Hispanic and Latino Americans Essay

The poem â€Å"Legal Alien† by Pat Mora is in the open poem form, it has no stanzas. It does have a few words that rhyme which are â€Å"English† (5) and â€Å"Spanish† (6) and also with â€Å"Mexicans† (14) and then with â€Å"Americans† (15). The poem also has rhythm, it is a low steady beat. It is a straightforward poem about how life is for a person with the same race/ethnicity as others and at the same time, different from others. The poem â€Å"Legal Alien† is about a woman of Mexican parents, who is born and raised in America. An American citizen established by law, but at the same time this person feels like an illegal alien because of how some people treat her. She is fluent in both, English and in Spanish. Feels American because she is, but at the same time she doesn’t. She is looked at by Americans (Anglos) as inferior, and looked at by Mexicans like she doesn’t belong. They make her feel like she is not one of them, like she doesn’t fit anywhere. â€Å"An American to Mexicans a Mexican to Americans a handy token sliding back and forth between the fringes of both worlds† (14-18). – What this means is that she feels like she could be from both places and at the same time from neither, but on the border of each. Happy, sad, confused, lost but at the same time she tries to cover all her feelings and what she is thinking â€Å"by masking the discomfort† (20) is that she has to grin and bear the fact that she is being condemned for having two nationalities. After reading this poem over and over I can say that I have felt what the speaker mentions in the poem, I have been in her shoes. Yes it’s hard to believe but if you think about it we are all different and at the same time we are all the same. For some people it is hard to accept people of different nationality, but the only thing we can do is to move on. I am Mexican American, also bilingual, with two different cultures, born in America with Mexican parents. I think this poem â€Å"Legal Alien† is a little about racism which is everywhere and it has been around for a long time. I have felt looks from Mexicans and Americans, and to be honest it doesn’t feel that good. But I think that the only thing we can do is to just let it go and live life at the fullest and accept everyone as they are. Race, color, religion, or even language should not matter. In the end, and underneath of it all, we are all the same.

Prevention of Absenteeism in Organisation

How to reduce absenteeism in organisations 1. Identify the causes for an employee’s absenteeism. If you can find out why an employee is consistently absent, then you can deal more effectively with the problem. For example, if an employee is often absent because of issues with childcare, you could offer them the option of more flexible working hours. 2. Implement a thorough record system. For every employee, you should record the date, duration and reason for each case of absenteeism.This way you will have evidence of each absence if you need to refer back to it. 3. Meticulously follow up on each case of absenteeism. You should write a letter recording each case of absenteeism and distribute it to the employee. This will make them aware they are being monitored and make them more likely to think before they take a sick day. 4. Properly inform and regularly update your employees about your standards and policies regarding absenteeism.If you make a change to your absenteeism poli cy, make sure you let your employees know. Even if you don’t make a change, you should still remind your employees regularly of the standards you have in place. You could do this via a company-wide email or memo. Employee absence is a significant cost to 90% of businesses, according to the survey. This section outlines ten tips to help you in managing absence and tackling poor performance in the workplace. Top 10 Absence Management Tips: Create an absence policy and communicate it 2 Record and measure absence 3 Reduce absenteeism by enforcing and managing the staff absence policy 4 Follow employee absence with return to work interviews 5 Proactive absence management – reward excellent attendance 6 Be realistic – plan for unscheduled staff absence 7 Consider unpaid leave or options to buy more holiday time 8 Minimise absence by improving their working conditions 9 Make controlling absenteeism a business priority 10 Keep your staff absence policy up-to-date

Oscar Wilde was the fashion critic and editor of the magazine the Essay

Oscar Wilde was the fashion critic and editor of the magazine the woman's world(1887-1889). Analize this contribution to fashi - Essay Example e, which is not the case because Oscar Wilde did not completely erase the fashion issue but rather refined it by adding more content, because evidently, he only reduced the fashion section from four to two. Prior to Wilde reducing past issues in the magazine and adding up empowering content, Wilde also incorporated women authors who greatly contributed in writing the magazine (Tusan 2005, P.68). Generally, the aim of Oscar Wilde’s transformation was to create a new generation of modern woman who did not have to sit back and watch the men rule over, but instead women who embraced empowerment to battle up with the man in running the businesses of the world through education and other channels of knowledge exposure (Fortunato 2012, p. 34). Nevertheless, Wilde’s effort of empowering the 18th century woman through the â€Å"woman’s world† magazine did not send a positive note to everyone. Though majority never came up to criticize the content in the magazine, t he artists in various fields emerged to criticize the article. Surprisingly, women artists were among the critics who criticized Wilde’s view on fashion. Most of the critics had no issue with women empowerment content because what disturbed them the most was the editor’s negative stand on fashion. The fashion issue arose during transformation of the magazine where the editor reduced fashion content because he believed that it had no much relevance in the woman’s world as men usually perceive. Oscar Wilde’s stand on fashion irrelevance caught the attention of artists like Mary Eliza Haweis, an editor who authorized in connection with fashion, cosmetics, and decoration (Fortunato 2012, p. 37). She argued that fashion should not be side kicked because fashion was an essential form of art that she claims... Historically, the 18th century was an era of male dominance because men viewed women as inferior beings. The reason why women were inferior is that they could not participate in the development of the world’s progress. This was evident through vast arts that portrayed at the time that included Sydney Grundy’s play â€Å"the glass of fashion† that was produced in 1883. Another evidence of women's inferiority in the 18th century portrayed through the manner in which the â€Å"lady’s world† magazine was edited before Oscar Wilde came took over the editorship. Things changed when Oscar Wilde joined the publishing company as the editor of the magazine. The content and the appearance of the magazine never made much sense to him and that is why he transformed every bit of the magazine including its name Oscar Wilde claims that the magazine had no motivational content that concerned women because content mostly contained gossips, music, art, fashion, and ot her common issues. Oscar Wilde could be named as a renowned female reformist who undertook all the challenges in the 18th century literature field to empower the woman into modernity through intense education shunning the old fashion perception pinned on women. This did not mean that Wilde did not have any ideas in fashion and art, nor did he ignore them, because history claims that he was a frequent attended to art galleries and theater.

Management and Organisation individual report Essay - 1

Management and Organisation individual report - Essay Example An institution at its base brings with the standards and behavior of its founders and these become the institution’s cultural features. As the organization grows through time these effects become entrenched into the organization’s property, framing central standards, defining assets needed and the organization’s characteristic persona that describes its intentions, priorities, and routines (Buchanan & Huczynski, 2009). Introduction The culture of an institution has its own inimitable organization culture. Frequently this culture has been advanced by the institution’s founder management. Thus, it may be transformed and affected by the behavior of groups and persons, in addition to external factors. Institutional culture is viewed by academics and practitioners in a similar way as being essential in how the institution achieves its goals and its productive business. Organizational productivity Mullins (1) implies is described in terms of institution’s capability to make sure goal achievement, fulfillments, resource acquisition, identity and devotion of its members, imitations to transformations and fulfillments of external shareholders. Organizations with purposeful interpersonal communication may accomplish a better share definition of the institution and therefore a better communication atmosphere (Dick & Ellis, 2005). 1.0. Organizational Culture Organizational culture is normally the best means to manage as a way of accomplishing success. It is also a significant element of productive organization creation and performance. This view of the significance of organizational culture seems to draw on institutional hypothesis and behavior from a spectrum of sciences including, psychology, sociology and anthropology. An organizational culture encompasses the atmosphere adjoining the institution, prevailing attitudes inside it, motivation, strength of feeling toward it and collective levels of goodwill. Thus, organizational culture an d organizational transformations are frequently entwined with one another. Further organizational culture grows continuously as institutional transformation take place along an intermediary curve. Transformation is normally being implicated specifically by the organization’s leaders to suit their own choices or transforming market processes and in doing so implicates the decisions making process. Culture in flexible and dynamic and can be affected by internal and external challenges including dysfunctional managerial behavior that will impact on the workers in fields such as poor job performance, job dissatisfaction, turnover and burnout (Handy 1993). An institutional behavior that can be identified in institutions, specifically those experiencing transformation is opposition by workers to transformations in the work atmosphere. Whether the institution is experiencing primary reconfiguration or is the process of transformation due to invariable inventiveness and development, workers may pull back and resist transformations, specifically if they do not comprehend the transformations. However the requirement for successful transformation including transformations to mission, vision, culture, communication and leadership all require be achieved, and failure to be accomplished in them all will amount to the entire transformation failing (Mullins, 2011). 1.1. Groups and their

Argument "The Pitfalls of plastic surgery Essay

Argument "The Pitfalls of plastic surgery - Essay Example Camillie proceeds and says â€Å"as cosmetic surgery has become more and more widespread and affordable, it has virtually become a civil right, an equal-opportunity privilege once enjoyed primarily by a moneyed elite who could fly to Brazil for a discreet nip and duck.† This clearly shows that cosmetic surgery is no longer a one class activity but that of anyone who has the finances. Despite the exercise spreading at a high rate, there are many moral questions that crop up. For instance Camillie questions â€Å"is cosmetic surgery a wasteful frivolity, an exercise in narcissism?† This is a question worth being answered. Once a person under goes the surgery, does it waste his or her former beauty? Is it only women who insist on the cosmetic surgery as a result of endemic sexism? This question is directed to women since they are the most customers in these surgeries (Camillie 775-777). However, women are not the only affected sex. Male especially celebrities undergo these surgeries as a way of looking more handsome and therefore attracting more fans. This is a race of the best looking and hence people are forced to undergo the surgery. As Camillie puts it â€Å"all these ethical issues deserve serious attention.† This should be worked on in order to eliminate any discrimination based on the looks. Though the practice is unstoppable, it needs to be improved. The chemicals used should be changed or improved in order to reduce long term side effects. It is not possible for a 50 year old looking like a 20 year old youngster. All this is due to the chemicals used in stopping the skin from shrinking. Also, it should be changed in order to stop instances of young people lacking jobs due to the fact that there are older people looking young at their supposed positions (Camillie 776-777). Am not trying to wipe away the practice as the maximization of attractiveness is justifiable in all societies, but it is worrying in America the way rate of female gender attraction could

Women in Advertising Essay Example | Topics and Well Written Essays - 250 words

Women in Advertising - Essay Example The essay "Women in Advertising" talks about the advertising today is one of the integral phenomena of modern life and the social roles of men and women which they have to carry out. Advertising images are simplified and stereotyped, but in such form they influence people, forcing them not only to buy goods but also reflect in their behavior. In addition to this, very often advertising describes public relations, including gender relations. Simplified nature of sexual roles, forms their similar treatment in the life of each certain individual, this means that, besides the main function (to force the buyer to choose these goods), advertising carries one more function which is social (it creates public relations). Furthermore, advertising transfers the social status or individual feeling concerning the certain product. There you will never hear or see the simple words â€Å"Buy this!†, this may be substituted by the other phrase. In general, they speak about things that you cann ot buy for the money. One cannot deny the fact that the image of a woman from antiquity in all cultures is an embodiment of sexuality and fertility. That is why the majority of the ads are focused on men’s audience, contains an image of the woman: the temptress and fatal beauty with roundish, convex forms. As a rule, women in such advertising show half naked body or its parts in seductive poses that denote an open hint on sex. The romantic image in it has rather a big impact on the audience as it casts thoughts of the finest and strong feeling.

Quality and Information Systems Strategies Essay

Quality and Information Systems Strategies - Essay Example In accordance with the above study, the ability of firms around the world to capture and interpret knowledge is depended on a series of factors; the size of the firm and its financial strength has been proved to be critical factors regarding the ability of a firm to manage knowledge throughout its departments. The various forms of knowledge within modern organizations can be observed in Figure 1 (Appendix) where these forms are set hierarchically in order for the importance to be identified. The effective management of knowledge in modern firms is crucial in order for the various strategic plans developed within a specific organization to be appropriate, i.e. to lead to the achievement of the targets set by the firm’s strategic management team. The above assumption is also supported by Steyn (2004) who stated that ‘successful organisations are knowledge-creating organisations, which produce, disseminate and embody new knowledge in new products and services’ (Steyn , 2004, 615). In other words, gathering, evaluation and distribution of knowledge across modern organization is a highly important part of the organizational activity supporting the development of strategic plans that are effective both in the short and the long term. For this reason, firms of all sizes have tried to establish IT systems that will be able to capture, evaluate and distribute the knowledge required for the ‘smooth’ development of all organizational activities as well as for the growth of the firm in the long term. Establishing the IS required for the development of corporate activities is a challenging task for all managers worldwide – no matter the size of the firm involved. Towards this direction, it is supported by Reid et al. (2004) that managers in modern organizations should have a ‘strategic foresight that can play a significant role in the long term success, or failure, of business

English class journal Assignment Example | Topics and Well Written Essays - 250 words

English class journal - Assignment Example Logos as a means of persuasion refers to using reasoning to convince the audience or the reader. This method of persuasion requires the author to back up the arguments with logical reasoning that can convince the reader. Bono’s Georgetown speech on social activism was a powerful speech that inspired students and many others who attended the function. The speech incorporated the three methods of persuasion discussed above. Logos means of persuasion is quite evident when bono spent over one hour explaining his point â€Å"why it is wrong to give rock stars microphones at higher learning institutions.† Bono’s opening remarks when he jokes about assuming the role of a professor can be cited as ethos. The sense of humor at the beginning made the audience interested on what he had to say in other words likes the character. The manner in which Bono discussed poverty issues was quite moving which captured the audience emotions and this being a good example of pathos as a persuasion means. This made the audience sympathize with the poor in the

Case Study for the Complete Care Repair Research Paper

Case Study for the Complete Care Repair - Research Paper Example Research Problem The research problem has many angles because there are several problems with MindWriter. Some of the problems that have been seen are discussed here: There is a call center that is able to answer questions for customers who have a malfunctioning product. They have an 800 number to call and the call center can answer service, support and ordering questions. Unfortunately these are the only questions they can currently answer. When a person calls in, the call center must take the name, number and address from the customer as well as the Mind Writer model number. The technical representatives with this information will then ask question to understand more clearly the nature of the customer’s problem. They will attempt to resolve the problem on the phone if they can. The challenge is that they cannot answer every inquiry on the phone. Some of the things that need to be researched include: 1. There are employee shortages and training new technical representatives i s time consuming and does not always happen in the time that they are needed. 2. The courier does not always pick up and deliver the products as they have spelled out in the contract with Complete Care Repair. 3. ... Complete Care Repair will need to research to find where the problem really is and do something more to help it. Purpose of the Study The purpose of the study is to define how Complete Care Repair can help MindWriter understand their problems and eradicate them. Some of the issues they will need to understand better in order to help MindWriter include: 1. Check with the courier company and see whether this is the best one for MindWriter to use. 2. Will the repair aspects of Complete Care Repair that include the diagnostic and sequencing areas need to be refined? 3. Does the technical director need more training or is there a need for the staff to have more training in this area? 4. Is there a problem with packaging? Can it be resolved if there is a different type of package created? 5. Is there a need for repair centers closer to where MindWriter operations are or should repair happen on site? These questions will guide the research into how Complete Care Repair can help MindWriter. Research Objectives Then research objectives will be to find out more information about MindWriter in order to help them. Specifically, there needs to be a thorough examination of the entire company in order to identify the problem areas. After Myra and Jason came back from Austin, they were able to identify several areas where there were problems. These areas need to be examined more closely. The research objectives will include: 1. To examine the call center to understand how they work with customers. We will want to identify what is working and what is not working. 2. To examine the packaging to see whether this is the most appropriate packaging or whether there are alternatives that would keep the

Emerging Markets and Financial Regulation Essay Example | Topics and Well Written Essays - 500 words

Emerging Markets and Financial Regulation - Essay Example There were major obstacles that Shiseido faced in its attempt to implement a globalization strategy. The first obstacle was the cultural differences present in the various countries and regions the company wished to enter, especially in Europe and the United States. These countries had very different cultural practices and preferences that were very different from the Japanese cultural practices and preferences and therefore there were very different cosmetic tastes and preferences in these countries. For instance, American consumers were interested in make-up products while Japanese consumers were interested in natural skin beauty. In addition, consumers from the Latin nations within Europe preferred cosmetics that emphasized color. The other major obstacle was the difficulty in entering these new markets due to legislation prohibiting foreign companies investing within the cosmetic industry within their countries. For instance, the cosmetic industry in France was very important hen ce, the government wanted to protect it from foreign competition and control. Shiseido’s international organization and its actual strategy to expand its market globally were successful as it enabled the company to enter new markets and gain considerable market share over the long-term with limited resources. The company was able to enter foreign markets in Asia, Europe, and the United States using novel strategies that were low cost and effective, enabling the company to introduce its products to these new consumer markets.

The impact of the internet Essay Example for Free

The impact of the internet Essay 1. INTRODUCTION The Internet has taken the business community by storm since the early 1990s. When the community realised the potentiality of the Internet they hailed it as the most transforming invention in history. It has the ability to completely change the way business is being done. And, it is doing so at a feverish pace, turning business upside down and inside out (The Economist 1999). Information Technology (IT) experts went on to use the Internet technology to spin off the Intranet and Extranet to enhance business competition. Together with the Internet, their innovative implementations were able to provide competitive advantage for a company. The Internet, Intranet and Extranet collectively have dramatically affected business. A growing number of corporations believe in the technologys potential to lower cost, add value, improve productivity and create new business opportunities (The Economist Intelligence Unit 2001). So much has been written about the Internet, Intranet and Extranet. What exactly are they? What are their impacts on current business practices and activities? This report seeks to address these questions in the Trading Process Network, a business tool that integrates the Internet, Intranet and Extranet technologies. First, the report introduces the Internet, Intranet and Extranet. Then, it goes on to provide a brief description of the Trading Process Network. Subsequently, the study proceeds to critically review the positive and negative impacts of the Trading Process Network on current business practices and activities. It concludes with some key findings resulting from the positive impact and then provides some suggestions to overcome the negative impacts. 2. INTERNET, INTRANET AND EXTRANET. The Internet technology has risen so fast in the last ten years that it is now considered a business necessity. The Star (2004), a local newspaper, published the figure below summarising the history of the Internet. (source: Star 2004) Figure 1: History of the Internet. Presently, business corporations all over the world are scrambling to implement this technology to take advantage of its impact on their business practices and activities. The Internet The Internet is a dynamic group of computer networks that interconnect computers around the globe (Comer 1997). It is a network of networks thus a powerful form of information and communication technology. Figure 2 illustrates the Internet setup. (source: GE Lighting, www.gelighting.com) Figure 2: The Internet network Computers linking to the Internet communicate by using a common Internet protocol to disseminate information across computers (Kambil 1995). Users of the Internet can communicate electronically, retrieve information and interact with other computers. Therefore, Kambil (1995) said that the Internet is basically used for: * Electronic mail and news services * File transfer to and from remote computers * World Wide Web * Telnet the ability to use remote computers The World Wide Web is the information space for storing and retrieving hypertext documents on the Internet through a unique addressing scheme (Schaper Volery 2002). Often, the Internet is known as the World Wide Web or Information Superhighway because of its superior information reservoir. Any information placed on public web servers can be viewed by anyone with Web access using a browser such as Netscape Navigator or Microsoft Internet Explorer (Bullock et al. 1997). The Intranet. The Intranet is an internal corporate communication networks riding on the transmission control protocol / internet protocol (TCP/IP) (Szuprowicz 1997). (source: GE Lighting, www.gelighting.com) Figure 3: The Intranet network It is designed for staff use only and does not to allow outsiders access. The intranet hooks into corporate databases giving the individual users access to all this data through the standard Web browsers that access Web pages on the Internet (Competia n.d. in Knowlegdepoint 2002). Although the Intranet still allows company employees access to the Internet, outsiders are prevented from entering the internal corporate sites by security features (see Figure 3). The Extranet. An extranet is an extension of the Intranet that is partially accessible to authorised distributors, suppliers, customers and business partners (Long and Long 2005). Simply, an extranet is set up on the same TCP/IP network as the Intranet which allows outsiders access to that same internal corporate information (Bullock et al. 1997). Refer to Figure 4. (source: GE Lighting, www.gelighting.com) Figure 4: The Extranet network Like a private business club, the extranet centralises business transaction by using the same user-friendly technology that has made the Internet a global network. Its members can include companies of all sizes located in virtually every corner of the world (GE Information Services 1999). The Hierarchy. The Internet is the conceptual incubator of both intranets and extranets, and universal connectivity has liberated corporate communications practices (Franklin Jr. 1997). Though they are all Internet and Web based technologies, there are differences between them such as: * The type of information each are designed to disseminate * The targeted group of people allow to access the information * Security Table 1 below compares some of the common differences: Information Type Targeted Group Security Internet general general public lacking Intranet corporate employee moderate Extranet specific to business selected outsiders good Table 1: Common differences between Internet and Web based technologies Wailgum (1998, p. 1) appropriately summed up the differences with this statement: First there was the Internet, which is available for everyone to use. Then businesses got smart and started developing their own intranets that used the same friendly Web interface but put up firewalls so that only employees could see the information on the site. Finally, the extranet was created. It finds itself somewhere in between. Theres still a firewall, but you allow only selected outsiders, such as business partners and customers, inside. Following the differences, the structural hierarchy can actually be illustrated as shown in Figure 5 below: (source: Bullock et al. 1997) Figure 5: The Internet hierarchy The Internet, the World Wide Web and Internet-based technologies such as intranets and extranets provide global links to a businesss customers and suppliers. This allows electronic commerce (e-commerce) applications (Schaper Volery 2002). Phil Gibson, director of interactive marketing at National Semiconductor, is blunt about the importance of the Internet, Intranet and Extranet to the applications when he said, Without all the nets, you just cant do that. (Franklin Jr. 1997). 3. THE TRADING PROCESS NETWORK. The Trading Process Network (TPN) is a technology that integrates the Internet, Intranet and Extranet into a package to revolutionise the way  business is done. It is pioneered by General Electric (GE), a well diversified company with business in technology (aircraft engine, plastics, power generators and consumer electronics) and services (financial services, television broadcasting and medical and science services) (General Electric 2004). (source: General Electric, www.ge.com) GEs leadership in management has long been recognised and progressive. Many of its successful business portfolio management, strategic planning, quality initiatives, employee empowerment and business process reengineering are business models for companies worldwide ( 1997). Jack Welch, GE former chief executive officer, anticipated the potential threat of the Internet. He told the MRO Today magazine (Arnold 2001, p. 1) that: Its like any big change. You can look at it in one of two ways: as an opportunity or as something to fear. You have to have a certain amount of fear to see the opportunities. The Internet is all about getting information from its source to the user without intermediaries. The new measurement is how fast information gets from its origin to users and how much unproductive data gathering, expediting, tracking orders and the like can be eliminated. Seeing reality today means accepting the fact that e-business is here. Its not coming. Its not the thing of the future. Its here. The challenge is to resolve issues in the context of the new Internet reality. Tentativeness in action can mean being cut out of markets, perhaps not by traditional competitors but by companies never heard of 24 months ago. GEs challenge is to leverage the Internet technology as a strategic weapon at a corporate level to change its business practices and activities. It started developing the TPN in 1995 as just an internal GE Intranet using an Oracle7.2 database server with a Netscape Communications commerce server and custom software developed by GE. One year later, it developed to include the Extranet. Full integration with the Internet occurred in 1998 when GE, Thomas Publishing Company and Oracle together created a data registry accessible via the web to search out suppliers of such goods or services. The database lists over 60,000 products from about 6,000 vendors and it took six IT people three months to create ( 1997; 1998; Linthicum 1996; 1997; n.d.). Figure 6 shows a typical TPN concept. (source: Bullock et al 1997) Figure 6: A typical Trading Process Network model. Basically, the TPN allows GE to call for tenders and manages bids from suppliers around the world via the web. Using the TPN Intranet software and other standard office applications, GE creates a set of tender documents with a response form. GE then searched the TPN Internet database for suppliers and decides whom it would like to receive a quotation. The tender documentation is forwarded to the list of prospective suppliers through the TPN Extranet. Suppliers who are interested in bidding began to download the call for tender and passed back to the TPN upon completion. GE may then access and evaluate them anytime ( n.d.). The TPN is so successful that many corporations wasted no time in emulating GEs initiative by creating their own version of the TPN. Today, many corporations have implemented the TPN system in one form or another. For example, Tesco developed the Tesco Information Exchange that linked the retailer with all its suppliers to increase product availability and reduce wastage (GE Information Services 1999). Presently, GE is also commercially offering its TPN technology comprehensively to companies around the world ( n.d.). Its global implementation has impacted business practices and activities which shall be discussed shortly. 4. POSITIVE IMPACT OF THE TPN ON BUSINESS. Since the TPN is a collaboration of the three web-based technologies, it is essential to critically review the positive impact of the three technologies on current business practices and activities separately. Many of the evidences presented here are taken from the impact on GEs business practices and activities. This is because as the world most admired company (General Electric 2004), GEs business practices and activities has been acknowledged and adopted globally as role models. The TPN Internet Impact. As an Internet solution to conduct business electronically and simplify business processes like purchasing, selling and marketing, the TPN impacts business practices and activities in many ways (http://www.mngt.waikato.ac.nz/depts/mnss/courses/ 456/cases/geis.htm n.d.). Some of these impacts are listed on the Computing Insights website (, n.d.): * Instantaneous Communication. The Internet establishes immediate communication between companies and their prospects, customers, and employees without waiting and down time. It is a very fast and efficient method of communication, with messages arriving anywhere in the world in a matter of seconds (Schapel Volery 2002). By taking advantage of this the TPN enables GE to evaluate suppliers bids and award within the same day and orders may start arriving to the supplier within 24 hours ( 1997). Speed in despatching specialised information enhances service relationship thus providing superior service (Khambil 1995). * Global Access. The worldwide reach of the Internet opens the door to unlimited business opportunities by instantly placing it in any office or any home. Business  websites are doors to businesses that never close. Information about products and services are accessible anytime. The web is ideal for providing whole year round self-services ( 1998). GE Lightings 46 plants around the world procure materials and parts from more than 25,000 suppliers globally. By utilising the TPN, GE Lighting has electronic access to this list. With only a set of catalogues and documents GE Lighting obtained multiple feedbacks instantaneously ( 1997). Furthermore, the TPN provides global access to Gary Reiner, CIO of GE to monitor GEs mission operations once every 15 minutes across the companys 13 different businesses around the globe with different time zones (Lindorff 2002). * Instantaneous Customisation The Internet keeps businesses in the fast lane by offering goods and services in real time thus providing individual company the ability to tailor to the needs of customers. According to Barua et al. (n.d.), Dell Computer implemented an online supply chain management application which is somewhat similar to the TPN to help its component suppliers increase the accuracy of their forecasts by providing them access to direct customer order information. This way Dells suppliers can customised their products to Dell customers needs. Frantz (2000, p. 2) provided another example from GE Aircraft Engines: GE Aircraft Engines maintenance and overhaul market frequently requires decision on retention, rebuilding or discarding a worn part. Previously, the worn part was sent to the customer to be evaluated or the repairs had to wait until a customers representative could inspect it at GE, often taking many days. Today, a new customised part can be graphically transmitted over the TPN and quickly evaluated by the customer before installation. * New Distribution Channels. The Internet can rapidly reduce the time to market for new products because direct distribution shortens the path to markets. Electronic commerce can be used to find the best deal from distributors in terms of time and cost (Schapel Volery 2002). The TPN is a secure electronic commerce environment that supports the business-to- business buying and selling of goods and services. It provides GE the ability to find new distributors based upon the database records ( n.d.). Home Depot is one such distributor when it set up a TPN form of Internet application that enables GE appliances purchased at Home Depot to be delivered directly to consumers homes from the nearest GE warehouse (Barua et al. n.d.). * E-Shopping The Internet enables many companies to create an electronic shopping environment that enables users to browse, review, select and purchase products instantly. It is a revolutionary business tool, guaranteed to attract new, web-knowledgeable customers who buy everything online (Schapel Volery 2002). This is the TPNs primary solution where the TPN Marketplace provides purchasing professionals access to a searchable catalogue of GE goods and services including pricing and contract terms in a standardised format (Mark 2001). The TPN Intranet Impact. By allowing company staff exclusive access to corporate information electronically, the TPN Intranet positively impacts current business practices and activities. Some of these impacts are mentioned in the  Vialogix website (Vialogix n.d.): * Increase productivity. The Intranet has the ability to increase staff productivity. According to the Vialogix website, many companies have invested in intranets to boost productivity and encourage knowledge sharing. Its to have tools aimed at productivity, at letting employees do their jobs better and more efficiently, says Pam Wickham, e-business public relations manager and manager of GE (USA Today (Tech Report) 2001). Bill Snook, a sales manager at GE Energy Services in Canada said his TPN Intranet sales portal home page is the gateway to all the applications that he has. Anthes (2003, p. 2) reported Snook as saying: Before I used to go from one application to another to search for things randomly and each required a separate sign-on and password. The new portal has made multitasking much more efficient and has increased face time with customers. In May 2001, IBM launched its TPN offshoot known as the WorldJam where its 52,600 employees worldwide convened online to swap ideas on how to work faster without undermining quality (Fast Company 2001 in Vialogix n.d.). * Reduced paperwork. When employees communicate through the Intranet they effectively reduce the amount of paperwork required such as internal memos, invoices and printed company newsletters. Forbes (2001 in Vialogix n.d.) reported that GE processed 3.1 million paper invoices in 2000. Today, half of those invoices are processed digitally. John Rice, the chief executive of GE Transportation system, confirmed this fact when he said that the 1 million pieces of paper GE faxes to suppliers  each year are going to go away (GE Transportation System 2000). * More informed/empowered employees. There are many types of competitive or business intelligence information that can be included on an Intranet. Users can easily navigate and locate this information using the point-and-click hyperlinking technology (Linthicum 1996) to be informed and empowered. General Electric uses the TPN to manage its business intelligence by keeping its globally dispersed workforce informed. In a survey by the Society for Human Resource Management, more than 85% said the intranet is useful for disseminating information (USA Today (Tech Report) 2001) Szuprowicz (1997, p. 7) found out that the information available in the TPN are: Annual report of the company, financial data and business information designed to allow employees to manage their own investments. In addition, GE provides employees direct access to the GE travel centre which allows them to schedule their own business trips. * Savings in expenditure. Companies exploit the inexpensive Intranet web technology for in-house applications. Since the web applications use only a single browser, training is less. Moreover, implementation costs are considerably low due to a single interface, protocol and middleware architecture (Linthicum 1996). In a 1997 survey, American Express discovered the magnitude of the savings (Fast Company 2001 in Vialogix n.d.): It was found that at a typical company where paper still predominated, the average cost of handling a single expense account was #36 or more. After switching to a similar TPN approach the cost reduced to as little as $8 per  account. * Connects users across disparate platforms. The TPN Intranet is a new dynamic client/server application development platform for corporate applications that uses open standards such as TCP/IP, HTTP, HTML, CGI, ODBC and Java to connect heterogeneous database (Linthicum 1996). Venki Rao, an IT leader in GE Power Systems, said that the TPN sales portal software has an open architecture and is flexible, making it especially easy to connect all the different platforms (Anthes 2003). USA Today (Tech Report) (2001, p. 1) reported that after GE revamped its Intranet last year, 10 million visitors a week used it: By connecting all its disparate platforms through the TPN, GE employees can now create personalised pages, read industry-specific news or check the weather. They also can download tax forms and review benefits information. An online marketplace offers discounts on GE appliances, Dell computers and other products.

Constitution in Kenya Essay Example for Free

Constitution in Kenya Essay 1.1 INTRODUCTION The agitation for a new Constitution in Kenya was informed by various past historical injustices ranging from economic, social, cultural and civil to political matters. At the political level, issues on centralized and ironfisted governance kept popping year in year out. The passage of the Constitution of Kenya, 2010 on 4 August, 2010 and its subsequent promulgation on the 27 August, 2010 arguably ushered in a new dawn in Kenya not only in governance but also in the various sectors of the Kenyan society.1 Its adoption has been taunted as the greatest milestone Kenyans have ever achieved other than attaining independence in 1963. 2 The joy at the enactment of the Constitution of Kenya 2010 could not be captured in any other better words than as Justices J. W. MWERA, M. Warsame and P. M. MWILU did in Federation of Women Lawyers Kenya (FIDA-K) 5 others v Attorney General another3 where they stated: Only last year and in our early maritime history we constructed a great ship and called it our new Constitution. In its structure we put in the finest timbers that could be found. We constructed it according to the best plans, needs, comfort and architectural brains available. We tried to address various and vast needs of our society as much as possible. We sent it to the people who ratified it. It was crowned with tremendous success in a referendum conducted on 4th August 2010. We achieved a wonderful and defining victory against the â€Å"REDS†. We vanquished them. The aspirations and hope of all Kenyans was borne on 27th August 2010. We achieved a rebirth of our Nation. We have come to revere it and even have affection for it. We accomplished a long tedious, torturous and painful chapter in our history. We all had extraordinary dreams. It is a document meant to fight all kinds of injustices. It is the most sophisticated weapon in our maritime history. As Kenyans we got and achieved a clean bill of constitutional health. However, the honeymoon is over, it is time to do battle with it.4 However, at the launch of the 2011/2012 Annual Report of the Commission for the Implementation of the Constitution (CIC),5 Mr. Charles Nyachae6 remarked : When Kenyans voted for the Constitution of Kenya 2010, they voted for change and transformation in  the way delegated sovereign power is exercised by government. To achieve good governance, there is need for respect for the rule of law and a leadership that meets the requirements chapter six of the Constitution on leadership and integrity. There is no person or institution that is above the Constitution or is excluded from its requirements. All persons and all state organs are bound by the Constitution and its principles. It is therefore disturbing and a recipe for crisis to have individuals and state organs that have failed to respect the Constitution or the law in any form including judgments of the court. The name for such conduct is impunity and impunity is the antithesis for good governance. Thus, this paper delves into how the National Assembly remains the most blatant manifestation of impunity and impediment to the implementation of the Constitution of Kenya, 2010. In this paper, the term Parliament and National Assembly will be used interchangeably to refer to one and the same institution. 1.2 BRIEF HISTORY OF CONSTITUTION MAKING IN KENYA One of the institutions that were created when individuals entered into civil society is the Constitution. Mr. John Mutakha Kangu7 succinctly explains that having invented a life of civic and or political society, the next realization was the need for some form of law and government to regulate the manner in which human beings dealt with each other.8 He further points out that there was need for rules of engagement which could be used to regulate how members of the society relate, not only with each other but also with the common power.9 The Constitution therefore gives the terms and conditions between the people and the government and the relationship between the people themselves. At independence, Kenya adopted the Independence Constitution under the leadership of Mzee Jomo Kenyatta. The most striking feature of this Constitution was the centralized system of government vested in the Presidency. The Executive dictated what was to happen in the other arms of Government, be it the Legislature or the Judiciary.10 With respect to the Judiciary, the President had the discretion of appointing the Chief Justice and the other members of the superior courts of record.11 It is for this reason that some scholars have argued that the appointment of judicial officers was shrouded in mystery.12 The legislature acted as a rubber stamp for any executive action.13 The agitation for a new Constitution began in  earnest in the 1980’s with demands for expanded democratic space at a time when Kenya was a single party state by law. Most of the civil society and human rights groups demanded the repeal of section 2A of the Constitution that made Kenya a de jure one party state.14 Former president Moi’s government bowed to this demand and amended s.2A of the repealed Kenyan Constitution thus ushering in a new era of multipartyism in Kenya. In the 1992 elections, the opposition was di vided thus ensuring Moi’s retention of power by a simple majority. The Ufungamano Group of 1997 is indicative of a serious demand by civil society groups, human rights activists, opposition leaders and members of the Non-Governmental Organizations (NGO’s) for a new Constitution in Kenya.15 The Law Society of Kenya (LSK), the umbrella regulatory body advocates in Kenya, provided Kenya with visual aid and making of the Model Constitution in November 1994 and the government’s opposition to the re-writing of the Constitution became weaker. However, it did not make a concession.16 The government had no trust in the ability of Kenyan lawyers to draft a Constitution for Kenya. It was on 1 January 1995 that president Moi announced that he was inviting Western Constitutional lawyers to assist the country in re-writing the Constitution. The government however did nothing despite the fact that the pressure for the review to begin was mounting.17 The Western countries were also concerned with the blatant laxity in the government towards Constitutional review yet a lot of agitation for review had been made. In May 1996 when the then United States Ambassador to Kenya, Aurelie Brazeal visited the then Attorney General, the Honorable Amos Wako, he ably convinced the government into conceding that the country needed Constitutional review as a matter of urgency. However despite this concession, no step was taken towards the review process.18 It was in 2000 when the government formed the Constitution of Kenya Review Commission (CKRC) to spearhead the Constitution review process.19 The commission began its work in earnest going all over the country collecting and collating views of Kenyans on the Constitution review process. A National Conference was held at the Bomas of Kenya where a draft Constitution that was a product of intense deliberations, compromises and consensus was agreed upon. However, some persons in the Hon. Kibaki’s government retreated to Kilifi where with help of the then Attorney General, the Honorable Amos Wako, radically altered and mutilated the Bomas draft. In  the referendum carried out in November 2005, the government suffered a humiliating defeat as the proposed Constitution was overwhelmingly rejected. The impact of this development was a cabinet reshuffle that threw out all cabinet ministers who opposed the Constitution. These members formed a formidable opposition group preparing Kenya for the most hotly contested election in the Kenyan history. When elections were held in December 2007, very few Kenyans were anticipating the aftermath of that election. Violence engulfed the country immediately the result for the presidential election was announced on the 30 December 2007 leading to the death of more than 1000 persons and the displacement of thousands of others. Dr. Koffi Annan chaired negotiations aimed at reconciling the two warr ing parties, the Party of National Unity (PNU) led by President Mwai Kibaki and the Orange Democratic Movement (ODM) under the leadership of Hon. Raila Odinga. The negotiations yielded the grand coalition government. The government committed itself to the implementation of all the terms and conditions under which the coalition government was founded as dictated by the National Accord and Reconciliation Act, 2008.20The most reformative of this was the Agenda Four that demanded of the government to carry out comprehensive reforms on land, the Constitution and other sectors of the Kenyan society. The adoption of a new Constitution was therefore top of the agenda of the coalition government. The Constitution of Kenya Amendment Act, 2008 was enacted creating a body called the Committee of Experts (CoE) to lead in the writing of a new Constitution. Participation of Kenyans was also comprehensively provided for in the Act. On the 4 August 2010, the proposed Constitution of Kenya was subjected to a referendum receiving an overwhelming endorsement of 67 % of the voters. The promulgation of the Constitution on the 27th August 2010 indeed ushered in a new dawn in Kenya.21 One of the institutions that were apparently aimed at being regulated is the National Assembly. This was informed by the fact that the institution had been used and by extension allowed itself to be used by the powerful Executive arm to rubberstamp actions that were aimed at either mutilating the Constitution or gagging the rights of Kenyans.22 Even as late as 2003, the National Assembly wanted to impose a Constitution on Kenyans yet the foundation of a civilized society is that sovereignty belong to the people.23 Were it not for the intervention of the High Court, the National Assembly could have arrogated to itself the  power to adopt a new Constitution way back in 2004.24 PART II IMPLEMENTING THE CONSTITUTION OF KENYA, 2010 Many Kenyans sighed with relief when the Constitution was promulgated on 27 August 2010 but a few wise people cautioned that ‘adopting the Constitution is a move in the right direction, implementing it is the big deal.’25 It is noteworthy that one of the major players in the Constitution implementation is the National Assembly.26 The big question that this paper seeks to answer is whether the National Assembly has discharged that noble duty as expected. It will be noted that the National Assembly has confirmed the propositions of Karl Marx who in his theory opined that the rich uses the law to protect themselves. 27 WAYS IN WHICH PARLIAMENT HAS BEEN POSITIVE IN IMPLEMNTING THE CONSTITUTION It would be legally impossible if one was to argue that the National Assembly has done nothing in the implementation of the Constitution for to suggest so would mean the Constitution remains completely unimplemented. This part of the paper highlights the achievements of the said institution which have ensured that the letter and the spirit of the Constitution are effectively and faithfully implemented. 2.1 EXERCISING OVERSIGHT OVER THE EXECUTIVE One of the cardinal duties of the National Assembly is to exercise checks and balances over the other arms of the government in general and the Executive in particular.28 This follows from the foundation of a civilized society in which it was agreed that a government had to be formed so as to ensure protection of the welfare of all members of the society.29 It was however noted that if all the state power was left to be exercised by one person, then the said person was likely to be a tyrant.30 It for this reason that Baron De monthesque vehemently argued for a three-armed government so that each of the arms would be a watchdog over the rest.31 It is for this reason that the Constitution of Kenya provides that the National Assembly manifests the diversity of the nation and represents the will of the people.32 The will of the people is said to have been negated when one arm of government makes decisions that are tantamount to the spirit and letter of the Constitution.33 If there is one act by the Executive that generated more heat in the implementation of the Constitution is the President’s unilateral appointment of the Chief Justice (CJ), the Director of Public Prosecutions (DPP), the Controller of Budget (CoB) and the Attorney General.34 These appointments met strong resistance from the ODM side of the coalition which felt that the Prime Minister was not consulted. The press statement released by Hon. James Orengo tells it all.35 Hon. Orengo maintained that the Prime Minister had not been consulted and this amounted to a breach of both the National Accord and the Constitution.36 The bone of contention went from the legality of the appointments to a debate on the meaning of the word â€Å"consultation.† Those in support of the President maintained that consultations need not result in concurrence, whereas those in support of Hon. Orengo were of the converse position.37 The National Assembly through its chair, the Speaker of the National Assembly, Hon. Kenneth Otiato Marende, restored sanity by declaring that the appointments were unconstitutional as the President had not consulted the Prime Minister as required by the Constitution and the Accord.38 This marked a bold move from the legislature in reminding the executive that the law had to be followed. 2.2 VETTING CONSTITUTIONAL OFFICE HOLDERS It has been pointed out above that the people of Kenya exercise their sovereignty through representation by the legislature. Vetting involves interviews that are meant to ascertain if the proposed candidates satisfy both the professional and integrity thresholds set by the Constitution and the enabling laws.39 Public screening of such high ranking state officers40 such as the Chief Justice has seen improved confidence in the Judiciary. The vetting process has also reduced ethnic and regional imbalance in terms of appointments to public service. It has at the same time ensured gender equality in public appointments.41 Parliament’s Constitutional Implementation Oversight Committee (CIOC) unanimously approved the nominations of Dr. Willy Mutunga and Ms.Nancy Barasa as the CJ and DCJ respectively.42 However, the committee faltered when it came to the appointment of Mr. Keriako Tobiko as the DPP. The Parliamentary Committee on Justice and Legal Affairs rejected Mumo Matemu, Prof. Jane Kerubo Onsongo and Irene Cheptoo keino as the Chairperson of the Ethics and Antic-Corruption Commission and deputies respectively and asked Parliament to do the same. The chairman of the Parliament’s Public Accounts Committee, Dr. Bonny Khalwale tabled documents claiming the Mr.Mumo Matemu had failed to collect sh.2.4 Billion in tax arrears from a company while at the Kenya Revenue Authority.43 This transparent process by the National Assembly marked a departure from the Opaque and non-accountable process of appointments in the past. 2.3 ENACTING LEGISLATIONS One of the major duties of the National Assembly is legislation. Implementing the Constitution demands the enactment of a number of legislations.44 One must give it to the National Assembly for having risen to the occasion and enacted laws at least at the right timelines. Questions have however been raised on the quality of some of those legislations.45 The point to note is the primary level is the enactment and the quality or otherwise of law is a secondary one depending on the lens of the critique. A key achievement of Parliament is the enactment of legislations required under the sixth schedule to the Constitution within the requisite timelines. These are legislations touching on matters of Election, security and devolution implemented according to their requisite timelines. However, the National Assembly extended the period prescribed for the enactment of the bills relating to Public Finance Management, Land and County Government. The extension of time was to allow time for more comprehensive public participation and to address what the respective ministries considered to be contentious issues. By 26 August, 2011 which was exactly a year after the promulgation of the Constitution of Kenya 2010, under the fifth schedule to the Constitution and the agreed schedule of bills, the National Assembly had enacted the following pieces of legislation: the Supreme Court Act, 2011,46 the Independent Electoral and Boundaries Commission Act, 2011,47 the Industrial Court Act, 2011,48 the Urban Areas and Cities Act,49 the Environment and Land Court Act, 2011,50 the National Gender and Equality Commission Act, 2011,51 the Ethics and Anti-Corruption Commission Act, 2011,52 the Elections Act, 2011,53 the Kenya Citizenship and Immigrations Act,2011,54 the Commission on Revenue Allocation Act, 2011,55 the Power of Mercy Act, 2011,56 the Vetting of Judges and Magistrate Act, 2011,57 the Judicial Service Act, 2011,58 the Independent Offices(Appointment) Act, 2011,59 the Kenya National Commission on Human Rights Act, 2011,60 the Commission on Administrative Justice Act, 2011,61 the Political Parti es Act, 201162 and the Salaries and Remuneration Commission Act, 2011.63 PART III PARLIAMENT AS A MANIFESTATION OF IMPUNITY AND IMPEDIMENT TO THE IMPLEMENTATION OF THE CONSTITUTION While Parliament has been instrumental in the production of some key reports and holding the Executive to account, it has however been averse to the processes and institutions which seem to be a threat to their selfish political interests. Having given the achievements of Parliament, hereunder are its chief failures. 3.1 MUTILATION OF THE CONSTITUTION One of the sad stories of Constitution making in Kenya has been the blatant mutilation of the Constitution by the very same authority that is supposed to protect and defend it. Some have argued that the independence Constitution was one of the most progressive Constitutions of the time64 yet Parliament in its intention to amass power and please the Executive amended it severally.65 One of such amendments is the 1982 amendment to the Constitution that made Kenya a de jure one party state.66 The net effect of this amendment was decreased democratic space which subsequently led to curtailment of other rights such as freedom of expression, freedom of  speech, and freedom of association. It is noteworthy that Parliament allowed itself to be used by the executive to propagate the authoritarian agenda. It was a great expectation that the enactment of the Constitution of Kenya on 27 August 2010 would be an incentive to Parliament to live by the spirit of the law. It has however dawned on Kenyans that enacting the Constitution was just a single step in reforming Kenya. The bigger and challenging step is a comprehensive implementation of the Constitution. If the number of sub-standard legislations that have been passed by Parliament is to be used as a test on whether Parliament has truly lived up to its duty to protect and defend the Constitution, then Kenyans have been taken for a ride. For instance, when Kenyans found it fit to include a chapter on integrity in the Constitution, they expected that the Legislative arm of Government would actualize its implementation by passing laws on integrity that would satisfy the requirements of chapter six of the Constitution. However, as Karl Marx in his Marxist theory puts it: the ruling class has continued to use the law to propagate its dominance over the lower class; Kenyan Members of Parliament (MPs) gave a practical application of the Marxist theory67 by watering down the spirit and effect of the Integrity Bill.68 The spirit of the Bill was to ensure that only persons of unquestionable character and integrity are appointed or elected to public offices.69 It is a reasonable presumption that only persons of high integrity will respect, protect and implement the Constitution yet the current Kenyan MPs intend to preserve the status quo70 by ensuring that the law serves them.71 The other legislation that was meant restore sanity by bring discipline in the democratic space in Kenya is the Elections Act. In that regard, one of the historical injustices meted against Kenyans by politicians was the culture of party hopping.72 Party hopping not only encourages indiscipline in political parties but also constrains development of political parties in Kenya. As one of the roles of political parties is to nurture democracy, allowing politicians to join political parties and leave at will is a sure ticket to the road leading to death of democracy in Kenya. S.34(8) of the Elections Act, 2011, required that a member should be in the party list on which s/he intends to contest the elections three months before that list is submitted to the Registrar of Political Parties. In other words, one was to be in the party list by 3 October 2012. However, the amendments by the MPs to s. 34(8) of the Elections Act, 2011 now require parties to submit their lists not later than 4 January 2013. In essence, the amendment means that MPs are free to change political parties until 3 January 2013 which is two months to the elections. The chief mover and champion of the amendment to the Elections Act, Hon. Isaac Ruto, submitted flimsy arguments in support of the amendments. He is one record as having said restricting persons from changing their political parties was tantamount to their rights to freedom of expression and association and if the Elections Act was not amended it would affect MPs and Councilors.73 He stated : Considering the large number of legislators and councilors that may be affected, this provision left unamended is likely to distort if not paralyse these key institutions of governance.74 Reasonable as these arguments may sound, they reflect a failure to understand the import of restricting party hopping. It goes against the principle that one cannot have their cake and eat it at the same time. 3.2 ATTEMPTING TO CHANGE THE ELECTION DATE Article 101 (1) of the Constitution of Kenya 2010 expressly provides that a general election of members of Parliament shall be held on the second Tuesday in August in every fifth year. Kenyans unanimously voted for the Constitution of Kenya 2010 on the understanding that the first general elections under the new constitutional dispensation would be held on 7 August 2012. However, three groups emerged with different dates of the first general election under the new Constitution. The first group was of the view that the date of the election is in the year 2013 and specifically between 15th January 2013 and 15th March 2013.The second group was of the view that the  date of the first elections is on the second Tuesday of August 2012 while the third group favoured an election date between October 2012 and December 2012. Meanwhile, Parliament was in the process of enacting the Constitution of Kenya (Amendment) Bill, 2011which inter alia sought to amend articles 101(1), 136(2), 177(1)(a) and 180(1) so as to alter the date of the next general elections from the second Tuesday of August to third Monday of December. Thus, the Independent Electoral and Boundaries Commission (IEBC) filed in the Supreme Court of Kenya Re Independent Electoral and Boundaries Commission75 seeking an advisory opinion on the date of the general elections under the new Constitution. The Supreme Court considered the matter before it and in its ruling delivered on 15th November 2011 stated, in part, as follows: We will be guided by certain principles which have clearly emerged from the submissions: the High Court is, by Article 165(3) (d) of the Constitution, entrusted with the original jurisdiction to hear and determine any question entailing the interpretation of the Constitution; it is the obligation of the Supreme Court, as the ultimate interpreter of the Constitution to protect and reinforce the conferment of first-instance jurisdiction upon the High Court especially when the matter in respect of which an advisory opinion is being sought, is pending before the High Court; subject to those principles, the Supreme Court will exercise its discretion appropriately, on a case-to-case basis, in accepting requests for an Advisory Opinion. We hereby order and direct as follows: (1) We decline to declare that the Supreme Court has the jurisdiction to render an advisory opinion in the instant matter, but decline in exercise of our discretion, to give such an opinion with regard to the date of the next general election. (2) We reserve the reasons to be set out in a ruling upon notice. (3) Responding to the High Court’s request of 13th October 2011 for directions, High Court Petition Nos. 123 of 2011, 65 of 2011 and 185 of 2011 shall be placed before the Constitutional and Human Rights Division of that Court, for hearing on priority and on a day-to-day basis. (4) The aforesaid petitions shall be listed for mention and directions before the Head of the High Court‘s Constitutional and Human Rights Division on 18th November, 2011.† At the same time, three Petitions were filed at the Constitutional and Human  Rights Division of the High Court with the intention of having the High Court determine the date of the first general election under the new Constitution. The three Petitions were consolidated by the order of Honourable Justice Isaac Lenaola, the Head of the Constitutional and Human Rights Division of the High Court on 18 November 2011 into John Harun Mwau v the Honourable Attorney General and 2 others.76 The three Judge bench77 after considering the submissions of counsels for the petitioners, respondents and interested parties, held inter alia: The date of the first elections under the Constitution is determined by reference to section 9 and 10 of the Sixth Schedule as follows; (a) In the year 2012, within sixty days from the date on which the National Coalition is dissolved by written agreement between the President and Prime Minister in accordance with section 6(b) of the National Accord and Reconciliation Act, 2008; or (b) Upon the expiry of the term of the 10th Parliament on the 5th Anniversary of the day it first sat which is designated by Legal Notice No. 1 of 2008 as 15th January 2008. The term therefore expires on 14th January 2013. The elections shall be held within sixty days of 15th January 2013. (c) The body entitled under the Constitution to fix the date of the first elections within sixty of the expiry of the term of the National Assembly or upon dissolution of the National Coalition by written agreement between the President and the Prime Minister in accordance with section 6(b) of the National Accord and Reconciliation Act, 2008 is the Independent Electoral and Boundaries Commission. In view of the court’s finding on the election date, the court did not find it necessary to express its view on the Constitution of Kenya Amendment Bill, 2011 as it also dealt with other issues that were not germane to these proceedings before the court at that particular moment. As legislature was seized of the matter, it would take guidance from the court’s decision or act within its constitutional mandate as it may lawfully wish to do. The Justice and Constitutional Affairs Minister accordingly withdrew the Constitutional amendments that were hoped to be achieved by the Constitution of Kenya Amendment Bill, 2011 given that IEBC had settled for 4 March 2013 as the date of the first general elections under the new  Constitution. 3.3REFUSING TO PAY TAXES One of the salient features and characteristics of the duties and obligations of Parliament before the coming into effect of the Constitution was the Constitutional right of MPs not to pay taxes.78 The Constitution has now done away with that scenario by expressly providing under Article 210 that every person in Kenya must pay tax.79 The Constitution further expressly prohibits any legislation that waives the duty of every person in Kenya to pay tax.80 Some of the proponents of the non-payment of tax argue that by demanding MPs to pay tax, it would be a violation of their rights under the Constitution. They are of the opinion that the National Assembly Remuneration Act81 had to be amended to obligate them pay the taxes. The Hon. Kenneth Marende, the chief proponent of this argument argued that the law was to be followed if MPs were to pay tax. The opponents of the Mps-crusade of non-payment of tax argued that the Constitution is as clear as a crystal with respect to MPs obligation to pay tax.82 The Government appeared divided on this as the then Justice and Constitutional Affairs Minister, the Hon. Mutula Kilonzo agreed with those who heckled the view that Mps had no obligation to pay taxes until after the first General election is held under the Constitution. Other lawyers such as the Supreme Court Lady Justcie Njoki Ndungu were of the view that Mps were not exempt from paying taxes. The blame must squarely lie on Parliament because they refused to provide leadership on this crucial issue. It is even disturbing because the Speaker joined the bandwagon of those opposed to MPs payment of tax. The refusal to provide leadership and by extension the failure to amend the relevant legislations to give effect to the provisions of the Constitution on payment of taxes amounts to impunity exercised against the Constitution and the people of Kenya. A sober reading and interpretation of the Constitution obligates every  person, MPs included, to pay taxes. The Constitution is the supreme law of the land and all other laws must be consistent with it.83 Similarly, the transitional clauses under Clause 7 of the Sixth schedule which reads; â€Å"All laws in force immediately before the effective date continues in force and shall be construed with the alterations, adaptations, qualifications and exceptions necessary to bring it into conformity with this Constitution.† The effective date refers to the date on which the Constitution was promulgated, that is the 27th August, 2010. The National Assembly Benefits and Remuneration Act is subject to the Constitution hence the MPs have a duty to pay taxes. 3.4 ILLEGAL INCREMENT OF MPs SALARIES AND BENEFITS Parliament has for some time now been the only institution that can decide to hike their pay to preposterous amounts without consulting anybody. With the coming into effect of the Constitution, the power to decide the salaries and other benefits of all state officers has been given to the Salaries and Remuneration Commission.84 Members of Parliament are classified as sate officers under the Constitution hence their salaries must be decided upon by the Salaries and Remuneration Commission. The Mps decided early this year to award themselves with hefty send-off packages amounting to Kenya shillings Nine Million per MP with the pretext that they had the right to such monies as a way of thanking themselves for the good work they have done in the past five years.85 It was with the timely intervention of the President that the taxpayers were spared the burden of paying such lofty amounts of benefits to the Mps. 3.5 SUSPICIOUS REJECTION OF PARLIAMENTARY REPORTS The Kenyan Mps have perfected the art of either amending reports or rejection such reports provided those adversely mentioned in the reports either directly or through proxy give out handouts to the MPs. When Parliament debated on the Parliamentary Report on the Sale of Kenyan Embassy in Tokyo Japan, there were glaring accusations that some MPs had been bribed to kill the report.86 The MPs are said to have taken bribes to amend the Report of the depreciation of the Kenya shilling in which report the Governor of the Central Bank had been adversely mentioned.87 The demeanor of some of the MPs told it all as most of those who are normally perceived as talking on behalf the common mwananchi joined the bandwagon of those who supported the amendments to the Report. If the Mps can stoop low as to take bribes of Kenya shillings 5,000, it must be the worst betrayal of the Constitution. 3.6 DISREGARD OF THE MANDATE OF THE COMMISSION FOR THE IMPLEMENTATION OF THE CONSTITUTION (CIC) AND THE CONSTITUTIONAL IMPLEMENTATION PROCESS The Commission for the Implementation of the Constitution (CIC)88 is a Constitutional mechanism established to monitor, facilitate, co-ordinate and oversee the implementation of The Constitution of Kenya 2010. As provided for in the Commission for the Implementation of the Constitution (CIC) Act, 2010,89 the mandate and functions of CIC is to: monitor, facilitate and oversee the development of legislation and administrative procedures required to implement the Constitution; co-ordinate with the Attorney-General and the Kenya Law Reform Commission (KLRC) in preparing for tabling in Parliament, the legislation required to implement the Constitution; report every three months to the Constitutional Implementation Oversight Committee on progress in the implementation of the Constitution and any impediments to its implementation; and; work with each Constitutional Commission and Independent Offices to ensure that the letter and spirit of the Constitution is respected and; exercise such oth er functions as are provided for by the Constitution or any other written law. Regrettably, a number of bills were approved by the Cabinet and subsequently passed by Parliament without being reviewed by CIC. Also, some of these bills were not subjected to public participation as required by the Constitution. A number of Private Members Bills were also published and subsequently debated in Parliament without review by CIC yet they had a direct bearing on the implementation of the Constitution. 3.7 INCLUSION OF UNCONSTITUTIONAL PROVISIONS IN PIECES OF LEGISLATION AND DISREGARD OF THE  DUE PROCESS There were instances in which Parliament introduced unconstitutional provisions in the bills. A case in point is the introduction of unconstitutional provisions in the County Government Bill 2012, which, subject to the operational command structure set out in the National Police Service Act90 or any other National Security legislation, purported to give the Governor the power to chair the County equivalent of the National Security Council as provided in Article 239 (5) of the Constitution.91 This provision contravened Chapter Fourteen of the Constitution, which places the National Security Council under the National Government. Further, National Security is not among the functions of County Governments as set out in Part Two of the Fourth Schedule to the Constitution, hence there is no County equivalent. PART IV 4.1 CONCLUSION From the introduction, parts II and III of this contribution, it can be deduced that the implementation of the Constitution is not just about the enactment of laws. The principle behind legislative oversight of Executive activity is to ensure that public policy is administered in accordance with the legislative intent, and by inference, the citizens’ aspirations. In this context, the legislative function does not cease with the passage of a Bill.92 It is, therefore, only by monitoring the implementation process that parliamentarians uncover any defects and act to correct misinterpretation or maladministration.93 Implementation involves the promotion of Constitutionalism94 and securing the observance by all state organs of democratic values and principles. The task of implementing the Constitution requires the collaboration and co-operation of state and non-state actors.95 Mr. Charles Nyachae at the launch of the 2011/2012 Annual Report of the CIC observed that the greatest danger to the Constitution is posed by Constitutional organs and state officers who ironically carry the greatest responsibility of implementing it.96 He further observes that it is a Constitutional organ and its individual state officers that seek to pass  legislations that clearly violate the Constitution that they swore to protect and some of the laws that they have passed are enemic to the Constitution. However, Kenyans should be cognizant the fact that article 1 of the Constitution of Kenya vests all sovereign power on the people of Kenya and the sovereign power is to be exercised only in accordance with the Constitution. Kenyans may exercise their sovereign power either directly or through their democratically elected representatives.97 No state organ especially the National Assembly should forget that sovereign power belongs to the people of Kenya and the Constitution is the supreme law of the land. Be that as it may, the implementation of the Constitution brought about increased transparency and accountability on the part of the Legislature as well as the Executive. Increased participation by Kenyans in the development of laws and policies marked a key milestone in the implementation process.98 Public participation in the formulation of public policies is a major gain and represents a paradigm shift from the previous dispensation where most public policies were formulated in a boardroom setup devoid of the people’s input.99 In conclusion, as observed by Mr. Charles Nyachae at the launch of the 2011/2012 Annual Report of CIC, even if we had the most perfect laws in the world, in the absence of a culture of constitutionalism, such laws would be rendered useless and become tools of oppression. All laws, regulations and guidelines on ethics and integrity are of little value if individual Kenyans as well as their leaders fail to ascribe in practical terms to ethical values and principles proclaimed in those instruments. He also observed that in the end, it is a sum total of our individual behavior and character that will reflect the nation’s ethics and integrity. 4.2 RECOMMENDATIONS Though Parliament remains the most blatant manifestation of impunity and impediment to the implementation of the Constitution, there are some steps that can be taken so as to ensure that the Constitution is faithfully and effectively implemented. These steps include: 4.2.1 CIVIC EDUCATION It is worth noting that a greater percentage of the Kenyan population is ignorant of the legislative process as well as the Constitutional implementation process. The same explains why some members of Parliament have on several occasions passed pieces of legislations which they later on admitted that they were not aware of what they were voting for. Civic education among the Kenyan citizenry as well as members of the Parliament will go a long way in creating and increasing public awareness on the opportunities, procedures and the rights relating to participation in legislative policy and other Constitution implementation processes. 4.2.2 INCREASING PUBLIC PARTICIPATION IN THE LEGISLATIVE PROCESSES Public access and participation is envisaged in the Constitution of Kenya, 2010. Article 118 (1)(b) provides that Parliament shall facilitate public participation and involvement in the legislative and other business of Parliament and its committees. However, the clandestine manner in which Parliament has been conducting its affairs especially when it comes to increasing its salary and awarding itself hefty send-off packages is what has caused Kenyans to resort to the streets and camp outside the Parliament with a view of having Parliament change its view. Increased public participation in the affairs of Parliament will ensure transparency and accountability. It will also help in fostering confidence and acceptability of the legislations passed by Parliament. 4.2.3 ELECTING GOOD LEADERS The choice of electing leaders lies in the hands of Kenyans. The leaders that Kenyans should chose in the forthcoming elections so as to represent them should be leaders with proven track records. They should be devoid of corruption and unquestionable integrity. This is because it is only leaders of impeccable characters that will ensure the Constitution is implemented to its letter and spirit. 4.2.4 INCREASED VIGILANCE AMONG THE KENYAN CITIZENRY Kenyan citizens should rise to the occasion and promote a culture of Constitutionalism. They should be relentless in their quest of defending the Constitution. This includes the necessary vigilance which will ensure the faithful and effective implementation of the Constitution to the letter and the spirit. Whenever the citizens feel that certain actions of members of Parliament or pieces of legislations contravene the provisions of the Constitution, they should not hesitate to move to the Court to have such actions or legislations declared null and void. With the reformed and revamped Judiciary, the citizens are assured of a fair and just determination by the courts. 4.2.5 ENSURING ALL DRAFT BILLS ARE REVIEWED BY THE CIC At the launch of the 2011/2012 Annual Report of CIC, the Commission recommended that all draft bills are reviewed by the Commission. This is aimed at ensuring that the Acts of Parliament that are enacted conform to the provisions of the Constitution. It is at the same time aimed at ensuring unconstitutional provisions are not included in pieces of legislation as was the case in the introduction of unconstitutional provisions in the County Government Bill 2012. 4.3 REFERENCES 4.3.1 LEGISLATIONS 1. The Constitution of Kenya 2010. 2. The Repealed Kenyan Constitution. 3. The Constitution of Kenya (Amendment) Act No.7 of 1982. 4. The Constitution of Kenya Review Act No.5 of 2000. 5. The Commission for the Implementation of the Constitution Act No. 9 of 2010. 6. The National Accord and Reconciliation Act, 2008 7. The National Assembly Remuneration Act, CAP 5, Laws of Kenya. 8. The Constitution of Kenya Amendment Act, 2008. 9. The Political Parties Act No.11 of 2011. 10. The Elections Act No.24 of 2011. 11. The National Assembly Remuneration and Benefits Act, CAP 5, Laws of Kenya. 12. The Constitution of Kenya (Amendment) Bill, 2011. 4.3.2 CASES 1. Federation of Women Lawyers Kenya (FIDA-K) 5 others v Attorney General another [2011] eKLR. 2. John Harun Mwau v the Honourable Attorney General and 2 others (2012) eKLR. 3. Re Independent Electoral and Boundaries Commission, Supreme Court Constitutional Application No. 2 of 2011. 4. Rev. Dr. Timothy Njoya 6 Others v Attorney General 4 Others (2004)1 KLR 261. 4.3.3 BOOKS 1. Baron de Montesquieu, (1748). The Spirit of the Laws. 2. Gibson Kamau Kuria, Building Constitutionalism: Defining the Jurists Province and tasks: How to Mobilize a Constituency of Citizens, pp 47 3. Paralegal support Network, The Paralegal’s Handbook. 4. The Kenya Human Rights Commission in Lest we Forget : Faces of impunity in Kenya (2011) 5. Lloyd of Hamsted Freeman, MDA Lloyds Introduction to Jurisprudence (8th ed, 1957) 1129-1199. 6. PLO-Lumumba, ‘Some Thoughts on Constitutional Principles in the Review Process’ in T.O. Ojienda (ed), Constitution Making and Democracy in Kenya, (2003). 7. Prof. Hamilton Okoth-Ogendo, H.W.O. (1996) â€Å"Constitutions without Constitutionalism: Reflections on an African Paradox†, in Zoethout, C.M. et al (eds), Constitutionalism in Africa. A quest for autochthonous principles, Gouda: Quint Deventer , pp 3-25. 4.3.4 JOURNALS 1. Korwa G. Adar and Isaac M Munyae, ‘Human Rights Abuse In Kenya Under Daniel Arap Moi, 1978-2001,’ African Studies Quarterly. The online Journal for African Studies. 2. Mutakha Kangu ‘Social Contractarian Conceptualization of the Theory and Institution of Law and Governance,’ (2007) 2Moi University Law Journal. 4.3.5 INTERNET SOURCES 1. Alphonce Shiundu and Peter Leftie Why Kenyan MPs will not pay tax on allowances yet September 24 2010 at 22:00 Daily Nation Online Edition. Available at http://www.nation.co.ke/News/politics/Why-Kenyan-MPs-will-not-pay-tax-on-allowances-yet-/-/1064/1017710/-/item/1/-/14gkivv/-/index.html. . 2. Alphonce Shiundu , Shakir Shabbir: MPs were bribed to save CBK boss, Saturday Nation. Saturday, March 10 2012 at 22:30. Daily Nation Online Edition. Available at http://www.nation.co.ke/News/politics/Shabbir-MPs-were-bribed-to-save-CBK-boss-/-/1064/1363750/-/item/1/-/x639yvz/-/index.html . 3. John Ngirachu, Vetting: Tobiko scrapes through Thursday, June 9 2011 at 15:02 Online Nation Edition. Available at http://www.nation.co.ke/News/Panel-clears-MutungaBarasa-and-Tobiko/-/1056/1177764/-/ioc088/-/index.html. 4. Justice Isaac Lenaola Public Participation in Judicial Processes .Available ata

Commercial Risk in International Business

Commercial Risk in International Business What is International business ? International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TCN). Well known MNCs include fast food companies such as McDonalds and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next. The conduct of international operations depends on companies objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment. Objectives of International Business: sales expansion, resource acquisition, risk minimization. What are Risk In International Business ? Companies doing business across international borders face many of the same risks as would normally be evident in strictly domestic transactions. For example, * Buyer insolvency (purchaser cannot pay); * Non-acceptance (buyer rejects goods as different from the agreed upon specifications); * Credit risk (allowing the buyer to take possession of goods prior to payment); * Regulatory risk (e.g., a change in rules that prevents the transaction); * Intervention (governmental action to prevent a transaction being completed); * Political risk (change in leadership interfering with transactions or prices); and * War and Acts of God. * The risks that exist in international trade can be divided into two major groups: Economic risks . Risk of insolvency of the buyer, . Risk of protracted default the failure of the buyer to pay the amount due within six months after the due date . Risk of non acceptance . Surrendering economic sovereignty * Political risks . Risk of cancellation or non renewal of export or import licences . War risks . Risk of expropriation or confiscation of the importers company . Risk of the imposition of an import ban after the shipment of the goods . Transfer risk imposition of exchange controls by the importers country or foreign currency shortages . Surrendering political sovereignty  · Exchange rates * Price for which the currency of a country can be exchanged for another countrys currency. Factors that influence exchange rate include (1) interest rates, (2) inflation rate, (3) trade balance, (4) political stability, (5) internal harmony, (6) high degree of transparency in the conduct of leaders and administrators, (7) general state of economy, and (8) quality of governance. Risks in international trade can be divided under several types, such as: Economic risks: * Risk of concession in economic control * Risk of insolvency of the buyer * Risk of non-acceptance * Risk of protracted default i.e. the failure of the buyer to pay off the due amount after six months of the due date * Risk of Exchange rate * Political risks: * Risk of non- renewal of import and exports licenses * Risks due to war * Risk of the imposition of an import ban after the delivery of the goods * Surrendering of political sovereignty Buyer Country risks * Changes in the policies of the government * Exchange control regulations * Lack of foreign currency * Trade embargoes Commercial risk: * A banks lack of ability to honor its responsibilities * A buyers failure pertaining to payment due to financial limitations * A sellers inability to provide the required quantity or quality of goods Others Risks : * Cultural differences e.g., some cultures consider the payment of an incentive to help trading is absolutely lawful * Lack of knowledge of overseas markets * Language barriers * Inclination to corrupt business associates * Legal protection for breach of contract or non-payment is low * Effects of unpredictable business environment and fluctuating exchange rates * Sovereign risk the ability of the government of a country to pay off its debts * Natural risk due to the various kinds natural catastrophes, which cannot be controlled There are many other risks which are the following. (1) Strategic Risk (2) Operational Risk (3) Political Risk (4) Country Risk (5) Technological Risk (6) Environmental Risk (7) Economic Risk (8) Financial Risk (9) Terrorism Risk Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers. Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization. Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable countrys political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets. Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk. Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena. Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area. Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business. Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firms ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms assets are confiscated and that contributes to financial losses. Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries. CASES * October 2006 International Risk North Korea Future Implications International Risk has drawn up a report which explores the strategic thinking of the North Korean regime and their logic for conducting nuclear tests. The report outlines the likely future implications for Asia. * September 2005 International Risk Assessment: INDIA BUSINESS RISK OPPORTUNITIES India continues to establish itself as an emerging global force attracting increasing foreign direct investment. In response to the ever changing business climate, companies need to develop strategies to increase competitiveness and improve profitability. When expanding into new and developing markets, there are various elements that help make the endeavour successful as well as risks which can lead to severe disappointment. With India being touted as the new market and global player, it is critical that companies understand and appreciate both the opportunities and challenges faced by foreign investors. In short, provided companies take appropriate action to, India works. It represents a huge opportunity for the investor who has the appetite for detail, is patient and looks to the long term. International Risk, the premier international risk mitigation and investigation company, provides a strategic assessment on the risks and opportunities for foreign investors entering this exciting market. * May 2005 International Risk Macau Strategic Risk Assessment In the five years since its return to Chinese sovereignty, the former Portuguese colony of Macau has witnessed unprecedented economic growth, driven by huge investment inflows into its gaming and tourist industries and an explosion in visitor arrivals, particularly from the mainland. Whilst there are positive indications as to Macau continuing its growth as a regional gaming centre, much like its new role model Las Vegas, there are nevertheless uncertainties and risks arising from its chequered past as much as from its future under Beijings current benevolent oversight. Understanding these factors is crucial if foreign investors are to mitigate this risk. International Risk, the premier international risk mitigation and investigation company has developed a strategic review of the challenges facing Macau, the opportunities it presents investors, and the risks they could encounter. International Risk has considerable experience in discreetly assisting foreign investors who seek to enter this colorful, yet exciting environment. * April 2005 International Risk Report on China-Japan  § Political and strategic frictions between China and Japan have been growing over the past few years because of deep-seated historical distrust and an accelerating rivalry for regional power and influence between the two countries. But these tensions were previously contained and offset by close economic ties and the sharing of many issues of mutual interest, such as concerns over the rise of a nuclear North Korea.  § This calm in China-Japan relations has been damaged by a perfect storm of controversies that has unleashed pent-up passions among Chinese city-dwellers across the country. The history text-book issue over Japans war-time activity in China, Japans bid for a permanent UN Security Council seat and Tokyos decision to allocate drilling rights in disputed territorial waters are all highly charged emotional issues that strike at the very heart of Chinese popular nationalism.  § While these controversies have propelled Chinese onto the streets in their thousands, the Chinese leaderships decision to allow these anti-Japanese protests to take place is driven by deeper structural issues that suggest China-Japan ties are likely to remain volatile in the longer term. Managing the Risks of International Trade This guide provides information that will help you to put procedures in place to minimise the risks involved in international trade. You should read it if you are responsible for planning and delivering the export strategy in your company. You should make sure that the information in this briefing is read by your sales and marketing force, your finance management team, your credit manager and the sales ledger controller. What types of risks will I have to manage? Customer Risk You will need an assessment of the credit worthiness of your customer. This should include checking the following: à ¢Ã¢â€š ¬Ã‚ ¢ The identity of your customer. Do they exist as a legally established business in the country of import? Are you dealing with someone who has the authority to bind your customer; à ¢Ã¢â€š ¬Ã‚ ¢ The usual period of credit offered in your customers country; à ¢Ã¢â€š ¬Ã‚ ¢ The credit limit you are prepared to offer your customer; à ¢Ã¢â€š ¬Ã‚ ¢ The trading history of your customer. Are they a prompt payer? Have there been any changes to their normal payment patterns? à ¢Ã¢â€š ¬Ã‚ ¢ Are your exports compatible with your customers normal business profile? à ¢Ã¢â€š ¬Ã‚ ¢ Can your customer pay the bill? à ¢Ã¢â€š ¬Ã‚ ¢ Insolvency. Remember that a customers insolvency can involve you in a pre credit risk, where losses can occur if your customer becomes insolvent during the manufacturing process or at any time before or after the despatch of the export consignment. You can obtain the information needed to carry out these checks either yourself or through a reputable credit agency or credit insurer. Country Risk As well as your customer, their country can pose separate risks that you will need to manage. Country risks traditionally fall into five areas: à ¢Ã¢â€š ¬Ã‚ ¢ Sovereign: The willingness or ability of the government to pay its debts. This is affected by the political climate within the country, internal and external threats to the country; international trading performance including balance of payments record; the level of national debt and the amount of foreign exchange reserves. Other political decisions can also frustrate your export sales; these include the imposition of embargoes, tariff or other quotas, and import or export restrictions. à ¢Ã¢â€š ¬Ã‚ ¢ Private: The ability of the private sector to pay for its imports. This situation is affected by the 2 SITPRO Management Guide: Managing the Risks of International Trade state of the domestic economy, the commercial institutions in the country, and the competence of banking and financial services sector. à ¢Ã¢â€š ¬Ã‚ ¢ Natural: Some regions of the world suffer from regular climactic catastrophes (for example annual flooding, drought, earthquakes and other disasters). When these occur they can severely disrupt the operations of both the business sector and the government. à ¢Ã¢â€š ¬Ã‚ ¢ Fashion and Finance: International trading patterns often create a fashionable region or country as an export market. In these circumstances trade finance is often readily available, allowing you to offer good credit terms to your export customers. However, fashions change and countries can quickly go out of favour for both exports and trade finance. à ¢Ã¢â€š ¬Ã‚ ¢ Other: These include transfer risks such as the inconvertibility of the local currency; transaction risks such as late or non-payment, and transition risks for emerging markets where the threats are the effectiveness of the liberalisation programme, failure to complete economic structural reforms and any possible destabilising influences. You can obtain information about country risks by visiting the country and/or by speaking to other knowledgeable organisations such as UK Trade Investment, your local chamber of commerce or one of the major banks. Credit Risk Perhaps the first question you should ask is Can I afford to give my customers credit? To decide how much credit you are prepared to advance you must consider: à ¢Ã¢â€š ¬Ã‚ ¢ The amount of credit outstanding in your trading accounts, both overseas and domestic; à ¢Ã¢â€š ¬Ã‚ ¢ What do you know about your customer and what is the maximum amount of credit you should NOT exceed; à ¢Ã¢â€š ¬Ã‚ ¢ Can you carry any financial shortfall? What will be the impact on your business if your customer delays payment or does not pay at all? à ¢Ã¢â€š ¬Ã‚ ¢ How will you finance the credit period you offer? This means do you have sufficient money to allow you to offer credit terms in export sales contracts as part of your business cycle. Foreign Exchange Risk When you trade internationally you will most likely be dealing in more than one currency. This means you are exposed to fluctuations in the foreign exchange market. You can learn how to manage this risk by referring SITPROs guide on The Foreign Exchange Market. Other risks If you manufacture goods to order you must include in your export strategy a contingency that will help you manage the risk of a frustrated export this is when your customer refuses the goods. You should have a plan to either resell the product to another market or realise a salvage value for your goods. Managing the Risks of International Trade: You must also have procedures in place for the collection of your invoice amount. Under your contract you may have to collect your money in your customers country. This does have its risks as collection maybe more uncertain or expensive, so you will have to consider the legal system in their country. Your contract may, however, allow you to take legal steps to recover your debt in another country, including your own. How do I manage these risks? You can do the job yourself or employ the services of a comprehensive credit management and insurance provider. If you decide, for sound business reasons, to do the job in house then you must have the resources and knowledge to: à ¢Ã¢â€š ¬Ã‚ ¢ gather credit and other trade information about existing, and potential, customers; à ¢Ã¢â€š ¬Ã‚ ¢ research the country and associated risks; à ¢Ã¢â€š ¬Ã‚ ¢ examine the need for credit insurance, identify the most appropriate policy and investigate competitive products and services; à ¢Ã¢â€š ¬Ã‚ ¢ manage the credit insurance policy and maximise any benefits If you decide to go down this route, you will have to consider the financial and other impacts on your business. These include senior management ownership of the credit management strategy; The allocation of sufficient time, resource and money to do the job, and a review of your export catalogue prices. You must remember to include the costs of in house risk management and extending credit terms in your export quotes. Otherwise, a profit can soon turn into a loss as administrative costs eat into your bottom line. What types of risk management and insurance services are available? Classically, these are the approaches adopted by the business sector, based on the pattern of trade of the exporter. Type of business à ¢Ã¢â€š ¬Ã‚ ¢ Supplying goods to markets and customers on a regular basis; à ¢Ã¢â€š ¬Ã‚ ¢ A large one-off sales contract; à ¢Ã¢â€š ¬Ã‚ ¢ The supply of capital or semi-capital goods for major overseas projects; à ¢Ã¢â€š ¬Ã‚ ¢ The provision of services such as surveys or feasibility studies; à ¢Ã¢â€š ¬Ã‚ ¢ Smaller or new exporters. Products and services Depending on your type of business, the following products and services are available to you: à ¢Ã¢â€š ¬Ã‚ ¢ A partnership with a Credit Insurer to identify and assess your business prospects and cover the risks on your exports. The service can be tailored to meet your needs, by covering all Managing the Risks of International Trade. Your sales ledger, or just your accounts with larger customers, or by having a geographic limit, or by product line, or indeed in many other ways; à ¢Ã¢â€š ¬Ã‚ ¢ A specific insurance policy structured for a particular deal. Such a policy will take into account any factors unique to the sales contract which is being covered. Specific policies are ideal for contracts whose size or duration fall outside the normal pattern of your trade. Also they are suitable for the sale of capital or semi capital goods on extended credit. Insurance for individual contracts can be obtained from credit insurance companies but the main supplier of this service, particularly for capital goods contracts, is the Export Credits Guarantee Department (ECGD); à ¢Ã¢â€š ¬Ã‚ ¢ Smaller or new exporters can use a Managed Credit Insurance scheme as a way of contracting-out the credit control functions (obtaining country information, checking customer details and credit limits, chasing overdue payments and making claims). The cost of these services are often included in the premium for the scheme. Where do I obtain these services? You can approach specialist credit management and insurance providers, or your insurance adviser (broker, agent or intermediary). A list of credit insurance companies can be obtained from Association of British Insurers. Details of specialist advisers can be obtained from organisations such as the British Insurance Brokers Association. With their worldwide networks credit insurance companies have years of experience and expertise in analysing and covering the risks involved in international trade. In addition to covering commercial debts and indemnifying you if your customer fails to pay, they can provide you with guaranteed cover which could improve your cash-flow, provide confidence to maximize your export sales and may enhance your borrowing power. The use of credit insurance imposes on your company a disciplined and professional approach to trade risk management. Adopting this solution can help reduce your bad debts, improve your competitiveness in the global marketplace and increase your profitability. Are there any other options open to me? There are other financial solutions to you credit management risks: à ¢Ã¢â€š ¬Ã‚ ¢ do nothing, and carry the risk yourself. The extent of the risk you are prepared to take will determine if this option is appropriate; à ¢Ã¢â€š ¬Ã‚ ¢ Factoring or invoice discounting; à ¢Ã¢â€š ¬Ã‚ ¢ Forfaiting.; à ¢Ã¢â€š ¬Ã‚ ¢ Secured payment terms (for example, Letters of Credit); à ¢Ã¢â€š ¬Ã‚ ¢ Insurance-backed financial packages. Managing the Risks of International Trade How much will it cost me? Like all insurance cover (premises, employers liability, business interruption) you will have to pay for your risk management and insurance services. Policies based on a specific risk are available and premium is usually on a one-off basis. Premium is calculated according to the specific risk in question, credit period offered, your customers country and the duration of the risk from the insurers perspective. There are also credit insurance policies and managed schemes that will cover all of your export turnover. Premium is usually annual and assessed against your estimated insurable turnover (the sales on credit covered). With your credit insurer you will have to agree your target export turnover for any one year. Typically, you can expect to pay between 0.35% and 0.65% for this type of policy, dependent on your products, the number of customers and range of your export markets, your export trading experience, and your own credit management system. As with all insurance cover, you should spend time researching the market and getting quotes from a range of credit insurance providers. The costs quoted are based on typical policies available for small or new exporters wishing to cover sales with fairly short delivery and payment profiles. Costs will rise for specific policies where the horizon of risk for the insurer might be 2 or 3 years as in the case of ECGD cover for capital goods projects. Conclusion Credit insurance is an important risk management tool to help you protect the payment of your overseas accounts and unlock the full potential of your export business. You should carefully consider including it in your global trading strategy. What are the major risks for business? 1. Political risk 2. Economic risk 3. Financial risk What is the risk in the following Countries..? INDIA : In India or country risk tier (CRT) is categories in three types of risks. Political, economical financial risks. * Poverty reduction in India is heavily reliant upon high levels of economic growth, which is likely to return in 2010/11. Political Risk: High à ¢Ã¢â€š ¬Ã‚ ¢ Income disparity in India is significant, as approximately one third of the population lives in poverty. à ¢Ã¢â€š ¬Ã‚ ¢ National security has become a focus in India as some of the major cities have been the scene of terrorist bombings. à ¢Ã¢â€š ¬Ã‚ ¢ The bilateral relationship with Pakistan is strained, and receives worldwide attention. Efforts in recent years to make reparations have been interrupted repeatedly by acts of violence. Financial System Risk: Moderate à ¢Ã¢â€š ¬Ã‚ ¢ The insurance industry is regulated by the Insurance Regulatory and Development Authority (IRDA). à ¢Ã¢â€š ¬Ã‚ ¢ The Indian government is working to align its regulatory and accounting standards with international best practices. à ¢Ã¢â€š ¬Ã‚ ¢ The Indian financial system has fared relatively well during the global financial crisis. Economic Risk: Moderate à ¢Ã¢â€š ¬Ã‚ ¢ India, with a massive population exceeding one billion, is home to the worlds 12th largest economy as measured by gross domestic product (GDP). à ¢Ã¢â€š ¬Ã‚ ¢ Indias information technology sector and business services sector have been drivers of growth as the government has supported development with improvements in infrastructure and regulation. à ¢Ã¢â€š ¬Ã‚ ¢ A notable point of weakness for the Indian economy is the worsening government budget balance. The deficit will likely reach -7.0% of GDP in 2008/09. CANADA: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Canadas economy is developed, with services and manufacturing accounting for the majority of the countrys output. à ¢Ã¢â€š ¬Ã‚ ¢ International trade is vital to the economy as exports represent about 40% of GDP with nearly 80% of those exports going to the United States. à ¢Ã¢â€š ¬Ã‚ ¢ Economic growth in Canada began to contract in the fourth quarter of 2008 and will continue to contract until 2010. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Canada is a high income country with significant natural resources and an established legal system. à ¢Ã¢â€š ¬Ã‚ ¢ Canadas economy is inexorably linked to that of the United States due to the latter countrys geographic proximity, cultural similarities and economic size. à ¢Ã¢â€š ¬Ã‚ ¢ Canadas budget has moved into deficit as the government uses fiscalpolicy to help stimulate the economy. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Insurance companies in Canada can be licensed at a national and/or provincial level. à ¢Ã¢â€š ¬Ã‚ ¢ Federal companies are registered under the Insurance Companies Act of Canada and are regulated by the Office of the Superintendent of Financial Institutions of Canada. USA: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United States economy is the largest and most advanced in the world with gross domestic product (GDP) of more than USD 14 trillion. à ¢Ã¢â€š ¬Ã‚ ¢ The United States has the dual advantage of being rich in natural resources, both agricultural and mineral, but also capable of producing high-end products such as computers and peripherals, medical equipment, pharmaceutical products and military equipment. à ¢Ã¢â€š ¬Ã‚ ¢ The U.S. economy is currently experiencing its worst economic contraction since at least the early 1980s with unemployment expected to reach double digits and GDP reaching negative 3% in 2009. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United States has a stable democratic political system and a strong legal system. à ¢Ã¢â€š ¬Ã‚ ¢ The United States is currently involved in armed combat in Iraq and Afghanistan which has put strain on the relationships between the U.S. and much of the international community. à ¢Ã¢â€š ¬Ã‚ ¢ The U.S. is currently using expansionary fiscal policy to stimulate the economy and this has led to a substantial increase in the budget deficit. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Insurance regulation in the United States is decentralized and handled on a state by state basis. à ¢Ã¢â€š ¬Ã‚ ¢ The financial system in the U.S. is going through a tumultuous period with the government intervention with large corporations such as Bear Stearns, Citigroup and AIG. UK: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United Kingdom (UK) has the second largest economy in Europe behind Germany. Service industries represent three quarters of economic production, particularly financial services and real estate activities. London is a global financial center and businesses there account for nearly half of the countrys financial services industry. à ¢Ã¢â€š ¬Ã‚ ¢ The UK economy entered into a recession in the second half of 2008 as the country has been hit hard by the financial crisis and a declining housing market. The economy is not expected to recover until mid to late 2010 at the earliest. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United Kingdom is a member of the European Union. However, the United Kingdom, along with Denmark, obtained special opt-outs from the Maastricht Treaty which allows them to not adopt the euro unless they wish. à ¢Ã¢â€š ¬Ã‚ ¢ The UK government has taken steps to counteract the effects of the current financial crisis. These steps include partial nationalization of the banking system and implementing several stimulus packages. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The Financial Services Authority (FSA) regulates the UK financial services industries, including insurance. à ¢Ã¢â€š ¬Ã‚ ¢ The UK is widely seen as a major center for international insurance and reinsurance and is home to the London Market, a wholesale market that writes risk around the world. Lloyds of London accounts for over half of the business on the London Market. JAPAN: Economic Risk: Low à ¢Ã¢â€š ¬Ã‚ ¢ Japan, an industrialized and advanced country, is home to the second largest economy in the world behind that of the United States. à ¢Ã¢â€š ¬Ã‚ ¢ Gross domestic product (GDP) growth, which had been weak over the past 20 years, will fall sharply in 2009 as domestic demand and exports contract. The government is responding to the crisis with aggressive expansionary fiscal policies that should result in a return to modest growth in 2010. à ¢Ã¢â€š ¬Ã‚ ¢ Inflation, however, is expected to remain negative until 2011.