumers, the Federal Insurance office will collect information about the insurance industry and make sure affordable health insurance is provided for minorities. Some credit rating companies were criticized for providing scores that were not correct and there for allowing consumers to get loans they could not afford. This was saw as misleading along with over rating derivatives and mortgage-backed securities Ђ?and saying the investment tools were worth more than their actual value. Dodd- Frank made it so as apart of the new rules, the SEC can require agencies to submit their rating systems for review, and can De-certify an agency that gives misleading ratings. The new rule should put a stop to the issue of approving loans and mortgages that the consumers could not afford. The law requires that the consumers provide proof of income, credit, and Job history which only makes sense to make sure the consumer can afford to repay what they have barrowed. One of the gig reasons I agree with the law is the Consumer Protection, Dodd-Frank legislation created a new Consumer Financial Protection Bureau (CUFF) that is funded and housed with in the Federal Reserve. This regulation was to protect consumers from immoral business practices by banks. The CUFF consolidated a number of existing consumer protection responsibilities in other government agencies. The CUFF has the authority to examine and enforce regulations for all businesses engaged in issuing mortgage products that have more then $10 billion in assets. Manikins Snakeskin, 2012 peg. 448) The CUFF is also able to examine other financial products marketed toward poor people in efforts to keep our economy from falling apart again from this. The law also works with the regulators in large banks to stop transactions that hurt consumers, such as risky lending. Which also bans payments to brokers for pushing borrowers into higher-priced loans, as well as giving the state attorney general power to enforce certain rules issued by the legislation on the stricter consumer protection laws on National Banks. This allows for it to ban brokers from pushing consumers into higher ricer loans. In addition to the above-mentioned perks I also appreciate that consumers have access to information made plain for anyone to be able to understand, and there is a 24-hour hotlist to report issues with any financial services. In accordance with helping consumers stay away from faulty loans the CUFF also monitor the debit card use, credit care and pay day loan use, this seems to be a good idea to me because it can kind of hold you back from doing something the will eventually put you in the negative. Although the government always had some ability to seize failing financial institutions and slowly close them down, the government did not have total resolution over authority over the largest financial institutions. This was the issue when it came t the government saving Lehman Brothers and the there was not resolutions to be offered so the company filed for bankruptcy. Dodd-Frank now provides the government with this authority for financial firms that are deemed systemic, and also gives regulators the right to levy fees on financial institutions with more than $50 billion in assets to recoup losses. (Manikins Snakeskin, Peggy 2012) How to cite The Effectiveness of Dodd-Frank Act, Papers

Adam Smith’s Theory of ‘The Invisible Hand’ free essay sample

This essay tries to absolve Adam Smith from left-wing criticism that he has established the mode of greed in Western societies. It lays stress on the fact that Smith’s theory concerning the â€Å"invisible hand† was a scientific observation, and that it expressed natural law, something that is beyond the capacity of humans to control. To this end it considers various issues raised in The Wealth of Nations, discusses how they were relevant to Britain and the world at the time of publication, and also how they continue to be relevant to this day. It points out that left-wing criticism derives from a misreading of Smith, and is due to a conflation of Smith’s theories and capitalism. It argues that capitalism existed well before the time of Smith, and its course has nothing to do with Smith’s discoveries. The underlying theme is that Smith’s theory expresses freedom in economic life. The first thing to keep in mind when discussing the concept of Adam Smith’s theory of the â€Å"invisible hand† is that he was foremost a moral philosopher and a social scientist, and by no means an economist in the modern sense. The modern economist usually functions in the capacity of a social policy advisor who is politically motivated. It is true that Smith offers advice to governments towards achieving prosperity, but this is only in the capacity of a moral philosopher. The substance of his findings is that economic life is governed by a simple principle, and his advocacy derives from the understanding that is it unwise to intercede in the path of natural law. This is the principle of laissez faire, that governments should not impose their designs of the economy of a country, and that even the cleverest idea is bound to be detrimental to prosperity, compared to that which comes naturally. In the modern context we find the World Bank criticized by the left for ‘imposing’ free market ideology on poorer nations, an ideology supposedly derived from Smith. If it is an imposition, then it must surely be contrary to the workings of the invisible hand, and therefore detrimental to prosperity. But it is questionable whether the World Bank really imposes itself at all, a point that will be taken up further on. Smith’s thesis is a mere elaboration of Bernard Mandeville’s motto â€Å"private vices, public benefits†, though Smith is careful not to conflate vice with self-interest.[1] In Smith’s version of the teaching, we act in our own interest in the sphere of economic activity, but in doing so we bring about benefit to society as a whole.[2] Smith imagines an invisible hand arranging things in economic life, so that even though we do not intend to serve the public good, we end up doing so.[3] He describes the mechanism of price determinism to put the thesis into focus. The price of a commodity is determined by two factors – supply and demand. If there is a sudden glut in the market, the price of corn falls. This means that there is more supplied than that which is demanded, and so consumers are not willing to buy corn at the previous price, and so the seller is forced to lower it. On the other hand a bad harvest suddenly makes corn less available, in which circumstance the price rises. Consumers still demand the same amount of corn, so the seller is able to extract a larger price for his corn. This describes the fluctuation of supply, and the situation mirrors itself when the demand fluctuates. This analysis actually describes two opposing tendencies in the market. The seller wants a high price for his goods, while the consumer would pay the least. Matters settle at the equilibrium price, which is the point that balances the two tendencies. The mechanism of price determination is as close as we come to see the workings of the invisible hand, which works for the general benefit by balancing contraries. Smith is describing a natural law of human interaction, so he cannot make suggestions as to how the theory should be utilized. Governor Pownall of Massachusetts has fittingly described the thesis as â€Å"an institute of the Principia of those laws of motion, by which the operations of the community are directed and regulated, and by which they should be examined.†[4] Smith is observing as a scientist would, and in his reasoning we discover a strong imprint of Hume’s â€Å"science of man†. David Hume was a crucial philosopher for the age, who emphasized that reason must be applied to the sphere of man, against the Rationalists who harked for metaphysical certainty in knowledge.[5] Most of the substance of The Wealth of Nations is anticipated by Hume, especially the benefits to be gained from competition and free trade. The special contribution of Smith was to put the matter on a solid scientific footing. Another significant influence is of the physiocratic school in France, led by Francois Quesnay. This school also believed in a natural law determining economic life, but based the law on land, and therefore on agriculture. Because agriculture is the support of all other activities, the agricultural community was thought to be the sacred heart of society and in this context the advocacy was â€Å"laissez faire† – to let things be. Smith instead identified the source in labour, and in free competition regards the exchange of it products. This is the heart of economic activity that must be left inviolate, and he carried on the same slogan of the Physiocrats in this new context. The opponents of Smith accuse him of promoting greed, but this is certainly not the way Smith meant his thesis to come across. As a true scientist, his sole regard was for natural law. He does not pretend that economic activity can be changed at the atomic level. His only advocacy was for free trade at the macroscopic level. He felt passionately in this regard because the conventional policy of European governments at the time was hardly conducive to free trade. This policy is described as mercantilism, which in the modern context may be described as protectionism. Governments believed that they should always aim for a favourable balance of trade. The reasoning was that, if net exports exceed net imports, there is an accumulation of specie (gold or silver currency) within the domestic economy. The extra wealth may then be utilised towards further self-sufficiency, by cultivating or mining the colonies. It also helps in the emergency of war, because troops may be quickly assembled to the task of protecting the national interests. At the time all major European powers were colonial, and effectively at war with each other in their expansionary drives. International trade was carried out in this atmosphere of suspicion and rivalry, and Smith did not see this as a situation favourable to prosperity. His reasoning was simply that it obstructed natural law. Smith singled out the relative prosperity of Britain, and identified the cause in its relative tolerance of free trade. As against Britain he cited the examples of Spain and Portugal, the original European colonists, but now languishing in the race. The demise of the Spanish and Portuguese empires is squarely blamed on mercantilism. Natural love of specie was exacerbated by the discovery of gold and silver mines in South America, and to prevent the acquired treasures from leaking out of their domestic economies, these governments introduced more and more protectionist measures, the net result being merely inflation, because gold and silver lost value in the internal market. As the domestic economy lost edge, trade also suffered. Because Spain and Portugal held so much gold, the currency elsewhere increased in value, which encouraged industry, so that other nations were able to trade favourably with them. Smith compares this situation to a river being dammed up, so that the dammed up side is at an unusual high level, at the expense of the other side. â€Å"Open the flood-gates,† Smith exhorts, â€Å"and there will presently be less water above, and more below, the dam-head, and it will soon come to a level in both places.†[6] Britain too fell into the same trap, when parliament ratified the Corn Laws in 1815, imposing restrictions on the importation of corn, hoping to extract a better price for its corn merchants and producers in international trade. Despite bloody protests, successive administrations failed to repeal the laws, not willing to relinquish a tool by which they could display economic prowess. Peel took steps in 1842 to lessen the severity of the Laws, claiming to have been enlightened by reading Smith. It was only fully repealed by his successor Russell. Most observers will agree that free trade has been responsible for the miraculous prosperity and technological advance of the modern world. In this way they come to an appreciation of the invisible hand at work, in the same way that Smith appreciated its workings in the favourable position of Britain in the 18th century. But it is unfortunate that capitalism and all its attendant evils have come to be associated with Smith’s ideas. The connection comes through Smith’s elaboration of the concept of â€Å"division of labour†. To illustrate how a free economy comes to assign specialized roles to individuals, Smith described how efficiency is extracted from the factory floor. However, the capitalist who owns the factory can read this description in a different light, and may then try to extract profit through more specialization. Such an attitude gives rise to capitalism, and may be said to come from a misreading of Smith. Marx analyses capitalism entirely from this point of view, and speaks of an unhealthy separation, where â€Å"labour power found itself in a state of separation from its means of production,† which has been expropriated by the capitalist.[7] This is supposed to be the beginnings of social alienation. Karl Polanyi identifies an even more drastic consequence. He describes how â€Å"the market becomes ‘disembedded’ from society,† meaning that instead of functioning in the natural context in which Smith observed it, the market is forced to function in the way the capitalist deems necessary.[8] The capitalist is further criticized for imposing enclosures, which bars society towards holistic integration. Some critics lambaste Smith for not once mentioning the controversial â€Å"highland clearances†, in which people were barred from access to common land to make way for sheep cultivation, a part of the general policy of ‘enclosure’. But all such left-wing critiques are merely beside the point. Smith nowhere describes capitalists controlling society, and any such action he describes as merely subversive to the working of the invisible hand.[9] The economic efficiency which he extols is not to the credit of the capitalist, but is rather the outcome of natural law. If capitalism seems to be a reality, then it must be explained otherwise. Braudel offers a more intelligent explanation, in which capitalism is merely a steady commercialization of economic life, and without a specific origin.[10] Smith derides capitalism in the same way as we do. It has nothing to do with the functioning of the invisible hand. Another way in which Smith is thought to have instigated capitalism is through the influence he wields over the avowed capitalist regimes of the West. He is thought to have played a role in the birth of the American nation, as being an inspiration in the revolutionary war against Britain. But the founding fathers were not followers of Smith, and the later leaders were only so by proxy. They professed to believe in Smith only because his theories had become the norm. In fact Smith’s own predictions concerning America are highly significant. He thought the British treatment of its American colonies as enlightened, and except for trade the colonists were allowed every freedom.[11] He called for American representation in the British parliament, and predicted that one day British capital would be transplanted to America. In the end Britain had to go to war with its colonies, and eventually granted them independence. If not British capital, then at least British liberality transplanted itself there, and proved to be the foundation to American prosperity. It proves that Smith’s hope for the American colonies was not misplaced, but it was a hope based on liberality, and not on capitalism. This is the sense in which McCloskey describes him as a moral philosopher, and not an economist.[12] The same argument serves to absolve World Bank from the charge of imposing free market reforms, which are said to be imposed as conditions to granting loans to poor countries. Once we accept that the free market is a natural phenomenon, it cannot be conceived how any political body may control it. The left wing seems to mistake moral freedom for conspiracy. In conclusion, Smith discovered a natural law that guides economic life, and to present it graphically he pictures a pervasive and invisible hand working towards the enrichment of society as a whole despite the fact that the individual members are acting only out of self-interest. The wrong judgement of this theory is to suppose it to be a means for the capitalist to enrich himself. The correct judgement should be that Smith has discovered how freedom exists in the economic life. In the modern world, nations have prospered only to the extent to which they have been infused with the spirit of freedom. If they had tried to conspire to this end they would not have succeeded. This is the basic lesson that we learn from The Wealth of Nations. References BRAUDEL, F., 1977. Afterthoughts on Material Civilisation and Capitalism. Trans. Patricia Ranum. Baltimore: Johns Hopkins University Press MACFARLANE, A., 2000. The Riddle of the Modern World: Of Liberty, Wealth and Equality. New York: St. Martins Press. MARX, K., 1978. Capital, Volume Two. New York: Penguin Publishing. MCCLOSKEY, D.; A. KLAMER, 1996. The Value of Culture: On the Relationship Between Economics and Art. Amsterdam: Amsterdam University Press. MILLER, L.; J. COLEMAN; W. CONNOLLY; ALAN RYAN. 1991. The Blackwell Encyclopaedia of Political Thought. Oxford: Blackwell Publishing. POLANYI, K., 1990. The life and work of Karl Polanyi: A Celebration. Ed. Kari Levitt. Montreal, QC: Black Rose Books. REISMAN, D. A., 1976. Adam Smiths Sociological Economics. New York: Barnes Noble Books. SMITH, A., 1998. An Inquiry Into the Nature and Causes of the Wealth of Nations. Ed. Kathryn Sutherland. Oxford: Oxford University Press. TWEYMAN, S., 1995. David Hume: Critical Assessments. London: Routledge.