Monday, September 30, 2019

Banking Project

INTRODUCTION & HISTORY OF BANKING BANKING [pic] Introduction India cannot have a healthy economy without a sound and effective banking system. The banking system should be hassle free and able to meet the new challenges posed by technology and other factors, both internal and external. In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India.In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main aspects of India's growth story. The government's regulation policy for banks has paid rich dividends with the nationalization of 14 major private banks in 1969. Banking today has become convenient and instant, with the account holder not having to wait for hours at the bank counter for getting a draft or for withdrawing money from his account. Banking in India  in the modern sense ori ginated in the last decades of the 18th century.The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in India is the  State Bank of India, which originated in the  Bank of Calcutta  in June 1806, which almost immediately became the  Bank of Bengal. This was one of the three presidency banks, the other two being the  Bank of Bombay  and the  Bank of Madras, all three of which were established under charters from the  British East India Company. For many years the presidency banks acted as quasi-central banks, as did their successors.The three banks merged in 1921 to form the  Imperial Bank of India, which, upon India's independence, became the  State Bank of India  in 1955. 1. History of Banking in India The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segr egated into three distinct phases: †¢ Early phase of Indian banks, from 1786 to 1969 †¢ Nationalization of banks and the banking sector reforms, from 1969 to 1991 †¢ New phase of Indian banking system, with the reforms after 1991 Phase1The first bank in India, the General Bank of India, was set up in 1786. Bank of Hindustan and Bengal Bank followed. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843) as independent units and called them Presidency banks. These three banks were amalgamated in 1920 and the Imperial Bank of India, a bank of private shareholders, mostly Europeans, was established. Allahabad Bank was established, exclusively by Indians, in 1865. Punjab National Bank was set up in 1894 with headquarters in Lahore.Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. The Reserve Bank of India came in 1935. During the first p hase, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1,100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949, which was later changed to the Banking Regulation Act, 1949 as per amending Act of 1965 (Act No. 3 of 1965). The Reserve Bank of India (RBI) was vested with extensive powers for the supervision of banking in India as the Central banking authority. During those days, the general public had lesser confidence in banks. As an aftermath, deposit mobilization was slow. Moreover, the savings bank facility provided by the Postal department was comparatively safer, and funds were largely given to traders. Phase2 The government took major initiatives in banking sector reforms after Independence.In 1955, it nationalized the Imperial Bank of India and started offering extensive banking facilities, especially in r ural and semi-urban areas. The government constituted the State Bank of India to act as the principal agent of the RBI and to handle banking transactions of the Union government and state governments all over the country. Seven banks owned by the Princely states were nationalized in 1959 and they became subsidiaries of the State Bank of India. In 1969, 14 commercial banks in the country were nationalized. In the second phase of banking sector reforms, seven more banks were nationalized in 1980.With this, 80 percent of the banking sector in India came under the government ownership. Phase3 This phase has introduced many more products and facilities in the banking sector as part of the reforms process. In 1991, under the chairmanship of M Narasimham, a committee was set up, which worked for the liberalization of banking practices. Now, the country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking are introduced. The entire system became more convenient and swift.Time is given importance in all money transactions. The financial system of India has shown a great deal of resilience. It is sheltered from crises triggered by external macroeconomic shocks, which other East Asian countries often suffered. This is all due to a flexible exchange rate regime, the high foreign exchange reserve, the not-yet fully convertible capital account, and the limited foreign exchange exposure of banks and their customers. In ancient India there is evidence of loans from the  Vedic period  (beginning 1750 BC).Later during the  Maurya dynasty  (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another. Colonial era During the colonial era merchants in  Calcutta  established the Union Bank in 1839, but it failed in 1840 as a consequence of the economic crisis of 1848-49.The  Allahabad Bank, established in 1865 and still functioning today, is the oldest  Joint Stock bank  in India, it was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the  Alliance Bank of Shimla. Foreign banks too started to appear, particularly in  Calcutta, in the 1860s. The  Comptoir d'Escompte de Paris  opened a branch in Calcutta in 1860, and another in  Bombay  in 1862; branches in  Madras  and  Pondicherry, then a French possession, followed. HSBCestablished itself in  Bengal  in 1869.Calcutta was the most active trading port in India, mainly due to the trade of the  British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in  Faizabad. It failed in 1958. The next was the  Punjab National Bank, established in  Lahore  in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the  Indian Mutiny, and the social, industrial and other infrastructure had improved.Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian  joint stock  banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitaliz ed and lacked the experience and maturity to compete with the presidency and exchange banks.This segmentation let Lord Curzon to observe,  Ã¢â‚¬Å"In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments. † The period between 1906 and 1911, saw the establishment of banks inspired by the  Swadeshi  movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as  Bank of India,  Corporation Bank,  Indian Bank,  Bank of Baroda,  Canara Bank  and  Central Bank of India.The fervour of Swadeshi movement lead to establishing of many private banks in  Dakshina Kannada  and  Udupi district  which were unified earlier and known by the name  South Canara  ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as â€Å"Cradle of Indian Banking†. During the  First World War  (1914–1918) through the end of the  Second World War  (1939–1945), and two years thereafter until the independence  of India were challenging for Indian banking.The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the  Indian economy  gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: |Years |Number of banks |Authorised capital |Paid-up Capital | | |that failed |(Rs. Lakhs) |(Rs.Lakhs) | |1913 |12 |274 |35 | |1914 |42 |710 |109 | |1915 |11 |56 |5 | |1916 |13 |231 |4 | |1917 |9 |76 |25 | |1918 |7 |209 |1 | Post-Independence The  partition of India  in 1947 adversely impacted the economies of  Punjab  and  West Bengal, paralyzing banking activities for months. India's  independence  marked the end of a regime of the  Laissez-faire  for the Indian banking. The  Government of India  initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a  mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance.The major steps to regulate banking included: ? The  Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). ? In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) â€Å"to regulate, control, and inspect the banks in India†. ? The Banking Regulation Act also provided that no new ban k or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. Nationalization in the 1960sDespite the provisions, control and regulations of  Reserve Bank of India, banks in India except the  State Bank of India  or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the  Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indra Gandhi, then  Prime Minister of India, expressed the intention of the  Government of India  in the annual conference of the All India Congress Meeting in a paper entitled  Ã¢â‚¬Å"Stray thoughts on Bank Nationalization. †Ã‚  The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden.The Government of India issued an ordinance (‘Banking C ompanies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and nationalized  the 14 largest commercial banks with effect from the midnight of July 19, 1969. These banks contained 85 percent of bank deposits in the country. [5]  Jayaprakash Narayan, a national leader of India, described the step as a  Ã¢â‚¬Å"masterstroke of political sagacity. †Ã‚  Within two weeks of the issue of the ordinance, the Parliament  passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the  presidential  approval on 9 August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980.The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged  New Bank of India  with  Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalization in the 1990s In the early 1990s, the then  Narasimha Rao  government embarked on a policy of  liberalization, licensing a small number of private banks.These came to be known as  New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,  UTI Bank  (since renamed  Axis Bank),  ICICI Bank  and  HDFC Bank. This move, along with the rapid growth in the  economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the I ndian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in  India  completely.Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Current period By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sh eets relative to other banks in comparable economies in its region.The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the  Indian Rupee  is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially  retail banking, mortgages and investment services are expected to be strong. One may also expect M, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed  Warburg Pincus  to increase its stake in  Kotak Mahindra Bank  (a private sector bank) to 10%.This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics h ave charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. State Bank of India & Its Subordinates [pic] 1. Introduction State Bank of India  (SBI) is a  banking  and  financial services  company based in India.It is a  state-owned  corporation with its headquarters in  Mumbai, Maharashtra. As of March 2012, it had assets of  US$360 billion and 14,119 branches, including 157 foreign offices in 32 countries across the globe making it the largest banking and financial services company in India. The bank traces its ancestry to  British India, through the  Imperial Bank of India, to the founding in 1806 of the  Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidencies banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India.The  Government of India  nationalized the Imperial Bank of India in 1955, with the  Reserve Bank of India  taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI has been ranked 285th in the  Fortune Global 500  rankings of the world's biggest corporations for the year 2012. SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at  non-resident Indians  (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country. SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.The State Bank of India was named the 29th most reputed company in the world according to  Forbes  2009 rankings and was the only bank featured in the â€Å"top 10 brands of India† list in an annual survey conducted by  Brand Finance  and  The Economic Times  in 2010. History The roots of the State Bank of India lie in the first decade of 19th century, when the  Bank of Calcutta, later renamed the  Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the  Bank of Bombay (incorporated on 15 April 1840) and the  Bank of Madras  (incorporated on 1 July 1843). All three Presidency banks were incorporated as  joint stock companies  and were the result of the  royal charters. These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act; the right was taken over by the Government of India.The Presidency banks amalgamated on 27 January 1921, and the re-organized banking entity took as its name  Imperial Bank of India. The Imperial Bank of India remained a j oint stock company but without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the  Reserve Bank of India, which is  India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The  government of India  recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority.In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the  State Bank of Saurashtra  merged with SBI. SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five y ears later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in  Gwalior State, under the patronage of Maharaja  Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi.In 1985, SBI acquired the Bank of Cochin in  Kerala, which had 120 branches. SBI was the acquirer as its affiliate, theState Bank of Travancore, already had an extensive network in Kerala. 2. Associate banks SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the â€Å"State Bank of† name, followed by the regional headquarters' name: ? State Bank of Bikaner & Jaipur ? State Bank of Hyderabad ? State Bank of Mysore ? State Bank of Patiala ? State Bank of Travancore Earlier SBI had seven associate banks, all of which had belonged to  princely states  until the government nationalised them between October 1959 and May 196 0.In tune with the first Five Year Plan, which prioritized the development of rural India, the government integrated these banks into State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a â€Å"mega bank† and streamline the group's operations. The first step towards unification occurred on 13 August 2008 when  State Bank of Saurashtra  merged with SBI, reducing the number of associate state banks from seven to six. Then on 19 June 2009 the SBI board approved the absorption of  State Bank of Indore. SBI holds 98. 3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1. 77%. ) The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches.Also, following the acquisition, SBI's total assets will inch very close to the  [pic]10 trillion marks. The total assets of SBI and the  State Bank of Indore  stood at  [pic]9,981,190 million as of March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010. Non-banking subsidiaries Apart from its five associate banks, SBI also has the following non-banking subsidiaries: ? SBI Capital Markets  Ltd ? SBI Funds Management Pvt Ltd ? SBI Factors & Commercial Services Pvt Ltd ? SBI Cards  & Payments Services Pvt. Ltd. (SBICPSL) ? SBI DFHI Ltd ? SBI Life Insurance Co. Ltd. ? SBI General InsuranceIn March 2001, SBI (with 74% of the total capital), joined with  BNP Paribas  (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. Nowadays, SBI Life Insurance Co. Ltd ranks among the top and most trusted Life Insurance Companies in India and also abroad. In 2004, SBI DFHI Ltd. (DISCOUNT AND FINANCE HOUSE OF INDIA) was founded with its headquarters in MUMBA I, MAHARASHTRA. SBIDFHI Ltd. is a primary dealer that trades in Fixed income securities (treasury bills, state development loans, government securities, non SLR bonds, corporate bonds) and Short Term Money Market instruments (certificates of deposit, commercial papers, inter-corporate deposits, call and money notice deposits).It is an institution formed by RBI to support the book building process in primary auctions of Government securities and to provide necessary depth and liquidity to the secondary market in Government securities. Reserve Bank of India [pic] The  Reserve Bank of India  (RBI) is India's  central banking  institution, which controls the  monetary policy  of the  Indian rupee. It was established on 1 April 1935 during the  British Raj  in accordance with the provisions of the Reserve Bank of India Act, 1934. The share capital was divided into shares of ? 100 each fully paid which was entirely owned by private shareholders in the beginning. Followin g India's independence in 1947, the RBI was nationalised in the year 1949. The RBI plays an important part in the development strategy of theGovernment of India. It is a member bank of the  Asian Clearing Union.The general superintendence and direction of the RBI is entrusted with the 21-member-strong Central Board of Directors—the  Governor  (currently  Duvvuri Subbarao), four Deputy Governors, two  Finance Ministry  representative, ten Government-nominated Directors to represent important elements from India's economy, and four Directors to represent Local Boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these Local Boards consist of five members who represent regional interests, as well as the interests of co-operative and indigenous banks. 1. Structure Central Board of Directors The Central Board of Directors is the main committee of the central bank. The  Government of India  appoints the directors for a four-year term. The Board co nsists of a governor, four deputy governors, fifteen directors to represent the regional boards, one from the Ministry of Finance and ten other directors from various fields. Governors The current Governor of RBI is  Duvvuri Subbarao.The RBI extended the period of the present governor up to 2013. There are four deputy governors. Supportive bodies The Reserve Bank of India has ten regional representations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. The representations are formed by five members, appointed for four years by the central government and serve—beside the advice of the Central Board of Directors—as a forum for regional banks and to deal with delegated tasks from the central board. The institution has 22 regional offices. The  Board of Financial Supervision  (BFS), formed in November 1994, serves as a CCBD committee to control the financial institutions.It has four members, appointed for two years, and takes measures to str ength the role of statutory auditors in the financial sector, external monitoring and internal controlling systems. Offices and branches The Reserve Bank of India has 4 zonal offices. It has 19 regional offices at most state capitals and at a few major cities in India. Few of them are located in  Ahmedabad, Bangalore,  Bhopal,  Bhubaneswar,  Chandigarh,  Chennai,  Delhi,  Guwahati, Hyderabad Jaipur,Jammu,  Kanpur,  Kolkata,  Lucknow,  Mumbai,  Nagpur,  Patna,and  Thiruvananthapuram. Besides it has 09 sub-offices. 2. History 1935–1950 The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the  First World War. It came into picture according to the guidelines laid down by  Dr. Ambedkar.RBI was conceptualized as per the guidelines, working style and outlook presented by Dr Ambedkar in front of the Hilton Young Commission. When this commission came to India under the name of â€Å"Royal Commission on Indian Cur rency & Finance†, each and every member of this commission were holding Dr Ambedkar’s book named â€Å"The Problem of the Rupee – It’s origin and it’s solution. †Ã‚  The Bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as the Hilton–Young Commission. The original choice for the seal of RBI was The East India Company  Double Mohur, with the sketch of the Lion and Palm Tree. However it was decided to replace the lion with the tiger, the national animal of India.The Preamble of the RBI describes its basic functions to regulate the issue of bank notes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. The Central Office of the RBI was initially established in Calcutta (now Kolkata), but was permanently moved to Bombay (now Mumbai) in 1937. The RBI also acted as Burma's centra l bank, except during the years of the  Japanese occupation of Burma  (1942–45), until April 1947, even though Burma seceded from the Indian Union in 1937. After the  Partition of India  in 1947, the Bank served as the central bank for  Pakistan  until June 1948 when the  State Bank of Pakistan  commenced operations.Though originally set up as a shareholders’ bank, the RBI has been fully owned by the  Government of India  since its nationalization in 1949. 1950–1960 In the 1950s, the Indian government, under its first Prime Minister  Jawaharlal Nehru, developed a centrally planned economic policy that focused on the agricultural sector. The administration nationalized commercial banks and established, based on the Banking Companies Act of 1949 (later called the Banking Regulation Act), a central bank regulation as part of the RBI. Furthermore, the central bank was ordered to support the economic plan with loans. 1960–1969 As a result of bank crashes, the RBI was requested to establish and monitor a deposit insurance system.It should restore the trust in the national bank system and was initialized on 7 December 1961. The Indian government founded funds to promote the economy and used the slogan Developing Banking. The Government of India restructured the national bank market and nationalized a lot of institutes. As a result, the RBI had to play the central part of control and support of this public banking sector. 1969–1985 In 1969, the  Indira Gandhi-headed government nationalized 14 major commercial banks. Upon Gandhi's return to power in 1980, a further six banks were nationalized. The regulation of the economy and especially the financial sector was reinforced by the Government of India in the 1970s and 1980s.The central bank became the central player and increased its policies for a lot of tasks like interests, reserve ratio and visible deposits. These measures aimed at better economic development and had a huge effect on the company policy of the institutes. The banks lent money in selected sectors, like agri-business and small trade companies. The branch was forced to establish two new offices in the country for every newly established office in a town. The  oil crises  in 1973 resulted in increasing  inflation, and the RBI restricted monetary policy to reduce the effects. 1985–1991 A lot of committees analysed the Indian economy between 1985 and 1991. Their results had an effect on the RBI. The  Board for Industrial and FinancialReconstruction, the  Indira Gandhi Institute of Development Research  and the  Security & Exchange Board of India  investigated the national economy as a whole, and the security and exchange board proposed better methods for more effective markets and the protection of investor interests. The Indian financial market was a leading example for so-called â€Å"financial repression† (Mackinnon and Shaw). The  Discount a nd Finance House of India  began its operations on the monetary market in April 1988; theNational Housing Bank, founded in July 1988, was forced to invest in the property market and a new financial law improved the versatility of direct deposit by more security measures and liberalisation. 1991–2000 The national economy came down in July 1991 and the Indian rupee was devalued.The currency lost 18% relative to the  US dollar, and the  Narsimahmam Committee  advised restructuring the financial sector by a temporal reduced reserve ratio as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish a private banking sector. This turning point should reinforce the market and was often called  neo-liberal. The central bank deregulated bank interests and some sectors of the financial market like the trust and property markets. This first phase was a success and the central government forced a diversity liberalisation to diversify owner struct ures in 1998. The  National Stock Exchange of India  took the trade on in June 1994 and the RBI allowed nationalized banks in July to interact with the capital market to reinforce their capital base.The central bank founded a subsidiary company—the  Bharatiya Reserve Bank Note Mudran Limited—in February 1995 to produce banknotes. Since 2000 The  Foreign Exchange Management Act  from 1999 came into force in June 2000. It should improve the foreign exchange market, international investments in India and transactions. The RBI promoted the development of the financial market in the last years, allowedonline banking  in 2001 and established a new payment system in 2004–2005 (National Electronic Fund Transfer). The  Security Printing & Minting Corporation of India Ltd. , a merger of nine institutions, was founded in 2006 and produces banknotes and coins.The national economy's growth rate came down to 5. 8% in the last quarter of 2008–2009  and t he central bank promotes the economic development. Main functions Bank of Issue Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Monetary authorityThe Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. It formulates implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors. Regulator and supervisor of the financial system The institution is also the regulator and supervisor of the financial system a nd prescribes broad parameters of banking operations within which the country's banking and financial system functions. Its objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.The  Banking Ombudsman Scheme  has been formulated by the Reserve Bank of India (RBI) for effective addressing of complaints by bank customers. The RBI controls the monetary supply, monitors economic indicators like the  product and has to decide the design of the rupee banknotes as well as coins. Managerial of exchange control The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Issuer of currency The bank issues and exchanges or destroys currency notes and coins that are not fit for circulation.The objectives are giving the public adequat e supply of currency of good quality and to provide loans to  commercial banks  to maintain or improve the GDP. The basic objectives of RBI are to issue bank notes, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. RBI maintains the economic structure of the country so that it can achieve the objective of price stability as well as economic development, because both objectives are diverse in themselves. Banker of Banks RBI also works as a central bank where commercial banks are account holders and can deposit money. RBI maintains banking accounts of all scheduled banks. Commercial banks create credit.It is the duty of the RBI to control the credit through the CRR, bank rate and open market operations. As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lende r of the last resort by providing emergency advances to the banks. It supervises the functioning of the commercial banks and take action against it if need arises. Detection of Fake currency In order to curb the fake currency menace, RBI has launched a website to raise awareness among masses about fake notes in the market. [pic] [pic] Policy rates and reserve ratiosBank Rate RBI lends to the commercial banks through its discount window to help the banks meet depositor’s demands and reserve requirements for long term. The Interest rate the RBI charges the banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and money supply in the market, it will decrease the bank rate and if RBI wants to reduce the liquidity and money supply in the system, it will increase the bank rate. As of 25 June 2012 the bank rate was 8. 0%. latest bank rate is 7. 75% as on 29/01/2013. Reserve requirement cash reserve ratio (CRR) Every commercial bank has to keep certai n minimum cash reserves with RBI.Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the monetary stability in the country, RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate, [Before the enactment of this amendment, in terms of  Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 5% and 20% of total of their demand and time liabilities]. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to effect a decrease or an increase in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with the RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 4. 75%. ( As a Reduction in CRR by 0. 25% as on Date- 17 September 2012). -25 basis points cut in Cash ReserveRatio(CRR) on 17 September 2012, It will release Rs 17,000 crore into the system/Market. The RBI lowered the CRR by 25 basis points to 4. 25% on 30 October 2012, a move it said would inject about 175 billion rupees into the banking system in order to pre-empt potentially tightening liquidity. The latest CRR as on 29/01/13 is 4% Statutory Liquidity ratio (SLR) Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact.A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities. IN OTHER WORDS ITS A TOOL SIMILAR TO CRR BUT AT HIGHER RATIO In well-developed economies, central banks use open market operations—buying and selling of eligible securities by central bank in the money market—to influence the volume of cash reserves with commercial banks and thus influence the volume of loans and advances they can make to the commercial and industrial sectors. In the open money market, government securities are traded at market related rates of interest. The RBI is resorting more to open market operations in the more recent years.Generally RBI uses three kinds of selective credit controls: 1. Minimum margins for lending against specific securities. 2. Ceiling on the amounts of credit for certain purposes. 3. Discriminatory rate of interest charged on certain types of advances. Direct credit controls in India are of three types: 1. Part of the interest rate structure i. e. on small savings and provident funds, are administratively set. 2. Banks are mandatory required to keep 23% of their deposits in the form of government securities. 3. Banks are required to lend to the priority sectors to the extent of 40% of their advances. Punjab State Co-Operative Bank [pic] 1. Introduction [pic]Welcome to  The Punjab State Cooperative Bank Ltd. (PSCB) Experience a whole new Era of Banking Technology. Where banking is made easier and convenient for our customers. The Punjab State Cooperative Bank provides you with the New Generation banking architecture to progress in the future in an evolutionary manner. Punjab State Cooperative Bank (PSCB) is customer centric. 2. History The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla vide registration No. 720 has a principle financing institution of the cooperative movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it moved in 1963 to its present building at Chandigarh.In the cooperative Banking structure, the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it. It has 19 branches and 1 extension co unters in Chandigarh. There are 20 District Central Cooperative Banks having 804 branches all over Punjab, mostly in rural areas of the State. 3. Profile |THE PUNJAB STATE COOPERATIVE BANK LTD. CHANDIGARH | |ORGANISATION | |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The Punjab State Cooperative Bank Chandigarh  was established on 31 August 1949 at shimla vides Registration No. 720 as a | |principal financing institution of the cooperative movement in the state.It has 19 branches and 1 extension counters in the | |city of Chandigarh. 20 Central Cooperative Banks having 786 branches and 18 Extension Counters in the State of Punjab are | |affiliated with the bank. In the Cooperative banking structure the position of the Punjab State Coop Bank is extremely | |important as a the whole short term credit system revolves around it. This bank ensures that its member central cooperative | |banks follow sound banking practices and observe strict financial discipline. The Central Cooperative Banks are financin g the | |farmers through PACS at the village Level. There is no arena of life where this premier institution has not played its part. |From a farmer, artisan to traders/businessman, everybody has been covered in the fold of this institution. The green, white | |and sweet revolutions in the state of Punjab are some of the major achievement in which this institution has plays a vital | |role. | |The Punjab State Cooperative Bank has already been awarded   â€Å"BEST PERFORMANCE AWARD† from NABARD and NAFSCOB. For the year | |2003-04, Punjab Cooperative Bank has been selected for NABARD’s â€Å"Best Performance Award â€Å" which is based on performance of all| |the SCBs in the country. Similarly our Jalandhar DCCB has also been selected for NABARD’s â€Å"Best Performance Award† out of all | |the DCCBs in the country for the year 2003-04. |OBJECTIVES | |To serve as a Balancing Centre for Cooperative Societies in the State for Cooperative Societies in t he State of Punjab | |registered under the Punjab Cooperative Societies Ac, 1961 for the time being in force. | |To promote the economic interest of the member banks and cooperative societies in the state in accordance with cooperative | |principles and to facilitate the development and funding of any cooperative society registered under the said act. | |To carry on banking and credit business. | |MANAGEMENT | |The present Board of Directors was constituted in May 2005. Now the management of the bank is being looking after by the | |elected BOD. | 4.Organization [pic] 5. Board of Directors |SNO |Name |Designation |Contact No. |Address | |1. |Sh. Avtar Singh Zira |Chairman |0172-5067035 |Makhu Road,  VPO: Zira, | | |S/o Sh. Hari Singh | | |  Distt :Ferozepure | | |Zira | | | | |2. |Sh. Milap Singh S/o |Director |98147-83077 |Khajanewala house,Gobind Nagar,SW Road | | |Sh.Jasbir Singh | | |Amritsar | |3. |Sh. Gurpreet Singh |Director |94172-3778 |95, Model Town ,Phase   3 ,Bhati nda | | |Maluka   S/o   Sh. | | | | | |Sikander Singh Maluka | | | | |4. |Sh. Baljit Singh |Director |97803-00916 |VPO Salempur   P. O Bras, | | |Bhutta   S/o Sh Baldev | | |  Distt.Fathegarh Sahib | | |Singh | | | | |5. |Sh. Ravikiran Singh |Director |97804-00002 |H. No 649, Basant Avenue, | | |Kahlon  Ã‚   S/o Sh. | |97819-00001 |Amritsar | | |Nirmal Singh Kahlon | | | | |6. |Sh. Satwinderpal Singh|Director |98761-08332 |Village Ramdaspur,   | | |Dhat  Ã‚   S/o Sh. Mohan | | |  The.Dasuha  , | | |Singh | | |  Distt. Hoshiarpur | |7. |Sh. Harjit Singh |Director |98140-57531 |Khothran Road , | | |Parmar S/o Sh. | | |  Near J. C. T MillPhagwara ,   | | |Gurbachan Singh Parmar| | |  Kapurthala | |8. |Sh. Tajinder Singh |Director |97806-00019 |VPO Mithukhera   , | | |Mithukhera   S/o Sh. | |   Malot, | | |Gurnam Singh | | |  Distt. Muktsar | |9. |Sh. Dildar Singh S/o |Director |95925-83101 |Vill. Majra Kalan,   P. O. Jadlan ,   | | |Sh. Ranjit Si ngh | | |Distt. Nawanshahr | |10. |Sh. Jarnail Singh S/o |Director |97800-32206 |VPO Kartarpur, Charaso, Distt. Patiala | | |Sh. Hajara Singh | | | | |11. |Sh.Baldev Singh S/o |Director |94631-47642 |VPO Chakla, Chamakaur Sahib, Distt. Ropar | | |Sh. Gurnam Singh | | | | |12. |Sh. Baljit Singh |Director |99889-10417 |H. NO. 621,   WardNo. 11    , DerraBassi, Distt. | | |Karkaur S/o Sh. Gurdev| | |Mohali | | |Singh | | | | |13. |Sh. Kanwaljeet Singh |Director |97799-15100 |H.No 7/250, Shastri Nagar , Batala , Distt. | | |S/o Sh. Raghbir Singh | | |Gurdaspur | |14. |Sh. Sukhdarshan Singh |Director |98765-61261 |The Punjab State cooperztive Agriculture | | |Marar, S/o Sh. Narayan| | |Development Bank Ltd. ,   Sec 17 B , | | |Singh | | |Chandigarh | |15. | |CGM, NABARD |5071431,2604608 |Plot No. 3  Ã‚  , | | | | |  Sector-34 A ,   | | | | | |  Candigarh. | |16. | |Financial |2742771 |Cooperation Dept. | | | |Commissioner | |  Civil Sectt ,   | | | |Cooperation, Punjab | |  Punjab Chandigarh | |17. | |Principal Sectary | | | | | |Finance | | | |18. |Registrar, |5046814 |RCS , Punjab , | | | |Cooperative | |  Sector-17 Bays Building , | | | |Societies, Punjab | |  Chandigarh | |19. |Sh. Kamaljeet Singh |Managing Director |5061404 |Punjab State Coop. Bank Ltd. | | |Sangha |PSCB Chandigarh | |  SCO: 175-187,   | | | | | |  Sector-34A, | | | | | |  Chandigarh. | 6. AWARDS & ACHIEVEMENTS AWARDS   | |The Punjab State Cooperative Bank has already been awarded â€Å"BEST PERFORMANCE AWARD† from NABARD and NAFSCOB. For the year | |2003-04, Punjab Cooperative Bank has been selected for NABARD's   â€Å"Best Performance Award † which is based on performance of | |all the SCBs in the country. Similarly our Jalandhar DCCB has also been selected for NABARD’s â€Å"Best Performance Award† out of| |all the DCCBs in the country for the year 2003-04. | |   | |ACHIEVEMENTS   | | | |S. T. AGRI.LOAN | |The Cooperativ e Banks in the State have advanced Rs. 7536. 33 Crores as ST Agri. Loan during the year 2009-10 as compared to | |Rs. 5894. 28 crore during 2008-09. Similarly during 2010-11, Rs 8497. 15 crores stand disbursed. Against the target of | |Rs. 8300. 00 Crores. | | | |R. C. C. LIMIT | |During 2009-10 the Central Coop. Banks in Punjab have sanctioned R. C. C limits worth Rs. 2296. 62 crores  as compared to | |Rs. 2091. 75 crore of 2008-09.During the year 2010-11 the bank has sanctioned RCC limits worth Rs. 2460. 79 crore. | | | |TWO WHEELER LOANS TO AGRICULTURISTS | |Under Two Wheeler Loan Scheme the farmers can take loan up to 75% of two-wheeler’s cost or Rs. 50,000/- whichever is lower | |from the Central Cooperative Banks. During the year 2009-10, the Bank has advanced a sum of Rs. 32. 67 crore. Similarly, during| |2010-11, Rs. 29. 70 crore has been advanced against the target of Rs. 40. 00 crore. | | |HOUSING LOANS | |During the year 2008-09 Central Cooperative Banks in th e State have advanced Rs. 90. 66 Crores against the target of Rs. 80. 00 | |crores. | |During 2009-10, Rs. 86. 64 crores has been disbursed against the target of Rs. 110. 00 crore. During 2010-11 Rs. 84. 56 crore has | |been disbursed . | | | |NON FARM SECTOR LOANS | |During 2008-09 Rs 47. 72 crores were advanced under the scheme by DCCBs in the State of Punjab. | |During the year 2009-10, Rs. 48. 84 crores has been advanced. | |Similarly during 2010-11, Rs. 41. 93 crore has been advanced against the target of Rs. 55. 00 crore. | | |LOAN FOR CONSUMER DURABLES | |Under  Consumer  Durables Loan Scheme, Rs. 79. 62 crores  has been advanced during 2009-10. Similarly, during 2010-11, Rs. 78. 25 | |crore has been advanced against the target of  Ã‚  Ã‚  Ã‚   Rs. 80. 00 Crores . | | | |PERSONAL LOAN SCHEME | |Under Personal Loan Scheme, the Bank has advanced Rs. 143. 58 crore during the year 2009-10 against the target of Rs. 125. 00 | |crore. During 2010-11, Rs. 62. 41 crore has been disbursed  against the target of Rs. 150. 00 crore. | | | |DEPOSIT MOBILIZATION | |The deposit of Punjab State Coop. Bank and Central Cooperative Banks were Rs. 9819. 09 crores during the year 2009-10. During | |the year 2010-11 the deposits are Rs. 10684. 54 crore. | | | |PROFITS | |During 2010-11, there was a profit Rs. 65. 17 crore whereas 2 DCCB, namely; Faridkot and Mansa were in loss. | | |REDUCTION IN THE RATE OF INTEREST | |Rate of Interest on Crop Loan has been reduced to 7. 00% w. e. f. 01-04-2006. | 7. Future Planning and Vision |  Future Perspective | |Cooperatives are not unaffected by structural adjustments and globalization of commodity market. As a result, Cooperative Banks| |are required to redesign their strategies for sustainability and growth. The economic reforms initiated by the government of | |India in 1991 have affected the Financial Institutions ncluding the Cooperative Financial Institutions. These reforms aim at | |liberalization and deregulati on of Indian economy. | |The Cooperative Banks of Punjab have accepted the reforms in Indian economy, especially, the financial reforms in right spirit. | |Since these Banks have mainly been providing credit to agriculture sector, changes in agricultural economy affect them more | |closely. The Banks envisage following scenario as a result of liberalized agricultural policy : | |Liberalization of agricultural policy would result in greater capital intensity and borrowed capital requirements of | |agriculturists.In order to induce diversification and produce quality products for international market. For this purpose, | |Punjab farmers would need greater credit support for improved technology, seeds and agro-inputs. | |Liberalized agricultural policy would reverse the process of fragmentation of land holdings and would result in exodus of | |employment opportunities from agricultural sector to other sectors of economy. Such as small business enterprises, services and | |industrial se ctor. | |Liberalization of agriculture would professionalize and modernize agriculture, thereby earning a status of industry attracting | |high skilled professionals in agriculture sector. |Liberalized agricultural economy would lead to a greater role of private research and development institutions in improving the | |productivity and quality of agricultural operations. | |The liberalized agricultural policy would result in greater thrust on value addition in agriculture. Therefore, a great deal of | |thrust would be on agro-processing units. | |The liberalized agricultural policy would bring greater thrust on export of raw and value added agro-products. | |The liberalized agricultural economy would lead to sowing/planting of new crops. Leading to a great deal of crop | |diversification. | |With this perspective, the Cooperative Credit Policy, both for short-term and long term requirements of the farmers, needs to | |be restructured.Accordingly, the Cooperative Banks in the State r esolve to pursue credit policy in keeping with the | |following. | Vision ? We will force the future challenges with grit and take every possible step for the development of our institution. ? More steps will be taken to provide efficient services. ? Present customers will be retained and other customers will be attracted to increase market share. ? Bank will attract maximum deposit (especially low cost deposit) to strengthen its financial resources so as to reduce its dependency upon NABARD. ? Bank while diversifying its loan portfolio will provide medium term and long term loans to the maximum extent. Every effort will be made to open account of all the farmers of the State. Bank will receive deposits from Farmers and meet all their credit needs. ? Bank, for the sake of development of State, will strive hard to provide maximum and better services to customers especially farmers and for this wherever necessary, every effort will be made to modify the schemes. ? Bank will prepare it s business plan every year and by implementing it, goals set will be achieved. ? Bank will professionalize and modernize the business. 8. Training Center [pic] Introduction Agriculture  cooperative Staff Training Institute in the State of Punjab was established in 1986 by the Punjab State Cooperative Bank Ltd.With the Financial assistance from National Cooperative Development Corporation Under World Bank –NCDC Project. The main aim of setting up this institute was to provide training to the staff and committee members as well as education to the ordinary members of the Primary Agricultural Services Societies (PACS) during the project period of 5 years. After successfully completion of the Project the institute started catering to the training needs of the whole short term credit cooperative in Punjab [particularly cooperative banks from 2001. The institute is running various training programmed for different categories of staff of cooperative bank.The Punjab State Cooperati ve Bank is giving high priority for the training of its staff as well as staff of its member banks. The institute is getting full support from the bank in the field of training. The institute is acting for the development of a cadre of professional bankers to meet the challenges of changing banking scenario. Since 1991, there has been tremendous change in banking sector which had affected cooperative bank to a great extent. The Tara pore Committee, Narsimham Committee and Vaidyanathan Committee recommendations have put profound challenges to cooperative banks. The technological changes in the banking sector are also affecting these banks.This institute is aware of these transformations and has geared up its training plans. The training institute of Cooperative banks cannot remain passive but must play an active role in providing consultancy, latest knowledge and skills to cooperative banks. Acting as a catalyst in the change process, this institute has decided to diversify its activ ities to face the challenge of time. Objective ? Sensitizing the   banks of the challenges ahead and to prep[are the employees to meet these challenges ? Improving the operational efficiency of cooperative bank. ? Building up the managerial and leadership abilities among the officers for organizational effectiveness. TRAINING NEEDS ASSESSMENTThis institute assesses the training needs of the staff in the following ways. 1. Anticipation of the latest Development –  Latest developments in economic and banking sectors (Capital Adequacy Norms, Asset Liability Management, Prudential Norms, and Recommendation of various Committees) are considered as Training requirement. 2. Demand from Central Cooperative Banks –  Various central cooperative banks at different occasions approach the institute to provide training to their staff in specific area. On the request of those banks the institute conducts field programmers as per the convenience of the client banks. 3. Policy ma tters of Management  Ã¢â‚¬â€œ The institute keeps in touch with the olicy decision of the Reserve Bank of India, NABARD central Government RCS and Apex Bank Management, Institute develops and organizes training programmed for effectives implementation of these decisions. 4. Faculty Members Visit  Ã¢â‚¬â€œ Faculty member of this institute frequently visit cooperative banks at different intervals to study operational problems of the banks and to identify the training needs of the staff. 5. Audit Reports and Inspection Reports  Ã¢â‚¬â€œ These reports do provide useful indication for the training needs in banks. We continuously study these reports to find out procedural gaps and problems of the banks. COURSE DESIGN The training programmers are designed by conducting a critical analysis of training needs of Bank Staff.Each member of faculty is advised to design at least two training programmers in a year. The training programmed along with detailed course contents prepared by them is then discussed in a faculty meeting. In this meeting the members of faculty meeting. In this meeting the members of faculty share thei

Sunday, September 29, 2019

An Educated Citizenry is essential to maintain Democracy Essay

In order to establish a concrete opinion on whether or not an educated citizenry is necessary to maintain a democracy, its meaning and definition should be well-understood. B y knowing the definition of educated citizenry and democracy, a link can be established as to its relationship and a learned analysis and concrete conclusion can be achieved. Democracy entails governmental processes that enable the citizens to exercise their right and power, through their duly elected representatives, to influence the enactment of policies implemented by their respective States. This means that democracy is both a right and a privilege. It is a right in the sense that the people have a say on what the government should do through the representatives they have elected. Democracy is a privilege mainly because a citizens, there is a need to exert effort to ensure that democracy is kept protected. On the other hand, an educated citizenry would entail having the educational background, intelligence and understanding that would allow them to analyze and understand concepts that pertain to policies and governmental affairs. Simply put, an educated citizen is a learned individual who knows when to assert his or her rights at the right time. Educated citizenry equates to broad-mindedness There is nothing more to say when you are dealing with a narrow-minded individual. This alone is reason enough to say that educated citizenry is very important. For democracy to work there is a need to be open-minded about things and be able to listen for the opinion of others. In order for Democracy to be maintained, and efficiently carried out, the citizenry needs representatives. It follows that the representatives would have to belong to the citizenry. In this case, the citizenry should be well-equipped to decipher who should represent them. That representation embodies the will of the citizen, and should be occupied by an intelligent, well-educated individual. As a representative of the citizens, it is but right to possess these qualities since the representative is the citizenry and vice versa. Given these reasons, it is but right to say that an educated citizenry is necessary to maintain democracy. This is attributable to the fact that with an educated citizenry, there can be established a harmonious relationship among individuals who understand and know the set rules and regulations and from there set to follow these rules, thereby creating a well organized government, essential for democracy. Educated Citizenry precedes Democracy In order for democracy to be firmly inculcated in the system of government, it is necessary that the people who intend to have a democratic government understands its concept and how it works. This inevitably means that individuals who are educated, knows the rights and obligations that need to be set and the laws that would govern the land should initiate the establishment of democracy. This translates to the fact that the framers of the law know what democracy is before they can even begin to conceptualize the idea of a democratic government. An educated citizenry becomes the foundations of a well-established democratic institution, thus its importance should not be neglected.

Saturday, September 28, 2019

An Exploration of the US Bombing of Hiroshima and Nagasaki

An Exploration of the US Bombing of Hiroshima and Nagasaki Was the United States Justified in Using the Atomic Bomb? On August 6, 1945 the United States dropped the first atomic bomb on the Japanese city, Hiroshima. To this day, this has been a controversial military strategy. Those who believe that the U.S. was justified in using the atomic bomb argue that more lives were saved, and that the Japanese’s vigor and willingness to fight to the death forced the U.S. to extreme measures. On the other hand, those who thought using the atomic bomb was unjustified argue that the atomic bomb violated the principles of war, that it did not end World War II (WWII) sooner and it was not the ideal choice to use for WWII. Looking at proponents of the United States’ usage of the atomic bomb such as Hugh A. Halliday and Richard Frank, military historians, and Michael Kort, a professor of Social Science at Boston University, as well as opponents including policy analyst, John Siebert, Martin J Sherwin, a professor at George Mason University, and Tsuyoshi Hasegawa, a professor emeritus of History at th e University of California we intend to evaluate and summarize both sides of the discussion as to whether the United States was justified to drop the atomic bomb. Proponents of employing the atomic bomb argue that had the atomic bomb not been dropped and the original ground invasion was implemented more lives from either side would have been lost. Japan’s unwillingness to surrender forced the United States to the point that they did not know what it would take to end the war. To discuss these points, we will look at the arguments from Hugh A. Halliday, a military historian who served in the RCAF’s Air Historian, Canadian Forces Directorate of History, and Canadian War Museum, Michael Kort, a professor of Social Science at Boston University, and Richard B. Frank a military historian who served almost four years in the United States Army. Japan had an ingrained conviction that the purpose of life was to die for the Emperor which was seen in not only her militants but also in her civilians with civilian causalities ranging from 42,000 to 150,000 dead from suicide or battle. Ground invasion of Japanese home islands was an option that the U.S. government considered. However, estimates from General Douglas MacArthur, in favor of ground invasion, curbed the numbers to roughly 130,000 casualties; however, this did not include the 300,000 Allied prisoners of war (PoWs) nor the enemy civilian casualties. In addition to the ground invasion and bombardment, the U.S. planned to utilize a blockade that was projected to cause famine, ensuing thousands of civilian deaths. Though roughly 200,000 people were killed thru the atomic bomb, it was still the morally preferred choice compared to the estimated deaths via an invasion. However, Michael Kort argues that it was never about deciding to use the atomic bomb versus implementing a ground invasion, but rather what it would take to have Japan surrender. The United States had been bombing Japan for three years prior to the Potsdam Declaration. She had already suffered an estimated 806,000 casualties in Okinawa and Tokyo. And yet when the U.S. had the Potsdam Declaration that gave Japan a chance to surrender, she not only chose to ignore it but also sought negotiations with the Soviet Union, to the extent of bargaining alliance benefits. Thus, the United States hoped that the sheer destructive power of the atomic bomb could persuade Japan to surrender and thus put an end to WWII. Advocates against utilizing the atomic bomb contend that it was a violation of the principles of war as well as the Geneva Protocol, which banned the usage of chemical weapons in war. Furthermore, in response to the belief that the atomic bomb lead to the shortening of WWII, the reason that Japan surrender was because of the USSR declaring war against her as well as invading Japanese-occupied land. In addition, had the United States adjusted the Potsdam Declaration, Japan would have been more inclined to agree to its terms. In order to analyze these arguments, we will discuss the points of John Siebert, a policy analyst who served in the Department of Foreign Affairs and Human Rights and Aboriginal Justice with the United Church of Canada as well as a consultant to government and non-governmental organizations, Martin J. Sherwin, a Pulitzer winner and professor of History at George Mason University, and Tsuyoshi Hasegawa, a professor emeritus of History at the University of Californi a. Arguably there are principles of war that are commonly agreed upon such as not directly targeting non-military establishments and non-militants. However, the United States knowingly targeted civilian cities, Hiroshima and Nagasaki. And had Henry L. Stimson, former U.S. Secretary of War, not opposed the Target Committee, they would have chosen Kyoto, the center of Japan’s civilization for over a thousand years. Moreover, after the practice of mustard gas as well as other chemical weapons in World War I, the Geneva Protocol was created and signed by members of the League of Nations, banning the use of chemical weapons in war. But though the United States was aware of the radiation poisoning that would occur from the atomic bomb, it was still deployed. By exploiting the atomic bomb, the U.S. indicated that nuclear arms were valid weapons of war. Aside from the moral discretions of implementing the atomic bomb, the argument that the atomic bomb led to the end of WWII sooner is invalid. Because the USSR declared war against Japan and invaded Japanese-controlled land, Japan could not ensure success in fighting both fronts and thus surrendered. Ward Wilson, Senior Fellow and Director of the Re-thinking Nuclear Weapons, remarked that Japanese leaders said it was the atomic bomb that led to their surrender as it was less embarrassing to lose against a miracle weapon. Not only that but Japan’s military officials argued that they could convince the USSR to negotiate for better surrender terms than the unconditional surrender in the Potsdam Declaration. However, with the declaration of war, they no longer had a case to continue the war. Along with this, had the United States adjusted their Potsdam Declaration to indicate that the Emperor would not be held liable for the war under the unconditional surrender then perhaps Japan would have agreed. This is because her term for surrender was to preserve their imperial system and Japan was already known to hold her Emperor to a high-degree. Though Secretary of War Stimson did recommend this adjustment; unfortunately, Secretary of State, James Byrnes, vetoed it. Though the amendment was attempted yet vetoed, the U.S. could have invited the USSR to sign the Potsdam Declaration in doing so would show Japan that she could not rely on the USSR to aid her. Supporters of using the atomic bomb argue that the bomb saved more lives than the planned ground invasion and because of Japan’s disinclination to surrender the war despite heavily unfavorable odds provoked the U.S. to undergo drastic measures. Japanese people’s disposition to perish for their Emperor was unsettling and led to a high civilian casualty even prior to considerations of dropping the atomic bomb. This temperament to die rather than to be a prisoner is one of the teachings in bushido, a samurai heritage and code of ethics. The Japanese were taught from a young age bushido and to worship the Emperor, a descendent from the Sun Goddess. Because of this contempt of being PoWs, many times the Japanese would fight until they were killed or committed suicide. American soldiers would witness the horror of Japanese mothers holding their children and choosing to jump to their deaths rather than to be taken as prisoners. The U.S. estimated that a ground invasion would not only lead to losses on the Allied powers but also to a high casualty rate due to the extreme devotion the Japanese had to their Emperor. The Joint Chiefs of Staff assessed that the United States would experience 1.2 million casualties for the entire ground invasion operation, while personnel in the Navy Department estimated 1.7-4 million casualties (Trueman). These estimates were significantly larger than the roughly 200,000 people killed by the atomic bomb. Not known at the time, it was later found that the Japanese Army had trained a civilian militia of around 28 million men and women to defend the home islands should a ground invasion occur (Giangreco). A year after the dropping of the atomic bomb, Karl T. Compton, a member of Truman’s Interim Committee — â€Å"a committee to advise the president about matters pertaining to the use of nuclear energy and weapons† (Harry S Truman National Historic Site)  interviewed a Japanese Army officer asking him if they could have repelled Operation Downfall to which the officer responded â€Å"†¦ I do not think we could have stopped you.† When asked what the Japanese would have done, the officer responded â€Å"We would have kept on fighting until all Japanese were killed, but we would not have been defeated,† in which defeat meant the disgrace of surrendering (Compton). Not only that but the Japanese imperial system was corrupted by the influence of military officials who strongly desired to continue fighting despite the extremely detrimental predicament the country was in. Despite suffering 806,000 casualties in Okinawa and Tokyo, when the U.S. issued her Potsdam Declaration, Japan chose to try and invoke the aid of the USSR, who had a delicate relationship with the United States. And after the atomic bomb dropping on Hiroshima and given a three-day grace period to respond, significant Japanese military officials thought it unlikely that the U.S. would have another bomb. Even when Nagasaki was bombed, military officials refused to accept surrendering though the Emperor now suggested to accept the U.S. terms. It was not till days of continuous bombing after the atomic bombs usage that the Emperor firmly declared that Japan would indeed surrender the war. Thus, though there may have been implications of the Japanese surrendering, it was unlikely that they would have surrendered given the military’s obstinacy. That said those against the United States exploitation of the atomic bomb dispute that the United States not only violated the Geneva Protocol and principles of war but also legitimized the usage of the atomic bomb in wars to come. Though the United States targeted civilian cities, Hiroshima and Nagasaki, these cities were chosen because they centered around military production (â€Å"Hiroshima and Nagasaki Death Toll†). And though the Geneva Protocol banned chemical weapons use during war, the atomic bomb is not categorized under chemical weapons but rather as a nuclear weapon. However, in spite of not breaching the Geneva Protocol, the U.S. set the precedence for future countries to use nuclear weapons in future wars. It was also argued that the usage of the atomic bomb was not the reason for Japan’s surrender in its place it was the entry of the USSR into WWII. Japanese military officials used the USSR as a means of stalling Japan from agreeing to the terms of surrender, but when the USSR declared war against Japan, rather than concede and surrender, they came up with a different reason to avoid surrendering. Instead of teaming with the USSR to discuss better terms of surrender, Japanese militant officials argued that the U.S. did not have another atomic bomb and that even if she did she would be under public pressure to not use it. No matter what deleterious situation Japan came under, her military officials refused to surrender, whether it be the entry of the USSR or the dropping of the atomic bombs. However, the catastrophe from the atomic bombs was able to move the Emperor from his onlooker position into actively striving for Japan’s surrender. In addition to this proponents against the usage of the atomic bomb also reasoned that had the U.S. invited the USSR to sign the Potsdam Declaration then Japan military officers could not have tried to incite help from the USSR. However, the relationship of the U.S. and the USSR were already on shaky grounds and President Truman did not want to invite the USSR into the war as her objectives for involvement were unknown. And if the U.S. did add the USSR to the Potsdam Declaration then following Japan’s surrender, the USSR would be allowed to occupy a portion of Japan’s land (Heads of Governments). Robert Frank estimated that roughly 300,000 to 500,000 Japanese people, mostly civilians, would have died or vanished in Soviet captivity. Historians have debated over whether the United States was justified in using the atomic bomb against Japan in World War II. Proponents argue that the ingrained bushido in Japanese citizens led to the risk of substantial civilian casualties as well as the necessity to use catastrophic means to shake their conviction to not capitulate. Opponents assert that the U.S. broke principles of war and allowed a precedence to use nuclear weapons in war. As well as arguing that the atomic bomb was not the reason that WWII ended sooner and thus led to lives being saved, instead it was the entrance of the USSR that forced the Japanese to surrender. After evaluation of both sides of the discussion, the strongest argument for the usage of the atomic bomb is that the bushido in Japanese culture startled the U.S. and led her to believe that extreme measures would be necessary to put an end to the war. While the strongest contention against the usage of the atomic bomb is that it legitimized the usage of nuclear weapons in war. Subsequently, though the United States ethically should not have used the atomic bomb since it established the allowance of nuclear weapons in war, given the situation the U.S. was in it is justifiable that the atomic bomb was implemented. Opponents that argue against the U.S. deploying the atomic bomb are not realizing that hindsight is 20/20. After six years of long, gruesome battle the U.S. would want to put an end to the war as quickly and effectively as possible and it would be unlikely that they would carefully consider what the usage of the atomic bomb would entail in future war policies. The options from those who dissented the usage of the bomb are impractical and unrealistic. Perhaps invitation of the Soviet Union onto the Potsdam Declaration would have led to Japan’s surrender, but without knowing whether the USSR would hold up their promise it would be a risky compromise. And the U.S. was right to think that it would take a significant force to make Japan surrender as the corruption from the military officials would continue to thwart any notions of surrendering. The dropping of the atomic bombs was a necessity to influence the Emperor to take control and finally end WWII.

Friday, September 27, 2019

Crash Essay Example | Topics and Well Written Essays - 500 words - 3

Crash - Essay Example To start with, Jean Cabot is racist and prejudiced against African Americans and Latinos alike: seeing two African-Americans she becomes worried while Latino locksmith is perceived by her as a criminal. Officer Ryan expresses hatred and disdain for African-Americans, such as when he tells Shaniqua that she took a place that could belong to more competent and smart while people. Owner of a gun store throws ethnic unfair accusations at Farhad. In addition, a young African American man Anthony is prejudiced against white people and beliefs that the society is unfavorable for people like he is. Subsequently, one can see that racism is present in diverse people: those who are well off, immigrants, politicians, law-enforcement, and other. Although being conscious and angry about stereotypes that white people may have about them, Anthony and Peter confirm them and deliberately behave as stereotypes. They are furious realizing that Jean treats them like potential criminals, but steal her car . Similarly, Anthony is angry with a waitress who did not offer them a cup of coffee assuming that they would not pay her, thereof, they confirm the stereotype and leave her no money. Among protagonists should be mentioned officer Ryan. He is prejudiced against African Americans, believing that most of them are criminals and considers Caucasians more intelligent. He explains that his father lost a job because of a preference being given to an African American manager. At the same time, Ryan is caring and attentive son and shows bravery saving Christine after the car accident. Also, throughout the film Jean’s attitude is highly prejudiced: she hires minorities, but neither trusts them nor respects. She expresses her white privilege and behaves like a stereotypical well-off woman who does not work. An interesting case makes Anthony since he is an example of reversed racism – a prejudiced belief that all white people are racists. In contrast to

Thursday, September 26, 2019

Revolution in Egypt Essay Example | Topics and Well Written Essays - 1250 words

Revolution in Egypt - Essay Example Currently, similar protests are ongoing in Libya and Yemen, creating lot of political and economic uncertainty in the Arabic world. This paper expounds on the causes and the effects of Egyptian revolution in the country and in the world. Causes and effects of Egyptian revolution In the streets of Sidi Bouzid city in Tunisia, a twenty six year old university graduate, Mohamed Bouazizi set himself ablaze in late December 2010, allegedly for lack of job and harassment by the government officials for hawking groceries in the streets. This incident sparked the now popular revolution in the Arabic countries that have for so long resisted the political changes occurring around the globe. In highly globalized world, the actions of Bouazizi elicited anger and desire for political and economic change especially among the youths across these countries, through social networking sites. Within a brief period, the Tunisian president resigned, and simultaneous protests broke out in Algeria, Albania , Libya, Mauritania and Oman. Other countries where similar protests have since spread include Yemen, Jordan, Syria, Lebanon, Saudi Arabia and Morocco (Blue, 2011). These protests have ultimately changed the political environment in Arabic world, resulting to resignation of presidents and implementation of economic reforms. For about three decades, Egypt demonstrated a sense of stability in the extremely politically volatile Middle East region. Since President Hosni Mubarak succeeded Anwar Sadat in 1981, the country has enjoyed cordial relations with the United States, mainly because of the critical role that Egypt plays in maintaining peace between Israel and other Arabic countries in the Middle East (ECFA, 2000). For a president who had served for such a long period, winning with landslide victories in a series of presidential elections that had been conducted in the country since 1981, his ouster was a surprise to many political observers in the world. There are several causes of the revolution in Egypt and in other Arabic countries in general. For long periods, autocratic leadership that undermines basic human rights and liberties enjoyed in the free world characterizes political governance in most Arabic countries (Bruce, 2008, p63) Egypt is not an exception. Historically, major revolutions across the world originate from a variety of reasons, but the main underlying factor is the gross abuse of human rights. The main causes of revolts include gross abuse of state power, whereby the state uses violence, threats and intimidation to suppress dissent, freedom of expression, association and other forms of public expressions. In most cases, the suppressed populations are at economic disadvantage, experiencing high levels of poverty and discrimination in accessing employment opportunities in the government or public service (Mythen, 2008, p19). The causes of Egyptian revolution in 2011 originated from autocratic governance, economic problems, corruption, and re volutionary movement that had just happened in Tunisia accelerated Egyptian movement (Blue, 2011). The major concerns for the youth who played a crucial role in the revolution included lack of employment opportunities, abuse of basic human rights, including freedom of expression (Blue, 2011). According to ECFA (2000), the Egyptian government has invested in education of the youth and the country has one of the highest populations of university graduates in the

Social Problems Essay Example | Topics and Well Written Essays - 1000 words

Social Problems - Essay Example In this way, the competing views of societal understanding as compared to medical science can be understood as a function of how they share vastly different views on the same topic. Of course, prior to beginning an analysis of how the medical community, evidenced by this particular article, views drug addiction, it is necessary to point out that neither science nor society behave as a singular entity. What is meant by this is that although prevailing views exist within each group, neither one can be categorically defined as all believing a certain way with reference to a certain issue. In this way, the views and opinions that will be discussed within this brief analysis will be from the point of view that the author has interpreted the majority of society and the medical/scientific community to espouse these views. Obviously, this means that there are elements of both groups that do not subscribe to these prevailing theories or their derivatives. Firstly, it should be understood that the prevailing view in society is that drug use and abuse is something that afflicts â€Å"weak† individuals; or those that simply cannot â€Å"say no to drugs†. In this way, a theory develops in which society views the entire drug use/abuse dynamic in a way that simply dismisses the issue as something that can be defined by an overall lack of willpower. This lack of willpower is further illustrated, so they believe, by the fact that not only could the drug user have the moral fiber to resist the drug in the first place, they additionally cannot find within themselves the courage and perseverance to put the drug away once they are hooked on it. This failure to understand the chemical dependencies that help to define drug abuse for the tens of thousands of individuals who suffer from this on a daily basis is quite an oversight. Although

Wednesday, September 25, 2019

Poverty Assignment Example | Topics and Well Written Essays - 500 words - 1

Poverty - Assignment Example The outcome will be the increase in the per capita income and improving the living standards of the people. This is also attributed to the fact that people will take resources and rearrange them in a manner that is more valuable to them. When a country invests in the new technology, the potential output of the services and goods will increase. This is because the technology will make the production process to be more efficient. For instance, the widespread mechanization that happened in 18th and in 19th century enabled the United Kingdom to produce more output from very few resources. This enabled them to become one of the fully industrialized economies. Recently, the Chinese government experienced a rapid rate of growth due to application of the new technology in their process of manufacturing (Romer, 5). Therefore, an economy can never grow if few resources are allocated to the capital good. Some of the causes of poverty in third world countries include the third world debt, lower exportation race, poor agricultural practices, lack of food, lack of technology, overpopulation and some of the individual behaviors are some of the causes of poverty. The causes of poverty has becomes complex in the global economy. Additionally, the increase in income inequality leads to poverty, this is because the inequality lowers the living standards of people due to income differences (Romer, 6). For instance, the income gap has been on the rising trends in the US since 1970s, the income gap reflects the changes in the international trade, technological change, and a reduction in the unionization of all reason within the rising income gap. I do agree with Christine Svellinger, because it is true that the poverty issue has grown to be a pervasive and massive issue. Countries have tried developing the economies with technology and industry with varying success level. Most of the third world countries lack the necessary raw materials and skills from the

Tuesday, September 24, 2019

Social environmental accounting Essay Example | Topics and Well Written Essays - 2000 words

Social environmental accounting - Essay Example The company has employed various internal management accounting systems and techniques in relation to the social and environmental issues facing it (Marinova, Annandale, & Phillimore 2010). One of such system includes acting responsibly. This involves Aviva insurance using scientific research on the social and environmental impacts responsibly and engaging in good governance and management of the organization (Dalal-Clayton & Sadler 2014). It is important for organizations to balance possible environmental, social and economic impacts, risks and opportunities across the economic, social and economic spheres. This is a highly complex task to Aviva, its managers and the society at large. The complexity that is brought about by this is made more difficult through the requirement to identify the significance of various types and even time horizons of the outcomes. There may be instances where there is a positive overall societal, environmental and economic outcome while other activities leads to a positive outcome on one side and negative outcome on the other. Organizations, therefore, face difficulties in coming up with strategy and actions to balance the environmental, s ocial and also their economic sustainability. Managers in Aviva recognize this and ensure that it is highly incorporated in the decision-making processed  making it to be within the organizations acceptable  behavior and impacts of a society (Burritt 2011). The second internal management accounting system is saving for various environmental projects. The organization through its management overseas the Aviva community funds to sustain the economic, societal and environmental aspects of the society (Docherty, Kira, & Shani 2008). The organization is also involved in the management of its environmental costs. The organization is increasingly becoming aware of their environmental sustainability responsibility in the society. This is considering that

Monday, September 23, 2019

Lee Miller Essay Example | Topics and Well Written Essays - 3250 words

Lee Miller - Essay Example Though it started and ended in tragedy, it was filled with excitement and several trail-blazing firsts. "Lee Miller - The Movie" would star: Miller's interesting supportive parents, two husbands, famous WWII figures, her son who was disappointed by his alcoholic mother, celebrities, and famous artists (including Picasso) and photographers. Major scenes would include the tragic childhood sexual abuse that left her with gonorrhea, the fairytale discovery of her by photographer Conde Nast, her New York modeling career, her two marriages, her experiences photographing World War II, and the disastrous effects the war had on her that ultimately lead to her own tragic demise. The final scenes would chronicle the world's amazing "rediscovery" of Miller through her son's book and her daughter-in-law's rummaging in Miller's attic, after Miller's death in the 1970s. Lee Miller was born "Elizabeth Lee Miller" in Ploughkeepsie, New York on the 23rd of April 1907 to parents Theodor and Florence Miller. She was the middle child, with an older brother John and a younger brother Erik. Theodore Miller, her Father was an engineer and a businessman. Like many of his time Theodor was a strong believer in science and technology - going as far as to run his household scientifically.2 He had several affairs and not much is known of his relationship with his wife Florence.3 On a visit to family friends at the ages of seven Florence left Elizabeth in the care of "Uncle Bob". This short visit changed her life as, though the exact details are unclear, "Uncle Bob" raped her.4 She was rushed home, and shortly after to a doctors when it became apparent that she had contracted gonorrhea from "Uncle Bob".5 The available treatments for the disease at the time - before the discovery of antibiotics - were painful, frequent, and took many weeks.6 Elizabeth was traumatized by the rape and the subsequent treatments. To help her emotional recovery, her parents took her to a psychiatrist. This doctor taught Elizabeth that love and sex were separate things - a fact that probably contributed to her many amorous liaisons later in life.7 Theodore, an amateur photographer, quite likely thinking that he was following the doctor's directions in helping his daughter separate her physical being from her emotional one began taking nude photographs of his daughter on her eighth birthday. She soon became proud of her appearance and was a good model. The photography sessions continued until she was twenty. The family was accepting of Theodore's new hobby, treating it as art.8 The camera loved Lee Miller and so did a lot of men. She was a beautiful woman and the true definition of American beauty with her golden locks and blue eyes. She was an independent woman; a true feminist who would break all rules if they were not to her liking.9 Though outwardly she led an independent life, there was a dark side to her that she hid from the world.10 She was undoubtedly one of the most intriguing and mercurial women of the twentieth century. Beauty is central to her story: it was her passport to the glamorous and artistic worlds she plunged into between the world wars. New York Modeling Career While in Manhattan, when she was 19, her life was saved by a magazine publisher, Conde Nast, who was so impressed by her beauty that he helped launch her modeling career. She thus became

Saturday, September 21, 2019

United States Dominance After Civil War Essay Example for Free

United States Dominance After Civil War Essay The American Civil War, also known as the â€Å"War Between the States† was a war between the Confederate States and the Union. The Confederacy was composed of eleven states which supported slavery, while the Union was comprised of all free American states and five states bordering the slave states. The American Civil War became one of the most important events that led into the emergence of the United States into world dominance. The development of the American nation as a world leader came after a series of events and wars being won. The Civil War all throughout was highlighted by the intense social, political and economic conflicts and differences between Northern and Southern States. The war commenced in about 10,000 states and more than 3 million American people have been involved in it. The years between 1861 to 1865, the war has escalated between American states and resulted to the destruction of peace and unity among fellow Americans. The war made the American nation ironically more oblivious to the concept of freedom and individual rights, given that the civil war was fought on the basis state rights and freedom in America. However, by the end of the Civil War, the American nation took the whole experience as a â€Å"new birth of freedom† for the people and the government. And as such, the years following the end of the Civil War marked the start of the American dominance in the international community. America After the Civil War: Unification, Expansion and Industrialization Despite the destruction, the death toll, and the chaos that the Civil War has drawn upon the American society, nonetheless, it has become as one of the focal points for world domination for the United States. The separate states which used to be hostile to one another due to their differences, became a single united and strong nation The end of the war marked the new era of expansionism for the United States of America. Indeed, the start of the 19th century was highlighted by the intensifying of the American expansion. Alongside America’s move to industrialize and urbanize its territory, the American exploration pushed further to the west. In 1803, Louisiana was obtained from the French government; and during the period between 1816 to 1821, a total of six states were added to the American territory. Aside from the westward expansion, in 1865 the American government also took control of eastern states. This westward and eastward expansion of the United States territory became strategically beneficial to the industrialization in the United States. And as such, the strength of the United States industrialization became one of the strongest points of the United States emergence as a world superpower. Although the industrialization in the United States before the Civil War was largely preempted and minimal due to the political and social conflicts of the time, the end of the war and the emergence of the new American society greatly hastened the industrial development in the United States. And despite the fact that industrialization has been an old trend in other advanced countries such as England, Belgium, France, Germany and Japan, the United States transformation was more profound, developed and powerful. In addition to United States’ more sophisticated and impressive industrialization, the American government was able to carefully and strategically utilize its unique advantage over its colonies and among those less developed and powerful countries. The American government used its sphere of influence in order to drive economic advantages and power towards them. Moreover, the United States territory, given the vastness of its newly acquired areas and colonies were greatly endowed with raw natural resources that once tapped, can be used to generate a large amount of benefits and profits. The states acquired by the United States became its focal points of industrialization, modernization and development. Some of these states served as main centers for finance, manufacturing and commerce. Other states were also suitable for agricultural growth and revolution in the transportation sector. In addition to these developments, the wave of immigrants between 1840 to 1860 also strengthened manpower stability in the country. As such, by the end of this period of expansionism and industrialization, the United States emerged as one of the most successful countries in the world. The American government grew extremely confident of the stability of their economic, political and military strength. In addition, the wide sphere of influence that it was able to establish became one of the assets that qualified United States as one of the strongest country in the world. Threats to American Power and Leadership A series of American war involvement has been etched in the world’s history. And as such, each war wherein the American nation has took part in signified a threat against the United States’ dominance. The First and Second World War, though commenced between a large gap that went for years were fought on almost same reasons. Economic imperialism, military conflicts, trade barriers, proliferation of weapons, political rivalries and balance of power were among the main cause of the first and second world wars. During these wars, the world was divided into two spheres. And of which, both wars were won distinctively by the side that the United States has taken. The victorious emergence of the United States and its allies in these wars has further established its government as one of the strongest leaders in the world. During the Second World War in particular, the victory of the United States, the Soviet Union and their allies became the closest call to the American dominance. At the end of the Second World War, the United States and the Soviet Union emerged as two world leaders, and as such, became the pillars for balance of power. The end of the Second World War and the emergence of two dominant states resulted to another series of conflicts and hostility. After the Second World War, the Cold War commenced and a series of indirect confrontations took place between the United States and the Soviet bloc. The Cold War served as a proxy war between the two states wherein instead of a direct confrontation, their allies became more involved in the war. The Cold War became the measure of stability, leadership and influence of the two world superpowers. Political ideology became the main focus of the rivalry between the United States and the Soviet bloc. During this period, the American government was largely threatened by the spread of communist ideology within the European states. As such, the antagonism between capitalism and communism became the root of the conflict between the two states. In addition to this antagonism, nuclear arms race, espionage, economic rivalry and the Cuban missile crisis were among the issues that further intensified the conflict. Despite the absence of direct confrontation between the Americans and the Soviet bloc, the outcome of the Cold War still became one of the most important factor in the emergence of a lone world superpower. As such, by the end of the Cold War, the Soviet bloc disintegrated and the communist ideology became less influential. Although the American government and its allies were not successful in fully containing the communist ideology, the Soviet disintegration became a step to weaken communist states. In addition, the disintegration of the Soviet bloc marked the end of the Cold War. And the triumphant emergence of the United States in the Cold War automatically rendered the United States as the lone world superpower. United States in the Present Era Following the end of the Cold War and the demise of the biggest threat to United States leadership, the American government is now considered as the lone hegemonic power in the world. The establishment of international organizations such as the United Nations, World Bank, International Monetary Fund and the World Trade Center to name a few, strengthened the American hold on world dominance and leadership. In the present generation, the most probable threat against the American government is the current proliferation of terrorist organizations posting terrorist activities that might induce chaos and fear amongst the citizens. However, despite these threats and current economic and political dilemma experienced by the American nation, United States still stands as one of the strongest, influential and stable countries in the international community. Bibliography AE Television Networks. â€Å"The American Civil War.† History.com. (2008). Database on-line. Available from http://www.history.com/minisites/civilwar/ (accessed October 10, 2008). American Information Resource Center. â€Å"History of the United States.† The United States Diplomatic Mission to Poland. (n.d). Database on-line. Available from http://www.usinfo.pl/aboutusa/history/slavery.htm (accessed October 10, 2008). Burns, Ken. â€Å"The Crossroads of Our Being.† The Civil War. (2002). Database on-line. Available from http://www.pbs.org/civilwar/war/ (accessed October 10, 2008). Mabry, Donald J. â€Å"Triumph of Industry in the United States.† Historical Text Archive. (2008). Database on-line. Available from http://historicaltextarchive.com/sections.php?op=viewarticleartid=597 (accessed October 10, 2008). Nosotro, Rit. â€Å"The Cold War.† HyperHistory. (n.d). Database on-line. Available from http://www.hyperhistory.net/apwh/essays/big/w30coldwar.htm (accessed October 10, 2008).